ARS MERCHANDISING

GENERAL JOURNAL
GJ- 1

DATE DESCRIPTION REF DEBIT CREDIT

2016
June 1 Cash 110 PHP 50,000.00
ARS, Capital 310 PHP 50,000.00
Initial Investment

2 Equipment 150 9,000.00

Cash 110 9,000.00
Bought equipment

Merchandise Inventory 130 15,000.00

Accounts Payable 210 15,000.00
CITI Corp., 2/10,n/30

3 Supplies 140 1,000.00

Cash 110 1,000.00
Bought supplies

4 Accounts Receivable 120 15,000.00

Sales 410 15,000.00
Sold merchandise on account,terms
2/10, n/30

Cost of Goods Sold 510 10,000.00

Merchandise Inventory 130 10,000.00
Cost of Goods Sold

5 Transportation Out 520 500.00

Cash 110 500.00
Freight on June 4 sale

6 Accounts Payable 210 500.00

Merchandise Inventory 130 500.00
Received credit from CITI Corp. for
merchandise returned

10 Accounts Payable 210 14,500.00

Cash 110 14,210.00
Merchandise Inventory 130 290.00
Payment of CITI Corp June 2
transaction

11 Cash 110 14,700.00

Sales Discount 420 300.00
Accounts Receivable 120 15,000.00
 Collection in full of June 4 transaction

12 Merchandise Inventory 130 15,000.00

Cash 110 15,000.00
Bought merchandise in cash
 ARS MERCHANDISING
GENERAL JOURNAL
GJ- 2
DATE DESCRIPTION REF DEBIT CREDIT
2016
June 13 Salaries Expense 540 1,500.00
Cash 110 1,500.00
Payment of salaries

14 Cash 110 22,000.00

Notes Payable 220 22,000.00
Borrowed money from UNO lending Corp.

17 Cash 110 1,000.00

Merchandise Inventory 130 1,000.00
Refund from supplier on June 12

20 Merchandise Inventory 130 12,000.00

Accounts Payable 210 12,000.00
Bought merchandise on account, terms
2/10, n/30

21 Merchandise Inventory 130 900.00

Cash 110 900.00
Freight on June 20 purchase

22 Cash 110 15,000.00

Sales 410 15,000.00
cash sales

Cost of Goods Sold 510 10,000.00

Merchandise Inventory 130 10,000.00
Cost of Goods Sold

25 Merchandise Inventory 130 15,000.00

Cash 110 15,000.00
Bought merchandise on cash basis

26 Accounts Payable 210 12,000.00

Merchandise Inventory 130 240.00
Cash 110 11,760.00
Payment of June 20 transaction

27 ARS, Drawing 320 2,018.00

Cash 110 2,018.00
Withdrawal for personal use

28 Sales Return and Allowances 430 500.00

Cash 110 500.00
Refund to customer for the defective
goods

29 Accounts Receivable 120 15,000.00

Sales 410 15,000.00
Sold merchandise on account

Cost of Goods Sold 510 11,000.00

 Merchandise Inventory 130 11,000.00
Cost of Goods Sold

30 Salaries 540 2,000.00

Utilities 550 500.00
Rent 530 3,000.00
Advertising 560 1,000.00
Cash 110 6,500.00
Payment of Expenses
 ARS MERCHANDISING
GENERAL LEDGER

CASH 110
BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT
2016
June 1 Initial Investment GJ-1 PHP 50,000.00 PHP 50,000.00
2 bought equipment GJ-1 PHP 9,000.00 41,000.00
3 Bought supplies GJ-1 1,000.00 40,000.00
5 Freight on sold goods GJ-1 500.00 39,500.00
10 Payment to creditor GJ-1 14,210.00 25,290.00
11 Receivable Collection GJ-1 14,700.00 39,990.00
12 Goods bought GJ-1 15,000.00 24,990.00
13 paymentof salaries GJ-2 1,500.00 23,490.00
14 Borowings GJ-2 22,000.00 45,490.00
17 Refund from supplier GJ-2 1,000.00 46,490.00
21 Freight on goods purchased GJ-2 900.00 45,590.00
22 Cash Sales GJ-2 15,000.00 60,590.00
25 Goods bought GJ-2 15,000.00 45,590.00
26 Payment to creditor GJ-2 11,760.00 33,830.00
27 Drawing GJ-2 2,018.00 31,812.00
28 Refund to customer GJ-2 500.00 31,312.00
30 various expenses GJ-2 6,500.00 24,812.00
ACCOUNTS RECEIVABLES 120
BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT
2016
June 4 GJ-1 PHP 15,000.00 PHP 15,000.00
11 GJ-1 PHP 15,000.00 -
29 GJ-2 15,000.00 15,000.00

MERCHANDISE INVENTORY 130

BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT
2016
June 2 GJ-1 PHP 15,000.00 PHP 15,000.00
4 GJ-1 PHP 10,000.00 5,000.00
6 GJ-1 500.00 4,500.00
10 GJ-1 290.00 4,210.00
12 GJ-1 15,000.00 19,210.00
17 GJ-2 1000.00 18,210.00
20 GJ-2 12,000.00 30,210.00
21 GJ-2 900.00 31,110.00
22 GJ-2 10000.00 21,110.00
25 GJ-2 15,000.00 36,110.00
26 GJ-2 240.00 35,870.00
29 GJ-2 11000.00 24,870.00

SUPPLIES 140
BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT
2016
June 3 GJ-1 PHP 1,000.00 PHP 1,000.00

EQUIPMENT 150
BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT
2016
June 2 GJ-1 PHP 9,000.00 PHP 9,000.00

ACCOUNTS PAYABLE 210

BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT
2016
June 2 GJ-1 PHP 15,000.00 PHP 15,000.00
6 GJ-1 500.00 14,500.00
10 GJ-1 14,500.00 -
20 GJ-2 12,000.00 12,000.00
26 GJ-2 12,000.00 -

NOTES PAYABLE 220

BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT
2016
June 14 GJ-2 22,000.00 PHP 22,000.00
ROSE, CAPITAL 310
BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT
2016
June 1 GJ-1 50,000.00 PHP 50,000.00
30 Closing GJ-3 4,700.00 54,700.00
Closing GJ-3 PHP 2,018.00 52,682.00

ROSE, DRAWING 320

BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT
2016
June 27 GJ-2 PHP 2,018.00 PHP 2,018.00
30 Closing GJ-3 PHP 2,018.00 0
SALES 410
BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT
2016
June 4 PHP 15,000.00 PHP 15,000.00
22 GJ-2 15,000.00 30,000.00
29 GJ-2 15,000.00 45,000.00
30 Closing GJ-3 45,000.00 0

SALES DISCOUNT 420

BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT
2016
June 11 GJ-1 PHP 300.00 PHP 300.00
30 Closing GJ-3 PHP 300.00 0

SALES RETURNS AND ALLOWANCES 430

BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT
2016
June 28 GJ-2 PHP 500.00 PHP 500.00
30 Closing GJ-3 PHP 500.00 0

Cost of Goods Sold 510

BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT
2016
June 4 10,000.00 10,000.00
22 GJ-2 10,000.00 20,000.00
29 GJ-2 11,000.00 31,000.00
30 Closing GJ-3 31,000.00 0
TRANSPORTATION OUT 520
BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT
2016
June 5 GJ-1 PHP 500.00 PHP 500.00
30 Closing GJ-3 PHP 500.00 0

RENT EXPENSE 530

BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT
2016
June 30 GJ-2 PHP 3,000.00 PHP 3,000.00
30 Closing GJ-3 PHP 3,000.00 0

SALARIES EXPENSE 540

BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT
2016
June 13 GJ-2 PHP 1,500.00 PHP 1,500.00
30 GJ-2 2,000.00 3500
30 Closing GJ-3 3500 0
UTILITIES EXPENSE 550
BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT
2016
June 30 GJ-2 PHP 500.00 PHP 500.00
30 Closing GJ-3 500.00 0

ADVERTISING EXPENSE 560

BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT
2016
June 30 GJ-2 PHP 1,000.00 PHP 1,000.00
30 Closing GJ-3 PHP 1,000.00 0

INCOME SUMMARY 601

.
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT
2016
30 Closing GJ-3 PHP 44,200.00 PHP 44,200.00
Closing GJ-3 39,500.00 4,700.00
Closing GJ-3 4,700.00 0
 ARS MERCHANDISING
TRIAL BALANCE
June 30, 2016

ACCT. NO. ACCOUNT TITLES DEBIT CREDIT

110 Cash PHP 24,812.00
120 Accounts Receivable 15,000.00
130 Merchandise inventory 24,870.00
140 Supplies 1,000.00
150 Equipment 9,000.00
210 Accounts Payable -
220 Notes Payable 22,000.00
310 ARS, Capital 50,000.00
320 ARS, Drawing 2,018.00
410 Sales 45,000.00
420 Sales Discounts 300.00
430 Sales Returns and Allowances 500.00
510 Cost of Goods Sold 31,000.00
520 Transportation Out 500.00
530 Rent Expense 3,000
540 Salaries Expense 3500
550 Utilities Expense 500
560 Advertising Expense 1000
601 Income Summary
PHP 117,000.00 117,000.00
 ARS MERCHANDISING
STATEMENT OF PERFORMANCE
FOR THE PERIOD ENDED JUNE 30, 2016

Sales PHP 45,000.00

Less: Sales Return and Allowances 500
Sales Discounts 300 800.00
Net Sales PHP 44,200.00
Less: Cost of Goods Sold 31,000.00
Gross Profit PHP 13,200.00
Less Operating expenses
Transportation Out 500.00
Rent Expense 3,000.00
Salaries Expense 3,500.00
Utilities Expense 500
Advertising Expense 1000 8,500.00
Net Income PHP 4,700.00

ARS MERCHANDISING
STATEMENT OF EQUITY
FOR THE PERIOD ENDED JUNE 30, 2016
ARS, Capital, June 1 0
add: Initial Investment 50,000
Add: Net Income PHP 4,700.00
less: ARS, Drawing 2,018.00
Increase in Capital 2,682.00
ARS, Capital, June 30 52,682.00

ARS MERCHANDISING
STATEMENT OF FINANCIAL POSITION
June 30, 2016
ASSETS
Current Assets
Cash and Cash Equivalents PHP 24,812.00
Receivable 15,000.00
Inventories 24,870.00
Prepaid Expenses 1000
Total Current Assets PHP 65,682.00

Non-current Assets
Property , Plant and Equipment 9,000
Total Assets PHP 74,682.00

Liabilities
Current Liabilities
Accounts Payable 0
Non-current Liabilities
Notes Payable 22,000
Total Liabilities 22,000

Owner's Equity
ARS, Capital 52,682

Total Liabilities and Equity PHP 74,682.00

 ARS MERCHANDISING
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED JUNE 30, 2016

Cash Flows from Operating Activities

Cash Received from:
Receivable Collection PHP 14,700.00
Refund 1,000.00
Sales 15,000.00
Payment for:
Supplies Bought (1,000.00)
Tranportation on Sold Good (500.00)
Goods Bought (55,970.00)
Operating Expenses (8,000.00)
Transportation on Goods Bought (900.00)
Refund to Customer (500.00)
Total Cah flows from Operating Activities (36,170.00)

Cash Flows from Investing Activities

Equipment Bought 9,000

Cash Flows from Financing Activities

Initial Investment 50,000
Borrowings 22,000.00
Drawing (2,018.00)
Total Cash Flows From Financing Activities 69,982.00

Increase in Cash and Cash Equivalents PHP 24,812.00

ADD: Cash and Cash Equivalents, June 1 0
Cash and Cash Equivalents, June 30 PHP 24,812.00
 ARS MERCHANDISING
CLOSING ENTRIES

DATE ACCOUNT TITLES REF DEBIT CREDIT

2016
June 30 Sales 410 PHP 45,000.00
Sales Return and Allowances 430 PHP 500.00
Sales Discounts 420 300.00
Income Summary 601 44,200.00

Income Summary 601 39,500.00

Cost of Goods Sold 510 31,000.00
Transportation Out 520 500.00
Rent Expense 530 3,000.00
Salaries Expense 540 3,500.00
Utilities Expense 550 500.00
Advertising Expense 560 1,000.00

Income Summary 601 4,700.00

ARS Capital 310 4,700.00

ARS, Capital 310 2,018.00

ARS, Drawing 320 2,018.00
Err:509
PHP 45,000.00

8,500.00
 ARS MERCHANDISING
TRIAL BALANCE
June 30, 2016

ACCT. NO. ACCOUNT TITLES DEBIT CREDIT

110 Cash PHP 24,812.00
120 Accounts Receivable 15,000.00
130 Merchandise inventory 24,870.00
140 Supplies 1,000.00
150 Equipment 9,000.00
210 Accounts Payable -
220 Notes Payable 22,000.00
310 ARS, Capital 52,682.00
PHP 74,682.00 PHP 74,682.00

Adjusting Entries

Date

Debit
Credit
Amount