Beginning balances in the ledger accounts

Assignment Help Financial Accounting

Reference no: EM1314200

Merchandise Accounting

At the beginning of the current season on April 1, the ledger of Four Oaks Pro Shop showed Cash $2,500; Merchandise Inventory $3,500; and Common Stock $6,000. These transactions occurred during April 2008.

April 5	Purchased golf bags, clubs, and balls on account from Hardee Co. $2,200, FOB shipping point, terms 2/10, n/60.
7	Paid freight on Hardee Co. purchases $80.
9	Received credit from Hardee Co. for merchandise returned $200.
10	Sold merchandise on account to members $950, terms n/30.
12	Purchased golf shoes, sweaters, and other accessories on account from Arrow Sportswear $460, terms 1/10, n/30.
14	Paid Hardee Co. in full.
17	Received credit from Arrow Sportswear for merchandise returned $60.
20	Made sales on account to members $1,000, terms n/30.
21	Paid Arrow Sportswear in full.
27	Granted credit to members for clothing that did not fit properly $75.
30	Received payments on account from members $1,100.

The chart of accounts for the pro shop includes Cash; Accounts Receivable; Merchandise Inventory; Accounts Payable; Common Stock; Sales; Sales Returns and Allowances; Purchases; Purchase Returns and Allowances; Purchase Discounts, and Freight-in.

Instructions:
(a) Using T accounts enter the beginning balances in the ledger accounts and post the April transactions.
Note: ( c ) Tot. trial balance $8,254. Gross profit $463

Reference no: EM1314200

Questions Cloud

Computation of operating cash flows : Computation of operating cash flows using givien detials for the year 2006 and using 2005 and 2006 Balance Sheet

Prepare an income statement through gross profit : Prepare an income statement through gross profit, assuming merchandise inventory on hand at April 30 is $4,524. and Tot. trial balance $8,254.

Prepare a trial balance on april 30 : Prepare a trial balance on April 30, 2008 and Tot. trial balance $8,254 - Merchandise Accounting

The equilibrium price and quantity : The equilibrium price and quantity.

Beginning balances in the ledger accounts : Using T accounts enter the beginning balances in the ledger accounts and post the April transactions and Tot. trial balance $8,254. Gross profit $463

Record the journal entries-transaction using the net method : Record the journal entries related to this transaction using the net method of recording purchases and Which method do you prefer? Why?

Algebra equation : Algebra equation

Prepare a bank reconciliation going from balance : Prepare a bank reconciliation going from balance per bank and balance per book to correct cash balance and Prepare the general journal entry or entries to correct the Cash account

Computation of project''s apv : Computation of project's APV with principal repaid in a lump sum at the end of the fifth year

User Account

All Pages