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:

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

lPrepare closing entries and post trial balance 

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