Rose Distributing Company completed the following merchandising transactionsin the month of April

Subject:FinancePrice:5.87 Bought7

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Rose Distributing Company completed the following merchandising transactionsin the month of April. At the beginning of April, the ledger of Rose showed Cash of $9,000and Common Stock of $9,000

Apr. 2 Purchased merchandise on account from Kwon Supply Co. $6,900, terms1/10, n/30.

4 Sold merchandise on account $6,500, FOB destination, terms 1/10, n/30. Thecost of the merchandise sold was $3,900.

5 Paid $240 freight on April 4 sale.

6 Received credit from Kwon Supply Co. for merchandise returned $500.

11 Paid Kwon Supply Co. in full, less discount.

13 Received collections in full, less discounts, from customers billed on April 4.

14 Purchased merchandise for cash $3,800.

16 Received refund from supplier for returned goods on cash purchase of April 14,$500.

18 Purchased merchandise from Davis Distributors $4,500, FOB shipping point,terms 2/10, n/30.

20 Paid freight on April 18 purchase $100.

23 Sold merchandise for cash $7,400. The merchandise sold had a cost of $4,120.

26 Purchased merchandise for cash $2,300.

27 Paid Davis Distributors in full, less discount.

29 Made refunds to cash customers for defective merchandise $90. The returnedmerchandise had a fair value of $30. 30 Sold merchandise on account $3,700, terms n/

30. The cost of the merchandisesold was $2,800

Rose Distributing Company’s chart of accounts includes the following: No. 101 Cash, No.112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 311 CommonStock, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Dis-counts, No. 505 Cost of Goods Sold, and No. 644 Freight-Out.

Instructions

(a) Journalize the preceding transactions using a perpetual inventory system.

(b) Enter the beginning cash and common stock balances, and post the transactions. (UseJ1 for the journal reference.)

(c) Prepare the income statement through gross pro?t for the month of April 2015.