In 2017, the Following Transactions Occurred for Marjorie's Jewelry Store

question 33

Essay

In 2017, the following transactions occurred for Marjorie's Jewelry Store:
A. On May 1, the business purchased 10 rings on account at $6,000 each. Credit terms were 2/10, net/30.
B. On May 2, the business returned one ring because of a defect.
C. On May 3, three of the rings were sold on account at $8,000 each, to one customer. Credit terms were n/30. No sales returns were expected.
D. On May 9, the accounts payable was paid in full.
E. On May 10, the customer paid for one ring sold on May 3.
F. On May 31, the business paid rent of $4,000 for the month of May and wages of $5,000.
Required:
1. Journalize the above transactions for Marjorie's Jewelry Store. The store uses the perpetual inventory system. Explanations are not required.
2. Prepare the income statement for the month ending May 31, 2017. Use the multistep format and ignore taxes.

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Definitions:

Category

A class or division of people or things regarded as having particular shared characteristics.

Mental Grouping

The cognitive process of categorizing objects or information based on shared attributes or relations, aiding in understanding and memory.

Prototype

An original model or first form from which other forms are copied or developed.

Category

A class or division within a system of classification in which members share certain characteristics or attributes.