Victoria Bernal established VB Enterprises on October 1, 2018.

The following transaction took place:

October 1 The owner invested cash into the business, VB Enterprises, P100,000.00
2 Bought merchandise on account from Gloria De Guzman, 2/10, n/30,
P29,900.00
2 Purchased equipment for cash, P12,000.00
3 Office Supplies were brought from Migo Sanchez, P1,200.00
4 Sold on account, terms FOB Destination, 2/10, n/30, P25, 200, Cost of
Goods Sold P20, 160
5 Paid freight on October 4 sale, P400.
7 Received credit from Gloria De Guzman for returned goods, P800.
12 Paid Gloria De Guzman in full
14 Collected in full account on October 4 sales.
15 Paid Salaries, P2,500.
15 Purchased merchandise for cash P14, 400.
16 Received from Landbank of the Philippines proceeds on long-term loan,
P80,000.
17 Supplier on October 15 refunded the company, P250.00 for returns
19 Purchased merchandise from Carlos Garcia, 2/10, n/30, FOB Shipping
point, P14, 200
20 Paid freight on October 19 transaction, P900
21 Merchandise was sold in cash, P26, 400; COGS, P18,200
22 Purchased from Elpidio Quirino merchandise in cash , P12,300
23 Partially paid Carlos Garcia, P9,000
24 Owner withdrew cash for personal use, P 5000
29 Paid refund for defective merchandise to a customer on October 21, P900
30 Account sales was made to Ben Ramos, P 23, 000; COGS, P17,000
31 Payments were made for the following expenses:

Salaries P 2, 500
Advertising 1,000
Rental 3,000
Utilities 400

Required:

1 Journalize the foregoing transactions utilizing the Perpetual Method of recording inventories. Refer to
the given Chart of Accounts.

2. Post the transaction to the General Ledger

3. Prepare the Pre-Closing Trial balance

4. Prepare the following financial statements:

a. Statement of Comprehensive Income

 b. Statement of Changes in Owner’s Equity

c. Statement of Financial Position

d. Statement of Cash Flow

5. Journalize the closing entries

6. Post the closing entries to the General Ledger

7. Prepare the Post-Closing Trial Balance

VB ENTERPRISES
Chart of Accounts
For recordinng:
100 ASSETS 400 REVENUE
101 Cash 401 Sales
102 Accounts Receivable 411 Sales Returns and Allowances
103 Merchandise Inventory 412 Sales Discounts
104 Supplies 500 COST & EXPENSE
Cost of
151 Equipment 501 goods sold
200 LIABILITIES 511 Advertising Expense
Freight
201 Accounts Payable 512 Out
212 Notes Payable 521 Rent Expense
300 EQUITY 522 Salaries
301 Bernal, Capital 523 Utilities
302 Bernal, Drawings

601 INCOME SUMMARY

VB ENTEREPRISES
Chart of Accounts
For reporting:

100 ASSETS 400 INCOME

101 Cash & Cash Equivalent 401
102 Receivables 411 Net Sales
103 Inventories 412
104 Prepaid Expenses 500 Cost & Expenses
Cost of
Goods
151 Property Plant & Equipment 501 Sold
200 LIABILITIES 511 Advertising Expense
Freight
201 Accounts Payable 512 Out
202 Notes Payable 521 Rent Expense
300 EQUITY 522 Salaries
301 Bernal, Capital 523 Utilities
302 Bernal, Drawings

INCOME
601 SUMMARY