Question

At the beginning of the current season on April 1, the ledger of Sandhill Pro Shop showed Cash $2,950; Inventory $3,500; and Common Stock $3,450. The following transactions were completed during April 2022.

Apr. 5		Purchased golf bags, clubs, and balls on account from Arnie Co. $2,500, terms 2/10, n/60.
7		Paid freight on Arnie purchase $80.
9		Received credit from Arnie Co. for merchandise returned $700.
10		Sold merchandise on account to members $1,340, terms n/30. The merchandise sold had a cost of $920.
12		Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $1,050, terms 2/10, n/30.
14		Paid Arnie Co. in full.
17		Received credit from Woods Sportswear for merchandise returned $50.
20		Made sales on account to members $910, terms n/30. The cost of the merchandise sold was $550.
21		Paid Woods Sportswear in full.
27		Granted an allowance to members for clothing that did not fit properly $70.
30		Received payments on account from members $1,400.

Prepare an income statement through gross profit for the month of April 2022.

SANDHILL PRO SHOP Income Statement (Partial) choose the accounting period
		$enter a dollar amount
select between addition and deduction                                                                      AddLess: enter an income statement item		enter a dollar amount
		enter a total amount for section one
enter an income statement item		enter a dollar amount
		$enter a total amount for this part

Answer 1

Prepare an income statement through gross profit for the month of April 2022.

SANDHILL PRO SHOP
Income Statement (Partial)
For the month ended April 30,2022

Sales (1340+910)	2250
Less: Sales return and allowance	-70
Net Sales	2180
Less: Cost of goods sold	-1470
Gross profit	710