At the beginning of the current season on April 1, the records of Flounder Pro Shop showed
Question:
At the beginning of the current season on April 1, the records of Flounder Pro Shop showed Cash $2,940, Inventory $3,500, and Common Stock $6,440. The following transactions occurred during April 2017.
Apr. 5 | Purchased golf bags, clubs, and balls on account from Arnie Co. $2,000. | |
9 | Received credit from Arnie Co. for merchandise returned $600. | |
10 | Sold merchandise on account to members $1,390. The merchandise sold had a cost of $750. | |
12 | Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $1,070. | |
14 | Paid Arnie Co. in full. | |
17 | Received credit from Woods Sportswear for merchandise returned $70. | |
20 | Made sales on account to members $930. The cost of merchandise sold was $550. | |
21 | Paid Woods Sportswear in full. | |
30 | Received payments on account from members $1,280. |
Prepare a tabular summary that includes the following accounts: Cash, Accounts Receivable, Inventory, Accounts Payable, Common Stock, Sales Revenue, Sales Returns and Allowances, and Cost of Goods Sold. Enter the beginning balances in the summary, Record the April transactions using a perpetual inventory system. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) and Prepare an income statement through gross profit for the month of April 2017.
Financial and managerial accounting
ISBN: 978-1118016114
1st edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso