TRANSACTIONS

April 2020 1 Mr. Coronado made the following investments:

Cash in Bank 350,000
Furniture and Fixtures 100,000
3 Bought office equipment on account from Yap Corp. and issued a promissory note, P200,000.
4 Bough store supplies inventory on account from Duga ,Inc. amounting to P10,000.
5 Bought merchandise inventory for cash , P70,000.
7 Sold merchandise for cash P15,000.
10 Bought merchandise inventory on account from Ong Trading, P35,000. Term: 2/10, n/30.
11 Merchandise sold last March 7 amounting to P1,500 was returned by the customer.
15 Sold merchandise on account to Delfino Corp.,P20,000. Term: 3/10,n/30.
16 Bought merchandise for cash P50,000 and freight of P1,000.
17 Sold merchandise, P20,000 and paid freight of P2,000.
18 Return merchandise amounting to P5,000 purchased last March 5.
19 Paid our account related to March 10 transaction.
22 Paid rental for the month, P10,000.
23 Merchandise sold last March 15 amounting to P1,500 was returned by the customer.
24 Collected our account of March 15.
26 Bought merchandise on account from Duhig Co., P15,000. Paid freight of P1,000.
27 Bought merchandise on account from Amotan, Inc., P25,000 and was given a 5% trade discount. Term 2/10
28 Sold merchandise on account P55,000 and gave a 2% trade discount.
29 Paid lights and water bills, P5,000.
29 Paid advertising expense, P3,500.
30 Paid salaries of P25,000 for the month of March.
30 The owner withdrew P5,000 from the business.
30 Merchandise inventory at the end of the month is 166,000.
Additional Information for Adjustments at the end of the month:
31 Unused store supplies inventory at the end of the month amounted to P6,000.
31 5% of the Receivable balance at the end of the month is doubtful of collection.
31 Straight-line depreciation method is used in computing depreciation expense.
The following data are available to compute depreciation for the month:
Life(in yr) Salvage Value
Furniture and Fixtures 5 10%
Store Equipment 5 10%
rade discount. Term 2/10,n/30.
 CHART OF ACCOUNTS
Balance Sheet Accounts Income Statement Accounts
ASSETS REVENUE
Code Current Code
100 Cash in Bank 400 Sales
101 Accounts Receivable 401 Sales Returns and Allowances
101-A Allowance for Uncollectible Accounts 402 Sales Discounts
102 Merchandise Inventory
103 Store Supplies Inventory COSTS
Non-Current 500 Purchases
104 Furniture and Fixtures 501 Purchase Returns and Allowances
104-A Accumulated Depreciation (F&F) 502 Purchase Discounts
105 Store Equipment 503 Freight-In
105-A Accumulated Depreciation (SE) 504 Cost of Sales
EXPENSES
LIABILITIES 600 Uncollectible Accounts
200 Accounts Payable 601 Depreciation Expense
201 Notes Payable 602 Rent Expense
603 Salaries and Wages
OWNER'S EQUITY 604 Utilities Expense
300 Coronado, Capital 605 Store Supplies Expense
301 Coronado, Drawings 606 Advertising Expense
302 Income & Expense Summary 607 Freight-out
 GENERAL JOURNAL (PAGE 1)
DATE PARTICULARS P.R DEBIT CREDIT
April 2020 1 Cash in Bank 3 5 0 0 0 0
Furniture and Fixtures 1 0 0 0 0 0
Coronado, Capital 4 5 0 0 0 0
To record initial investments of the owner.

3 Store Equipment 2 0 0 0 0 0
Notes Payable 2 0 0 0 0 0
To record purchased of equipment on account.

4 Store Supplies Inventory 1 0 0 0 0

Accounts Payable 1 0 0 0 0
To record purchased of supplies on account.

5 Purchases 7 0 0 0 0
Cash in Bank 7 0 0 0 0
To record cash purchases.

7 Cash in Bank 1 5 0 0 0
Sales 1 5 0 0 0
To record cash sales.

10 Purchases 3 5 0 0 0
Accounts Payable 3 5 0 0 0
To record credit purchases

11 Sales Returns & Allowances 1 5 0 0

Cash in Bank 1 5 0 0
To refund return of merchandise sold for cash.

15 Accounts Receivable 2 0 0 0 0
Sales 2 0 0 0 0
To record credit sales.
GENERAL JOURNAL (PAGE 2)
16 Purchases 5 0 0 0 0
Freight-in 1 0 0 0
Cash in Bank 5 1 0 0 0
To record cash purchases and freight-in.

17 Cash in Bank 2 0 0 0 0
Freigh-out 2 0 0 0
Sales 2 2 0 0 0
To record cash sales and freight-out.

18 Cash in Bank 5 0 0 0
Purchase Returns and Allowances 5 0 0 0
To record refund from supplier for returned goods.

19 Accounts Payable 3 5 0 0 0
0 Purchase Discounts 7 0 0
Cash In bank 3 4 3 0 0
To record payment of accounts within the discount period.

22 Rent Expense 1 0 0 0 0
Cash In bank 1 0 0 0 0
To record payment of rent for the month.

23 Sales Returns and Allowances 1 5 0 0

Accounts Receivable 1 5 0 0
To record returned merchandise sold on account.

24 Cash in Bank 1 7 9 4 5
Sales Discount 5 5 5
Accounts Receivable 1 8 5 0 0
To record collection of receivables with discount.

GENERAL JOURNAL (PAGE 3)

26 Purchases 1 5 0 0 0
Freight-in 1 0 0 0
Accounts Payable 1 5 0 0 0
Cash in Bank 1 0 0 0
To record on account purchases and payment of freight.

27 Purchases 2 3 7 5 0
Accounts Payable 2 3 7 5 0
To record on account purchases with trade discount

28 Accounts Receivable 5 3 9 0 0
Sales 5 3 9 0 0
 To record cash sales with trade discount.

29 Ulilities Expense 5 0 0 0
Cash in Bank 5 0 0 0
To record payment of utilities for the month.

29 Advertising Expense 3 5 0 0
Cash in Bank 3 5 0 0
To record payment of advertising expense.

30 Salaries and Wages 2 5 0 0 0

Cash in Bank 2 5 0 0 0
To record payment of salaries for the month.

30 Coronado, Drawings 5 0 0 0
Cash in Bank 5 0 0 0
To record personal withdrawals made by the owner.

GENERAL JOURNAL (PAGE 4)

Store Supplies Expense 4 0 0 0
Store Supplies Inventory 4 0 0 0
To record the used store supplies.

Uncollectible Accounts 2 6 9 5
Allowance for Uncollectible Accounts 2 6 9 5
To record doubtful accounts.

Depreciation Expense 5 0 0 0
Accumulated Depreciation- Furniture and Fixtures 1 5 0 0
Accumulated Depreciation- Store Equipment 3 0 0 0
To record depreciation for the month.
CLOSING ENTRIES

31 Sales 1 0 8 9 0 0
Sales Returns and allowances 3 0 0 0
Sales Discounts 5 5 5
Income & Expense Summary 1 0 5 3 4 5
To close the sales related accounts.

31 Merchandise Inventory, Ending 1 6 6 0 0 0

Purchase Returns and allowances 5 0 0 0
Purchase Discounts 7 0 0
Income and Expense Summary (COST OF SALES) 2 4 0 5 0
Merchandise Inventory, Beginning -
Purchases 1 9 3 7 5 0
Freight-In 2 0 0 0
To close purchases related accounts and establish merchandise inventory ending

31 Income & expense summary 5 6 6 9 5

Uncollectible accounts 2 6 9 5
Depreciation expense 5 5 0 0
Rent Expense 1 0 0 0 0
Salaries and wages 2 5 0 0 0
Utilities Expense 4 0 0 0
Store Supplies Expense 1 0 0 0 0
Advertising expense 3 5 0 0
Freight-out 2 0 0 0

31 Income & Expense Summary 2 4 6 0 0

Coronado, Capital 2 4 6 0 0
To close income summary account to capital account.

31 Coronado, Capital 5 0 0 0
Coronado, Drawings 5 0 0 0
To close drawing account to capital account.
 GENERAL LEDGER

Account: CASH IN BANK Account Number: 100

DATE Description Ref Debit Credit

1-Apr Investment GJ-1 350,000
5-Apr Purchases GJ-1 70,000
7-Apr Sales GJ-1 15,000
11-Apr Refund to customer GJ-1 1,500
16-Apr Purchases and Freight-In GJ-2 51,000
17-Apr Sales with freight-out GJ-2 20,000
18-Apr Refund from supplier GJ-2 5,000
19-Apr Payment with discount GJ-2 34,300
22-Apr Payment of rent GJ-2 10,000
24-Apr Collection from customers with discount GJ-2 17,945
26-Apr Payment of Freight-in GJ-3 1,000
29-Apr Payment of utilities GJ-3 5,000
29-Apr Payment of advertising GJ-3 3,500
30-Apr Payment of Salaries GJ-3 25,000
30-Apr Drawings GJ-3 5,000

Account: ACCOUNTS RECEIVABLE Account Number: 101

DATE Description Ref Debit Credit

15-Apr Sales on Account GJ-1 20,000
23-Apr Returns GJ-2 1,500
24-Apr Collection GJ-2 18,500
28-Apr Sales on Account GJ-3 53,900

Account: ALLOW.FOR UNCOLLECTIBLE ACCOUNTS Account Number: 101-A

DATE Description Ref Debit Credit

Apr-31 Recognize Doubtful Account GJ-4 2,695

Account: MERCHANDISE INVENTORY Account Number: 102

DATE Description Ref Debit Credit

 30-Apr Ending 166,000.00

Account: STORE SUPPLIES INVENTORY Account Number: 103

DATE Description Ref Debit Credit

4-Apr Purchase of supplies GJ-1 10,000
Apr-31 Used supplies GJ-4 6,000

Account: FURNITURE AND FIXTURES Account Number: 104

DATE Description Ref Debit Credit

1-Apr Investment Owner GJ-1 100,000

Account: ACCUMULATED DEPRECIATION-FURNITURE & FIXTURES Account Number: 104-A

DATE Description Ref Debit Credit

Apr-31 Depreciation GJ-4 1,500

Account: STORE EQUIPMENT Account Number: 105

DATE Description Ref Debit Credit

3-Apr Purchase GJ-1 200,000.00
Account: ACCUMULATED DEPRECIATION- STORE EQUIPMENT Account Number: 105-A

DATE Description Ref Debit Credit

1-Apr Purchase GJ-4 3,000

Account: ACCOUNTS PAYABLE Account Number: 200

DATE Description Ref Debit Credit

4-Apr Purchase of store supplies GJ-1 10,000
10-Apr Purchases on account GJ-1 35,000
19-Apr Payment of accounts GJ-2 35,000
26-Apr Purchase on account GJ-3 15,000
27-Apr Purchases on account GJ-3 23,750

Account: NOTES PAYABLE Account Number: 201

DATE Description Ref Debit Credit

3-Apr Purchase of Store equipment on account GJ-1 200,000.00

Account: CORONADO, CAPITAL Account Number: 300

DATE Description Ref Debit Credit

1-Apr Initial investments GJ-1 450,000
Closing Entry 4 24,600
Closing Entry 5 5,000
Account: CORONADO, DRAWING Account Number: 301

DATE Description Ref Debit Credit

30-Apr Cash withdrawals GJ-3 5,000.00
Closing Entry GJ-4 5,000.00

Account: INCOME & EXPENSE SUMMARY Account Number: 302

DATE Description Ref Debit Credit

Closing Entry 1 GJ-4 105,345.00
Closing Entry 2 GJ-4 24,050.00
Closing Entry 3 GJ-4 56,696.00
Closing Entry 4 GJ-4 24,600.00

Account: SALES Account Number: 400

DATE Description Ref Debit Credit

7-Apr Sold merchandise GJ-1 15,000.00
15-Apr Sold merchandise GJ-1 20,000.00
17-Apr Sold merchandise GJ-2 20,000.00
28-Apr Sold merchandise GJ-3 53,900.00
Closing Entry 53,900.00

Account: SALES RETURNS AND ALLOWANCES Account Number: 401

DATE Description Ref Debit Credit

11-Apr Sales return GJ-1 1,500
23-Apr Sales return GJ-2 1,500
Apr-31 Closing Entry 1 GJ-4 3,000
Account: SALES DISCOUNTS Account Number: 402

DATE Description Ref Debit Credit

24-Apr Discount to customer GJ-2 555.00
Closing Entry 1 GJ-4 555.00

Account: PURCHASES Account Number: 500

DATE Description Ref Debit Credit

5-Apr Cash purchases GJ-1 70,000.00
10-Apr On account purchases GJ-1 35,000.00
16-Apr Cash purchases GJ-2 50,000.00
26-Apr On account purchases GJ-3 15,000.00
27-Apr Purchase on account GJ-3 23,750
Apr-31 Closing Entry 2 GJ-4 193,750
Account: PURCHASE RETURNS AND ALLOWANCES Account Number: 501

DATE Description Ref Debit Credit

18-Apr Purchase returns GJ-2 5,000.00
1-Apr Closing Entry 2

Account: PURCHASE DISCOUNTS Account Number: 502

DATE Description Ref Debit Credit

19-Apr Discount from supplier GJ-2 700
Closing Entry 2 700

Account: FREIGHT-IN Account Number: 503

 DATE Description Ref Debit Credit
16-Apr Freight on purchases GJ-2 1,000
26-Apr Freight on purchases GJ-3 1,000
1-Apr Closing Entry GJ-4 2,000.00

Account: UNCOLLECTIBLE ACCOUNTS Account Number: 600

DATE Description Ref Debit Credit

Apr-31 Recognized doutful accounts GJ-4 2,695.00
Closing entry 3 GJ-4 2,695.00

Account: DEPRECIATION EXPENSE Account Number: 601

DATE Description Ref Debit Credit

Apr-31 Furniture and fixtures & Equipment GJ-4 5,500.00
Closing Entry 3 GJ-4 5,500.00

Account: RENT EXPENSE Account Number: 602

DATE Description Ref Debit Credit

22-Apr Rent for the month GJ-2 10,000.00
1-Apr Closing Entry 3 GJ-4 10,000.00

Account: SALARIES AND WAGES Account Number: 603

DATE Description Ref Debit Credit

30-Apr Salaries for the month GJ-3 25,000.00
Arpil 31 Closing Entry 3 GJ-4 25,000.00
Account: UTILITIES EXPENSE Account Number: 604

DATE Description Ref Debit Credit

29-Apr Utilities paid GJ-3 4,000
Apr-31 Closing Entry 3 GJ-4 4,000

Account: STORE SUPPLIES EXPENSE Account Number: 605

DATE Description Ref Debit Credit

Apr-31 Use store supplies GJ-4 4,000.00
Closing entry 3 GJ-4 4,000.00

Account: ADVERTISING EXPENSE Account Number: 606

DATE Description Ref Debit Credit

29-Apr Advertising incurred GJ-3 3,500.00
Apr-31 Closing Entry GJ-4 3,500.00

Account: FREIGHT-OUT Account Number: 607

DATE Description Ref Debit Credit

17-Apr Freight on sold merchandise GJ-2 2,000
Closing entry GJ-4 2,000
r: 100

Balance
350,000
280,000
295,000
293,500
242,500
262,500
267,500
233,200
223,200
241,145
240,145
235,145
231,645
206,645
201,645

er: 101

Balance
20,000
18,500
-
53,900

: 101-A

Balance
2,695

er: 102

Balance
 166,000.00

r: 103

Balance
10,000
4,000

er: 104

Balance
100,000

104-A

Balance
1,500

er: 105

Balance
200,000.00
105-A

Balance
3,000

er: 200

Balance
10,000
45,000
10,000
25,000
48,750

ber: 201

Balance
200,000

er: 300

Balance
450,000

469,600
er: 301

Balance
5,000.00
-

r: 302

Balance
105,345.00
81,295.00
24,600.00
0

ber: 400

Balance
15,000.00
35,000.00
55,000.00
108,900.00
-

: 401

Balance
1,500
3000
-
ber: 402

Balance
555.00
-

ber: 500

Balance
70,000.00
105,000.00
155,000.00
170,000.00
193,750
-
: 501

Balance
5,000.00
0

er: 502

Balance
700
0

ber: 503
 Balance
1,000.00
2,000.00
0

r: 600

Balance
2,695.00
0

er: 601

Balance
5,500.00
0

ber: 602

Balance
10,000.00
0

er: 603

Balance
25,000.00
0
ber: 604

Balance
4,000
0

er: 605

Balance
4,000.00
0

er: 606

Balance
3,500.00
0

ber: 607

Balance
2,000
0
 UNADJUSTED TRIAL BALANCE
April 30 2020
ACCOUNT NAME DEBIT CREDIT
Cash in Bank 201,645.00
Accounts Receivable 53,900.00
Allowance for Uncollectible Accounts 2,695.00
Merchandise Inventory -
Store supplies Inventory 4,000.00
Furniture and Fixtures 100,000.00
Accumulated Depreciation(F&F) 1,500.00
Store Equipment 200,000.00
Accumulated Depreciation(SE) 3,000.00
Accounts Payable 48,750.00
Notes Payable 200,000.00
Coronado, Capital 450,000.00
Coronado, Drawings 5,000.00
Income and Expense Summary -
Sales 108,900.00
Sales Returns and Allowances 3,000.00
Sales Discounts 555.00
Purchases 193,750.00
Purchase Retuns and Allowances 5,000.00
Purchase Discounts 700.00
Freight-in 2,000.00
Uncollectible Accounts 2,695.00
Depreciation Expense 5,500.00
Rent Expense 10,000.00
Salaries and Wages 25,000.00
Utilities Expense 4,000.00
Store Supplies Expense 4,000.00
Advertising Expense 3,500.00
Freight-out 2,000.00
TOTAL 820,545.00 820,545.00
 INCOME STATEMENT
April 30 2020
SALES 108,900.00
Less: Sales Returns & Allowances 3,000.00
Sales Discounts 555.00
NET SALES 105,345.00
Merchandise Inventory-Beg 0
Add: Purchases 193,750.00
Freight-In 2,000.00
Less: Purchase Returns & Allowances 5,000.00
Purchase Discounts 700.00
Goods Available for Sale 190,050.00
Less: Merchandise Inventory-Ending 166,000.00
Less: COST OF SALES 24,050.00 24,050.00
GROSS PROFIT 81,295.00
Less: Operationg Expenses
Uncollectible Accounts 2,695.00
Depreciation Expense 5,500.00
Rent Expense 10,000.00
Salaries and Wages 25,000.00
Utilities Expense 4,000.00
Store Supplies Expense 4,000.00
Advertising Expense 3,500.00
Freight-out 2,000.00 56,695.00
NET INCOME 24,600.00
 STATEMENT OF CHANGES IN EQUITY
4/30/2020

Coronado, Capital-Beg.
Less: Drawings 5,000.00
Net Loss -
Total Balance 5,000.00
Add: Investment during the period 450,000.00
Net Income 24,600.00
Coronado, Capital- Ending 469,600.00
 BALANCE SHEET
ASSETS
Current Assets
Cash in Bank 201,645.00
Accounts Receivable 53,900.00
Allowance for Uncollectible Accounts 2,695.00 51,205.00
Merchandise Inventory 166,000.00
Store Supplies Inventory 4,000.00
Total Current Assets 422,850.00
Non-Current
Furniture and Fixtures 100,000.00
Accumulated Depreciation 1,500.00 98,500.00
Store Equipment 200,000.00
Accumulated Depreciation 3,000.00 197,000.00
Total Non-current Assets(net) 295,000.00
TOTAL ASSETS 718,350.00
LIABILITIES
Current Liabilities
Accounts Payable 48,750.00
Notes Payable 200,000.00
Non-Current Liabilities
Total Liabilities 248,750.00
OWNER'S EQUITY
Coronado, Capital 469,600.00
TOTAL LIABILITIES & EQUITY 718,350.00
 POST-CLOSING TRIAL BALANCE
Account Name Debit Credit
Cash in Bank 201,645.00
Accounts Receivable 53,900.00
Allowance for Uncollectible Accounts 2,695.00
Merchandise Inventory, Beginning 166,000.00
Store supplies Inventory 4,000.00
Furniture and Fixtures 100,000.00
Accumulated Depreciation(F&F) 1,500.00
Store Equipment 200,000.00
Accumulated Depreciation(SE) 3,000.00
Accounts Payable 48,750.00
Notes Payable 200,000.00
Coronado, Capital 469,600.00
TOTAL 725,545.00 725,545.00