The Following Transactions Occurred for Marjorie's Jewelry Store During the Month

question 140

Essay

The following transactions occurred for Marjorie's Jewelry Store during the month:
a.On May 1,the owner,Marjorie,purchased 10 rings on account at $6,000 each.Credit terms were 2/10,net 30.
b.On May 2,Marjorie returned one ring due to a defect in cut.
c.On May 3,Marjorie's Jewelry Store sold three of the rings on account at $8,000 each to one customer.The credit terms were 2/10,net 30.
d.On May 9,Marjorie paid off the accounts payable.
e.On May 10,the customer paid for one ring sold on May 3.
f.On May 31,Marjorie 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 31,2014.Use the multiple-step format and ignore taxes.

---

Definitions:

Evolutionary

Pertaining to evolution, the process through which species undergo changes over time due to genetic variations and natural selection.

Primate

A member of the mammalian order including humans, apes, monkeys, and relatives, generally characterized by large brains, forward-facing eyes, and complex social behaviors.

Environmental Threats

Dangers originating from the surrounding environment that can potentially cause harm to living organisms or ecological systems.

Introspection

Inspecting or watching one's personal thought and emotional patterns.