E3-1        Financial Statement Interrelationship Draw a diagram that shows the interrelationship between the beginning bal- ance sheet, income statement, retained earnings statement, and ending balance   sheet.

E3-2        Journal Entries  The 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 $6,300; the cost of the inventory was $3,700.

5        Purchased $2,000 of inventory on  credit.

9        Made credit sales of $3,300; the cost of the inventory sold was $1,900.

13             Paid sales salaries of $900 and office salaries of $600.

14             Paid for the May 5 purchases.

18        Purchased sales equipment costing $8,000; made a down payment of $2,000 and agreed to pay the balance in 60 days.

21             Purchased $600 of inventory for cash.

27        Sold land that had originally cost $1,900 for $2,600.

 

Required

Record the preceding transactions in a general journal.