At the beginning of the current season, the ledger of Love All Tennis Shop showed trial balance and partial Cash $2,500; Merchandise Inventory $1,700; and Common Stock $4,200. The following aiicO pee StaecIn en: transactions were completed during April.

orednGacs Apr. 4 Purchased racquets and balls from Connors Co. $880, terms 2/10, n/30.

[GL] 6 Paid freight on Connors Co. purchase $60.

8 Sold merchandise to members $900, terms n/30. The merchandise sold cost $600.

10 Received credit of $130 from Connors Co. for damaged racquets that were returned. 11. Purchased tennis shoes from No Fault for cash $300. 13. Paid Connors Co. in full.

14 Purchased tennis shirts and shorts from Serena Sportswear $700, terms 3/10, n/60.

15 Received cash refund of $50 from No Fault for damaged merchandise that was returned.

17 Paid freight on Serena Sportswear purchase $30.

18 Sold merchandise to members $860, terms n/30. The cost of the merchandise sold was $440.

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

21 Paid Serena 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 $350.

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

(c) Tot. trial April transactions.

balance $5,960

(c) Prepare a trial balance on April 30, 2007.

(d) Gross profit $ 690

(d) Prepare an income statement through gross profit.

Prepare financial statements |