ASSIGNMENT 05: JOURNAL ENTRIES FOR MERCHANDISING BUSINESS Transactions for the 1" vear 200x: Jan 1 Owner invested P1,000,000 cash Feb 1 Purchased fumiture worth P120,000 with 8 years useful life and no salvage value Feb 12 Purchases on account, P600,000; terms: 2/20; n/30. FOB shipping point, freight prepaid, P2,000. Mar 2 Sold merchandise on account, P900,000; terms 10; 5/15, n30. FOB shipping point, freight prepaid, P25,00 Mar 7 Collected 80% of receivable on March 2 Mar 12 Paid purchases made on Feb. 12 Mar 23 Received sales returns, P25,000 from sales on Mar 2 Apr 2 Collected remaining receivable on Mar 2. Dec. 30 Paid Rent, PS0,000 and utilities, P16,000 Accrued salary, P120,000. Dec. 31 Transactions for the 2d vear 200v: Jan. 15 Paid accrued salary of 200x Apr 27 Purchased goods on account PS80,000. FOB destination, freight prepaid P14,000 Мay 22 Sold goods for cash to various customers, P450,000 Νov 26 Sold goods on account, P560,000. FOB, destination, freight collect, P36,000 Dec 30 Paid Rent P80,000 and utilities, P12,000 Dec 31 Accrued salary, P140,000. Required: Journalize the above transactions (regular, adjusting and closing entries) using PERPETUAL METHOD (Assume that cost of sales is 60% of the invoice price).

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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ASSIGNMENT 05: JOURNAL ENTRIES FOR MERCHANDISING BUSINESS
Transactions for the 1" vear 200x:
Jan 1
Owner invested P1,000,000 cash
Feb 1
Purchased furniture worth P120,000 with 8 years useful life and no salvage value
Feb 12
Purchases on account, P60000; terms: 2/20; n/30. FOB shipping point, freight prepaid, P2,000.
Mar 2
Sold merchandise on account, P900,000; terms 10; 5/15, n/30. FOB shipping point, freight prepaid, P25,000
Mar 7
Collected 80% of receivable on March 2
Mar 12
Paid purchases made on Feb. 12
Mar 23
Received sales returns, P25,000 from sales on Mar 2
Apr 2
Collected remaining receivable on Mar 2.
Dec. 30
Paid Rent, P80,000 and utilities, P16,000
Dec. 31
Accrued salary, P120,000.
Transactions for the 2ad vear 200v:
Jan. 15
Paid accrued salary of 200x
Apr 27
Purchased goods on account P580,000. FOB destination, freight prepaid P14,000
May 22
Sold goods for cash to various customers, P450,000
Nov 26
Sold goods on account, P560,000. FOB, destination, freight collect, P36,000
Dec 30
Paid Rent P80,000 and utilities, P12,000
Accrued salary, P140,000.
Dec 31
Required: Journalize the above transactions (regular, adjusting and closing entries) using PERPETUAL METHOD
(Assume that cost of sales is 60% of the invoice price).
Transcribed Image Text:ASSIGNMENT 05: JOURNAL ENTRIES FOR MERCHANDISING BUSINESS Transactions for the 1" vear 200x: Jan 1 Owner invested P1,000,000 cash Feb 1 Purchased furniture worth P120,000 with 8 years useful life and no salvage value Feb 12 Purchases on account, P60000; terms: 2/20; n/30. FOB shipping point, freight prepaid, P2,000. Mar 2 Sold merchandise on account, P900,000; terms 10; 5/15, n/30. FOB shipping point, freight prepaid, P25,000 Mar 7 Collected 80% of receivable on March 2 Mar 12 Paid purchases made on Feb. 12 Mar 23 Received sales returns, P25,000 from sales on Mar 2 Apr 2 Collected remaining receivable on Mar 2. Dec. 30 Paid Rent, P80,000 and utilities, P16,000 Dec. 31 Accrued salary, P120,000. Transactions for the 2ad vear 200v: Jan. 15 Paid accrued salary of 200x Apr 27 Purchased goods on account P580,000. FOB destination, freight prepaid P14,000 May 22 Sold goods for cash to various customers, P450,000 Nov 26 Sold goods on account, P560,000. FOB, destination, freight collect, P36,000 Dec 30 Paid Rent P80,000 and utilities, P12,000 Accrued salary, P140,000. Dec 31 Required: Journalize the above transactions (regular, adjusting and closing entries) using PERPETUAL METHOD (Assume that cost of sales is 60% of the invoice price).
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