At the beginning of the current tennis season, on April 1, 2012, the general ledger of Kicked-Back Tennis Shop showed Cash $4,000; Merchandise Inventory $2,700; Common Shares $3,000; and Retained Earnings $3,700. Kicked-Back Tennis Shop uses a perpetual inventory system.

The following transactions occurred in April:

Apr. 2 Purchased racquets and balls from Roberts Inc. for $2,460, terms 2/10, n/30, FOB shipping point.

3 The appropriate party paid $60 freight on the purchase from Roberts on April 2.

7 Received credit of $55 from Roberts for a damaged racquet that was returned.

11 Paid Roberts in full.

13 Purchased tennis shoes from Niki Sports Ltd. for $460 cash, FOB shipping point.

16 The appropriate party paid $12 freight on the purchase from Niki on April 13.

17 Purchased supplies for $650 cash from Discount Supplies Limited.

18 Received a $55 cash refund from Niki Sports for damaged merchandise that was returned.

20 Sold merchandise to members for $3,400 on account, terms n/30. The cost of the merchandise was $2,040.

21 Some of the merchandise purchased on April 20, with a sales price of $500 and a cost of $300, was returned by members. It was restored to inventory.

23 Sold merchandise to members for $2,800, terms n/30. The cost of the merchandise was $1,680.

25 Received cash payments on account from members, $4,000.

28 Granted a $75 sales allowance on account to a member for slightly torn tennis clothing. No merchandise was returned.

30 Purchased equipment for use in the business from DomCo Ltd. for $1,800, terms n/30.

Instructions

(a) Prepare T accounts and enter the opening balances.

(b) Record and post the April transactions for Kicked-Back Tennis. Round all calculations to the nearest dollar.

(c) Prepare a trial balanceas at April 30, 2012.