Acc281wk2teamA - Problem 5-4A J. Hafner, a former...

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Problem 5-4A J. Hafner, a former professional tennis star, operates Hafner’s Tennis Shop at the Miller Lake Resort. At the beginning of the current season, the ledger of Hafner’s Tennis Shop showed Cash $2,500, Merchandise Inventory $1,700, and Common Stock $4,200. The following transactions were completed during April. 4-Apr Purchased racquets and balls from Wellman Co. $840, FOB shipping point, terms 2/10, n/30. 6 Paid freight on purchase from Wellman Co. $40. 8 Sold merchandise to members $1,150, terms n/30. The merchandise sold had a cost of $790.00 10 Received credit of $40 from Wellman Co. for a damaged racquet that was returned. 11 Purchased tennis shoes from Venus Sports for cash, $420. 13 Paid Wellman Co. in full. 14 Purchased tennis shirts and shorts from Serena’s Sportswear $900, FOB shipping point, terms 3/10, n/60. 15 Received cash refund of $50 from Venus Sports for damaged merchandise that was returned. 17 Paid freight on Serena’s Sportswear purchase $30. 18 Sold merchandise to members $810, terms n/30.The cost of the merchandise sold was $530.00 20 Received $500 in cash from members in settlement of their accounts. 21 Paid Serena’s Sportswear in full. 27 Granted an allowance of $30 to members for tennis clothing that did not fit properly. 30 Received cash payments on account from members, $660. The chart of accounts for the tennis shop includes the following: No. 101 Cash, No. 112 Accounts Receivable,No. 120 Merchandise Inventory,No. 201 Accounts Payable,No. 311 Common Stock, No. 401 Sales, No. 412 Sales Returns and Allowances, No. 505 Cost of Goods Sold. Instructions (a) Journalize the April transactions using a perpetual inventory system. (b) Enter the beginning balances in the ledger accounts and post the April transactions. (Use J1 for the journal reference.) (c) Prepare a trial balance on April 30, 2008.
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a) General Journal J1 Date Account Titles and Explanation Ref. Debit Credit Apr. 4 Merchandise Inventory 120 840 Accounts Payable 201 840 6 Merchandise Inventory 120 40 Cash 101 40 8 Accounts Receivable 112 1,150 Sales 401 1,150 Cost of Goods Sold 505 790 Merchandise Inventory 120 790 10 Accounts Payable 201 40 Merchandise Inventory 120 40 11 Merchandise Inventory 120 420 Cash 101 420 13 Accounts Payable ($840 - 40) 201 800 Merchandise Inventory ($800 x 2%) 120 16 Cash 101 784 14 Merchandise Inventory 120 900 Accounts Payable 201 900 15 Cash 101 50 Merchandise Inventory 120 50 17 Merchandise Inventory 120 30 Cash 101 30 18 Accounts Receivable 112 810 Sales 401 810 Cost of Goods Sold 505 530 Merchandise Inventory 120 530 20 Cash 101 500 Accounts Receivable 112 500 21 Accounts Payable 201 900 Merchandise Inventory ($900 x 3%) 120 27 Cash 101 873
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27 Sales Returns and Allowances 412 30 Accounts Receivable 112 30 30 Cash 101 660 Accounts Receivable 112 660
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b) Cash No. 101 Date Explanation Ref. Debit Credit Balance Apr. 1 Balance ü 2,500 6 J1 40 2,460
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Acc281wk2teamA - Problem 5-4A J. Hafner, a former...

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