Illustrative Problem 1

Case Problem: DOLE DISTRIBUTOR

April 01 The business DOLE DISTRIBUTOR was registered as single proprietorship with the
Department of Trade and Industry, Juan Lopez invested P39, 000

02 Bought computer equipment for P10,000 cash

/ Bought merchandise on account from LOWTOWN Supply Co. P15, 900, Term, 2/10, n/30

03 Bought office supplies on cash basis for P700

04 Sold merchandize on account P15,200 FOB Destination, terms 2/10, n/30

05 Paid P200 freight on April 4 sale

06 Received credit memo LOWTOWN Supply Co. for merchandise return P300

11 Paid LOWTOWN

13 Collected from April 4 customers

14 Bought merchandise on cash basis for P14,400

15 Salaries paid P1,500

16 Borrowed money from RCBC Bank, signed a promissory note for P12,000

17 Received refund from a supplier on cash purchase of April 14, P500

18 Bought merchandize from MESDA, P14,200 FOB Shipping, term, 2/10, n/30

20 Paid freight on April 18 purchase P700

23 Sold merchandise for P16, 400

26 Bought merchandise for cash P12,300

27 Paid MESDA on April 18 purchase, P9,000. No discount allowed on partial payment

28 J. Lopez get cash from the business, P2,008

29 Made refund to cash customer for defective merchandise, P900

30 Sold merchandise on account, P13,700 2/30

Paid the following: Advertising P1,000, Utilities P400, Rent P3,500, Salaries P1,500

30 Inventory April 30, P25,000

 Date Accounts Title and Explanation PR Debit Credit
April 1 Cash 101 39,000
Lopez, Capital 301 39,000
To record initial investment

11

13

14

15

16
 Date Accounts Title and Explanation PR Debit Credit
April 17

18

20

23

26

27

28

29

30
______Cash

Date Explanation Debit Credit Balance

debit credit

______Accounts Receivable

Date Explanation Debit Credit Balance

debit credit

______Supplies

Date Explanation Debit Credit Balance

debit credit
______Equipment

Date Explanation Debit Credit Balance

debit credit

______Accounts Payable

Date Explanation Debit Credit Balance

debit credit

______Notes Payable

Date Explanation Debit Credit Balance

debit credit

______Lopez, Capital

Date Explanation Debit Credit Balance

debit credit

______Lopez, Drawing

Date Explanation Debit Credit Balance

debit credit
______Sales

Date Explanation Debit Credit Balance

debit credit

______Sales Discount

Date Explanation Debit Credit Balance

debit credit

______Sales Returns and Allowances

Date Explanation Debit Credit Balance

debit credit

______Purchases

Date Explanation Debit Credit Balance

debit credit
______Purchase Discounts

Date Explanation Debit Credit Balance

debit credit

______Purchase Returns and Allowances

Date Explanation Debit Credit Balance

debit credit

______

Date Explanation Debit Credit Balance

debit credit

______

Date Explanation Debit Credit Balance

debit credit

______

Date Explanation Debit Credit Balance

debit credit
______

Date Explanation Debit Credit Balance

debit credit

______

Date Explanation Debit Credit Balance

debit credit

______

Date Explanation Debit Credit Balance

debit credit

______

Date Explanation Debit Credit Balance

debit credit

______ Income Summary

Date Explanation Debit Credit Balance

debit credit
 Dole Distributor
Trial Balance
April 30, 20xx

Acct. No. Accounts Title Debit Credit

Balance:
 Dole Distributor
Cost of Goods Sold
April 30, 20xx

Dole Distributor
Statement of Financial Performance
April 30, 20xx
 Dole Distributor
Statement of Changes in Equity
April 30, 20xx

Dole Distributor
Statement of Financial Position
April 30, 20xx
 Dole Distributor
Statement of Cash Flow
April 30, 20xx
 Dole Distributor
Post-closing Trial Balance
April 30, 20xx

Acct. No. Accounts Title Debit Credit