Stevenson, a former professional tennis star, operates Steven's Tennis Shop at the Mitchell Lake Resort. At the beginning of the current season, the ledger of Steven's Tennis Shop showed Cash $2,500, Inventory $1,700, and Owner's Capital $4,200. The following transactions were completed during April. Apr. 4 Purchased racquets and balls from Miles Co. $840, FOB shipping point, terms 2/15, n/30. 6 Paid freight on purchase from Miles Co. $80. 8 Sold merchandise to members $1,350, terms n/30. The merchandise sold had a cost of $790 10 Received credit of $40 from Miles Co. for a racquet that was returned. 11 Purchased tennis shoes from Leung Sports for cash, $420. 13 Paid Miles Co. in full. 14 Purchased tennis shirts and shorts from Cyrena's Sportswear $1750, FOB shipping point, terms 2/10, n/60. The chart of accounts for the tennis shop indudes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 301 Owner's Capital, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, and No. 505 Cost of Goods Sold. Instructions (a) Journalize the April transactions using a perpetual inventory system.

Stevenson, a former professional tennis star, operates Steven's Tennis Shop at the Mitchell Lake Resort. At the beginning of the current season, the ledger of Steven's Tennis Shop showed Cash $2,500, Inventory $1,700, and Owner's Capital $4,200. The following transactions were completed during April. Apr. 4 Purchased racquets and balls from Miles Co. $840, FOB shipping point, terms 2/15, n/30. 6 Paid freight on purchase from Miles Co. $80. 8 Sold merchandise to members $1,350, terms n/30. The merchandise sold had a cost of $790 10 Received credit of $40 from Miles Co. for a racquet that was returned. 11 Purchased tennis shoes from Leung Sports for cash, $420. 13 Paid Miles Co. in full. 14 Purchased tennis shirts and shorts from Cyrena's Sportswear $1750, FOB shipping point, terms 2/10, n/60. The chart of accounts for the tennis shop indudes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 301 Owner's Capital, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, and No. 505 Cost of Goods Sold. Instructions (a) Journalize the April transactions using a perpetual inventory system.

Name: Question 05Stevenson, a former professional tennis star, operates Ste
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Description: Question 05Stevenson, a former professional tennis star, operates Steven's Tennis Shop at theMitchell Lake Resort. At the beginning of the current season, the ledger of Steven's Tennis Shopshowed Cash $2,500, Inventory $1,700, and Owner's Capital $4

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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