At the beginning of the current season on April 1, the ledger of Thousand Oaks Pro Shop showed Cash $2,500; Inventory $3,500; and Common Stock $6,000. These transactions occurred during April 2012.
Apr. 5 Purchased golf bags, clubs, and balls on account from Ryder Co. $1,500, terms 3/10, n/60.
7 Paid freight on Ryder Co. purchases $80.
9 Received credit from Ryder Co. for merchandise returned $200.
10 Sold merchandise on account to members $1,340, terms n/30.
12 Purchased golf shoes, sweaters, and other accessories on account from Birdie Sportswear $830, terms 1/10, n/30.
14 Paid Ryder Co. in full.
17 Received credit from Birdie Sportswear for merchandise returned $30.
20 Made sales on account to members $810, terms n/30.
21 Paid Birdie Sportswear in full.
27 Granted credit to members for clothing that did not fit properly $80.
30 Received payments on account from members $1,220.
The chart of accounts for the pro shop includes Cash, Accounts Receivable, Inventory, Accounts Payable, Common Stock, Sales Revenue, Sales Returns and Allowances, Purchases, Purchase Returns and Allowances, Purchase Discounts, and Freight-in.
Instructions
(a) Journalize the April transactions using a periodic inventory system.
(b) Using T accounts, enter the beginning balances in the ledger accounts and post the April transactions.
(c) Prepare a trial balance on April 30, 2012.
(d) Prepare an income statement through gross profit, assuming merchandise inventory on hand at April 30 is $4,263.