The Shoes Blog

At the beginning of the current season on April 1, the ledger of Fairway Pro Shop showed Cash $2,500; Merchandise Inventory $3,500; and Common Stock $6,000. The following transactions were completed during April, 2007

Apr. 5 Purchased golf bags, clubs, and balls on account from Kokott Co. $1,800 terms 3/10, n/60

Apr 7. Paid Freight on Kikott purchase $80

Apr. 9 Received Credit from Kokott Co. for merchandise returned $200

Apr. 10 Sold merchandise on account to members $910, terms n/30. the merchandise sold had a cost of $620

Apr. 12 Purchased golf shoes, sweaters and other accessories on account from Eagle Sportswear $730, terms 1/10, n/30

Apr 14 Paid Kokott Co. in full

Apr. 17 Received credit from Eagle sportswear for merchandise returned $30

Apr 20. Made sales on account to members $840, terms n/30. The cost of the merchandise sold was $550

Apr. 21 Paid Eagle Sportswear in full

Apr. 27 Granted an allowance to members for clothing that did not fit properly $60

Apr. 30 Received payments on account from members $1,100

The chart of accounts for the Pro shot includes Cash, Accounts Recievable, Merchandise Inventory, Accounts Payable, Common Stock, Sales, Sales Returns and allowances, and Cost of goods sold.

Instructions: A. Journalize the April transactions using a Perpetual inventory System.

B. Using T accounts, enter the beginning balances in the ledger accounts and post April Transactions.

C. Prepare a trial balance on April 30, 2007

D. Prepare an income statement through gross profit

it also gives for (c) total trial balance of $7,750 and for (d) gross profit $520

Can anyone help please? Thanks

Apr. 5 Purchased golf bags, clubs, and balls on account from Kokott Co. $1,800 terms 3/10, n/60
Dr Merchandise inventory $1800
Cr AP $1800

Apr 7. Paid Freight on Kikott purchase $80
Dr Merchandise inventory $80
Cr Cash $80

Apr. 9 Received Credit from Kokott Co. for merchandise returned $200
Dr AP $200
Cr Merchandise inventory $200

Apr. 10 Sold merchandise on account to members $910, terms n/30. the merchandise sold had a cost of $620
Dr AR $910
Cr Sales $910

Dr COGS $620
Cr Merchandise inventory $620

Apr. 12 Purchased golf shoes, sweaters and other accessories on account from Eagle Sportswear $730, terms 1/10, n/30
Dr Merchandise inventory $730
Cr AP $730

Apr 14 Paid Kokott Co. in full
Dr AP $1600
Cr Merchandise inventory $48
Cr Cash $1552

Apr. 17 Received credit from Eagle sportswear for merchandise returned $30
Dr AP $30
Cr Merchandise inventory $30

Apr 20. Made sales on account to members $840, terms n/30. The cost of the merchandise sold was $550
Dr AR $840
Cr Sales $840

Dr COGS $550
Cr Merchandise inventory $550

Apr. 21 Paid Eagle Sportswear in full
Dr AP $700
Cr Merchandise inventory $7
Cr Cash $693

Apr. 27 Granted an allowance to members for clothing that did not fit properly $60
Dr Sales returns & allowances $60
Cr AR $60

Apr. 30 Received payments on account from members $1,100
Dr Cash $1100
Cr AR $1100

I think this is enough work from me. You should have broken this up into 3 questions.