Journalise, post and prepare trial balance and partial statement of profit or loss. LO1, 2, 4

At the beginning of the current season, the ledger of Kids Sportstore Ltd showed Cash $5250;

Inventory $3570; and Share Capital $8820. The following transactions were completed during

October 2019.

Oct. 4 Purchased bats and balls from Robert & Co. $1974, FOB shipping point, terms 3/7, n/30.

6 Paid freight on Robert & Co. purchase $84.

8 Sold inventory to customers $1890, terms n/30.

10 Received credit of $84 from Robert & Co. for a damaged bat that was returned.

11 Purchased cricket shoes from Niki Sports for cash $1260.

11 Paid Robert & Co. amount due.

14 Purchased shirts and shorts from Cash's Sportswear $1050, FOB shipping point,

terms 2/7, n/60.

15 Received cash refund of $105 from Niki Sports for damaged inventory that was returned.

17 Paid freight on Cash's Sportswear purchase $63.

18 Sold inventory $1680, terms n/30.

20 Received $1050 in cash from customers in settlement of their accounts.

20 Paid Cash's Sportswear amount due.

27 Granted credit of $63 for clothing that did not !t.

30 Sold inventory to customers $1890, terms n/30.

30 Customers paid amounts owing on accounts, $1050.

The chart of accounts for Kids Sportstore Ltd includes Cash, Accounts receivable, Inven-

tory, 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) Trial balance as at 31 October 2019.

(d) Journalise the closing entries.

(e) Statement of pro!t or loss up to gross pro!t, assuming inventory on hand at

31 October is $3780.