J. Hafner, a former professional tennis star, operates Hafner's Tennis Shop at the Miller Lake Resort. At
Question:
J. Hafner, a former professional tennis star, operates Hafner's Tennis Shop at the Miller Lake Resort. At the beginning of the current season, the ledger of Hafner's Tennis Shop showed Cash \($2,500\), Merchandise Inventory \($1,700\), and J. Hafner, Capital \($4,200\). The following transac- tions were completed during April.
The chart of accounts for the tennis shop includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Merchandise Inventory, No. 201 Accounts Payable, No. 301 J. Hafner, Capital, 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.
Step by Step Answer:
Accounting Principles
ISBN: 9780471980193
8th Edition
Authors: Jerry J Weygandt, Donald E Kieso, Paul D Kimmel