Question

pare P5-4B Alex Diaz, a former professional tennis star, operates Diaz Tennis Shop at the Cedar Lake Resort. At the beginning of the current season, the ledger of Diaz Tennis Shop showed Cash $2,500, Inventory $1,700, and Owner's Capital $4,200. The following transactions were completed during April. Apr. + Purchased racquets and balls from Marx Co. $840, FOB shipping point, terms 2/10, n/30 6 Paid freight on purchase from Marx Co. $40. 8 Sold merchandise to members $1,150, terms n/30. The merchandise sold had a cost of $790. 10 Received credit of $40 from Marx Co. for a racquet that was returned. 11 Purchased tennis shoes from Rupp Sports for cash, $420. 13 Paid Marx Co. in full. 14 Purchased tennis shirts and shorts from Hayley's Sportswear $900, FOB shipping point, terms 3/10, 1/60 15 Received cash refund of $50 from Rupp Sports for damaged merchandise that was returned. 17 Paid freight on Hayley's Sportswear purchase $30. 18 Sold merchandise to members $900, terms n/30. The cost of the merchandise sold was $540. 20 Received $600 in cash from customers in settlement of their accounts. 21 Paid Hayley's Sportswear in full. Granted an allowance of $40 to members for tennis clothing that did not fit properly. 30 Received cash payments on account from customers, $710.

Answer 1

Diaz Tennis Shop Journal entries Date Accounts 4-Apr Inventory Accounts Payable Credit Calculation Post ref Debit $ 840 $ 840 6-Apr 40 Inventory Cash $ 40 8-Apr $ 1,150 Accounts Receivable Sales Revenue $ 1,150 $ 790 8-Apr Cost of Goods Sold Inventory $ 790 $ 40 10-Apr Accounts Payable Inventory $ 40 $ 420 11-Apr Inventory Cash $ 420 $ 800 =840-40 13-Apr Accounts Payable Cash Inventory $ $ 784 16 =800*2% $ 900 14-Apr Inventory Accounts Payable $ 900 $ 50 15-Apr Cash Inventory $ 50 $ 30 17-Apr Inventory Cash $ 30 $ 900 18-Apr Accounts Receivable Sales Revenue $ 900 $ 540 18-Apr Cost of Goods Sold Inventory $ 540 $ 600 20-Apr Cash Accounts Receivable $ 600 $ 900 21-Apr Accounts Payable Cash Inventory $ $ 873 27 =900*3% J1 $ 40 27-Apr Sales Returns and Allowances Accounts Receivable J1 $ 40 J1 $ 710 30-Apr Cash Accounts Receivable $ 710

Diaz Tennis Shop T Accounts Date Item Credit Debit Balance Credit Date Item Post Ref Debit Cash $ $ $ 1-Apr Balance 6-Apr 11-Apr 13-Apr 15-Apr 17-Apr 20-Apr 21-Apr 30-Apr HIGHT 1-Apr Balance 8-Apr 18-Apr 20-Apr 27-Apr 30-Apr $ 40 $ 420 $ 784 $ $ 30 $ $ 873 $ $ $ 2,500 2,460 2,040 1,256 1,306 1,276 1,876 1,003 1,713 덕덕덕덕덕 50 Balance Post Ref Debit Credit Debit Credit Accounts Receivable $ - $ 1,150 $ 1,150 $ 900 $ 2,050 $ 600 $ 1,450 $ 40 $ 1,410 $ 710 $ 700 $ $ 600 $ $ 710 Inventory Accounts Payable $ 840 | 1-Apr Balance 4-Apr 10-Apr 13-Apr 14-Apr 21-Apr $ $ 40 800 790 40 $ $ $ $ $ 840 800 . 900 - | $ 900 | $ 900 1-Apr Balance 4-Apr 6-Apr 8-Apr 10-Apr 11-Apr 13-Apr 14-Apr 15-Apr 17-Apr 18-Apr 21-Apr $ 1,700 $ 2,540 $ 2,580 $ 1,790 $ 1,750 $ 2,170 $ 2,154 $ 3,054 $ 3,004 $ 3,034 $ 2,494 $ 2,467 $ 840 $ 40 $ $ $ 420 $ $ 900 $ $ 30 $ $ Owners Capital 16 | 50 | 540 27 | Sales Revenue 1-Apr Balance $ 4,2001 -Apr Balance $ 4,200 8-Apr $ 4,200 18-Apr $ 1,150 $ 900 Cost of Goods Sold $ $ $ - 1,150 2,050 1-Apr Balance 27-Apr Sales Returns and Allowances $ J1 $ 40 $ $ . 40 40 1-Apr Balance 8-Apr 18-Apr $ $ 790 540 $ $ $ . 790 1,330

Trial Balance Debit Credit 1,713 700 2,467 Diaz Tennis Shop Account Names Cash Accounts Receivable Inventory Accounts Payable Owners Capital Sales Revenue Sales Returns and Allowances Cost of Goods Sold Totals 4,200 2,050 1,330 6,250 6,250