Data for Kicked-Back Tennis Shop are presented in P5-4B.
In P5-4B
At the beginning of the current tennis season, on April 1, 2012, the general ledger of Kicked-Back Tennis Shop showed Cash $4,000; Merchandise Inventory $2,700; Common Shares $3,000; and Retained Earnings $3,700. Kicked-Back Tennis Shop uses a perpetual inventory system.
The following transactions occurred in April:
Apr. 2 Purchased racquets and balls from Roberts Inc. for $2,460, terms 2/10, n/30, FOB shipping point.
3 The appropriate party paid $60 freight on the purchase from Roberts on April 2.
7 Received credit of $55 from Roberts for a damaged racquet that was returned.
11 Paid Roberts in full.
13 Purchased tennis shoes from Niki Sports Ltd. for $460 cash, FOB shipping point.
16 The appropriate party paid $12 freight on the purchase from Niki on April 13.
17 Purchased supplies for $650 cash from Discount Supplies Limited.
18 Received a $55 cash refund from Niki Sports for damaged merchandise that was returned.
20 Sold merchandise to members for $3,400 on account, terms n/30. The cost of the merchandise was $2,040.
21 Some of the merchandise purchased on April 20, with a sales price of $500 and a cost of $300, was returned by members. It was restored to inventory.
23 Sold merchandise to members for $2,800, terms n/30. The cost of the merchandise was $1,680.
25 Received cash payments on account from members, $4,000.
28 Granted a $75 sales allowance on account to a member for slightly torn tennis clothing. No merchandise was returned.
30 Purchased equipment for use in the business from DomCo Ltd. for $1,800, terms n/30.
Instructions
(a) Prepare T accounts and enter the opening balances.
(b) Record and post the April transactions for Kicked-Back Tennis Shop, assuming it uses a periodic inventory system instead of a perpetual inventory system. Round all calculations to the nearest dollar.
(c) Prepare a trial balance as at April 30, 2012.
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