Question

At the beginning of the current season on April 1, the ledger of Oriole Pro Shop showed Cash $2,660; Inventory $3,500; and Common Stock $6,160. The following transactions were completed during April 2022.

Apr. 5		Purchased golf bags, clubs, and balls on account from Arnie Co. $1,700, terms 3/10, n/60.
7		Paid freight on Arnie purchase $80.
9		Received credit from Arnie Co. for merchandise returned $600.
10		Sold merchandise on account to members $1,410, terms n/30. The merchandise sold had a cost of $780.
12		Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $870, terms 2/10, n/30.
14		Paid Arnie Co. in full.
17		Received credit from Woods Sportswear for merchandise returned $70.
20		Made sales on account to members $810, terms n/30. The cost of the merchandise sold was $550.
21		Paid Woods Sportswear in full.
27		Granted an allowance to members for clothing that did not fit properly $85.
30		Received payments on account from members $1,380.

Journalize the April transactions using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Using T-accounts, enter the beginning balances in the ledger accounts and post the April transactions. (Post entries in the order of journal entries posted in part a. For accounts that have a zero balance select "4/30 Bal." from the list and enter 0 for the amount.)

Prepare a trial balance on April 30, 2022. (Do not list those accounts that have zero ending balance.)

Prepare an income statement through gross profit for the month of April 2022.

Answer 1

Oriole Pro Shoped April 5 2022 1700 Purchase A/C-Dr To Arnie Company 1700 April 7 2022 Freight A/c-Dr To Cash April 9 2022 600 Arnie Company - Dr To Purchase Return April 10 2022 1410 Members A/c - Dr To Sales 14101 April 12 2022 Purchase A/c - Dr To Woods Sportswear 870 April 14 2022 1100 Arnie Company - Dr To Cash 1100

April 17 2022 Woods Sportswear - Dr To Purchase Return April 20 2022 Members A/c - Dr To Sales April 21 2022 Woods Sportswear - Dr To Cash April 27 2022 No Entry April 30 2022 Cash - Dr 1380 To Members 1380

80 Opening Balance To members Cash A/C 2660 By Freight 1380 By Arnie Company By Woods Sprots wear 1100 800 To Closing balance 2060 Freight A/C To Cash 80 By Profit & Loss A/C To Closing balance 0 Members A/C By Cash 2220 Opening Balance To Sales 1380 To Closing balance

Opening Balance To Arnie Company To Woods Sportswear Purchase A/C By Arnie Company 1700 By Woods Sportswear 870 6001 70 To Closing balance 1900 Opening Balance Sales A/C By Members A/C By Members A/C I To Closing balance 2220

Trial Balance Dr 2060 3500 6160 Cash Inventory Common Stock Purchase A/C Freight A/C Members A/C Sales A/C 2220 Total 8380 8380

Income Statement For the Period Ended April 2022 1,900 Sales 2,220 Purchase Freight Gross Profit 80 240 2,220 2,220