FINANCIAL ACCOUNTING AND REPORTING

I. Delma Lope operates an educational supplies store. Journalize her transactions during the
month of May 2014. (disregard explanations)

May 3 Total purchases of notebook, bond papers, etc. from Vasquez Bros.
amounted to P6,000. Terms: down payment of P1,000; balance 1/15,
n/30.

5 Total cash sales to students, P 3,200.

8 Textbooks bought from PECO had been received today, P9,500. Terms:
COD.

10 Ms. Lope’s son got school supplies worth P 150 for his own use.

14 An emergency purchase of highly salable textbooks was made from

Goodwill, Inc., P3,000. Terms: n/5.

16 Paid the account in full with Vasquez Bros.

18 The proprietor withdrew P 1,200 for her personal expenditures.

19 Issued a 10-day, 6% note to Goodwill, Inc. to apply on the May 14

account with them.

23 Sold goods to A. Solosa, P 650. Terms: on account.

25 Unrecorded cash sales to date, P 4,800.

27 A personal bill of the proprietor from Famous Grocery was received at the
store and was paid from cash of the business, P 1,800.

27 Received shipment of books, P5,500, ordered directly from Century

Publishers. Terms: 20% down payment; balance 2/10, n/60.

28 The proprietor reported that A. Solosa has personally paid his account to
her and the she is using the proceeds to pay off a personal debt.

28 Freight paid on the purchase from Century Publishers, P 750.

29 The 10-day, 6% note issued to Goodwill, Inc. fell due today and was paid
in full from the personal funds of the owner.
II. Below is a partial list of transactions completed by Centaur Electrical Supplies during the
first few months of operations. Journalize the following transactions, disregarding
explanation.

July 5 The business was started by M. Castro with a beginning investment

consisting of P20,000 cash, store fixtures and equipment of P8,000 and
office furniture of P2,500.

6 Purchases made for initial stock requirements were as follows:

From Avenue Hardware, P 10,000. Invoice no. 5370 dated July5.

Terms: P3,000 down; balance 1/10,n/20

From United Manufacturers, P15,000. Invoice No. 1053 dated

July6. Terms: 30% down payment; 10-day, 6% note for the
balance.

8 Retail sales, all for cash, were P 7,000.

10 Sold goods, P 6,000, for which a 10-day, 9% note dated today was
received.

11 Cash customers who have returned merchandise were given a total cash
refund of P750.

14 Gave P2,000 to Avenue Hardware in payment of the account with them.

15 Everlasting Construction purchased goods from us, P 8,500. Terms: a 20-

day, non-interest bearing note for P5,000; balance 2/10, n/20.

16 The note issued to United Manufacturers matured today and was paid.

17 Sold electrical supplies to Highland Contractors, P2,500. Terms: on

account.

19 A purchase of additional furniture for the office was made from

Marvelous Furniture, P3,000. Terms: on credit.

20 Collected the note dated July 10.

22 Highland contractors was allowed a credit of P500 for unsatisfactory

merchandise.

22 The request for an allowance of P600 was granted to us by Marvelous

Furniture.

25 Everlasting Construction paid its account in full today.

26 Our request for an extension of credit with respect to the unpaid balance
with Avenue Hardware has been accepted. A 20-day note dated today was
issued.

28 Highland Contractors has sent us a 10-day, 4% note to cover its

outstanding account with us.

31 Payroll for the month was paid, P15,000 less deductions of P 500 and
P800 for SSS Premiums and withholding taxes, respectively.
Aug 4 The note of Everlasting Construction was collected in full today.

5 Remitted the SSS Premiums and income taxes withheld in the previous
month.

7 Received cash from Highland Contractors in full payment of their note

due today.