The N-Mart Department Store is located near the Village Shopping Mall. At the end of the company's fiscal year on December 31, 1998, these accounts appeared in its Prepare a multiple-step adjusted trial balance: income statement.

(SO 2, 4)

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

(SO \(1,2,4\) )

P6-1A Billy Jean Evert, a former professional tennis star, operates B.J.'s Tennis Shop at the 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 \(\$ 4,200\). These transactions were completed during April:
Apr. 4 Purchased racquets and balls from Robert Co. \(\$ 640\), FOB shipping point, terms \(3 / 10, n / 30\).
6 Paid freight on Robert Co. purchase \(\$ 40\).
8 Sold merchandise to members \(\$ 900\), terms \(n / 30\).
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 \(\$ 700\), FOB shipping point, 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 \(\mathrm{n} / 30\).
20 Received \(\$ 500\) in cash from members in settlement of their accounts 21 Paid Martina's Sportswear in full.
27 Granted credit of \(\$ 30\) to members for tennis clothing that did not fit 30 Sold merchandise to members \(\$ 900\), terms \(\mathrm{n} / 30\).
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, Purchases, Purchase Returns and Allowances, Purchase Discounts, and Freight-in.
\section*{Instructions}

(a) Journalize the April transactions using a periodic inventory system.

(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, assuming merchandise inventory on hand at April 30 is \(\$ 1,800\).
P6-2A The N-Mart Department Store is located near the Village Shopping Mall. At the end of the company's fiscal year on December 31, 1998, these accounts appeared in its Prepare a multiple-step adjusted trial balance: income statement.
(SO 2, 4)
Journalize, post, and prepare trial balance and partial income statement.
(SO \(1,2,4\) )

Additional facts:
1. Merchandise inventory on December 31,1998 , is \(\$ 75,000\).
2. Note that N-Mart Department Store uses a periodic system.
\section*{Instructions}
Prepare an income statement for the year ended December 31, 1998.

Transcribed Image Text:

Accounts Payable Accounts Receivable $ 89,300 50,300 Accumulated Accumulated Depreciation-Building Depreciation-Equipment Building Cash 52,500 42,900 190,000 23,000 Depreciation Expense-Building 10,400 Depreciation Expense---Equipment 13,300 Equipment 110,000 Freight-in 3,600 Insurance Expense 7,200 Merchandise Inventory 40,500 Mortgage Payable 80,000 Office Salaries Expense 32,000 Prepaid Insurance 2,400 Property Taxes Payable Purchases 4,800 462,000