A. B.

Sales 1,400,000 Date Received

Beg. Inventory - 20XX Qty.
Purchases 840,000 15-Feb 2,000
COGAFS 840,000 1-Apr
Ending Inventory 180,000 30-Jun
COGS 660,000 15-Jul 3,000
Gross Profit 740,000
15-Aug
 Received Issued Balance
Unit Cost Total Cost Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost
150 300,000 2,000 150 300,000
1,200 150 180,000 800 150 120,000
500 150 75,000 300 150 45,000
180 540,000 300 150 45,000
3,000 180 540,000
300 150 45,000 1,000 180 180,000
2,000 180 360,000

0
A.
Qty Unit Cost Gold Silver
Purchases 20 1,900 38,000
30 1,650 49,500
LESS:
Ending Inventory 5 1,900 (9,500)
12 1,650 (19,800)
Cost of Sales 28,500 29,700

B.
Qty Unit Cost Gold Silver
Sales 15 3,000 45000
18 2,500 45000
LESS:
Cost of Sales 15 1,900 (28,500)
18 1,650 (29,700)
Gross Profit 16,500 15,300
REFER TO EXERCISE NUMBER 2
A.
Qty Unit Cost Gold Silver
Beg. Inventory 5 1,900 9,500
12 1,650 19,800
ADD:
Purchases 20 1,950 39,000
25 1,750 43,750
Total Available for Sale 48,500 63,550
LESS:
Ending Inventory 10 1,950 (19,500)
15 1,750 (26,250)
COGS 29,000 37,300
B.
Qty Unit Cost Gold Silver
Sales 15 3,000 45,000
22 2,500 55,000
LESS:
COGS (29,000) (37,300)
Gross Profit 16,000 17,700
Cases 1 2 3 4
Beg. Inventory - 120,000 50,000 10,000

Purchases 300000 300000 300000 300000

Freight In 25,000 - 40,000 15,000
Returns and Allowances (5,000) (55,000) - (21,000)
Discounts - (15,000) - -
Net Purchases 320,000 230,000 340,000 294,000
Cost of Goods Available for Sale 320,000 350,000 390,000 304,000
Ending Inventory - - (75,000) (75,500)
Cost of Sale 320,000 350,000 315,000 228,500
5
-

300000
25,000
(11,000)
(18,550)
295,450
295,450
(85,000)
210,450
 Sales Cost of Gross Operating
Case Sales Profit Expenses

A 440,000 225,000 215,000 140,000

B 260,000 185,000 75,000 105,000
C 870,000 640,000 230,000 320,000
D 1,250,000 825,000 425,000 275,000
E 1,300,500 721,250 579,250 675,000
 Net
Profit/Loss

75,000
(30,000)
(90,000)
150,000
(95,750)
A.

Sales 253,000
Sales Returns and Allowances 8,000
Net Sales 245,000

Merchendise Inventory, Jan. 1 134,000

Purchases 126,000
Purchases Returns and Allowances 4,000
Purchases Discounts 3,000
Net Purchases 119,000
Freight In 8,500 127,500
Cost of Goods Available for Sale 261,500
Merchendise Inventory, Dec.31 214,000
Cost of Goods Sold 47,500
Gross Profit 197,500
B.
(197,500/245,000)x100 = 80.61 %
 PERPETUAL METHOD
DATE DATE
Particulars Debit Credit
15-Feb Inventory 300,000 15-Feb
Cash 300,000

1-Apr Accounts Receivable 420,000 1-Apr

Sales 420,000

Cost of Sales 180,000

Inventory 180,000

1-May Cash 420,000 1-May

Accounts Receivable 420,000

30-Jun Accounts Receivable 175,000 30-Jun

Sales 175,000

Cost of Sales 75,000

Inventory 75,000

15-Jul Inventory 540,000 15-Jul

Cash 540,000

30-Jul Cash 175,000 30-Jul

Accounts Receivable 175,000

15-Aug Accounts Receivable 805,000 15-Aug

Sales 805,000

Cost of Sales 405,000

Inventory 405,000

15-Sep Cash 805,000 15-Sep

Accounts Receivable 805,000
 PERIODIC METHOD
Particulars Debit Credit
Purchases 300,000
Cash 300,000

Accounts Receivable 420,000

Sales 420,000

Cash 420,000
Accounts Receivable 420,000

Accounts Receivable 175,000

Sales 175,000

Purchases 540,000
Cash 540,000

Cash 175,000
Accounts Receivable 175,000

Accounts Receivable 805,000

Sales 805,000

Cash 805,000
Accounts Receivable 805,000

Inventory 180,000
Purchases 180,000
A. B.
September Particulars Debit Credit
6 Purchases 16000 Sales
Cash 16000 Beg. Inventory
10 Purchases 12,500 Purchases
Accounts Payable 12,500 COGAFS
12 Cash 17,500 Ending Inventory
Sales 17,500 COGS
24 Accounts Receivable 20,000 Gross Profit
Sales 20,000
30 Inventory 23,000
Purchases 23,000
37,500
9,600
28,500
38,100
23,000
15,100
22,400
A.
September Particulars Debit Credit
6 Inventory 16000 Sales
Cash 16000 Beg. Inventory
10 Inventory 12,500 Purchases
Accounts Payable 12,500 COGAFS
12 Cash 17,500 Ending Inventory
Sales 17,500 COGS
Cost of Sales 6,000 Gross Profit
Inventory 6,000
24 Accounts Receivable 20,000
Sales 20,000
Cost of Sales 9,100
Inventory 9,100
30 Inventory 23,000
 B. Moving Average
September Particulars Debit Credit
37,500 6 Inventory 16000
Beg. Inventory 9,600 Cash 16000
28,500 10 Inventory 12,500
38,100 Accounts Payable 12,500
Ending Inventory 23,000 12 Cash 17,500
15,100 Sales 17,500
Gross Profit 22,400 Cost of Sales 6,650
Inventory 6,650
24 Accounts Receivable 20,000
Sales 20,000
Cost of Sales 9,550
Inventory 9,550
30 Inventory 21,900
Sales 37,500
Beg. Inventory 9,600
Purchases 28,500
COGAFS 38,100
Ending Inventory 21,900
COGS 16,200
Gross Profit 21,300
 Bernie's Potteries

Feb-22 Particulars Debit Credit

4 Cash 7,350
Accounts Receivable 7,350
Sales 14700

Freight Out 450

Cash 450
14 Cash 7,350
Accounts Receivable 7,350
 Vermont Towers

Feb-22 Particulars Debit Credit

4 Purchase 14,700
Cash 7,350
Accounts Payable 7,350
14 Accounts Payable 7,350
Cash 7,350
June Particulars Debit Credit
1 Cash 27500
Sales 27500
3 Cash 9,000
Accounts Receivable 10000
Sales 19000
5 Cash 11,700
Freight Out 2,300

Sales 14000
7 Sales Return and Allowances 1250 Rolling Store
Cash 1250 2/5, 1/10, n/30
13 Cash 5000
Accounts Receivable 5000
15 Accounts Receivable 8,500
Freight Out 1,500
Cash 1,500
Sales 8,500 Brenda
18 Cash 2000 1/5, 1/10, n/30
Accounts Receivable 4000
Sales 6000
25 Cash 5000
Accounts Receivable 5000
27 Cash 5000
Accounts Receivable 5000
 Accounts Receivable
10,000 5,000
5,000
8,500 5,000
4000
7,500

Rolling Store
2/5, 1/10, n/30
10,000 5,000
0 5,000 S.V.P.H
2/10, n/30
4,000
4000

1/5, 1/10, n/30

8,500 5,000
3,500
August Particulars Debit Credit
1 Cash 550,000
Mechendise 100000
Capital,Feria 650000
Cash in Bank 300000
Cash 300000
3 Purchases 132500
Freight In 2,500
Cash in Bank 135000
10 Accounts Receivable 94,000
Cash 2000
Sales 92000
12 Accounts Receivable 72,000
Sales 72,000
16 Sales Return and Allowances 2,900
Account Receivable 2,900
20 Salary Expense 45,500
Cash in Bank 45,500
22 Cash 91100
Account Receivable 91100
24 Cash 8000
Purchase Return and Allowances 8000
26 Purchases 105,000
Freight In 3000
Account Payable 108,000
27 Account Payable 3000
Cash 3000
28 Cash 70,560
Sales Discount 1440
Account Receivable 72,000
Account Payable 55,000
Cash 55,000
29 Cash 40,000
Cash in Bank 14000
Sales 54,000
Cash in Bank 40000
Cash 40000
30 Store Rent Expense 15,000
Cash in Bank 15,000
Bank Fees 4,755
Cash in Bank 4,755
31 Salary Expense 45,500
SS Premiums Payable 3555
Phil Health Premiums Payable 1,820
 Pag ibig Premiums Payable 400
Cash in Bank 39,725
Utility Expense 6000
Cash 6000
1,801,755 1,801,755
 Your Hardware
STATEMENT OF COMPREHENSIVE INCOME
For the Period Ended August 1, 2021

Net Sales (Note 1) 213660

Cost of Sales (Note 2) 140000
Gross Income 73660
Distribution Expenses (Note 3) 71500
Administrative Expenses (Note 4) 51665
Net Income -49505
NOTES

1 NET SALES
Sales 218000
Sales Discount 1440
Sales Returns 2900 4340
Net Sales 213660

2 COST OF SALES
Beg. Inventory 100000
Purchases 237500
Freight In 5500
Purchase Returns 8000 235000
COGAFS 335000
Ending Inventory 195000
Cost of Sales 140000

3 DISTRIBUTION EXPENSES
Store Utilities Expense 4500
Sale Salaries Expense 52000
Store Rent Expense 15000
Distribution Expenses 71500

4 ADMINISTRATIVE EXPENSES
Office Salaries Expense 39000
Office Utilities Expense 1500
Bank Fees 4755
Tax Expense 6410
Administrative Expenses 51665
 Your Hardware
STATEMENT OF COMPREHENSIVE INCOME
For the Period Ended August 1, 2021

Net Sales (Note 1) 691370

Cost of Sales (Note 2) 346530
Gross Income 344840
Distribution Expenses (Note 3) 175760
Administrative Expenses (Note 4) 43800
Operating Income 125280
Interest Expense 5400
Net Income 119880

Your Hardware
STATEMENT OF CHANGES IN OWNERS EQUITY
For the Period Ended August 1, 2021

Beg. Capital 64620

Drawings 49000
Additional Investment 60000
Net Income 119880
Ending Capital 195500

Your Hardware
STATEMENT OF CHANGES IN OWNERS EQUITY
As At August 1, 2021

ASSETS
Current Assets
Cash 57890
Account Receivables 43750
Inventory 81520
Total Current Assets 183160
Non Current Assets
Equipment, net (Note 5) 78230
Total Non Current Assets 78230
Total Assets 261390

LIABILITIES AND EQUITY

Current Liabilities
Trade and Other Payables 20890
Total Current Liabilities 20890
 Non Current Liabilities
Notes Payable 45,000
Total Non Current Liabilities 45,000
Total Liabilities 65,890
Equity 195500
Total Liabilities and Equity 261,390
NOTES

1 NET SALES
Sales 719800
Sales Discount 10400
Sales Returns 18030 28430
Net Sales 691370

2 COST OF SALES
Beg. Inventory 69350
Purchases 364000
Purchase Returns 3400
Purchase Dicount 1900 358700
COGAFS 428050
Ending Inventory 81520
Cost of Sales 346530

3 DISTRIBUTION EXPENSES
Store Utilities Expense 30600
Sale Salaries Expense 19000
Freight Out 22000
Advertising Expense 40000
Sales Commission 40000
Depreciation Expense-Store equip 15000
Store Supplies Used 9160
Distribution Expenses 175760

4 ADMINISTRATIVE EXPENSES
Office Salaries Expense 20000
Bad Debt 15000
Depreciation Expense-Office Equip 6500
Office Supplies Used 2300
Administrative Expenses 43800

5 EQUIPMENT, net
Store Equipment 68000
Acc. Depreciation-Store Equip. 22450 45550
Office Equipment 48680
Acc. Depreciation-Office Equip. 16000 32680
Equipment,net 78230
6 TRADE AND OTHER PAYABLES
Accounts Payable 16950
Interest Payable 1100
VAT Payable 2840
Trade and other Payables 20890
Sales
Sales Returns and Allowances 4,500 6,200 2,250 35,000 5,500
Sales Discount 3,200 4,600 5,500 1,950 2,000
Net Sales

Beginning Inventory 35,000 19,000 17,500 13,000 15,090

Purchases 47,500 58,155 72,000 85,000 73,000
Purchases Returns and Allowances 12,750 2,480 1,750 14,000 2,200
Purchase Discount 2,750 2,175 0 6,750 1,500
Net Purchase
Freight In 2,000 5,000 2,250 1,250 1,110
Goods Available For Sale 69,000 77,500 90,000 78,500 85,500
Ending Inventory 19,000 23,500 47,000 18,500 17,500
Cost of Goods Sold 50,000 54,000 43,000 60,000 68,000
Freight Out 3,000 12,000 5,000 3,800 1,500
May Particulars Debit Credit
1 Cash 50,000
Cash in Bank 200,000
Merchendise 50,000
Capital, Katy 300,000
2 Rent Expense 18,000
Cash in Bank 18,000
3 Purchases 12,000
Input Tax 1440
Account Payable-Subic 13440
5 Store Supplies 1600
Input Tax 192
Account Payable-Goodwill Bookstore 1792
8 Account Receivable-Rustan 11760
Output Tax 1260
Sales 10500
12 Account Payable-Subic 13440
Purchase Discount 360
Input Tax 43.2
Cash in Bank 13036.8
14 Purchases 25000
Input Tax 3000
Account Payable-Evergreen 28000
15 Account Payable-Goodwill Bookstore 1792
Purchase Discount 16
Input Tax 1.92
Cash 1774.08
16 Account Receivable-Robinson's 8960
Output Tax 960
Sales 8000
18 Cash 11642.4
Sales Discount 105
Output Tax 12.6
Account Receivable-Rustan 11760
20 Purchases 5800
Input Tax 696
Cash in Bank 6496
25 Cash in Bank 100000
Note Payable 100000
28 Account Payable-Evergreen 28000
Cash in Bank 28000
29 Cash 28000
Output Tax 3000
Sales 25000
30 Drawing, Katy 5000
Cash in Bank 5000
Salaries Expense 24000
Withholding Tax Payable 1200
SS Premiums Payable 720
Phil Health Premiums Payable 360
HDMF Premiums Payable 480
Cash in Bank 21240
31 Output Tax 5207.4
Input Tax 5282.88
Vat Payable
-108