Journalize the following merchandising transactions in the General Journal On July 1, Moonlight Lighting was opened by M. Lopez with a total investment of P 250,000 of which P 50,000 was in the form of candles and lamps and P 200,000 in cash. Succeeding transactions are as follows: Date Transactions July 2 Purchased scented candles from Pax Candles, P 7,500. terms : P 2,500 down, balance 2/10, n30 3 Purchased shell decors from Divi Crafts distributor, P 10,000. Term: 3% eom, n/30, FOB shipping point, freight collect. 4 Freight on shell decors paid in cash P 750 5 Cash sales amounted to P 15,000. 7 Sold to Manuela's Grocery goods costing P 9,000. terms: 4,000 down, balance 2/5, 1/10, n 30 8 Purchased office supplies from Rex bookstore P 1,500. Terms: COD 10 Returned part of the candles purchased from Pax which were found unsatisfactory, P500. 12 A customer returned merchandise and was given a cash refund of P 220. 13 The account of Manuela's was collected. 15 Paid salaries in cash to office clerk, P 2,500, and store helper, P 3,500. 17 Delivered goods to Kulasa Scents, P 14,000. Terms, COD 18 Paid Divi Crafts P 5,000 19 Maria Pena, a friend, bought goods with a list price of P 5,500. terms: 1% and 2% trade discounts, balance 2/10, n/30. FOB shipping point. Freight prepaid for Pena P 500. 20 Paid Pax candles in full of account. 25 Collected 20% from Maria Pena 31 Paid 3% percentage tax on sales. Ending inventory on July 31 is 12,000.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Journalize the following merchandising transactions in the General Journal
On July 1, Moonlight Lighting was opened by M. Lopez with a total investment of P 250,000 of which P 50,000 was in the form of candles and lamps and P 200,000 in cash.
Succeeding transactions are as follows:
| Date | Transactions |
| July 2 | Purchased scented candles from Pax Candles, P 7,500. terms : P 2,500 down, balance 2/10, n30 |
| 3 | Purchased shell decors from Divi Crafts distributor, P 10,000. Term: 3% eom, n/30, FOB shipping point, freight collect. |
| 4 | Freight on shell decors paid in cash P 750 |
| 5 | Cash sales amounted to P 15,000. |
| 7 | Sold to Manuela's Grocery goods costing P 9,000. terms: 4,000 down, balance 2/5, 1/10, n 30 |
| 8 | Purchased office supplies from Rex bookstore P 1,500. Terms: COD |
| 10 | Returned part of the candles purchased from Pax which were found unsatisfactory, P500. |
| 12 | A customer returned merchandise and was given a cash refund of P 220. |
| 13 | The account of Manuela's was collected. |
| 15 | Paid salaries in cash to office clerk, P 2,500, and store helper, P 3,500. |
| 17 | Delivered goods to Kulasa Scents, P 14,000. Terms, COD |
| 18 | Paid Divi Crafts P 5,000 |
| 19 | Maria Pena, a friend, bought goods with a list price of P 5,500. terms: 1% and 2% trade discounts, balance 2/10, n/30. FOB shipping point. Freight prepaid for Pena P 500. |
| 20 | Paid Pax candles in full of account. |
| 25 | Collected 20% from Maria Pena |
| 31 | Paid 3% percentage tax on sales. |
Ending inventory on July 31 is 12,000.
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