The Dec.

31, 2020 post-closing trial balance for the Ricardo Pangan Company follows:
Ricardo Pangan Company
Post-Closing Trial balance
Dec. 31, 2020

110 Cash P 240,000

120 Accounts Receivable 210,000
130 Merchandise inventories 730,000
140 Prepaid Rent 90,000
150 Office Supplies 160,000
160 Office Equipment 1,000,000
165 Accumulated depreciation P 250,000
210 Notes Payable 400,000
220 Accounts payable 130,000
230 Salaries payable
310 Pangan Capital 1,650,000
320 Pangan, Withdrawal
330 Income Summary
410 Sales
420 Sales Returns and allowances
430 Sales Discounts
510 Purchases
520 Sales Returns and allowances
530 Purchases Discounts
540 Transportation In
610 Salaries Expense
620 Rent Expense
630 Office Supplies Expense
640 Depreciation Expense
650 Interest Expense
_______________________________
P2,430,000 P2,430,0000

Accounts Receivable of P210,000 is related to a sale to R. Loyola on Dec. 28, 2020. All credit sales are 2/10. n/30.
The accounts payable balance of P130,000 is attributable to a purchase on Dec. 29, 2020 from E. Samonte
Company. All credit purchases are 3/10, n/30.

During the month of Jan. 2020, the following transactions were completed.
Jan. 2 Sold merchandise on credit for a Bandonell, P240,000. FOB Shipping Point, Freight Collect, P 1000.
3 Purchased merchandise on account from T. Arenas Company, P90,000. 5%, 2/10, n30
4 Collected amount due from Dec. 28 sales to R. Loyola less discounts.
5 Sold merchandise for cash, P430,000.
7 Paid amount due to E. Samonte Company for the purchase of Dec. 29, 2020 less discounts. Issued
check no. 83.
8 Sold merchandise on accounts to G. Savidal, P310,000. 1/15, n45.
9 Returned merchandise purchased from T. Arenas Company, P10,000. FOB Shipping Point, Freight
Prepaid, P 1000.
10 Collected amount due from B. Bandonell less discounts.
11 Purchased merchandise on account from I. Veray Company, P120,000. 10,5, 2/10, n30.
11 Paid T. Arenas Company amount due less returns and discount.
12 Purchased merchandise for cash, P70,000.
13 Sold merchandise on account to M. Cerda, P130,000. 10%, 1/15, n45.
14 Paid interest on the note payable, P10,000.
15 Paid salaries P80,000.
 17 Purchased merchandise on account from E. Samonte Company. P190,000 FOB Destination, Freight
Prepaid, P 2000. 2/10, n30.
18 Sold Merchandise on account to R. Loyola P460,000. FOB Destination, Freight Collect, P 1000. 1, 15,
n45.
19 Pangan withdrew P100,000 from the business. Issued check no. 88.
21 Acquired office supplie, P40,000. Issued check no. 89.
22 Returned office supplies purchased on Jan 21.
22 Collected amount due from M. Cerda less discounts.
23 Sold Merchandise on credit to B. Bandonell, P110,000. FOB Destination, Freight Prepaid, P 1500.
24 Received returned merchandise from. G. Sevidal, P30,000.
25 received amount due from G. Sevidal on the sale less returns.
25 Purchased merchandise on account from A. Braganza Company, P340,000. FOB Destination, Freight
Prepaid, P 500. 2/10, n30.
26 Paid P90,000 to E. Samonte Company In partial payment on accounts.
27 received P170,000 loan from the first Morayta Bank and issued a note payable.
28 Purchased merchandise on account from L. Viray Company, P270,000. FOB Shipping Point, Freight
Collect. 10%, 2/10, n30.
29 Sold merchandise on account to M. Cerda, P370,000. FOB Shipping Point, Freight Prepaid. 1/10,
n30.
30 Paid E. Samonte in full.
30 Sold Merchandise for cash, P 810,000.

Additional Information

Prepare the following adjusting entries in the worksheets.

a. Prepaid rent of P30,000. Has expired.
b. Office supplies at month end amounted to P70,000.
c. Monthly depreciation on the office equipment amounted to P10,000
d. Salaries of P90,000 have accrued.
e. The ending inventory amounted to P470,000.