4.Acquired a service vehicle costing ₱76,000. A payment of ₱25,000 Cash was made and a note payable given for the ₱51,000 remainder payable for 6 equal mont
PERIODIC INVENTORY SYSTEM
Mr. Lopez opened a mini grocery store with business name Lopez Fiesta Mart. Operations began on January 1, 2021, and the following transactions were completed during the month:
1.Mr. Lopez withdrew ₱150,000 from a personal savings account and used it to open a new account in the name of Lopez Fiesta Mart.
2.Bought grocery supplies on account ₱10,700.
4.Acquired a service vehicle costing ₱76,000. A payment of ₱25,000 Cash was made and a note payable given for the ₱51,000 remainder payable for 6 equal monthly installment.
6.Purchased merchandise from Puregold ₱49,500, terms 5/10, 3/20.
7.Paid ₱1,600 delivery charge for January 6 transactions.
8.Paid for three months of advertising and recorded Prepaid Advertising in the amount of ₱6,000.
11.Sold merchandise on account ₱42,000 with 40% mark-up from the inventory cost of ₱30,000, term 2/10, n/30.
12.Paid ₱1,200 freight for January 11 transactions.
14.Returned defective merchandise to Puregold amounting to ₱4,500.
15.Paid salaries, ₱5,600.
16. Signed a promissory note for ₱30,000 loaned amount from Commonwealth Bank.
17. Received returned merchandise from customer ₱3,500.
18. Paid ₱5,700 of the amount owed from the transaction of January 2.
19. Purchase additional groceries from Talavera Supermarket amounting to ₱44,000.
20. Collected full settlement of a customer from January 11 transactions.
24. Paid telephone expense, ₱1,600.
25. Paid building rentals for the month, ₱4,800.
26. Settled accounts to Puregold.
27. ₱41,750 cost of merchandise sold for ₱58,450.
28. Withdrew ₱20,000 from the business.
29. Paid miscellaneous expenses, ₱3,430.
30. Paid the first installment of the note payable on Service Vehicle, ₱8,500.
31. Paid Salaries ₱5,100, net of the following deductions: SSS, ₱380; Pag-IBIG, ₱100; Philhealth, ₱220. The Merchandise
Inventory at the end of the of the month is ₱20,000.
A. Journalize the transactions using the following accounts:
ASSETS: Cash (110);
LIABILITIES: Accounts Payable (210); SSS Payable (220); Pag-IBIG Payable (230); Philhealth Payable (240); Notes Payable (250).
CAPITAL: Lopez, Capital (310); Lopez, Withdrawals (320).
REVENUES: Sales (410); Sales Returns & Allowances (420); Sales Discount (430);
Purchases (510); Freight in (520); Purchase returns and allowances (530); Purchase discounts (540)
EXPENSES: Freight-out (610); Salaries Expense (620); Rent Expense (630) Telephone Expense (640); and Miscellaneous Expense (650).
INCOME SUMMARY (700)
B. Prepare General Ledger
C. Prepare
D. Prepare Statement of Cost of Goods Sold
E. Prepare Income Statement
F. Prepare Statement of Changes in Equity
G. Prepare
H. Prepare Statement of
I. Prepare Closing Entries
J. Prepare Post Closing Trial Balance
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 12 images
