Mike Palmer, a former professional golf star, operates Mike's Pro Shop at Bay Golf Course. At the
Question:
Mike Palmer, a former professional golf star, operates Mike's Pro Shop at Bay Golf Course. At the beginning of the current season on April 1, the ledger of Mike's Pro Shop showed Cash $2,500, Merchandise Inventory $3,500, and M. Palmer, Capital $6,000. The following trans- actions were completed during April.
The chart of accounts for the pro shop includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Merchandise Inventory, No. 201 Accounts Payable, No. 301 M. Palmer, Capital, 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.
(c) Prepare a trial balance on April 30, 2008.
Step by Step Answer:
Accounting Principles
ISBN: 9780471980193
8th Edition
Authors: Jerry J Weygandt, Donald E Kieso, Paul D Kimmel