At the beginning of the current season on April 1, the ledger of Gage Pro Shop showed Cash $3,000, Inventory $4,000, and Owner’s Capital $7,000. These transactions occurred during April 2017. Apr. 5 Purchased golf bags, clubs, and balls on account from Tiger Co. $1,200, FOB shipping point, terms 2/10, n/60. 7 Paid freight on Tiger Co. purchases $50. 9 Received credit from Tiger Co. for merchandise returned $100. 10 Sold merchandise on account to customers $600, terms n/30. 12 Purchased golf shoes, sweaters, and other accessories on account from Classic Sportswear $450, terms 1/10, n/30. 14 Paid Tiger Co. in full. 17 Received credit from Classic Sportswear for merchandise returned $50. 20 Made sales on account to customers $600, terms n/30. 21 Paid Classic Sportswear in full. 27 Granted credit to customers for clothing that had fl aws $35. 30 Received payments on account from customers $600. The chart of accounts for the pro shop includes Cash, Accounts Receivable, Inventory, Accounts Payable, Owner’s Capital, Sales Revenue, Sales Returns and Allowances, Purchases, Purchase Returns and Allowances, Purchase Discounts, and Freight-In. Instructions (a) Journalize the April transactions using a periodic inventory system. (b) Using T-accounts, enter the beginning balances in the ledger accounts and post the April transactions
At the beginning of the current season on April 1, the ledger of Gage Pro Shop
showed Cash $3,000, Inventory $4,000, and Owner’s Capital $7,000. These transactions
occurred during April 2017.
Apr. 5 Purchased golf bags, clubs, and balls on account from Tiger Co. $1,200, FOB
shipping point, terms 2/10, n/60.
7 Paid freight on Tiger Co. purchases $50.
9 Received credit from Tiger Co. for merchandise returned $100.
10 Sold merchandise on account to customers $600, terms n/30.
12 Purchased golf shoes, sweaters, and other accessories on account from Classic
Sportswear $450, terms 1/10, n/30.
14 Paid Tiger Co. in full.
17 Received credit from Classic Sportswear for merchandise returned $50.
20 Made sales on account to customers $600, terms n/30.
21 Paid Classic Sportswear in full.
27 Granted credit to customers for clothing that had fl aws $35.
30 Received payments on account from customers $600.
The chart of accounts for the pro shop includes Cash,
Accounts Payable, Owner’s Capital, Sales Revenue, Sales Returns and Allowances, Purchases,
Purchase Returns and Allowances, Purchase Discounts, and Freight-In.
Instructions
(a) Journalize the April transactions using a periodic inventory system.
(b) Using T-accounts, enter the beginning balances in the ledger accounts and
April transactions
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