Mr. Lopez opened a mini grocery store with the business name Lopez Fiesta Mart. Operations began on January 1, 2021, and the following transactions were completed during the month:   01 Mr. Lopez withdrew PHP 150,000.00 from a personal savings account and used it to open a new account in the name of Lopez Fiesta Mart. 02 Bought grocery supplies on account PHP 10,700.00. 04 Acquired a service vehicle costing PHP 76,000.00. A payment of PHP 25,000.00 Cash was made and a note payable was given for the PHP 51,000.00 remainder payable for 6 equal monthly installments. 06 Purchased merchandise from Puregold PHP 49,500.00, terms 5/10, 3/20. 07 Paid PHP 1,600.00 delivery charge for January 04 transactions. 08 Paid for three months of advertising and recorded Prepaid Advertising in the amount of PHP 6,000.00 11 Sold merchandise on account PHP 42,000.00 with 40% mark-up from the inventory cost of PHP 30,000.00, term 2/10, n/30. 12 Paid PHP 1,200.00 freight for January 11 transactions. 14 Returned defective merchandise to Puregold amounting to PHP 4,500.00. 15 Paid salaries, PHP 5,600.00. 16 Signed a promissory note for PHP 30,000.00 loaned amount from Commonwealth Bank. 17 Received returned merchandise from customer PHP 3,500.00. 18 Paid PHP 5,700.00 of the amount owed from the transaction of January 02. 19 Purchase additional groceries from Talavera Supermarket amounting to PHP 44,000.00. 20 Collected full settlement of a customer from January 11 transactions. 24 Paid telephone expense, PHP 1,600.00. 25 Paid building rentals for the month, PHP 4,800.00 26 Settled accounts to Puregold. 27 PHP 41,750.00 cost of merchandise sold for PHP 58,450.00. 28 Withdrew PHP 20,000.00 from the business. 29 Paid miscellaneous expenses, PHP 3,430.00. 30 Paid the first installment of the note payable on Service Vehicle, PHP 8,500.00. 31 Paid Salaries PHP 5,100.00, net of the following deductions: SSS, PHP 380.00; Pag-IBIG, PHP 100.00; Philhealth, PHP 220.00.   The remaining inventory at the end of the month is PHP 20,000.00.   Journalize the transactions using the following accounts:  Account Number Account Titles 110 Cash 120 Accounts Receivable 130 Supplies 140 Prepaid Advertising 150 Merchandise Inventory 160 Service Vehicle 210 Accounts Payable 220 SSS Payable 230 Pag-IBIG Payable 240 Philhealth Payable 250 Notes Payable 310 Lopez, Capital 320 Lopez, Drawings 410 Sales 420 Sales Returns and Allowances 430 Sales Discount 510 Purchases 520 Freight In 530 Purchase Returns and Allowances 540 Purchase Discount 610 Freight Out 620 Salaries Expense 630 Rent Expense 640 Telephone Expense 650 Miscellaneous Expense 700 Income Summary Post to the ledger Prepare the trial balance Prepare the financial statements Post and close the closing entries

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Mr. Lopez opened a mini grocery store with the business name Lopez Fiesta Mart. Operations began on January 1, 2021, and the following transactions were completed during the month:

 

01 Mr. Lopez withdrew PHP 150,000.00 from a personal savings account and used it to open a new account in the name of Lopez Fiesta Mart.
02 Bought grocery supplies on account PHP 10,700.00.
04 Acquired a service vehicle costing PHP 76,000.00. A payment of PHP 25,000.00 Cash was made and a note payable was given for the PHP 51,000.00 remainder payable for 6 equal monthly installments.
06 Purchased merchandise from Puregold PHP 49,500.00, terms 5/10, 3/20.
07 Paid PHP 1,600.00 delivery charge for January 04 transactions.
08 Paid for three months of advertising and recorded Prepaid Advertising in the amount of PHP 6,000.00
11 Sold merchandise on account PHP 42,000.00 with 40% mark-up from the inventory cost of PHP 30,000.00, term 2/10, n/30.
12 Paid PHP 1,200.00 freight for January 11 transactions.
14 Returned defective merchandise to Puregold amounting to PHP 4,500.00.
15 Paid salaries, PHP 5,600.00.
16 Signed a promissory note for PHP 30,000.00 loaned amount from Commonwealth Bank.
17 Received returned merchandise from customer PHP 3,500.00.
18 Paid PHP 5,700.00 of the amount owed from the transaction of January 02.
19 Purchase additional groceries from Talavera Supermarket amounting to PHP 44,000.00.
20 Collected full settlement of a customer from January 11 transactions.
24 Paid telephone expense, PHP 1,600.00.
25 Paid building rentals for the month, PHP 4,800.00
26 Settled accounts to Puregold.
27 PHP 41,750.00 cost of merchandise sold for PHP 58,450.00.
28 Withdrew PHP 20,000.00 from the business.
29 Paid miscellaneous expenses, PHP 3,430.00.
30 Paid the first installment of the note payable on Service Vehicle, PHP 8,500.00.
31 Paid Salaries PHP 5,100.00, net of the following deductions: SSS, PHP 380.00; Pag-IBIG, PHP 100.00; Philhealth, PHP 220.00.

 

The remaining inventory at the end of the month is PHP 20,000.00.

 

Journalize the transactions using the following accounts: 

Account Number Account Titles
110 Cash
120 Accounts Receivable
130 Supplies
140 Prepaid Advertising
150 Merchandise Inventory
160 Service Vehicle
210 Accounts Payable
220 SSS Payable
230 Pag-IBIG Payable
240 Philhealth Payable
250 Notes Payable
310 Lopez, Capital
320 Lopez, Drawings
410 Sales
420 Sales Returns and Allowances
430 Sales Discount
510 Purchases
520 Freight In
530 Purchase Returns and Allowances
540 Purchase Discount
610 Freight Out
620 Salaries Expense
630 Rent Expense
640 Telephone Expense
650 Miscellaneous Expense
700 Income Summary

Post to the ledger

Prepare the trial balance

Prepare the financial statements

Post and close the closing entries

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