Instructions:

(a) Journalize the April transactions using a periodic inventory system in the general journal

found on the next page. Include transaction date, account title, and account reference number.

(b) Enter beginning balances presented below in the appropriate T accounts and thereafter post all April

transactions in T-accounts found after the general journal.

(c) Prepare a trial balance on April 30, 2017 (using space found after T accounts).

(d) Prepare an Income Statement through Gross Profit assuming inventory on hand at April 30 is

2,140.

COMPANY INFO:

At the beginning of the current season, the ledger of Dallas Tennis Shop AG showed Cash 2,500, Inventory 1,700, and Share Capital-Ordinary 4,200. The following transactions were completed during April.

April transactions:

4 Purchased racquets and balls from Hingis Co. 860, terms 3/10, n/30.

6 Paid freight on Hingis Co. purchase 74.

8 Sold merchandise to members 900, terms n/30.

10 Received credit of 60 from Hingis Co. for a racquet that was returned.

11 Purchased tennis shoes from Volker Sports for cash 300.

13 Paid Hingis Co. in full.

14 Purchased tennis shirts and shorts from Linzey Sportswear 700, terms 2/10, n/60.

15 Received cash refund of 90 from Volker Sports for damaged merchandise that was returned.

17 Paid freight on Linzey Sportswear purchase 25.

18 Sold merchandise to members 1,200, terms n/30.

20 Received 500 in cash from members in settlement of their accounts.

21 Paid Linzey Sportswear in full.

27 Granted an allowance of 25 to members for tennis clothing that did not fit properly.

30 Received cash payments on account from members 630.

GENERAL JOURNAL
APR	Account Title	Ref	Debit	Credit

T-Accounts
CASH #101				ACCOUNTS PAYABLE #211			SALES REVENUE #411			PURCHASES #437
							SALES RETURNS & ALLOWANCES #423			PURCHASE RETURNS & ALLOWANCES #448
ACCOUNTS RECEIVABLE 112				SHARE CAPITAL- ORDINARY #311			SALES DISCOUNTS #425			PURCHASE DISCOUNTS #452
INVENTORY #123										FREIGHT-IN #465

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DALLAS TENNIS SHOP, AG Trial Balance April 30, 2017
		Debit		Credit
Cash .
Accounts Receivable ..
Inventory .
Share Capital-Ordinary .
Sales Revenue ..
Sales Returns and Allowances .
Purchases .
Purchases Returns & Allowances .
Purchase Discounts .
Freight-In .

Use following template to prepare an Income Statement through Gross Profit

DALLAS TENNIS SHOP, AG

Income Statement

For the Month Ended April 30, 2017