J. Zheng, a former professional tennis star, operates Zheng’s Tennis Shop at the Yalong River Resort. At the beginning of the current season, the ledger of Zheng’s Tennis Shop showed Cash ¥2,200, Inventory ¥1,800, and Owner’s Capital ¥4,000. The following transactions were completed during April.

Apr. 4 Purchased racquets and balls from Jay-Mac Ltd. ¥760, FOB shipping point, terms 2/10, n/30.

6 Paid freight on purchase from Jay-Mac ¥40.

8 Sold merchandise to members ¥1,150, terms n/30. The merchandise sold had a cost of ¥790.

10 Received credit of ¥60 from Jay-Mac for a racquet that was returned.

11 Purchased tennis shoes from Li Sports for cash, ¥420.

13 Paid Jay-Mac in full.

14 Purchased tennis shirts and shorts from Everett Sportswear ¥800, FOB shipping point, terms 3/10, n/60.

15 Received cash refund of ¥50 from Li Sports for damaged merchandise that was returned.

17 Paid freight on Everett Sportswear purchase ¥30.

18 Sold merchandise to members ¥980, terms n/30. The cost of the merchandise sold was ¥520.

20 Received ¥600 in cash from members in settlement of their accounts.

21 Paid Everett Sportswear in full.

27 Granted an allowance of ¥40 to members for tennis clothing that did not fi t properly.

30 Received cash payments on account from members, ¥820.

The chart of accounts for the tennis shop includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 311 Owner’s Capital, 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, 2020.