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Mead Company uses a perpetual inventory system and engaged in the following transactions during the month of May:
| Date | Transaction |
|---|---|
| May 1 | Made cash sales of $6,300; the cost of the inventory was $3,700. |
| 5 | Purchased $2,000 of inventory on credit. |
| 9 | Made credit sales of $3,300; the cost of the inventory sold was $1,900. |
| 13 | Paid sales salaries of $900 and office salaries of $600. |
| 14 | Paid for the May 5 purchases. |
| 18 | Purchased sales equipment costing $8,000; made a down payment of $2,000 and agreed to pay the balance in 60 days. |
| 21 | Purchased $600 of inventory for cash. |
| 27 | Sold land that had originally cost $1,900 for $2,600. |
Required:
| Record the preceding transactions in a general journal. |
Expert Answer
May 1 Cash sales
Cash $6300
Sales $6300
Cost of goods sold $3700
Merchandise inventory $3700
May 5:
Merchandise inventory $2000
Accounts payable $2000
May 9:
Accounts receivable $3300
Sales $3300
Cost of goods sold $1900
Merchandise inventory $1900
May 13:
Sales Salaries $900
Office salaries $600
Cash $1500
May 14:
Accounts payable $2000
Cash $2000
May 18:
Sales Equipment $8000
Cash $2000
Accounts payable $6000
May 21:
Merchandise inventory $600
Cash $600
May 27:
Cash $2600
Land $1900
Profit on sale $700
