CHART OF ACCOUNTS

Account title Acct. No.

CASH 101
ACCOUNTS RECEIVABLE 102
MERCHANDISE INVENTORY 103
SUPPLIES 104
EQUIPMENT 105
ACCOUNTS PAYABLE 201
NOTES PAYABLE 202
HARD, CAPITAL 301
TIGAS, DRAWINGS 302
SALES 401
SALE DISCOUNT 402
SALES RETURN & ALLOWANCES 403
PURCHASES 404
PURCHASE RETURN 405
PURCHASE DISCOUNT 406
FREIGHT OUT 502
FREIGHT IN 501
SALARIES 506
RENT 505
ADVERTISING 503
UTILITIES 504
JOURNAL - GJ 1

Date Account Titles and Explanations Ref Debit Credit

april 1 Cash 101 39,000
Lopez capital 301 39,000
to record the capital invested by the owner

2 Equipment 105 10,000

Cash 101 10,000
to record the acquisition of equipment

2 purchases 104 15,900

accounts payable 101 15,900
to record the acquisition of merchandise on account

3 supplies 404 700

cash 201 700
to record the merchandise purchased on account

4 Accounts Receivable 102 15,200

Sales 401 15,200
to record the sale of merchandise on account

5 Freight Out 502 200

Cash 101 200
to record the payment of freight charges

8 accounts payable 201 300

PURCHASE RETURNS AND ALLOWANCES 405 300
to record the returned merchandise

11 Accounts Payable 201 15,600

PURCHASE DISCOUNT 406 312
Cash 101 15,288
to record the payment made to supplier

13 Cash 101 14,896

Sales Discount 402 304
Accounts Receivable 102 15,200
to record the cash collection from customer

14 PURCHASES 404 14,400

Cash 101 14,400
to record the acquisition of merchandise for cash

15 Salaries 506 1,500

 Cash 101 1,500
to record the payment of salaries

16 Cash 101 12,000

Notes Payable 202 12,000
to record the issuance of promissory note to the bank

17 Cash 101 500

PURCHASE RETURNS AND ALLOWANCES 405 500
to record the cash refund from returned merchandise

18 PURCHASES 404 14,200

Accounts Payable 201 14,200
to record the merchandise purchased on account

20 FREIGHT IN 503 700

Cash 101 700
to record the payment of freight charges

23 Cash 101 16,400

Sales 401 16,400
to record the sale of merchandise for cash

26 PURCHASES 404 12,300

Cash 101 12,300
to record the acquisition of merchandise for cash

28 Accounts Payable 201 9,000

Cash 101 9,000
to record the partial payment to supplier

29 lopez, Drawings 302 2,008

Cash 101 2,008
to record the cash withdrawal of the owner

29 Sales Return & Allowances 403 900

Cash 101 900
to record cash refund to customer

30 Accounts Receivable 102 13,700

Sales 401 13,700
to record the sale of merchandise on account

30 Advertising 503 1,000

Utilities 504 400
Rent 505 3,500
Salaries 506 1,500
 Cash 101 6,400
to record the payment of various expenses
Nov. 1 Mr. Ang Hard decided to invest PHP400,000 in this business. He deposited the amount to Farm Bank.

Nov. 2 The owner purchased equipment unit from XY Company on cash to be used for the
business amounting to PHP15,000.

Nov. 3 Purchased supplies for cash, PHP3,000

Nov. 4 Purchased 180 units of merchandise worth PHP180,000 on account with credit terms 2/10. n/30.

Nov. 7 Sold 60 units of merchandise to the customer on account amounting PHP80,000 with terms 2/10, n/30

Nov. 9 Mr. Ang Hard delivered the merchandise to the customer with the cost of PHP3,000 FOB destination

Nov. 12 Mr. Ang Hard returned the 10 units of deffected merchandise to the supplier.

Nov. 14 Made payment to the supplier for merchandise purchased on Nov. 4

Nov. 17 Collected payments from customer on account from the Nov. 7 transaction.

Nov. 18 Purchased merchandise on cash basis PHP100,000

Nov. 19 Paid the salaries of the employee PHP4,000

Nov. 20 Mr. Ang Hard borrows PHP50,000 and issue a promissory note to the bank.

Nov. 21 Received PHP3,000 cash refund from the returned merchandise

Nov. 22 Purchased merchandise worth PHP50,000 on account.

Nov. 24 Mr. Ang Hard paid frieght charges for the purchased of merchandise worth PHP2,000

Nov. 25 Sold the PHP65,000 worth of merchandise for PHP70,000 cash to the customer.

Nov. 27 Purchased merchandise on cash PHP20,000

Nov. 28 Mr. Ang Hard made a partial payment to the supplier PHP25,000 cash.

Nov. 29 The owner withdraw PHP3,000 for personal use.

Nov. 29 Made a cash refund to customer PHP3,000

Nov. 30 Paid the following expenses: Advertising PHP2,000, Utilities PHP1,000, Rent PHP3,000, and Salaries PHP4,000
s 2/10, n/30
Salaries PHP4,000
CASH
Balance
Date Item Ref Debit Credit
Debit Credit
November 1 Investment f GJ-1 39,000 39,000
2 Payment-EQUIPMENT i GJ-1 10,000 29,000
3 Payment-SUPPLIES o GJ-1 700 28,300
5 Payment-FREIGT o GJ-1 200 28,100
11 Payment-SUPPLIER o GJ-1 15,288 12,812
13 Collection o GJ-1 14,896 27,708
14 Payment-SUPPLIER o GJ-1 14,400 13,308
15 Payment-SALARIES o GJ-1 1,500 11,808
16 Borrowing f GJ-1 12,000 23,808
17 Refund o GJ-1 500 24,308
20 Payment-REFUND o GJ-1 700 23,608
23 CASH SALE o GJ-1 16,400 40,008
26 Payment-SUPPLIER o GJ-1 12,300 27,708
27 Payment-SUPPLIER o GJ-1 9,000 18,708
29 Drawing f GJ-1 2,008 16,700
29 Refund o GJ-1 900 15,800
30 Payment-EXPENSES o GJ-1 6,400 9,400

ACCOUNTS RECEIVABLE
Balance
Date Item Ref Debit Credit
Debit Credit
November 4 Credit Sales GJ-1 15,200 15,200
13 Collection GJ-1 15,200 0
30 Credit Sales GJ-1 13,700 13,700

MERCHANDISE INVENTORY
Balance
Date Item Ref Debit Credit
Debit Credit
November 30 SET UP MERCHANDISE INVENTOR GJ-2 25,000 25,000

SUPPLIES
Balance
Date Item Ref Debit Credit
Debit Credit
November 3 Purchase GJ-1 700 700

EQUIPMENT
Balance
Date Item Ref Debit Credit
Debit Credit
November 2 Purchase GJ-1 10,000 10,000

ACCOUNTS PAYABLE
 Balance
Date Item Ref Debit Credit
Debit Credit
November 2 Credit Purchases GJ-1 15,900 15,900
8 Purchase Return GJ-1 300 15,600
11 Payment to supplier GJ-1 15,600 0
18 Credit Purchases GJ-1 14,200 14,200
28 Partial payment GJ-1 9,000 5,200

NOTES PAYABLE
Balance
Date Item Ref Debit Credit
Debit Credit
November 16 Borrowing GJ-1 12,000 12,000

TIGAS, CAPITAL
Balance
Date Item Ref Debit Credit
Debit Credit
November 1 Investment GJ-1 39,000 39,000
30 Closing of Income S. GJ-2 4,608 43,608
30 Closing of drawing GJ-2 2,008 41,600

TIGAS, DRAWINGS
Balance
Date Item Ref Debit Credit
Debit Credit
November 29 Withdrawal GJ-1 2,008 2,008
30 Closing of drawing GJ-2 2,008 0

SALES
Balance
Date Item Ref Debit Credit
Debit Credit
November 4 Credit Sales GJ-1 15,200 15,200
23 Cash Sales GJ-1 16,400 31,600
30 Credit Sales GJ-1 13,700 45,300
30 Closing of Sales GJ-2 45,300 0

SALE DISCOUNT
Balance
Date Item Ref Debit Credit
Debit Credit
November 13 Sales Discount GJ-1 304 304
30 Closing of discount GJ-2 304 0

SALES RETURN & ALLOWANCES

Balance
Date Item Ref Debit Credit
Debit Credit
November 29 Sales Return GJ-1 900 900
30 Closing of SRA GJ-2 900 0
PURCHASES
Balance
Date Item Ref Debit Credit
Debit Credit
November 2 Credit Purchase GJ-1 15,900 15,900
14 Cash Purchase GJ-1 14,400 30,300
18 Credit Purchase GJ-1 14,200 44,500
26 Cash Purchase GJ-1 12,300 56,800
30 Closing of PURCHASE ACCOUNT GJ-2 56,800 0

PURCHASE DISCOUNT
Balance
Date Item Ref Debit Credit
Debit Credit
November 11 payment GJ-1 312 312
30 Closing of PURCHASE DISCOUNT GJ-2 312 0

PURCHASE RETURNS AND ALLOWANCES

Balance
Date Item Ref Debit Credit
Debit Credit
November 8 PURCHASE RETURN GJ-1 300 300
17 PURCHASE ALLOWANCES GJ-1 500 800
30 Closing of PURCHASE RETURNS GJ-2 800 0

FREIGHT IN
Balance
Date Item Ref Debit Credit
Debit Credit
November 20 FREIGHT CHARGE GJ-1 700 700
30 Closing of PURCHASE RETURNS GJ-2 700 0

FREIGHT OUT
Balance
Date Item Ref Debit Credit
Debit Credit
November 5 Freight charges GJ-1 200 200
30 Closing of freight GJ-2 200 0

SALARIES
Balance
Date Item Ref Debit Credit
Debit Credit
November 15 Payment GJ-1 1,500 1,500
30 Payment GJ-1 1,500 3,000
30 Closing of salaries GJ-2 3,000 0

RENT
Balance
Date Item Ref Debit Credit
 Date Item Ref Debit Credit
Debit Credit
November 30 Payment GJ-1 3,500 3,500
30 Closing of rent GJ-2 3,500 0

ADVERTISING
Balance
Date Item Ref Debit Credit
Debit Credit
November 30 Payment GJ-1 1,000 1,000
30 Closing of adv GJ-2 1,000 0

UTILITIES
Balance
Date Item Ref Debit Credit
Debit Credit
November 30 Payment GJ-1 400 400
30 Closing of utilities GJ-2 400 0

INCOME SUMMARY
Balance
Date Item Ref Debit Credit
Debit Credit
November 30 Closing of Sales GJ-2 45,300 0 45,300
30 Closing of Expenses GJ-2 40,692 40,692 4,608
30 Closing of Income S GJ-2 4,608 0
 Investment
Payment
Collection
Borrowing
Credit Purchases
Cost of Goods Sold
Purchase Return
Purchase Discount
Cash Purchases
Refund
Drawing
Credit Sales
Freight Charges
Payment to supplier
Partial payment
Withdrawal
Sales Return
Cash Sales
Nov. 14 Made payment to the supplier for merchandise purchased on Nov. 4

Nov. 12 Mr. Ang Hard returned the 10 units of deffected merchandise to the supplier.
Nov. 21 Received PHP3,000 cash refund from the returned merchandise

Nov. 12 Mr. Ang Hard returned the 10 units of deffected merchandise to the supplier.
BEG INVTY 0
ADD: PURCHASES 56800
LESS P. DISC 312
PRA 800 1,112
NET PURCHASES 55,688
ADD: FREIGHT IN 700
TGAS 56,388
LESS: INVTY END 25000
COST OF GOODS SOLD 31,388
 COMPANY
UNADJUSTED TRIAL BALANCE
November 30, 2016

Ref. Account Titles Debit Credit

CASH 9,400
ACCOUNTS RECEIVABLE 13,700
SUPPLIES 700
EQUIPMENT 10,000
ACCOUNTS PAYABLE 5,200
NOTES PAYABLE 12,000
TIGAS, CAPITAL 39,000
TIGAS, DRAWINGS 2,008
SALES 45,300
SALES RETURN & ALLOWANCES 900
SALE DISCOUNT 304
PURCHASES 56,800
PURCHASE DISCOUNT 312
PURCHASE RETURNS AND ALLOWANCES 800
FREIGHT IN 700
FREIGHT OUT 200
SALARIES 3,000
RENT 3,500
ADVERTISING 1,000
UTILITIES 400
TOTAL 102,612 102,612
 COMPANY
CASH FLOW STATEMENT
for the month ended April 30

CASH FLOW FROM OPERATING ACTIVITIES

PAYMENT TO SUPPLIER 50988.00 -50,988.00
PAYMENT OF EXPENSES 8,800 - 8,800.00
CASH REFUND 500 500.00
REFUND TO CUSTOMER 1,600 -1600.00
COLLECTION 14,896 14,896.00
SALES PROCEEDS 16,400 16,400.00
TOTAL CASH OUTFLOW FROM OPERATING ACTIVITIES - 29,592.00

CASH FLOW FROM INVESTING ACTIVITIES

PAYMENT 10,000 -10000.00
TOTAL CASH OUTFLOW FROM INVESTING ACTIVITIES -10000.00

CASH FLOW FROM FINANCING ACTIVITIES

INVESTMENT 39,000 39,000.00
DRAWINGS 2,008 - 2,008.00
BORROWINGS 12,000 12,000.00
TOTAL CASH INFLOW FROM FINANCING ACT. 48,992.00

TOTAL CASH INFLOW 9,400.00

 COMPANY
STATEMENT OF PERFORMANCE
for the month ended November 30, 2016

SALES 45,300
Less:
SALES RETURN & ALLOWANCES 900
SALE DISCOUNT 304 1,204
NET SALES 44,096
Less:
COST OF GOODS SOLD
PURCHASES 56,800
LESS: PURCHASE DISCOUNT 312
PURCHASE RETURN AND ALLOWANCES 800 (1,112)
ADD: FREIGHT IN 700
TOTAL GOODS AVAILABLE FOR SALE 56,388
LESS: MERCHANDISE INVENTORY, END 25,000
TOTAL COST OF GOODS SOLD 31,388
GROSS PROFIT 12,708
Less:
EXPENSES
FREIGHT OUT 200
SALARIES 3,000
RENT 3,500
ADVERTISING 1,000
UTILITIES 400 8,100
NET PROFIT 4,608
 COMPANY
STATEMENT OF CHANGES IN EQUITY
for the month ended November 30, 2016

Capital Beginning 39,000

Add: Additional Investment 0
Net Income 4,608 4,608
Total 43,608
Less: Drawings 2,008
Capital Ending 41,600
 COMPANY
STATEMENT OF FINANCIAL POSITION
November 30, 2016

ASSETS
Current Assets
CASH 9,400
ACCOUNTS RECEIVABLE 13,700
MERCHANDISE INVENTORY 25,000
SUPPLIES 700
Total Current Assets 48,800
Noncurrent Assets
EQUIPMENT 10,000
TOTAL ASSETS 58,800
LIABILITIES AND EQUITY
ACCOUNTS PAYABLE 5,200
NOTES PAYABLE 12,000
Total Liabilities 17,200

TIGAS, CAPITAL 41,600

TOTAL LIABILITIES AND EQUITY 58,800
CLOSING JOURNAL ENTRIES - GJ-2
Date Account Titles and Explanations Ref Debit Credit
leonard aren
November 30 Sales 401 45,300 PLEASE INDI
Income Summary 45,300 ACCOUNT CO
to record closing entries for sales

30 Income Summary 40,692

PURCHASE DISCOUNT 406 312
PURCHASE RETURNS AND ALLOWANCES 405 800
MERCHANDISE INVENTORY (ENDING) 103 25,000
SALES RETURN & ALLOWANCES 406 900
SALE DISCOUNT 402 304
PURCHASES 404 56,800
FREIGHT IN 503 700
FREIGHT OUT 502 200
SALARIES 506 3,000
RENT 505 3,500
ADVERTISING 503 1,000
UTILITIES 504 400
to record closing entries for cost and expenses
30 Income Summary 4,608
TIGAS, CAPITAL 301 4,608
to record closing entries for Income Summary

30 TIGAS, CAPITAL 301 2,008

TIGAS, DRAWINGS 302 2,008
to record closing entries for drawings
leonard arenas:
PLEASE INDICATE THE
ACCOUNT CODE

66,804
26,112
40,692
 COMPANY
POST CLOSING TRIAL BALANCE
November 30, 2016

Ref. Account Titles Debit Credit

101 CASH 9,400
102 ACCOUNTS RECEIVABLE 13,700
103 MERCHANDISE INVENTORY 25,000
104 SUPPLIES 700
105 EQUIPMENT 10,000
201 ACCOUNTS PAYABLE 5,200
202 NOTES PAYABLE 12,000
301 TIGAS, CAPITAL 41,600
Total 58,800 58,800