GROUP 1

a) Journalize the transactions using a perpetual inventory system

Date Account title Ref Debit Credit

Nov. 2 Inventory 120 6,900
Account Payable 201 6,900

4 Account Receivable 112 6,500

Sale Revenue 401 6,500
Cost of Goods Sold 505 3,900
3,900
Inventory 120

5 Freight-Out 644 240

Cash 101 240

6 Account Payable 201 500

Inventory 120 500

11 Account Payable 201 6,400

( 6,900 - 500 = 6,400) 6,400
Inventory 120
( 6,400 x 1% = 64) 6,336
101
Cash
( 6,400 - 64 = 6,336)

13 Sale Discount 414 65

( 6,500 x1% = 65)
Cash 101 6,435
( 6,500 - 65= 6,435) 6,500
Account Receivable 112

14 Inventory 120 3,800

Cash 101 3,800

16 Cash 101 500

Inventory 120 500

18 Inventory 120 4,500

Account Payable 201 4,500

20 Inventory 120 100

Cash 101 100
 23 Cash 101 7,400
Sales Revenue 401 7,400
Cost of Goods Sold 505 4,120
4,120
Inventory 120

26 Inventory 120 2,300

Cash 101 2,300

27 Account Payable 201 4,500

Inventory 120 90
( 4,500 x 2% = 90)
101 4,410
Cash
( 4,500 x 2% = 4,410)

29 Sales Returns and 412 90

Allowances 101 90
Cash 120 30
Inventory 505 30
Cost of Goods Sold

30 Accounts Receivable 112 3,700

Sales Revenue 401 3,700
Cost of Goods Sold 505 2,800
2,800
Inventory 120

b) Prepare the ledger accounts for the company for the month of
November 2022

Cash No. 101

Date Explanation Ref. Debit Credit Balance

2022
Nov. 1 9,000 9,000
240 8,760
5
6,336 2,424
11 6,435
 13 3,800 8,859
14 500 5,059
16 100 5,559
7,400
20 5,459
2,300
23 12,859
4,410
26 10,559
90
27 6,149
29 6,059

Accounts Receivable No. 112

Date Explanation Ref. Debit Credit Balance

2022
Nov. 4 6,500 6,500
6,500 0
13
3,700 3,700
30

Inventory No. 120

Date Explanation Ref. Debit Credit Balance

2022
Nov. 2 6,900 6,900
3,900 3,000
4
500 2,500
6
64 2,436
11 3,800
14 6,236
500
16 4,500 5,736
18 100 10,236
20 4,120 10,336
23 2,300 6,216
26 90 8,516
30 8,426
27 2,800
29 8,456
30 5,656

Accounts Payable No. 201

 Date Explanation Ref. Debit Credit Balance

2022
Nov. 2 6,900 6,900
500 6,400
6 6,400 0
11 4,500
4,500
18 4,500
0
27

Owner’s Capital No. 301

Date Explanatio Ref. Debit Credit Balance

n

2022
Nov. 1 9,000 9,000

Sales Revenue No. 401

Date Explanation Ref. Debit Credit Balance

2022
Nov. 4 6,500 6,500
7,400 13,900
23
3,700 17,600
30

Sales Returns and Allowances No. 412

Date Explanation Ref. Debit Credit Balance

2022
Nov. 90 90
29
 Sales Discounts No. 414

Date Explanation Ref. Debit Credit Balance

2022
Nov. 65 65
13

Cost of Goods Sold No. 505

Date Explanation Ref. Debit Credit Balance

2022
Nov. 4 3,900 3,900
4,120 8,020
23 30
7,990
29 2,800 10,790
30

Freight-Out No. 644

Date Explanation Ref. Debit Credit Balance

2022
Nov. 5 240 240

c) Prepare the income statement through gross profit for the month of
November 2022.
 Markey Department Store
Income Statement
For the month ended November 30
Sales
Sales Revenue $17,600
$90
Less: Sales returns and allowances 65 155
Sales discounts
17,445
Net sales 10,790
Cost of goods sold 6,655
Gross profit 240
Operating expenses
240
Freight-out
Total operating expenses 6,415

Income from operations

Other revenues and gains $6,415
Other expenses and losses ______
_____
_____
Net income ______