NCI

IIBOOKKEEPI
NGREVI
EWER-MERCHANDI
SINGOPERATI
ONS(
PERI
ODI
C)
PARTI
:COMPLETI
NGTHECYCLE
Thef
oll
owi
ngar
ethet
ransact
ionsoccur
redi
nAGCDi
str
ibut
orsf
ort
hemont
hofOct
ober2015
•Oct
ober1:AGCDist
ri
but
orswasregi
ster
edt
oDTIasasi
ngl
e/sol
epr
opr
iet
orshi
pfor
m ofbusi
ness.
Ms.ACinv
ested₱39,
000f
orherbusi
ness.
•Oct
ober2:Pur
chasedcomput
erequi
pmentwor
th₱10,
000cash.
•Oct
ober2:Pur
chasedmer
chandi
seonaccountf
rom JVLSuppl
yCo.₱15,
900t
erms2/
10,
n/30
•Oct
ober3:
Pur
chasedof
fi
cesuppl
i
esoncashbasi
s,₱700
•October4:Sol
dmer
chandi
seonaccount₱15,
200,FOB Dest
inat
ion,t
erms2/
10,n/
30t
oJMC
company.
•Oct
ober5:Pai
d₱200f
rei
ghtonOct
ober4sal
e.
•Oct
ober6:Recei
vedcr
edi
tfr
om JVLSuppl
yCo.f
ormer
chandi
ser
etur
ned,
₱300
•Oct
ober11:Pai
dJVLSuppl
yCo.
•Oct
ober13:Col
l
ect
edcashf
rom Oct
ober4JMCcompany
•Oct
ober14:Boughtmer
chandi
seoncashbasi
sfor₱14,
400.
•Oct
ober15:Pai
dsal
ari
est
otheempl
oyees₱1,
500
•October16:Bor
rowedmoneyf
rom BPIbankandsi
gnedapr
omi
ssor
ynot
efort
heamountof
₱12,
000
•Oct
ober17:Recei
vedar
efundf
rom asuppl
i
eroncashpur
chaseofOct
ober14amount
ingt
o₱500
•Oct
ober18:Pur
chasedmer
chandi
sef
rom CPLwor
th₱14,
200,
FOBshi
ppi
ngpoi
ntt
erms2/
10,
n/30
•Oct
ober20:Pai
dthef
rei
ghtonOct
ober18pur
chase₱700
•Oct
ober23:Sol
dmer
chandi
sef
or₱16,
400.
•Oct
ober26:Boughtmer
chandi
seoncashwor
th₱12,
300
•October27:Pai
dCPLonOct
ober18pur
chaseamount
ingt
o₱9,
000.Di
scountwasnotal
l
owedon
par
ti
alpayment.
•Oct
ober28:Ms.ACgotcashf
rom herbusi
nessamount
ingt
o₱2,
008f
orper
sonal
use.
•Oct
ober29:Ref
undwasmadet
ocashcust
omer
sfordamagedmer
chandi
sewor
th₱900.
•Oct
ober30:Themer
chandi
sewassol
donaccount₱13,
700n/
30t
oNDT.
•October30:AGCDi st
ri
but
orspai
dthef
oll
owi
ng:Adv
ert
isi
ng:₱1,
000,Ut
il
it
ies:₱400,Rent
:₱3,
500
andSalar
ies:
₱1,500.
•Oct
ober31:Thecompany
'sendi
ngi
nvent
oryamount
s₱22,
688

CHARTOFACCOUNTS

ASSETS 100 I
NCOME 400

Cash 101 Sal

es 401

Account
sRecei
vabl
e 102 Sal
esRet
urnandAl
l
owances 402

Mer
chandi
seI
nvent
ory 103 Sal
esDi
scount 403

Suppl
i
es 104 EXPENSES 500

Equi
pment 105 CostofGoodsSol
d 501
 LI
ABI
LITI
ES 200 Pur
chases 502

Account
sPay
abl
e 201 Pur
chaseRet
urnandAl
l
owances 503

Not
esPay
abl
e 202 Pur
chaseDi
scount 504

EQUI
TY 300 Fr
eightI
n 505

AGCCapi
tal 301 Adv
ert
isi
ngExpense 510

AGCDr
awi
ng 302 Sal
ari
esExpense 511

Fr
eightOut 512

RentExpense 513

Ut
il
it
iesExpense 514

I
NCOMESUMMARY 600

JOURNALI
ZING

GENERALJOURNAL Page1to2
Dat
e Descr
ipt
ion PR Debi
t Credi
t
2015
Oct.1 Cash 101 ₱39,
000
AC'sCapit
al 301 ₱39,
000
Torecor
downer
'si
nvest
ment

Oct
.2 Equi
pment 105 10,
000
Cash 101 10,
000
Torecor
dpur
chasedofcomput
erequi
pment

Oct
.2 Purchases 502 15,
900
AccountsPayabl
e 201 15,
900
To r ecor
d purchased merchandi
se on
accountJVLSupplyCo.t
erms2/10n/30

Oct
.3 Suppl
ies 104 700
Cash 101 700
Torecor
dpur
chasedsuppl
i
esoncash

Oct
.4 AccountsReceivabl
e 102 15,
200
Sales 401 15,
200
To record sold mer
chandi
se on account
ter
ms2/ 10,n/30toJMCcompany

Oct
.5 Fr
eightOut 512 200
Cash 101 200
Torecor
dfr
eightonOct
ober4sal
e

Oct
.6 AccountsPay abl
e 201 300
PurchaseReturnsandAll
owances 503 300
Tor ecordreceiv
edcredi
tfrom JVLSuppl
y
Co.formerchandiseretur
ned

Oct
.11 AccountsPayable 201 15,
600
Cash 101 15,
288
PurchaseDiscount 503 312
Torecordthepaymentt
oJVLSuppl
yCo.

Oct
.13 Cash 101 14,
896
 Sal
esDiscount 403 304
AccountsRecei
vable 102 15,
200
To recor
d coll
ecti
on f
rom Oct
ober4 JMC
company

Oct
.14 Pur
chases 502 14,
400
Cash 101 14,
400
Torecor
dpur
chasedmer
chandi
seoncash

Oct
.15 Sal
ari
esexpense 512 1,
500
Cash 101 1,
500
Torecor
dpay
mentofsal
ari
est
oempl
oyees

Oct
.16 Cash 101 12,
000
NotesPayable 202 12,
000
To r
ecord borr
owed moneyf
rom BPIand
i
ssuanceofpromissorynot
e

Oct
.17 Cash 101 500
PurchaseRet
urnsandAl
lowances 503 500
Tor ecor
drecei
vedref
undf r
om Oct
ober14
purchased

Oct
.18 Pur
chases 502 14,
200
AccountsPayable 201 14,
200
To record boughtmerchandi
se f
rom CPL,
FOBShippi
ngPoint,t
erms2/10,n/30

Oct
.20 Fr
eightIn 504 700
Cash 101 700
Torecor
dfr
eightonOct
ober18pur
chase

Oct
.23 Cash 101 16,
400
Sales 401 16,
400
Torecor
dsol
dmer
chandi
seoncash

Oct
.26 Pur
chases 502 12,
300
Cash 101 12,
300
Torecor
dpur
chasedmer
chandi
seoncash

Oct
.27 AccountsPayable 201 9,
000
Cash 101 9,
000
Torecordpar
ti
alpay
mentt
oCPL

Oct
.28 AC'
sDrawing 302 2,
008
Cash 101 2,
008
Torecor
downer
'swi
thdr
awal

Oct
.29 Sal
esRetur
nandAl l
owances 402 900
Cash 101 900
To r
ecordrefund t
o cashcust
omer
sfor
damagedmerchandise

Oct
.30 Account
sRecei
vabl
e 102 13,
700
Sal
es 401 13,
700
Torecordsol
dmer
chandi
seonaccount
n/30toNDT

Oct
.30 Advert
isi
ngexpense 510 1,000
Uti
l
iti
esexpense 515 400
 Rentexpense 514 3,
500
Sal
ari
esexpense 512 1,
500
Cash 101 6,
400
Torecor
dpay
mentt
ovar
iousexpense

POSTI
NG

CASH 101

Dat
e I
tems PR DEBI
T CREDI
T BALANCE

Oct
.1 Owner
'si
nvest
ment GJ1 39,
000 39,
000

2 Pur
chasedofequi
pment GJ1 10,
000 29,
000

3 Pur
chasedofsuppl
i
es GJ1 700 28,
300

5 Fr
eightonOct
ober4sal
e GJ1 200 28,
100

11 Pai
dJVLSuppl
yCo. GJ1 15,
288 12,
812

13 Col
l
ect
ionsf
rom Oct
.4JMCcompany GJ1 14,
896 27,
708

14 Pur
chasedofmer
chandi
se GJ2 14,
400 13,
308

15 Pay
mentf
orsal
ari
es GJ2 1,
500 11,
808

16 Bor
rowedmoneyf
rom BPI GJ2 12,
000 23,
808

17 Recei
vedr
efundf
rom Oct
.14pur
chased GJ2 500 24,
308

20 Fr
eightonOct
ober18pur
chased GJ2 700 23,
608

23 Sol
dmer
chandi
se GJ2 16,
400 40,
008

26 Pur
chasedofmer
chandi
se GJ2 12,
300 27,
708

27 Par
ti
alpay
mentt
oCPL GJ2 9,
000 18,
708

28 Owner
'swi
thdr
awal GJ2 2,
008 16,
700

29 Ref
und t o cash cust
omer
s f
or damaged GJ2 900 15,
800
merchandi
se

30 Pai
dvar
iousexpenses GJ2 6,
400 ₱9,
400

ACCOUNTSRECEI
VABLE 102

Dat
e I
tems PR DEBI
T CREDI
T BALANCE

Oct
.4 Sol
dmer
chandi
seonaccount GJ1 15,
200 15,
200

13 Col
l
ect
ionsf
rom Oct
ober4sal
e GJ1 15,
200 0

30 Sol
dmer
chandi
seonaccount GJ2 13,
700 ₱13,
700

MERCHANDI
SEI
NVENTORY 103

Dat
e I
tem PR DEBI
T CREDI
T BALANCE

Oct
. Endi
ngi
nvent
ory 22,
688 ₱22,
688
31
 SUPPLI
ES 104

Dat
e I
tem PR DEBI
T CREDI
T BALANCE

Oct
.3 Pur
chasedofsuppl
i
es GJ1 700 ₱700

EQUI
PMENT 105

Dat
e I
tem PR DEBI
T CREDI
T BALANCE

Oct
.2 Pur
chasedofequi
pment GJ1 10,
000 ₱10,
000

ACCOUNTSPAYABLE 201

Dat
e I
tems PR DEBI
T CREDI
T BALANCE

Oct
.2 Pur
chasedofmer
chandi
seonaccount GJ1 15,
900 15,
900

6 Recei
vedcr
edi
tfr
om JVLSuppl
yCo. GJ1 300 15,
600

11 Pai
dJVLSuppl
yCo. GJ1 15,
600 0

18 Pur
chasedmer
chandi
sef
rom CPL GJ2 14,
200 14,
200

27 Par
ti
alpay
mentt
oCPL GJ2 9,
000 ₱5,
200

NOTESPAYABLE 202

Dat
e I
tem PR DEBI
T CREDI
T BALANCE

Oct
. Bor
rowed money f
rom BPI and si
gned a GJ2 12,
000 ₱12,
000
16 pr
omissor
ynot
e

AC'
SCAPI
TAL 301

Dat
e I
tems PR DEBI
T CREDI
T BALANCE

Oct
.1 Owner
'si
nvest
ment GJ1 39,
000 39,
000

31 CLOSI
NG GJ3 2,
296 41,
296

31 CLOSI
NG GJ3 2,
008 ₱39,
288

AC'
SDRAWI
NG 302

Dat
e I
tems PR DEBI
T CREDI
T BALANCE

Oct
. Owner
'sWi
thdr
awal GJ2 2,
008 2,
008
28

31 CLOSI
NG GJ3 2,
008 0

SALES 401
Dat
e I
tems PR DEBI
T CREDI
T BALANCE

Oct
.2 Sol
dmer
chandi
seonaccount GJ1 15,
200 15,
200

23 Sol
dmer
chandi
seoncash GJ2 16,
400 31,
600

30 Sol
dmer
chandi
seonaccount GJ2 13,
700 45,
300

31 CLOSI
NG GJ3 45,
300 0

SALESRETURNANDALLOWANCES 402

Dat
e I
tems PR DEBI
T CREDI
T BALANCE

Oct
. Ref
und t o cash cust
omer
s f
or damaged GJ2 900 900
29 merchandi
se

31 CLOSI
NG GJ3 900 0

SALESDI
SCOUNT 403

Dat
e I
tems PR DEBI
T CREDI
T BALANCE

Oct
. Di
scountf
rom col
l
ect
iononOct
.4sal
e GJ1 304 304
13

31 CLOSI
NG GJ3 304 0

PURCHASES 502

Dat
e I
tems PR DEBI
T CREDI
T BALANCE

Oct
.2 Pur
chasedofmer
chandi
seonaccount GJ1 15,
900 15,
900

14 Pur
chasedmer
chandi
seoncash GJ1 14,
400 30,
300

18 Pur
chasedmer
chandi
sef
rom CPL GJ2 14,
200 44,
500

26 Pur
chasedmer
chandi
seoncash GJ2 12,
300 56,
800

31 CLOSI
NG GJ3 56,
800 0

PURCHASERETURNANDALLOWANCES 503

Dat
e I
tems PR DEBI
T CREDI
T BALANCE

Oct
.6 Recei
vedcr
edi
tfr
om JVLSuppl
yCo. GJ1 300 300

17 Recei
vedr
efundf
rom Oct
.14pur
chased GJ2 500 800

31 CLOSI
NG GJ3 800 0

PURCHASEDI
SCOUNT 504

Dat
e I
tems PR DEBI
T CREDI
T BALANCE

Oct
. Di
scountf
rom JVLSuppl
yCo. GJ1 312 312
11
31 CLOSI
NG GJ3 312 0

FREI
GHTI
N 505

Dat
e I
tems PR DEBI
T CREDI
T BALANCE

Oct
. Fr
eightonOct
ober18pur
chase GJ1 700 700
20

31 CLOSI
NG GJ3 700 0

ADVERTI
SINGEXPENSE 510

Dat
e I
tems PR DEBI
T CREDI
T BALANCE

Oct
. Pay
mentf
oradv
ert
isi
ngexpense GJ2 1,
000 1,
000
30

31 CLOSI
NG GJ3 1,
000 0

SALARI
ESEXPENSE 511

Dat
e I
tems PR DEBI
T CREDI
T BALANCE

Oct
. Pay
mentf
orsal
aryexpense GJ2 1,
500 1,
500
15

30 Pay
mentf
orsal
aryexpense GJ2 1,
500 3,
000

31 CLOSI
NG GJ3 3,
000 0

FREI
GHTOUT 512

Dat
e I
tems PR DEBI
T CREDI
T BALANCE

Oct
.5 Fr
eightonOct
ober4sal
e GJ1 200 200

31 CLOSI
NG GJ3 200 0

RENTEXPENSE 513

Dat
e I
tems PR DEBI
T CREDI
T BALANCE

Oct
. Pay
mentf
orr
entexpense GJ2 3,
500 3,
500
30

31 CLOSI
NG GJ3 3,
500 0

UTI
LITI
ESEXPENSE 514

Dat
e I
tems PR DEBI
T CREDI
T BALANCE

Oct
. Pay
mentf
orut
il
it
iesexpense GJ2 400 400
30

31 CLOSI
NG GJ3 400 0
 I
NCOMESUMMARY 600

Dat
e I
tems PR DEBI
T CREDI
T BALANCE

Oct
. CLOSI
NG GJ3 44,
096 44,
096
31

31 CLOSI
NG GJ3 33,
700 10,
396

31 CLOSI
NG GJ3 8100 2,
296

31 CLOSI
NG GJ3 2,
296 0

TRI
ALBALANCE

AGCDISTRI
BUTORS
Tri
alBal
ance
Oct
ober31,2015
DEBIT CREDI
T
Cash ₱9,
400
Account sRecei vabl
e 13,
700
Mer chandiseI nvent
ory -
--
--
--
--
--
-
Suppl i
es 700
Equipment 10,
000
Account sPay able ₱5,
200
NotesPay able 12,
000
AC'sCapi t
al 39,
,
000
AC'sDr awi ng 2,
008
Sales 45,
300
SalesRet urnandAl l
owances 900
SalesDi scount 304
Purchases 56,
800
PurchaseRet urnandAllowances 800
PurchaseDi scount 312
FreightIn 700
Adv ert
isingexpense 1,000
Salari
esexpense 3,000
Freightout 200
Rentexpense 3,500
Util
iti
esexpense 400

TOTALS ₱102,
612 ₱102,
612

FI
NANCI
ALSTATEMENTS

AGCDISTRIBUTORS
CostofGoodsSold
Fort
hemont
hendedOct ober31,
2015

Mer
chandi
seI
nvent
ory
,Oct
ober1

Pur
chases ₱56,
800

Less:
Pur
chaseRet
urnandAl
l
owances ₱800

Pur
chaseDi
scount 312 (
1,112)
NetPur
chases 55,
688

Add:
Frei
ghtI
n 700

CostofGoodsAv
ail
abl
eforSal
e 56,
388

Mer
chandi
seI
nvent
ory
,Oct
ober31 (
22,
688)

COSTOFGOODSSOLD ₱33,
700

AGCDISTRIBUTORS
St
atementofPer
formance
Fort
hemonthendedOctober31,
2015

Sales ₱45,
300
Less:SalesRet urnandAll
owances 900
SalesDi scount 304 (
1204)
NETSALES ₱44,096
CostofGoodsSol d (
33,700)
GROSSPROFI T ₱10,396
EXPENSES
Adv ert
isingexpense 1,000
Salari
esexpense 3,000
FreightOut 200
Rentexpense 3,500
Util
iti
esexpense 400
TOTALEXPENSES (
8100)

NETPROFI
T ₱2,
296

AGCDISTRI
BUTORS
St
atementofOwner
'sEqui
ty
Fort
hemonthendedOctober31,2015

Begi
nni
ngCapi
tal
,Oct
ober1 ₱39,
000

NetI
ncome ₱2,
296

Less:
Drawi
ng (
2,008)

I
ncr
easei
nCapi
tal 288

ENDI
NGCAPI
TAL,
OCTOBER31 ₱39,
288

AGCDISTRI BUTORS
Stat
ementofFinanci
alPositi
on
ForthemonthendedOct ober31,2015
ASSETS LIABI
LITI
ES
Cash ₱9,400 Account sPayabl
e ₱5,200
AccountsRecei
vabl
e 13,
700 Not esPayable 12,000
Merchandi
seInvent
ory 22,
688 Tot alLi
abi
li
ti
es ₱17,200
Suppl
ies 700
Equi
pment 10,
000 OWNER'SEQUI
TY
AC'
sCapital ₱39,
288
TOTALASSETS ₱56,
488 TOTALLIABI
LITI
ESANDEQUI
TY ₱56,
488
 AGCDI STRI
BUTORS
CashFlowStat
ement
Fort hemont hendedOctober31,
2015
Cashflowsf rom Oper atingAct i
v i
ties
Saleofmer chandi se ₱16, 400
Collecti
onf rom cust omer s/company 15,396
Purchasedofsuppl i
es (
700)
Purchasedofmer chandi se (
26, 700)
Refundf orcashcust omer s (
900)
Paymentt osomel iabili
ties (
24, 288)
Paymentf orv ariousexpenses (8,800)
Netcashf l
owgener atedf rom oper at
ingactivi
ti
es ₱(
29,
592)
Cashflowf r
om I nv estingAct i
v i
ties
Purchasedofcomput erequi pment (
10,
000)
Netcashf l
owusedf r
om i nv estingact i
vit
ies (
10,
000)
Cashflowsf rom Fi nanci ngAct i
v i
ties
Owner 'sInv estment 39,000
Borrowedmoneyf rom t hebank 12,000
Owner 'sWi t
hdr awal (
2,008)
Netcashf l
owgener atedf rom f inanci ngactivi
ti
es 48,992
CashandCashEqui valent s 9,
400
Cash,October1, 2015
Cash,October31, 2015 ₱9400

CLOSI
NGENTRI
ES

GENERALJOURNAL Page3
CLOSI
NGENTRI ES
Dat
e Descr
ipt
ion PR DEBI
T CREDI
T

Oct
.31 Sal
es 401 45,
300

I
ncomeSummar
y 600 44,
096

Sal
esRet
urnandAl
l
owances 402 900

Sal
esDi
scount 403 304

To close sal
es,sal es r
etur
n and
al
l
owancesandsal
esdiscount

Oct
.31 Mer
chandi
singI
nvent
ory
,Oct
.31 103 22,
688

Pur
chaseRet
urnandAl
l
owances 503 800

Pur
chaseDi
scount 504 312

I
ncomeSummar
y 600 33,
700

Pur
chases 502 56,
800

Fr
eightI
n 505 700

Tocloseaccount
sincl
udedi
nthe
comput
ati
onofCOGS

Oct
.31 I
ncomeSummar
y 600 8100
 Adv
ert
isi
ngexpense 511 1,
000

Sal
ari
esexpense 512 3,
000

Fr
eightOut 513 200

Rentexpense 514 3,
500

Ut
il
it
iesexpense 515 400

Tocl
osev
ari
ousex
penses

Oct
.31 I
ncomeSummar
y 600 2,
296

AC'
sCapi
tal 301 2,
296

Tocl
osei
ncomesummar
ytocapi
tal

Oct
.31 AC'
sCapi
tal 301 2,
008

AC'
sDr
awi
ng 302 2,
008

Tocl
oseowner
'swi
thdr
awal

POSTCLOSI
NGTRI
ALBALANCE

AGCDISTRIBUTORS
Post
-Cl
osi
ngTrial
Balance
AsofNovember1,2015
DEBI
T CREDI
T

Cash ₱9,
400

Account
sRecei
vabl
e 13,
700

Mer
chandi
singI
nvent
ory 22,
688

Suppl
i
es 700

Equi
pment 10,
000

Account
sPay
abl
e ₱5,
200

Not
esPay
abl
e 12,
000

AC'
sCapi
tal 39,
288

TOTALS ₱56,
488 ₱56,
488
PARTI
I:ADJUSTI
NGENTRI
ES

CASE1: BPI,abanklent₱200,
000toacustomeronDecember1t hatrequi
redthecustomertopayan
annualpercentagerateof12% ont heamountoft heloan.Theloani sduein6mont hsandno
paymentofinterestofpri
nci
pali
stobemadeunt i
lthenoteisdueonMay31.BPIpr eparesmonthl
y
fi
nanci
alstatementsattheendofeachcal
endarmonth.Provi
deananswerf orMarchonly
.

WHATI
STHE ANSWERFORCASE1

Adj
ust
ingEnt
ryDat
e Mar
ch31

Debi
tAccountTi
tl
e I
nter
estExpense

Cr
edi
tAccountTi
tl
e I
nter
estPay
abl
e

Amount 2,
000

CASE2:I nDecember1,Phi l
am Insur
anceCo.r
ecei
ved₱4,800.00from y
ourcompanyfortheannual
i
nsurancepremium coveri
ngt he12mont hperi
odbeginni
ngonDecember1.Phi l
am InsuranceCo.
recor
dedthe₱4,800.00recei
ptasofDecember1withadebittocashandcredi
ttounearnedrevenue.
Phil
am Insur
anceCo.pr eparesmont hl
yfi
nanci
alstat
ementsatt heendofeachcal endarmont h.
Provi
deananswerf orApri
lonly.

WHATI
STHE ANSWERFORCASE2

Adj
ust
ingEnt
ryDat
e Apr
il30

Debi
tAccountTi
tl
e I
nsur
anceI
ncome

Cr
edi
tAccountTi
tl
e Unear
nedI
nsur
anceI
ncome

Amount 400

CASE3:OnDecember1,TREECompanybeganoper ati
ons.OnDecember4pur chased₱2, 000.
00of
suppli
esandr ecor
dedthetr
ansacti
onsuppliesasdebi tandacr edittoaccountspay abl
e.TREE
Companypr epar
esmonthl
yfi
nanci
alstat
ement sattheendofeachcal endarmonth.Attheendofthe
day,December31,TREECompanyestimatedthat₱1, 000.00oft
hesuppliesweresti
llonhandinthe
supplyroom.Thefoll
owi
ngquesti
onspertai
nt otheadj usti
ngentr
ythatshouldbeent er
edbyTREE
Company .

WHATI
STHE ANSWERFORCASE3

Adj
ust
ingEnt
ryDat
e December31

Debi
tAccountTi
tl
e Suppl
i
esexpense

Cr
edi
tAccountTi
tl
e Suppl
i
es

Amount 1,
000