19 IX. Exercise Practice 1. Barone's Repair Shop was started on May 1 by Nancy Barone. A summary of May transactions is presented below. 1. Invested $10,000 cash to start the repair shop. 2. Purchased equipment for $5,000 cash. 3. Paid $400 cash for May office rent. 4. Paid $500 cash for supplies. 5. Incurred $250 of advertising costs in the Beacon News on account. 6. Received $5,100 in cash from customers for repair service. 7. Withdrew $1,000 cash for personal use. 8. Paid part-time employee salaries $2,000. 9. Paid utility bills $140. 10. Provided repair service on account to customers $750. 11. Collected cash of $120 for services billed in transaction (10). Instructions a. Prepared General Journal. b. Prepared General Ledger. c. Prepared Trial Balance d. Prepared Financial Statement - Income Statement - Statement of change of owner's equity Balance Sheet - Statement of cash flow Problem1: At the beginning of the current season on April 1, the ledger of Five Pines Pro Shop showed Cash $3,000; Merchandise Inventory $4,000; and Irene Tiger, Capital $7,000.These transactions occurred during April 2008. Apr. 5 Purchased golf bags, clubs, and balls on account from Mickelson Co. $1,200,FOB shipping point, terms 2/10, n/60. 7- Paid freight on Mickelson Co. purchases $50. 9- Received credit from Mickelson Co. for merchandise returned $100. 10- Sold merchandise on account to members $600, terms n/30. 12- Purchased golf shoes, sweaters, and other accessories on account from DaggerSportswear $340, terms 1/10, n/30. 14- Paid Mickelson Co. in full. 17- Received credit from Dagger Sportswear for merchandise returned $40. 20- Made sales on account to members $600, terms n/30. 21- Paid Dagger Sportswear in full. 27- Granted credit to members for clothing that had flaws $35. 30- Received payments on account from members $650. The chart of accounts for the pro shop includes Cash; Accounts Receivable, Merchandise Inventory; Accounts Payable; Irene Tiger, Capital; Sales; Sales Returns and Allowances; Purchases; Purchase Returns and Allowances; Purchase Discounts, and Freight-in. Instructions (a) Journalize the April transactions using a periodic inventory system. (b) Using T accounts, enter the beginning balances in the ledger accounts and post the April transactions. (c) Prepare a trial balance on April 30, 2008. (d) Prepare an income statement through gross profit, assuming merchandise inventory on hand at April 30 is $4,726. ha heginning of the current season.