Comprehensive Problem

Listed below are the Feb. 1, 2013 account balances of the Teresita Buenaflor Company:

Debit Credit
110 Cash 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 Depreciation - Building 350,000
180 Equipment 2,310,000
185 Accumulated Depreciation - Equipment 630,000
210 Accounts Payable 108,000
220 Salaries Payable
230 Mortgage Payable 2,600,000
310 Buenaflor, Capital 1,569,000
320 Buenaflor, Withdrawals
330 Income Summary
410 Sales
420 Sales Returns and Allowances
430 Sales Discounts
510 Purchases
520 Purchase Returns and Allowances
530 Purchase 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 5,257,000

During the month of February 2013, the following transactions occurred:

Feb. 1 Collected P113,000 from 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 account to Gonzales Company, P270,000. Terms: FOB shipping
point; 2/10, n/30
7 Paid for advertising for the month of February, P6,000
7 Sold merchandise for cash, P250,000
8 Paid the amount due from the Feb. 4 transaction
9 Paid Iloilo freight P4,000 for delivering merchandise last Feb. 4
10 Received returns from the Gonzales Company , P70,000
12 Received payment from the Gonzales 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 Ronzales Company, P392,000. Terms: FOB destination;
2/10, n/30
18 Paid P4,000 freight charges on the sale of Feb. 16
19 Acquired supplies for cash, P21,000
20 Purchased P125,000 of merchandise from Lozada Company on account. Terms:
FOB destination; 3/10, n/30
22 Paid P7,000 miscellaneous expenses
23 Received payment from Ronzales Company less discounts
24 Purchased P373,000 of merchandise on account from Agustin Company. Terms: FOB
shipping point; 3/10, n/30
24 Paid La Paz Express P9,000 freight for delivering merchandise acquired from Agustin
25 Sold merchandise to Ronzales Company on account, P420,000. Terms: FOB shipping
point; 2/10, n/30
26 Received returns from Ronzales Company, P71,000
28 Buenaflor withdrew P400,000 from the business
28 Returned merchandise purchased from Agustin on Feb. 24, P25,000
28 Salaries in the amount of P51,000 have accrued
28 Insurance coverage with premiums of P2,000 has expired at month-end
28 Depreciation on the building and on the equipment for the month amounted to
P9,000 and P12,000 respectively
28 Supplies on hand amounted to P14,000
28 A count of the merchandise inventory amounted to P397,000
Required:
1 Post the Feb. 1, 2013 account balances to the ledger accounts.
2 Record the transactions for the month of February in a journal and post the
transactions to the ledger.
3 Prepare a Trial Balance
4 Prepare a Statement for Performance, Statement of Changes in Owner's Equity,
Statement of Financial Position and Statement of Cash Flow
5 Prepare the closing entries for the month
6 Post the closing entries to the ledger accounts.
7 Prepare a Post-closing Trial Balance.
 Kareen's Bicycle Rental Business
GENERAL JOURNAL
For the Month Ended April 2019

Page 1
DATE PARTICULARS PR DEBIT CREDIT
2019
April 2 Cash 110 120, 000.00
Leon, Capital 120,000.00
#
3 Supplies 130 1,500.00
Accounts Payable 1,500.00
#
4 Bicycles 25,000.00
Cash 110 12,000.00
Accounts Payable 13,000.00
#
5 Container 29,000.00
Cash 110 29,000.00
#
6 Cash 110 4,700.00
Rental Revenues 4,700.00
#
8 Container 4,000.00
Cash 110 4,000.00
#
10 Maintenance Expense 750.00
Cash 110 750.00
#
13 Cash 110 5,000.00
Rental Revenues 5,000.00
#
16 Wages Expense 480.00
Cash 110 480.00
#
17 Accounts Payable 1,500.00
Cash 110 1,500.00
#
18 Repair Expense 550.00
Cash 110 550.00
#
20 Cash 110 5,500.00
Rental Revenues 5,500.00
#
22 Wages Expense 480.00
Cash 110 480.00
#
23 Accounts Receivable 120 1,100.00
 Rental Revenues 1,100.00
#
Page 2

DATE PARTICULARS PR DEBIT CREDIT

2019
April 25 Concession Fee Expense 3,000.00
Cash 110 3,000.00
#
27 Cash 110 4,100.00
Rental Revenues 4,100.00
#
29 Wages Expense 480.00
Cash 110 480.00
#
30 Leon, Withdrawals 5,000.00
Cash 110 5,000.00
 Kareen's Bicycle Rental Business
GENERAL LEDGER
For the Month Ended April 2019

110 CASH BALA

DATE PARTICULARS PR DEBIT CREDIT DEBIT
2019
April 2 120,000.00 120,000.00
4 12,000.00 108,000.00
5 29,000.00 79,000.00
6 4,700.00 83,700.00
8 4,000.00 79,700.00
10 750.00 78,950.00
13 5,000.00 83,950.00
16 480.00 83,470.00
17 1,500.00 81,970.00
18 550.00 81,420.00
20 5,500.00 86,920.00
22 480.00 86,440.00
25 3,000.00 83,440.00
27 4,100.00 87,540.00
29 480.00 87,060.00
30 5,000.00 82,060.00
ANCE
CREDIT
 Trial Balance

110 Cash 82,060.00

120 Accounts Receivable 1,100.00
130 Supplies 1,500.00
140 Container 33,000.00
150 Bicycle 25,000.00
160 Accounts Payable 13,000.00
170 Leon, Capital 120,000.00
175 Leon, Withdrawals 5,000.00
180 Rental Revenues 20,400.00
185 Wages Expense 1,440.00
210 Maintenance Expense 750.00
220 Repair Expense 550.00
230 Concession Fee Expense 3,000.00
Total 153,400.00 153,400.00
 Teresita Buenaflor Company
Statement of Cost of Goods Sold
For the Month Ended February 2013

Merchandise Inventory, beginning 413,000.00

Add: Net Purchases
Purchases 668,000.00
Purchase Returns and Allowances (25,000.00)
Purchase Discounts (7,020.00)
Transportation In 13,000.00 648,980.00
Cost of Goods Available for Sale 1,061,980.00
Less: Merchandise Inventory, end 397,000.00
Cost of Goods Sold 664,980.00
 Teresita Buenaflor Company
Statement for Performance
For the Month Ended February 2013

Gross Sales 1,332,000.00

Less: Sales Returns and Allowances 141,000.00
Sales Discounts 11,840.00 152,840.00
Net Sales 1,179,160.00
Less: Cost of Goods Sold 664,980.00
Gross Profit 514,180.00
Less: Expenses
Salaries Expense 102,000.00
Supplies Expense 58,000.00
Insurance Expense 2,000.00
Depreciation Expense - Building 9,000.00
Depreciation Expense - Equipment 12,000.00
Transportation Out 4,000.00
Advertising Expense 6,000.00
Interest Expense 26,000.00
Miscellaneous Expense 7,000.00 226,000.00

Net Profit 288,180.00

 Teresita Buenaflor Company
Statement of Changes in Owner's Equity
For the Month Ended February 2013

Buenaflor, Capital beg. 1,569,000.00

Add: Investments
Net Income 288,180.00 288,180.00
Less: Withdrawals (400,000.00)

Buenaflor, Capital end 1,457,180.00

Statement of Financial Position (Report Form)
Teresita Buenaflor Company
Statement of Financial Position
As of February 28, 2013

ASSETS
Current Assets
Cash 221,180.00
Accounts Receivable 428,000.00
Merchandise Inventory 397,000.00
Supplies 14,000.00
Prepaid Insurance 46,000.00 1,106,180.00
Non-Current Assets
Land 460,000.00
Building 1,750,000.00
Accumulated Dep'n-Bldg. (359,000.00)
Equipment 2,310,000.00
Accumulated Dep'n-Eqpt. (642,000.00) 3,519,000.00

TOTAL ASSETS 4,625,180.00

LIABILITIES & OWNER'S EQUITY

LIABILITIES
Current Liabilities
Accounts Payable 517,000.00
Salaries Payable 51,000.00 568,000.00
Non-Current Liabilities
Mortgage Payable 2,600,000.00
TOTAL LIABILITIES 3,168,000.00
OWNER'S EQUITY
Buenaflor, Capital 1,457,180.00

TOTAL LIABILITIES & OWNER'S EQUITY 4,625,180.00

 Teresita Buenaflor Company
Statement of Cash Flow
For the Month Ended February 28, 2013

Cash Flow from Operating Activities

Cash Sales 250,000.00
Collection of accounts 693,160.00
Payment for freight in (13,000.00)
Purchase of supplies (21,000.00)
Payment for advertising (6,000.00)
Payment for interest (26,000.00)
Payment for salaries (51,000.00)
Payment for freight out (4,000.00)
Payment for Accounts Payable (226,980.00)
Payment for miscellaneous expenses (7,000.00)
Net Cash Flow from Operating Activities 588,180.00

Cash Flow from Investing Activities

Net Cash Flow from Investing Activities -

Cash Flow from Financing Activities

Withdrawals (400,000.00)
Net Cash Flow from Financing Activities (400,000.00)

Total Cash Flow from Operating, Investing & Financing 188,180.00

Add: Cash balance, beginning 33,000.00
Ending Cash Balance, February 2013 221,180.00
 Teresita Buenaflor Company
Post-Closing Trial Balance
February 28, 2013

PARTICULARS DEBIT
110 Cash 221,180.00
120 Accounts Receivable 428,000.00
130 Merchandise Inventory 397,000.00
140 Supplies 14,000.00
150 Prepaid Insurance 46,000.00
160 Land 460,000.00
170 Building 1,750,000.00
175 Accumulated Depreciation - Building
180 Equipment 2,310,000.00
185 Accumulated Depreciation - Equipment
210 Accounts Payable
220 Salaries Payable
230 Mortgage Payable
310 Buenaflor, Capital
Total 5,626,180.00
CREDIT

359,000.00

642,000.00
517,000.00
51,000.00
2,600,000.00
1,457,180.00
5,626,180.00