Problem #1

Req. 1: Amount recorded as sale

Trade Discount Credit Terms Date Paid List Price=P120, 000
A. 30% 2/10, n/30 Jun-08 A
B. 40% 1/10, n/30 Jun-15 B
C. - 2/10, n/30 Jun-11 C
D. 20% 1/15, n/30 Jun-14 D
E. 40% n/30 Jun-28 E
: Amount recorded as sale Req. 2: Cash Received

₱84,000.00 A ₱82,320.00
₱72,000.00 B ₱72,000.00
₱120,000.00 C ₱117,600.00
₱96,000.00 D ₱95,040.00
₱72,000.00 E ₱72,000.00
Problem #3

Purchases Shipping Terms Prepaid Freight (by seller) Credit Memo

A. 12, 000 FOB shipping point P 1, 000 P 3, 000
B. 24, 000 FOB destination 2, 400 2, 000
C. 28, 000 FOB shipping point 4, 000
D. 40, 000 FOB shipping point 3, 000
 Req.1: Cash Discounts Available Req.2: Cash Remittance
Credit Terms=2/10, n/30
A ₱180.00 A ₱9,820.00
B ₱440.00 B ₱21,560.00
C ₱480.00 C ₱23,520.00
D ₱800.00 D ₱42,200.00
Problem #5
Req. 1: Cash to be paid
#1 #2 #3
List Price ₱224,000.00 ₱126,000.00 ₱90,000.00
Trade Discount -₱67,200.00 -₱25,200.00 -
Invoice Price ₱156,800.00 ₱100,800.00 ₱90,000.00
Purchases Ret. & Allowances -₱21,000.00 - -₱7,000.00
₱135,800.00 ₱100,800.00 ₱83,000.00
Purchase Discount -₱2,716.00 -₱1,008.00 -₱1,660.00
₱133,084.00 ₱99,792.00 ₱81,340.00
Transportation Cost ₱4,000.00 - ₱2,000.00
Cash to be paid ₱137,084.00 ₱99,792.00 ₱83,340.00
 #4 #5
₱41,000.00 ₱357,000.00
-₱10,250.00 -₱71,400.00
₱30,750.00 ₱285,600.00
-₱9,000.00 -₱24,000.00
₱21,750.00 ₱261,600.00
-₱435.00 -₱7,848.00
₱21,315.00 ₱253,752.00
₱1,000.00 -
₱22,315.00 ₱253,752.00
Problem #11

Books of Ilano (Seller)

A. #1
Jun-16 Accounts Receivable ₱6,000.00
Sales ₱6,000.00

Jun-24 Cash ₱5,880.00

Sales Discount ₱120.00
Accounts Receivable ₱6,000.00

B. #1
Jun-16 Accounts Receivable ₱6,000.00
Transportation Out ₱600.00
Sales ₱6,000.00
Cash ₱600.00

Jun-25 Cash ₱5,880.00

Sales Discount ₱120.00
Accounts Receivable ₱6,000.00

C. #1
Jun-16 Accounts Receivable ₱6,600.00
Sales ₱6,000.00
Cash ₱600.00

Jun-25 Cash ₱6,480.00

Sales Discount ₱120.00
Accounts Receivable ₱6,600.00

D. #1
Jun-16 Accounts Receivable ₱5,400.00
Transportation Out ₱600.00
Sales ₱5,400.00
Cash ₱600.00

Jun-25 Cash ₱5,280.00

Sales Discount ₱120.00
Sales ₱5,400.00
Books of Pascual (Buyer)
B. #2
Jun-17 Purchases ₱6,000.00
Transportation In ₱600.00
Accounts Payable ₱6,000.00
Cash ₱600.00

Jun-24 Accounts Payable ₱6,000.00

Cash ₱5,880.00
Purchases Discount ₱120.00

#2
Jun-17 Purchases ₱6,000.00
Cash ₱6,000.00

Jun-24 Accounts Payable ₱6,000.00

Cash ₱5,880.00
Purchases Discount ₱120.00

Jun-17 Purchases ₱6,000.00

Transportation In ₱600.00
Accounts Payable ₱6,600.00

Jun-24 Accounts Payable ₱6,600.00

Cash ₱6,480.00
Purchases Discount ₱120.00

Jun-17 Purchases ₱6,000.00

Accounts Payable ₱5,400.00
Cash ₱600.00

Jun-24 Accounts Payable ₱5,400.00

Cash ₱5,280.00
Purchases Discount ₱120.00
Problem #16

Books of Ramos Distributors

Journal Entries
May-21
Date Debit
May-04 Accounts Receivable ₱162,000.00
Transportation Out ₱2,000.00
Sales
Accounts Payable
(Sold merchandise on account; FOB destination)

5 Accounts Receivable ₱710,000.00

Sales
(Sold merchandise on account)

7 Sales Return ₱12,000.00

Accounts Receivable
(Received returned merchandise from the May 4 sale)

9 Cash ₱147,000.00
Sales Discount ₱3,000.00
Accounts Receivable
(Received payment from the purchase of May 4, less the returns and discount)

10 Accounts Payable ₱2,000.00

Cash
(Paid the freight charges on purchase from May 4)

12 Cash ₱695,800.00
Sales Discount ₱14,200.00
Accounts Receivable
(Received payment on the May 5 transaction)

18 Accounts Receivable ₱250,000.00

Sales
(Sold merchandise on account)

23 Cash ₱150,000.00
Sales Discount ₱100,000.00
Accounts Receivable
(Received payment from the transaction of May 18)
 Books of Cammayo Retailers
Journal Entries
May-21
Credit Date
May-04 Purchases
Accounts Payable
₱162,000.00 (Purchased merchandise on account)
₱2,000.00
5 Purchases
Transportation In
Accounts Payable
₱710,000.00 (Purchased merchandise on account; FOB shipping point)

6 Transportation In
Cash
₱12,000.00 (Paid freight charges on the purchases or Mar.5)

7 Accounts Payable
Purchases Return and Allowances
(Returned merchandise from the May 4 sale)
₱150,000.00
9 Accounts Payable
Cash
Purchases Discount
₱2,000.00 (Paid the purchase from May 4, less the returns and discounts)

12 Accounts Payable
Cash
Purchases Discount
₱710,000.00 (Paid cash on the May 5 transaction)

18 Purchases
Transportation In
₱250,000.00 Accounts Payable
(Purchased merchandise on account; FOB shipping point)

21 Accounts Payable
Cash
₱250,000.00 (Paid freight charges on the May 18 transaction)

23 Accounts Payable
Cash
Purchases Discount
(Paid the purchases from May 18 transaction)
Debit Credit
₱162,000.00
₱162,000.00

₱710,000.00
₱8,000.00
₱718,000.00

₱8,000.00
₱8,000.00

₱12,000.00
₱12,000.00

₱150,000.00
₱147,000.00
₱3,000.00

₱710,000.00
₱695,800.00
₱14,200.00

₱250,000.00
₱3,000.00 ₱253,000.00

₱3,000.00 ₱3,000.00

₱250,000.00
₱150,000.00
₱100,000.00
Problem #17
Req.: Journal Entries

MARIANO LERIN BOOKSTORE

Journal Entry
Mar-21
Date Account Titles Debit
Mar-02 Purchases ₱74,000.00
Accounts Payable
(Purchased merchandise on credit)

3 Accounts Receivable ₱10,000.00

Sales
(Sold merchandise on credit)

5 Cash ₱7,000.00
Sales
(Sold merchandise for cash)

6 Purchases ₱42,000.00
Accounts Payable
(Purchased and received merchandise on credit)

7 Transportation In ₱570.00
Accounts Payable
(Received freight bill)

9 Accounts Receivable ₱38,000.00

Sales
(Sold merchandise on credit)

10 Purchases ₱26,500.00
Transportation In ₱500.00
Accounts Payable
(Purchased merchandise including freight cost)

11 Transportation Out ₱291.00

Accounts Payable
(Received freight bill)

12 Accounts Payable ₱74,000.00

Cash
(Paid purchase on Mar. 02)

13 Cash ₱10,000.00
 Accounts Receivable
(Received payment in full for the purchase on Mar. 3)

14 Purchases ₱21,000.00
Cash
Purchases Discount
(Paid half payment for the purchase on Mar.6 with discount)

15 Accounts Payable ₱3,000.00

Purchases Return and Allowances
(Returned faulty merchandise on credit)

16 Purchases ₱4,780.00
Accounts Payable
(Purchased office supplies)

17 Cash ₱18,810.00
Sales Discount ₱190.00
Accounts Receivable
(Received half payment for the purchase from Mar.9 with discount)

18 Accounts Payable ₱23,500.00

Cash
(Paid full for the purchase from Mar.10, less the return from Mar.15)

19 Accounts Receivable ₱7,800.00

Sales
(Sold merchandise on credit)

20 Accounts Payable ₱1,280.00

Purchases Return and Allowances
(Returned for credit several office supplies from Mar.16)

22 Sales Return ₱1,800.00

Accounts Receivable
(Issued a credit memo for returned merchandise)

25 Accounts Payable ₱3,500.00

Cash
(Paid the purchase on Mar.16, less the return on Mar.20)

26 Accounts Payable ₱861.00

Cash
(Paid freight charges on Mar.7 and Mar.11)
27 Cash ₱6,520.00
Accounts Receivable
(Received payment for the purchase from Mar.19, less the return on Mar.22)

28 Accounts Payable ₱46,000.00

Cash
(Paid the balance on the Mar.6 purchase)

31 Cash ₱9,730.00
Sales
Credit

₱74,000.00

₱10,000.00

₱7,000.00

₱42,000.00

₱570.00

₱38,000.00

₱27,000.00

₱291.00

₱74,000.00
₱10,000.00

₱20,580.00
₱480.00

₱3,000.00

₱4,780.00

₱19,000.00

₱23,500.00

₱7,800.00

₱1,280.00

₱1,800.00

₱3,500.00

₱861.00
 ₱6,520.00

₱46,000.00

₱9,730.00
Problem #2

Req.1: Merchandising Inventory Req.2: Partial Income Statement

Sales
Beginning Balance ₱80,000.00 Sales Return and Allowances
Net Purchase ₱58,000.00 ₱64,000.00 Purchases
Ending Balance ₱74,000.00
e Statement
₱190,000.00
-₱20,000.00
-₱60,000.00
₱110,000.00
Problem #4

Income Statement Balance Sheet

Account Titles Debit Credit Debit Credit
Merchandise Inventory, Beginning ü
Sales ü
Sales Returns and Allowances ü
Purchases ü
Purchases Returns and Allowences ü
Purchases Discounts ü
Transportation In ü
Salaries Payable ü
Merchandise Inventory, Ending ü
Problem #7
CHRISTINE SOUSA BAGS
Worksheet
DEC. 31, 2021
Unadjusted Trial Balance Adjustments
Account Titles Debit Credit Debit
Cash ₱72,000
Accounts Receivable ₱136,000
Merchandise Inventory ₱598,000
Office Supplies ₱42,000
Prepaid Advertising ₱75,000
Land ₱400,000
Office Bldg. ₱1,600,000
Accum. Depreciation-Bldg. ₱100,000
Office Equipt. ₱570,000
Accum. Depreciation-Office Equipt. ₱150,000
Accounts Payable ₱74,000
Notes Payable ₱200,000
Mortgage Payable ₱1,100,000
Salaries Payable
Sousa, Capital ₱1,510,000
Sousa, Withdrawals ₱200,000
Income Summary
Sales ₱4,600,000
Sales Returns and Allowances ₱187,000
Sales Discounts ₱161,000
Purchases ₱2,643,000
Purchases Returns and Allowances ₱133,000
Purchases Discounts ₱172,000
Transportation In ₱72,000
Salaries Expense ₱862,000 ₱21,000
Travel Expense ₱188,000
Insurance Expense ₱25,000
Office Supplies Expense ₱17,000
Advertising Expense ₱25,000
Depreciation Expense-Office Bldg. ₱15,000
Depreciation Expense-Office Equpt. ₱20,000
Interest Expense ₱208,000
₱8,039,000 ₱8,039,000 ₱98,000
Profit
Totals

Closing Entries
1) Sales ₱4,600,000
Purchases Returns and Allowances ₱133,000
Purchases Discounts ₱172,000
 Merchandise Inventory, End ₱723,000
Income Summary ₱5,628,000
To close temporary accounts with credit balances and establish the ending merchandise inventory

2) Income Summary ₱5,042,000

Merchandise Inventory, Beg. ₱598,000
Sales Returns and Allowances ₱187,000
Sales Discounts ₱161,000
Purchases ₱2,643,000
Transportation In ₱72,000
Salaries Expense ₱883,000
Travel Expense ₱188,000
Insurance Expense ₱25,000
Office Supplies Expense ₱17,000
Advertising Expense ₱25,000
Depreciation Expense-Office Bldg. ₱15,000
Depreciation Expense-Office Equpt. ₱20,000
Interest Expense ₱208,000
To close temporary accounts with debit balances and remove the beginning merchandise inventory

3) Income Summary ₱586,000

Sousa, Capital ₱586,000
To close the income summary account

4) Sousa, Capital ₱200,000

Sousa, Withdrawals ₱200,000
AGS

Adjustments Adjusted Trial Balance Income Statement Balance Sheet

Credit Debit Credit Debit Credit Debit
₱72,000 ₱72,000
₱136,000 ₱136,000
₱598,000 ₱598,000 ₱723,000 ₱723,000
₱17,000 ₱25,000 ₱25,000
₱25,000 ₱50,000 ₱50,000
₱400,000 ₱400,000
₱1,600,000 ₱1,600,000
₱15,000 ₱115,000
₱570,000 ₱570,000
₱20,000 ₱170,000
₱74,000
₱200,000
₱1,100,000
₱21,000 ₱21,000
₱1,510,000
₱200,000 ₱200,000

₱4,600,000 ₱4,600,000
₱187,000 ₱187,000
₱161,000 ₱161,000
₱2,643,000 ₱2,643,000
₱133,000 ₱133,000
₱172,000 ₱172,000
₱72,000 ₱72,000
₱883,000 ₱883,000
₱188,000 ₱188,000
₱25,000 ₱25,000
₱17,000 ₱17,000
₱25,000 ₱25,000
₱15,000 ₱15,000
₱20,000 ₱20,000
₱208,000 ₱208,000
₱98,000 ₱8,095,000 ₱8,095,000 ₱5,042,000 ₱5,628,000 ₱3,776,000
₱586,000
₱5,628,000 ₱5,628,000 ₱3,776,000
handise inventory

rchandise inventory
 CHRISTINE SOUSA BAGS
Balance Sheet
Dec. 31, 2021
Balance Sheet
Credit Current Assets
Cash
Accounts Receivable
Merchandise Inventory
Office Supplies
Prepaid Advertising

Non-Current Assets
₱115,000 Land
Office Bldg.
₱170,000 Accum. Depreciation-Bldg.
₱74,000 Office Equipt.
₱200,000 Accum. Depreciation-Office Equipt.
₱1,100,000
₱21,000 Total Assets
₱1,510,000
Liabilities
Accounts Payable
Notes Payable
Mortgage Payable
Salaries Payable
Total Liabilities

Equities
Sousa, Capital
Total Liabilities and Equities

₱3,190,000
₱586,000
₱3,776,000
STINE SOUSA BAGS CHRISTINE SOUSA BAGS
Balance Sheet Income Statement
Dec. 31, 2021 For the Year Ended December 31, 2021

Sales
₱72,000.00 Less: Sales Returns and Allowances
₱136,000.00 Sales Discounts
₱723,000.00 Net Sales
₱25,000.00
₱50,000.00 Less Cost of Goods Sold
₱1,006,000.00 ₱1,006,000.00 Beginning of Inventory
Add: Net Purchases
₱400,000.00 Purchases ₱2,643,000
₱1,600,000.00 Purchases Returns and Allowances -₱133,000
-₱115,000.00 Purchases Discounts -₱172,000
₱570,000.00 Transportation In ₱72,000
-₱170,000.00 Goods Available for Sale
₱2,285,000.00 ₱2,285,000.00 Less: Ending Inventory
₱3,291,000.00 Gross Profit
Less: Operating Expenses
Salaries Expense
₱74,000.00 Travel Expense
₱200,000.00 Insurance Expense
₱1,100,000.00 Supplies Expense
₱21,000.00 Advertising Expense
₱1,395,000.00 ₱1,395,000.00 Depreciation Expense-Office Bldg.
Depreciation Expense-Office Equpt.
Interest Expense
₱1,896,000.00 Net Profit
₱3,291,000.00
USA BAGS CHRISTINE SOUSA BAGS
tement Statement of Changes in Equities
ecember 31, 2021 For the Year Ended December 31, 2021

₱4,600,000.00 Equities
₱187,000 Sousa, Capital, Beg. ₱1,510,000.00 a
₱161,000 ₱348,000.00 Add: Net Profit ₱586,000.00
₱4,252,000.00 Total ₱2,096,000.00
Less: Withdrawals ₱200,000.00 b
Sousa, Capital, End ₱1,896,000.00
₱598,000
c

d
₱2,410,000
₱3,008,000
₱723,000 ₱2,285,000.00
₱1,967,000.00
e
₱883,000
₱188,000
₱25,000
₱17,000
₱25,000
₱15,000
₱20,000
₱208,000 ₱1,381,000.00
₱586,000.00
Adjusting Entries
Debit Credit
Office Supplies Expense ₱17,000.00
Office Supplies ₱17,000.00

Advertising Expense ₱25,000.00

Prepaid Advertisement ₱25,000.00

Salaries Expense ₱21,000.00

Salaries Payable ₱21,000.00

Depreciation Expense-Bldg. ₱15,000.00

Depreciation Expense-Office Equipt. ₱20,000.00
Accum. Depreciation-Bldg. ₱15,000.00
Accum. Depreciation-Office Equipt. ₱20,000.00

Merchandising Inventory ₱723,000.00

Income Summary ₱598,000.00

Income Summary ₱598,000.00

Merchandising Inventory ₱723,000.00
Problem #9

Marissa Babilonia Health Store

Income Statement
Dec. 31, 2021
Revenues from Sales
Gross Sales
Less: Sales Returns and Allowances ₱260,000.00
Sales Discounts ₱140,000.00
Net Sales
Cost of Goods Sold
Merchandise Inventory, Beg. ₱1,160,000.00
Purchases ₱6,710,000.00
Less: Purchases Rets. And Allowances ₱250,000.00
Purchases Discounts ₱180,000.00 ₱430,000.00
Net Purchases ₱6,280,000.00
Transportation In ₱100,000.00
Net Cost of Purchases ₱6,380,000.00
Goods Available for Sale ₱7,540,000.00
Less: Merch. Inventory, End ₱1,040,000.00
Cost of Good Sales ₱6,500,000.00
Gross Profit ₱2,910,000.00
Operating Expenses
Selling Expenses
Salaries expenses ₱960,000.00
Selling Supplies Expense ₱70,000.00
Depreciation Expense-Store Equipt. ₱140,000.00
Transportation Out ₱260,000.00
Advertising Expense ₱150,000.00
Total Selling Expenses ₱1,580,000.00
General Expenses
Salaries Expenses ₱1,130,000.00
Office Supplies Expense ₱430,000.00
Depreciation Expense-Office Equipt. ₱110,000.00
Miscellaneous Expenses ₱90,000.00
Total General Expenses ₱1,760,000.00
Total Operating Expenses ₱3,340,000.00
Loss ₱430,000.00
₱9,810,000.00

₱400,000.00
₱9,410,000.00
Problem #11
Dec. 31 Merchandise Inventory, End
Sales
Purchases Ret. & Allow.
Purchases Discountss
Income Summary
To close temporary accounts with credit balance
and to establish the ending merchandise inventory.

31 Income Summary
Merchandise Inventory, Beg.
Sales Ret. & Allow.
Sales Discounts
Purchases
Transportation In
Operating Expenses
To close remporary accounts with debit balance
and to remove beginning inventory

31 Income Summary
Torres, Capital
To close the income summary account

31 Torres, Capital
Torres, Withdrawals
To close the withdrawal account.
 ₱118,000.00
₱1,000,000.00
₱6,000.00
₱13,200.00
₱1,137,200.00

₱1,066,000.00
₱128,000.00
₱3,000.00
₱9,000.00
₱660,000.00
₱16,000.00
₱250,000.00

₱71,200.00
₱71,200.00

₱24,000.00
₱24,000.00