Instructions

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

$($b$)$ Enter the beginning cash and share capital$-$ordinary balances and post the transactions.

$($Use J$1$ for the journal reference.$)$

$($c$)$ Prepare an income statement through gross profit for the month of May $2017.$

P$6-8$A Tempo Ltd$.$ is a retailer operating in Dartmouth, Nova Scotia. Tempo uses the perpetual inventory method. All sales returns from customers result in the goods being returned to inventory; the inventory is not damaged. Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Tempo Ltd$.$ for the month of January $2017.$

$\backslash$table$[[$Date$,$Description,Quantity,$\backslash$table$[[$Unit Cost or$],[$Selling Price$]]],[$December $31,$Ending inventory,$150,19$