Question

Problem 5-04A a-c

Adam Nichols, a former disc golf star, operates Kingbird, Inc.. At the beginning of the current season on April 1, the ledger of Kingbird, Inc. showed Cash $1,800, Inventory $2,600, and Common Stock $4,400. The following transactions were completed during April.

Apr. 5		Purchased golf discs, bags, and other inventory on account from Rayford Co. $1,100, FOB shipping point, terms 2/10, n/60.
7		Paid freight on the Rayford purchase $40.
9		Received credit from Rayford Co. for merchandise returned $200.
10		Sold merchandise on account for $860, terms n/30. The merchandise sold had a cost of $516.
12		Purchased disc golf shirts and other accessories on account from Galaxy Sportswear $660, terms 1/10, n/30.
14		Paid Rayford Co. in full, less discount.
17		Received credit from Galaxy Sportswear for merchandise returned $60.
20		Made sales on account for $680, terms n/30. The cost of the merchandise sold was $350.
21		Paid Galaxy Sportswear in full, less discount.
27		Granted an allowance to customers for clothing that was flawed $10.
30		Received payments on account from customers $920.

The chart of accounts for the store includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 311 Common Stock, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, and No. 505 Cost of Goods Sold.

1)Journalize the April transactions using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

2)Enter the beginning balances in the ledger accounts and post the April transactions. (Round answers to 0 decimal places, e.g. 5,275. Post entries in the order of journal entries presented in the previous part.)

3)Prepare a trial balance on April 30, 2020. (Round answers to 0 decimal places, e.g. 5,275.)

Kingbird, Inc. Trial Balance For the Quarter Ended April 30, 2020For the Year Ended April 30, 2020April 30, 2020
	Debit		Credit
	$		$
Totals	$		$

Answer 1

Answer:-

Kingbird Inc,. Journal Entries
Date	Particulars	Debit	Credit
Apr 5.	Inventory A/c	1,100
	To Accounts Payable A/c		1,100
April 7.	Inventory A/c	40
	To Cash A/c		40
Apr 9.	Accounts Payable A/c	200
	To Inventory A/c		200
Apr 10.	Accounts Receivable A/c	860
	To Sales Revenue A/c		860
	Cost of Goods Sold A/c	516
	To Inventory A/c		516
Apr 12.	Inventory A/c	600
	To Accounts Payable A/c		600
Apr 14.	Accounts Payable A/c	900
	To Cash A/c		882
	To Inventory A/c		18
Apr 17.	Accounts Payable A/c	60
	To Inventory A/c		60
Apr 20.	Accounts Receivable A/c	680
	To Sales Revenue A/c		680
	Cost of Goods Sold A/c	350
	To Inventory A/c		350
Apr 21.	Accounts Payable A/c	600
	To Cash A/c		594
	To Inventory A/c		6
Apr 27.	Sales Returns & Allowance A/c	10
	To Accounts Receivable A/c		10
Apr 30.	Cash A/c	920
	To Accounts Receivable A/c		920

Trial Balance as on April 30, 2017

PARTICULARS	DEBIT	CREDIT
Sales Revenue		$1450
Sales Return & Allowance	$10
Cost of Goods Sold	$822
Common Stock		$4200
Accounts Payable		$0
Inventory	$2895
Accounts Receivable	$490
Cash	$1433
TOTAL	$5650	$5650