Billy Jean Evert, a former professional tennis star, operates B.J.'s Tennis Shop at Jackson Lake Resort. At the beginning of the current season, the ledger of B.J.'s Tennis Shop showed Cash \(\$ 2,500\); Merchandise Inventory \(\$ 1,700\); and Common Stock \(\$ 4,200\). The following transactions were completed during April:

Journalize, post, and prepare trial balance and partial income statement.

(SO 2, 3, 4)

Apr. 4 Purchased racquets and balls from Robert Co. \(\$ 640\), terms 3/10, n/30.

6 Paid freight on Robert Co. purchase \(\$ 40\).

8 Sold merchandise to members \(\$ 900\), terms \(\mathrm{n} / 30\). The merchandise sold cost \(\$ 600\).

10 Received credit of \(\$ 40\) from Robert Co. for a damaged racquet that was returned.

11 Purchased tennis shoes from Niki Sports for cash \(\$ 300\).

13 Paid Robert Co. in full.

14 Purchased tennis shirts and shorts from Martina's Sportswear \(\$ 700\), terms \(2 / 10, \mathrm{n} / 60\).

15 Received cash refund of \(\$ 50\) from Niki Sports for damaged merchandise that was returned.

17 Paid freight on Martina's Sportswear purchase \(\$ 30\).

18 Sold merchandise to members \(\$ 800\), terms \(n / 30\). The cost of the merchandise sold was \(\$ 530\).

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

21 Paid Martina's 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 \(\$ 500\)

The chart of accounts for the tennis shop includes Cash, Accounts Receivable, Merchandise Inventory, Accounts Payable, Common Stock, Sales, Sales Returns and Allowances, and Cost of Goods Sold.
\section*{Instructions}

(a) Journalize the April transactions.

(b) Using \(\mathrm{T}\) accounts, enter the beginning balances in the ledger accounts and post the April transactions.

(c) Prepare a trial balance on April 30, 1998.

(d) Prepare an income statement through gross profit.