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. Chart of 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 Required Prepare Closing Entries Prepare Post Closing Trial Balance (USE PERIODIC ACCOUNTING SYSTEM)

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. Chart of 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 Required Prepare Closing Entries Prepare Post Closing Trial Balance (USE PERIODIC ACCOUNTING SYSTEM)

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 46P

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Question

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.

Chart of 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

Required

Prepare Closing Entries
Prepare Post Closing Trial Balance

(USE PERIODIC ACCOUNTING SYSTEM)

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