Post, Freight and Carriers

Financial Accounting Problem?

At the beginning of the current season on April 1, the ledger of Fairway Pro Shop showed Cash $2,500; Merchandise Inventory $3,500; and Common Stock $6,000. The following transactions were completed during April, 2007 Apr. 5 Purchased golf bags, clubs, and balls on account from Kokott Co. $1,800 terms 3/10, n/60 Apr 7. Paid Freight on Kikott purchase $80 Apr. 9 Received Credit from Kokott Co. for merchandise returned $200 Apr. 10 Sold merchandise on account to members $910, terms n/30. the merchandise sold had a cost of $620 Apr. 12 Purchased golf shoes, sweaters and other accessories on account from Eagle Sportswear $730, terms 1/10, n/30 Apr 14 Paid Kokott Co. in full Apr. 17 Received credit from Eagle sportswear for merchandise returned $30 Apr 20. Made sales on account to members $840, terms n/30. The cost of the merchandise sold was $550 Apr. 21 Paid Eagle Sportswear in full Apr. 27 Granted an allowance to members for clothing that did not fit properly $60 Apr. 30 Received payments on account from members $1,100 The chart of accounts for the Pro shot includes Cash, Accounts Recievable, Merchandise Inventory, Accounts Payable, Common Stock, Sales, Sales Returns and allowances, and Cost of goods sold. Instructions: A. Journalize the April transactions using a Perpetual inventory System. B. Using T accounts, enter the beginning balances in the ledger accounts and post April Transactions. C. Prepare a trial balance on April 30, 2007 D. Prepare an income statement through gross profit it also gives for (c) total trial balance of $7,750 and for (d) gross profit $520 Can anyone help please? Thanks

Public Comments

1. Do your homework.