At the beginning of the current season on April 1, the ledger of Flint Hills Pro Shop
Question:
At the beginning of the current season on April 1, the ledger of Flint Hills Pro Shop showed Cash $2,500; Inventory $3,500; and Common Stock $6,000. The following transactions occurred during April 2014.
Apr. 5 Purchased golf bags, clubs, and balls on account from Akers Co. $1,500, terms 3/10, n/60.
7 Paid freight on Akers Co. purchases $80.
9 Received credit from Akers Co. for merchandise returned $200.
10 Sold merchandise on account to members $1,340, terms n/30.
12 Purchased golf shoes, sweaters, and other accessories on account from Palmer Sportswear $830, terms 1/10, n/30.
14 Paid Akers Co. in full.
17 Received credit from Palmer Sportswear for merchandise returned $30.
20 Made sales on account to members $810, terms n/30.
21 Paid Palmer Sportswear in full.
27 Granted credit to members for clothing that did not fit properly $80.
30 Received payments on account from members $1,220.
The chart of accounts for the pro shop includes Cash, Accounts Receivable, Inventory, Accounts Payable, Common Stock, Sales Revenue, Sales Returns and Allowances, Purchases, Purchase Returns and Allowances, Purchase Discounts, and Freight-In.
Instructions
(a) Journalize the April transactions using a periodic inventory system.
(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, 2014.
(d) Prepare an income statement through gross profit, assuming inventory on hand at April 30 is $4,263.
AppendixLO1
Step by Step Answer:
Accounting Tools For Business Decision Making
ISBN: 9781118771112
5th Edition
Authors: Kimmel, Wetlands, Kieso