URDANETA CITY UNIVERSITY

San Vicente West, Urdaneta City Pangasinan

College of Business Management and Accountancy

FIRST SEMESTER - A.Y. 2020-2021

Practice Set #2
Merchandising – Special Journals

The December 31, 2022 post-closing trial balance for Lindbergh Lendl Soriano Company
follows:
Lindbergh Lendl Soriano Company
Post-closing Trial Balance
December 31, 2022
Dr Cr
Cash 575,000
Accounts Receivable 250,000
Merchandise Inventory 600,000
Prepaid Advertising 45,000
Office Supplies 120,000
Land 800,000
Building 2,000,000
Accumulated Depreciation - Building 190,000
Office Equipment 600,000
Accumulated Depreciation – Office Equipment 220,000
Accounts Payable 375,000
Notes Payable 2,000,000
Soriano, Capital 2,205,000

4,990,000 4,990,000

Accounts Receivable of P250,000 is related to a sale to Richard John R. Sales on December

30, 2022. All credit sales are 3/10, n/30. The Accounts Payable balance of P375,000 is
attributable to a purchase on December 27, 2022 from Floyd Alexis G. Rafanan Company.
All credit purchases are 5/10, n/30. During the month of January 2023, the following
transactions were completed:

Sold merchandise on credit to Noel C. Ramirez, P375,000. Invoice

January 4 Number 451. Terms: FOB Destination.
Purchased merchandise on account from Virginia L. Bongolan Company,
4 P550,000. Invoice dated January 4. RR Number 201. Terms: FOB
Shipping Point.
5 Paid EMF Express for freight charges of merchandise sold to Noel C.
Ramirez, P1,500. Issued Check Number 371.
Paid EMF Express for freight charges of merchandise purchased from
6 Virginia L. Bongolan Company, P2,575. Issued Check Number 372.
Paid the amount due to Floyd Alexis G. Rafanan. Issued Check Number
6 373.
6 Sold merchandise for cash, P420,000.
Purchased merchandise on account from Maria Desiree C. Bello
8 Company, P750,000. Invoice dated January 8. RR Number 202. Terms:
FOB Shipping Point.
Sold merchandise on credit to Jesus Remar C. Dassun, P400,000. Invoice
8 Number 452. Terms: FOB Shipping Point.
Sold merchandise on credit to Arly N. Visperas, P475,000. Invoice
8 Number 453. Terms: FOB Destination.
 Paid EMF Express freight charges of merchandise purchased from Maria
Desiree C. Bello Company, P1,800, and freight charges of merchandise
January 9 sold to Arly N. Visperas, P1,600. Issued Check Number 374.
Collected the amount due from December 30 sale to Richard John R.
9 Sales. OR Number 186.
He purchased P175,000 worth of office supplies for cash. Issued Check
9 Number 375.
9 Sold merchandise for cash, P575,000.
Returned merchandise purchased from Virginia L. Bongolan Company,
11 P50,000.
11 Collected the amount due from Noel C. Ramirez. OR Number 187.
Arly N. Visperas returned P50,000 worth of merchandise purchased from
11 Lindbergh Lend S. Soriano.
Paid Virginia L. Bongolan Company amount due. Issued Check Number
13 376.
Purchased merchandise on account from Michelle P. Castañaga
13 Company, P645,000. Invoice dated January 13. RR Number 203. Terms:
FOB Shipping Point.
Paid EMF Express freight charges of merchandise sold to Michelle P.
14 Castañaga, P1,650. Issued Check Number 377.
15 Received full payment of Jesus Remar C. Dassun. OR #188.
Paid Maria Desiree C. Bello Company amount due. Issued Check Number
15 378.
15 Paid salaries for the month, P225,000. Issued Check Number 379.
Sold merchandise on credit to Jesus Remar C. Dassun, P255,000. Invoice
16 Number 454. Terms: FOB Shipping Point.
16 Sold merchandise for cash, P625,000.
Sold merchandise on credit to Noel C. Ramirez, P195,000. Invoice
16 Number 455. Terms: FOB Shipping Point.
18 Received the amount due from Arly N. Visperas. OR#189.
Sold merchandise on credit to Ladi George L. Gascon, P275,000. Invoice
19 Number 456. Terms: FOB Shipping Point.
21 Sold merchandise for cash, P550,000.
Purchased merchandise on account from Virginia L. Bongolan Company,
21 P425,000. Invoice dated January 21. RR Number 204. Terms: FOB
Shipping Point.
Paid Michelle P. Castañaga Company amount due. Issued Check Number
21 380.
Purchased merchandise for cash, P295,000. Issued Check Number 381.
22
23 Sold merchandise for cash, P395,000.
Purchased merchandise on account from Remedios A. Palaganas
26 Company, P375,000. Invoice dated January 26. RR Number 205. Terms:
FOB Shipping Point.
Received and paid telephone bill, P13,450. Issued Check Number 382.
27
Paid EMF Express freight charges of merchandise purchased from
27 Virginia L. Bongolan Company, P2,075, and Remedios A. Palaganas
Company, P1,900. Issued Check Number 383.
28 Received full payment of Jesus Remar C. Dassun. OR #190.
Received and paid electric bill, P25,750. Issued Check Number 384.
28
Withdrew P125,000 cash for personal use. Issued Check Number 385.
29
29 Sold merchandise for cash, P455,000.

Purchased merchandise on account from Floyd Alexis G. Rafanan

 29 Company, P215,000. Invoice dated January 29. RR Number 206.
Terms: FOB Destination.
30 Paid salaries for the month, P250,000. Issued Check Number 386.
30 Received full payment of Noel C Ramirez. OR #191.
Sold merchandise on credit to Richard John R. Sales, P285,000. Invoice
30 Number 457. Terms: FOB Shipping Point.
Sold merchandise on credit to Claiver C. Soriano, P305,000. Invoice
30 Number 458. Terms: FOB Shipping Point.
Sold merchandise on credit to Jasmin S. Acosta, P395,000. Invoice
30 Number 459. Terms: FOB Shipping Point.

Chart of Accounts
Balance Sheet Income Statement
Assets Income
110 Cash 410 Sales
Sales Returns and Allowances
120 Accounts Receivable 420
130 Merchandise Inventory 430 Sales Discounts
140 Prepaid Advertising Cost of Sales
150 Office Supplies 510 Purchases
Purchases Returns and
160 Land 520 Allowances
170 Building 530 Purchases Discounts
Accumulated Depreciation - Building 540 Transportation In
175 Expenses
180 Office Equipment 610 Salaries Expense
Accumulated Depreciation –Office 620 Advertising Expense
185 Equipment 630 Office Supplies Expense
Liabilities 640 Utilities Expense
210 Accounts Payable Depreciation Expense –
220 Salaries Payable 650 Building
230 Interest Payable Depreciation Expense –Office
240 Notes Payable 660 Equipment
Equity 670 Transportation Out
310 Soriano, Capital 680 Interest Expense
320 Soriano, Withdrawals
330 Income Summary

Required:
1. Record the transactions in the Special Journals (Cash Receipts Journal – CRJ-1, Cash
Disbursements Journal – CDJ-1, Purchases Journal – PJ-1, Sales Journal – SJ-1) and
General Journal – GJ-1.
2. Post the journal entries in the General Ledger.
3. For Accounts Receivable and Accounts Payable, post also to the subsidiary ledgers.
4. Prepare the Trial Balance.

5. Journalize the following adjustments in the General Journal then post to the General
Ledger. Record in the General Journal (GJ-2), then post to the General Ledger.
 a. Inventory of office supplies at the end of the month amounted to
P25,000.
b. Prepaid Advertising in the Post-closing Trial Balance is for nine (9)
months. The Prepaid Advertising for January has expired.
c. The cost of the Office Equipment is P600,000. The estimated
useful life is five (5) years with a salvage value of P50,000 at the
end of 5th year.
d. The cost of the Building is P2,000,000. The estimated useful life is
twenty (20) years with a salvage value of P100,000 at the end of
20th year.
e. The annual interest on notes payable is 18% to be paid every
December 31.
f. Accrued salaries amounted to P55,000.
g. The amount of Merchandise Inventory as of January 31, 2020 is
P250,000.
6. Prepare the ten-column Worksheet.
7. Prepare the Financial Statements.
8. Prepare the closing entries. Record in the General Journal (GJ-3), then
post to the General Ledger.
9. Prepare the Post-closing Trial Balance.