J. Zheng, a former professional tennis star, operates Zheng's Tennis Shop, Ltd. at the Yalong River Resort. At the beginning of the current season, the ledger of Zheng's Tennis Shop showed Cash ¥2,200, Inventory ¥1,800, and Share Capital-Ordinary ¥4,000. The following transactions were completed during April.
Apr. 4 Purchased racquets and balls from Jay-Mac Co. ¥760, FOB shipping point, terms 2/10, n/30.
6 Paid freight on purchase from Jay-Mac Co. ¥40.
8 Sold merchandise to members ¥1,150, terms n/30. The merchandise sold had a cost of ¥790.
10 Received credit of ¥60 from Jay-Mac Co. for a racquet that was returned.
11 Purchased tennis shoes from Li Sports for cash, ¥420.
13 Paid Jay-Mac Co. in full.
14 Purchased tennis shirts and shorts from Everett Sportswear ¥800, FOB shipping point, terms 3/10, n/60.
15 Received cash refund of ¥50 from Li Sports for damaged merchandise that was returned.
17 Paid freight on Everett Sportswear purchase ¥30.
18 Sold merchandise to members ¥980, terms n/30. The cost of the merchandise sold was ¥520.
20 Received ¥600 in cash from members in settlement of their accounts.
Apr. 21 Paid Everett Sportswear in full.
27 Granted an allowance of ¥40 to members for tennis clothing that did not fit properly.
30 Received cash payments on account from members, ¥820.
The chart of accounts for the tennis shop includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 311 Share Capital-Ordinary, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, and No. 505 Cost of Goods Sold.
Instructions
(a) Journalize the April transactions using a perpetual inventory system.
(b) Enter the beginning balances in the ledger accounts and post the April transactions. (Use J1 for the journal reference.)
(c) Prepare a trial balance on April 30, 2017.