C.

Castro Company
General Journal
September 30, 2021

Date Account F Debit Credit

Sept 1 Cash 110 ₱ 214,000.00
Accounts Receivable 120 ₱ 338,000.00
Merchandise Inventory 130 ₱ 426,000.00
Office Supplies 140 ₱ 31,000.00
Prepaid Insurance 150 ₱ 48,000.00
Land 160 ₱ 370,000.00
Building 170 ₱ 900,000.00
Equipment 180 ₱ 800,000.00
Accumulated Depreciation – Building 175 ₱ 250,000.00
Accumulated Depreciation – Equipment 185 ₱ 200,000.00
Accounts Payable 210 ₱ 172,000.00
Interest Payable 230 ₱ 8,000.00
Mortgage Payable 240 ₱ 1,200,000.00
Castro, Capital 310 ₱ 1,297,000.00
To record opening balances

1 Accounts Payable 210 ₱ 115,000.00

Purchases Discounts 530 ₱ 2,300.00
Cash 110 ₱ 112,700.00
To record payment of account within discount period

3 Sales Discounts 430 ₱ 5,400.00

Cash 110 ₱ 174,600.00
Accounts Receivable 120 ₱ 180,000.00
To record collection of account within discount period

4 Accounts Receivable 120 ₱ 210,000.00

Sales 410 ₱ 210,000.00
To record sales on account

5 Sales Returns and Allowances 420 ₱ 25,000.00

Accounts Receivable 120 ₱ 25,000.00
To record sales return

7 Purchases 510 ₱ 232,000.00

Accounts Payable 210 ₱ 232,000.00
To record purchase on account

9 Accounts Payable 210 ₱ 12,000.00

Purchases Returns and Allowances 520 ₱ 12,000.00
To record purchase return
11 Cash 110 ₱ 179,450.00
Sales Discounts 430 ₱ 5,550.00
Accounts Receivable 120 ₱ 185,000.00
To record collection of account within discount period

12 Transportation out 660 ₱ 13,000.00

Cash 110 ₱ 13,000.00
To record payment of freight on goods sold

13 Accounts Payable 210 ₱ 220,000.00

Purchases Discounts 530 ₱ 4,400.00
Cash 110 ₱ 215,600.00
To record payment of account within discount period

14 Accounts Receivable 120 ₱ 330,000.00

Sales 410 ₱ 330,000.00
To record sales on account

14 Transportation in 540 ₱ 6,000.00

Cash 110 ₱ 6,000.00
To record payment of freight on goods purchased

15 Salaries Expense 610 ₱ 74,000.00

Cash 110 ₱ 74,000.00
To record payment of salaries

18 Purchases 510 ₱ 113,000.00

Accounts Payable 210 ₱ 113,000.00
To record purchase on account

18 Office Supplies 140 ₱ 9,000.00

Cash 110 ₱ 9,000.00
To record purchase of office supplies

19 Cash 110 ₱ 320,100.00

Sales Discounts 420 ₱ 9,900.00
Accounts Receivable 120 ₱ 330,000.00
To record collection of account within discount period

20 Accounts Payable 210 ₱ 8,000.00

Purchases Returns and Allowances 520 ₱ 8,000.00
To record purchase return

21 Representation Expense 670 ₱ 3,000.00

Cash 110 ₱ 3,000.00
To record payment of representation expense
 23 Accounts Receivable 120 ₱ 242,000.00
Sales 410 ₱ 242,000.00
To record sales on account

24 Accounts Payable 210 ₱ 105,000.00

Purchases Discounts 530 ₱ 2,100.00
Cash 110 ₱ 102,900.00
To record payment of account within discount period

26 Representation Expense 670 ₱ 9,000.00

Cash 110 ₱ 9,000.00
To record payment of representation expense

28 Transportation in 540 ₱ 4,000.00

Cash 110 ₱ 4,000.00
To record payment of freight on goods purchased

29 Purchase 510 ₱ 378,000.00

Accounts Payable 210 ₱ 378,000.00
To record purchase on account

29 Sales Returns and Allowances 420 ₱ 18,000.00

Accounts Receivable 120 ₱ 18,000.00
To record sales return

30 Repairs Expense 680 ₱ 19,000.00

Cash 110 ₱ 19,000.00
To record payment of repairs expense

30 Castro, Withdrawals 320 ₱ 170,000.00

Cash 110 ₱ 170,000.00
To record personal withdrawal of owner

Adjusting Entries:

30 Salaries Expense 610 ₱ 73,000.00

Salaries Payable 220 ₱ 73,000.00
To record accrued salaries

30 Insurance Expense 630 ₱ 2,000.00

Prepaid Insurance 150 ₱ 2,000.00
To record expired portion of prepaid insurance

30 Depreciation Expense – Building 640 ₱ 3,000.00

 Depreciation Expense – Equipment 650 ₱ 4,500.00
Accumulated Depreciation – Building 175 ₱ 3,000.00
Accumulated Depreciation – Equipment 185 ₱ 4,500.00
To record depreciation for the month

30 Office Supplies Expense 620 ₱ 33,000.00

Office Supplies 140 ₱ 33,000.00
To record used portion of office supplies

30 Interest Expense 690 ₱ 1,000.00

Interest Payable 230 ₱ 1,000.00
To record accrued interest

Closing Entries:

30 Sales 410 ₱ 782,000.00

Sales Returns and Allowances 420 ₱ 43,000.00
Sales Discounts 430 ₱ 20,850.00
Income Summary 330 ₱ 718,150.00
To close sales and related accounts

30 Purchases Returns and Allowances 520 ₱ 20,000.00

Purchases Discounts 530 ₱ 8,800.00
Merchandise Inventory, End 130 ₱ 653,000.00
Income Summary 330 ₱ 477,200.00
Purchases 510 ₱ 723,000.00
Transportation In 540 ₱ 10,000.00
Merchandise Inventory, Beg 130 ₱ 426,000.00
To close cost of sales accounts and establish ending inventory

30 Income Summary ₱ 234,500.00

Salaries Expense 610 ₱ 147,000.00
Office Supplies Expense 620 ₱ 33,000.00
Insurance Expense 630 ₱ 2,000.00
Depreciation Expense - Building 640 ₱ 3,000.00
Depreciation Expense - Equipment 650 ₱ 4,500.00
Transportation Out 660 ₱ 13,000.00
Representation Expense 670 ₱ 12,000.00
Repairs Expense 680 ₱ 19,000.00
Interest Expense 690 ₱ 1,000.00
To close expense accounts

30 C. Castro, Capital 310 ₱ 170,000.00

C. Castro, Withdrawals 320 ₱ 170,000.00
To close wihtdrawal accounts
30 Income Summary 330 ₱ 6,450.00
C. Castro, Capital 410 ₱ 6,450.00
To close income summary account
 Cash (110)
Date Particulars F Debit Date
Sept 1 Beginning balance JE - 1 ₱ 214,000.00 Sept 1
3 To record collection of account within discount period JE - 3 ₱ 174,600.00 12
11 To record collection of account within discount period JE - 8 ₱ 179,450.00 13
19 To record collection of account within discount period JE - 16 ₱ 320,100.00 14
15
18
21
24
26
28
30
30
149,950.00 ₱ 888,150.00

Accounts Receivable (120)

Date Particulars F Debit Date
Sept 1 Beginning balance JE - 1 ₱ 338,000.00 Sept 3
4 To record sales on account JE - 4 ₱ 210,000.00 5
14 To record sales on account JE - 11 ₱ 330,000.00 11
23 To record sales on account JE - 19 ₱ 242,000.00 19
29
382,000.00 ₱ 1,120,000.00

Merchandise Inventory (130)

Date Particulars F Debit Date
Sept 1 Beginning balance JE - 1 ₱ 426,000.00 Sept 30
30 To close cost of sales accounts and establish ending inve CE - 2 ₱ 653,000.00
653,000.00 ₱ 1,079,000.00

Office Supplies (140)

Date Particulars F Debit Date
Sept 1 Beginning balance JE - 1 ₱ 31,000.00 Sept 30
18 To record purchase of office supplies JE - 15 ₱ 9,000.00
7,000.00 ₱ 40,000.00

Prepaid Insurance (150)

Date Particulars F Debit Date
Sept 1 Beginning balance JE - 1 ₱ 48,000.00 Sept 30
46,000.00 ₱ 48,000.00

Land (160)
 Date Particulars F Debit Date
Sept 1 Beginning balance JE - 1 ₱ 370,000.00 Sept

Building (170)
Date Particulars F Debit Date
Sept 1 Beginning balance JE - 1 ₱ 900,000.00 Sept

Accumulated Depreciation – Building (175)

Date Particulars F Debit Date
Sept 1
30

Equipment (180)
Date Particulars F Debit Date
Sept 1 Beginning balance JE - 1 ₱ 800,000.00 Sept

Accumulated Depreciation – Equipment (185)

Date Particulars F Debit Date
Sept 1
30
(110)
Particulars F Credit Date
To record payment of account within discount period JE - 2 ₱ 112,700.00 Sept 1
To record payment of freight on goods sold JE - 9 ₱ 13,000.00 9
To record payment of account within discount period JE - 10 ₱ 215,600.00 13
To record payment of freight on goods purchased JE - 12 ₱ 6,000.00 20
To record payment of salaries JE - 13 ₱ 74,000.00 24
To record purchase of office supplies JE - 15 ₱ 9,000.00
To record payment of representation expense JE - 18 ₱ 3,000.00
To record payment of account within discount period JE - 20 ₱ 102,900.00
To record payment of representation expense JE - 21 ₱ 9,000.00 Date
To record payment of freight on goods purchased JE - 22 ₱ 4,000.00
To record payment of repairs expense JE - 25 ₱ 19,000.00
To record personal withdrawal of owner JE - 26 ₱ 170,000.00
₱ 738,200.00
Date
eivable (120)
Particulars F Credit
To record collection of account within discount period JE - 3 ₱ 180,000.00
To record sales return JE - 5 ₱ 25,000.00
To record collection of account within discount period JE - 8 ₱ 185,000.00
To record collection of account within discount period JE - 16 ₱ 330,000.00 Date
To record sales return JE - 24 ₱ 18,000.00
₱ 738,000.00

nventory (130)
Particulars F Credit Date
To close cost of sales accounts and establish ending inve CE - 2 ₱ 426,000.00 Sept 30

₱ 426,000.00

plies (140)
Particulars F Credit Date
To record used portion of office supplies AJE - 4 ₱ 33,000.00 Sept 30

₱ 33,000.00

urance (150) Date

Particulars F Credit Sept 30
To record expired portion of prepaid insurance AJE - 2 ₱ 2,000.00 30
₱ 2,000.00 30

(160)
 Particulars F Credit
Date
Sept 30

g (170)
Particulars F Credit

Date
ation – Building (175) Sept 5
Particulars F Credit 29
Beginning balance JE - 1 ₱ 250,000.00
To record depreciation for the month AJE - 3 ₱ 3,000.00
₱ 253,000.00
Date
ent (180) Sept 3
Particulars F Credit 11
19

tion – Equipment (185)

Particulars F Credit
Beginning balance JE - 1 ₱ 200,000.00
To record depreciation for the month AJE - 3 ₱ 4,500.00
₱ 204,500.00
 Accounts Payable (210)
Particulars F Debit Date
To record payment of account within discount period JE - 2 ₱ 115,000.00 Sept 1
To record purchase return JE - 7 ₱ 12,000.00 7
To record payment of account within discount period JE - 10 ₱ 220,000.00 18
To record purchase return JE - 17 ₱ 8,000.00 29
To record payment of account within discount period JE - 20 ₱ 105,000.00
₱ 460,000.00

Salaries Payable (220)

Particulars F Debit Date
Sept 30

Interest Payable (230)

Particulars F Debit Date
Sept 1
30

Mortgage Payable (240)

Particulars F Debit Date
Sept 1

Castro, Capital (310)

Particulars F Debit Date
To close wihtdrawal accounts CE - 4 ₱ 170,000.00 Sept 1
30
₱ 170,000.00

Castro, Withdrawals (320)

Particulars F Debit Date
To record personal withdrawal of owner JE - 26 ₱ 170,000.00 Sept 30
- ₱ 170,000.00

Income Summary (330)

Particulars F Debit Date
To close cost of sales accounts and establish ending inve CE - 2 ₱ 477,200.00 Sept 30
To close expense accounts CE - 3 ₱ 234,500.00
To close income summary account CE - 5 ₱ 6,450.00
- ₱ 718,150.00
 Sales (410)
Particulars F Debit Date
To close sales and related accounts CE - 1 ₱ 782,000.00 Sept 4
14
23
₱ 782,000.00

Sales Returns and Allowances (420)

Particulars F Debit Date
To record sales return JE - 5 ₱ 25,000.00 Sept 30
To record sales return JE - 24 ₱ 18,000.00
- ₱ 43,000.00

Sales Discount (430)

Particulars F Debit Date
To record collection of account within discount period JE - 3 ₱ 5,400.00 Sept 1
To record collection of account within discount period JE - 8 ₱ 5,550.00
To record collection of account within discount period JE - 16 ₱ 9,900.00
- ₱ 20,850.00
 C. Castro Company
General Ledger
September 30, 2021

Payable (210)
Particulars F Credit Date
Beginning balance JE - 1 ₱ 172,000.00 Sept 7
To record purchase on account JE - 6 ₱ 232,000.00 18
To record purchase on account JE - 14 ₱ 113,000.00 29
To record purchase on account JE - 23 ₱ 378,000.00

435,000.00 ₱ 895,000.00
Date
ayable (220) Sept 30
Particulars F Credit
To record accrued salaries AJE - 1 ₱ 73,000.00

ayable (230) Date

Particulars F Credit Sept 30
Beginning balance JE - 1 ₱ 8,000.00
To record accrued interest AJE - 5 ₱ 1,000.00
₱ 9,000.00

Payable (240)
Particulars F Credit Date
Beginning balance JE - 1 ₱ 1,200,000.00 Sept 14
28

apital (310)
Particulars F Credit
Beginning balance JE - 1 ₱ 1,297,000.00 Date
To close income summary account CE - 5 ₱ 6,450.00 Sept 15
1,133,450.00 ₱ 1,303,450.00 30

hdrawals (320)
Particulars F Credit
To close wihtdrawal accounts CE - 4 ₱ 170,000.00 Date
₱ 170,000.00 Sept 30

ummary (330)
Particulars F Credit
To close sales and related accounts CE -1 ₱ 718,150.00 Date
Sept 30

₱ 718,150.00
s (410) Date
Particulars F Credit Sept 30
To record sales on account JE - 4 ₱ 210,000.00
To record sales on account JE - 11 ₱ 330,000.00
To record sales on account JE - 19 ₱ 242,000.00
- ₱ 782,000.00 Date
Sept 30
d Allowances (420)
Particulars F Credit
To close sales and related accounts CE - 1 ₱ 43,000.00
Date
₱ 43,000.00 Sept 12

count (430)
Particulars F Credit
To close sales and related accounts CE - 1 ₱ 20,850.00

₱ 20,850.00
 Purchases (510)
Particulars F Debit Date
To record purchase on account JE - 6 ₱ 232,000.00 Sept 30
To record purchase on account JE - 14 ₱ 113,000.00
To record purchase on account JE - 23 ₱ 378,000.00
- ₱ 723,000.00

Purchases Returns and Allowances (520)

Particulars F Debit Date
To close cost of sales accounts and establish ending inventory CE - 2 ₱ 20,000.00 Sept 9
20
₱ 20,000.00

Purchases Discount (530)

Particulars F Debit Date
To close cost of sales accounts and establish ending inventory CE - 2 ₱ 8,800.00 Sept 1
13
24
₱ 8,800.00

Transportation In (550)
Particulars F Debit Date
To record payment of freight on goods purchased JE - 12 ₱ 6,000.00 Sept 30
To record payment of freight on goods purchased JE - 22 ₱ 4,000.00
- ₱ 10,000.00

Salaries Expense (610)

Particulars F Debit Date
To record payment of salaries JE - 13 ₱ 74,000.00 Sept 30
To record accrued salaries AJE - 1 ₱ 73,000.00
- ₱ 147,000.00

Office Supplies Expense (620)

Particulars F Debit Date
To record used portion of office supplies AJE - 4 ₱ 33,000.00 Sept 30
- ₱ 33,000.00

Insurance Expense (630)

Particulars F Debit Date
To record expired portion of prepaid insurance AJE - 2 ₱ 2,000.00 Sept 30
- ₱ 2,000.00

Depreciation Expense - Building (640)

Particulars F Debit Date
To record depreciation for the month AJE - 3 ₱ 3,000.00 Sept 30
- ₱ 3,000.00

Depreciation Expense - Equipment (650)

Particulars F Debit Date
To record depreciation for the month AJE - 3 ₱ 4,500.00 Sept 30
- ₱ 4,500.00

Transportation Out (660)

Particulars F Debit Date
To record payment of freight on goods sold JE - 9 ₱ 13,000.00 Sept 30
- ₱ 13,000.00
ses (510)
Particulars F Credit Date
To close cost of sales accounts and establish ending inventory CE -2 ₱ 723,000.00 Sept 21
26

₱ 723,000.00

and Allowances (520) Date

Particulars F Credit Sept 30
To record purchase return JE - 7 ₱ 12,000.00
To record purchase return JE - 17 ₱ 8,000.00
- ₱ 20,000.00
Date
iscount (530) Sept 30
Particulars F Credit
To record payment of account within discount period JE - 2 ₱ 2,300.00
To record payment of account within discount period JE - 10 ₱ 4,400.00
To record payment of account within discount period JE - 20 ₱ 2,100.00
- ₱ 8,800.00

tion In (550)
Particulars F Credit
To close cost of sales accounts and establish ending inventory CE - 2 ₱ 10,000.00

₱ 10,000.00

pense (610)
Particulars F Credit
To close expense accounts CE - 3 ₱ 147,000.00

₱ 147,000.00

s Expense (620)
Particulars F Credit
To close expense accounts CE - 3 ₱ 33,000.00
₱ 33,000.00

xpense (630)
Particulars F Credit
To close expense accounts CE - 3 ₱ 2,000.00
₱ 2,000.00

nse - Building (640)

 Particulars F Credit
To close expense accounts CE - 3 ₱ 3,000.00
₱ 3,000.00

se - Equipment (650)
Particulars F Credit
To close expense accounts CE - 3 ₱ 4,500.00
₱ 4,500.00

tion Out (660)

Particulars F Credit
To close expense accounts CE - 3 ₱ 13,000.00
₱ 13,000.00
 Representation Expense (670)
Particulars F Debit Date
To record payment of representation expense JE - 18 ₱ 3,000.00 Sept 1
To record payment of representation expense JE - 21 ₱ 9,000.00
- ₱ 12,000.00

Repairs Expense (680)

Particulars F Debit Date
To record payment of repairs expense JE - 25 ₱ 19,000.00 Sept 1
- ₱ 19,000.00

Interest Expense (690)

Particulars F Debit Date
To record accrued interest AJE - 5 ₱ 1,000.00 Sept 1
- ₱ 1,000.00
ense (670)
Particulars F Credit
To close expense accounts CE - 3 ₱ 12,000.00

₱ 12,000.00

e (680)
Particulars F Credit
To close expense accounts CE - 3 ₱ 19,000.00
₱ 19,000.00

e (690)
Particulars F Credit
To close expense accounts CE - 3 ₱ 1,000.00
₱ 1,000.00
 C. Castro Company
Income Statement
For the month ended September 30, 2021

NET SALES
Sales
Sales Discount ₱ 20,850.00
Sales Returns and Allowances ₱ 43,000.00
Net Sales
COST OF GOODS SOLD
Merchandise Inventory, Beg ₱ 426,000.00
Purchases ₱ 723,000.00
Purchases Return and Allowances ₱ 20,000.00
Purchases Discount ₱ 8,800.00 ₱ 28,800.00
Net Purchases ₱ 694,200.00
Transportation In ₱ 10,000.00
Delivered Cost of Purchases ₱ 704,200.00
Cost of Goods Available for Sale ₱ 1,130,200.00
Merchandise Inventory, End ₱ 653,000.00
Cost of Goods Sold
Gross Profit
OPERATING EXPENSES
Salaries Expense ₱ 147,000.00
Office Supplies Expense ₱ 33,000.00
Insurance Expense ₱ 2,000.00
Depreciation Expense - Building ₱ 3,000.00
Depreciation Expense - Equipment ₱ 4,500.00
Transportation Out ₱ 13,000.00
Representation Expense ₱ 12,000.00
Repairs Expense ₱ 19,000.00
Interest Expense ₱ 1,000.00
Net Income

C. Castro Company
Statement of Changes in Equity
For the month ended September 30, 2021

C. Castro, Capital (beginning)

Add: Net Income
Less: Withdrawals
C. Castro, Capital (ending)

C. Castro Company
Balance Sheet
As of September 30, 2021
 ASSETS
Cash
Accounts Receivable
Merchandise Inventory
Office Supplies
Prepaid Insurance
Land
Building ₱ 900,000.00
Accumulated Depreciation – Building ₱ 253,000.00
Equipment ₱ 800,000.00
Accumulated Depreciation – Equipment ₱ 204,500.00
Total Assets

LIABILITIES
Accounts Payable
Salaries Payable
Interest Payable
Mortgage Payable
Total Liabilities
OWNER'S EQUITY
C. Castro, Capital
Total Liabilities and Owner's Equity

C. Castro Company
Statement of Cash Flow
For the month ended September 30, 2021

Cash Flows from Operating Activities

Collection from customers
Payment to suppliers/vendors
Payment for freight
Payment of various expenses
Payment for purchase of supplies
Net cash provided by (used) in operating activities
Cash Flows from Investing Activities
Purchase of property and equipment
Sale of property and equipment
Net cash provided by (used) in investing activities
Cash Flows from Financing Activities
Investment of owner
Withdrawal of owner
Net cash provided by (used) in financing activities
Net increase (decrease) in cash
Add: Cash balance at the beginning of the month
Cash balance at the end of the month
₱ 782,000.00

₱ 63,850.00
₱ 718,150.00

₱ 477,200.00
₱ 240,950.00

₱ 234,500.00
₱ 6,450.00

₱ 1,297,000.00
₱ 6,450.00
-₱ 170,000.00
₱ 1,133,450.00
₱ 149,950.00
₱ 382,000.00
₱ 653,000.00
₱ 7,000.00
₱ 46,000.00
₱ 370,000.00

₱ 647,000.00

₱ 595,500.00
₱ 2,850,450.00

₱ 435,000.00
₱ 73,000.00
₱ 9,000.00
₱ 1,200,000.00
₱ 1,717,000.00

₱ 1,133,450.00
₱ 2,850,450.00

₱ 674,150.00
-₱ 431,200.00
-₱ 23,000.00
-₱ 105,000.00
-₱ 9,000.00
₱ 105,950.00

₱ -
₱ -
₱ -

₱ -
-₱ 170,000.00
-₱ 170,000.00
-₱ 64,050.00
₱ 214,000.00
₱ 149,950.00
 C. Castro Company
Post-Closing Trial Balance
As of September 30, 2021

Folio Debit Credit

Cash 110 ₱ 149,950.00
Accounts Receivable 120 ₱ 382,000.00
Merchandise Inventory 130 ₱ 653,000.00
Office Supplies 140 ₱ 7,000.00
Prepaid Insurance 150 ₱ 46,000.00
Land 160 ₱ 370,000.00
Building 170 ₱ 900,000.00
Accumulated Depreciation – Buil 175 ₱ 253,000.00
Equipment 180 ₱ 800,000.00
Accumulated Depreciation – Equ 185 ₱ 204,500.00
Accounts Payable 210 ₱ 435,000.00
Salaries Payable 220 ₱ 73,000.00
Interest Payable 230 ₱ 9,000.00
Mortgage Payable 240 ₱ 1,200,000.00
C. Castro, Capital 310 ₱ 1,133,450.00
Total ₱ 3,307,950.00 ₱ 3,307,950.00