Activity 1 – Merchandising Concern

Mary Loque formed Merry Grocers on January 1, 2023. The business completed the following
transactions for the month.

Jan. 1 Invested P400,000 cash in to the business.

3 Made a six-month advance payment for rent, P60,000.
5 Purchased office equipment to SM for cash, P55,000.
7 Purchased merchandise on credit from Orca Co., terms 7 days, FOB shipping point,
P60,000.
8 Sold merchandise on credit to Lace Co., terms 7 days, FOB shipping point, P30,000
(Invoice No. 001).
9 Paid Menzi Co. for shipping charges on merchandise purchased on Oct. 7, P2,540.
10 Purchased merchandised on credit from Ritz Co., terms 15 days, FOB shipping point,
P18,000. Paid P6,000 freight for the shipment in cash.
13 Purchased office supplies on credit from Isa Co., P24,000.
14 Sold merchandise on credit to Pebbles Co., terms 30 days, FOB shipping point,
P24,000 (Invoice No. 002).

16 Received payment wfrom Lace Co.

17 Paid Orca Co. from Jan. 7 purchases.
19 Sold merchandise for cash to Yes Yes Co., P18,000 (Invoice No. 003).

25 Purchased merchandise for cash to ABC Co., P10,000

27 Paid electricity and water bills for the month, P1,250.
30 Purchased merchandise on account to Rocky Co., terms 10 days, FOB destination,
P15,000.
31 Paid salaries for the month, P14,000.
31 Sold merchandise on account to Bricks Co., terms 10 days, FOB destination, P26,000
(Invoice No. 004). Paid freight in cash, P3,500.
31 Mary made a personal withdrawal of P10,000 for emergency purposes.
Required:

1. Develop a cash book using an MS excel spreadsheet.

2. Record the transactions in the cash book.
3. Prepare a cash receipt report for the month of January 2023 using MS excel without a
gridline.
4. Submit in canvas the MS excel spreadsheet and using the MSword prepare a cash receipt
report with a narrative description below.
 5. This is an individual assignment.
6. Follow the following:

a. type this as a heading

date

type

description

value

sales

purchases

shipping charges

rent

office supplies

electricity and water

salaries

others

note (indicate here the account title affecting the transaction)

b. Type this as choices in type column

Cash Sales
AR Sales
Cash Purchases
AP Purchases
Advance Payment
Other Cash
Payment
Other Cash
Receipt