Caleb Borke, a former disc golf star, operates Caleb's Discorama. At the beginning of the current season on April 1, the ledger of Caleb's Discorama showed Cash $1, 800, Merchandise Inventory $2,00, and C Borke, Capital $4, 300. The following transactions were completed during April. Apr. 5 Purchased golf discs, bags and other inventory on account from In nova Co $1, 200, FOB shipping point, terms 2/10, n/60. 7 Paid freight on In novas purchase $50. 9 Received credit from In nova Co. for merchandise returned $100. 10 Sold merchandise on account for $900, terms n/30. The merchandise sold had a cost of $540. 12 Purchased disc golf shirts and other accessories on account from Lightning Sportswear $670, terms 1/10, n/30. 14 Paid In nova Co. in full, less discount. 17 Received credit from Lightning Sportswear for merchandise returned $70. 20 Made sales on account for $560, terms n/30. The cost of the merchandise sold was $340. 21 Paid Lightning Sportswear in full, less discount. 27 Granted an allowance to members for clothing that was flawed $30. 30 Received payments on account from customers $800. The chart of accounts for the store includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Merchandise Inventory, No. 201 Accounts Payable, No. 301 C Broke, Capital. No. 401 Sales, No. 412 Sales Returns and Allowances. No. 505 Cost of Goods Sold. (a) Journalize the April transactions using a perpetual inventory system. (b) Enter the beginning balances in the ledger accounts and post the April transactions. (Use J1 for the journal reference.) (c) Prepare a trial balance on April 30, 2010. At the beginning of the current season, the ledger of Village Tennis Shop showed (ash $2, 500; Merchandise Inventory $1, 700; and Angie Wilbert. Capital $4, 200. The following transactions were completed during April. Apr. 4 Purchased racquets and balls from Denton Co. $740, terms 3/10, n/30. 6 Paid freight on Denton Co. purchase $60. 8 Sold merchandise to members $900, terms n/30. 10 Received credit of $40 from Denton Co. for a racquet that was returned. 11 Purchased tennis shoes from New bee Sports for cash $300. 13 Paid Denton Co. in full. 14 Purchased tennis shirts and shorts from Venus's Sportswear $600. Terms 2/10, n/60. 15 Received cash refund of $50 from New bee Sports for damaged merchandise that was returned. 17 Paid freight on Venus's Sportswear purchase $30 18 Sold merchandise to members $1,000, terms n/30. 20 Received $500 in cash from members in settlement of their accounts. 21 Paid Venus'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
