Question

At the beginning of the current season on April 1, the ledger of Swifty Pro Shop showed Cash $2,990; Inventory $3,500; and Common Stock $3,490. The following transactions were completed during April 2022.

Apr. 5		Purchased golf bags, clubs, and balls on account from Arnie Co. $2,100, terms 2/10, n/60.
7		Paid freight on Arnie purchases $80.
9		Received credit from Arnie Co. for merchandise returned $500.
10		Sold merchandise on account to members $1,380, terms n/30. The merchandise sold had a cost of $890.
12		Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $1,050, terms 2/10, n/30.
14		Paid Arnie Co. in full.
17		Received credit from Woods Sportswear for merchandise returned $50.
20		Made sales on account to members $860, 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 $90.
30		Received payments on account from members $1,290.

I need help with the journal entries, T-accounts, Trial Balance, and income statement.

Answer 1

A.

		Debit	Credit
April 5	Inventory Dr.	2100
	To accounts payable		2100
April 7	inventory dr.	80
	to cash		80
April 9	accounts payable Dr.	500
	to inventory		500
April 10	accounts receivable dr.	1380
	to sales revenue		1380
april 10	COGS Dr.	890
	to inventory		890
april 12	inventory dr.	1050
	to accounts payable		1050
april 14	accounts payable dr.	1600
	to sales return and allowances		32
	to cash		1568
april 17	accounts payable dr.	50
	to inventory		50
april 20	accounts receivable dr.	860
	to sales revenue		860
april 20	COGS dr.	550
	to inventory		550
april 21	accounts payable dr.	1000
	to sales return and allowances		20
	to cash		980
april 27	sales return and allowances	90
	to accounts receivable		90
april 30	cash dr.	1290
	to accounts receivable		1290

B. Cash A/c

To bal	2990	By invenotry	80
to accounts receivable	1290	by accounts payable	1568
		by accounts payable	980
		by bal	1652

Inventory A/c

to bal	3500	by accounts payable	500
to accounts payable	2100	by cogs	890
to cash	80	by accounts payable	50
to accounts payable	1050	by cogs	550
		by bal	4740

Common stock A/c

		By bal	6490
to bal	6490

Accounts payable A/c

to invenotry	500	By invenotry	2100
to sales return and allowances	32	by inventory	1050
to cash	1568
to inventory	50
to sales return and allowances	20
to cash	980

Accounts receivable A/c

to sales revenue	1380	by sales return and allowances	90
to sales revenue	860	by cash	1290
		by bal	860

Sales revenue A/c

		by accounts receivable	1380
		by accounts receivable	860
to bal	2240

COGS A/c

to inventory	890
to inventory	550	by bal	1440

sales return and allowances A/c

		by accounts payable	32
to accounts receivble	90	by accounts payable	20
		By Bal	38

C. Trial balance

	Debit	Credit
Cash	1652
inventory	4740
accounts receivable	860
common stock		6490
sales revenue		2240
COGS	1440
Sales return and allowances	38
Total	8730	8730

D. Income statement

Sales revenue		2240
Less: Sales returns and allowances		(38)
Net sales		2202
Less: COGS		(1440)
Gross Income		762