1 Journalize the April transactions using a periodic invento

1. Journalize the April transactions using a periodic inventory system. (If no entry is required, select \"No Entry\" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 5,275.)

2. 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.)

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

Problem 5-9A 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 ful 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

1. In the books of Granite Hill Pro Shop:

2. Cash:

Inventory:

Accounts Receivable:

3. Granite Hills Pro Shop

Trial Balance

April 30, 2017

4. Granite Hill Pro Shop

Income Statement

For the month ended April 30, 2017

Date	Account Titles	Debit	Credit
2017		$	$
April 5	Purchase	1,500
	Accounts Payable: Arnie Co.		1,500
April 7	Freight-in	80
	Cash		80
April 9	Accounts Payable: Arnie Co.	200
	Purchase Returns		200
April 10	Accounts Receivable	1,340
	Sales		1,340
April 12	Purchase	830
	Accounts Payable: Woods Sportswear		830
April 14	Accounts Payable: Arnie Co.	1,300
	Purchase Discount		39
	Cash		1,261
April 17	Accounts Payable: Woods Sportswear	30
	Purchase Returns		30
April 20	Accounts Receivable	810
	Sales		810
April 21	Accounts Payable: Woods Sportswear	800
	Purchase Discount		8
	Cash		792
April 27	Sales Returns and Allowances	80
	Accounts Receivable		80
April 30	Cash	1,220
	Accounts Receivable		1,220