Using T accounts enter the beginning balances in the ledger

Using T accounts, enter the beginning balances in the ledger accounts and post the April transactions. (Post entries in the order of journal entries posted in part a. Round answers to 0 decimal places, e.g. 5,275. For accounts that have a zero balance select \"4/30 Bal.\" from the list and enter 0 for the amount.)

Prepare a trial balance on April 30, 2017.?

Prepare an income statement through gross profit, assuming inventory on hand at April 30 is $4,263.

At the beginning of the current season on April 1, the ledger of Granite Hills Pro Shop showed Cash $2,500; Inventory $3,500; and Common Stock $6,000. The following transactions occurred during April 2017. Apr. 5 Purchased golf bags, clubs, and balls on account from Arnie Co. $1,500, terms 3/10, n/60 7 Paid freight on Arnie Co. purchases $80 9 Received credit from Arnie Co. for merchandise returned $200. 10 Sold merchandise on account to members $1,340, terms n/30. 12 Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $830, terms 1/10, n/30. 14 Paid Arnie Co. in full 17 Received credit from Woods Sportswear for merchandise returned $30. 20 Made sales on account to members $810, terms n/30. 21 Paid Woods Sportswear in full. 27 Granted credit to members for clothing that did not fit properly $80. 30 Received payments on account from members $1,220

Solution

Granite Hills Pro Shop Trial Balance as at April 30 Account Debit Credit Cash 1587 Accounts Receivable 850 Inventory 3500 Accounts Payable 0 Common Stock 6000 Sales Revenue 2150 Sales Returns And Allowances 80 Purchases 2330 Purchase Returns And Allowances 230 Purchase discounts 47 Freight In 80 Cost of Goods Sold Total 8427 8427 Granite Hills Pro Shop Income statement Sales Revenue 6000 Less: Sales Returns and allowances 80 Net Sales 5920 Cost of goods sold Beginning Inventory 3500 Add: Net purchases                  Purchases 2330                   Less: Purchase returns and allowances 230                   Less: Purchase discounts 47 277    Net purchases 2053 Goods available for sale 5553    Less: Ending Inventory 4263 Cost of goods sold 1290 Gross Profit 4630