At the beginning of the current season on 1 October, the ledger of Eagle Ridge Golf Pty Ltd showed Cash $5250; Inventory $7350; and Share Capital $12 600. The following transactions occurred during October 2015. 

The chart of accounts for Eagle Ridge Golf includes Cash, Accounts Receivable, Inventory, Accounts Payable, Share Capital, Sales, Sales Returns and Allowances, Purchases, Purchase Returns and Allowances, Discount Received, and Freight-in. 

Required

(a) Journalise the October transactions using a periodic inventory system.

(b) Using T accounts, enter the beginning balances in the ledger accounts and post the October transactions.

(c) Prepare a trial balance as at 31 October 2015.

(d) Prepare closing entries, assuming inventory on hand at 31 October is $8820.

(e) Prepare a statement of profit or loss up to gross profit. 

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Oct. 5 7 9 10 12 12 17 18 20 27 30 30 Purchased golf bags, clubs and balls on account from Balata Ltd $5460, FOB shipping point, terms 2/7, n/60. Paid freight on Balata Ltd purchases $168. Received credit from Balata Ltd for inventory returned $210. Sold inventory on account $2520, terms n/30. Purchased golf shoes, sweaters and other accessories on account from Arrow Sportswear $1386, terms 1/7, n/30. Paid Balata Ltd the amount owed. Received credit from Arrow Sportswear for inventory returned $126. Paid Arrow Sportswear in full. Made sales on account $1890, terms n/30. Granted credit to customers for clothing that did not fit $63. Made cash sales $1260. Received payments on account from customers $2310.