Antonio Miranda, a former professional golf star, operates Antonio's Pro Shop at Bay Golf Course. At the beginning of the current season on April 1, the ledger of Antonio's Pro Shop showed Cash of 5,000, Inventory of 7,000, and A. Miranda Capital 12,000. The following Transactions were completed during April. April 05 Purchased Golf bags, clubs and balls on account from Ellis Ltd. 3,600 FOB Shipping Point terms 2/10, n/60 April 07 Paid Freight on Ellis purchase 160 April 09 Received credit from Ellis Ltd. For Inventory returned 200 April 10 Sold inventory on account to members 2400 terms n/30. The inventory sold had a cost of 1,620. April 12 Purchased gold shoes, clothing and other accessories on account from Penguin Sportswear 1,320 terms 1/10 n/30 April 14 Paid Ellis Ltd in full April 17 Received credit from Penguin sportswear for inventory returned 120 April 20 Made sales on account to members 1400 terms n/30. The cost of inventory sold was 980 April 21 Paid Penguin Sportwear in full April 27 Granted an allowance to members for clothing that did not fit properly 80 April 30 Received payments on account from members 2,000 The chart of accounts for the pro shop includes the following 101 Cash 415 Sales Discounts 112 Accounts Receivable 505 Cost of Sales 120 Inventory 126 Supplies 201 Accounts Payable 508 Purchase Discounts 510 Freight In 515 Purchase Returns and Allowances 301 A Miranda Capital 401 Sales 412 Sales Return and Allowances Instruction: 1. Journalize the transactions using perpetual and periodic inventory system. 2. Prepare the balance sheet and income statement.
Antonio Miranda, a former professional golf star, operates Antonio's Pro Shop at Bay Golf Course. At the beginning of the current season on April 1, the ledger of Antonio's Pro Shop showed Cash of 5,000, Inventory of 7,000, and A. Miranda Capital 12,000. The following Transactions were completed during April. April 05 Purchased Golf bags, clubs and balls on account from Ellis Ltd. 3,600 FOB Shipping Point terms 2/10, n/60 April 07 Paid Freight on Ellis purchase 160 April 09 Received credit from Ellis Ltd. For Inventory returned 200 April 10 Sold inventory on account to members 2400 terms n/30. The inventory sold had a cost of 1,620. April 12 Purchased gold shoes, clothing and other accessories on account from Penguin Sportswear 1,320 terms 1/10 n/30 April 14 Paid Ellis Ltd in full April 17 Received credit from Penguin sportswear for inventory returned 120 April 20 Made sales on account to members 1400 terms n/30. The cost of inventory sold was 980 April 21 Paid Penguin Sportwear in full April 27 Granted an allowance to members for clothing that did not fit properly 80 April 30 Received payments on account from members 2,000 The chart of accounts for the pro shop includes the following 101 Cash 415 Sales Discounts 112 Accounts Receivable 505 Cost of Sales 120 Inventory 126 Supplies 201 Accounts Payable 508 Purchase Discounts 510 Freight In 515 Purchase Returns and Allowances 301 A Miranda Capital 401 Sales 412 Sales Return and Allowances Instruction: 1. Journalize the transactions using perpetual and periodic inventory system. 2. Prepare the balance sheet and income statement.
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 5PB: Review the following transactions and prepare any necessary journal entries. A. On January 5, Bunnet...
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Transcribed Image Text:Antonio Miranda, a former professional golf star, operates
Antonio's Pro Shop at Bay Golf Course. At the beginning of the
current season on April 1, the ledger of Antonio's Pro Shop
showed Cash of 5,000, Inventory of 7,000, and A. Miranda
Capital 12,000. The following Transactions were completed
during April.
April 05 Purchased Golf bags, clubs and balls on account from Ellis Ltd. 3,600 FOB
Shipping Point terms 2/10, n/60
April 07 Paid Freight on Ellis purchase 160
April 09 Received credit from Ellis Ltd. For Inventory returned 200
April 10 Sold inventory on account to members 2400 terms n/30. The inventory sold had a
cost of 1,620.
April 12 Purchased gold shoes, clothing and other accessories on account from Penguin
Sportswear 1,320 terms 1/10 n/30
April 14 Paid Ellis Ltd in full
April 17 Received credit from Penguin sportswear for inventory returned 120
April 20 Made sales on account to members 1400 terms n/30. The cost of inventory sold
was 980
April 21 Paid Penguin Sportwear in full
April 27 Granted an allowance to members for clothing that did not fit properly 80
April 30 Received payments on account from members 2,000
The chart of accounts for the pro shop includes the
following
101 Cash
415 Sales Discounts
112 Accounts Receivable
505 Cost of Sales
120 Inventory
126 Supplies
201 Accounts Payable
508 Purchase Discounts
510 Freight In
515 Purchase Returns and
Allowances
301 A Miranda Capital
401 Sales
412 Sales Return and Allowances
Instruction:
1. Journalize the transactions using perpetual and periodic
inventory system.
2. Prepare the balance sheet and income statement.
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