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Mike's Pro Shop: Journalize April transactions; RAF Company's partner capital entries

Please see the attached file.

Mike Palmer, a former professional golf star, operates Mike's Pro Shop at Bay Golf
Course. At the beginning of the current season on April 1, the ledger of Mike's Pro Shop
showed Cash $2,500, Merchandise Inventory $3,500, and M. Palmer, Capital $6,000. The
following transactions were completed during April.

Apr 5 Purchased golf bags, clubs, and balls on account from Ramos Co. $1,500, FOB
shipping point, terms 2/10, n/60.
7 Paid freight on Ramos purchase $80.
9 Received credit from Ramos Co. for merchandise returned $100.
10 Sold merchandise on account to members $1,100, terms n/30. The merchandise sold
had a cost of $810.
12 Purchased golf shoes, sweaters, and other accessories on account from Penguin
Sportswear $860, terms 1/10, n/30.
14 Paid Ramos Co. in full, less discount.
17 Received credit from Penguin Sportswear for merchandise returned $60.
20 Made sales on account to members $700, terms n/30. The cost of the merchandise
sold was $490.
21 Paid Penguin Sportswear in full, less discount.
27 Granted an allowance to members for clothing that did not fit properly $40.
30 Received payments on account from members $1,000.

The chart of accounts for the pro shop includes the following: No. 101 Cash, No. 112 Accounts
Receivable, No. 120 Merchandise Inventory, No. 201 Accounts Payable, No. 301 M. Palmer,
Capital, No. 401 Sales, No. 412 Sales Returns and Allowances, No. 505 Cost of Goods Sold.


Solution Preview

Attached is a Word file here that contains the solution to all the problems as indicated in the PDF file.

Part A only
Beginning Inventory
Apr 5 Inventory 1,500
Acct. Payable 1,500

Apr 7 Acct. Payable 80
Cash 80

Apr 9 Sales returns 100
Inventory 100

Apr 10 Acct. Receivable 1100
Sales 1100

COGS 810
Inventory 810

Apr 12 Inventory 860
Acct. Payable 860

Apr 14 Acct. Payable 1,350
Cash 1,350

Apr 17 Sales returns 60
Inventory 60

Apr 20 Acct. Receivable 700
Sales 700

COGS 490
Inventory 490

Apr 21 Acct. Payable 774
Cash 774

Apr 27 Sales returns 40
Cash 40

Apr 30 Cash 1,000
Acct. Receivable 1,000
Part A only
1. Partner Capital Cash
J. Reno 20,000
L. ...

Solution Summary

The solution presents journal entries and reconciliations for a number of companies as listed in the PDF file attached to the problem. Other subjects covered in the problems solved are patents, copyrights, depreciation, ratio analysis, bad dbts, and R&D.