CASE 7

1. Stock Card for Tri Star

Date Transaction Quantity Unit Cost Amount

January 10 Purchases 10 2,500.00 25,000.00 A P2,800

14 Sales (8) 2,500.00 (20,000.00)

Balance 2 2,500.00 5,000.00 Referring to the problem, the following was indicated:

21 Purchases 15 2,800.00 42,000.00

23 Sales (2) 2,500.00 (5,000.00) Per count, there were 10 units of tri-star and 5 units of racer

(2) 2,800.00 (5,600.00) In the Tri-Star stock card, the items that should be in the inventory is 11 units

Balance 13 2,800.00 36,400.00

26 Sales (2) 2,800.00 (5,600.00) Per Stock Card 11 units

Per
Ending Balance 11 30,800.00 count 10 units
Item shortage 1 unit

2 Stock loss/ Receivable from personnel 2,800.00 Cost 2,800.00 ***

Inventory 2,800.00 Value 2,800.00

to record stock loss
Tri-Star Purchase
3 Date   Particulars   Debit Credit 10 units P2500 cost
P2800
Jan. 10 Merchandise inventory 25,000.00 15 units cos

Input tax 2,500.00

Accounts payable 27,500.00 Tri star Sales

to record purchase of inventory on
account 14 Units

21 Merchandise inventory 42,000.00 Using FIFO Method, the first purchase of 10 units was already sold,

Input tax 4,200.00 next cost is at P2,800 therefore should be carried as the cost of lost item.
Accounts payable
 46,200.00
to record purchase of inventory on
account

24 Merchandise inventory 10,000.00

Input tax 1,000.00

Accounts payable 11,000.00

to record purchase of inventory on
account

4 Date   Particulars   Debit Credit

Jan. 14 Accounts receivable 35,200.00

Sales 32,000.00

Output tax 3,200.00

to record sales on account

23 Accounts receivable 17,600.00

Sales 16,000.00

Output tax 1,600.00

to record sales on account

26 Cash 8,640.00

Sales discounts 160.00

Sales 8,000.00

Output tax 800.00

to record cash sales

 Cost of sales 5,600.00

Merchandise inventory 5,600.00

to record cost of sales

5 Depreciation expense 1,291.67

Accumulated depreciation 1,291.67

to take up provsion for depreciation