Required

1. Journalise the October transactions using a periodic inventory system.

2. Using T accounts, enter the beginning balances in the ledger accounts and post the October transactions.

3. Prepare a trial balance as at 31 October 2019.

4. Journalise the closing entries.

5. Prepare a statement of profit or loss up to gross profit, assuming inventory on hand at 31 October is $3600.

PSB5.7 Journalise, post and prepare trial balance and partial statement of profit or loss. L01,2,4 At the beginning of the current season, the ledger of Mill Park Tennis Shop Pty Ltd showed Cash $5000; Inventory $3400; and Share capital $8400. The following transactions were completed during October 2019. Oct. 4 Purchased racquets and balls from Robert & Co. $1880, FOB shipping point, terms 3/7, n/30. 6 Paid freight on Robert& Co. purchase $80 Sold inventory to members $1800, terms n/30 10 11 11 14 8 Received credit of S80 from Robert & Co. for a damaged racquet that was returned. Purchased tennis shoes from Niki Sports for cash $1200. Paid Robert & Co. amount due. Purchased tennis shirts and shorts from Cash's Sportswear $1000, FOB shipping point, terms 2/7, n/60. Received cash refund of $100 from Niki Sports for damaged inventory that was returned. Paid freight on Cash's Sportswear purchase $60. Sold inventory $1600, terms n/30 Received $1000 in cash from customers in settlement of their accounts 15 17 18 20 20 Paid Cash's Sportswear amount due 27 30 30 Granted credit of $60 for tennis clothing that did not fit. Sold inventory to customers $1800, terms n/30. Customers paid amounts owing on accounts, $1000. The chart of accounts for the tennis shop includes Cash, Accounts receivable, Inventory, Accounts payable, Share capital, Sales, Sales returns and allowances, Purchases, Purchase returns and allowances, Discount received, and Freight-in