At the beginning of the current tennis season, on April 1, the general ledger of Grand Slam Tennis Shop showed Cash $8,000; Merchandise Inventory $5,400; Common Shares $6,000; and Retained Earnings $7,400. Grand Slam Tennis Shop uses a perpetual inventory system.

The following transactions occurred in April:

Apr. 2 Purchased racquets and balls from Roberts Inc. for $4,900, terms 2/10, n/30, FOB shipping point

3 The appropriate party paid $120 freight on the purchase from Roberts on April 2.

7 Received credit of $100 from Roberts for a damaged racquet that was returned.

11 Paid Roberts in full.

13 Purchased tennis shoes from Niki Sports Ltd. for $920 cash, FOB shipping point.

16 The appropriate party paid $15 freight on the purchase from Niki on April 13.

17 Purchased supplies for $1,300 cash from Discount Supplies Limited.

18 Received a $110 cash refund from Niki Sports for damaged merchandise that was returned.

20 Sold merchandise to members for $6,800 on account, terms n/30. The cost of the

merchandise was $4,080.

21 Some of the merchandise purchased on April 20, with a sales price of $1,000 and a cost of $600, was returned by members. It was restored to inventory.

23 Sold merchandise to members for $5,600, terms n/30. The cost of the merchandise was $3,360.

25 Received cash payments on account from members, $8,000.

28 Granted a $150 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 $3,600, terms n/45.

Instructions

(a) Prepare T accounts and enter the opening balances.

(b) Record and post the April transactions for Grand Slam Tennis. Round all calculations to the nearest dollar.

(c) Prepare a trial balance as at April 30, 2015.