Prepare journal entries of Davao Agri Center a business owned and managed by Mr. Lance and engaged in buying and selling of  agricultural products like fertilizers, pesticides, various vegetable and fruit seeds, farm tools and other related agri products. The entity uses the periodic system of recording inventory.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Prepare journal entries of Davao Agri Center a business owned and managed by Mr. Lance and engaged in buying and selling of  agricultural products like fertilizers, pesticides, various vegetable and fruit seeds, farm tools and other related agri products. The entity uses the periodic system of recording inventory.

 

CHART OF ACCOUNTS
Cash
Accounts Receivable
Supplies
Prepaid Rent
Advances of Employees
Office Equipment
Furnitures & Fixtures
Rent Deposit
Accounts Payable
SS/PHIC/HDMF premium Payable
Withholding Tax Payable
Lance Capital
Lance Drawing
Sales
Sales Discount
Sales Returns & Allowances
Purchases
Purchase Discount
Purchase Returns & Allowance
Freight In
Salaries Expense
Advertising Expense
Taxes and License
Freight out
Transcribed Image Text:CHART OF ACCOUNTS Cash Accounts Receivable Supplies Prepaid Rent Advances of Employees Office Equipment Furnitures & Fixtures Rent Deposit Accounts Payable SS/PHIC/HDMF premium Payable Withholding Tax Payable Lance Capital Lance Drawing Sales Sales Discount Sales Returns & Allowances Purchases Purchase Discount Purchase Returns & Allowance Freight In Salaries Expense Advertising Expense Taxes and License Freight out
and other related agri products. The entity uses the periodic system of recording inven-
July 9, - Sold MDSE to Mag-uuma Coop amounting to P450,000 terms: 1/5, n/30 FOB
Shipping point. Davao Agri paid the freight amounting to P2,500.
tory.
July 1, 2021- The owner Mr. Lance Mangubat opened an account with Metrobank and
deposited cash amounting to P1,200,000. Also he invested an office equipment (com-
puters and printers) valued at P35,000.
July 10- One of the sales clerk made a cash advance amounting to P10,000 to be de-
ducted from the salary at P2,000 per month.
July 12- Purchase MDSE from CHEAP Co. amounting to P80,000 in cash less: 10%, and
FOB shipping point. Paid freight P1,000.
July 2, 2021- Paid DTI, business permit and BIR registration amounting to P5,000. Also
on the same date paid the printing press for printing various documents like sales in-
voice, official receipts, receiving report, purchase order, cash voucher and journal
voucher to be used in the store amounting to P20,000. (the entity use the asset ap-
proach)
July 13- Returned to Bukid Supply defective goods worth P5,000 (at list Price).
July 14- Paid a radio station for radio ads amounting to P3,000
Collected in full the account of Mag-uuma Coop less: 1% cash discount.
July 3, 2021- Bought 5 display counters in cash amounting to P25,000.
July 15- Paid the 1st half of the salary of sales clerks amounting to P20,000
July 5, 2021- Paid the following:
July 16- Paid in full the account from Bukid Supply less: freight paid, returns on July 13
3 months advance rental amounting to P45,000
15,000
60,000
1 month rental deposit amounting to
and 2% cash discount.
Total
July 18- Received defective goods returned by Cavendish Farm amounting to P10,000.
- Partial collection of the account of Cavendish Farm P200,000
Less: 5% w/holding tax
Net amount paid
3,000
P 57,000
July 20- Purchased MDSE from Bukid Supply amounting to P400,000 terms: Less: 5%
2/10, n/45 FOB destination freight paid by Bukid Supply amounting P3,000.
July 6- Bought MDSE from Bukid Supply amounting to P650,000 terms: less:5%, 2/10,
n/45 FOB destination. Davao Agri Center paid the freight amounting to P4,000.
July 25- Sold MDSE in cash P150,000.
July 7, Sold MDSE to various customers in cash amounting to P120,000.
July 27- Mr. Lance withdrew cash for personal use P15,000
July 8, Sold MDSE to Cavendish Farm amounting to P250,000 terms: 1/5, n/30 FOB des-
tination. Paid freight amounting to P1,200.
July 29- Paid the 2nd half salaries of sales clerk amounting to P20,000 less: advances of
employees P2,000; SSS premium payable P400; Phil health Premium payable 300 and
HDMF premium payable P200.
Transcribed Image Text:and other related agri products. The entity uses the periodic system of recording inven- July 9, - Sold MDSE to Mag-uuma Coop amounting to P450,000 terms: 1/5, n/30 FOB Shipping point. Davao Agri paid the freight amounting to P2,500. tory. July 1, 2021- The owner Mr. Lance Mangubat opened an account with Metrobank and deposited cash amounting to P1,200,000. Also he invested an office equipment (com- puters and printers) valued at P35,000. July 10- One of the sales clerk made a cash advance amounting to P10,000 to be de- ducted from the salary at P2,000 per month. July 12- Purchase MDSE from CHEAP Co. amounting to P80,000 in cash less: 10%, and FOB shipping point. Paid freight P1,000. July 2, 2021- Paid DTI, business permit and BIR registration amounting to P5,000. Also on the same date paid the printing press for printing various documents like sales in- voice, official receipts, receiving report, purchase order, cash voucher and journal voucher to be used in the store amounting to P20,000. (the entity use the asset ap- proach) July 13- Returned to Bukid Supply defective goods worth P5,000 (at list Price). July 14- Paid a radio station for radio ads amounting to P3,000 Collected in full the account of Mag-uuma Coop less: 1% cash discount. July 3, 2021- Bought 5 display counters in cash amounting to P25,000. July 15- Paid the 1st half of the salary of sales clerks amounting to P20,000 July 5, 2021- Paid the following: July 16- Paid in full the account from Bukid Supply less: freight paid, returns on July 13 3 months advance rental amounting to P45,000 15,000 60,000 1 month rental deposit amounting to and 2% cash discount. Total July 18- Received defective goods returned by Cavendish Farm amounting to P10,000. - Partial collection of the account of Cavendish Farm P200,000 Less: 5% w/holding tax Net amount paid 3,000 P 57,000 July 20- Purchased MDSE from Bukid Supply amounting to P400,000 terms: Less: 5% 2/10, n/45 FOB destination freight paid by Bukid Supply amounting P3,000. July 6- Bought MDSE from Bukid Supply amounting to P650,000 terms: less:5%, 2/10, n/45 FOB destination. Davao Agri Center paid the freight amounting to P4,000. July 25- Sold MDSE in cash P150,000. July 7, Sold MDSE to various customers in cash amounting to P120,000. July 27- Mr. Lance withdrew cash for personal use P15,000 July 8, Sold MDSE to Cavendish Farm amounting to P250,000 terms: 1/5, n/30 FOB des- tination. Paid freight amounting to P1,200. July 29- Paid the 2nd half salaries of sales clerk amounting to P20,000 less: advances of employees P2,000; SSS premium payable P400; Phil health Premium payable 300 and HDMF premium payable P200.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Strategic business units
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education