GENERAL JOURNAL GENERAL JOURNAL

PAGE NUMBER GJ-1 PAGE NUMBER GJ-2

With Explanations With Explanations
CURRENT JOURNAL ENTRIES CURRENT JOURNAL ENTRIES
Date Description Date Description
REF DEBIT CREDIT REF DEBIT CREDIT
Aug. 1 Cash 101 390,000.00 Aug. 15 Salaries Expense 508 8,000.00
Angelina Cruz, Capital 301 390,000.00 Cash 101 8,000.00
# cash investment # paid salaries

2 Supplies 120 15,000.00 16 Cash 101 300,000.00

Cash 101 15,000.00 Notes Payable 202 300,000.00
# purchase of office supplies # bank loan

2 Merchandise Inventory 115 160,000.00 17 Cash 101 1,500.00

Accounts Payable 201 160,000.00 Merchandise Inventory 115 1,500.00
# purchase of merchandise on account #refund from suppliers

5 Equipment 140 100,000.00 18 Merchandise Inventory 115 14,500.00

Cash 101 100,000.00 Accounts Payable 201 14,500.00
# acquisition of equipment # purchase of merchandise on account

6 Accounts Receivable 104 20,500.00 19 Merchandise Inventory 115 1,000.00

Cost of Goods Sold 501 10,500.00 Cash 101 1,000.00
Sale 401 20,500.00 # paid freight on purchase
Merchandise Inventory 115 10,500.00
# sold merchandise on account 23 Cash 101 160,000.00
Cost of Goods Sold 501 80,000.00
8 Freight Out 505 1,050.00 Sale 401 160,000.00
Cash 101 1,050.00 Merchandise Inventory 115 80,000.00
# freight on sale # cash sales

9 Accounts Payable 201 3,500.00 26 Merchandise Inventory 115 22,000.00

Merchandise Inventory 115 3,500.00 Cash 101 22,000.00
# purchase return # purchase of merchandise

10 Accounts Payable 201 156,500.00 27 Accounts Payable 201 9,500.00

Cash 101 153,370.00 Cash 101 9,500.00
Merchandise Inventory 115 3,130.00 # partial payment of account
# payment to Dagupan Supply
27 Angelina Cruz, Drawing 302 50,000.00
13 Merchandise Inventory 115 30,500.00 Cash 101 50,000.00
Cash 101 30,500.00 # cash drawing
# purchase of merchandise
28 Sales Returns and Allowances 403 2,000.00
13 Cash 101 20,090.00 Cash 101 2,000.00
Sales Discount 405 410.00 # sales refunds
Accounts Receivable 104 20,500.00
# collection of receivables
GENERAL JOURNAL GENERAL LEDGER
PAGE NUMBER GJ-3 PAGE NUMBER GL-1
With Explanations Write “0” if balance is “0”
CURRENT JOURNAL ENTRIES Account 101 CASH
Date Description BALANCES
REF DEBIT CREDIT DATE ITEMS POST DEBIT CREDIT
DEBIT CREDIT
Aug. 28 Accounts Receivable 104 50,000.00 Aug. 1 GJ-1 390,000 390,000
Cost of Goods Sold 501 30,000.00 2 GJ-1 15,000 375,000
Sale 401 50,000.00 5 GJ-1 100,000 275,000
Merchandise Inventory 115 30,000.00 8 GJ-1 1,050 273,950
# sold merchandise on account 10 GJ-1 153,370 120,580
13 GJ-1 30,500 90,080
30 Utilities Expense 506 2,500.00 13 GJ-1 20,090 110,170
Rent Expense 507 8,000.00 15 GJ-2 8,000 102,170
Salaries Expense 508 8,000.00 16 GJ-2 300,000 402,170
Advertising Expense 509 12,000.00 17 GJ-2 1,500 403,670
Cash 101 30,500.00 19 GJ-2 1,000 402,670
# payment of expenses 23 GJ-2 160,000 562,670
26 GJ-2 22,000 540,670
27 GJ-2 9,500 531,170
27 GJ-2 50,000 481,170
28 GJ-2 2,000 479,170
30 GJ-3 30,000 448,670

Account 104 ACCOUNTS RECEIVABLE

BALANCES
DATE ITEMS POST DEBIT CREDIT
DEBIT CREDIT
Aug. 6 GJ-1 20,500 20,500
13 GJ-1 20,500 0
28 GJ-3 50,000 50,000

Account 115 MERCHANDISE INVENTORY

BALANCES
DATE ITEMS POST DEBIT CREDIT
DEBIT CREDIT
Aug. 2 GJ-1 160,000 160,000
6 GJ-1 10,500 149,500
9 GJ-1 3,500 146,000
10 GJ-1 3,130 142,870
13 GJ-1 30,500 173,370
17 GJ-2 1,500 171,870
18 GJ-2 14,500 186,370
19 GJ-2 1,000 187,370
23 GJ-2 80,000 107,370
26 GJ-2 22,000 129,370
28 GJ-3 30,000 99.370
GENERAL LEDGER GENERAL LEDGER
PAGE NUMBER GL-2 PAGE NUMBER GL-3
Write “0” if balance is “0” Write “0” if balance is “0”
Account 120 SUPPLIES Account 401 SALES
BALANCES BALANCES
DATE ITEMS POST DEBIT CREDIT DATE ITEMS POST DEBIT CREDIT
DEBIT CREDIT DEBIT CREDIT
Aug. 2 GJ-1 15,000 15,000 Aug. 6 GJ-1 20,500 20,500
23 GJ-1 160,000 180,500
28 GJ-2 50,000 230,500
30 Closing Entry 230,500 0
Account 140 EQUIPMENT
BALANCES Account 403 SALES RETURNS AND ALLOWANCES
DATE ITEMS POST DEBIT CREDIT
DEBIT CREDIT BALANCES
DATE ITEMS POST DEBIT CREDIT
Aug. 5 GJ-1 100,000 100,000 DEBIT CREDIT
Aug. 28 GJ-2 2,000 2,000
30 Closing Entry 2,000 0

Account 201 ACCOUNTS PAYABLE

BALANCES Account 405 SALES DISCOUNTS
DATE ITEMS POST DEBIT CREDIT
DEBIT CREDIT BALANCES
DATE ITEMS POST DEBIT CREDIT
Aug. 2 GJ-1 16,000 160,000 DEBIT CREDIT
9 GJ-1 3,500 156,500 Aug. 13 GJ-1 410 410
10 GJ-1 156,500 0 30 Closing Entry 410 0
18 GJ-2 14,500 14,500
27 GJ-2 9,500 5,000
Account 501 COST OF GOODS SOLD
BALANCES
DATE ITEMS POST DEBIT CREDIT
DEBIT CREDIT
Account 202 NOTES PAYABLE Aug. 6 GJ-1 10,500 10,500
BALANCES 23 GJ-2 80,000 90,500
DATE ITEMS POST DEBIT CREDIT
DEBIT CREDIT 28 GJ-3 30,000 120,500
Aug. 16 GJ-2 300,000 300,000 30 Closing Entry 120,500 0

Account 505 FREIGHT OUT

BALANCES
DATE ITEMS POST DEBIT CREDIT
Account 301 CRUZ, CAPITAL DEBIT CREDIT
BALANCES Aug. 8 GJ-1 1,050 1,050
DATE ITEMS POST DEBIT CREDIT
DEBIT CREDIT 30 Closing Entry 1,050 0
Aug. 1 GJ-1 390,000
68,040 458,040
50,000 408,040 Account 506 UTILITIES EXPENSE
DATE ITEMS POST DEBIT CREDIT BALANCES
Account 302 CRUZ, DRAWING DEBIT CREDIT
BALANCES Aug. 30 GJ-3 2,500 2,500
DATE ITEMS POST DEBIT CREDIT
DEBIT CREDIT Closing Entry 2,500 0
Aug. 27 GJ-3 50,000 50,000
30 Closing Entry 50,000 0
GENERAL LEDGER
PAGE NUMBER GL-4
Write “0” if balance is “0”
Account 507 RENT EXPENSE
BALANCES PRELIMINARY TRIAL BALANCE
DATE ITEMS POST DEBIT CREDIT
DEBIT CREDIT
Aug. 30 GJ-3 8,000 8,000
30 8,000 0
ACCOUNT TITLES DR CR
101 CASH 448,670
Account 508 SALARIES EXPENSE
BALANCES 104 ACCOUNTS RECEIVABLE 50,000
DATE ITEMS POST DEBIT CREDIT
DEBIT CREDIT
Aug. 30 GJ-3 8,000 8,000
115 MERCHANDISE INVENTORY 99,370
30 8,000 0 120 SUPPLIES 15,000
140 EQUIPMENT 100,000
Account 509 ADVERTISING EXPENSE 201 ACCOUNTS PAYABLE 5,000
BALANCES
DATE ITEMS POST DEBIT CREDIT
DEBIT CREDIT 202 NOTES PAYABLE 300,000
Aug. 30 12,000 12,000 301 CRUZ, CAPITAL 390,000
30 12,000 0
302 CRUZ, DRAWING 50,000
401 SALES 230,500
Account 605 INCOME SUMMARY
BALANCES 403 SALES RETURNS AND ALLOWANCES 2,000
DATE ITEMS POST DEBIT CREDIT
DEBIT CREDIT 405 SALES DISCOUNTS 410
Aug. 30 GJ-4 228,090 228,090
30 GJ-4 160,050 68,040 501 COST OF GOODS SOLD 120,500
30 GJ-4 68,040 0
505 FREIGHT OUT 1,050
506 UTILITIES EXPENSE 2,500
507 RENT EXPENSE 8,000
508 SALARIES EXPENSE 16,000
509 ADVERTISING EXPENSE 12,000
TOTALS 925,500 925,500
 STATEMENT OF FINANCIAL POSITION
STATEMENT OF PROFIT AND LOSS
(IN PESOS)
(IN PESOS) ASSETS
Sales (230,500) CURRENT ASSETS
Less: Sales Returns & Allowances 2,000 Cash & Cash Equivalent 448,670
Sales Discounts 410 Receivables 50,000
Net Sales 228,090 Inventories 99,370
Supplies 15,000
Less: Cost of Goods Sold 120,500
Gross Profit 107,590 NON-CURRENT ASSETS
Less: Freight Out 1,050 Property Plant & Equipment 100,000
Utilities Expense 2,500
Rent Expense 8,000 TOTAL ASSETS ₱ 713,040
Salaries Expense 16,000
Advertising Expense 12,000 39,550 LIABILITIES AND CAPITAL
CURRENT LIABILITIES
Net Profit/Income ₱ 68,040
Accounts Payable 5,000
Notes Payable 300,000

STATEMENT OF CHANGES IN EQUITY OWNER’S EQUITY

Cruz, Capital
(IN PESOS) 408,040
Cruz, Capital, beginning ₱ 390,000
Add: Net Income 68,040 TOTAL LIABILITIES AND CAPITAL ₱ 713,040
Total: ₱ 458,040
Less: Cruz, Drawings 50,000
Cruz, Capital, end ₱ 408,040
 GENERAL JOURNAL
PAGE NUMBER GJ-4
STATEMENT OF CASH FLOWS With Explanations
CLOSING JOURNAL ENTRIES
Date Description
REF DEBIT CREDIT
(IN PESOS) Aug. 30 Sales 401 230,500
Income Summary 605 228,090
Cash flow used in Operating Activities Sales Returns and Allowances 403 2,000
Collection 20,090 Sales Discounts 405 410
Refunds 1,500 To close income accounts
Cash sales 160,000
Purchases (15,000)
30 Income Summary 605 160,050
Freight on sales (1,050)
Cost of Goods Sold 501 120,050
Payment (153,370)
Advertising Expense 509 12,000
Purchases (30,500)
Freight Out 505 1,050
Paid salaries (8,000)
Freight on sales (1,000) Rent Expense 507 8,000

Purchases (22,000) Salaries Expense 508 16,000

Partial payment (9,500) Utilities Expense 506 2,500
Sales refunds (2,000) To close expenses accounts
Payment of expenses (30,500) 30 A. Cruz, Capital 301 68,040
(91,330) Income Summary 605 68,040
Cash flow used in Investing Activities To close the profit to capital account
Acquisition of equipment (100,000)
30 A. Cruz, Capital 301 50,000
Cash flow used in Financing Activities A. Cruz, Drawings 302 50,000
Cash investment 390,000
To close the drawing to capital account
Bank loan 300,000
Cash drawing (50,000)
INCREASE IN CASH AND CASH EQUIVALENTS 448,670
ADD: CASH AND CASH EQUIVALENTS, BEG ----
CASH AND CASH EQUIVALENTS, August 31 ₱ 448,670
 POST-CLOSING TRIAL BALANCE

(in pesos)
DR CR
CASH ₱ 448,670
ACCOUNTS RECEIVABLE 50,000
MERCHANDISE INVENTORY 99,370
SUPPLIES 15,000
EQUIPMENT 100,000
ACCOUNTS PAYABLE ₱ 5,000
NOTES PAYABLE 300,000
A. CRUZ, CAPITAL 408,040

TOTAL ₱ 713,040 ₱ 713,040