TRANSACTIONS FOR THE MONTH OF DECEMBER 2020

Dec 01 F. Anay the owner of XYZ Trading added additional investment to his business:

a. Bank deposit with Banco de Oro 850 000

b. Merchandise inventory with fair value 250 000
c. Furniture and Fixtures 1 500 000
d. Service vehicle 1 700 000

Dec 02 Purchase of Merchandise on account 500 000 and paid freight on the purchase 20 000

Dec 03 Return of merchandise purchased to supplier 30 000

Dec 05 Sale of merchandise on account 100 000. Credit terms 2/5, n/30

Dec 06 Return of merchandise sold from customer 25 000

Dec 08 Purchased merchandise with a list price of 200 000 with 10% and 5% trade discounts. Credit terms
2/10, n/20

Dec 09 Paid purchases on account on Dec 02

Dec 10 Collected payment on sales on Dec 05

Dec 11 Sold merchandise for cash 120 000 to ABC grocery and gave 3% trade discount

Dec 12 Received 4 000 worth of merchandise from ABC grocery for not confirming with the order and was
not replaced

Dec 14 Sold merchandise on account to ABC trading for 185 000. Term 3/10, n/30. Paid freight on shipment 1
200

Dec 15 Paid purchases on Dec. 08 and availed the discount

Dec 18 Sold merchandise for cash with trade discount of 3%, net amount 60 000

Dec 25 Collected receivables from ABC trading

Dec 30 Paid the following expenses:

Salaries for the month 15 000

Light and Water bills 3 800

Taxes and Licenses 6 500

Rent expense 5 000

30 300
 JOURNAL ENTRY

Dec 01 Cash in Bank 850 000

Merchandise Inventory 250 000

Furniture and Fixture 1 500 000

Service Vehicle 1 700 000

F. Anay, Capital 4 300 000

Dec 02 Purchases 500 000

Accounts Payable 500 000

Freight-in 20 000

Cash 20 000

Dec 03 Accounts Payable 30 000

Purchase returns & allowances 30 000

Dec 05 Accounts Receivable 100 000

Sales 100 000

Dec 06 Sales returns & allowances 25 000

Accounts Receivable 25 000

Dec 08 Purchases 171 000

Accounts Payable 171 000

Dec 09 Accounts Payable 500 000

Cash 500 000

Dec 10 Cash 98 000

Sales Discount 2 000

Accounts Receivable 100 000

Dec 11 Cash 116 400

Sales 116 400

Dec 12 Sales return and allowances 4 000

Cash 4 000

Dec 14 Accounts Payable 185 000

Sales 185 000

Freight-out 1 200

Cash 1 200

Dec 15 Accounts Payable 171 000

Cash 167 580

Purchase Discount 3 420

Dec 18 Cash 60 000

Sales 60 000

Dec 25 Cash 185 000

Accounts Receivable 185 000

Dec 30 Salaries Expense 15 000

Utilities Expense 3 800

Taxes and Licenses 6 500

Rent Expense 5 000

Cash 30 300
 XYZ Trading

Trial Balance

Dec. 30, 2020

Debit Credit

Cash 736 320

Accounts Receivable 35 000

Merchandise Inventory 300 000

Prepaid Expense 100 000

Land 1 000 000

Building 1 500 000

Furniture & Fixtures 1 800 000

Service Vehicle 2 700 000

Accounts Payable 530 000

Notes Payable 600 000

F. Anay, Capital 7 300 000

Sales 461 400

Sales Discount 2 000

Sale R/A 29 000

Purchases 671 000

Purchase Discount 3 420

Purchase R/A 30 000

Freight-in 20 000

Freight-out 1 200

Salaries Expense 15 000

Utilities Expense 3 800

Taxes & Licences 6 500

Rent Expense 5 000

8 924 820 8 924 820