Problem 6 66A Recording Sale and Purchase Transactions Alpharack Company sells a line of tennis equipment to retailers Alpharack uses the perpetual inventory system and engaged in the following transactions during April 2019, its first month of operations On April 2, Alpharack purchased, on credit, 360 Wilbur T 100 tennis rackets with credit terms of 2 10, n 30 The rackets were purchased at a cost of $30 each Alpharack paid Barker Trucking $195 to transport the tennis rackets from the manufacturer to Alpharack's warehouse, shipping terms were F O B shipping point, and the items were shipped on April 2 On April 3, Alpharack purchased, for cash, 115 packs of tennis balls for $10 per pack On April 4, Alpharack purchased tennis clothing, on credit, from Designer Tennis Wear The cost of the clothing was $8,250 Credit terms were 2 10, n 25 On April 10, Alpharack paid for the purchase of the tennis rackets in Transaction a On April 15, Alpharack determined that $325 of the tennis clothing was defective Alpharack returned the defective merchandise to Designer Tennis Wear On April 20, Alpharack sold 118 tennis rackets at $90 each, 92 packs of tennis balls at $12 per pack, and $5,380 of tennis clothing All sales were for cash The cost of the merchandise sold was $7,580 On April 23, customers returned $860 of the merchandise purchased on April 20 The cost of the merchandise returned was $450 On April 25, Alpharack sold another 55 tennis rackets, on credit, for $90 each and 15 packs of tennis balls at $12 per pack, for cash The cost of the merchandise sold was $1,800 On April 29, Alpharack paid Designer Tennis Wear for the clothing purchased on April 4 minus the return on April 15 On April 30, Alpharack purchased 20 tennis bags, on credit, from Bag Designs for $320 The bags were shipped F O B destination and arrived at Alpharack on May 3 2 Assuming operating expenses of $8,500 and income taxes of $1,180, prepare Alpharack's income statement for April 2019 Alpharack Company Income Statement For the Period Ended April 30, 2019 Sales Less Cost of goods sold Gross margin Less Operating expenses Income before income taxes Income taxes expense Net income

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Problem 6-66A Recording Sale and Purchase Transactions Alpharack Company sells a line of tennis equipment to retailers. Alpharack uses the perpetual inventory system and engaged

Problem 6-66A Recording Sale and Purchase Transactions

Alpharack Company sells a line of tennis equipment to retailers. Alpharack uses the perpetual inventory system and engaged in the following transactions during April 2019, its first month of operations:

On April 2, Alpharack purchased, on credit, 360 Wilbur T-100 tennis rackets with credit terms of 2/10, n/30. The rackets were purchased at a cost of $30 each. Alpharack paid Barker Trucking $195 to transport the tennis rackets from the manufacturer to Alpharack's warehouse, shipping terms were F.O.B. shipping point, and the items were shipped on April 2.
On April 3, Alpharack purchased, for cash, 115 packs of tennis balls for $10 per pack.
On April 4, Alpharack purchased tennis clothing, on credit, from Designer Tennis Wear. The cost of the clothing was $8,250. Credit terms were 2/10, n/25.
On April 10, Alpharack paid for the purchase of the tennis rackets in Transaction a.
On April 15, Alpharack determined that $325 of the tennis clothing was defective. Alpharack returned the defective merchandise to Designer Tennis Wear.
On April 20, Alpharack sold 118 tennis rackets at $90 each, 92 packs of tennis balls at $12 per pack, and $5,380 of tennis clothing. All sales were for cash. The cost of the merchandise sold was $7,580.
On April 23, customers returned $860 of the merchandise purchased on April 20. The cost of the merchandise returned was $450.
On April 25, Alpharack sold another 55 tennis rackets, on credit, for $90 each and 15 packs of tennis balls at $12 per pack, for cash. The cost of the merchandise sold was $1,800.
On April 29, Alpharack paid Designer Tennis Wear for the clothing purchased on April 4 minus the return on April 15.
On April 30, Alpharack purchased 20 tennis bags, on credit, from Bag Designs for $320. The bags were shipped F.O.B. destination and arrived at Alpharack on May 3.

2. Assuming operating expenses of $8,500 and income taxes of $1,180, prepare Alpharack's income statement for April 2019.

Alpharack Company
Income Statement
For the Period Ended April 30, 2019
Sales
Less: Cost of goods sold
Gross margin
Less: Operating expenses
Income before income taxes
Income taxes expense
Net income