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.

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

Answer 1

	Kingbird Inc,.
	Journal Entries
Date	Account Title	Dr $	Cr $
Apr 5.	Inventory	1,100
	Accounts Payable		1,100
April 7.	Inventory	40
	Cash		40
Apr 9.	Accounts Payable	200
	Inventory		200
Apr 10.	Accounts Receivable	860
	Sales Revenue		860
	Inventory		516
	Cost of Goods Sold	516
Apr 12.	Inventory	660
	Accounts Payable		660
Apr 14.	Accounts Payable	900
	Cash		882
	Inventory		18
Apr 17.	Accounts Payable	60
	Inventory		60
Apr 20.	Accounts Receivable	680
	Sales Revenue		680
	Inventory		350
	Cost of Goods Sold	350
Apr 21.	Accounts Payable	600
	Cash		594
	Inventory		6
Apr 27.	Sales Returns & Allowance	10
	Accounts Receivable		10
Apr 30.	Accounts Receivable		920
	Cash	920