Go, Brian Ray Q. Course: BSIT2-A1, Teacher in ACC111: Ms.

Jona Caberte Date Submitted:02/04/22

Instruction: Solve the following case. on a separate sheet. Neatly...

Instruction: Solve the following case. on a separate sheet. Neatly show your solution for each requirement for the following case.

The end-of-month trial balance of St. Paul Technology at January 31, 2012, follows:

ST. PAUL TECHNOLOGY Trial Balance January 31,

2012 Account Debit Credit Cash ₱16,260
Accounts receivable ₱18,930 Inventory ₱65,000
Supplies. ₱2,580 Building ₱188,090 Accumulated
depreciation-building ₱35,300 Furniture ₱44,800
₱16,260 Accumulated depreciation-furniture ₱5,500
Accounts payable ₱27,900 Salary payable
Unearned sales revenue 6,480 Note payable,
long-term ₱85,000 Tarsus, capital ₱152,190 Tarsus,
drawing ₱9,100 Sales revenue ₱179,930 Sales
₱ 35,300 discounts ₱7,100 Sales returns and allowances
₱8,080 Cost of goods sold ₱101,900 Selling
expense ₱21,380 General expense ₱9,080 Total
₱492,300, ₱492,300.

₱492,300 ₱492,300

Additional data at January 31, 2012:

A. Supplies consumed during the month, ₱1,400. Half is selling expense, and the other half is general expense.

B. Depreciation for the month: building, ₱3,800; furniture, ₱4,600. One-fourth of depreciation is selling expense, and three-
fourths is general expense.
C. Unearned sales revenue earned during January, ₱4,420.

D. Accrued salaries, a general expense, ₱1,100.

E. Inventory on hand, ₱63,460. St. Paul uses the perpetual inventory system.

Requirements:

1. Using four-column accounts, open the accounts listed on the trial balance, inserting their unadjusted balances. Date the
balances of the following accounts January 1: Supplies; Building; Accumulated depreciation—building; Furniture;
Accumulated depreciation— furniture; Unearned sales revenue; and Tarsus, capital. Date the balance of Tarsus, drawing,
January 31. Also open the Income summary account.

2. Enter the trial balance on a worksheet, and complete the worksheet for the month ended January 31, 2012. St. Paul
Technology groups all operating expenses under two accounts, Selling expense and General expense. Leave two blank lines
under Selling expense and three blank lines under General expense.

3. Prepare the company's multi-step income statement and statement of owner's equity for the month ended January 31,
2012. Also prepare the balance sheet at that date in report form.

4. Journalize the adjusting and closing entries at January 31.

5. Post the adjusting and closing entries

Req.1

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St. Paul Technology

Worksheet
For the Month Ended January 31, 2012
Comprehensive ACCOUNT TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL INCOME STATEMENT BALANCE SHEET
Problem, Chapters TITLE BALANCE
1-5 *Solutions for DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
Requirements 1 Cash ₱16,260 ₱16,260 ₱16,260
and 5 are omitted Accounts 18,930 18,930 18,930
receivable
in this problem
Inventory 65,000 (e)₱1,540 63,460 63,460
Req. 2 Supplies 2,580 (a) 1,400 1,180 1,180
Comprehensive Building 188,090 188,090 188,090
Problem Accumulated ₱35,300 (b) 3,800 ₱39,100 ₱39,100
depreciation-
building
Furniture 44,800 44,800 44,800
Accumulated 5,500 (b)4,600 10,100 10,100
depreciation-
building
Accounts 27,900 27,900 27,900
Salary 0 (d)1,100 1,100 1,100
payable
Unearned 6,480 (c) ₱4,420 2,060 2,060
sales revenue
Note payable, 85,000 85,000 85,000
long-term
Tarsus, capital 152,190 152,190 152,190
Tarsus, 9,100 9,100 9,100
drawing
Sales revenue 179,930 (c) 4,420 184,350
Sales 7,100 7,100 ₱7,100 ₱184,350
discounts
Sales returns 8,080 8,080 8,080
and
allowances
Cost of goods 101,900 (e) 1,540 103,440 103,440
sold
Selling 21,380 (a) 700 24,180 24,180
expense
(b) 950*
(b)1,150*
General 9,080 (a) 700 17,180 17,180
expense
(b)2,850*
(b)3,450*
________ ________ (d)1,100 _______ ________ ________ ________ ________ ________ ________
₱492,300 ₱492,300 ₱16,860 ₱16,860 ₱501,800 ₱501,800 ₱159,980 ₱184,350 ₱341,820 ₱317,450
Net Income 24,370 24,370
₱184,350 ₱184,350 ₱341,820 ₱341,820
*Students may
combine the b-1 and b-2 amounts as ₱2,100 Selling expense and ₱6,300 General expense.
Merchandising Operations
Comprehensive Problem, Chapter 1-5
*Solutions for Requirements 1 and 5 are omitted in this problem (continued) Comprehensive Problem Chs 1-5
Req. 3 (financial statements)

St. Paul Technology

Income Statement
Month Ended January 31, 2012
Revenue
Sales revenue ₱184,350
Less: Sales returns and allowances ₱88,080
Sales discounts 7,100 15,180
Net sales revenue ₱169,170
Cost of goods sold 103,440
Gross profit ₱65,730
Operating expenses
Selling expense ₱ 24,180
General expense 17,180 41,360
Net income ₱ 24,370

St. James Technology

Statement of Owner’s Equity
Month Ended January 31, 2012
Tarsus, capital, January 1, 2012 ₱152,190
Net income 24,370
176,560
Drawing (9,100)
Tarsus, capital, January 31, 2012 ₱167,460

Merchandising Operations

Comprehensive Problem, Chapters 1-5

*Solutions for Requirements 1 and 5 are omitted in this problem (continued) Comprehensive Problem Chs 1-5

Req. 3 (financial statements)

St. Paul Technology

Balance Sheet
January 31, 2012
ASSETS
Current assets:
Cash ₱16,260
Accounts receivable 18,930
Inventory 63,460
Supplies 1,180
Total current assets ₱99,830
Plant assets:
Building ₱188,090
Accumulated depreciation-building (39,100) 148,990
Furniture ₱ 44,800
Accumulated depreciation-furniture (10,100) 34,700
Total assets ₱ 283,520
LIABILITIES
Current liabilities:
Accounts payable ₱27,900
Salary payable 1,100
Unearned sales revenue 2,060
Total current liabilities 31,060
Long-term liabilities:
Note payable, long-term 85,000
Total liabilities 116,060
OWNER’S EQUITY
Tarsus, capital 167,460
Total liabilities and owner’s equity ₱283,520
Req. 3

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Comprehensive Problem, Chapter 1-5

*Solutions for Requirements 1 and 5 are omitted in this problem (continue) Comprehensive Problem Chs 1-5

Req. 4 (adjusting entries)

Journal
DATE ACCOUNTS AND POST REF. DEBIT CREDIT
EXPLAINATIONS
Adjusting Entries
2012
a. January 31 Selling expense ₱700
General expense 700
Supplies ₱1,400

b. 31 Selling expense 950

General expense 2,850
Accumulated depreciation-
building 3,800

b. 31 Selling expense 1,150

General expense 3,450
Accumulated depreciation- 4,600
furniture

c. 31 Unearned sales revenue 4,420

Sales revenue 4,420

d. 31 General expense 1,100

Salary payable 1,100

e. 31 Cost of goods sold ₱1,540

Inventory ₱1,540

Req. 4

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Comprehensive Problem, Chapter 1-5

*Solutions for Requirements 1 and 5 are omitted in this problem (continue) Comprehensive Problem Chs 1-5

Req. 5 (closing entries)

Journal Entry
DATE ACCOUNTS AND POST REF. DEBIT CREDIT
EXPLAINATIONS
Closing Entries
2012
January 31 Sales revenue ₱184,350
Sales discounts ₱7,100
Sales returns and 8,080
allowances
Income summary 169,170

31 Income summary 144,800

Cost of goods sold 103,440
Selling expense 24,180
General expense 17,180

31 Income summary
(₱169,170-₱144,800) 24,370
Tarsus, capital 24,370

31 Tarsus, capital ₱9,100

Tarsus, drawing ₱9,100

Req. 5

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