Problem: Journal Entries
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 $5,240; the cost of the inventory was $3,150.
5 Purchased $2,630 of inventory on credit.
9 Made credit sales of $3,140; the cost of the inventory sold was $2,310.
13 Paid sales salaries of $880 and office salaries of $560.
14 Paid for the May 5 purchases.
18 Purchased sales equipment costing $7,900; made a down payment of $1,975 and agreed to pay the balance in 60 days.
21 Purchased $690 of inventory for cash.
27 Sold land that had originally cost $2,230 for $2,630.
Required:
Record the preceding transactions in a general journal. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".