Periodic System

1- The UV Distributors was registered as a single proprietorship in the Department of

Trade & Industry. Umbria Cruz invested P39 000.
2- Bought computer equipment for P10 000 cash.
- Bought merchandise on account to Newtown Supply Co., P15 900 terms: 2/10, n/30
3- Bought office supplies on cash P700
4- Sold merchandise on account P15 200 FOB destination, terms: 2/10, n/30
5- Paid P200 freight on April 4 sale
6- Received credit from Newtown Supply Co for merchandise returned P300
11- Paid Newtown Supply Co
13- Collected from April 4 customers
14- Bought merchandise on cash for P14 400
15- Salaries paid P1 500
16- Borrowed money from CBC Bank and signed a promissory note for P12 000
17- Received refund of P500 from a supplier on cash purchases of on April 14
18- Bought merchandise from Envy Supply P14 200, FOB shipping point, terms: 2/10, n/30
20- Paid freight of P700 for April 18 purchases
23- Sold merchandise for P16 400
26- Bought merchandise P12 300
27- Paid Envy Supply P9000 for April 18 purchases. (no discount for partial payment)
28- U Cruz got cash from the business P2 008
29- Made refund to cash customers for defective merchandise P900
30- Sold merchandise on account P13 700, n/30
30- Paid the following: Advertising P1000, Utilities P 400, rent P3 500, salaries P1500
30- Inventory April 30 P25 000

Note: freight in = transpo charge in deliveries from suppliers

Freight out= deliveries from sales

Adjusting entries

1. BDO lent P100 000 to a customer on December 1 w/ an annual rate of 12%. The loan is due
in six months and no payment of interest until the note will due on May 31. BDO prepares
monthly financial statements at the end of each calendar month. Provide an answer until
March only.
2. On December 1, AXA Insurance Company received P2 400 from your company for the annual
insurance premium covering the 12-month period beginning on December 1. AXA recorded
P2 400 receipt with a debit to the current asset cash and a credit to the current liability,
unearned revenue. AXA Insurance Co prepares monthly financial statements at the end of
each calendar month. Provide an answer for April only.
3. On December 1, Fortune Company began its operations. On Dec 4 it purchased P1 500 of
supplies & recorded the transactions w/ a debit to the balance sheet account supplies and a
Credit to the current liability. Fortune Co prepares monthly financial at the end of each
calendar month. On December 31, Fortune Co estimated that P700 of the supplies were still
on hand in the supply room.
Answer
Sequence of the Case 2.1 Case 2.2 Case 2.
case
Date of the Mar 31 April 30 Dec 31
adjusting entry
Debit account title Interest receivable Unearned revenue Supplies expense
Credit account title Interest income revenue supplies
amount P1 000 P200 P800