PROBLEM SOLVING:

PERPETUAL INVENTORY METHOD

1. Note: Use the following CHART OF ACCOUNTS for Journalizing, Posting, Trial
Balance, Closing Journal Entries, and Post-Closing Trial Balance

Code Account Title Code Account Title

10 Cash 60 Sales
11 Account Receivable 61 Sales Discount
12 Notes Receivable 62 Sales Returns
13 Merchandise Inventory 70 Cost of Goods Sold
20 Office Equipment 71 Freight Out
21 Furniture and Fixtures 72 Salaries
30 Accounts Payable 73 Utilities Expense
50 Matutina, Capital 74 Advertising
51 Matutina, Drawing 75 Office Supplies Expense
52 Income Summary

Use the following CHART OF ACCOUNTS for Financial Statement Separation

Code Account Title Code Account Title

10 Cash and Cash Equivalents 60 Sales
11 Accounts Receivable 61 Sales Discount
12 Notes Receivable 62 Sales Returns
13 Merchandise Inventory 70 Cost of Goods Sold
20 Property, Plant and Equipment 71 Freight Out
30 Accounts Payable 72 Salaries
50 Matutina, Capital 73 Utilities Expense
51 Matutina, Drawing 74 Advertising
52 Income Summary 75 Office Supplies Expense
 Miss Matutina owned a business named MATUTINA’S GENERAL MERCHANDISE and had
the following transactions for the month of February 2018.

February 2 Matutina invested P500, 000 cash in the business.

February 4 Purchase goods worth P455, 700 on account from MAHARLIKA.

Terms: 2/10, n/30.

February 7 Purchased P105, 800 worth of goods from MATINO on account,

with terms 3/15, 2/25, n/30.

February 10 Sold goods to MAKABAYAN Management worth P550, 400 in cash.

The cost of the goods sold is P180, 900.

February 12 The company returned P20, 000 worth of goods to MAHARLIKA.

February 14 MAKABAYAN returned P165, 120 worth of goods. Cost of the

returned merchandise is P54, 270.

February 18 Paid the following expenses: Salaries – P27, 900, Advertising – P93, 780,
and Delivery – P85, 400.

February 19 Sold goods to MATIKAS Inc. P690, 800 on account. The cost of goods is
P289, 590.

February 21 Paid MATINO on account.

February 24 Collected 30% of the account of MATIKAS Inc.

February 25 Withdrawal made by the company, P55, 890.

February 27 Purchased gods worth P190, 800 in cash and sold goods to a customer in
cash, P450, 700.

2. Prepare the Adjusting Entries for each of the following: (Not related to No. 1)

1. A premium of P12, 000 for one-year insurance policy was paid on

December 1 and debited to Prepaid Insurance, compute for the
Adjusting entry at December 31.

2. On January 1 of the current year, Yakabud purchased office equipment

which cost P160, 000 with an expected life of 4 years and no salvage
value. What is the accumulated depreciation on June 30, 2018?
JOURNALIZATION PAGE

DATE ACCOUNT TITLES & EXPLANATION F DEBIT CREDIT

JOURNALIZATION PAGE

DATE ACCOUNT TITLES & EXPLANATION F DEBIT CREDIT

POSTING

GENERAL LEDGER

Account: CASH Account No:

Debit Credit
Date Particulars F Debit Credit
Balance Balance

Account: ACCOUNT RECEIVABLE Account No:

Debit Credit
Date Particulars F Debit Credit
Balance Balance

Account: MERCHANDISE INVENTORY Account No:

Debit Credit
Date Particulars F Debit Credit
Balance Balance
Account: ACCOUNTS PAYABLE Account No:

Debit Credit
Date Particulars F Debit Credit
Balance Balance

Account: MATUTINA, CAPITAL Account No:

Debit Credit
Date Particulars F Debit Credit
Balance Balance

Account: MATUTINA, DRAWING Account No:

Debit Credit
Date Particulars F Debit Credit
Balance Balance

Account: INCOME SUMMARY Account No:

Debit Credit
Date Particulars F Debit Credit
Balance Balance
Account: SALES Account No:

Debit Credit
Date Particulars F Debit Credit
Balance Balance

Account: SALES DISCOUNT Account No:

Debit Credit
Date Particulars F Debit Credit
Balance Balance

Account: SALES RETURNS AND ALLOWANCES Account No:

Debit Credit
Date Particulars F Debit Credit
Balance Balance

Account: COST OF GOODS SOLD Account No:

Debit Credit
Date Particulars F Debit Credit
Balance Balance
Account: FREIGHT OUT Account No:

Debit Credit
Date Particulars F Debit Credit
Balance Balance

Account: SALARIES Account No:

Debit Credit
Date Particulars F Debit Credit
Balance Balance

Account: ADVERTISNG Account No:

Debit Credit
Date Particulars F Debit Credit
Balance Balance
TRIAL BALANCE

MATUTINA GENERAL MERCHANDISE

TRIAL BALANCE
FEBRUARY 28, 2018

ACCOUNT
ACCOUNT TITLE DEBIT CREDIT
NUMBER
FINANCIAL STATEMENTS:

MATUTINA GENERAL MERCHANDISE

STATEMENT OF FINANCIAL PERFORMANCE
FOR THE MONTH ENDED FEBRUARY 28, 2018
 MATUTINA GENERAL MERCHANDISE
STATEMENT OF FINANCIAL POSITION
FOR THE MONTH ENDED FEBRUARY 28, 2018
 MATUTINA GENERAL MERCHANDISE
STATEMENT OF OWNER’S EQUITY
FOR THE MONTH ENDED FEBRUARY 28, 2018
 MATUTINA GENERAL MERCHANDISE
STATEMENT OF CASH FLOWS
FOR THE MONTH ENDED FEBRUARY 28, 2018
 MATUTINA GENERAL MERCHANDISE
CLOSING JOURNAL ENTRIES
FEBRUARY 28, 2018

DATE ACCOUNT TITLES & EXPLANATION F DEBIT CREDIT

 MATUTINA GENERAL MERCHANDISE
CLOSING TRIAL BALANCE
FEBRUARY 28, 2018

ACCOUNT
ACCOUNT TITLE DEBIT CREDIT
NUMBER
PART II:

1 2 3

ADJUSTING ENTRY
DATE

DEBIT

CREDIT

AMOUNT