1. 2. Prepare a trial balance on April 30, 2017. (Do not list those accounts tha
ID: 2334200 • Letter: 1
Question
1.
2. Prepare a trial balance on April 30, 2017. (Do not list those accounts that have zero ending balance.)
3. Prepare an income statement through gross profit, assuming inventory on hand at April 30 is $ 4,391.
At the beginning of the current season on April 1, the ledger of Granite Hills Pro Shop showed Cash $3,015; Inventory $4,015; and Common Stock $7,030. The following transactions occurred during April 2017. Apr.5 Purchased golf bags, clubs, and balls on account from Arnie Co.$1,545, terms 4/10, n/60. 7 Paid freight on Arnie Co. purchases $82. 9 Received credit from Arnie Co. for merchandise returned $245 10 Sold merchandise on account to members $1,380, terms n/30 12 Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $ 855, terms 1/10, n/30. 14 Paid Arnie Co. in full. 17 Received credit from Woods Sportswear for merchandise returned $ 55. 20 Made sales on account to members$834, terms n/30. 21 Paid Woods Sportswear in full. 27 Granted credit to members for clothing that did not fit properly $ 82. 30 Received payments on account from members $1,257.Explanation / Answer
Using T accounts enter the beginning balances in the ledger accounts and post the April Transactions Cash Date Transactions Debit Date Transactions Credit 1-Apr-17 Op Balance $3,015 14-Apr-17 Accounts Payable $1,326.72 30-Apr-17 Accounts Receivable $1,257 21-Apr-17 Accounts Payable $792 30-Apr-17 Balance $2,153.28 Accounts Receivable Date Transactions Debit Date Transactions Credit 10-Apr-17 Sales $1,380 27-Apr-17 Sales return and allowances $82 20-Apr-17 Sales $834 30-Apr-17 Cash $1,257 30-Apr-17 Balance $875.00 Inventory Date Transactions Debit Date Transactions Credit 1-Apr-17 Op Bal $4,015 30-Apr-17 Balance $4,015 Accounts Payable Date Transactions Debit Date Transactions Credit 9-Apr-17 Purchases returns and allowances $245 5-Apr-17 Purchases $1,545 14-Apr-17 Cash $1,326.72 7-Apr-17 Freight In $82 14-Apr-17 Purchases Discounts $55.28 12-Apr-17 Purchases $855 17-Apr-17 Purchases returns and allowances $55 21-Apr-17 Cash $792 21-Apr-17 Purchases Discounts $8 30-Apr-17 Balance $0 Common Stock Date Transactions Debit Date Transactions Credit 1-Apr-17 Op Bal $7,030 30-Apr-17 Ending Bal $7,030 Sales Revenue Date Transactions Debit Date Transactions Credit 10-Apr-17 Accounts Receivable $1,380 20-Apr-17 Accounts Receivable $834 30-Apr-17 Ending Bal $2,214 Sales Returns and Allowances Date Transactions Debit Date Transactions Credit 27-Apr-17 Accounts Receivable $82 30-Apr-17 Ending Bal $82 Purchases Date Transactions Debit Date Transactions Credit 5-Apr-17 Accounts Payable $1,545 12-Apr-17 Accounts Payable $855 30-Apr-17 Balance $2,400 Purchases Returns and Allowances Date Transactions Debit Date Transactions Credit 9-Apr-17 Accounts Payable $245 17-Apr-17 Accounts Payable $55 30-Apr-17 Balance $300 Purchases Discounts Date Transactions Debit Date Transactions Credit 14-Apr-17 Accounts Payable $55.28 21-Apr-17 Accounts Payable $8 30-Apr-17 Balance $63.28 Freight - In Date Transactions Debit Date Transactions Credit 7-Apr-17 Accounts Payable $82 30-Apr-17 Balance $82 GRANITE HILL PRO SHOP TRIAL BALANCE AS OF 30TH APRIL 2017 Debit Credit Cash $2,153.28 Accounts Receivable $875 Merchandise Inventory $4,015 Common Stock $7,030 Sales $2,214 Sales Returns and Allowances $82 Purchases $2,400 Purchases Returns and Allowances $300 Purchases Discounts $63.28 Freight In $82 Total $9,607.28 $9,607.28 GRANITE HILL PRO SHOP PROFIT AND LOSS FOR THE YEAR ENDED 30TH APRIL 2017 Sales $2,214 Less : Sales Returns and allowances $82 Net Sales $2,132 Less : Cost of Goods Sold Inventory, April 1 $4,015 Purchases $2,400 Less : Purchases Returns and allowances ($300) Purchases Discounts ($63.28) Freight In $82 $2,118.72 Goods Available for Sale $6,133.72 Less : Closing Inventory $4,391 $1,742.72 Gross Profit $389.28
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