At the beginning of the current season, the ledger of Star-Struck Tennis Shop trial balance and partial showed Cash $2,500; Merchandise Inventory $1,700; and Common Stock $4,200. The folincome statement. lowing transactions were completed during April:

(SO 2, 3, 4)

or Apr. 4 Purchased racquets and balls from Robert Co. $840, terms 3/10, n/30.

a 6 Paid freight on Robert Co. purchase $40.

8 Sold merchandise to members $900, terms 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 $500, terms 2/10, 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 $900, 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.

Instructions

(a) Journalize the April transactions.

(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, 2001.

(d) Prepare an income statement through gross profit.