KMC-ALT Clothes (PERPETUAL)

Using a two-column journal, journalize the following transactions

of KMC-ALT for the month of NOVEMBER:

Nov. 1 Resha Coreza, owner, invested P350,000 cash.

2 Paid rent for the month in cash P4,500.
2 Sold merchandise to The Cloth Store, P8,500, terms: 2/5.
Costing, P1,050
3 Purchased merchandise, P42,000 from FH store, terms: 2/10,
n/30.
6 Issued check to Grand Clothing Line for merchandise purchased,
P18,000, less trade discount of 10%.
7 Purchased merchandise for cash P50,000, F.O.B destination point,
paid freight P1,500
8 Gave a credit memo for P700 to The Cloth Store covering the value
of the merchandise they returned due to wrong size.
8 Purchased merchandise from Kenzo wear, P30,000, on account.
10 Purchased office table and chairs from OutofTheWoods Inc. P6,000,
terms: 2/15, n/30.
11 11 Sold merchandise to Collection Clothy, P28,000, terms:
10/15, n/30. With a cost of P10,000
11 Paid the freight on the above sales, P4,350
13 Paid the account in Nov. 3 within the cash discount period.
14 Complained to OutofTheWoods Inc. on account of some paint
damage on the chairs during the delivery. A credit memo for P500
was received.
14 Collection sales from Nov 2
15 Paid the salary of the employees and sales ladies for the first half
 of the month, P5,000
16 Issued a check for the telephone bill for the month, P900.
17 Purchased merchandise from Shirty-Shorty Company, P18,000 on
credit; terms: 2/10, n/30.
18 Colllection Clothy sent their check by mail, in full settlement of
their account
19 Purchased merchandise from ThreadWorld (Phils. Inc.,) P15,000
giving a check for P5,000 balance, 2/10, n/30.
21 Cash sales, P280,000. Costing, P50,000
22 Purchased merchandise on credit, P30,000, terms 2/5
23 Received a credit memo for P2,000 from Shirty-Shorty Co. for
merchandise returned.
24 24 Paid for the merchandise purchased on Nov. 22.
25 Paid OutOfTheWoods, Inc. in full by issuing a check.
27 Resha Coreza withdrew from the business P3,000, P1,000 of which
is in the form of merchandise at cost.
27 Issued a check to Shirty-Shorty Company in full of account.
28 Cash, sales P3200. With a cost of P1,000
29 Issued a check to Threadworld (Phils) Inc., in full of account.
30 Cash, sales P2500. Costing, P800
30 Paid the salary of the employees and salesladies for the second
half of the month, P5,000.
30 Physical inventory count amounted to P20,000

Suggested Accounts:
Cash,Accounts Receivable,Merchandise Inventory, Officce furniture and
Fixtures,Accounts Payable,Resha Coreza, Capital, Resha Coreza,
Drawings,Sales,Sales Discount,Sales Returns and allowances ,Cost of
good sold, Salaries Expense, Rent Expense, Telephone and
telegram,freight out
Cayea Mo Trading Company

Cayea Trading's Accounts for transactions recording are as

follows:

Cash,Accounts Receivable,Merchandise Inventory, Office

supplies,Office Equipment, Furniture and fixtures, Accounts Payable,
Bank Loan, Cayea, Capital, Cayea, Drawings, Sales, Costgood sold,
Sales Returns and allowances, Sales Discount, Purchases, Purchase
returns and allowances, Purchase Discounts, Freight In, Salaries
Expensse, Rent Expense,Advertising Expense, Freight Out

Cayea Trading uses the following accounts in the preparation of

trial balance:

Cash,Accounts Receivable,Merchandise Inventory, supplies,Equipment,

Furniture and fixtures, Accounts Payable, Loan Payable, Cayea,
Capital, Cayea, Drawings, Sales, Costgood sold, Sales Returns, Sales
Discount, Purchases, Purchase returns , Purchase Discounts, Freight
In, Salaries Expensse, Rent Expense, Advertising Expense Freight Out

The following are transactions of Cayea Mo Trading Company

owned and operated by Ms. Cayea Mo for the month of
September 2018, using perpetual inventory method.

Sept. 1 Ms. Cayea Mo invested P150,000 cash in trading firm as

Cayea Trading
2 Bought store furniture for P20,000 from Anna Furniture.
Terms 3/10, n/30
 3 Purchased merchandise for P25,000 from Keita Merchandising
Company. Terms 2/10
4 Sold merchandise for P10,000 to Mei Clara. Terms 3/10 n/30
5 Sold merchandise for P55,000 to various customer for cash.
Cost of Merchandise sold is P20,000
6 Bought office supplies for P2,000. Terms 2/5, n/30
7 Received credit of P1,500 from Keita Merchandising as
allowance for slight defects on merchandise items bought.
8 Sold merchandise for P34,000 to various customer for cash.
Cost of Merchandise sold is P20,000
9 Purchased merchandise for P25,000 from Jo Company.
Terms: 10% down payment, balance 2/10, n/30
10 Paid Keita Merchandising in full of account
11 Paid salaries to employees P2,000
12 Paid the rent for September, P5,000
13 Sold merchandise for P23,000 to Primo Ford, costing
P10,000. Terms 3/10, n/30
14 Collected full account of Mei Clara
15 Paid Anna Furniture in full of account
16 Purchased merchandise for P20,000 from Loudie Commercial.
Terms 1/10, n/30
17 Ms. Cayea Mo withdrew cash for personal use, P1,000
18 Cash Sales, P12,500
19 Paid refund for the defective merchandise sold for cash, P500
20 Full collection of customer Primo Ford
21 Paid Advertising Expense, P3,000
22 Sold merchandise for P44,500 to Rina Kaye. Terms 1/5, n/30
23 Paid Freight for the sold merchandise to Rina Kaye, P1,500
24 Acquired office equipment for cash P25,500
25 Borrowed from MPR Bank P100,000 issuing a 60 day, 10%
note
26 Made refund to cash customer for P1,000
27 . Purchased merchandise on account from Dao Trading,
P40,000. Terms: 2/5, n/30
28 Paid Freight for merchandise purchased with Dao Trading,
P2,000
29 Cash Sales, P22,000
30 Partial payment of P20,000 to Dao Trading. No partial
payment discount
Weasley Wheeze's Trading

Weasley Wheeze’s Trading uses a periodic inventory system. Presented

below are series of transactions for Weasley Wheeze’s Trading for the month
of September. Credit sales terms are 2/10, n/30.

Sept. 1 Ms. Weasley invested to the business the following; cash

amounting P100,000 and office equipment amountingP20,000.
2 Sell inventory on credit to Fleur Décor P4,100 invoice no. 123 and to
Bill Sky P1,800 invoice no. 124.
3 Purchase inventory from Dow B. amounting P5,200 terms n/30.
5 Sell inventory for cash, P2,000.
7 Paid freight on inventory purchased P235.
8 Purchase inventory from Diggory for cash P19,710.
9 Issue credit memo for P300 to Bill Sky for inventory returned.
10 Summary daily cash sales total P15,500.
11 Sell inventory on account to Hog Heads P520 invoice no. 125.
11 Sell inventory on account to H.Potter P900 invoice no. 126.
12 Pay rent of P1,000 for September.
12 Receive payment in full from Fleur Décor and Bill Sky less
discounts.
14 Withdraw P800 cash by Ms. Weasley for personal use.
15 Paid P5,000 for utility bill.
16 Purchase inventory from Ne Ville P16,000 terms 1/10, n/30 and
from Hag Rid P14,200 terms 2/10, n/30.
16 Purchase inventory from Malfoy P1,500 terms n/30.
17 Pay P400 cash for office supplies.
18 Return P200 inventory to Hag Rid and receive credit.
19 Summary daily cash sales total P18,100.
 20 Issued 30-day, 4% note to Helena H. for inventory purchased
amounting to P15,000.
21 Receive payment in full from H.Potter less discount.
22 Sell inventory on credit to Severus S. P2,700 , invoice no. 127.
22 Sell inventory on credit to Luna L. P800 , invoice no. 128.
23 Full payment on Ne Ville and Hag Rid accounts less discounts.
24 Sell inventory on credit to Hermione V. P3,500 , invoice no. 129.
24 Sell inventory on account to Ronald V. P6,100 , invoice no. 130.
25 Purchase inventory from Dow B. P14,500 terms 1/10; S.Black
P1,200 terms n/30; and Hag Rid P5,400 terms n/30.
27 Pay P200 cash for office supplies.
27 Summary daily cash sales total P21,300.
28 Purchase inventory from Diagonal Alley P100,000 terms 2/10,
n/30.
28 Return P50,000 of defective inventory from Diagonal Alley.
30 Pay P7,100 cash for office salaries.
30 Physical count of merchandise inventory end, P40,685.
Suggested accounts: Cash, Accounts Receivables, Office Supplies, Office
Equipment, Accounts Payable, Notes Payable, Ms. Weasley,Capital , Ms.
Weasley, Drawing , Sales, Sales Discount, Sales Returns and Allowances,
Office Salaries Expense, Utility Expense, Rent Expense, Cost of Sales

Source:
The National Teachers College
Main Library
Principles of Accounting (2nd Edition)
Weygandt, Chalmers, Mitrione, Yuen, Fyfe, Kieso, Kimmel
657 P93o 2010
Pages 325-326
 CPACE TRADING
Using a two-column journal, journalize the May transaction of CPACE
Trading, a retail store owned by Ace.

May
1 Purchased merchandise from Bonifacio Trading Co.,
P5,500, terms: 2/5, n/30.

2 Purchased a typewriter and an adding machine from

Automatic Center for cash, P25,000.

3 Complained to Automatic Center due to some minor

defects on the typewriter. A refund of P1,000 was received.

6 Purchased merchandise from Daisy Merchandising,

P22,000, terms: 2/10, n/30.
7 Paid the rent for the month to LLB Realty, P4,500.

7 Ace withdrew from the business merchandise costing

P800, for his personal use.
8 Purchased merchandise from Cuenca & Sons and gave a 60-
day, 6% note, P3,500.

9 Paid the account with Bonifacio Trading Co. in full.

10 Refunded C. Masipag P250 for the merchandise he returned.

11 Coronel Supply Co. sent a bill for P450 for the supplies
purchase d on credit.
13 Sold merchandise to D. Tanglaw on account, P3,500, terms:
2/10, n/30; costing 2, 000.
14 Paid Daisy Merchandising in full. 95
14 Purchased merchandise worth, P25,000 from Makulay
Corporation, paying P5,000 cash, balance 2/10, n/30.
15 Paid the freight on the merchandise purchased, P1,250.
16 Sold merchandise to Jennie Faire on account, P4,800 with a cost of 3,
500.
17 Cash Sales, P97,900 with a cost of 15, 000.
18 Paid the freight on shipment for above sales, P3,450.
18 Received a 60-day, 6% note from Jennie Faire in full settlement
of her account.
21 Purchased merchandise on credit from Bonifacio Trading Co.,
P16,110.
22 Collected the account of D. Tanglaw in full.
22 Returned damaged merchandise to Bonifacio Trading Cp., worth
P580. A credit memo for the same amount was received. 23 Paid the
account with Bonifacio Trading Co., to apply on account, P1,000.
24 Paid the bill of Coronel Supply Co. dated May 11.
25 Bought a delivery panel from Universal Motors, P200,000, terms: 50%
down, balance 2/5, n/15.
28 Paid the account with Bonifacio Trading Co. in full.
28 Paid light and water bills for the month, P1,280.
29 Emilio Lim increased his investment in cash, P150,000.
30 Paid the account with Universal Motors in full.
30 Gave a 30-day, 6% note to Makulay Corporation in settlement of the
amount due them. 96
30 Paid salaries for the second half of the month, P8,000.
31 The physical inventory is counted as 12, 500.
The chart of account showed:
Cash/Accounts Receivable/Notes Receivable/Delivery Equipment/Office
Equipment/Accounts Payable/Notes Payable/Ace, Capital/Ace, Drawing/Sales/Sales
Discount/Sales Returns & Allowances/Purchases/Purchase Discount/Purchase Returns
& Allowances/Freight In/Rent Expense/Office Supplies Expense/Salaries
Expense/Freight Out/Light and Water Expenses

National Library of the Philippines

Basic Accounting Part 1 SINGLE PROPRIETORSHIP
G. V. Lising, JR. - Professor of Accounting & CPA Reviewer 1990 V.1 ; P. 1 Fil 657
076 Vol. 1 L687b

H. Page 138
 Chart of Accounts
ASSETS
Cash
Accounts Receivable
Merchandise Inventory
Store Furniture & Fixtures
Accumulated Depreciation - F&F
Office Furniture & Equipment
Accumulated Depreciation - F&E
LIABILITIES
Accounts Payable
Notes Payable
CAPITAL
Drian, Capital
Drian, Drawings
REVENUE
Sales
Sales Discount
Sales Returns & Allowances
EXPENSE
Cost of good sold
Rent Expense
Wages Expense
Utilities Expense
Advertising Expense
Miscellaneous Expense
SHEMBOT COMMERCIAL. This is a trading firm organized a year ago by Mr. Adrian Lester
Villesis for a wholesale grocery and fruit business. The books used are two-column general
journlas and a general ledger. A trial balace prepared on October 1, 2005 is shown below :

Shembot Commercial
Trial Balance
October 1, 2005

Cash on hand ₱4, 750

Accounts Receivable 5, 080
Merchandise Inventory 6, 245
Store Furniture & Equipment 7, 500
Accu. Dep., Store Furniture & Equipment ₱2, 400
Office Furniture & Equipment 4, 500
Accu. Dep., Office Furniture & Equipment 1, 000
Accounts Payable 10, 285
Notes Payable 5, 000
Drian, Capital 9, 390

₱28, 075 ₱28, 075

The transaction for the month of October are given below :
Oct
1 Purchased merchandise from Valencia Manufacturing Company for ₱1,500. Terms 2/10,
n/30.
2 Paid rent for October ₱300.
3 Sold merchandise to C. Rivera ₱425. Terms : 2/10, n/30 of which merchandise costing
₱300
4 Received payment from R. Dijamco for ₱784 in full settlement of account from a sale of
₱800 on Sept. 24 on terms 2/10, n/30.
5 Paid Dizon Wholesalers on invoice for ₱3,800 dated Sept 20 on terms 1/15, n/30.
6 Purchased merchandise from General Fruits Trading on account for ₱1,500.
7 Cash sales for the week amounted to ₱1,450 of which merchandise costing ₱1, 000.
8 Wages paid amounted to ₱1,450
9 Adrian Villesis withdrew ₱600 cash.
10 Granted allowance of ₱40 N Apacible for defective merchandise returned from sale of
Sept 26 merchandise cost ₱ 30.
11 Paid freight of ₱72 on various purchases.
12 Sold merchandise to Z. Santos for ₱525. Terms 2/10, n/30 of which merchandise costing
₱500
13 Paid advertising bills amounting to ₱95.
14 Cash sales for the week amounted to ₱1,200 of which merchandise costing ₱1, 000
15 Wages paid amounted to ₱150.
16 Paid H. Chan Trading on invoice for ₱3,000 dated Sept. 26, terms: 2/20, n/30.
17 Purchased merchandise from General Fruits Trading for ₱1,420 Terms:2/15, n/30.
18 Paid General Fruits Trading on invoice for ₱1,500 dated Oct. 6.
19 Received credit of ₱120 from General Fruits Trading for defective merchandise returned
on invoice for ₱1,420 dated Oct 17.
20 Z. Santos returned defective goods for credit of ₱75 was granted, merchandise cost ₱60
21 Cash sales for the week amounted to ₱750 of which merchandise costing ₱700
22 Wages paid amounted to ₱150
23 Adrian Villesis withdrew merchandising costing ₱200 and priced to sell for ₱320.
24 Paid Artadi Commercial 50% of the amount due on invoice for ₱1,200 dated Sept 28,
terms: 2/10, n/30.
25 Cash sales for the week amounted to ₱950 of which merchandise costing ₱900.
26 Paid freight of ₱65 on various purchases.
27 Sold merchandise to R. Dulay for ₱915. Terms: 2/10, n/30 of which merchandise costing
₱ 850
28 Paid telephone, light and water bills amounting to ₱150.
29 Granted credit of ₱115 to L. Buencamino for defective merchandise returned on invoice
for P2, 115 dated Sept. 30 merchandise cost ₱90
30 Paid P150 for the purchase of various wrapping papers, bags, tapes, and twine.
31 Received payment from L. Buencamino in full settlement of invoice for P2, 115 dated
Sept. 30, terms: 2/10, n/30.
 MS. JJ GUTIERREZ

Ms. JJ Gutierrez started her merchandising business on December 1, 200E.

The following transactions transpired during December.

Dec.

1 – Began her business by investing P50,000.

1- Paid the following:

Municipal License P 3,500

Rent (3 months) 12,000

1 Bought computers from Burroughs, terms COD, P20,000.

1 Bought tables and chairs from Nicfur on credit, P13,650, terms n/60.

3 Bought merchandise for cash, P8,700.

3 Paid freight on the above purchases, P150.

5 Sold merchandise for cash, P14,000. Cost of Sales P 6,000

5 Paid freight on the above sale, P300.

7 Purchased merchandise from the following suppliers:

LX Trading, P10,000 terms 2/10, n/30.

Zoilo Trading, P18,000 terms, EOM.

9 Sold merchandise to the following customers:

Llamas Supermarket, P21,000 terms 3/10, n/40. Cost of sales P 9,000

Rey’s Grocery, P11,000 terms n/45. Cost of Sales P7,000

10 Borrowed money from PNB, P15,000 payable in 30 days.

11 Paid the account of LX Trading in full (see transaction dated Dec.7).

14 Collected the account of Llamas Supermarket in full (see

transaction dated Dec. 9)

15 Received a credit memo for P2,000 from Zoilo Trading for defective merchandise returned.
15 Received advanced rental from a tenant, P6,000.

15 Rey’s Grocery returned defective merchandise, P3,000 for which a credit memo was issued.

15 Paid the following:

Electric bill P 2,300

Water bill 3,200

Salaries 12,000

Advertising 4,500

17 Sales on account to Nelson’s Store, P13,600, terms 2/10, n/45. Cost of Sales P 7,000

19 Purchases on credit from Baguio Trading, P14,200, terms n/30.

22 The owner withdrew cash for his personal use, P2,000.

23 Received a 60-day 6% note for merchandise sold from Cara Cruz, P3,000. Cost of Sales P 570.

25 Issued a 30-day 6% note to Waley Enterprises, for merchandising bought, P2,800.

28 The owner made an additional investment of P2,300.

29 Bought office supplies for cash P1,200 (charge to expense).

30 Salaries paid, P12,000.

30- Advertising Paid, P4,500.

30- Telephone Bill Paid, P1,500.

31- Paid for Utilities Bill, P5,500.

31- Bought merchandise for cash, P7,800.

31- Paid Freight on the purchases above, P120.

31- Physical count of ending inventory on hand, P 30,000.

The National Teachers College

Simplified Accounting for Sole Proprietorship Vol. 1 2010 Ed.

Nelson S. Abeleda F657.91 Ab45 Page 175

 JJ Trading
Suggested Chart of Accounts

Cash/Accounts Receivable/Notes Receivable/Merchandise

Inventory/Computers/Furnitures & Fixtures/Accounts Payable/Notes
Payable/Unearned Rent Income/JJ, Capital/JJ, Drawings/Sales/Sales
Discount/Sales Return/Purchase/Purchase Discount /Purchase
Returns/Freight-In/Rent Expense/Salaries Expense/Supplies
Expense/Utilities Expense/Advertising Expense/Telephone
Expense/Freight- Out/Taxes & Licenses Expense
KATALINA LOQUE’ S TRADING COMPANY
Katalina Loque Company engaged in the following transaction in January,200x:
2 – Katalina Loque invested cash worth P200,000; land worth P500,000 but it is encumbered to a bank
for P150,000. The business would assume the liability.
2 - Bought equipment from ASI Co. in cash, P15,000.00.
3 -Paid the month's rent, P5,000.00.
3 -Merchandise bought from Alice Co., P45,000.00. Terms: n/30
5 -Merchandise bought from Fabelico Co., P40,000.00. Terms: 2/10, n/30.
6 Sold to May CO., P20,000.00, costing P10,000 Terms: 2/10, n/30.
8 Paid P500.00 for shipping charges on merchandise purchased.
8 Paid in full the account to Alice Co.
8 Sold merchandise on credit to Mendez , P10,000.00. Cost of merchandise sold is P5,000. Terms: 20-
day, 6% note.
10 Bought equipment from ASI Co., P20,000.00. Terms: 30-day, 12% note.
10 Bought merchandise from JM Mi, P7,000.00. Terms: 2/10, n/30.
10 Sold to Mica, P10,500.00. Cost of merchandise sold, P7,500. Terms: 2/10, n/30.
11 Received check in full payment from May CO.
11 Sold to Lisa, P17,000.00, costing P12,000. Terms: 3/10, n/30.
13 Lisa returned a portion of merchandise bought P2,000.00.
15 Paid salesmen's salaries, P1,500.00.
15 Paid in full the account to Fabelico Co.
15 Bought merchandise from Alice Co. P10,000.00. Terms: 2/10, n/30.
16 Sold to May CO. P17,000.00. Terms: 2/10, n/30. Costing P12,000.
17 Returned merchandise to Alice CO.billed on the 15th at P2,000.00.
18 Paid janitor's salary, P500.00.
20 Paid in full the note issued to ASI Co.
20 Paid in full the account to JM Mi.
20 Paid in full the account to Alice Co. on the 15th.
22 Received full payment of account from Lisa.
22 Paid for freight on goods sold on the 16th, P500.00, FOB destination.
23 Gave an allowance to May CO., P1,000.00, for defective goods delivered to it on the 16th.
24 Bought merchandise from JM Mi, P10,000.00. Terms: 20 and 10, 2/10, n/30.
25 Cash sales P16,000.00. Cost of merchandise sold, P11,000.
26 Received full payment of account from May CO. for the sale on the 16th.
28 Collected in full the note received on the 8th.
28. The owner withdrew cash worth P5,000 for personal use.
29 Bought merchandise from Fabelico Co. P15,000.00. Terms: 3%, 10/EOM
31 Paid salaries of office employees, P2, 000.00 and of salesmen, P1,500.00

SUGGESTED ACCOUNTS:
Cash; Accounts Receivable; Notes Receivable; Merchandise Inventory; Prepaid Rent; Equipment; Land;
Accounts Payable: Notes Payable; Mortgage Payable; Katalina, Capital; Katalina, Drawing; Sales ; Sales
Discount; Sales Returns; Cost of Good Sold;Freight Out; Salaries Expense

The National Teachers College

Introductory Accounting (Part One)
D.S. Pasion
W.T. Pasion, BSBA, CPA
E.T. Pasion, BSBA, CPA
F65 P26i
Page 259-260