80.2K

Verified Solution

Link Copied!

At the beginning of the current season on April 1, the records of Sheffield Pro Shop showed Cash $3,070, Inventory $3,500, and Common Stock $6,570. The following transactions occurred during April 2017.

Apr. 5		Purchased golf bags, clubs, and balls on account from Arnie Co. $2,600.
9		Received credit from Arnie Co. for merchandise returned $300.
10		Sold merchandise on account to members $1,440. The merchandise sold had a cost of $810.
12		Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $970.
14		Paid Arnie Co. in full.
17		Received credit from Woods Sportswear for merchandise returned $70.
20		Made sales on account to members $850. The cost of merchandise sold was $550.
21		Paid Woods Sportswear in full.
30		Received payments on account from members $1,470.

Prepare a tabular summary that includes the following accounts: Cash, Accounts Receivable, Inventory, Accounts Payable, Common Stock, Sales Revenue, Sales Returns and Allowances, and Cost of Goods Sold. Enter the beginning balances in the summary.

Assets

=

Liabilities

+

Stockholders' Equity

Retained Earnings

Cash

+

Accts. Rec.

+

Inv.

=

Accts. Pay.

+

Common Stock

+

Rev.

-

Exp.

Bal.

Apr.

1

$

$

$

$

$

$

$

Answer & Explanation Solved by verified expert

See Answer