Question

Adam Nichols, a former disc golf star, operates Blue Spruce Corp. At the beginning of the current season on April 1, the ledger of Blue Spruce Corp. showed Cash $1,800, Inventory $2,300, and Common Stock $4,100. The following transactions were completed during April. Apr.5 Purchased golf discs, bags, and other inventory on account from Rayford Co. $1,050, FOB shipping point, terms 2/10, 1/60. 7 Paid freight on the Rayford purchase $50. 9 Received credit from Rayford Co. for merchandise returned $200. 10 Sold merchandise on account for $800, terms 1/30. The merchandise sold had a cost of $480. 12 Purchased disc golf shirts and other accessories on account from Galaxy Sportswear $650, terms 1/10, 1/30. 14 Paid Rayford Co. in full, less discount. 17 Received credit from Galaxy Sportswear for merchandise returned $50. 20 Made sales on account for $540, terms n/30. The cost of the merchandise sold was $300. 21 Paid Galaxy Sportswear in full, less discount 27 Granted an allowance to customers for clothing that was flawed $30. 30 Received payments on account from customers $930. 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.

Answer 1

Cash					No.101
Date	Explanation	Ref.	Debit	Credit	Balance
Apr-01	Balance.				$ 1,800
Apr-07		J1		$ 50	$ 1750
Apr-14		J1		$ 833 {850-17}	$ 917
Apr-21		J1		$ 594 {600-6}	$ 323
Apr-30		J1	$ 930		$ 1,253 (Dr.)
Accounts Receivable					No.112
Date	Explanation	Ref.	Debit	Credit	Balance
Apr-10		J1	$ 800		$ 800
Apr-20		J1	$ 540		$ 1,340
Apr-27		J1		$ 30	$ 1,310
Apr-30		J1		$ 930	$ 380 (Dr.)
Inventory					No.120
Date	Explanation	Ref.	Debit	Credit	Balance
Apr-01	Balance.				$ 2,300
Apr-05		J1	$ 1,050		$ 3,350
Apr-07		J1	$ 50		$ 3,400
Apr-09		J1		$ 200	$ 3,200
Apr-10		J1		$ 480	$ 2,720
Apr-12		J1	$ 650		$ 3,370
Apr-14		J1		$ 17 {850*2%}	$ 3,353
Apr-17		J1		$ 50	$ 3,303
Apr-20		J1		$ 300	$ 3,003
Apr-21		J1		$ 6 {600*1%}	$ 2,997 (Dr.)
Accounts Payable					No.201
Date	Explanation	Ref.	Debit	Credit	Balance
Apr-05		J1		$ 1,050	$ 1,050
Apr-09		J1	$ 200		$ 850
Apr-12		J1		$ 650	$ 1,500
Apr-14		J1	$ 850		$ 650
Apr-17		J1	$ 50		$ 600
Apr-21		J1	$ 600		$ 0
Common Stock					No.311
Date	Explanation	Ref.	Debit	Credit	Balance
Apr-01	Balance.				$ 4,100 (Cr.)
Sales Revenue					No.401
Date	Explanation	Ref.	Debit	Credit	Balance
Apr-10		J1		$ 800	$ 800
Apr-20		J1		$ 540	$ 1,340 (Cr.)
Sales Return and Allowances					No.412
Date	Explanation	Ref.	Debit	Credit	Balance
Apr-27		J1	$ 30		$ 30 (Dr.)
Cost Of Goods Sold					No.505
Date	Explanation	Ref.	Debit	Credit	Balance
Apr-10		J1	$ 480		$ 480
Apr-20		J1	$ 300		$ 780 (Dr.)

ADAM'S DISCORAMA
Trial Balance
April 30 th
Accounts	Debit	Credit
Cash	$ 1,253
Accounts Receivable	$ 380
Inventory	$ 2,997
Accounts payable		$ 0
Common Stock		$ 4,100
Sales Revenue		$ 1,340
Sales Returns and Allowances	$ 30
Cost of goods sold	$ 780
Totals	$ 5,440	$ 5,440