ACTIVITY 1 PROBLEM SOLVING Directions: Read and analyze the problem. Journalize and post the following transactions of the merchandising business. After posting to the general and subsidiary ledgers, prepare the trial balance. The transactions of Karen Carpenter for December 2018 were the following: Began business with the following investments: December ! Cash P150,000 Merchandise 40,000 Furniture 50,000 - Paid rent for December. P5.000. Check No. 1001
ACTIVITY 1 PROBLEM SOLVING Directions: Read and analyze the problem. Journalize and post the following transactions of the merchandising business. After posting to the general and subsidiary ledgers, prepare the trial balance. The transactions of Karen Carpenter for December 2018 were the following: Began business with the following investments: December ! Cash P150,000 Merchandise 40,000 Furniture 50,000 - Paid rent for December. P5.000. Check No. 1001
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![ACTIVITY 1
PROBLEM SOLVING
Directions: Read and analyze the problem. Journalize and post the following transactions of the
merchandising business. After posting to the general and subsidiary ledgers, prepare the trial balance.
The transactions of Karen Carpenter for December 2018 were the following:
December !
Began business with the following investments:
P1 50,000
40,000
C'ash
Merchandise
Furniture
50.000
Paid rent for December. P5,000. Check No. 1001
Purchased a delivery truck from Dimasalang Motor Co. for cash, P30,000. Check No. 1002
Sold merchandise for cash to R. Castro, P2,500.
Purchased merchandise for cash from Henry and Sons, P5,700. Check No. 1003
Sold merchandise on account to R. Castro, P50,000. Terms: 2/10, n/30. Invoice No. 2001
Paid general expenses, P7,200. Check No. 1004
Purchased merchandise on account from Danilo Liwanag, P75,000. Terms: 2/10, n/30.
Ms. Carpenie withdrew casih for personal use. P5,000. Check No. 1005
Sold on account to Rey Aloña, P5,000 Terms: n/10. Invoice No. 2002
Purchased merchandise on account from C'esar Santos, P30,000. Terms: n/60.
Received ful! payment in cash from R. Castro for his account on December 10.
- Sold merchandise on account to Divina del Agua, P24,000. Terms: 2/10, n/30. Invoice No.
10
12
14
15
17
19
20
23
2003
Paid in full the account due to Danilo Liwanag on the 14th Check No. 1006
Returned merchandise worth P3,000 to Cesar Santos. Received a credit memo for the
24
26
return.
27 - Received a 30-day non-interest bearing note from Rey Aloña in settlement of his account
on the 17th
Utility expense bills paid, PI,200 Check No. 1007
Received merchandise retumed by Divina del Agua, P2,000.
28
29
30
Wages paid. P5,000. Check No. 1008
Required:
1) Record the transactions using the special journals and general journal. Use the following chart of
accounts:
CODE
ACCOUNT
CODE
ACCOUNT
101
C'ash
451
Sales Discount
Accounts Receivable
452
Sales Returns and Allowances
112
Notes Receivable
510
Purchases
113
Merchandise
551
Purchase Discount
162
Furniture and Fixtures
552
Purchase Returns and Allowances
Delivery Truck
Accounts Payable
Carpenter, Capital
Carpenter, Drawing
Wages Expense
Utilities Expense
Rent Expense
General Expenses
165
520
201
521
301
524
340
525
410
Sales
2) Post to the general and subsidiary ledgers.
3) Prepare a trial balance.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fde6215c9-5136-4ef9-8d04-3f01643da760%2F958ba00c-d009-45f9-b71d-8507dc905dbc%2Fydd104m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ACTIVITY 1
PROBLEM SOLVING
Directions: Read and analyze the problem. Journalize and post the following transactions of the
merchandising business. After posting to the general and subsidiary ledgers, prepare the trial balance.
The transactions of Karen Carpenter for December 2018 were the following:
December !
Began business with the following investments:
P1 50,000
40,000
C'ash
Merchandise
Furniture
50.000
Paid rent for December. P5,000. Check No. 1001
Purchased a delivery truck from Dimasalang Motor Co. for cash, P30,000. Check No. 1002
Sold merchandise for cash to R. Castro, P2,500.
Purchased merchandise for cash from Henry and Sons, P5,700. Check No. 1003
Sold merchandise on account to R. Castro, P50,000. Terms: 2/10, n/30. Invoice No. 2001
Paid general expenses, P7,200. Check No. 1004
Purchased merchandise on account from Danilo Liwanag, P75,000. Terms: 2/10, n/30.
Ms. Carpenie withdrew casih for personal use. P5,000. Check No. 1005
Sold on account to Rey Aloña, P5,000 Terms: n/10. Invoice No. 2002
Purchased merchandise on account from C'esar Santos, P30,000. Terms: n/60.
Received ful! payment in cash from R. Castro for his account on December 10.
- Sold merchandise on account to Divina del Agua, P24,000. Terms: 2/10, n/30. Invoice No.
10
12
14
15
17
19
20
23
2003
Paid in full the account due to Danilo Liwanag on the 14th Check No. 1006
Returned merchandise worth P3,000 to Cesar Santos. Received a credit memo for the
24
26
return.
27 - Received a 30-day non-interest bearing note from Rey Aloña in settlement of his account
on the 17th
Utility expense bills paid, PI,200 Check No. 1007
Received merchandise retumed by Divina del Agua, P2,000.
28
29
30
Wages paid. P5,000. Check No. 1008
Required:
1) Record the transactions using the special journals and general journal. Use the following chart of
accounts:
CODE
ACCOUNT
CODE
ACCOUNT
101
C'ash
451
Sales Discount
Accounts Receivable
452
Sales Returns and Allowances
112
Notes Receivable
510
Purchases
113
Merchandise
551
Purchase Discount
162
Furniture and Fixtures
552
Purchase Returns and Allowances
Delivery Truck
Accounts Payable
Carpenter, Capital
Carpenter, Drawing
Wages Expense
Utilities Expense
Rent Expense
General Expenses
165
520
201
521
301
524
340
525
410
Sales
2) Post to the general and subsidiary ledgers.
3) Prepare a trial balance.
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