Question

This is a 4-part question.

At the beginning of the current season on April 1, the ledger of Sheridan Pro Shop showed Cash $3,410; Inventory $3,500; and Common Stock $6,910. The following transactions were completed during April 2022.

Apr. 5		Purchased golf bags, clubs, and balls on account from Arnie Co. $1,600, terms 4/10, n/60.
7		Paid freight on Arnie purchase $80.
9		Received credit from Arnie Co. for merchandise returned $500.
10		Sold merchandise on account to members $1,320, terms n/30. The merchandise sold had a cost of $730.
12		Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $860, terms 2/10, n/30.
14		Paid Arnie Co. in full.
17		Received credit from Woods Sportswear for merchandise returned $60.
20		Made sales on account to members $960, 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 $1,240.

A)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 the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

B)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.)

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

SHERIDAN PRO SHOP Trial Balance

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

SHERIDAN PRO SHOP Income Statement (Partial)

Answer 1