Name: _____________________________________ Date:______________________

Journalizing Merchandising Transactions under Periodic Inventory System

Mr. John Fong opened his new branch distribution in General Santos City with the capital investment of P200,000.

July 2 Purchase merchandise from Davao Rich on account, P30,000. Terms: 2/10, 1/20, n/30.

3 Paid the transportation expense on the above purchased, P1,200.

4 Paid Government requirements for business permits, P12,300.

5 Made advance payment amounting P21,000 for 3 months building rental.

6 Bought on account, a computer set for office use, P13,000.

7 Sold merchandise on account to Franco Store. Terms: 2/10, n/30.

8 Received P5,000 advance customer payment.

9 Purchase P10,000 cash of merchandise.

10 Returned P400 worth of merchandise to Davao Rich.

11 Settle the July 2 transaction in full.

13 Sold cash merchandise amounting P25,000.

14 Paid freight on the above sale, P600.

15 Received P800 worth of merchandise from Franco Store.

16 Received a full collection on July 7 transaction.

19 Mr. John withdrew P3,000 for personal use.

20 Received P500 cash of the returned merchandise.

22 Borrowed money from Metrobank, P100,000 and issued promissory note.

25 Sold merchandise in cash, P26,100.

31 Paid the following expenses:

Advertising Expense P1,000

Salaries & Wages Expense 5,000
Utilities Expense 2,000

A P10,000 worth of merchandise inventory computed at the end of the month.

Required:
Prepare Journal Entries
Posting to General Ledger
Prepare Trial Balance
Prepare Cost of Goods Sold
Prepare Income Statement
Prepare Statement of Changes in Owner’s Equity
Prepare Statement of Financial Position
Prepare Statement of Cash Position
Prepare Closing Entries
Prepare Post Trial Balance
 Chart of Account
Assets Income/Revenue
101 Cash on Hand 401 Sales
102 Accounts Receivable 402 Sales Discounts
103 Office Equipment 403 Sales Returns & Allowances
104 Prepaid Rent
Cost of Sales
Liabilities 501 Purchases
201 Accounts Payable 502 Purchase Discounts
202 Notes Payable 503 Purchases Returns & Allowances
203 Unearned Revenue 504 Freight In

Owner’s Equity Expenses

301 J. Fong, Capital 601 Freight Out
302 J. Fong, Drawing 602 Advertising Expense
603 Salaries & Wages Expense
604 Taxes & Licenses Expense
605 Utilities Expense