TEEN DA is a reseller for Teen Apparels. On December 1, 2020.

Da, invested the following on the business:

Cash on Hand 300 000
Merchandise Inventory 350 000
Furniture and Fixtures 90 000
Store Equipment 90 000
Bank Loan Payable- Short Term 500 000

Dec 1 Opened a current account in the bank depositing 50% of the cash on hand
2 Paid for six months rent, P 30 000, 4 months advertising, P 8 000, and store supplies P 12 000
TEEN DA use asset method in recording transactions.
Purchased merchandise on account from TREY DING, P 150 000, Terms 10, 5, 2/10, n30. FOB
Destination, freight prepaid, P 1 200.
3 Sold merchandise to REESE E LER P 120 000. Terms 2/10 n30. FOB shipping point, Freight
Collect, P 1 200. Gross Profit is 40% of sales.
4 Received returned merchandise from REESE E LER at P 1 500
5 Sold merchandise to NAM A LIGYA P 75 000. Terms 2/10 n30, FOB destination. Freight
Prepaid, P 900.
7 Purchased merchandise from PALIT TAN, P 160 000. Terms 5, 2/15, n30 FOB destination.
Freight collect, P 1 200.
8 Issued credit memo to NAM A LIGYA P 3 000
9 Received P 30 000 from REESE E LER as partial payment.
10 Sold merchandise to TINDAHAN Company P 120 000. Terms 5, 2/10, n30. FOB destination.
Freight collect, P 1 000.
12 Received full payment from REESE E LER.
Returned merchandise to TREY DING for damaged merchandise, P 3 000.
15 Paid for monthly salaries, P 25 000, light and water, P 1 500, travelling expense, P 1 000
17 Fully paid TREY DING
18 Received full payment from NAM A LIGYA
19 Sold merchandise to REESE E LER P 120 000. Terms 2/10 , 1/15, n30, FOB shipping point.
Freight collect, P 1 000.
Purchased from BIZ NESS, P 80 000. Terms 2/10, 1/15, n30. FOB destination, freight collect, P 800.
21 Paid for 6 months insurance P 24 000. The company recorded using the expense method.
23 Cash was paid to owner for personal use, P 20 000
25 Received merchandise REESE E LER for damaged merchandise P 2 000
Returned merchandise to BIZ NESS, P 2 500
28 Fully paid to PALIT TAN
30 Received payment form REES E LER, P 60 000 as full payment.
Paid Salaries and staff, P 30 000.

Additional information:
a. Merchandise at December 31, 2020 is P 420 000
b. Unused store supplies, P 2 000
c. Furniture and fixtures was acquired on December 1, 2020 has 6 years estimated useful life with a residual value
of 9 000.
d. Store equipment acquired on December 1, 2020 has estimated useful life of 5 tears without residual value
e. Doubtful accounts expense is 3% of accounts receivable
f. Unpaid taxes and licenses, P 5 000
g. Adjust for other prepayments made this month

Required:
 Perform the complete Accounting Cycle.

***End of Examination***

ACCTG 101 AAG SEBIAL page 1