MERCHANDISING BUSINESS TRANSACTION:

VillanuevaMission operates Jane's All-Star Tennis Shop. At the beginning of the season, The ledger of Jane's All-Star Tennis Shop showed CASH 2,500; MERCHANDISE INVENTORY 3,500 and COMMON STOK 6,000.

The following transaction were completed during JUNE 2020.

June 02 Purchased Tennis rackets and balls on account from Gorgeous ElaizaCo. for 1,600, FOB shipping point. terms 2/10, n/60.

June 05 Paid Freight on Gorgeous Elaiza purchase 80

June 07 Received credit from Gorgeous ElaizaCo. for merchandise retuned,100

June 09 Sold merchandise on account, 1,100. Merchandise sold had a cost of 730

June 10 Purchased shoes, shirts and other accessories from Lorna sports wear, 600 terms 1/10, n/30.Payment was settled with cash immediatly June 11 Paid Gorgeous ElaizaCo . in full

June 16 Received cash refund of 60 from Lorna sportswear for merchandise returned.

June 17 Received cash of 400 for tennis shirts sold to customers

June 26 Granted an allowances to customers for tennis shirts that did not fit, 40

Requirements:

1.Provide the journal entries for the transactions using PERIODIC METHOD

2.Post the entries to the ledger using T-accounts.

3.Prepare the unadjusted trial balance using a worksheet.

4.Complete the worksheet

5.Prepare the closing entries and post closing trial balance

6.Prepare the balance sheet and income statement

7.Cashflow (INDIRECT METHOD)