MM COMPANY

CHART OF ACCOUNTS

ASSETS
PAGE NO. ACCOUNT NO. CURRENT ASSETS PAGE NO. ACCOUNT NO.

1 100 Cash in Bank 14 400

2 101 Accounts Receivable 15 401
3 102 Estimated Uncollectible Accounts 16 402
4 103 Office Supplies
5 104 Prepaid Rent

PROPERTY AND EQUIPMENT

6 105 Office Equipment 17 500

7 106 Accumulated Depreciation 18 501
19 502
LIABILITY 20 503

8 200 Accounts Payable

9 201 Salaries Payable
10 202 Utilities Payable 21 600
11 203 Bank Loan Payable 22 601
23 602
Owner's Equity 24 603
12 300 MM, Capital 25 604
13 301 MM, Withdrawal 26 605
27 606
INCOME

Sales
Sales Discount
Sales Returns

COSTS

Purchases
Purchase Discount
Purchase Returns
Freight in

EXPENSES

Freight out
Salaries Expense
Utilities Expense
Supplies Expense
Rent Expense
Uncollectible Accounts
Depreciation Expense
JANUARY
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3
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6
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9
10
11
11
13
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15
15
20
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20
25
27
28
Additional Information

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2

3
 The following are the transactions of MM company for the month of January 2020
JANUARY
MM invested P 600,000 cash. OR no. 00001
Purchased merchandise on account from KCC Mall, P 380,000. Charge Invoice no. 0024 Term 12 , 3/15, n/30
Purchased office equipment on account, P 80,000 from Gaisano Mall. Charge invoice no. 2134.
It has a useful life of 5 years with a salage value 5,000 at the end of its life.
Paid Mr. AA for the delivery of the merchandise purchased in no. 1. P 5,000. Check no. 10000.
Purchased merchandise from XYZ company for cash, P 85,000. Check no. 10001 , OR NO. 6543
Sold merchandise on account, P 580,000 to ABC Marketing which cost amounted to , P 240,000. Term 15, 1/10, n/30. Charge i
Returned merchandise purchase from KCC Mall, 27,000.
Paid MR. CC for the delivery of the merchandise sold to ABC Marketing P 3,500. Check no. 10003
Sold merchandise to BB for cash, P 195,000 which cost amounted to , P 100,000. OR NO.00002
Returned merchandise purchased from XYZ company, P 25,000, OR NO. 7500
Received merchandise from ABC Marketing, P 12,000 which cost , P 8,500.
Received merchandise from BB, P 16,800 which cost , P 10,000. Check no. 10004
Paid P 134,000 of the merchandise purchased from KCC Mall. Chek no. 10005
Collected 265,000 the account with ABC Marketing. OR no. 00003
Paid in full the account with KCC Mall. Check no. 10006
Collected in full the account of ABC Marketing, OR no. 00004
Paid XX Realty for 3 months rent in advance, P 80,000. Check no. 10007
Borrowed P 860,000 from RCBC bank at 8 % payable 1 year after.
Purchased office supplies from Crown Bookstore for cash P 11,000. Check no. 10008
Paid salaries of the employees, P52,000. Check no. 10009
Sold Merchandise on account, P 480,000 to HH Company which cost amounted to , P 190,000. Term 10, 2/10, n/30. Charge inv
Purchased merchandise on account from NCCC MALL, P 170,000. Charge Invoice no. 0030 Term 10 , 3/15, n/30
MM withdrew cash for his personal use, P 30,000. Check no. 10010
Additional Information

30% of the supplies were on hand

The entity paid its employees every 20th and 5th day of the month and is on a six day work week. It incurs P 4,000 salaries exp
Payroll cut off date is every 15th day and end of the month.
Unpaid Expenses at year end
Electricity expense 5,450
Telepone expense 1699
Water expense 1,450

Required :
1. Journalize the above transactions using special journals
2. Post the journal entries to the ledger
3. Prepare a trial balance