Problem 5-8A

At the beginning of the current season, the ledger of Bridgeport Tennis Shop AG showed Cash CHF2,674; Inventory CHF1,874; and Share CapitalOrdinary CHF4,548. The following transactions were completed during April.

Apr. 4		Purchased racquets and balls from Lowell Co. CHF1,034, terms 3/10, n/30.
6		Paid freight on Lowell Co. purchase CHF248.
8		Sold merchandise to members CHF1,074, terms n/30.
10		Received credit of CHF234 from Lowell Co. for a racquet that was returned.
11		Purchased tennis shoes from Volker Sports for cash CHF474.
13		Paid Lowell Co. in full.
14		Purchased tennis shirts and shorts from Linzey Sportswear CHF874, terms 1/10, n/60.
15		Received cash refund of CHF264 from Volker Sports for damaged merchandise that was returned.
17		Paid freight on Linzey Sportswear purchase CHF199.
18		Sold merchandise to members CHF1,374, terms n/30.
20		Received CHF674 in cash from members in settlement of their accounts.
21		Paid Linzey Sportswear in full.
27		Granted an allowance of CHF199 to members for tennis clothing that did not fit properly.
30		Received cash payments on account from members CHF804.

Prepare an income statement through gross profit, assuming inventory on hand at April 30 is CHF2,314. (Round answers to 0 decimal places, e.g. 125.)