Question

Pina Colada Hardware Store Inc. completed the following merchandising transactions in the month of May 2018. At the beginning of May, Pina Colada’s ledger showed Cash of $8,800 and Common Shares of $8,800.

May 1		Purchased merchandise on account from Hilton Wholesale Supply for $8,800, terms 2/10, n/30.
2		Sold merchandise on account for $4,400, terms 3/10, n/30. The cost of the merchandise sold was $3,030.
5		Received credit from Hilton Wholesale Supply for merchandise returned $300.
9		Received collections in full, less discounts, from customers billed on May 2.
10		Paid Hilton Wholesale Supply in full, less discount.
11		Purchased supplies for cash $810.
12		Purchased merchandise for cash $2,430.
15		Received $260 refund for return of poor-quality merchandise from supplier on cash purchase.
17		Purchased merchandise from Northern Distributors for $2,300, terms 2/10, n/30.
19		Paid freight on May 17 purchase $270.
24		Sold merchandise for cash $5,570. The cost of the merchandise sold was $4,260.
25		Purchased merchandise from Toolware Inc. for $780, terms 3/10, n/30.
27		Paid Northern Distributors in full, less discount.
29		Made refunds to cash customers for returned merchandise $140. The returned merchandise was returned to inventory and had cost $90.
31		Sold merchandise on account for $1,390, terms n/30. The cost of the merchandise sold was $920.

Pina Colada Hardware uses a perpetual inventory system.

b) Post the transactions to T accounts. (Post entries in the order of journal entries presented in the question.)

Cash 5/1 Bal. - 8800 8412? 5/9 4312 5/10 5/11 5/11 - 810 5/15 260 5/19 5/27 Accounts Receivable 579 A 5/2 4400 4400 5/24 5,570 5/29 140

Answer 1

Cash
Bal. 5/1	8,800	5/10	8,330
5/9	4,268	5/11	810
5/15	260	5/12	2,430
5/24	5,570	5/19	270
		5/27	2,254
		5/29	140
Bal 5/31	4,664
Accounts Receivable
Bal. 5/1	0	5/9	4,400
5/2	4,400
5/31	1,390
Bal 5/31	1,390
Inventory
Bal 5/1	0	5/2	3,030
5/1	8,800	5/5	300
5/12	2,430	5/10	170
		5/15	260
5/17	2,300	5/24	4,260
5/19	270	5/27	46
5/25	780	5/31	920
5/29	90
Bal 5/31	5,684
Supplies
Bal 5/1	0
5/11	810
Bal 5/31	810
Accounts Payable
5/5	300	Bal 5/1	0
5/10	8,500	5/1	8,800
5/27	2,300	5/17	2,300
		5/25	780
		Bal 5/31	780
Common Stock
		Bal 5/1	8,800
		Bal 5/31	8,800
Sales
		5/2	4,400
		5/24	5,570
		5/31	1,390
		Bal 5/31	11,360
Sales Returns and Allowances
5/29	140
Bal 5/29	140
Sales Discounts
5/9	132
	132
Cost of Goods Sold
5/2	3,030	5/29	90
5/24	4,260
5/31	920
Bal 5/31	8,120