Data for the Thousand Oaks Golf Shop are presented in P5-4A.
In P5-4A
At the beginning of the current golf season, on April 1, 2012, the general ledger of Thousand Oaks Golf Shop showed Cash $3,500; Merchandise Inventory $1,500; Common Shares $3,000; and Retained Earnings $2,000. Thousand Oaks Golf Shop uses a perpetual inventory system.
The following transactions occurred in April:
Apr. 3 Purchased golf bags, clubs, and balls on account from Balata Corp. for $2,700, terms 1/10, n/30, FOB shipping point.
6 Freight of $70 was paid by the appropriate party on the April 3 purchase from Balata.
9 Received a $150 purchase allowance from Balata for returned merchandise.
10 Sold merchandise on account to members for $2,950, terms n/30. The cost of the merchandise sold was $1,770.
12 Paid Balata in full.
14 Received payments on account from members, $1,250.
16 Purchased golf shoes, sweaters, and other accessories on account from Arrow Sportswear Limited for $770, terms 2/10, n/30.
17 Received a $75 credit from Arrow Sportswear for returned merchandise.
20 Sold merchandise on account to members for $1,890, terms n/30. The cost of the merchandise sold was $1,130.
24Paid Arrow Sportswear in full.
27 Granted a $50 sales allowance to a member for soiled clothing. No merchandise was returned.
Instructions
(a) Prepare T accounts and enter the opening balances.
(b) Record and post the April transactions for Thousand Oaks Golf 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 balanceas at April 30, 2012.
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