110 Cash 33,000.

00
120 Accounts Receivable 192,000.00
130 Merchandise Inventory 413,000.00
140 Supplies 51,000.00
150 Prepaid Insurance 48,000.00
160 Land 460,000.00
170 Building 1,750,000.00
175 Accumulated Depreciation - Bulding 350,000.00
180 Equipment 2,310,000.00
185 Accumulated Depreciation - Equipment 630,000.00
210 Accounts Payable 108,000.00
220 Salaries Payable
230 Mortgage Payable 2,600,000.00
310 Buenaflor, Capital 1,569,000.00
320 Buenaflor, Withdrawals
330 Income Summary
410 Sales
420 Sales Returns and Allowances
430 Sales Discounts
510 Purchases
520 Purchases Returns and Allowances
530 Purchases Discounts
540 Transportation In
610 Salaries Expense
620 Supplies Expense
630 Insurance Expense
640 Depreciation Expense - Building
650 Depreciation Expense - Equipment
660 Transportation Out
670 Advertising Expense
680 Interest Expense
690 Miscellaneous Expense
5,257,000.00 5,257,000.00
Date Account Titles and Explanation P.R. Debit
2021
Feb-01 Cash 110 113,000.00
Accounts Receivable 120
collection from customers on account

Feb-02 Accounts Payable 210 64,000.00

Cash 110
Purchases Discounts 530
paid account dues

Feb-04 Purchases 500 170,000.00

Accounts Payable 210
bought merchandise on account, terms FOB
shipping-point, 3/10, n/30

Feb-05 Accounts Receivable 120 270,000.00

Sales 410

sold merchandise on account to Gonzales

Inc., terms, FOB shipping point, 2/10, n/30

Feb-07 Advertising Expense 670 6,000.00

Cash 110
paid for advertising

Feb-07 Cash 110 250,000.00

Sales 410
sold cash merchandise

Feb-08 Accounts Payable 210 170,000.00

Cash 110
Purchases Discount 530
paid Feb. 04 dues

Feb-09 Transportation In 540 4,000.00

Cash 110
Paid for transportation In

Feb-10 Sales Returns and Allowances 420 70,000.00

Accounts Receivable 120
Sales Returns from Gonzales Inc.

Feb-12 Cash 110 196,000.00

Sales Discounts 430 4,000.00
 Accounts Receivable 120
received payment from Gonzales Inc.

Feb-14 Interest Expense 680 26,000.00

Cash 110
paid mortgage interest

Feb-15 Salaries Expense 610 51,000.00

Cash 110
paid salaries

Feb-16 Accounts Receivable 120 392,000.00

Sales 410

sold merchandise on account to Ronzales

Corp; terms, FOB destination; 2/10, n/30

Feb-18 Transportation Out 660 4,000.00

Cash 110
paid for transportation charges

Feb-19 Supplies 140 21,000.00

Cash 110
acquired supplies

Feb-20 Purchases 510 125,000.00

Accounts Payable 210

bought merchandise on account from

Lozada Imports; terms, FOB destination,
3/10, n/30

Feb-22 Miscellaneous Expense 690 7,000.00

Cash 110
paid miscelaneous fees

Feb-23 Cash 110 384,160.00

Sales Discounts 430 7,840.00
Accounts Receivable 120
received payment from Ronzales Corp

Feb-24 Purchases 510 373,000.00

Accounts Payable 210

bought merchandise on account from

Agustine Enterprises; terms FOB Shipping
point, 3/10, n/30
Feb-24 Transportation In 540 9,000.00
Cash 110
paid for transportation

Feb-25 Accounts Receivable 120 420,000.00

Sales 410

sold merchandise on account to Ronzales

Corp.; terms, FOB shipping point; 2/10, n/30

Feb-26 Sales Returns and Allowances 420 71,000.00

Accounts Receivable 120
sales returns from Ronzales Corp.

Feb-28 Buenaflor, Withdrawals 320 400,000.00

Cash 110
owner's withdrawal

Adjusting Entries
Feb-28 Accounts Payable 210 25,000.00
Purchases Returns and Allowances 520
Returned purchases from Agustin
Enterprises

Feb-28 Salaries Expense 610 51,000.00

Salaries Payable 220
accrued salaries

Feb-28 Insurance Expense 630 2,000.00

Prepaid Insurance 150
to recognize expired portion

Feb-28 Depreciation Expense- Building 640 9,000.00

Accumulated Depreciation- Building 175
to record depreciation

Feb-28 Depreciation Expense - Equipment 650 12,000.00

Accumulated Depriciation- Equipment 185
to record depreciation

Feb-28 Supplies Expense 620 58,000.00

Supplies 140
to recognize used supplies
 Closing Entries
Feb-28 Merchandise Inventory, End 130 397,000.00
Sales 410 1,332,000.00
Purchases Returns and Allowances 520 25,000.00
Purchases Discounts 530 7,020.00
Income Summary 330

to close credit accounts to income summary

Feb-28 Income Summary 330 1,472,840.00

Merchandise Inventory, Beg. 130
Sales Returns and Allowances 420
Sales Discounts 430
Purchases 510
Transportation In 540
Salaries Expense 610
Supplies Expense 620
Insurance Expense 630
Depreciation Expense - Building 640
Depreciation Expense - Equipment 650
Transportation Out 660
Advertising Expense 670
Interest Expense 680
Miscellaneous Expense 690

to close debit accounts to income summary

Feb-28 Income Summary 330 288,180.00

Buenaflor, Capital 310

to close income summary to capital account

Feb-28 Buenaflor, Capital 310 400,000.00

Buenaflor, Withdrawals 320
to close drawings account to capital
Credit

113,000.00

62,080.00
1,920.00

170,000.00

270,000.00

6,000.00

250,000.00

164,900.00
5,100.00

4,000.00

70,000.00
200,000.00

26,000.00

51,000.00

392,000.00

4,000.00

21,000.00

125,000.00

7,000.00

392,000.00

373,000.00
 9,000.00

420,000.00

71,000.00

400,000.00

25,000.00

51,000.00

2,000.00

9,000.00

12,000.00

58,000.00
1,761,020.00

413,000.00
141,000.00
11,840.00
668,000.00
13,000.00
102,000.00
58,000.00
2,000.00
9,000.00
12,000.00
4,000.00
6,000.00
26,000.00
7,000.00

288,180.00

400,000.00
 110 CASH
Date Explanation J.R. Debit Date
Feb-01 account balance JR-1 33,000.00 Feb-02
Feb-01 collection from customer JR-1 113,000.00 Feb-07
Feb-07 cash sales JR-1 250,000.00 Feb-08
Feb-12 received payment from Gonzales INC. JR-1 196,000.00 Feb-09
Feb-23 received payment from Ronzales Corp JR-1 384,160.00 Feb-14
Feb-15
Feb-18
Feb-19
Feb-22
Feb-24
Feb-28
976,160.00
- 754,980.00
221,180.00

120 ACCOUNTS RECEIVABLE

Feb-01 account balance JR-1 192,000.00 Feb-01

sold merchandise on account to Gonzales

Feb-05 JR-1 270,000.00 Feb-10
INC. terms, FOB shipping point 2/10,n30

sold merchandise on account to Rosales

Feb-16 JR-1 392,000.00 Feb-12
Corp., terms, FOB destination; 2/10,n/30

sold merchandise on account to Ronzales

Feb-25 Corp.; terms, FOB shipping point; 2/10, n/30 JR-1 420,000.00 Feb-23

Feb-26
1,274,000.00
- 846,000.00
428,000.00

130 MERCHANDISE INVENTORY

Feb-01 account balance JR-1 413,000.00 Feb-28
- 413,000.00
-

Feb-28 ending balance JR-1 397,000.00

140 SUPPLIES
Feb-01 account balance JR-1 51,000.00 Feb-28
Feb-19 bought supplies JR-1 21,000.00
 72,000.00
- 58,000.00
14,000.00

150 PREPAID INSURANCE

Feb-01 account balance JR-1 48,000.00 Feb-28
- 2,000.00
46,000.00

160 LAND
Feb-01 account balance JR-1 460,000.00

170 BUILDING
Feb-01 account balance JR-1 1,750,000.00

175 ACCUMULATED DEPRECIATION - BUILDING

Feb-01
Feb-28

180 EQUIPMENT
Feb-01 account balance JR-1 2,310,000.00

185 ACCUMULATED DEPRECIATION - EQUIPMENT

Feb-01
Feb-28

210 ACCOUNTS PAYABLE

Feb-02 paid account dues JR-1 64,000.00 Feb-01
Feb-08 paid Feb. 4 dues JR-1 170,000.00 Feb-04

Returned purchases from Agustin

Feb-28 JR-1 25,000.00 Feb-20
Enterprises

Feb-24

259,000.00
- 259,000.00
-
 220 SALARIES PAYABLE
Feb-28

230 MORTGAGE PAYABLE

Feb-01

310 BUENAFLOR, CAPITAL

Feb-28 to close drawings account to capital JR-1 400,000.00 Feb-01

Feb-28

400,000.00
- 400,000.00
-

320 BUENAFLOR, WITHDRAWALS

Feb-28 cash withdrawal of the owner JR-1 400,000.00 Feb-28
- 400,000.00
-

330 INCOME SUMMARY

Feb-28 to close debit accounts to income summary JR-1 1,472,840.00 Feb-28

- 1,472,840.00
-

Feb-28 JR-1 288,180.00

to close income summary to capital account
- 288,180.00
-

410 SALES

Feb-28 closing entry JR-1 1,332,000.00 Feb-04

Feb-07

Feb-16

Feb-25

1,332,000.00
- 1,332,000.00
-
 420 SALES RETURNS AND ALLOWANCES
Feb-10 sales returns from Gonzales INC. JR-1 70,000.00 Feb-28
Feb-26 sales returns from Ronzales Corp. JR-1 71,000.00
141,000.00
- 141,000.00
-

430 SALES DISCOUNT

Feb-12 discount given to Gonzales INC. for early JR-1 4,000.00 Feb-28
payment
discount given to Ronzales Corp for early
Feb-23 JR-1 7,840.00
payment
11,840.00
- 11,840.00
-

510 PURCHASES
bought merchandise on account, terms; FOB
Feb-04 shipping point, 3/10,n/30 JR-1 170,000.00 Feb-28

Feb-20 bought merchandise on account from JR-1 125,000.00

Lozada; terms, FOB destination, 3/10,n/30

bought merchandise on account from

Feb-24 Agustine Enterprises; terms FOB Shipping JR-1 373,000.00
point, 3/10, n/30
668,000.00
- 668,000.00
-

520 PURCHASES RETURNS AND ALLOWANCES

Feb-28 closing entry JR-1 25,000.00 Feb-28

- 25,000.00
-

530 PURCHASES DISCOUNT

Feb-28 closing entry JR-1 7,020.00 Feb-02
Feb-08
7,020.00
- 7,020.00
-

540 TRANSPORTATION IN
Feb-09 paid Iloilo for delivering merchandise JR-1 4,000.00 Feb-28
Feb-24 paid freight JR-1 9,000.00
13,000.00
- 13,000.00
-

610 SALARIES EXPENSE

Feb-15 paid salaries JR-1 51,000.00 Feb-28
Feb-28 accrued salaries JR-1 51,000.00
102,000.00
- 102,000.00
-

620 SUPPLIES EXPENSE

Feb-28 to recognize the used portion JR-1 58,000.00 Feb-28
- 58,000.00
-

630 INSURANCE EXPENSE

Feb-28 to recognize expired portion JR-1 2,000.00 Feb-28
- 2,000.00
-

640 DEPRECIATION EXPENSE - BUILDING

Feb-28 to record depreciation JR-1 9,000.00 Feb-28
- 9,000.00
-

650 DEPRECIATION EXPENSE - EQUIPMENT

Feb-28 to record depreciation JR-1 12,000.00 Feb-28
- 12,000.00
-

660 TRANSPORTATION OUT

Feb-18 paid freight JR-1 4,000.00 Feb-28
- 4,000.00
-

670 ADVERTISING EXPENSE

Feb-07 paid advertising JR-1 6,000.00 Feb-28
- 6,000.00
-

680 INTEREST EXPENSE

Feb-14 paid interest on the mortgage payable JR-1 26,000.00 Feb-28
- 26,000.00
 -

690 MISCELLANEOUS EXPENSE

Feb-22 paid miscelaneous fees JR-1 7,000.00 Feb-28
- 7,000.00
-
CASH
Explanation J.R. Credit
paid account dues JR-1 62,080.00
paid advertising JR-1 6,000.00
paid Feb. 4 dues JR-1 164,900.00
paid freight JR-1 4,000.00
paid interest on the mortgage payable JR-1 26,000.00
paid salaries JR-1 51,000.00
paid freight JR-1 4,000.00
bought supplies JR-1 21,000.00
paid miscelaneous fees JR-1 7,000.00
paid freight JR-1 9,000.00
cash withdrawal of the owner JR-1 400,000.00
754,980.00
- 754,980.00
-

TS RECEIVABLE
collection from customer JR-1 113,000.00

sales returns from Gonzales INC. JR-1 70,000.00

received payment from Gonzales INC. JR-1 200,000.00

received payment from Ronzales Corp JR-1 392,000.00

sales returns from Ronzales Corp. JR-1 71,000.00

846,000.00
- 846,000.00
-

DISE INVENTORY
JR-1 413,000.00
- 413,000.00
-

UPPLIES
to recognize used supplies JR-1 58,000.00
 58,000.00
- 58,000.00
-

D INSURANCE
to recognize the expired portion JR-1 2,000.00
- 2,000.00
-

LAND

UILDING

PRECIATION - BUILDING
account balance JR-1 350,000.00
to record depreciation JR-1 9,000.00
359,000.00

UIPMENT

RECIATION - EQUIPMENT
account balance JR-1 630,000.00
to record depreciation JR-1 12,000.00
642,000.00

NTS PAYABLE
account balance JR-1 108,000.00
bought merchandise on account JR-1 170,000.00
bought merchandise on account from
Lozada Imports, terms; FOB destination, JR-1 125,000.00
3/10, n/30

bought merchandise on account from

Agustine Enterprises; terms FOB Shipping JR-1 373,000.00
point, 3/10, n/30
776,000.00
- 259,000.00
517,000.00
ES PAYABLE
accrued salaries JR-1 51,000.00

AGE PAYABLE
account balance JR-1 2,600,000.00

LOR, CAPITAL
account balance JR-1 1,569,000.00
to close income summary to capital
JR-1 288,180.00
account
1,857,180.00
- 400,000.00
1,457,180.00

, WITHDRAWALS
closing entry JR-1 400,000.00
- 400,000.00
-

E SUMMARY
to close credit accounts to income
JR-1 1,761,020.00
summary
- 1,472,840.00
288,180.00

- 288,180.00
-

SALES
sold merchandise on account to Gonzales
JR-1 270,000.00
INC.
sold merchandise JR-1 250,000.00
sold merchandise on account to Rosales
JR-1 392,000.00
Corp.
sold merchandise on account to Ronzales
Corp.; terms, FOB shipping point; 2/10, n/30 JR-1 420,000.00

1,332,000.00
- 1,332,000.00
-
S AND ALLOWANCES
closing entry JR-1 141,000.00

141,000.00
- 141,000.00
-

DISCOUNT

closing entry JR-1 11,840.00

11,840.00
- 11,840.00
-

RCHASES

closing entry JR-1 668,000.00

668,000.00
- 668,000.00
-

RNS AND ALLOWANCES

Returned purchases from Agustin
JR-1 25,000.00
Enterprises
- 25,000.00
-

SES DISCOUNT
discount for early payment JR-1 1,920.00
discount for early payment JR-1 5,100.00
7,020.00
- 7,020.00
-

ORTATION IN
closing entry JR-1 13,000.00
 13,000.00
- 13,000.00
-

ES EXPENSE
closing entry JR-1 102,000.00

102,000.00
- 102,000.00
-

ES EXPENSE
closing entry JR-1 58,000.00
- 58,000.00
-

NCE EXPENSE
closing entry JR-1 2,000.00
- 2,000.00
-

EXPENSE - BUILDING
closing entry JR-1 9,000.00
- 9,000.00
-

XPENSE - EQUIPMENT
closing entry JR-1 12,000.00
- 12,000.00
-

ORTATION OUT
closing entry JR-1 4,000.00
- 4,000.00
-

SING EXPENSE
closing entry JR-1 6,000.00
- 6,000.00
-

ST EXPENSE
closing entry JR-1 26,000.00
- 26,000.00
 -

NEOUS EXPENSE
closing entry JR-1 7,000.00
- 7,000.00
-
 ACCOUNT TITLES UNADJUSTED TRIAL BALANCE
Debit Credit
Cash 221,180.00
Accounts Receivable 428,000.00
Merchandise Inventory 413,000.00
Supplies 72,000.00
Prepaid Insurance 48,000.00
Land 460,000.00
Building 1,750,000.00
Accumulated Depreciation - Bulding 350,000.00
Equipment 2,310,000.00
Accumulated Depreciation - Equipment 630,000.00
Accounts Payable 517,000.00
Salaries Payable
Mortgage Payable 2,600,000.00
Buenaflor, Capital 1,569,000.00
Buenaflor, Withdrawals 400,000.00
Sales 1,332,000.00
Sales Returns and Allowances 141,000.00
Sales Discounts 11,840.00
Purchases 668,000.00
Purchases Returns and Allowances 25,000.00
Purchases Discounts 7,020.00
Transportation In 13,000.00
Salaries Expense 51,000.00
Supplies Expense
Insurance Expense
Depreciation Expense - Building
Depreciation Expense - Equipment
Transportation Out 4,000.00
Advertising Expense 6,000.00
Interest Expense 26,000.00
Miscellaneous Expense 7,000.00
Totals 7,030,020.00 7,030,020.00
Profit
Totals
 Teresita Buenaflor Shoes
Worksheet
For the Month Ended February 28, 2021
ADJUSTMENTS ADJUSTED TRIAL BALANCE
Debit Credit Debit Credit
221,180.00
428,000.00
413,000.00
d. 58,000.00 14,000.00
b. 2,000.00 46,000.00
460,000.00
1,750,000.00
c. 9,000.00 359,000.00
2,310,000.00
c. 12,000.00 642,000.00
517,000.00
a. 51,000.00 51,000.00
2,600,000.00
1,569,000.00
400,000.00
1,332,000.00
141,000.00
11,840.00
668,000.00
25,000.00
7,020.00
13,000.00
a. 51,000.00 102,000.00
d. 58,000.00 58,000.00
b. 2,000.00 2,000.00
c. 9,000.00 9,000.00
c. 12,000.00 12,000.00
4,000.00
6,000.00
26,000.00
7,000.00
132,000.00 132,000.00 7,102,020.00 7,102,020.00
aflor Shoes
heet
February 28, 2021
FINANCIAL PERFORMANCE FINANCIAL POSITION
Debit Credit Debit Credit
221,180.00
428,000.00
413,000.00 397,000.00 397,000.00
14,000.00
46,000.00
460,000.00
1,750,000.00
359,000.00
2,310,000.00
642,000.00
517,000.00
51,000.00
2,600,000.00
1,569,000.00
400,000.00
1,332,000.00
141,000.00
11,840.00
668,000.00
25,000.00
7,020.00
13,000.00
102,000.00
58,000.00
2,000.00
9,000.00
12,000.00
4,000.00
6,000.00
26,000.00
7,000.00
1,472,840.00 1,761,020.00 6,026,180.00 5,738,000.00
288,180.00 288,180.00
1,761,020.00 1,761,020.00 6,026,180.00 6,026,180.00
 CLOSING ENTRIES POST CLOSING TRIAL-BALANCE
Debit Credit Debit Credit
221,180.00
428,000.00
397,000.00 413,000.00 397,000.00
14,000.00
46,000.00
460,000.00
1,750,000.00
359,000.00
2,310,000.00
642,000.00
517,000.00
51,000.00
2,600,000.00
400,000.00 288,180.00 1,457,180.00
400,000.00
1,332,000.00
141,000.00
11,840.00
668,000.00
25,000.00
7,020.00
13,000.00
102,000.00
58,000.00
2,000.00
9,000.00
12,000.00
4,000.00
6,000.00
26,000.00
7,000.00
2,161,020.00 2,161,020.00 5,626,180.00 5,626,180.00
 Teresita Buenaflor Shoes
Income Statement
For the Month Ended February 28, 2021

Net Sales
Sales
Less: Sales Returns and Allowances
Sales Discounts
Net Sales
Cost of Sales
Merchandise Inventory, Beg.
Purchases ₱ 668,000.00
Less: Purchases Returns and Allowances ₱ 25,000.00
Purchases Discounts 7,020.00 32,020.00
Net Purchases 635,980.00
Transportation In 13,000.00

Net Cost of Purchases

Goods Available for Sale
Less: Merchandise Inventory End
Cost Sales
Gross Profit
Operating Expenses
Salaries Expense
Supplies Expense
Insurance Expense
Depreciation Expense - Building
Depreciation Expense - Equipment
Transportation Out
Advertising Expense
Interest Expense
Miscellaneous Expense
Total Operating Expenses
Operating Profit
 Teresita Buenaflor Shoes
Statement of Changes in Owner's Equity
2021 For the Month Ended February 28, 2021

Buenaflor, Capital, Beginning

₱ 1,332,000.00 Add: Profit
₱ 141,000.00 Total
11,840.00 152,840.00 Less: Withdrawals
₱ 1,179,160.00 Buenaflor, Capital, End

413,000.00

648,980.00
1,061,980.00
397,000.00
664,980.00
₱ 514,180.00

102,000.00
58,000.00
2,000.00
9,000.00
12,000.00
4,000.00
6,000.00
26,000.00
7,000.00
226,000.00
₱ 288,180.00
uenaflor Shoes Teresita Buenaflor Shoes
nges in Owner's Equity Statement of Financial Position
ded February 28, 2021 As at February 28, 2021

₱ 1,569,000.00 ASSETS
288,180.00 Current Assets
1,857,180.00 Cash
400,000.00 Accounts Receivable
₱ 1,457,180.00 Merchandise Inventory
Supplies
Prepaid Insurance
Total Current Assets
Non Current Assets
Land
Building
Less: Accumulated Depreciation - Building

Equipment
Less: Accumulated Depreciation - Equipment

Total Assets
LIABILITIES
Current Liabilities
Accounts Payable
Salaries Payable
Total Current Liabilities
Non Current Liabillities
Mortgage Payable
Total Liabilities
OWNER'S EQUITY
Buenaflor, Capital, End
Total Liabilities and Owner's Equity
 Teresita Buenaflor Shoes
Statement of Financial Position
As at February 28, 2021

ASSETS

₱ 221,180.00
428,000.00
397,000.00
14,000.00
46,000.00
₱ 1,106,180.00

460,000.00
₱ 1,750,000.00
359,000.00 1,391,000.00

2,310,000.00
642,000.00 1,668,000.00 3,519,000.00

₱ 4,625,180.00
LIABILITIES

₱ 517,000.00
51,000.00
₱ 568,000.00

2,600,000.00
3,168,000.00
OWNER'S EQUITY
1,457,180.00
₱ 4,625,180.00