J. Li, a former professional tennis star, operates Li’s Tennis Shop at the Yellow River Resort. At the beginning of the current season, the ledger of Li’s Tennis Shop showed Cash Y2.500. Merchandise Inventory Y1,700 and Share Capital-Ordinary Y4,200. The following transactions were completed during April.

Apr. 4 Purchased racquets and halls from Wellman Co. Y840. FOB shipping point, terms 2/10. n/30.

6 Paid freight on purchase from Wellman Co. Y40.

8 Sold merchandise to members Y1,150, terms n/30. The merchandise sold had a cost of Y790).

10 Received credit of Y40 from Wellman Co. for a racquet that was returned.

11 Purchased tennis shoes from Venus Sports for cash, Y420.

13 Paid Wellman Co. in full.

14 Purchased tennis shirts and shorts from Serena’s Sportswear Y900. FOB shipping point, terms 3/10, n/60.

15 Received cash refund of Y50 from Venus Sports for damaged merchandise that was returned.

17 Paid freight on Serena’s Sportswear purchase Y30.

18 Sold merchandise to members Y810, terms n/30. The cost of the merchandise sold was Y530.

20 Received Y500 in cash from members in settlement of their accounts.

21 Paid Serena’s Sportswear in full.

27 Granted an allowance of 30 to members for tennis clothing that did not fit properly.

30 Received cash payments on account from members, Y660.

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.311 Share Capital— Ordinary, 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 JI for the journal reference.)

(c) Prepare a trial balance on April 30.2011.