At the beginning of the current season on April 1, the ledger of Bonita Pro Shop showed Cash $2,500;Merchandise Inventory $3,500;and V.J.Singh,Capital $6,000.These trans- actions occured during April 2010. Apr. 5 Purchased golf bags,clubs,and balls on account from Hardee Co.$2,200,FOB shipping point,terms 2/10,n/60. 7 Paid freight on Hardee Co.purchases $80. 9 Received credit from Hardee Co.for merchandise returned $200. 10 Sold merchandise on account to members $950,terms n/30. 12 Purchased golf shoes, sweaters, and other accessories on account from Arrow Sportswear $460,terms 1/10,n/30. 14 Paid Hardee Co.in full. 17 Received credit from Arrow Sportswear for merchandise returned $60. 20 Made sales on account to members $1,000,terms n/30. 21 Paid Arrow Sportswear in full. 27 Granted credit to members for clothing that did not fit properly $75. 30 Received payments on account from members $1,100. The chart of accounts for the pro shop includes Cash; Accounts Receivable, Merchandise Inventory;Accounts Payable;V.J.Singh,Capital;Sales;Sales Returns and Allowances;Purchases; trial balance and partial income statement using periodic approach.Purchase Returns and Allowances;Purchase Discounts,and Freight-in. Instructions (a) Journalize the April transactions using a periodic inventory system. (b)Using T accounts, enter the beginning balances in the ledger accounts and post the April transactions. (c) Prepare a trial balance on April 30,2010. (d)Prepare an income statement through gross profit,assuming merchandise inventory on hand at April 30 is $4,524.
Paper#7830 | Written in 18-Jul-2015Price : $25