At month-end, prepare a Trial Balance of the General Ledger.
Financial Accounting Turck Journalize, post to G/L, prepare Trial Balance and prepare partial Income Statement: The following merchandising transactions were completed by Butchs Paint Ball Distribution, Inc.(BPBD) during April, which is its first month of operations after incorporating and a purchase of some merchandise for resale in late in March. At the beginning of April, the General Ledger of BPBD, Inc. contains an $8,000 debit balance in Cash, a $1,000 debit in Merchandise Inventory, and a $9,000 credit balance in Common Stock. 6 April 2 Purchase merchandise on account from Good-Shot, Inc. $5,900, terms 2/10 n/30. 4 Sold merchandise on account $5,000; FOB destination, terms 2/10, n/30. The cost of the merchandise sold was $4,000. (two entries needed, reserve at least 6 general journal rows) 5 Received invoice and paid Fast-Freight Inc. $200 for delivery charge on April 4 sale. Received credit from Good-Shot, Inc. for merchandise returned $300. 11 Took advantage of cash discount and settled account with Good-Shot, Inc. 13 Received proper payment from customer to clear the outstanding April 4th sales invoice. 14 Purchased merchandise with cash $4,400. 16 Received refund from supplier on cash purchase of April 14, $500. 18 Purchased $4,200 of merchandise from Bobby Duke Sales, Inc., FOB shipping point, terms 2/10, n/30. Freight charges billed separately from 3rd party carrier, see next transaction. 20 Received invoice and paid Fast Freight Inc. related to April 18 purchase, $100. 23 Sold merchandise for cash $6,400. The merchandise sold had a cost of $5,120. 26 Purchased merchandise for cash $2,300. 27 Took advantage of cash discount and settled account with Bobby Duke Sales, Inc. 29 Made cash refund of $90 to customer for returned merchandise related to Apr. 23 transaction. The returned merchandise is deemed worthless and disposed of into the trash. These goods had an original cost to BPBD of $70. 30 Sold merchandise on account $3,700, terms n/30. The cost of the merchandise sold was $3,000. BPBD's Chart of Accounts includes the following: (these are the only accounts you may use) No. 101 Cash No. 112 Accounts Receivable No. 120 Merchandise Inventory (including incoming freight charges) (CkFig) Note: The April 30 physical count of inventory reports $4,784 cost of goods on hand. No. 201 Accounts Payable No. 311 Common Stock No. 401 Sales Revenue No. 412 Sales Returns and Allowances No. 414 Sales Discounts No. 505 Cost of Goods Sold No. 565 Freight-out (outgoing freight charges) (don't skip proper headings!) Trial Balance CASH A/R M/I A/P COMMON STOCK SALES REVENUE SALES RETURNS AND ALLOWANCES SALES DISCOUNTS COST OF GOODS SOLD FREIGHT OUT Financial Accounting Turck Journalize, post to G/L, prepare Trial Balance and prepare partial Income Statement: The following merchandising transactions were completed by Butchs Paint Ball Distribution, Inc.(BPBD) during April, which is its first month of operations after incorporating and a purchase of some merchandise for resale in late in March. At the beginning of April, the General Ledger of BPBD, Inc. contains an $8,000 debit balance in Cash, a $1,000 debit in Merchandise Inventory, and a $9,000 credit balance in Common Stock. 6 April 2 Purchase merchandise on account from Good-Shot, Inc. $5,900, terms 2/10 n/30. 4 Sold merchandise on account $5,000; FOB destination, terms 2/10, n/30. The cost of the merchandise sold was $4,000. (two entries needed, reserve at least 6 general journal rows) 5 Received invoice and paid Fast-Freight Inc. $200 for delivery charge on April 4 sale. Received credit from Good-Shot, Inc. for merchandise returned $300. 11 Took advantage of cash discount and settled account with Good-Shot, Inc. 13 Received proper payment from customer to clear the outstanding April 4th sales invoice. 14 Purchased merchandise with cash $4,400. 16 Received refund from supplier on cash purchase of April 14, $500. 18 Purchased $4,200 of merchandise from Bobby Duke Sales, Inc., FOB shipping point, terms 2/10, n/30. Freight charges billed separately from 3rd party carrier, see next transaction. 20 Received invoice and paid Fast Freight Inc. related to April 18 purchase, $100. 23 Sold merchandise for cash $6,400. The merchandise sold had a cost of $5,120. 26 Purchased merchandise for cash $2,300. 27 Took advantage of cash discount and settled account with Bobby Duke Sales, Inc. 29 Made cash refund of $90 to customer for returned merchandise related to Apr. 23 transaction. The returned merchandise is deemed worthless and disposed of into the trash. These goods had an original cost to BPBD of $70. 30 Sold merchandise on account $3,700, terms n/30. The cost of the merchandise sold was $3,000. BPBD's Chart of Accounts includes the following: (these are the only accounts you may use) No. 101 Cash No. 112 Accounts Receivable No. 120 Merchandise Inventory (including incoming freight charges) (CkFig) Note: The April 30 physical count of inventory reports $4,784 cost of goods on hand. No. 201 Accounts Payable No. 311 Common Stock No. 401 Sales Revenue No. 412 Sales Returns and Allowances No. 414 Sales Discounts No. 505 Cost of Goods Sold No. 565 Freight-out (outgoing freight charges) (don't skip proper headings!) Trial Balance CASH A/R M/I A/P COMMON STOCK SALES REVENUE SALES RETURNS AND ALLOWANCES SALES DISCOUNTS COST OF GOODS SOLD FREIGHT OUT
