At the beginning of the current season, the ledger of Highland Tennis Shop showed Cash $2,500; Inventory $1,700; and Common Stock $4,200. The following transactions were completed during April.

Apr. 4 Purchased racquets and balls from Harris Co. $980, terms 2/10, n/30.

6 Paid freight on Harris Co. purchase $60.

8 Sold merchandise to members $750, terms n/30.

10 Received credit of $130 from Harris Co. for damaged racquets that were returned.

11 Purchased tennis shoes from Happy Feet for cash $300.

13 Paid Harris Co. in full.

14 Purchased tennis shirts and shorts from Rivera Sportswear $1,300, terms 3/10, n/60.

15 Received cash refund of $50 from Happy Feet for damaged merchandise that was returned.

17 Paid freight on Rivera Sportswear purchase $60.

18 Sold merchandise to members $660, terms n/30.

20 Received $500 in cash from members in settlement of their accounts.

21 Paid Rivera Sportswear in full.

27 Granted an allowance of $30 to members for tennis clothing that did not fit properly.

30 Received cash payments on account from members $550.

The chart of accounts for the tennis 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.


(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 $3,244.