The following are the transactions of LMV Merchandising for the month of June 2020.

The company
uses periodic inventory system. Prepare complete accounting cycle.

June 1 The owner invested P 90,000 cash to start the business.

2 Bought equipment for P 8,000 cash.
2 Bought merchandise on account to SBT Corp., P18,000 terms 2/10, n/30.
3 Bought supplies on cash for P 2,000.
4 Sold merchandise on account P 13, 000, terms 2/10, n/30.
5 Paid P500 freight on June 4 sale.
6 Received credit to SBT Corp. for merchandise returned, P500.
10 Paid SBT Corp.
11 Collected from June 4 customers.
12 Bought merchandise on cash basis, P14,000.
13 Salaries paid P1,600.
14 Borrowed money from DV Lending Co. and signed a promissory note, P23,000
17 Received refund from a supplier on a cash purchase on June 12, P1,000.
20 Bought merchandise on account, P12,000, terms 2/10, n/30.
21 Paid freight on June 20 purchase, P700.
22 Sold merchandise for P17,000.
25 Bought merchandise for cash, P15,000.
26 Paid the transaction on June 20
27 The owner got cash from the business, P3,020.
28 Made refund to cash customers for defective merchandise returned, P500.
29 Sold merchandise on account, P17,000.
30 Paid Salaries, P2,000; Utilities, P500; Rent, P3000 and Advertising P1,000.
30 The merchandise inventory end was P 22,000.
LMV MERCHANDISING CHART OF ACCOUNTS LMV MERCHANDISING CHART OF ACCOUNTS

*Use in journalizing and posting to the ledger. *Use for Financial Reports.

100 ASSETS 100 ASSETS

110 Cash 110 Cash and Cash Equivalents
120 Accounts Receivable 120 Receivable
130 Merchandise inventory 130 Inventories
140 Supplies 140 Prepaid EXPENSES
150 Equipment 150 Property, Plant and Equipment
200 LIABILITIES 200 LIABILITIES
210 Accounts Payable 210 Accounts Payable
220 Notes Payable 220 Notes Payable
300 Equity 300 Equity
310 LMV, Capital 310 ARS, Capital
320 LMV, Drawing 320 ARS, Drawing
400 INCOME 400 INCOME
410 Sales 410 Sales
420 Sales Discounts 420 Sales Discounts
430 Sales Return and 430 Sales Return and Allowance
Allowance
500 EXPENSES 500 EXPENSES
510 Purchases 510 Purchases
520 Purchase Discounts 520 Purchase Discounts
530 Purchase Returns and 530 Purchase Returns and Allowances
Allowances
540 Transportation In 540 Transportation In
550 Transportation Out 550 Transportation Out
560 Rent Expense 560 Rent Expense
570 Salaries Expense 570 Salaries Expense
580 Utilities Expense 580 Utilities Expense
590 Advertising Expense 590 Advertising Expense
601 Income Summary 601 Income Summary