Mike Palmer, a former professional golf star, operates Mike’s Pro Shop at Bay Golf Course. At the beginning of the current season on April 1, the ledger of Mike’s Pro Shop showed Cash $2,500, Merchandise Inventory $3,500, and Common Stock $6,000.The following transactions were completed during April. Apr. 5 Purchased golf bags, clubs, and balls on account from Ramos Co. $1,500, FOB shipping point, terms 2/10, n/60. 7 Paid freight on Ramos purchase $80. 9 Received credit from Ramos Co. for merchandise returned $100. 10 Sold merchandise on account to members $1,100, terms n/30. The merchandise sold had a cost of $810. 12 Purchased golf shoes, sweaters, and other accessories on account from Penguin Sportswear $860, terms 1/10, n/30. 14 Paid Ramos Co. in full, less discount. 17 Received credit from Penguin Sportswear for merchandise returned $60. 20 Made sales on account to members $700, terms n/30.The cost of the merchandise sold was $490. 21 Paid Penguin Sportswear in full, less discount. 27 Granted an allowance to members for clothing that did not fit properly $40. 30 Received payments on account from members $1,000 The chart of accounts for the pro shop includes the following: No. 101 Cash, No. 112 Accounts Receivable,No. 120 Merchandise Inventory,No. 201 Accounts Payable,No. 311 Common Stock, No. 401 Sales, No. 412 Sales Returns and Allowances, No. 505 Cost of Goods Sold. Instructions (a) Journalize the April transactions using a perpetual inventory system. (b) Enter the beginning balances in the ledger accounts and post the April transactions. (Use J1 for the journal reference.) (c) Prepare a trial balance on April 30, 2008.
Mike Palmer, a former professional golf star, operates Mike’s Pro Shop at Bay Golf Course. At the beginning of the current season on April 1, the ledger of Mike’s Pro Shop showed Cash $2,500, Merchandise Inventory $3,500, and Common Stock $6,000.The following transactions were completed during April.
Apr. 5 Purchased golf bags, clubs, and balls on account from Ramos Co. $1,500, FOB shipping point, terms 2/10, n/60.
7 Paid freight on Ramos purchase $80.
9 Received credit from Ramos Co. for merchandise returned $100.
10 Sold merchandise on account to members $1,100, terms n/30. The merchandise sold had a cost of $810.
12 Purchased golf shoes, sweaters, and other accessories on account from Penguin Sportswear $860, terms 1/10, n/30.
14 Paid Ramos Co. in full, less discount.
17 Received credit from Penguin Sportswear for merchandise returned $60.
20 Made sales on account to members $700, terms n/30.The cost of the merchandise sold was $490.
21 Paid Penguin Sportswear in full, less discount.
27 Granted an allowance to members for clothing that did not fit properly $40.
30 Received payments on account from members $1,000
The chart of accounts for the pro shop includes the following: No. 101 Cash, No. 112
Instructions
(a) Journalize the April transactions using a perpetual inventory system.
(b) Enter the beginning balances in the ledger accounts and
(c) Prepare a
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