PDF Journal Entries Tradingdocx Compress

1
Mastering
Accounting Journal Entries

in Trading /
Merchandinsing
Business
…where the requirement is to
present the transaction
transaction entries
with brief explanation in each
case.

2
Table of Contents
Case No. Page No.

1. YAP Sportswear...............................................................................4
2. MAYANG Store................................................................................6
3. RAMIREZ Trading.............................................................................9
4. JUAREZ Trading..........................................................................13
5. OREJOLA Store.............................................................................16
6. SINANGOTE Trading.......................................................................18
7. OLIVERA Dolls and Guns Store......................................................21
8. ORIOL Enterprise................................................................23
9. DITAN Company………………………………………………………………………………………2
Company………………………………………………………………………………………2 6
10. DOLOR Enterprise.........................................................................29
11. PERALTA Convenience Store....................................................32
12. SAN MIGUEL Merchandising..........................................................35
13. IMACULATA Trading……………………………………………………………………………….3

Trading……………………………………………………………………………….3 7
14. DATO-ON Company………………………………………………………………………………….3
Company………………………………………………………………………………….3 9
15. ESTRADA Carpentry Shop...........................................................42
16. MACEDA Trading Enterprises.............................................44
17. AGANA Company.....................................................................48
18. PALOR Sari Sari Store.................................................................49
19. CONCON Trading.........................................................................51
20. SANTIA Farms.............................................................................54

3
21. QUINTO Carpets..........................................................................57
22. BERTES Industry..................................

Industry........................................................................
......................................60
60
23. PIDLAOAN Merchandising...............................................................62
24. BISDA Commercial.......................................................................64
25. ESPINO Trading....................................................................67
26. DIPATUAL Locca Trading...............................................................69
27. SALONGA Boutique......................................................................71
28. GONZAGA Trading....................................................................73
29. BULANADI - Trading......................................................................75
30. TORRES - Hardware Store.............................................................77
ASSIGNMENT to be submitted on or before

before September 10, 2018
2018
1. Use Two Columnar Book

2. Do at least 12 cases - transaction journals with brief explanations and
computation, if needed, present below the explanation portion. Do not forget to
skip a row-blank before next entry.
3. Account Amendments, if needed.
4. On cases with “VAT”, change it to NON-VAT.
NON-VAT.
5. Present Trial Balance, at next part-page, after completing the journal Entries.
6. Skip two page blank before starting a new case.

7. Additional Cases to be provided by the following on or before September
September 6,
2018:
1. GUITERREZ, Justine Joyce Sayas
2. MANSAN, Jane Catherine Pinigat
3. MAUNGCA, Reham Pandi
4. REYES, Jan Lyca Marie Mendigorin
5. TEMPORAL, Ann Louise Dillo
6. TEODOSIO, Apryl Rose Roble
7. VALDERAMA, Jhasmine Izabel Ortiz
8. VILLESIS, Adrian Lester Saenz

4
8. 12-case set-up will be as follows:
WITHIN - for those in Cases 21 to 30, exchange, except your own AND add two
from any of the Additional cases to be provided.
WITHIN - for those in Cases 11 to 20, exchange, except your own AND add two
WITHIN - for those in Case 01

0 1 to 10, exchange, except your own AND add two

5
PZA SPORTSWEAR
The PZA Sportswear, a retail clothing shop, asked you to prepare journal
entries for the following transactions:
MARCH
1- Z. Aceret invested P150,000 in the business
1-Purchased merchandise on credit from Rive Company, P3,900; terms

2/10, n/30, FOB destination, freight collect. Shipping charges on
merchandise received P200
2- Purchased merchandise on credit from EXO company, P4,500; terms:
2/10, n/30, FOB Shipping Point, Freight Collect. Shipping charge, P300
3- Sold merchandise on credit to Short East, terms, 2/10, n/60, P3,000
4- Paid utilities expense for the month, P900
5- Z. Aceret invested a three sewing machine in the business, P45,000
6- Purchased merchandise on credit from North Company, P9,000. Terms

2/10, n/30, FOB Shipping Point, Freight Prepaid. Shipping charge, P600
7- Purchased merchandise on credit from Nus Co., P6,000. Terms 1/10,

n/30, FOB Shipping Point, freight collect. Shipping Charge, P250
8- Purchased office supplies from Russo Co., P2,400. Terms: n/10
9- Cash sales, P2,000
10- Sold merchandise on credit to Steve Ngo, terms 2/10, n/30, P2,500
11- Paid Rive Co. for purchase, May 1
12- Returned for credit P600 of damaged merchandise from Nus Co.
12- Paid EXO company for purchases, May 2
13- Received check from Short East for his purchase of merchandise

6
14- Returned a portion of the office supplies received on May 8 for credit
because the wrong items were received, P400
P40 0
15- Sold merchandise for cash, P1,800
16- Paid North Co. for purchase of May 6
17- Paid the Maintenance Helper for cleaning the room of the employees,
P500
18- Paid salaries of the employee, P2,000
19- Paid Nus Co. the balance from transactions of May 7 and May 12
20- Received payment in full from Steve Ngo.
21-Paid the following bills, Meralco Bill, ₱1,800; Water Bill, ₱870
21- Paid the rent for the month, P2,900
23- Hired a delivery man to deliver the merchandise easily to your clients
with a monthly salary of P2,000
24- Paid Russo Co. for purchase of May 8
25- Purchased merchandise on cash from SVT Corp., P7,500
29- Z. Aceret withdraw P10,000 for personal use
30- Sold merchandise for cash, P5,000
30- Merchandise inventory end, P3,000.
Chart of Accounts:
Cash/ Accounts Receivable/ Office Supplies/ Sewing Machine/ Accounts

Payable/ Z. Aceret, Capital/ Z. Aceret, Drawings/ Purchases/ Purchase
Discount/ Purchase Returns/ Sales/ Sales Discount/ Freight In/ Rent
Expense/ Utilities Expense/ Salaries Expense/ Maintenance Expense

7
ALABASTRO STORE
The transactions of J. Alabastro for the month of March ,2018 were as
follows:
March
1 Began business under the trade name Alabastro Store with cash of
₱65,000 and
merchandise of₱5,000.
of₱5,000.
1 Rent of store space for March was paid, ₱2,000.

₱2,000.
1 Bought furniture and equipment from J &C Company, ₱2,000. Term

2/20,n/30.
3 Bought merchandise on account from Ali Mercadejas, ₱50,000, invoice

no. X-102.
Terms: 2/5, n/30.
6 Sold merchandise as follows:
Cash Sales – Invoice 101, ₱6,000
Zarrick - Invoice 102,
Terms: 2/15, n/30. ₱44,000
8 Bought for cash, merchandise from RASMA Company, Invoice 6769,

₱2,000.
₱2,000.
9 Paid general expenses, ₱250.
10 Sold on account to Andra Lopez, Invoice no. 103, ₱5,000. Terms:

1/10,n/40.
15 Paid wages of employees, ₱5,000.

8
17 Bought merchandise on account from Snow Galvez, Invoice noa-30,

₱6,000,n/60.
₱6,000,n/60.
17 Paid Mabills Brokerage ₱120 for the delivery of the above purchased.
purchased.
17 Received a credit memo no.33 from Ali Mercadejas, ₱800 for the
merchandise
returned to him.
18 Paid in full the account due to Ali Mercadejas, less the 2% discount
(₱50,000-
50,000-₱800)
₱800)
(100% -2%)
-2%) = ₱48,216.
₱48,216.
20 Issued credit memo no.1 to Zarrick, ₱200 for the merchandise

returned.
21 Paid in full tthe

he account due to J&C Company, less the 2% discount.
21 Collected in full the account due from Zarrick.
22 J. Alabastro withdrew ₱100 for his personal use
22 Cash Sales per invoice no.104. ₱2,500.

₱2,500.
25 Bought merchandise on account from Ali Mercadejas, invoice no, -

100, ₱8,000Terms: n/60.
25 Sold on account to Zarrick, invoice no.105, ₱3,500. Terms :1/10,n/30
25 Paid general expenses, ₱50.

₱50.
28 Cash sales per invoice no. 106, ₱1,800.

₱1,800.
28 Cash purchases from RASMA Comp

Company,
any, invoice no. 7011, ₱1,200.
29 Purchase merchandise on account,₱100,000. Terms 3/10,n/30
30 Paid another general expenses,₱50.

expenses,₱50.
31 Wages paid, ₱5,000.

₱5,000.
31 Utilities expenses paid, ₱1,000.
31 Cash sales per invoice no

no.107,
.107, ₱1,000.

9
31 Physical count of merchandise inventory end, ₱5,000.
Suggested Transaction Accounts:
Cash/ Accounts Receivable / Merchandise Inventory / Furniture and

Equipment / Accounts Payable / J.Alabastro,Capital / J.Alabastro,Drawing /
Sales / Sales Discount / Sales Returns and Allowances / Purchases /
Purchase Discounts / Purchase Returns and Allowances /Freight in / Rent
Expenses / Wages Expense / Utilities Expense / General Expense.

10
ASUNCION TRADING
Agatha Asuncion put up a merchandising business under the trade
name Asuncion Trading. The end of fiscal year is June 30. During the month
of June the following transactions occurred.
Assets Owner’s Equity
101 Cash 301 Asuncion, Capital
102 Accounts Receivable 302 Asuncion, Drawings
103 Inventory Revenue
104 Delivery Van 401 Rent Income
105 Office Equipment 402 Sales
101 Prepaid Rent 403 Sales Returns
102 Prepaid Insurance 404 Sales Discount
103 Prepaid Advertisement Cost & Expenses
104 Office Supplies 501 Freight-In
105 Furniture & Fixture 502 Purchases

105 Computer 503 Purchase Returns
Liabilities 504 Purchase Discount
201 Accounts Payable 505 Permits & Licenses
202 Notes Payable 506 Salaries Expense
203 Loan Payable 507 Utilities Expense

11
June
1 The owner invested ₱300,000 the following:

following:
Cash ₱500,000
₱500,000 Merchandise ₱50,000
₱50,000
1 Paid municipal licenses & permits, ₱1,260.

₱1,260.
1 Bought office equipment from Royal Equipment, ₱46,000 terms, n/15.
1 Paid freight on the purchase

purchase of equipment ₱2,000.
₱2,000.
1 Paid the rent for 3 months in advance ₱45,000.

₱45,000.
1 Bought office supplies from Cunanan supply, ₱1,250 terms cash.

cash.
1 Bought merchandise from Zebra trading, ₱40,000 terms 2/10, n/30 and
paid freight of ₱1,600
₱1,600
1 Paid for the 2 months

months advertisement in the newspaper ₱10,000.
₱10,000.
2 Cash purchases ₱100,000 with trade discount of 10%.

10%.
3 Cash sales, list price of ₱86,000 with trade discount of 4%.

4%.
5 Bought office tables and chairs from Luca's furniture, ₱42,650 terms 1/10,
n/30.
6 Returned to Luca's Furniture defective tables costing ₱2,650 (see

transaction for June 5).
7 The owner invested his computer in the business, ₱75,000.
8 Bought merchandise from Alpha Trading, ₱25,000 terms 2/10, n/30 and
paid freight of ₱800.
₱800.
10 Sold merchandise to Cruz Enterprises ₱36,500 terms 10/10, n/30 and

paid freight of ₱920.
₱920.
11 Sold merchandise to Andaya Company ₱12,500 terms n/60.

n/60.
12 Cruz Enterprise returned defective goods, ₱6,500 (see transaction dated

June 10).
15 Paid the following:

12
Sales Salaries ₱12,000

₱12,000
Office Salaries ₱18,000

₱18,000
15 Borrowed money from PNB, ₱200,000 payable in 5 years.

years.
15 The owner withdrew cash ₱10,000 for personal use.

use.
15 Bought delivery van ₱850,000 terms 20% down and the balance payable
in one year.
16 Cruz Enterprises made a partial payment of ₱20,000 (see transaction

dated June 10).
16 Sold merchandise to Lion Trading with a list price of ₱25,000 terms 8%

TD.
17 Issued a 60-day
60-day 6% Note to Leopard Trading, ₱8,000
₱8, 000 for merchandise
bought.
18 Bought merchandise from Tigers

Tigers Co. ₱20,000 terms n/60.
n/60.
19 Sold merchandise to Abenson, ₱34,000 terms 3/5, 1/20, n/40.

n/40.
19 Bought from Elephant Trading ₱22,000 terms 3/15, 1/20, n/40.

n/40.
20 Cruz Enterprises paid his account in full (see transaction dated June 10,
12 & 16).
21 Lion trading
trading made a partial payment of ₱10,000 (see transaction dated
June 16).
21 Abenson returned merchandise ₱4,000 (see transaction dated June 19).

19).
21 Returned to Elephant Trading merchandise worth ₱2,500 (see transaction

dated June 19).
23 Abenson made a partial payment of ₱11,000 (see transaction dated June

19).
25 Sold to Alhambra merchandise, ₱26,000 terms 1/5 and n/EOM.

n/EOM.
26 Received a 30-day 6% note from Litonjua Co. for merchandise sold

₱6,000.
27 Received a cash refund for defective

d efective merchandise returned, ₱2,000.
₱2,000.

13
28 Gave a cash refund to a customer, ₱1,200 for defective merchandise

returned.
29 Abenson paid his account in full (see transaction dated June 19, 21 &
23).
29 Bought merchandise from Abra Trading, ₱27,000 terms 3/5, n/10.

n/10.
30 The owner withdrew merchandise

merch andise for his personal use, ₱12,000.
₱12,000.
30 Paid one year insurance, ₱24,000.
30 Paid the following expenses:
Sales Salaries ₱12,000

₱12,000 Office Salaries ₱15,000
₱15,000
30 Paid the following bills:
Meralco Bill ₱11,800

₱11,800 Water Bill ₱8,700
₱8,700
30 A tenant paid two months rental in advance, ₱4,000.

₱4,000.
30 Cash Sales, ₱50,000 with trade discount of 8%.

8%.
30 Paid the account of Abra Trading in full (see transaction dated June 29).
30 A physical count of inventory items showed merchandise amounting to

₱3,700

14
SOPHIA TRADING
Using a two-column journal, journalize the May transaction of Sophia
Trading a retail store owned by Sophia Bernabe.
May
1 Purchased merchandise from Rizal Trading Co., P5,500, terms: 2/5,

n/30.
2 Purchased a typewriter and an adding machine from Automatic Center

for cash, P29,890.
3 Complained to Automatic Center due to some minor defects on the

typewriter. A refund of P1,000 was received.
4 Bought P30,000 of merchandise from Pardilla Co. for cash
6 Purchased Merchandise from Rose Merchandising, P22,000, terms:2/10,

n/30
7 Paid the rent for the month to LLB realty, P4,500.
7 Sophia Bernabe withdrew from the business merchandise costing P800,

for her personal use.
8 Purchased merchandise from Cuenca & Sons and gave a 60-day, 6%

note, P3,500.
10 Paid the account with Rizal Trading Co. in full.
10 Refunded C. Dizon P250 for the merchandise he returned.
11 Corona Supply Co. sent a bill for P450 for the supplies purchased on
credit.
12 Acquired Merchandise from Bili Store and paid P4,890 cash.

15
13 Sold merchandise to D. Tiglao on account, P3,500, terms:2/10, n/30.
14 Paid Rose Merchandising in full.
14 Purchased merchandise worth P25,000 from Mabuhay Corporation,

paying P5,000 cash, balance 2/10,n/30,
15 Paid the freight on the merchandise purchased, P1,250.
16 Sold merchandise to Rina Ramos on account, P4,800.
17 Cash Sales, P97,900.
18 Paid the freight on shipment for above sales, P3,450.
18 Received a 60-day, 6%
6 % note from Rina Ramos in full settlement
set tlement of her
account.
21 Purchased merchandise on credit from Rizal Trading Co., P16,110.
22 Collected the account of D. Tiglao in full.
22 Returned damaged merchandise to Rizal Trading Co., worth P580. A

credit memo for the same amount was received.
23 Paid the account with Rizal Trading Co., to apply on account, P1,000.
24 Paid the bill of Corona Supply Co. dated May 11.
25 Bought a delivery panel from Universal Motors, P200,000, terms: 50%

down, balance 2/5, n/15.
28 Paid the account with Rizal Trading Co. in full,

28 Paid light and water bills for the month, P1,280.
29 Sophia Bernabe increased her investment in cash P150,000.
30 Paid the account with Universal Motors in full.
30 Gave a 30-day, 6% note to Mabuhay Corporation in settlement of the

amount due them.
30 Paid salaries for the second half of the month, P8,000.
31 Physical Inventory amounted to P1,000

16
The chart of account showed:
Account titles No.
Cash.................................................11
Sales................................................41
Accounts Receivable...........................12
Sales Discount...................................42
Notes Receivable................................13
Sales Returns & Allowances..................43
Delivery Equipment.............................15
Purchases...........................................51
Office Equipment.................................17
Purchase Discounts..............................52
Accounts Payable................................21
Purchase Returns & Allowances..............53
Notes Payable......................................22
Freight-In............................................54
Sophia Bernabe, Capital........................31
Rent Expense.......................................61
Sophia Bernabe, Drawing......................32
Office Supplies Expense.........................62
Salaries Expense...................................63
Freight-Out..........................................64
Light & Water Expense..........................65

17
Borras' Store
The following transaction were completed during April,2015.( Assume

that the company is a non-VAT registered business.)
April
1- Miss Borras made a cash investment of P20,000.
2- Purchased furniture from Ang's Furniture Mart P13,400. Terms: 2/10,
n/30.
3- Cash sales amounted to P27,500.
4- Sold to Rolling Bookstore magazines costing P19,000.
5- Bought merchandise from City trading P91,715,Terms: 2/10, n/30.
6- Sold goods on account to Auring Cold Store P6,160.
7- Paid for gas and oil, P336.
8- Cash sales amounted to P14,000
9- Paid for repairs and maintenance of jeep, P500.
10-Paid the salary of the employee, P15,000.
11- Sold merchandise on account to Arrow Co. for P15,355, terms:

2/20, n/40.
12- Returned P1,285 worth of defective merchandise to City Trading.
13- Arrow Co. returned P1,480 worth of defective merchandise.
14- Sold merchandise for cash P6,263.
15- Purchased supplies on account from National Bookstore, P4,800.
16- Sold merchandise for cash to Emma, P5,000.
18- Emma returned P800 worth of defective merchandise. A cash refund

was given to her.
21- Paid City Trading in full.

18
22- Sold Merchandise on account to Villar for P9,500, terms 2/10, n/30
23- Paid in full National Bookstore.
23- Paid P10,000 for the work completed on accounts.
24- Arrow Co. paid in full its April 4, account less the returned made on
April 8.
25- Received P50,000 cash for sales.
26- Paid P500 for utilities.
26- Purchased office supplies P20,000 on account.
27- Ms. Borras made a withdrawal of P25,000.
28- Sold merchandise on account to Dello Trading for P2,000. Terms:

2/5,n/30.
30- Paid P500 for telephone and Meralco bills.
30- Cash sales amounted to P3,000.
31- Merchandise Inventory end, P2,000.
Cash/ Accounts Receivable / Merchandise Inventory / Office

supplies/Furniture and Fixtures/ Accounts Payable / Borras, Capital / Borras,
Drawing/ Sales / Sales Discount / Sales Returns and Allowances / Purchases

/ Purchase Discounts / Purchase Returns and Allowances /Repair and
maintenance expense / Salaries Expense/ Gas and oil expense/ Utilities
Expense

19
Briones Trading
The following selected transactions occurred during the month of October for
Briones Trading
Oct
1 Ms. Briones invested the following:
Cash ……………………………………………………….P250,000
……………………………………………………….P250,000
Merchandise Inventory ………………………...P50,000

………………………...P50,000
Equipment ………………………………………………P45,000
1 Bought goods costing P6,300 on credit from Marimar Trading,
terms 2/10, n/30
2 Sold merchandise on account to Billy Trading, P5,000, terms 3/10
EOM
3 Paid freight on the purchase made last October 1, P300
4 Sold merchandise for cash P12,600

4 Paid freight on above sales, P256
5 Purchased merchandise from Eastern Co., P40,000
6 Received a 30-day 6% note from Cortez for merchandise sold,
P6,000
6 Bought tables on account from Lourdes Furniture, P4,000, terms
3/10, n/40
7 Cash sales, P12,500

20
8 Cash purchases, P8,400
8 Bought goods from Zorro Trading, P10,000, terms 2/10 EOM
8 Issued a 60-day 6% note for P2,000 for merchandise bought
from Oca Trading
10 Bought goods from Alex Company, P7,000, terms 3/10, 2/15,
n/45
11 Sold goods to Costa Enterprises, P11,000, terms 1/10, n/30
12 Received a cash refund for merchandise returned to a supplier,
P650
13 Gave a cash refund to a customer for defective merchandise
returned, P800
14 Bought merchandise from Rumars with a list price of P10,000,
terms 2/10, n/30 with trade discount of 5% and 2%
21 Collected the account of Costa Enterprises in full (see transaction
dated Oct. 11)
21 Paid the account of Alex Company in full (see transaction dated
Oct. 10)
25 Paid utilities expense, P230
25 Returned defective tables to Lourdes Furniture (see transaction
dated Oct. 6), P500
25Returned defective merchandise to Zorro Trading P200 (see
transaction dated Oct. 8)
27 Paid the account of Zorro Trading in full (see transactions dated
Oct. 8 and 25)

21
28 Collected the note of Cortez together with the interest with the
interest (see transaction dated Oct.6)
28 Paid the note issued to Oca Trading in full together with the
interest (see transaction dated Oct.8)
29 Billy Trading returned goods, P1,000 (see transaction dated
Oct.2)
30 Billy Trading paid its account in full (see transaction dated Oct. 2
and Oct. 29)
30 Paid salaries of assistant, P800
31 Physical inventory count amounted to P1,500
Chart of Accounts
Cash / Accounts Receivable / Merchandise Inventory / Equipment / Furniture

& Fixtures / Accounts Payable / Briones, Capital / Interest Income / Sales /
Sales Returns / Sales Discount / Purchases / Purchase Returns / Purchase
Discount / Freight in / Salaries
Sal aries Expense / Utilities Expense / Freight out /
Interest Expense

22
Dolls and Guns Store
A. Cabuso the owner of dolls and guns store, had the following transaction
during the month of December 2099
Dec.
1 A. Cabuso start the business with the stock of merchandising inventory

costing €55000, calculator €1600, typewriter €20000
€20000 and cash of €30000.
2 Dolls graveyards bought €30000 cost of goods in cash

cash
3 paid the rent of the store for 3 months €18000
4 sold the merchandise to chucky store €20000. Terms 3/10, 2/20, n/30
n/30
5 cash, sales €15000

€15000
6 bought supplies costing €3000 cash
7 Dolls and guns bought dolls to Saw Co., €50000 FOB Shipping point Terms
2/10, n/30
8 cash, sales €5500
9 Chucky returned defective goods €650
10 Annabelle trading bought €21000 goods. FOB Shipping point Term 2/10,
n/30
11 A. Cabuso, withdraw €25000 for
for personal use
12 purchase additional merchandise for cash €38000
13 chucky stores settle its account in full
14 Zomboss store purchase €15000 cost of goods. FOB Shipping point

Terms 2/10, n/30
15 helper agreed to get half of salary, €1500 on December 30
16 Dolls and guns borrowed €20000 to Unibank for additional investment

investment

23
17 Annabelle trading paid €6000 as a partial settlement of its account
18 Zuni doll bought €20000 goods. Terms 2/10 n/30
19 cash sale €11500
20 Annabelle settles its account in full
21 Zuni doll returned €1000 cost of goods. And received a €5000 cash as a partial
settlement of its account
22 cash, sale €30000

€30000
23 received from voodoo merchandising a €10000 60-day

60 -day 6% note as
payment for merchandise bought
24 Zuni doll emailed its settlement of its account
25 A. Cabuso borrowed €30000 to Ubank for personal use

use
26 cash sale €5000
27 Zomboss store settle its full accounts
28 emails received 80% as a payment from Zuni doll and the 20% is
expected to be uncollectible account
29 Paid Saw Co., in full to settle its accounts
30 paid utility bill €1200 and the salary of the helper

helper
31 Physical inventory of Merchandise Inventory at the end is €3,000

€3,000
Chart of Accounts
Cash, accounts receivable, notes receivable, merchandise inventory, prepaid

rent, supplies, allowance for bad debt, typewriter, calculator, Bank loan, A.
Cabuso, capital, A. Cabuso Drawing, purchase, sales, sales discount, sales
return and allowances, bad debt, salaries expense, utilities expense

24
K.M CALINAWA
C ALINAWAN
N ENTERPRISE
The following transaction took place during May for K.M Calinawan
Enterprises- a 10% VAT registered merchandise business. The enterprise’s
suppliers are all 10% VAT registered. (Included in the transaction).
MAY
1 Invested cash P50,000 and Delivery equipment amounting to P24,000.
Purchased store furniture and fixtures by issuing a 10-day promissory note

to the VAT registered supplier, P16,500.
2 Purchased merchandise P9,900. Terms: 1/10, eom.
3 Sold merchandise to Toothless Trading P16,500, under the following

terms: 50% cash down, balance on account, 2/10, n/30.
4 Purchased merchandise with List Price of P18,000. Terms 5, 10 cash plus

10% VAT.
Paid delivery bill to a common carrier for P150.
5 Khaila Mae Purchased Furniture and Fixtures to Ex-O trading P5000 in cash
6 Purchased store equipment from Bilikayo Trading, P12,000. Terms 2/10,

n/30.
7 Sold merchandise P15,000 to Sment on account Terms: n/30
8 Received from Toothless Trading defective merchandise sold.
Issued a credit memo in the amount of P660
9 Ordered furnit
furniture
ure to Furnituremoto ttrading
rading P2000 TERMS: COD.
10 Paid delivery b
bill
ill for the furniture ordered received today P210.
11 Paid the amount due to the supplier on May 2 purchases.
Received an allowance from Bilikayo Trading, P800. (VAT included)

25
Khaila Mae took merchandise costing P1,500 for personal use.
Paid the promissory note due today.
12 Toothless Trading, made a partial payment of it’s account, P5,000.

P5,000.
13 Billed a customer for merchandise sold for P11,000. Terms: 2/10,

n/30.Paid a P100 to a stand by helper foe the delivery of the merchandise.
14 Khaila Mae loan from the bank issuing a 20-day promisorry note to be
used in the business P 5000.
15 F.M Enterprises purchased P2000 to KM Calinawan enterprise TERMS:

2/10, n/30
15 Settled the Full payment of Sment.
16 Paid the amount due to Bilikayo Trading.
Received a 15-day promissory note from customer, P16,500, for the

merchandise sold.
17 Purchased Merchandise P20,100 for cash.
18 March 13 customer made a 50% payment.
20 Billed YG ent. for P27,500 for merchandise so

sold,
ld, Terms 2/10, n/30.
21 KM Calinawan enterprise billed Mr. JYP for the sold merchandise

amounting to P10,000 Terms: n/30.
22 Merchandise were purchased to Starship Ent. P30,000 for cash.
23 March 13 customer, who made partial payment on May 18 settled it’s

account.
24 Purchased merchandise for cash amounting P10,000.
25 Purchased merchandise from Big hit trading P5,500. Terms: 500 cash
down, balance in 6 days.
26 FM enterprise made partial payment.
27 last transaction paid its account in full.
28 YG ent paid 50% of the account.

26
30 Khaila Mae made an additional investment on merchandise amounting to

P4,500.
31 Paid the amount due to Big hit trading.
Received the full collection from YG Ent, who made a partial payment on
May 28.
Received payment for the promissory note due today.
31. At the end of the month the accountant discovered P21,000 merchandise
inventory on hand.

27
Caps Company
Listed below are the January 1, 1998 account balances of the Caps
Company:
110 Cash P 33,000
120 Accounts Receivable 192,000
130 Merchandise Inventory 413,000
140 Supplies 51,000
150 Prepaid Insurance 48,000
160 Land 460,000
170 Building 1,750,000
175 Accumulated Dep’t
Dep’t-Building
-Building 350,000
180 Equipment 2,130,000
185 Accumulated Dep’t

Dep’t-- Equipment 630,000
210 Accounts payable 180,000
220 Salaries Payable
230 Mortgage Payable 2,600,000
310 Caps Capital 1,569,000
320 Caps withdrawal
330 Income Summary
410 Sales
420 Sales Returns and allowances
430 Sales discount
510 Purchase
520 Purchase Returns and allowances
530 Purchase Discount
540 Transportation In
610 Salaries Expense
620 Supplies Expense
630 Insurance Expense
640 Dep’t Expense – Building
650 Dep’t Expense – Equipment
660 Transportation Out
670 Advertising Expense
680 Interest Expense

690 Miscellaneous Expense

28
P 5,257,000P5,257,000
During the month of January 1998, the following transactions occurred:
Jan
1 Collected P 113,000 from the customers on account.
2 Paid P64, 000 of accounts due less discounts of 3%
4 Purchased Merchandise, P170, 000. Terms: FOB Shipping point;
3/10, n/30
5 Sold Merchandise on accounts to Paul’s Company, P270, 000.
Terms:FOB shipping point; 2/10 n/30.
7 Paid for the advertising for the month of February, P 6,000
7 Sold Merchandise for Cash, P 250,000
8 Paid the amount due from January 4 transaction
9 Paid Iloilo freight P4, 000 for delivery merchandise last January 4
10 Received returns from the Paul’s Company P4, 000000
12 Received payment from the Paul’s Company less returns and
discounts
14 Paid P26, 000 interest on the mortgage payable
15 Paid Salaries, P51, 000
16 Sold Merchandise on account to Eren’s Company, P392, 000000
18 Paid P4, 000 freight charges on the sale of January 16
19 Acquired supplies for cash, P21, 000
20 Purchased P125, 000 of merchandise from Marl’s Company on
account. Terms: FOB Destination; 3/10
22 Paid P7, 000 miscellaneous expense
23 Received payment from the Eren’s Company
Company
24 Purchased P373, 000 of merchandise on account from John
Company. Terms: FOB shipping point; 3/10, n/30
24 Paid Tzuyu’s Oppa Express, P9, 000 freight of delivery merchandise
acquired from John Gragas
25 Sold Merchandise to Minari Company on account, P420, 000.
Terms: FOB Shipping point; 2/10, n/30
26 Received returns from Minari Company, P71, 000
27 Purchased P160, 000 of merchandise on account from KrisKros
28 Mr. Caps Withdrew P400, 000 from the business.

29
28 Returned merchandise purchased from John Gragas on January 24,

P25,000
29 Purchased P100, 000 of merchandise to Nabongs Company on
account, Terms: FOB shipping point; 3/10, n/30
30 Purchased P50, 000 of merchandise on account to Sana’s Company
on account Terms: FOB Destination point; 5/10, n/30
30 Purchased P150, 000 of merchandise on account from Cena
31 Michael Bought a Wine in France
31 Physical inventory amounted to P23,000.

30
LEILA Enterprise
January 19A
2 Leila invested the following assets:

Cash…………………………………………..P150,000.00
Cash………………………………………….. P150,000.00
Merchandise…………………………………..50,000.00
Merchandise………………………………….. 50,000.00
Furniture and Equipment………………30,000.00

Equipment………………30,000.00
P230,000.00
2 Bought store and office furniture from Hills Bros. in cash, P15,000.00.
3 Paid the month’s rent, P5,000.00.

P5,000.00.
3 Merchandise bought from Western Co., P45,000.00.
5 Merchandise bought from Eugene and Torre, P40,000.00. Terms:

2/10, n/30.
6 Sold to Masagana, P20,000.00. Terms: 2/10, n/30.
8 Paid freight on purchases, P500.00.
8 Paid in full the account to Western Co.
8 Sold to Zoilo Cruz, P10,000.00. Terms: 20-day, 6% note.
10 Bought office furniture from Hills Bros., P20,000.00. Terms: 10-day,

6% note.
10 Bought merchandise from Tito de Leon, P7,000.00. Terms: 2/10, n/30.
10 Paid salesman’s traveling expenses, P500.00.

P500.00.
10 Sold to Rowena, P10,500.00. Terms: 2/10, n/30.
11 Received full payment of account from Masagana.
11 Sold to Baby Pinpin, P17,000.00. Terms: 3/10, n/30.
13 Baby Pinpin returned merchandise, P2,00.00, which was accepted.

31
15 Paid salesmen’s salaries, P1,500.00.

P1,500.00.
15 Paid in full the account to Eugene and Torre.
15 Bought merchandise from Western Co,. P10,000.00. Terms: 2/10,

n/30.
16 Sold to Masagana, P17,000.00. Terms: 2/10, n/30.
17 Returned merchandise to Western Company billed on the 15 th at

P2,000.00. This was accepted by the seller.
18 Paid janitor’s salary, P500.00.

P500.00.
20 Paid in full the note issued to Hills Bros.
20 Paid in full the account to Tito de Leon.
20 Paid in full the account to Western Company on the 15th.
22 Received full payment of account from Baby Pinpin.
22 Paid for the freight on goods bought on the 15th, P500.00, FOB
destination.
23 Gave an allowance to Masagana, P1,000.00, for defective goods

delivered to it on the 16 th.
24 Bought merchandise from Tito de Leon, P10,000.00. Terms: 20 and

10, 2/10, n/30.
25 Sold to Baby Pinpin, P16,000.00. Terms: on account.
26 Received full payment of account from Masagana for the sale on the
16th.
28 Collected in full the note received on the 8th.
29 Bought merchandise from Eugene and Torre, P15,000.00. Terms: 3%,

10 e.o.m.
31 Paid salaries of office employees, P2,000.00 and of salesmen,

P1,500.00.
31

32
Use the following accounts:
Cash; Accounts Receivable; Notes Receivable; Merchandise Inventory;

Office Furniture; Equipment; Store; Accounts Payable; Notes Payable; Leila,
Capital, Interest Income; Sales; Sales Discount; Sales Returns And
Allowances; Purchases; Purchase Discount; Purchase Returns and
Allowances; Freight In; Rent Expense; Salaries Expense; Interest Expense;
Traveling Expense

33
SHUBASHUSHU CONVENIENCE STORE
Shubashushu convenience store began business on July 01 of the current

year with an investment of P20,000 cash by the proprietor, Ms. Chryzelle De
Leon. You are asked to record the transactions of the business for the first
two months of operations. Use a general journal.
July
01 – Deposited cash investment of the proprietor.
02 – Paid taxes and licenses amounting to P450.
03 – The owner made an additional investment of P100,000

P10 0,000 worth of
merchandise inventory in the business.
04 – Purchased store furniture from Zachary Furniture Shop for P4,500.

P4, 500.
Terms: 2/10, n/30
05 – Purchased merchandise from Sebastian Manufacturing Corporation for

P8,000. Terms: 2/10, n/30
06 – Cash sales for the week amounted to P1,200.
07 – The owner made an additional investment of P15,000 cash in the

business.
09 – Sold merchandise to Todd Xavier Tailoring for P1,500. Terms: 1/5,

n/20.
10 – Paid delivery charges for the above sale, P75.
11 – Purchased merchandise from Sun International Company for P12,500.

Terms: less 10%, a 30-12% promissory note for P6,000 and the balance
2/10, n/30.
13 – Paid freight charges for the above purchase, P125.

34
13 – The owner made an additional investment of P150,000

P15 0,000 worth of
merchandise inventory in the business.
14 – Collected in full account of Todd Xavier Tailoring.
16 – Paid in full account with Sebastian Manufacturing Corporation.
18 – Cash purchases amounted to P3,200.
19 – Freight paid on the above cash purchases, P120.
25 – Received credit of P250 from Zachary Furniture Shop as allowance for

slight defects in the office furniture bought last July 04.
30 – Cash sales amounted to P150,000.
30 – The owner withdrew personal use cash of P500

P50 0 and merchandise items
costing P400.
30 – Paid wages for the month, P12,500.

August
01 – Hired an employee with a monthly wage of P1,000
04 – Paid in full account with Zachary Furniture Shop.
10 – Discounted our own 60-15% promissory note for P10,000 with the
bank.
11 – Paid in full our note to Sun International Company plus interest due
therein.
14 – Returned defective merchandise items bought for cash last July 18 and
received a cash refund of P280.
20 – Purchased merchandise from Bok Joo Domestic Company for P12,500.

Terms: Less 10%, a 30-12% promissory note for P6,000 and the balance
2/10, n/30.
26 – Cash purchases amounted to P8,500.
28 – Freight paid on the above cash purchases, P250.
30 – Cash sales amounted to P100,000.

35
31 – Physical inventory amounted to 25% of the inventory.
Suggested chart of accounts
Cash / Accounts Receivable / Merchandise Inventory / Furniture & Fixtures /

Accounts Payable / Notes Payable / Loan Payable / C. De Leon, Capital / C.
De Leon, Withdrawals / Sales / Sales Discount / Purchases / Purchase
Returns and Allowances / Freight In / Wages Expense / Utility Expense /
Taxes & Licenses / Freight Out

36
Isabel Merchandising
Merchandising
The following data for December 2001 for Isabel Merchandising’s first month
of operations.
Dec.
1 Isabel Dela Cruz invested P35,250 cash, P42,000 of store furniture

andfixtures, and a P36,000 store equipment to start the business.
2 Bought store supp

supplies
lies for P2,500 cash.
3 Bought merchandise for cash, P8,700. FOB Destination.
4 Merchandise was purchased for cash, P54,000; FOB shipping point

freight collect.
5 Purchase merchandise for cash, P14,000.
5 Paid freight on the above sale, P300.
6 Paid freight on the purchase made on March 3, P250.
9 Cash of P1,260 was paid to a ttrucking

rucking company for delivery of
merchandise
purchased March 4.
10 Purchased merchandise on account from BEN Company, P5,000;
Terms: 2/10, n/30.
11 Merchandise was purchased on account, P4,000; F

FOB
OB shipping point.
12 Purchased merchandise on account, TOPH Company, P6,000; Terms:

1/10, n/30.
13 Sold merchandise on account, P36,000; Terms: 2/10, n/30
15 Sold merchandise on account, P28,800; Terms: 2/10, n/30

37
16 Of the merchandise sold March 13, P3,960 was returned for credit.
17 Purchased merchand
merchandise
ise on account from DC Trading, P15,000.
18Purchased merchandise, P2,500, terms: COD.
20 Salaries for services received were paid as follows: tto

o office employees,
P3,960; to salespersons, P10,440.
22 Collected the amounamountt ddue

ue on the remaining P32,040 of accounts
receivable arising from the sale of March 13.
23 Purchased merchandise at a cost of P43,200 ; Ter

Terms:
ms: 2/10, n/30 F
FOB
OB
Shipping point, freight collect.
25 Returned P7,200 of the merchandise purchased March 23 to the vendor

for credit.
26 A trucking company was paid P900 for delivery to Isabel Merchandising

of the goods purchased March 23.
28 Paid P1,500 to janitor’s salary.

salary.
28 The owner made an additional investment of P2,300.
29 Sold merchandise for cash, P21,600.
29 Bought store supplies for cash P1,200 (charge to expense).
30 Sold merchandise on accoun

account,
t, P48,000 ; Terms: 2/10, n/30.
30 Payment was received for the sale of March 15.
31 Paid store rent for M

March,
arch, P5,400.
31 Paid the store amount due on purchase of M

March
arch 23.
31 A Physical Count of inventory items show goods on hand amounting to

P2,000.
Suggested Chart of Accounts:
Cash/ Accounts Receivable/Store Furniture and Fixtures/Store

Supplies/Store Equipment/Accounts Payable/I, Dela Cruz, Capital/
Sales/Sales Returns/Sales Discount/Purchases/Purchases Returns/Purchases

38
Discount/Freight In/Salary Expense/Rent Expense/Utility Expense/Store

Supplies Expense
DC Trading
Margarette Dela Cruz, owner of DC Trading completed the following selected
transactions for the month of July of the current year. The company is using
special journals. All transactions which are subject to VAT are already VAT
inclusive.
June
1 Issued a 60-day 6% note amounting to P6,720 for goods

purchased from Jovi Traders as per Invoice No. 2322.
2 Issued Check No. 2034 to Manila Bulletin for a 3-day

advertisements in the newspaper, P9,520.
3 Cash sales to Malou Traders, P15,000.
4 Cash purchases, P10,080 net of trade discount of 10% Check

No. 2035. Inv. No. 6655.
5 Merchandise purchase, Dalton Corporation – P7,280 terms 2/10.

n/30 Inv. No. 7786.
5 Merchandise purchase, Moonwalk, Ltd. – P5,040 terms 3/15,

n/60 Inv. No. 88765.
6 Paid 3 months rent to Ace Realty P14,000, Check No. 2036.
7 Issued Check No. 2037 to Malou Traders, P3,920 for defective

goods returned.
8 Cash sales, P7,500.
9 Returned defective goods to Dalton Corporation, P616.
9 The owner withdrew cash for his personal use, P20,000 (Check
No. 2038).
10 Purchases made Merchandise – Diamond Store, P17,360 terms

n/40, Inv. No. 99870.
10 Bought Computer – Gorgon Company, P12,320 terms COD, Inv.

No. 3366. Check No. 2039.
11 Paid municipal licenses to Pasay City, P3,235 (Check No. 2040).

39
12 Paid salaries of the employees, P36,780 (Check No. 2041).
13 Cash sales, P5,000, terms: COD.
14 Sales on account to Ramos Traders, P5,000, terms: n/30.
15 Established a petty cash fund, P5,000 by issuing Check No.

2042.
16 Paid Dalton C Corporation
orporation in fu
full
ll (Check No. 2043), (see
transactions dated July 5 & 9).
17 Made a partial payment to Moonwalk, Ltd., P2,000 (Check No.

2044).
18. DC trading donated P20,000 cash to DSWW.
19. Margarette borrowed P200,000 from AB bank for additional

investment.
20 Purchase Goods, Diana Corporation, P12,544 terms 50% down

(Check No. 2045) Inv. NO. 80461.
20 Bought Supplies – National Bookstore, P2,744 terms n/30.
20 Purchase Merchandise, Reebok Traders, P7,392 terms 2/10.

N/30, Inv. No. 1161.
21 Bought additional merchandise from Diana Corporation, P7,056,

net of 5% trade discount, terms, n/45, Inv. No. 80480.
24 Cash purchases, P1,848 (Check No. 2046) Inv. No. 4101.
28 Paid the note of Jovi Traders together with the interest of P27 by
issuing Check No. 2047 (see transaction dated July 11).

30 Sold merchandise to MV Traders, P7,000, terms: 2/10, 1/15,

n/30.
30 A Physical Count of inventory items show goods on hand

amounting to P7,000.
Suggested Accounts:

40
Cash on hand;Cash in bank; Petty Cash; notes payable; Purchase;

Advertising Expense; Accounts Payable; Rent expense; Purchase
Returns; DC, drawing; Permit and Licenses; Salaries Expense;
Donation; DC, capital
Dome Company
Record the following transactions of DOME COMPANY in the appropriate
Special Journals and General Journal. For internal control purposes all cash
receipts are evidenced by Official Receipts (start with OR NO. 1001). All
sales of merchandise are supported by Sales Invoice (start with SI No.
2001). All purchases of merchandise are authorized by Purchase Orders
(start with PO No. 301). All cash payments are evidenced by duly approved
Cash Vouchers (starts with CV No. 401).
June
1 J. Dome established a business with cash, P100,000 and furniture worth

P40,000.
2 Issued a check to Oro Equipment Company, P12,000 in payment of an

office equipment bought today.
3 Purchased merchandise from Overseas Company, P18,000 on credit;

terms: 2/10, n/30.
3 Received a note from Lily Green, P10,000 for goods sold.
4 Bought merchandise, P23,000 from Altura Corporation, terms: 2/5, 1/10.
5 Sold Merchandise on account to Lourdes Go, P16,000, terms: 2/10, n/30.
6 Received a credit memo for P2,000

P2,0 00 from Overseas Co. for merchandise
returned.
7 Cash sales to various customers, P75,000 (Issued 1 SI & 1 OR)
8 issued a credit memo to Lourdes Go, P1,000 for merchandise returned.
9 Issued a check to Meralco for P720 to cover the electricity bill at the
residence of the proprietor.

41
10 Purchased merchandise from MTR Company, P60,000 on credit; terms:

2/10, 1/30.
11 Bought a merchandise P10,000 as an additional investment to the

business.
12 Issued a check to Overseas Company in full of account (see transactions

dated June 3 & 6).
15 Purchased merchandise from Neverlast Company, P72,000 and gave a

promissory note in exchange of the amount of the invoice.
14 Issued a check to Altura Corporation in full payment of transaction for

June 4.
15 Purchased furniture from Everlast Company valued at P12,000 and gave

a promise in exchange of the amount of the invoice.
15 The proprietor, J. Dome, took some merchandise worth P900 for home
use.
15 Received a check from Lourdes Go in full account (see transactions dated

June 5 & 8).
16 Paid P3,600 to pay the employees’ salaries.

salaries.
17 Received a check from Lily

Li ly Green in full settlement of her note for
P10,000 and P500 interest.
18 Issued a check to Jose Paras, a cash customer P800 as refund for
received goods.
19 Sold merchandise on account to Luis Perez, P25,000, terms: 2/10, n/30.
20 Transferred P75,000 from the proprietor’s personal bank account to the

business firm's bank account as his additional investment.
21 Purchased merchandise from Overlands Trading, P38,000 on credit;

terms: 2/10, n/30.
23 Paid the insurance premiums, P3,200 to Capitol Insurance Company.
26 Paid by check the rent of the store and office space P8,000
P8, 000 to Rentzoned
Company.

42
27 Cash sales to various customers P54,000 (Issued 1 SI & 1 OR).
28 Issued a check to Everlast Company in payment of the note plus interest

of P1,250.
28 Received a check from Luis Perez P10,000 to apply on account.
30 A physical count of the merchandise inventory at month ended showed

unsold merchandise amounting to P10,000.
Cash/ Accounts Receivable/ Notes Receivable/ Equipment/ Furniture/
Accounts Payable/ Notes Payable/ J. Dome, Capital/ J. Dome, Withdrawals/

Interest Revenue/ Sales/ Sales Returns/ Sales Discount/ Purchases/
Purchase Returns/ Purchase Discount/ Wages Expense/ Insurance Expense/
Rent Expense/ Interest Expense

43
Aubrey’s Carpentry Shop
The owner. Aubrey Elizalde started a trading business “Aubrey’s carpentry

shop” the transaction from August 208A were:
were:
1. Began business with the following investments:

Cash P1,000,000
Merchandise P100,000
Furniture P50,000
2. Prepaid rent for August P5,000
3. Purchased a Delivery Truck from Ten Motor Co. for P600,000
P6 00,000 on
account
4. Sold merchandise for cash to Jeffrey Jung P6,000
5. Paid taxes and licenses, P5000
6 Purchased merchandise for cash from M. Lee P6,000
7 Paid for the freight of merchandise purchased for cash. P350
8 Hired a cashier with minimum wage of P350 a day, start working on
10th of August.
9 Sold merchandise to J. Na P50,000. FOB: destination, terms: 2/10,
n/30.
11 Paid gasoline and oil P3,000
12 The owner invests additional P20,000 cash
13 Purchased paint and brushes from J.Kim P20,000. Terms: 2/5 , 1/15,
n/30
14 Settled the account from Ten Motor Co.
15 Invests additional P50,000 cash in the business.
16 Paid the salary of the cashier hired on August 8, includes the pay for
this day.
17 Sold merchandise on account to J. Park P10,000. FOB:Shipping point,
terms: n/30
18 Returned defective brushes to J.Kim worth P3,000
19 Received the full payment in cash from J.Na for the settlement of his
account.

44
20 Paid general expenses P7,200

21 Purchased cutting machine for woods P100,000
22 Paid the liability owed to J.Kim.
23 Owner withdrew worth P5,000 of woods and nails
24 Received merchandise returned by J.Park P800
25 Purchased merchandise from Xuxi Corp. P30,000 giving a 30-day, non-
interest bearing note.
26 Purchased merchandise from Alice the wonderlandas P10,000.
FOB:DESTINATION, terms: 2/10, n/30
27 Received a check from J. Park for the settlement of his account.
28 Received the merchandise purchased from Alice the Wonderlandas
29 Sold merchandise P5,600 cash
30 Paid wages of the employees P20,000
31 Merchandise ending inventory, P25,000
Suggested chart of accounts:
Cash/ Accounts receivable/ Notes receivable/ Merchandise inventory/

Prepaid rent/ Supplies/ Furniture and Fixtures/ Equipment/ Delivery
Truck/ Accounts payable/ Notes payable/ A. Elizalde Capital/ A.
Elizalde Drawing/ Purchases/ Purchase discount/
Purchase return and allowances/ Freight-in/ Sales/ Sales discount/
Sales return and allowances/ Gasoline and Oil expense/ General
expense/ Salaries expense/ Taxes and Licenses expense/ Freight-out.

45
Michelle Sardonyx Trading Enterprise

The following transactions were completed during July by Michelle Sardonyx
Trading Enterprise, owned operated by Michelle Ferrer, it’s first month of
operations. The Enterprise is a VAT registered Business. All purchases
invoices in freight costs include 10% VAT
Date: July
1. Michelle invested P156,000 cash, P42,000 worth of store equipment

,and furniture and fixtures P15,000.
2. Paid P1,450 cash for taxes and licenses, and opened the business
checking account depositing P100,000 from her investment.
5. Issued a check, P59,400, for merchandise p

purchased;
urchased; FOB shipping
point, freightcollect
6. Issued a check, P1,386 to pay a trucking company for delivery of

merchandise bought yesterday.
7. Purchased store and office supplies in the amount of P660 and P572,
respectively.
Cash payment was made from cash on hand.
10. Purchased merchandise on account from JJ Trading, P45,000; terms

2/10,n/30. FOB Destination point.
11. Received a credit memo for P2,000 from JJ Trading for defective
merchandise returned.
12. Cash sales, P30,000.

46
12.Paid miscellaneous expense, P5,000.
13. Sold merchandise on account, P39,600; terms 2/10, n/30.
14. Purchase on accounts from KDVM Trading, P50,000; terms 3/10,

2/15, 1/30.
15. Sold merchandise on account, P31, 680; terms 2/10, n/30.
16. Of the merchandise sold July 13, P4,356 was returned from credit.
17. Returned defective merchandise to KDVM Trading, P1,000.
20. Salaries for services

services received were paid out of the cash ffund
und on
hand as
follows: to office employees P3,960; to sales persons. P10,440.
21. Partial payment was made to KDVM amounting to P30,000.
22. Collected the amount due on the remaining P35,244

P3 5,244 of account
receivable
arising from the sale of July 13. Deposited the amount to the
business checking account.
23. Purchased merchandise on account, P47,520; terms 2/10,n/30. FOB
shipping point, freight collect.
26. Returned
Returned P7,920 of the merchandise purchased July 23 to the
vendor of credit.
26. Purchased merchandise on account, P33,000 Terms: P5,000 down,

balance on
account, 2/10, EOM, n/45.

47
27. Cash on hand of P990 was paid for delivery of goods to Mina Trading
Enterprises
for goods Purchased July 23.
29. Deposited the proceeds from today’s sale of merchandise, P23,760.

P23,760.
30. Sold merchandise on account, P52,800, terms 2/10,n/30.
30. Payment was received for the sale of July 15, which was immediately
deposited in business checking account.
30. Issued a check, P1,450 including VAT, as a cash refund for allowance
to July 29 customer due to damages on the goods sold.
31. Paid out of cash on hand the following for the month; store rent,
P5,400; Utilities expense, P785.
31. Issued a check for the amount due on purchases of July 23.
31. Withdrew merchandise costing P5,000.
31 Merchandise Inventory at the end of the month is P3,000.

48
C. Johnson Company
The following are transactions of Chylie Johnson Company for the month of
December, 2015. The company uses Periodic Inventory System.
Dec.
1 Chylie Johnson invested the following assets in her business: P400,000

cash; P50,000 merchandise and a store equipment valued at P20,000.
Ms. Johnson’s
Johnson’s accounts payable to Mr. Tuazon amounting to P12,000
P1 2,000 is to
be assumed by his business.
1 Bought P50,000 worth of furniture & fixtures for cash.
2 Ms. Johnson bought a computer for his business worth P60,000 giving
a P10,000 down payment and the balance payable at the end of the month.
2 Paid the rent for the month of December, P20,000.
2 Paid various general expenses amounting to P9,900.
3 Purchased merchandise for cash, P12,000.
4 Purchased merchandise from SM, P18,000. Terms 2/10, n/3

n/30.
0.
5 Purchased office supplies on account, P3,000.
6 Sold merchandise to Mr. Tan on account, P40,000, terms, 2/10, n/30,

FOB destination.
7 Paid advertising for the month, P15,000.
8 Purchased merchandise from PMD Company, P20,000, terms 1/15,

n/30.
10 Received a credit for P2,000 from PMD Company as an allowance for a

slight defect on merchandise purchased.
12 Sold merchandise to Ms. Raishelle P40,000, terms, 2/10, n/30 FOB

destination.
13 Paid freight on sale made to Ms. Raishelle P1,000.

49
14 Issued check to SM in full payment for the December 4, account.
16 Paid salaries P6,000 and electricity P2000.
17 Sold merchandise for cash worth P15,000.
18 Sold merchandise to Mr. DJ, P25,000, terms 60-day, a 6% note was

received from Mr. DJ.
20 Purchased additional desk and chairs on credit, P30,500.
21 Collected the amount due from Mr. Tan for his December 6, account.
22 Received payment from Ms. Raishelle.
23 Paid the amount due to PMD Company.
26 Cash sales amounted to P30,000.
28 C. Johnson withdrew cash for personal use, P12,000
29 Purchased merchandise on credit, P14,500.
30 Paid 30% of the balance on December 20.
30 Purchased merchandise for cash worth P53,500.
30 Paid the December 2, invoice.
31 Merchandise Inventory at the end of the month is P10,000.
Suggested Accounts:

Office Supplies; Equipment; Furniture & Fixtures; Accounts Payable;
C.Johnson, Capital; C. Johnson, Drawings; Sales; Sales Discount; Sales
Return & Allowances; Purchase; Purchase Discount; Purchase Return &
Allowances; Rent Expense; Salaries Expense; Advertising Expense; Utilities
Expense; Freight In; Freight Out; General Expense

50
KRISHIA’S SARI-SARI STORE
Prepare journal entries without explanations for the following

fol lowing transactions
for Krishia’s Sari-Sari
Sari-Sari Store for the month of April, 20CY.
April
1 Began business with the following investments:
Cash P50,000
Merchandise P20,000
2 Paid business taxes and licenses amounting to P1,200.
2 Paid rent for the month P3,000.
3 Purchased merchandise for cash P5,000.
4 Purchased goods from Central Market P10,000 on account. FOB

Shipping Point, terms: 2/10, n/30.
5 Paid transportation cost on the above purchase P500.
5 Sold goods for P5,000 for which a 60-day, 6% note was received.
6 Sold goods to cash customers P4,000.
7 Billed Mrs. Reyes for goods sold P3,000.
7 Paid half of the account with Central Market.
8 Purchased equipment from Western Inc. P5,000, terms: 2/15, n/30

9 Received a cash refund of P1,000 for goods bought on April 3.
12 Purchased merchandise on account from UniMart, P4,000. FOB

Destination Terms: 2/10, n/30.
14 Purchased goods to Ultra Store worth P6,000. FOB Shipping point,

TermsP2,000 down, balance 3/10, n/30.
15 Complained to Western Inc. due to some minor defects on the

equipment a refund of 1,000 was received.

51
16 Paid salaries of helpers P1,000.
17 Received merchandise from UniMart.
18 Sold goods, P4,000. Terms: 2%, 2/10, n/10.
19 Ms. Gonzales increased her investment in cash, P15,000
20 Mrs. Reyes paid her account of April 7.
20 Sold goods on account P1,000.
23 Paid Central Market in full.
24 Paid the balance in Ultra Store with full discount on the account.
25 Sold for cash, P3,000. Trade discounts of 10 and 5 were given.
26 Gave a cash refund of P500 to cash customers for defective goods

returned.
27 The owner withdrew cash for personal use, P2,500.
28 Gave a cash advance of P1,000 to the helper.
29 Issued a check for the electricity bill for the month, P1,800.
30 Physical inventory count amounted to P500
Suggested accounts:

Advances to Employees; Equipment; Accounts Payable; K. Gonzales,
Capital; K. Gonzales, Drawing; Sales; Sales Returns; Purchases; Purchase
Returns; Purchase Discount; Transportation In; Taxes and Licenses;
L icenses; Rent
Expense; Salaries Expense; Utilities Expense

52
Marichie Trading
The following transaction took place in July 200F
JULY
1 Marichie invested P500 000 to put up in a merchandising business

1 Bought Office table and chairs from Quality Furniture, P32,000 VAT
exclusive, Terms COD.
1 Paid taxes and licenses to the City Government P3,250
1 Bought computers from Barrano Equipment, P 16 800 VAT inclusive

terms n/EOM.
2 Paid 3 months rent in advance Manansala Realty Corporation, 4,500,

VAT exclusive
3 Bought good from Runex P36 500, VAT exclusive, 3/10, n/60
4 Cash purchases, VAT exclusive P103,341
5 Paid freight on the above purchases, P550, VAT exclusive
6 Paid insurance expenses, P12 500, VAT exclusive
6 Sold merchandise to ESSO Corporation, P84, 250, VAT exclusive terms

50% down and the balance terms n/60.
7 Paid freight on the above sales, P672, VAT inclusive.
8 Received a 60-daya 6% note for merchandise sold, P10,000 VAT

exclusive
9 Sold merchandise to Correx Trading, P56,000, VAT exclusive terms

2/10, n/60
10 Correx Trading returned defective goods, P16,800, VAT inclusive
10 Borrowed money from Metro Bank, P11,800. Interest of 800 was

deducted in advance
11 Sold goods to Leonard, P73,920 ne of discount VAT inclusive, terms

2/10,n/60 with trade discount of 20%.

53
11 Issued a 45-days note P8,960 VAT inclusive, for merchandise

purchased.
15 Correx Trading returned defective goods, P15,000 VAT exlusive.
15 Paid the following expenses, VAT exclusive:
Meralco Bill P6,000
PLDT Bill 4,500
Rent 12,000
Advertising 14,000
16 Correx Trading made a partial payment of P20,000
16 Leonard returned defective goods, P6,000, VAT exclusive
17 Paid the note issued on December 11.
18 Issued a 30-day note for merchandise purchased, P10,528, VAT

inclusive
19 Correx Trading paid its account in full (see transaction dated Dec 10,
15, 16, 19)
20 Paid the note issued on December 18
21 Marichie withdrew cash for her personal use, P10 000
22 Cash Sale, P20,500, VAT exclusive
22 Purchased goods from Collins Co. with a list price of P130,341 terms
2/10, n/30with trade discount of 5%, VAT exclusive.
23 Paid freight on the above purchase, P3,360, VAT inclusive
30 Returned defective tables to Quality furniture, and received a cash

refund of P3,360, VAT inclusive (see transaction dated December 1).
30 Made a down payment to Collins Co. P15,000.
31 Returned defective goods to Collins Co, and received a credit memo
for 5,600 (VAT inclusive)

54
31 Paid the following expenses (VAT exclusive)
Salaries P12,000
Subscription and Publication 1,200
Commission 11,000
Office Supplies 2,400
31Physical count of merchandise inventory end, P3,000
Suggested accounts:
Cash; Accounts Receivable; Notes Receivable; Bank Loan; Prepaid Rent;

Furniture and Fixtures; Equipment; Accounts Payable; Notes Payable;
Marichie, Capital; Marichie, Drawing; Output Tax; Sales; Sales Returns;
Sales Discount; Input Tax; Purchases; Purchase Returns and Allowances
Freight In; Wages Expense; Advertising Expense; Supplies Expense;
Commission Expense; Subscription Expense; Utilities Expense; Rent
Expense; Taxes and Licenses Expense; Interest Expense.

55
J.JFARMS
On January 2 of the current year J. J Farms was purchased by Ms. Justalero

from TF Enterprise by paying ₱24,750 for the net assets of the business as
shown in the following statement of assets and liabilities.
Accounts Receivable ₱24,500

₱24,500
Less: Allowance for Doubtful Accounts 2,450 ₱22,050

₱22,050
Merchandise Inventory 16,200
Store Equipment ₱10,000

₱10,000
Less: Accumulated Depreciation 2,000 8,000
Total Assets ₱46,250
Less: Accounts Payable 21,500
NET ASSETS ₱24,750

₱24,750
You are asked to record the transactions for the first month of operations in
special journals.
Jan.
2 J. Justalero made an additional investment of ₱20,000 cash which she

immediately deposited in the bank.
2 Purchased inventory on cash basis ₱2,000.

₱2,000.
3 Purchased merchandise from Aim Manufacturing Compan

Companyy ₱3,000.
Terms: 2/10, n/30.
4 Paid rent for the month,₱1,000.

month,₱1,000.
5 Sold merchandise to San Diego Agricultural Enterprise for ₱6,000.

Terms: 2/10, n/30.

56
6 Collected ₱9,800 from a customer on an invoice of ₱10,000 dated

December 26 on terms 2/10, n/30.
8 Purchased merchandise from Hi-Grade Poultry Product Company for

₱15,000. Terms: less 10%, 1/10, n/30.
n/30.
9 Paid wages for the week of ₱4,500.

₱4,500.
10 J. Justalero withdrew for personal use cash of ₱650.
₱650.
11 Collected in full account of San Diego Agricultural Enterprise.
13 Collected ₱3,500 from a customer on an invoice of ₱3,500 dated

December 20 on terms 2/10, n/30.
15 Sold an unused cash register for ₱4,850 cash. This was acquired at a
cost of ₱5,000 on which depreciation of ₱1,000 was already recorded.
recorded.
16 Paid in full account of ₱3,000 on invoice dated December 24 for the

purchase of furniture on terms 2/10, n/30.
18 Sold merchandise to Minalin Traders for ₱1,500. Terms: 2/10, n/30.

n/30.
20 Purchased a second-
second-hand
hand jeep for ₱50,000 from Southern Motors for
which we issued a 90-18% promissory note.
21 Cash sales amounted to ₱8,500.

₱8,500.
21 Paid freight on the above sales, ₱150.

₱150.
23 Received defective merchandise items returned by Minalin Traders for

which we gave credit of ₱150.
₱150.
24 Purchased merchandise from San Jose Compa
Company
ny for ₱6,500. Terms:
2/10, n/30.
26 Collected in full account of Minalin Traders.
27 Purchased merchandise on account, ₱2,000.

₱2,000.
28 Paid shipping costs of ₱1,800 on the purchase above.

above.
29 Cash sales to various customers, ₱25,000.

₱25,000.
29 Paid for cost of adver

advertisement
tisement in The Daily Star amounting to ₱1,500.
₱1,500.

57
30 Sold merchandise to Jobz Supply ₱30,000 cash.

cash.
30 Bought furniture and fixtures for ₱12,000 cash.

cash.
30 Purchased equipment on account, ₱7,000.

₱7,000.
31 Paid a one-
one-year
year insurance premium of ₱18,000. (Use an ‘asset
)
method’
31 Sold merchandise for ₱15,000 on account.

account.
31 Ending inventory amounted to ₱500.

₱500.
Suggested accounts:
Cash; Inventory; Accounts Receivable; Prepaid Insurance; Furniture and

Fixtures; Equipment; Vehicle; Accounts Payable; Notes Payable; Justalero,
Capital; Justalero, Drawing; Sales; Sales Returns; Sales Discount;
Purchases; Freight In; Wages Expense; Advertising Expense; Rent Expense;
Freight Out.

58
CESSA CARPETS
The following transactions are from Cessa Carpets owned by Princess Clypsol
for the month of September.
Sept.
1. Cessa Carpets of Manila was organized by with the owner Princess
Clypsol ₱550,000 cash and ₱100,000 worth of merchandise.
merchandise.
1. Carpets were purchased for cash of ₱135,000 including freight of
₱2,500
2. Sold merchandise to Rustan of Cebu, ₱92,000 Terms: 2/10, n/30 FOB
Shipping Point ₱2,000 freight prepaid which was included in the
invoice.
4. Hired worker with a salary of, ₱1,000

₱1,000
5. Purchased merchandise from Acute Trading, ₱136,000 Terms: 4/5,

2/15, 1/30 FOB Shipping Point.
6. Paid
Paid freight on Acute Trading, ₱2,970
₱2,970
9. Returned defective purchased merchandise from Acute Trading,

₱3,000.
10. Settled account due to Acute trading.
12. Princess withdrew cash for personal use, ₱6,000

₱6,000
12. The company sold goods on account to Robinson’s Manila, ₱72,000
Terms: FOB Shipping Point 2/29, N/30
15. Acquired office supplies for cash, ₱3,600

₱3,600
15. Paid the salary of the hired worker.
16. ₱2,900 worth of goods were returned by Rustan for credit.
17. Sold merchandise to Tan Tei, ₱75,000 Terms: 2/EOM FOB

FO B Shipping
Point

59
20. Salaries paid: Office employees, ₱9,500 and salesmen ₱26,000 less
5% withholding tax.
21. Merchandise were sold for cash from various customers, ₱98,000
22. Collected in full account of Rustan.
26. Purchased goods from Bess Carpets, ₱105,000 Terms: 2/10, n/30,
FOB Shipping Point
27. Paid freight of ₱3,000

₱3,0 00 on the Bess shipment.
shipment.
28. Cash sales, ₱54,000 including ₱14,000 on credit cards.

cards.
28. Paid Bess Carpet, ₱55,000 discount not included.

included.
29. Received full payment in cash from Tan Tei for their account on
September 17
29. Borrowed ₱500,000 from U Tang Bank and issued a 30 -day, 10%
note.
30. Issued a check for store rent, ₱15,000

₱15,000
30. Received ₱7,500 from E-PCIB

E-PCIB Express Card less service fee.
30. Paid Advertising bills, ₱3,000

₱3,000
30. Paid for salaries less withholding tax. Additional deductions were
made for 3% SSS, 1.5% Philhealth and 2% Pag-ibig Premiums.
30. Paid in cash for utilities ₱6,000 (once -fourth

(once-fourth is considered
administrative).
30. Paid miscellaneous expenses, ₱1,500

₱1,500
30. Physical count of merchandise inventory reveals that saleable items

amounted to, ₱84,775
₱84,775

60
SUGGESTED CHART OF ACCOUNTS:
Cash, Accounts Receivable, Merchandise Inventory, Office Supplies,

Accounts Payable, Notes Payable, Withholding Tax Payable, SSS Payable,
Philhealth Payable, Pag-ibig Payable, P.C, Capital, P.C, Drawing,
Purchases, Purchase Discount, Purchase Return and Allowances, Freight
In, Sales, Sales Discount, Sales Return and Allowances, Advertising
Expense, Bank Service Charges, Miscellaneous Expenses, Rent Expense,
Utilities Expense, Wages Expense

61
Rae Industry
The following transactions occurred during the month of December of
the current year.
Dec. 1 E. Manalo made an additional investment ₱50,000 cash in the

business.
2 Purchased merchandise from Cessa Co. for ₱40,000. Terms: 2/10

n/30. FOB Shipping Point
3 Paid the Meat Dealer’s, Inc

Inc.. in full payment of Invoice No. 2124 for
₱5,000 dated November
23 on credit terms.
3 Paid Gen
General
eral Fr
Fruits
uits Trading in full payment of Invoice No. 9638 for
₱3,000 dated
November 28 on credit terms of 2/5, 1/10, n/30.

4 Purchased store supplies from Cuties Supplies for cash,₱450.
cash,₱450.
4 Paid the freight on the purchases on December 2. ₱ 3,000

3,000
5 Cash sales for the week amounted to ₱3,500.

₱3,500.
6 Paid ₱1,000 insurance premiums for a month coverage.

coverage.
7 Sold merchandise to Fely’s retailers for ₱550 on account. Terms:

2/10 n/30
8 Sold merchandise to Corner Stone Store for ₱1,200 on account.

Terms: 2/11 n/30 FOB Shipping Point
8 Paid ₱350 for the freight above.

above.
9 E. Manalo invested ₱50,000 of merchandise.

merchandise.
10 Purchased merchandise from various suppliers

suppliers in cash ₱2,000.
₱2,000.
12 Sold merchandise to Elite Groceries for ₱2,000 on account. Terms:

2/15 n/30
13 E. Manalo Withdrew ₱5,000 cash for personal use.

use.

₱8,800.

62
15 Paid salaries ₱3,500.

₱3,500.
16Paid the Cebu Pacific ₱ 7,500 for the owner’s vacation.

vacation.
17 Purchased merchandise from various suppliers in cash ₱3,000.

₱3,000.
19 Received full payment from Elite Groceries.
20 Received full payment from Fely’s retailers.

retailers.

₱7,800.
23 E. Manalo withdrew ₱1,000 worth of merchandise.

merchandise.
24 Received full payment from Corner Stone Store.
25 Sold merchandise to BessyNiTintin for ₱20,000 iin

n cash. FOB
Destination
26 Paid for the freight of the transaction on December 25

26 E. Manalo invested ₱500,000 to to a new business.
27 Purchased office supplies on account. ₱500

₱500
28 Donated ₱5000 to Daily Manna Foundation

Foundation
29 Paid Globesmartsun Telecom ₱1,000 for telephone bill.

bill.
30 Paid salaries ₱3,500.

₱3,500.
30 Paid ₱1,500 for electricity.

electricity.
31 The ending balance of merchandise

m erchandise inventory was ₱15,700.
₱15,700.
Suggested Chart Of Accounts:
Cash; Accounts Receivable; Office Supplies; Accounts Payable; E.

Manalo, Capital; E. Manalo, Drawing; Purchases; Purchase Returns;
Sales; Sales Discount; Freight In; Freight Out; Salaries Expense;
Charity Expense; Telephone Expense; Utilities Expense

63
OBENZA Merchandising
Merchandising
Mr. Carl Obenza started his merchandising business on March 1, 200E. The
following transactions transpired during March.
1 He invested the following:

Cash P50,000
Merchandising P30,000
1 Paid Municipal License, P3,500
1 Paid Rent (3 months), P12,000
1 Bought computers from Burroughs, terms COD, P20,000.
1 Bought tables and chairs from Nicfur on credit, P13,650, terms n/60.
2 Purchase merchandise for cash, 9,000.

3 Bought merchandise for cash, P8,700. FOB Destination.
5 Sold merchandise for cash, P14,000.
5 Paid freight on the above sale, P300.
6 Paid freight on the purchase made on March 3, P200.
7 Purchased merchandise from LX Trading, P10,000 terms 2/10, n/30.
8 Purchased merchandise from Zoilo Trading on cash, P18,000.
9 Sold merchandise to Llamas Supermarket, P21,000 terms 3/10, n/40.

10. Cash Sales, Rey’s Grocery, P11,000.
P11,000.
10 Borrowed money from PNB, P15,000 payable in 30 days.
11 Paid account of LX Trading in full.
14 Collected the account of Llamas Supermarket in full.
15 Received a credit memo for P2,000 from Zoilo Trading for defective
merchandise returned.
15 Received advanced rental from a tenant, P6,000.

64
15 Rey’s Grocery returned defective merchandise, P3,000 for which a

credit memo was issued.
15. Paid salaries, 12,000.
15 Paid the following:
Electric bill P2,300

Water bill P3,200
Salaries P12,000
Advertising P4,500
17 Sales on account to Nelson’s Store, P13,600,

P13, 600, terms 2/10/ n/45.
19 Purchase on credit from Baguio Trading, P14,200, terms n/30.
22 The owner withdrew cash for his personal use, P2,000.
23 Received a 60-day 6% note for merchandise sold from Cara Cruz,

P3,000.
25 Issued a 30-day 6% note to Waley Enterprise for merchandise bought,

P2,800.
28 The owner made an additional investment of P2,300.
29 Bought office supplies for cash P1,200 (charge to expense).
31 Salaries paid, P12,00.
31. A physical count of inventory items show goods on hand amounting

to P6,000

Prepaid Rent; Furniture and Fixtures; Accounts Payable; Notes Payable;
Bank Loan, Carl Obenza, Capital; Carl Obenza, Drawing; Rent Income;
Sales, Sales Discount; Sales Return and Allowances; Purchases; Purchase
Discount; Purchase Return and Allowances; Freight In, Permit and Licenses;
Utilities Expense; Salaries Expense; Freight Out; Advertising Expense;
Supplies Expense

65
JOPAY COMMERCIAL
This is a trading firm organized a year ago by Mrs. Joanna Payad for a
wholesale grocery and fruit business. The books used are two-column
general journal and a general ledger. A trial balance prepared on November
1, 2005 is shown below.
Jopay Commercial
Trial Balance
November 1, 2005
Cash on hand P 4,750
Accounts Receivable:
T. Elizago 1,260
G. Apocible 540
H. Bantog 120
E. Crus 245
R. Dihamco 800
S. Buendia 2,115
Merchandise Inventory 6,425
Store Furniture & Equipment 7,500
Accu. Dep. Store Furniture & Equipment P 2,400
Office Furniture & Equipment 4,500
Accu. Dep. OfficeFurniture & Equipment 1,000
Accounts Payable:
Dison Wholesalers 3,800
Reyez & Reyez Company 2,285
Tan Chan Trading 3,000
Art Commercial 1,200
Notes Payable 5,000
Joanna Payad, Capital 9,390
28,075
P 28,075P 28,075

66
The transactions for the month of November are given below:

Nov.
1 Purchased merchandise from Valencio Manufacturing Company for
P1,500. Terms: 2/10, n/30.
2 Paid rent for November, P300.
3 Sold merchandise to C. Rivera, P425, Terms: 2/10, n/30.

4 Received payment from R. Dihamco for P784 in full settlement of
account from a sale of P800 on Oct. 24 on terms 2/11, n/30.
5 Paid Dison Wholesalers on invoice for P3,800 dat
dated
ed Oct. 20 on terms
1/16, n/30.
6 Purchased merchandise from General Fruits Trading for P1,500. Terms:
2/15, n/30.
7 Cash sales for the week amounted to P1,450.
8 Wages paid amounted P150.
9 Joanna Payad withdrew P600 cash.
10 Granted allowance of P40 G. Apocible for defective merchandise
returned from sale of Oct. 26.
11 Paid freight of P72 on various purchases.
12 Sold merchandise to Z. Santos for P525. T Terms:
erms: 2/10,n/30.
13 Paid Advertising bills amounting to P95.
14 Cash sales for the week amounted P1,200.
15 Wages paid amounted to P150.
16 Paid Tan Chan Trading on invoice for P3,000 dated Oct. 26,, terms:
2/21,n/30.
17 Purchased merchandise from General Fruits Trading for P1,420. Terms:
2/15,n/30.
18 Paid General Fruits Trading on invoice for P1,500 on Nov.6/

19 Received credit of P120 from General Fruits Trading for defective
merchandise returned on invoice for P1,420 dated Nov.17.
20 Z. Sant
Santos
os retu
returned
rned defe
defective
ctive good
goodss for which cr
credit
edit of P75 was granted.
21 Cash sales for the week amounted to P750.
21 Purchased merchandise from Puring Co. for P2,100 Ter Terms:
ms: 2/10, n/30.
22 Wages paid amounted to P150.
23 Joanna P Payad
ayad withdrew merchandise costing
costing P200 and priced tto
o sell for
P320.
24 Paid Art Commercial 50% of tthe he am
amount
ount due on invoice for P1,200
dated Oct. 28, terms: 2/10,n/30.
25 Cash sales for the week amo
amounted
unted to P950.

67
26 Paid freight of P65 on various purchases.

27 Sold merchandise to R. Guray for P915. Terms: 2/10,n/30.
28 Paid telephone, light, and water bills amounting to P150.
29 Granted credit of P115 to S. Bue
Buendia
ndia for the defective mer
merchandise
chandise
returned on invoice for P2,115 dated Oct. 30.
30 Paid P150 for the p purchases

urchases ooff various wrapping papers, bags, ttapes,
apes,
and twine.
30 Received payment ffrom rom S. Buendia in full settlement of invoice for
P2,115 dated Oct. 31. Terms: 2/10,n/30.
30 Additional information are:
1. A physical count of inventory items show goods on h hand
and amounting to
P7,585.
2. Store Furniture & Equipment have an expected useful life of 6 years at
the end of which they can be sold for P300.
3. Office furniture & eequipment
quipment have an expected useful life of 3 years at
the end of which they can be sold for P180.
4. It is estimated tthat
hat only 80% of the outstanding accounts receivable
will be collectible.
5. No interest has been recorded on the note for P5,000 issued o on
n Oct.31
for 60 days at 6%.
6. Supplies still on hand amounted o on
n P200.
Suggested accounts:
Cash, Accounts
Ac counts Receivable, Accounts Receivable-T. Elizalgo, Accounts
Recaeivable-G. Apocible, Accounts Receivable-H. Bantog, Accounts

Receivable-E. Crus, Accounts Receivable-R. Dihamco, Accounts
Receivable-S. Buendia, Notes Rece
Receivable,
ivable, Interest Receivable, Allowance for
Bad Debts, Supplies, Merchandise Inventory, Store Furniture & Equipment,
Accumulated Depreciation Store
Store Furniture & Equipment, Office Furniture &
Equipment, Accumulated Depreciation Office Fur Furniture
niture & Equipment,
Accounts Payable, Accounts Payable-Dison wholesalers, Accounts Payable-
Reyez & Reyez Company, Accounts Payable-Tan C Chan
han Trading, Accounts
Payable-Art Commercial, Notes Payable, Joanna; Capital, Joanna; Drawing,
Interest Income, Sales, Sales Returns, Sales Discount, Purchases, Purchase
Returns, Purchase Discount, Freight in, Rent Expense, Wages Expense ,
Utilities Expense, Supplies Expense, Bad Debt Expense, Advertising Expense

68
YANAH RIVERA TRADING
The Asset Balance of the last month’s transaction of Yanah Rivera were as
follows:
Cash P13,000
Merchandise Inventory P15,000
Furniture and Fixtures P130,979
Total P158,979
Selected transaction (VAT exclusive) of Yanah, Rivera for the month of

December, it’s second month of operations, were as follows:
follows:
Dec.
1 Yanah made an additional investment of P40, 000 as per OR no. 503
2 Cash sales P5,000
3 Cash sales P12, 500 Inv. no. 306 Or No. 504
5 Purchased Merchandise for cash P 40,500

6 Sold Merchandise to Anfernee, P15, 000 50% down payment and
balance on account
7 Purchased Merchandise P7,388 cash
8 Cash sales P5, 000
9 Sold merchandise to Janno, P16, 000 terms 2/10, n/30 Inv no. 307
10 Sold merchandise to Gibbs, P3, 400, terms n/45, Inv. No. 308
11 Received rental from a tenant P3, 000 as per OR no. 505
12 Sold goods to Rochelle with a list price of P5, 600 terms n/45 with
trade discount of 10% and 5%
13 Cash sales P8,000
14 Purchase merchandise P5,000 cash
15 cash sales, with a list price of P13,000 with a trade discount of 5% Inv
No, 309 Or No. 507
16 Received a 60-day note P4, 000 for merchandise sold to sunshine Inv.
No. 310
17 Sold merchandise to Donna, P1, 500 terms 1/15, n/30 Inv. No. 311
17 Returned defective tables bought from Nicfur, P4, 500 and received a
cash refund as per OR no. 508
18 Borrowed money from Banco de Oro, P30, 000, Or no. 509
19 Sold Merchandise to Alvier, P5, 000 cash
20 Donna returned defective goods, P500 as per CM no. 654.

21 Sold Merchandise To Friana P6,000 cash

69
22 Sold Merchandise to Michelle P13, 000 terms 50% down, and the
balance n/60 Inv. No. 312 OR no. 510
23 Sales on account to Felipe, P7, 000 terms 2/5, n/15 Inv. No. 313
24 Purchase Merchandise P25, 000 cash
26 Sold Merchandise to Alvrix, P10, 000

28 Collected the account of Gibbs in full transaction (10)
29 collected the note of sunshine together with the interest of P9, OR No
511 (see transaction dated Aug. 16)
30 Returned defective goods to Ace Trading, and received a cash refund
of P1, 000 as per OR No. 512
30 Collected the account of Felipe in full as per OR No. 513 (see
transaction dated Aug. 23)
31 Sold goods to Malgerose , P3, 650 Terms n/60 Inv. No. 314
31 Donna paid her account in full as per OR No. 514 (see transaction
dated Aug. 17 & 20)
31 Sold additional merchandise to Michelle P6, 700 terms 2/10, n/30 Inv.
No. 315
31 Michelle made a partial payment of P2, 000 as per OR No. 515 (see
transaction dated Aug. 22)
31 Sold Merchandise to Lito, P8, 000 terms 40% down payment and the
balance, n/60 Inv. no. 316 Or No. 51
31 Merchandise Inventory end P72, 091
Chart of Accounts:
Cash ; Accounts Receivable ; Notes Receivable ; Merchandise Inventory;

Furniture and Fixtures; Accounts Payable; Notes Payable; Yanah, Capital ;
Yanah, Drawing; Rent Income ; Interest Income ; Sales ; Sales Ret
Returns
urns and
Allowances; Sales Discount; Purchases; Purchase Returns & Allowances;
Purchase Discount

70
CACA LOCCA TRADING

Record in special journals the following transactions of Caca Locca Trading
which took place in the first month of operations. Business papers are
numbered as follows: official receipt start with no. 001; cash vouchers with
no. 1001; sales invoice with no. 96-001 and journal vouchers with no. 96-1.
All purchases of merchandise and sales on account have a condition of paid
freight, P500, except for some selected transactions.
November 20JC
2 Caca Sabar invested P50,000 cash and 10,000 merchandise in a
trading firm registered as Caca Locca Trading. Paid various taxes and
licenses to operate, P750.
3 Bought store furniture for P15,000 from Ace Furniture terms: 2/10,
1/15, n/30 Invoice no. 222901. Purchase equipment from Balibagan
Company, P40,000, terms: 25% down and the balance 3/7, 2/15,
n/30 Invoice no. 517032.
4 Purchased merchandise for P16,500 from Tramo Merchandising
Company. Terms: 1/10, n/60 Invoice no. 12346.
4 Hired an employees with salaries of P30,000 a month.
5 Sold merchandise for P25,000 to Clara Reyes. Terms: 2/10, n/30.
Cash Sales, P17,000.
6 Sold merchandise for P10,000 to various cash customers.
6 Bought office supplies for P1,500. Terms: C.O.D.
7 Received credit of P500 from Tramo Merchandising Company as
allowance for slight defects on merchandise items bought.
8 Received the purchased office supplies.
9 Purchased merchandise for P15,000 from Merced Company. Terms:
30% down payment, balance 2/15, n/60. Invoice no. 78801.
10 Paid Tramo Merchandising Company in full account. Paid Balibagan
Company in full.
10 The sister of the proprietor withdrew P3,000 for payment of tuition fee.
11 Collected the account of Clara Reyes in full.
12 Sold merchandise for P6,500 to Tina Santos. Terms: 1/10, n/30.
13 Bought merchandise on account from No-Tulog Co., P30,000, terms:
F.O.B.buyer's place n/75.
15 Paid the salaries

Withholding Taxestototaling
employees, P11,000 less: SSS, Medicare and
P400.

71
16 Paid Ace Furniture in full of account. Cash Sales, P10,000.

18 Discounted our own 30-12% promissory note for P30,000 with Manila
Bank.
18 Received the purchased merchandise from No-Tulog Co.
19 Purchased merchandise for P15,000 from Ever Commercial. Terms:
n/60. Invoice no. 44617.

22 Sold merchandise for P15,000 to Regina Cruz. Terms: 2/10, n/30.
23 Purchased merchandise for P7,500 from Tip-Top Bazaar. Terms: 1/5,
n/20. Invoice no. 589120.
25 Purchased merchandise for P40,000 from Aa Company. Terms: F.O.B.
buyer’s place, 2/30, n/60. Invoice no. 633824
633824
29 Paid Tip-Top Bazaar in full of account.
29 Received purchased merchandise from Aa Company.
30 Cash Sales, P23,000
30 Paid the following: Meralco, P1,572; Maynilad, P684; Rent, P3,000;
Employee, P15,000 less Employees' Benefits Payable, P400.
30 Withdrew P2,000 for personal use.
30 The physical count of the merchandise inventory at the end of the
month is P16,384.
Suggested Accounts:
Cash; Accounts Receivable; Inventory; Office Supplies;

Supplies ; Furniture and
Fixtures; Office Equipment; Accounts Payable; Bank Loan; Employee
Benefits Payable; Bank Loan; Caca, Capital; Caca, Drawing; Sales; Sales
Returns and Allowances; Sales Discount; Purchases; Purchase Returns and

Allowances; Purchase Discounts; Freight In; Salaries;
Sa laries; Utilities; Rent; Freight
Out; Interest Expense; Taxes and Licenses

72
Salvador T.M. BOUTIQUE

During the month of December 2001, Salvador T.M. Boutique completed the
following transactions:
Dec.
8. Invested cash, P900,000 and merchandise, P28,000.
10. Purchased merchand
merchandise
ise from Cecile Trading Co., P1,900. Terms:2/15,
1/30.
13. Sold merchandise to John Wade on account, P5,600. Terms:2/15, n n/30.
/30.
14. Paid the freight on December 10 purchases, P350.
15. Purchased supplies for cash, P5,000.
16. Paid Cecile Trading Co. in full.
17. Returned d defective
efective supplies purchased on December 15, P400.
18. Purchased vehicle from Andres Company, P27,500. Terms:3/5, 2/15.
19. Sold m
merchandise
erchandise to Carl Wade, P30,000.
20. Purchased office equipment P1,100 from Totor
Totoro
o Enterprise.
21. Received return of merchandise sold, P1,400 from Carl Wade.
21. Purchased merchandise for cash, P9,000.
22. Paid advertising of new designs for the month, P3,000.
23. Hired a tailor, P2,000.
23. Paid An
Andres
dres Company in full.
24. Paid miscellaneous expense, P500.
25. Bought mmannequins
annequins P6,000 ffrom
rom Shibuya Mannequin Company.
26. Hired a clerk, P23,000.
26. Received a bill from Harju Lights, P500.
27. Collected the account of John Wade in full.
28. Paid Sh
Shibuya
ibuya Mannequin Company in full.
28. Paid salaries, P10,000.
29. Bought P30,000 supsupplies
plies from V
V.. Jane on account. Terms:1/10, n/30.
29. Paid the bill from Harju Lights.
30. Paid the clerk’s salary on account.
account.
30. Paid salary of tailor, P2,000.
31. Paid V. Jane in full.
31. Physical inventory end, P2000.

73

Supplies; Office Equipment; Vehicle; Accounts Payable; Salaries Payable;
Utilities Payable; STM, Capital; STM, Drawing; Cost of Sales; Sales; Sales
Returns & Allowances; Purchases; Purchase Discounts; Purchase Returns &

Allowances; Freight-In; Salaries Expense; Utilities Expense; Advertising
Expense; Miscellaneous Expense.

74
TRICIA VARGAS TRADING

The transaction T. Vargas for the month of October 20x9 were the following:
October
1. Started business under the name of Tricia Vargas with investment of
cash, P600,000 and merchandise of P100,000.
2. Paid rent for the month P4,000.
3. Purchased merchandise on account from Mr. Joshua Davidness
P100,000.
4. Purchased merchandise in cash, P200,000. Purchased merchandise on
account from Jose Brown, P100,000. Terms: 2/10, n/30.
5. Sold merchandise on account to Juan Cruz, P60,000. Terms 3/10,
n/30.
6. Sold merchandise to Ashley Kate P100,000 on account. Terms 2/10,
n/30.
7. Returned to Jose Brown merchandise worth P10,000 on account of
defect in quality. Jose Brown issued a credit memo for the same
amount.
8. Purchased merchandise on account from Pedro Oria, P160,000.
P160,00 0. Terms
2/10, 1/20, n/60.
9. Paid P3,000 to Serrano trucking for the delivery of the merchandise
bought from Pedro Oria.
10. Ashley Kate Fully paid the account with 2% less discount.
11. Paid General Expenses, P9,000.
12. Sold to Various customers P120,000.
13. Tricia Vargas withdrew for personal use of the following: Cash,
P4,000 and merchandise costing P2,000.
14. Paid account to Jose Brown in full less discount of 2%.
15. Collected account from Juan Cruz in full less the discount
allowed.
16. Paid salaries of employees, P10,000.
17. Purchased merchandise on account from Jose Brown, P240,000.
Terms 2/10, n/30.
18. Sold to Mary David on account, P150,000. Terms n/60.
19. Cash Sales P40,000. Paid selling expense P4,000.
20. Issued Credit memo to Mary David for merchandise returned
P12,000.
21.
22. Sold P18,000
Paid to Nick Trono onCompany
to F. E account, to
P30,000. Terms 2/10,
apply partially n/30.
on account.

75
23. Cash Sales P80,000.

24. Paid General expenses, P3,000.
25. Paid in full the account to Pedro Oria.
26. Paid Salaries of employees, P10,000. Cash Sales, P40,000.
27. Sold on to Ted Cloma, P40,000. Terms 3/10, n/30.
28. Sold merchandise for cash to various customer, P110,000.

29. Returned a merchandise to Mr. Joshua Davidness for the defect
P10,000.
30. The physical count of the merchandise inventory at the end of
the month is P191,400
Accounts:
Suggested Accounts:

Accounts Payable; Vargas, Capital; Vargas, Drawing; Sales; Sales Returns
and Allowances; Sales Discount; Purchases; Purchase Returns and
Allowances; Purchase Discounts; Freight In; Rent Expense;
Ex pense; General
Expense; Salaries Expense; Selling Expense

76
Villajin Trading
Preparation of Journal Entries using Periodic Inventory System:
Villajin Trading, Inc. is a VAT registered company all of her purchases
(Merchandise and Supplies) and sales are subjected to 12% value added tax
(VAT). She started the business only on March 1, 2015. The following
transactions took place during the month of March 2 015.
2015.
Mar.
1 Invested cash P500,000, 2nd hand Store Equipment, costing P400,000
with a market value of P250,000. 2 nd Store Furniture costing P300,000 with
a current market value of P200,000.
2 Paid business permits an
andd other taxes, P10,000 to be charged to TTaxes
axes
and Licenses account.
3 Paid advance rental for ffour
our mont
months
hs for P20,000 per month to bbe
e
charged to prepaid account.
4 Purchased merchandise with a list price of P500,000 less 10% trade
discount, plus 12% VAT. Terms: 2/10, n/30. Freight of P3,000 was paid in
cash.
5 Purchases store supplies for cash, P20,000 plus 12% VAT.
6 Sold merchandise on account, P300,000 plu plus
s 12% VAT.
7 Sold merchandise on account, P400,000 plus 12% VAT. Terms: 2/10,
n/30.
8 Paid the account in full related to March 5 pupurchases.
rchases.
9 Collected the account in ffull
ull rrelated
elated to March 7 sales.
10 Purchased merchandise on account, P400,000 plus 12% VAT. Terms:
2/10, n/30. Freight of P2,000 was paid.
11 Withdrew cash for P15,000 for personal use.

12 Sold merchandise for cash P250,000 plus 12% VAT.
13 The customer returned P50,000 worth of goods that was sold last March
12 and paid him a cash refund for a total amount of P56,000 (VAT
Inclusive).
14 Paid the account in full related to March 10 pur
purchases.
chases.
15 Paid salaries for the employees, P50,000. BBought
ought merchandise,
P300,000.
16 Paid rent for the month, P300.
17 Sold to Irish oon
n accoun
account,
t, P
P60,000.
60,000. Terms: n/60. Cash sales P400,000.
Paid delivery expenses P4,000. Bought merchandise on account, P350,000,
terms: 3/25, 1/30, n/60.
18 Bought a vehicle on account, P200,000.

77
19 Paid wages for the week P4,500.

20 Discounted our own 30-12% promissory note with tthehe Ring Bank for
P30,000. The proceeds of the loan were immediately credited to our bank
account.
21 Paid miscellaneous P500.
22 Purchased Store Equipment on account, P10,000 T Terms:

erms: 2/10, n
n/30.
/30.
23 Paid the Freight on the above sales, P1,000.
24 Utility expense bills paid P300.
25 Paid cost of newspaper advertisement P200.
26 Sold merchandise for cash P15,000.
27 Sold merchandise on account to Juan, P60,000. Terms: 2/10, n/30.
28 Ms. Villajin made an additional investmen
investmentt of P20,000 cash which she
immediately deposited in the bank.
29 Collected account from Juan in full less the discount allowed.
30 Paid for the store equipment acquired on March 22.
31 At the end of the month merchandise inventory is P90,000.
Accounts:
Suggested Accounts:
Cash on hand; Cash in Bank; Accounts Receivable; Merchandise Inventory;

Store Supplies; Prepaid Rent; Input VAT;
VA T; Vehicle; Store Furniture; Store
Equipment; Accounts Payable; Loan Payable; Output VAT; Villajin Capital;
Villajin Drawing; Sales; Sales Discount; Sales Return and Allowances;
Purchases; Purchase Discount; Freight In; Freight Out; Rent Expense;
Ex pense;
Salaries Expense; Advertising Expense; Delivery Expense; Interest Expense;
Utilities Expense; Taxes and Licenses Expense; Wages Expense; and
Miscellaneous Expense.

78
Villanueva Hardware Store
The Villanueva Hardware Store was organized on February 1 of the current

year by Mr. Chris Brylden S. Villanueva to engage in a wholesale trading
business. The following transactions occurred during February:
Account Balances:
Cash..............................P15,000
Villanueva, Capital........P15,000
Feb
1. Mr. Villanueva invested P40,000 cash in the business which He
immediately deposited in a bank in the name of Villanueva Hardware Store.
2. Paid the rent for the month of February, P3,500.
3. Purchased Store Equipment from City Are King, Inc. for P8,500. Terms:
45% down payment, balance 2/10, 1/15, n/30.
4. Purchased merchandise from the following supplier:
From Trixie Company....P2,500....2/10, n/30
From Earl Mulan Co......P1,500.....1/10, n/30
From Osang Company..P4,500....2/10,
n/30
5. Purchased a brand new delivery truck from Lois Motors for P300,000.
6. Mr. Villanueva withdrew P3,000 for personal use.
7. Sold merchandise on account to Cat Riyona Company, P15,000. Terms:
destination, 2/10, n/30.
8. Purchased merchandise from Biang Ka Co, P3,500.
9. Sold merchandise to Rach Peters Store, P4,500.
10. Cash purchases of merchandise amounted to P3,000.
11. Paid newspaper advertisement in "Negatron City" P300.
12. Mr. Villanueva made an additional investment of P500,000.
13. Paid the accounts owed to Trixie Company, Earl Mulan Co and Osang
company in full.
14. Purchased merchandise on account from Mama Lukka Co, P50,000.
Terms: less 10%, 2/10, n/30.
15. Cash sales for the week amounting P20,500. Costing P10,500.
16. Returned defective merchandise purchased on February 14, P3,000.
17. Received a return of merchandise from customer on transaction 15
worth P2,000.
18. Full settlement of account to Mama Lukka.
19. Cash sales for the week amounting P1,500.
19. Paid salaries of the secretary, P2,700.
20. Purchased merchandise from following suppliers:
From Sheng Bern Co....P8,000....3/10,
n/30
From Jhian Putri Co....P30,000...2/10, n/30

79
From Max Medina, Inc...P4,900...2/10,

n/30
21. Paid freight charges of P350 on the above purchases.
22. Purchased another delivery truck from Lois Motors for P200,000. Terms:
payable in 2 months at P100,000 a month.
23. Full settlement of account with Sheng Bern Co.
24. Full settlement of account with Max Medina Co.
25. Sold merchandise on credit to Morissette Hamon Co, P40,500. Terms:
4/10, n/30.
26. Full settlement of account with Jhian Putri Co.
27. Received cash for the sales on February 25.
28. Paid Lois Motors monthly installment due.
28. Physical count of merchandise inventory, P5,000.
CHART OF ACCOUNTS:
Cash/ Accounts receivable/ Notes receivable/ Equipment/ Delivery Truck/
Accounts payable- Trixie Company/ Accounts Payable- Earl Mulan Co/ Osang
Company/ Accounts payable- City Are King/ Accounts payable- Lois Motors/
Accounts payable- Mama Lukka Co/ Accounts payable- Sheng Bern Co/
Accounts payable- Jhian Putri Co/ Accounts payable- Max Medina, Inc/
Villanueva, Capital/ Villanueva, Drawings/ Purchases/ Purchase discounts/
Purchase returns and allowances/ Sales/ Sales discounts/ Sales returns and
allowances/ Rent expense/ Advertising expense/ Salaries and wages
expense/ Freight-in/ Freight-out

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Accounting Journal Entries

Case No. Page No.

7. OLIVERA Dolls and Guns Store......................................................21

10. DOLOR Enterprise.........................................................................29

11. PERALTA Convenience Store....................................................32

12. SAN MIGUEL Merchandising..........................................................35

13. IMACULATA Trading……………………………………………………………………………….3

15. ESTRADA Carpentry Shop...........................................................42

16. MACEDA Trading Enterprises.............................................44

17. AGANA Company.....................................................................48

18. PALOR Sari Sari Store.................................................................49

19. CONCON Trading.........................................................................51

20. SANTIA Farms.............................................................................54

21. QUINTO Carpets..........................................................................57

22. BERTES Industry..................................

23. PIDLAOAN Merchandising...............................................................62

24. BISDA Commercial.......................................................................64

25. ESPINO Trading....................................................................67

26. DIPATUAL Locca Trading...............................................................69

27. SALONGA Boutique......................................................................71

28. GONZAGA Trading....................................................................73

29. BULANADI - Trading......................................................................75

30. TORRES - Hardware Store.............................................................77

ASSIGNMENT to be submitted on or before

1. Use Two Columnar Book

6. Skip two page blank before starting a new case.

8. 12-case set-up will be as follows:

WITHIN - for those in Case 01

1- Z. Aceret invested P150,000 in the business

1-Purchased merchandise on credit from Rive Company, P3,900; terms

2- Purchased merchandise on credit from EXO company, P4,500; terms:

4- Paid utilities expense for the month, P900

5- Z. Aceret invested a three sewing machine in the business, P45,000

6- Purchased merchandise on credit from North Company, P9,000. Terms

7- Purchased merchandise on credit from Nus Co., P6,000. Terms 1/10,

8- Purchased office supplies from Russo Co., P2,400. Terms: n/10

9- Cash sales, P2,000

11- Paid Rive Co. for purchase, May 1

12- Paid EXO company for purchases, May 2

15- Sold merchandise for cash, P1,800

16- Paid North Co. for purchase of May 6

18- Paid salaries of the employee, P2,000

20- Received payment in full from Steve Ngo.

21- Paid the rent for the month, P2,900

24- Paid Russo Co. for purchase of May 8

25- Purchased merchandise on cash from SVT Corp., P7,500

29- Z. Aceret withdraw P10,000 for personal use

30- Sold merchandise for cash, P5,000

30- Merchandise inventory end, P3,000.

Cash/ Accounts Receivable/ Office Supplies/ Sewing Machine/ Accounts

1 Rent of store space for March was paid, ₱2,000.

1 Bought furniture and equipment from J &C Company, ₱2,000. Term

3 Bought merchandise on account from Ali Mercadejas, ₱50,000, invoice

Terms: 2/5, n/30.

6 Sold merchandise as follows:

Cash Sales – Invoice 101, ₱6,000

Zarrick - Invoice 102,

Terms: 2/15, n/30. ₱44,000

8 Bought for cash, merchandise from RASMA Company, Invoice 6769,

9 Paid general expenses, ₱250.

10 Sold on account to Andra Lopez, Invoice no. 103, ₱5,000. Terms:

15 Paid wages of employees, ₱5,000.

17 Bought merchandise on account from Snow Galvez, Invoice noa-30,

20 Issued credit memo no.1 to Zarrick, ₱200 for the merchandise