Problem 5-2A (Part Level Submission) Renner Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Renner showed Cash of $5,120 and Owners Capital of $5,120. May 1 Purchased merchandise on account from Braun's Wholesale Supply $4,100, terms 1/10, n/30. 2 Sold merchandise on account $2,500, terms 2/10, n/30. The cost of the merchandise sold was $1,440. 5 Received credit from Braun's Wholesale Supply for merchandise returned $200. 9 Received collections in full, less discounts, from customers billed on sales of $2,500 on May 2. 10 Paid Braun's Wholesale Supply in full, less discount. 11 Purchased supplies for cash $330. 12 Purchased merchandise for cash $1,200. 15 Received refund for poor quality merchandise from supplier on cash purchase $160. 17 Purchased merchandise from Valley Distributors $1,100, FOB shipping point, terms 2/10, n/30. 19 Paid freight on May 17 purchase $160. 24 Sold merchandise for cash $3,350. The merchandise sold had a cost of $2,030. 25 Purchased merchandise from Lumley, Inc. $700, FOB destination, terms 2/10, n/30. 27 Paid Valley Distributors in full, less discount. 29 Made refunds to cash customers for defective merchandise $60. The returned merchandise had a fair value of $40. 31 Sold merchandise on account $1,010, terms n/30. The cost of the merchandise sold was $590.

Renner Hardwares chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, No. 301 Owners Capital, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold.

Enter the beginning cash and capital balances and post the transactions. (Post entries in the order of journal entries presented in the previous question.)

Cash No. 101 Date Explanation Ref. Debit Credit Balance Balance J1 J1 J1 J1 J1 J1 J1 J1 J1 Accounts Receivable No. 112 Date Explanation Ref. Debit Credit Balance J1 J1 J1 Inventory No. 120 Date Explanation Ref. Debit Credit Balance J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 J1 Supplies No. 126 Date Explanation Ref. Debit Credit Balance J1 Accounts Payable No. 201 Date Explanation Ref. Debit Credit Balance J1 J1 J1 J1 J1 J1 Owners Capital No. 301 Date Explanation Ref. Debit Credit Balance Balance Sales Revenue No. 401 Date Explanation Ref. Debit Credit Balance J1 J1 J1 Sales Returns and Allowances No. 412 Date Explanation Ref. Debit Credit Balance J1 Sales Discounts No. 414 Date Explanation Ref. Debit Credit Balance J1 Cost of Goods Sold No. 505 Date Explanation Ref. Debit Credit Balance J1 J1 J1 J1