Closing entries in Periodic Inventory system: Chart of Accounts 101- Cash 105- Accounts receivable 110- Merchandise inventory 115- Supplies 130- Equipment 201- Accounts payable 205- Notes payable 301- M. Rojas, Capital 302- M. Rojas, Drawing 401- Sales 405- Sales return and allowances 410- Sales discount 501- Purchases 505- Purchase return and allowances 510- Purchase discount 515- Freight in 601- Salaries expenses 644- Freight out 1-The owner, Mario Rojas invested P 15,000 to his newly opened business. 2 Purchased merchandise on account from National Suppliers, P 8,000 – terms: 2/10, n/30, FOB, Shipping Point – P 220. 4 - Purchased store supplies in cash, P 1,600. 6 - Received credit refund from National Suppliers due to merchandise with defects, P 200. 7 - Sold merchandise on account P 4,400 – terms: 2/10, n/30, FOB Destination – P 110. 10 - Purchased store equipment worth P 18,000, terms: 2/10, n/30. 12 - Paid National Suppliers in full. 13 - Purchased merchandise in cash, P 3,700 14 - Received a cash loan from United Bank on a promissory note of P 15,000. 15 - Received refund from supplier for poor quality merchandise on cash purchase, P 430. 17 - Received collections in full from customer billed on May 7. 18 - Purchased merchandise from PDP Distributors for P 2,500 – terms: 2/10, n/30. 19 - Paid freight on May 18 purchase, P 125. 20 - Paid half the amount due to the store equipment bought on May 10. 21 - The owner withdrew P 3,000 cash for his personal use. 23 - Sold merchandise on account, P 2,400. 25 - Purchased merchandise from CMD Trading, P 2,350 – terms: 2/10, n/30 28 - Paid PDP Distributors in full. 29 - Sold merchandise for cash, P 5,400. FOB, Destination – P250. 30 - Paid the salary of store staff, P 2,000. 31 - Made refunds to cash customers for defective merchandise, P 324. •At the end of May, it was determined that ending inventory was P 8,300.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Closing entries in Periodic Inventory system: Chart of Accounts 101- Cash 105- Accounts receivable 110- Merchandise inventory 115- Supplies 130- Equipment 201- Accounts payable 205- Notes payable 301- M. Rojas, Capital 302- M. Rojas, Drawing 401- Sales 405- Sales return and allowances 410- Sales discount 501- Purchases 505- Purchase return and allowances 510- Purchase discount 515- Freight in 601- Salaries expenses 644- Freight out 1-The owner, Mario Rojas invested P 15,000 to his newly opened business. 2 Purchased merchandise on account from National Suppliers, P 8,000 – terms: 2/10, n/30, FOB, Shipping Point – P 220. 4 - Purchased store supplies in cash, P 1,600. 6 - Received credit refund from National Suppliers due to merchandise with defects, P 200. 7 - Sold merchandise on account P 4,400 – terms: 2/10, n/30, FOB Destination – P 110. 10 - Purchased store equipment worth P 18,000, terms: 2/10, n/30. 12 - Paid National Suppliers in full. 13 - Purchased merchandise in cash, P 3,700 14 - Received a cash loan from United Bank on a promissory note of P 15,000. 15 - Received refund from supplier for poor quality merchandise on cash purchase, P 430. 17 - Received collections in full from customer billed on May 7. 18 - Purchased merchandise from PDP Distributors for P 2,500 – terms: 2/10, n/30. 19 - Paid freight on May 18 purchase, P 125. 20 - Paid half the amount due to the store equipment bought on May 10. 21 - The owner withdrew P 3,000 cash for his personal use. 23 - Sold merchandise on account, P 2,400. 25 - Purchased merchandise from CMD Trading, P 2,350 – terms: 2/10, n/30 28 - Paid PDP Distributors in full. 29 - Sold merchandise for cash, P 5,400. FOB, Destination – P250. 30 - Paid the salary of store staff, P 2,000. 31 - Made refunds to cash customers for defective merchandise, P 324. •At the end of May, it was determined that ending inventory was P 8,300.

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