Emile Kokott, a former disc golf star, operates Emile's Discorama, SA. At the beginning of the current season on April 1, the ledger of Emile's Discorama showed Cash €1,850, Inventory €2,150, and Share Capital-Ordinary €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.
Apr. 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.
21 Paid Penguin Sportswear in full, less discount.
27 Granted an allowance to customers 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 Share Capital-Ordinary, 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, 2017.