Date cash 51 balance 8000 510 511 900 515 230 512

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Date Cash 5/1 Balance $8,000 5/10 $7,720 5/9 4,312 5/11 900 5/15 230 5/12 3,100 5/24 5,500 5/19 250 5/27 2,450 5/29 124 Total Dr Balance $3,498 Date Sales 5/2 $4,400 5/24 5,500 5/31 1,280 Total Cr Balance $11,180 Sales Returns and Allowances 5/29 $124 Total Dr Balance $124 Sales Discounts 5/9 $88 Total Dr Balance $88 Date Cost of Goods Sold 5/2 $3,300 5/29 $90 5/24 4,100 5/31 830 Total Dr Balance $8,140 Date Common Stock 5/1 Balance $8,000 Total Dr Balance $8,000 Date Accounts Receivable
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5/2 $4,400 5/31 1,280 Total Dr Balance $5,680 Date Merchandise Inventory 5/1 $8,000 5/5 $200 5/2 3,300 5/10 80 5/12 3100 5/15 230 5/17 2,500 5/24 4,100 5/19 250 5/27 50 5/25 800 5/31 830 5/29 90 Total Dr. Balance $12,550 Date Supplies 5/11 $900 Total Dr Balance $900 Date Accounts Payable 5/5 $200 5/1 $8,000 5/10 7,800 5/27 2,500 Total Dr Balance $2,500 c) Prepare an income statement through gross profit for the month of May 2017
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WINTERS HARDWARE STORE INC. Income Statement For the Month Ended May 31, 2017 Sales Revenues Sales $11,180 Less: Sales Returns and Allowances $124 Sales Discounts 88 212 Net Sales $10,968 Cost of Goods Sold $8,140 Gross Profit $2,828 d) Calculate the profit margin and the gross profit rate. (Assume operating expenses were $1,400.) Profit margin ratio = (2,828 - 1,400) / 10,968 = 0.13 Net income/net sales Gross profit rates = $2,828 / 10,968 = 0.258 Gross profit/net sales
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