At the beginning of the current season, the ledger of Alpert 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 Nestor Co. $740, terms 3/10, n/30.

6 Paid freight on Nestor Co. purchase $60.

8 Sold merchandise to members $900, terms n/30.

10 Received credit of $40 from Nestor Co. for a racquet that was returned.

11 Purchased tennis shoes from Carbonell Sports for cash $300.

13 Paid Nestor Co. in full.

14 Purchased tennis shirts and shorts from Faraday Sportswear $700, terms 2/10, n/60.

15 Received cash refund of $50 from Carbonell Sports for damaged merchandise that was returned.

17 Paid freight on Faraday Sportswear purchase $30.

18 Sold merchandise to members $1,000, terms n/30.

20 Received $500 in cash from members in settlement of their accounts.

21 Paid Faraday Sportswear in full.

27 Granted an allowance of $25 to members for tennis clothing that did not fi t properly.

30 Received cash payments on account from members $550.

The chart of accounts for the tennis shop includes Cash, Accounts Receivable, Inventory, Accounts Payable, Owner’s Capital, Sales Revenue, Sales Returns and Allowances, Purchases, Purchase Returns and Allowances, Purchase Discounts, and Freight-in.

Instructions

(a) Journalize the April transactions using a periodic inventory system.

(b) Using T accounts, enter the beginning balances in the ledger accounts and post the April transactions.

(c) Prepare a trial balance on April 30, 2012.

(d) Prepare an income statement through gross profit, assuming inventory on hand at April 30 is $2,296.