Bill Kokott, a former disc golf star, operates Bill's Discorama. At the beginning of the current season on April 1, the ledger of Bill's Discorama showed Cash $1,850, Inventory $2,150, and Common Stock $4,000. The following transactions were completed during April.

Apr. 5 Purchased golf discs, bags, and other inventory on account from Ellis Co. $1,200, FOB shipping point, terms 2/10, n/60.

7 Paid freight on the Ellis purchase $75.

9 Received credit from Ellis Co. for merchandise returned $100.

10 Sold merchandise on account for $930, terms n/30. The merchandise sold had a cost of $540.

12 Purchased disc golf shirts and other accessories on account from Penguin Sportswear $720, terms 1/10, n/30.

14 Paid Ellis Co. in full, less discount.

17 Received credit from Penguin Sportswear for merchandise returned $120.

20 Made sales on account for $610, terms n/30. The cost of the merchandise sold was $370.

Apr. 21 Paid Penguin Sportswear in full, less discount.

27 Granted an allowance to members for clothing that was fl awed $20.

30 Received payments on account from customers $960.

The chart of accounts for the store includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 311 Common Stock, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, and 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, 2014.