SHARLYNE K.

GUIMBUNGAN core COMPETENCY ANSWERS MODULES 1- Part

3

MODULE 1: JOURNALIZING TRANSACTIONS FOR SINGLE

PROPRIETORSHIP

A. JOURNALIZING TRANSACTIONS

Date Accounts Title Ref Debit Credit

.
Aug. 1 Cash 101 400,000
Vigan, Capital 301 400,000
To record initial investment.
2 Furniture and Fixtures 112 50,000
Cash 102 50,000
To record purchased furniture and fixture.
8 Equipment 113 100,000
Accounts Payable 201 100,000
To record purchased equipment on account.
12 Cash 102 100,000
Notes Payable 201 100,000
To record borrowed cash from bank on account.
15 Salaries expense 506 30,000
Cash 102 30,000
To record payment of salaries.
18 Advertising Expense 510 40,000
Accounts Payable 201 40,000
To record received bill.
20 Cash 102 60,000
Service income 400 60,000
To record revenue received.
21 Accounts payable 201 100,000
Cash 102 100,000
To record payment of home appliances.
22 Utilities expense 508 12,000
Cash 102 12,000
To record payment of utilities.
24 Accounts receivable 104 50,000
Service income 400 50,000
To record bills to AU.
30 Salaries expense 506 30,000
Cash 102 30,000
To record payment of salaries of employees.
Accounts payable 201 40,000
Cash 102 40,000
To record payments on aug.18.

ROZELYN M. BUYUCAN
MODULE DEVELOPER
SHARLYNE K. GUIMBUNGAN core COMPETENCY ANSWERS MODULES 1- Part
3

B. JOURNALIZING
1. Journalize the above transaction.

Date Accounts title Ref Debit Credit

.
Aug. 6 Accounts receivable 104 360,000
Sales 401 360,000
To record sales on account.
Freight out 515 22,000
Cash 102 22,000
To record freight upon destination.
8 Cash 102 250,000
Sales 401 250,000
To record sales.
10 Accounts receivable 104 288,000
Sales 401 288,000
To record cash sales.
Freight out 515 20,000
Cash 102 20,000
To record freight destination.
12 Accounts receivable 104 200,000
Sales 401 200,000
To record sales.
21 cash 102 342,000
Sales discount 403 18,000
Accounts receivable 104 360,000
To record collection of sales.

2. Determine total net sales.

Total sales (360,000+250,000+288,000+200,000)-(342,000) P1,098,000

Less: sales discount 18,000
Net sales P1,080,000

3. Determine total accounts receivable.

Accounts receivable (360,000+288,000=200,000) – (360,000) P488,000

4. Determine total freight- out

Freight out ( 22,000+ 20,000) P42,000

ROZELYN M. BUYUCAN
MODULE DEVELOPER
SHARLYNE K. GUIMBUNGAN core COMPETENCY ANSWERS MODULES 1- Part
3

5. Determine total sales discount

Sales discount P18,000

C. JOURNALIZING MERCHANDISING TRANSACTIONS

1. Prepare journal entries using periodic inventory system.
Date Accounts title Ref. Debit Credit
July 7 Accounts receivable 104 20,000
Sales 401 20,000
To record sold merchandise on credit.
8 Purchase 501 40,000
Accounts payable 201 40,000
To record purchase on credit.
9 Freight in 504 1,450
Cash 102 1,450
To record payment of shipping charges.
10 Purchase 501 40,000
Accounts payable 201 40,000
To record purchase on credit.
Freight in 504 6,000
cash 102 6,000
to record freight paid by Ortiz.
13 Office supplies 108 40,000
Accounts payable 201 40,000
To record purchase of supplies.
14 Accounts receivable 104 24,000
Sales 401 24,000
To record sold merchandise to Tagum.
Accounts payable 201 6,000
Purchase return 502 6,000
To record return merchandise from Orcadaja.
17 Cash 102 19,600
Sales discount 403 400
Accounts receivable 104 20,000
To receive payments from Lacson retailers.
18 Accounts payable 201 2,000
Office supplies 108 2,000
To record return to Dedumo Corp.
19 Cash 102 38,000
Sales 401 38,000
To record sold merchandise.
20 Accounts payable 201 40,000
Purchase discounts 503 8,000
Cash 102 32,000
To record payment of purchases on July 10.

ROZELYN M. BUYUCAN
MODULE DEVELOPER
SHARLYNE K. GUIMBUNGAN core COMPETENCY ANSWERS MODULES 1- Part
3

21 Accounts payable 201 34,000

Cash 102 34,000
To record payment on July 8 and 14.
24 Sales return 402 1,500
Accounts receivable 104 1,500
To record return on sales.

2. Prepare journal entries using perpetual inventory system.

Date Accounts title Ref. Debit Credit

July 7 Accounts Receivable 104 20,000
sales 401 20,000
To record sold merchandise on credit.
Cost of goods sold 505 20,000
Merchandise inventory 107 20,000
To record cost of sales.
8 Merchandise Inventory 107 40,000
Accounts payable 201 40,000
To record purchase on credit.
9 Merchandise Inventory 107 1,450
Cash 102 1,450
To record payment of shipping charges.
10 Merchandise Inventory 107 46,000
Accounts payable 201 46,000
To record purchase on credit.
13 Office supplies 108 40,000
Accounts payable 201 40,000
To record purchase of supplies.
14 Accounts receivable 104 24,000
Sales 401 24,000
To record sold merchandise to Tagum.
Cost of goods sold 505 24,000
Merchandise inventory 107 24,000
To record cost of sales.
Accounts payable 201 6,000
Merchandise inventory 107 6,000
To record return merchandise from Orcadaja.
17 Cash 102 19,600
Sales discount 403 400
Accounts receivable 104 20,000
To receive payments from lacson retailers.
18 Accounts payable 201 2,000
Office supplies 108 2,000
To record return to Dedumo Corp.
19 Cash 102 38,000

ROZELYN M. BUYUCAN
MODULE DEVELOPER
SHARLYNE K. GUIMBUNGAN core COMPETENCY ANSWERS MODULES 1- Part
3

Sales 401 38,000

To record sold merchandise.
Cost of goods sold 505 38,000
Merchandise inventory 107 38,000
To record cost of sales.
20 Accounts payable 201 40,000
Purchase discount 503 8,000
Cash 102 32,000
To record payment of purchases on July 10.
21 Accounts payable 201 34,000
Cash 102 34,000
To record payment on July 8 and 14.
24 Sales return 402 1,500
Accounts receivable 104 1,500
To record return on sales.
Merchandise inventory 107 1,500
Cost of goods sold 505 1,500
To record cost of sales.

D. PURCHASE AND SALES TRANSACTIONS

1. Prepare the journal entries for Geneva Store.

Date Accounts title Ref Debit Credit

.
June 5 Purchase 501 253,000
Freight in 504 4,000
Accounts payable 201 257,000
To record purchased merchandise on account.
7 Purchase 501 570,000
Accounts payable 201 570,000
To record purchased merchandise on account.
8 Accounts payable 201 15,000
Purchase returns 502 15,000
To record purchase return.
10 Accounts payable 201 257,000
Purchase discounts 503 4,760
Cash 102 252,240
To record payment of merchandise on June 5.
11 No entry
14 Accounts payable 201 570,000
Purchase discount 503 17,100
Cash 102 552,900
To record payment of merchandise on June 7.
21 Purchase 501 200,000

ROZELYN M. BUYUCAN
MODULE DEVELOPER
SHARLYNE K. GUIMBUNGAN core COMPETENCY ANSWERS MODULES 1- Part
3

Accounts payable 201 200,000

To record purchased merchandise
25 Freight in 504 4,000
Cash 102 4,000
To record payment of freight charges.
26 Accounts receivable 104 200,000
Purchase discount 503 8,000
Cash 102 192,000
To record payment due on June 21.

2. Prepare journal entries for Mules distributors.

Date Accounts title Ref Debit Credit

.
June 5 Accounts Receivable 104 257,000
Sales 401 253,000
Cash 102 4,000
To record sales of merchandise on account.
7 Accounts receivable 104 570,000
sales 401 570,000
To record sales of merchandise on account.
8 Sales returns 402 15,000
Accounts receivable 104 15,000
To record sales return.
10 Sales discount 403 4,760
cash 102 252,240
Accounts receivable 104 257,000
To record payment of merchandise on June 5.
11 Freight out 515 5,000
Cash 102 5,000
To record payment of transportation charges.
14 Sales discount 403 17,100
cash 102 552,900
accounts receivable 104 570,000
To record payment of merchandise on June 7.
21 Accounts receivable 104 200,000
Sales 401 200,000
To record sales of merchandise
25 No entry
26 Sales discount 403 8,000
cash 102 192,000
accounts receivable 104 200,000
To record payment due on June 21.

ROZELYN M. BUYUCAN
MODULE DEVELOPER
SHARLYNE K. GUIMBUNGAN core COMPETENCY ANSWERS MODULES 1- Part
3

3. Prepare journal entries of Geneva store using periodic

inventory system.

Date Accounts title Ref Debit Credit

.
June 5 Purchase 501 253,000
Freight in 504 4,000
Accounts payable 201 257,000
To record purchased merchandise on account.
7 Purchases 501 570,000
Accounts payable 201 570,000
To record purchased merchandise on account.
8 Accounts payable 201 15,000
Purchase returns 502 15,000
To record purchase return.
10 Accounts payable 201 257,000
Purchase discounts 503 252,240
Cash 102 4,760
To record payment of merchandise on June 5.
11 No entry
14 Accounts payable 201 570,000
Purchase discount 503 17,100
Cash 102 552,900
To record payment of merchandise on June 7.
21 Purchase 501 200,000
Accounts receivable 104 200,000
To record purchased merchandise
25 Freight in 504 4,000
Cash 102 4,000
To record payment of freight charges.
26 Accounts receivable 104 200,000
Purchase discount 503 8,000
Cash 102 192,000
To record payment due on June 21.

ROZELYN M. BUYUCAN
MODULE DEVELOPER
SHARLYNE K. GUIMBUNGAN core COMPETENCY ANSWERS MODULES 1- Part
3

4. Prepare journal entries of Geneva store using perpetual

inventory system.

Date Accounts title Ref Debit Credit

.
June 5 Merchandise Inventory 107 257,000
Accounts payable 201 257,000
To record purchased merchandise on account.
7 Merchandise Inventory 107 570,000
Accounts payable 201 570,000
To record purchased merchandise on account.
8 Accounts payable 201 15,000
Merchandise inventory 107 15,000
To record purchase return.
10 Accounts payable 201 257,000
Purchase discount 503 4,760
Cash 102 252,240
To record payment of merchandise on June 5.
11 No entry
14 Accounts payable 201 570,000
Purchase discount 503 17,100
Cash 102 552,900
To record payment of merchandise on June 7.
21 Merchandise inventory 107 200,000
Accounts receivable 104 200,000
To record purchased merchandise
25 Merchandise inventory 107 4,000
Cash 102 4,000
To record payment of freight charges.
26 Accounts receivable 104 200,000
Purchase discount 503 8,000
Cash 102 192,000
To record payment due on June 21.

ROZELYN M. BUYUCAN
MODULE DEVELOPER
SHARLYNE K. GUIMBUNGAN core COMPETENCY ANSWERS MODULES 1- Part
3

E. JOURNAL ENTRIES
1. Prepare journal entries of the above transaction using periodic
inventory system assuming that the merchandise inventory end
amount to 20,000 and no beginning inventory.
*beginning balances: cash- 60,000
Ace, capital- 60,000

Date Accounts title Ref debit credit

.
May 1 Purchase 501 30,000
Accounts payable 201 30,000
To record merchandise purchase on account.
2 Accounts receivable 104 28,000
Sales 401 28,000
To record sales of merchandise on account.
5 Accounts payable 201 1,500
Purchase return 502 1,500
To record credit for merchandise returned.
8 Cash 102 27,440
Sales discount 403 560
Accounts receivable 104 28,000
To record collection on account.
10 Accounts payable 201 28,500
cash 102 27,645
Purchase discount 503 855
To record payment on account.
11 Supplies 108 5,000
Cash 102 5,000
To record purchased of supplies.
13 Purchase 501 55,000
Cash 102 55,000
To record merchandise purchase.
15 Cash 102 3,000
Purchase returns and allowance 502 3,000
To record refund received on returned.
17 Purchase 501 39,000
Accounts payable 201 39,000
To record merchandise purchase on
account.
19 Freight in 504 1,500
Cash 102 1,500
To record payment of freight.
24 Cash 102 19,600
Sales 401 19,600

ROZELYN M. BUYUCAN
MODULE DEVELOPER
SHARLYNE K. GUIMBUNGAN core COMPETENCY ANSWERS MODULES 1- Part
3

To record merchandise sold.

25 Purchase 501 20,000
Cash 102 19,600
Purchase discount 503 400
To record merchandise purchased.
27 Accounts payable 201 39,000
Purchase discount 503 1170
Cash 102 37,830
To record payment to hark on account.
28 Sales returns and allowances 402 1,500
Cash 102 1,500
To record refund given for returned.
31 Accounts receivable 104 50,000
Sales 401 50,000
To record sales on account.

2. Prepare the journal entries of the above transactions using

perpetual inventory system.

Date Accounts title Ref. debit credit

May 1 Merchandise inventory 107 30,000
Accounts payable 201 30,000
To record merchandise purchase on account.
2 Accounts receivable 104 28,000
Sales 401 28,000
To record sales of merchandise on account.
Cost of goods sold 505 15,000
Merchandise inventory 107 15,000
To record cost of merchandise sold.
5 Accounts payable 201 1,500
Merchandise inventory 107 1,500
To record credit for merchandise returned.
8 Cash 102 27,440
Sales discount 403 560
Accounts receivable 107 28,000
To record collection on account.
10 Accounts payable 201 28,500
cash 102 27,645
Purchase discount 503 855
To record payment on account.
11 Supplies 108 5,000
Cash 102 5,000
To record purchased of supplies.
13 Merchandise inventory 107 55,000

ROZELYN M. BUYUCAN
MODULE DEVELOPER
SHARLYNE K. GUIMBUNGAN core COMPETENCY ANSWERS MODULES 1- Part
3

Cash 102 55,000

To record merchandise purchased for cash.
15 Cash 102 3,000
Merchandise inventory 107 3,000
To record refund received on return.
17 Merchandise inventory 107 39,000
Accounts payable 201 39,000
To record merchandise purchase on account.
19 Merchandise inventory 107 1,500
Cash 102 1,500
To record payment of freight.
24 cash 102 19,600
sales 401 19,600
To record merchandise sold.
Cost of goods sold 505 10,600
Merchandise inventory 107 10,600
To record cost of sales.
25 Merchandise inventory 107 20,000
Cash 102 20,000
To record merchandise purchase
27 Accounts payable 201 39,000
Purchase discount 503 1170
Cash 102 37,830
To record payment to hark on account.
28 Sales returns and allowances 402 1,500
Cash 102 1,500
To record refund given for returned
Merchandise inventory 107 800
Cost of goods sold 505 800
To record cost of returned merchandise.
31 Accounts receivable 104 50,000
Sales 401 50,000
To record sales on account.
Cost of goods sold 505 21,000
Merchandise inventory 107 21,000
To record cost of sales.

ROZELYN M. BUYUCAN
MODULE DEVELOPER