10.6 - PROBLEM On February, 2015, Angel Merchandising Feb. 1 15 20 18 25 28 30 had the following transactions: chandise on credit from the following suppliers; Purchased yarious mer ; ie Greater Marketing, P'180,000. Terms: 5, 2/10, 2/30. FO.B. shipping yi, Freight prepaid, 1,500. Smaller Distributor, 200,000. Terms: 15/5, 5/10, 0/30. ROB, point. Freight prepaid, 2,000. Paid purchases made on January 27, 40,000. Terms: 2/10, n/30. : ; : tic Received debit memo amounting to 2,000 from customer who purchased ey 30 for a total amount of 43,000. Terms: 10, 10/10, 5/15, 1/30, Shipping Januat Issued debit memo to Greater Marketing, 2,000. Received credit memo from Smaller Distribution, 1,500. Paid the supplies purchased last January 25, 2015 amounting to 4,000, Sold merchandise to the following customers: * Cash basis, P60,000. On account with 10%, 30-day notes, ®'50,000. Ferms: 5, 2/10, n/30. ROB. destination, freight collect, 1,400. + Onopen account, 60,000. Terms 10/15, 5/20, n/30. FOB destination, freight prepaid, 2,000. F + ‘The businiess maintains a gross profit of 20% on all sales Paid utilities incurred on January, 2015, ?°5,000. Received full payment from Smaller Distributor. Paid the salaries of the staff for the month, 24,000. Paid the 3-month cash advance of one worker, P'18,000. Asset methods uel Sold merchandise on cash to Brown Merchandising, 35,000. Freight pis, 1,800. Received full payment of the account on February 8 sale Refunded Brown for merchandise return, 1,200. Received full payment of the notes, including interest, of February 8. Sold merchandise to various customers: * Cash basis, 30,000, Freight paid, 1,000. r * On account, 50,000: Terms: 2/10, n/30. RO.B. shipping point F# prepaid, 1,400. 2 ae «gy igvento® Required: Record the transactions in a two-column general journal under the following systems: 1. Perpetual inventory system 2. Periodic inventory system Scanned with CamScannero- PROBLEM jocelyn, opened a merchandising aaa business on June 1, 2015 with the following Mende *500.000 Building 450,000 Furniture and fixtures soe The land is mortgaged with First Commercial Bank for 200,000 which will be assumed by the see he fllowing' transactions Occurred during the month of June: June 1 - Sold merchandise on account to Delta Company, EOB. shipping point, freight prepaid, P'1,500, 2 = Sold merchandise on account to Zepa Company, 15,000. Terms 1/15, 2/30, EOLB. destination, freight collect, 7600. P25,000. Terms, 2/10. n/30, 3 ~ Sold merchandise for cash, 5,000. Freight paid amounted to 400. © — Issued a credit memo to Delta Company for merchandise returned amounting to 2,000. 8 - Purchased merchandise from WW Merchandising amounting to 40,000 on account. Terms 2/10, 0/30, ROB. shipping point, freight prepaid. The transportation cost was 1,200. =. Received a debit memo from Zepa Company in the amount of 1,500. 10 - Collected the full amount from Delta Company in settlement of the account on june 1. is Reel the full amount from Zepa Company as payment of their account on e 2. 1s) = Te account of WW Merchandising was debited amounting to 2,000 on account of returned merchandise. 18 — Paid the following operating expenses: i 15,000 © Salaries for the month, ? 15, . ae supplies, 3,000 (expense method) + Repairsand ‘maintenance, ¥ 1,200 «_ Utilities expense, 2,500 = id in full the account with ‘WW Merchandising. sae me GG Company on account, P'35,000. Terms 2/10,n/30, FOB. destination, Bi ortation cost paid amounted to 2,000. ee The ras rndise on account to HHJ Company amounting to 30,000, Terms 29 — Sold mercl n/30, FOB. shipping point, freight collect. 2/10, n/30, FO-B- Required 1. Record the trans 2. Post to the ledger 3. Prepare a trial balance journal : tion in a two-column journ: ct CHAPTER 10 + ACCOUNTING FOR MERCHANDISING | 339 Scanned with CamScanner10.8 —- PROBLEM NICANOR II Trading, owned and managed by Nicanor II, had the following transaction in November, 2015: Nov. 1 12 15 18 20 25 30 Required Invested the following in the business: Cash on hand 600,000 Merchandise 200,000 150,000 Store equipment Purchased merchandise from High Supplier on credit, P'500,000. Terms: 10,5 2/10, n/30. Freight paid, 2,000. 5, Deposited 400,000 to the bank. Returned merchandise amounting to 2,000 to High Supplier because of won, specification. High Supplier immediately replaced the returned merchandise Paid the followingexpenses from cash in the vault: Rent for three months 18,000 ‘Taxes and licenses 6,000 Advertising for six months 24,000 Store supplies 10,000 ‘The business uses the asset method of recording prepayments. Sold to various customers as follows: * Medium Trading, ¥ 80,000. Terms 5/10, n/30. RO.B. Shipping point, Freight paid, *1,500. + Low Point Company, 120,000. Terms: 10, 5/10, n/30. EO.B Destination. Freight paid, 2,000. Received credit memo from High Supplier, 5,000. Received 60,000 partial payment from Low Point Company. Cash was deposited immediately. Paid High Supplier, ® 250,000 Received debit memo from Medium Trading, ¥4,000. Sold merchandise to various customer for cash, 120,000. The collection ws immediately deposited in the bank. Paid in full High Supplier. ae Received P'25,000 from as partial payment of the account. Cash was immediate deposited. Received full payment from Low Point Company. Sold merchandise on account, 40,000. 1. Record the transactions in a two-column journal 2. Post to the ledger _ 3. Prepare a trial balance Scanned with CamScanner097 PROBLEM angel opened a merchandising business on Febru; transactions: Feb: 1 15 20 24 26 30 Required 1. Record the transaction ary 2015 with the following Invested the following items: Cash on hand 400,000 Merchandise inventory 200,000 Bought office furni i desitiariant Tniture on account, 60,000. Terms: 2/10, n/30. F0.B. shipping Sold merchandise on cash, 60,000. Bought office equipment on account, 40,000. Terms: 2/10,n/30. EO.B shipping point. Freight paid, 2,000. Purchased merchandise from Flowing Trading on account, 100,000. Terms: 10, 5/10, 1/30. FO.B. shipping point. Freight prepaid, 1,000. Sold merchandise for cash, 50,000. Paid the office furniture and office equipment in full. Send debit memo to Flowing Trading, 2,000. Paid the following (asset method is used) ‘Taxes and licenses, 5,000 Advertising for 4 months, 20,000 Rent expenses for 3 months, 18,000 Paid one half of the account from Flowing Trading. Paid the one-half salary of the worker, 20,000. 2 Sold merchandise on account, 750,000 to Stable Merchandising, Terms: 1 2/10, n/30. FOB. shiping point ee prepaid, 2,000. a as fo Stable Merchandising, P3000. Received debit r account, 30,000 to Abundant Merchandising, 20.000. Sold merchandise °RO.B. destination, Freight paid, P 1,000. Terms: 1/10; ut 0 as partial payment of Stable Merchandising. ee half of the salary ofthe worker, 20,000. al \e ina two-column journal S 2. Post to the ledger 3. Prepare a trial balance Scanned with CamScanner10.10 - PROBLEM On May 1, 015, Izzy opened a merchandising business with the following investments Cash in Bank 400,000 Merchandise inventory 300,000 May 1 - Bought office equipment on account, 100,000. Terms, 2/10; n/30. 2° — Sold merchandise on cash, 80,000. Cash was deposited immediately, = 4 Paid the following expenses (expense method): — Taxes and licenses 8,000 — Advertising expense for 3 months 6,000 — Rent expenses for 2 months 8,000 5 = Purchased merchandise on account, 50,000. Terms: 2/10, n/30, FO.B. shipping point. Freight collect, 1,000. 10 — Sold merchandise on account to Green Merchandising, 60,000. Terms: 2/10, n/30. Freight paid, 2,000. 11 - Paid in full the office equipment. 12. ~ Issued debit memo on May 5 purchases, 2,000. "13 -_ Izzy withdrew for personal use, 10,000 — «Issued credit memo to Green Merchandising, 3,000. 15 — Paid in full the account on May 5. - Paid the salary of the worker, 12,000. 18 ~ Collected in full the account of Green Merchandising, 20 - Purchased store furniture and fixtures on account, 60,000. Terms 2/10, n/30. 25 — Received billing on utilities, ® 8,000. 28 - Paid in full the store furniture and fixtures bought last May 20. 30 = Paid the other half salary of the worker, 12,000 - Sold merchandise on account, F 30,000. Terms: 10,2/10,n/30. FO.B. destination. Freight paid, 1,000. e - Purchase various merchandise from a supplier on account, 80,000. ‘Terms: 10, 5, 2/10, n/30. RO.B shipping point. Freight prepaid, 1,500. Required: 1, Record the ee . Post to the le iger. 5 Prepare a trial balance ‘ons in a two-column general journal. Scanned with CamScanner