CASE PROBLEM 1: 84% GRAFITTI Distributors was registered with the Department

of Trade and Industry (DTI) as a single proprietorship by Mario Santos, the owner. The
company uses the perpetual inventory system. You are asked to
CASE PROBLEM 2: 12% Complete the table.

May 1 Mario Santos invested 39,000 in the business

2 Bought computer equipment 9,000
2 Bought merchandise on account from KOTON Supply Co., 16,400 terms 2/10,
n/30
3 Bought office supplies on cash basis for 750.
4 Sold merchandise on account 18,500, FOB Destination, terms 2/10, n/30,
costing 9,400
5 Paid P300 freight on May 5 sale.
6 Received credit from KOTON Supply Co. for merchandise returned 400

11 Paid KOTON Supply Co.

13 Collected from May 4 customers.
14 Bought merchandise on cash basis for 9,400
15 Salaries paid 1,800
16 Borrowed money from RCBC Bank, signed a promissory note for 15,000,
payable in 183 days
17 Received refund from a supplier on cash purchase of May 10, at 750
18 Bought merchandise from KOLERA, 12,000, FOB Shipping Point, terms 2/10.
n/30
20 Paid freight on May 18 purchase, 500
23 Sold merchandise for 8.950. Cost of goods sold amounting 4,700
26 Bought merchandise for cash 18,605.
27 Paid KOLERA on May 18 purchase, 6,500. No discount allowed on partial
payment.
28 Santos got cash from the business 3,405.
29 Made refund to cash customers for defective merchandise, 940.
30 Sold merchandise on account, 10,500 terms 2/10, n/30. The cost of sales was
amounted to 7,450.
31 Paid the following: Advertising, P800; Utilities, P750; Rent, P3,500; Salaries,
P1,500.
GENERAL JOURNAL (GJ-1)
 Date Particulars PR Debit Credit
May 1 Cash GL101 36,000
Santos, Capital 36,000

2 Equipment 9,000
Cash GL101 9,000

2 Merchandise Inventory 16,400

Accounts Payable 16,400

3 Supplies 750
Cash GL101 750

4 Accounts Receivable GL102 18,500

Sales 18,500

Cost of Goods Sold 9,400

Merchandise Inventory 9,400

5 Freight Out 300

Cash GL101 300

6 Accounts Receivable GL102 400

Merchandise Inventory 400

11 Accounts Payable 16,000

Cash GL101 15,680
Merchandise Inventory 320
GENERAL JOURNAL (GJ-2)
Date Particulars PR Debit Credit
13 Cash GL101 18,130
Sales Discount 370
Account Receivable GL102 18,500

14 Merchandise Inventory 9,400

Cash GL101 9,400

15 Salaries Expense 1,800

Cash GL101 1,800

16 Cash GL101 15,000

Notes Payable 15,000

17 Cash GL101 750

Merchandise Inventory 750

18 Merchandise Inventory 12,000

Accounts Payable 12,000

20 Freight Out 500

Cash GL101 500

23 Cash GL101 8,950

Sales 8,950

Cost of Goods Sold 4,700

Merchandise Inventory 4,700
 GENERAL JOURNAL (GJ-3)
Date Particulars PR Debit Credit
26 Merchandise Inventory 18,605
Cash GL101 18,605

27 Accounts Payable 6,500

Cash GL101 6,500

28 Drawing, Santos 3,405

Cash GL101 3,405

29 Sales Return and Allowances 940

Cash GL101 940

30 Accounts Receivable GL102 10,500

Sales 10,500

Cost of Goods Sold 7,450

Merchandise Inventory 7,450

31 Advertising Expense 800

Utilities Expense 750
Rent Expense 3,500
Salaries Expense 1,500
Cash GL101 6,550

GENERAL LEDGER ANSWER KEY

CASH Account No. 101

Post Running Balance
Dat e Items Ref. Debit Credit Debit Credit
1 36,00 36,000
2 9,000 27,000
3 750 26,250
 5 300 25,950
11 15,680 10,270
13 18,130 28,400
14 9,400 19,000
15 1,800 17,200
16 15,000 32,200
17 750 32,950
20 500 32,450
23 8,950 41,400
26 18,605 22,795
27 6,500 16,295
28 3,405 12,890
29 940 11,950
31 6,550 5,400

ACCOUNTS RECEIVABLE Account No. 102

Post Running Balance
Dat e Items Ref. Debit Credit Debit Credit

MERCHANDISE INVENTORY Account No. 103

Post Running Balance
Dat e Items Ref. Debit Credit Debit Credit
 S UPPLI S Account No. 110
E
Post Running Balance
Dat e Items Ref. Debit Credit Debit Credit

EQUIPMENT Account No. 120

Post Running Balance
Dat e Items Ref. Debit Credit Debit Credit

ACCOUNTS PAYABLE Account No. 201

Post Running Balance
Dat e Items Ref. Debit Credit Debit Credit