Wildhorse Distributors completed the following merchandising transactions in the month of April. At the beginning of April, the ledger of Wildhorse showed Cash of 9,500 and Share Capital - Ordinary of 9,500. Apr. 2 4 5 6 11 13 14 16 Purchased merchandise on account from Walker Supply 6,300, terms 1/10,n/30. Sold merchandise on account 5,900, FOB destination, terms 1/10, 1/30. The cost of the merchandise sold was 4,400. Paid 250 freight on April 4 sale. Received credit from Walker Supply for merchandise returned 200. Paid Walker Supply in full, less discount. Received collections in full, less discounts, from customers billed on April 4. Purchased merchandise for cash 4,300. Received refund from supplier for returned goods on cash purchase of April 14, 640. Purchased merchandise from Benjamin Glassware 2,900,FOB shipping point, terms 2/10,n/30. Paid freight on April 18 purchase 220. Sold merchandise for cash 8,100. The merchandise sold had a cost of 5,800. Purchased merchandise for cash 3,500. Paid Benjamin Glassware in full, less discount. Made refunds to cash customers for defective merchandise 80. The returned merchandise had a fair value of 40. Sold merchandise on account 3,000, terms n/30. The cost of the merchandise sold was 2,300. 18 20 23 26 27 29 30 Wildhorse chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 311 Share Capital - Ordinary, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, No.505 Cost of Goods Sold, and No. 644 Freight-Out. Journalize the transactions using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit LIC ULLU TIL LILIES UTIU CHIEF JUSTIC UNITIES Date Account Titles and Explanation Debit Credit (To record credit sale) (To record cost of merchandise sold) (To record cost of merchandise sold) (To record merchandise returned) > (To record cost of merchandise returned) > (To record credit sale) > (To record cost of merchandise sold) Enter the beginning cash and share capital-ordinary balances, and post the transactions. (Post entries in the order of journal entries presented in the previous part.) Cash No. 101 Balance Date Explanation Ref. Debit Credit Balance > 21 01 > 31 > 31 > J1 31 01 No. 112 Accounts Receivable Date Explanation Ref. Debit Credit Balance J1 31 31 Inventory No. 120 Inventory No. 120 Date Explanation Ref. Debit Credit Balance J1 31 J1 31 J1 31 31 31 V 31 V J1 J1 1 J1 Freight-Out No. 126 Date Explanation Ref. Debit Credit Balance J1 Accounts Payable No. 201 Date Explanation Ref. Debit Credit Balance 31 J1 31 J1 J1 Share CapitalOrdinary No. 301 No. 301 Share Capital-Ordinary Date Explanation Ref. Debit Credit Balance Balance Sales Revenue No. 401 Date Explanation Ref. Debit Credit Balance J1 > 01 > 31 Prepare the income statement through gross profit for the month of April 2020. Prepare the income statement through gross profit for the month of April 2020. WILDHORSE DISTRIBUTORS Income Statement (Partial) (1)
