Accounting Information Systems

Diagnostic Examination

Ro Maps sells cellphone cases to retailers in Bukidnon. He only has one vendor (in China) from whom he purchases his
entire inventory. His first month of operation is September 2021. Below are transactions of Ro Maps for the month.

Ro Maps uses perpetual inventory system and accounts for inventory using weighted average method (round of average
costs i.e. 45.7172 will be 45.72 and 45.7142 will be 45.71). Ro Maps sets doubtful accounts of 3% of accounts receivable.

PURCHASE transactions

Date Cash or Quantity Unit Cost Total Credit Terms

Accounts
Payable
September 1 Credit 1,000 units P30.00 P30,000 2/10, n30
September 10 Credit 1,500 units P28.00 42,000 2/10, n30
September 15 Cash 1,000 units P30.00 30,000 NA

Credit Sales transactions

Date Customer Quantity Unit Price Total Credit Terms
Sep 3 ABC Cellphone Store 200 units P70.00 P14,000 1/10 n30
Sep 11 CELLestine Shop 250 units P65.00 16,250 1/10 n30
Sep 16 Goonoo Enterprises 200 units P70.00 14,000 1/10 n30
Sept 20 Lyn Cellphone Shop 150 units P75.00 11,250 1/10 n30
Sep 25 Michael CP Store 300 units P63.00 18,000 1/10 n30

Cash receipts
Date Customer/Payor Particulars Remarks
Sep 11 Received payment from ABC
Cellphone Shop and
Celletine Shop
Sep 16 Pax Marketing Cash sales (200 units @
P65.00 per unit)
Sep 17 Dala Cell Cash sales (300 units @ P60
per unit)

Other transactions
September 1, Ro invested P200,000 to his business.
September 1, Ro Maps bought store furniture worth P20,000 in cash. (Useful life is 5 years no salvage value)
September 1, Paid rent in advance for 2 months, P20,000.
September 1, Paid the freight on the September 1 purchase worth P2,500 (FOB Shipping Point)
September 7, Returned 100 defective merchandise from the September 1 purchase.
September 15, Ro Maps paid salaries of employees worth P15,000.
September 15 Ro Maps paid September 1 and September 10 purchases due to the supplier of his inventory.
September 30, Ro Maps paid salaries to employees worth P15,000.
September 30, Ro Maps recorded a bill for utilities worth P5,000.

Required:
1. Create a chart of accounts with corresponding logically created account numbers.
2. Provide all the necessary entries (journal, adjusting, closing,
3. Create the following: trial balance, statement of financial position, income statement, statement of cash flows
using indirect method and statement of changes in owner’s equity.
4. Do requirements (2) and (3) but using periodic inventory system.

God bless you.