Question

create t accounts and a partial income statement using the following info:
At the beginning of the current season on April 1. the edge of Cullumber Pro Shop showed Cash $3.065, Inventory $4.065 and Common Stock 57,130. The following transactions occurred during April 2022 Apr. 5 Purchased golf bags.clubs and balls on account from Arnie Co. $1.695. terms 3/10.60 7 Paid freighton Arnie Co purchases $90 Received credit from Arnie Co for merchandise returned $395. 10 Sold merchandise on account to members 51.514, terms/30 12 Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $933, terms 2/10,30 14 Paid Arnie Coin 17 Received credit from Woods Sportswear for merchandise returned $138. 20 Made sales on count to members $915 terms 21 Paid Woods Sportswear 27 Granted credit to members for clothing that did not fit properly 590 30 Received payments on count from members $1.379

Answer 1

T-accounts

Cash:-

Date	Details	Amount($)	Date	Details	Amount($)
1-Apr.	Balance	3065	7-Apr.	Freight in	90
30-Apr.	Account receivable	1379	14-Apr.	Account payable	1261
			21-Apr.	Account payable	784
			30-Apr.	Balance	2309
		4444			4444

Note :- 14 April = 1695-395=1300*3%=39

1300-39=1261

21 April = 938-138=800*2%=16

800-16=784

Inventory account:-

Date	Details	Amount ($)	Date	Details	Amount ($)
1-apr.	Balance	4065	30-apr.	Revenue	4065
		4065			4065

Common stock:-

Date	Details	Amount ($)	Date	Details	Amount ($)
30-apr.	Balance	7130	1-apr.	Balance	7130
		7130			7130

Purchase account:-

Date	Details	Amount ($)	Date	Details	Amount ($)
5-apr.	Account payable	1695
12-apr.	Account payable	938	30-apr.	Balance	2633
		2633			2633

Account payable:-

Date	Details	Amount ($)	Date	Details	Amount ($)
9-apr.	Purchase return	395	5-apr.	Purchase	1695
14-apr.	Purchase discount	39	12-apr	purchase	938
14-apr.	Cash	1261
17-apr.	Purchase return	138
21-apr	purchase discount	16
21-apr.	Cash	784
		2633			2633

Freight account:-

Date	Details	Amount ($)	Date	Details	Amount ($)
7-apr.	Cash	90	7-apr.	Balance	90
		90			90

Purchase return:-

Date	Details	Amount ($)	Date	Details	Amount ($)
			9-apr	Account payable	395
30-apr.	Balance	533	17-apr	Account payable	138
		533			533

Account receivables:-

Date	Details	Amount ($)	Date	Details	Amount ($)
10-apr.	Sales revenue	1514	27-apr.	Sales return	90
20-apr.	Sales revenue	915	30-apr	Cash	1379
			30-apr.	Balance	960
		2429			2429

Sales Revenue :-

Date	Details	Amount ($)	Date	Details	Amount ($)
			10-apr.	Account receivable	1514
30-apr.	Balance	2429	20-apr.	Account receivable	915
		2429			2429

Purchase discount:-

Date	Details	Amount ($)	Date	Details	Amount ($)
			14-apr.	Account payable	39
30-apr.	Balance	55	21-apr.	Account payable	16
		55			55

Sales return:-

Date	Details	Amount ($)	Date	Details	Amount ($)
27-apr.	Account receivable	90	30-apr.	Balance	90
		90			90