Transactions for the 1st year 200x: Jan 1      Owner invested P1,000,000 cash Feb 1      Purchased furniture worth P120,000 with 8 years useful life and no salvage value  Feb 12    Purchases on account, P600,000; terms: 2/20; n/30. FOB shipping point, freight prepaid, P2,000. Mar 2      Sold merchandise on account, P900,000; terms 10; 5/15, n/30. FOB shipping point, freight prepaid, P25,000 Mar 7       Collected 80% of receivable on March 2 Mar 12     Paid purchases made on Feb. 12 Mar 23     Received sales returns, P25,000 from sales on Mar 2 Apr 2       Collected remaining receivables on Mar 2. Dec. 30    Paid Rent, P80,000 and utilities, P16,000 Dec. 31    Accrued salary, P120,000 and merchandise inventory per count P60,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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ASSIGNMENT 05: JOURNAL ENTRIES FOR MERCHANDISING BUSINESS

Transactions for the 1st year 200x:
Jan 1      Owner invested P1,000,000 cash

Feb 1      Purchased furniture worth P120,000 with 8 years useful life and no salvage value 

Feb 12    Purchases on account, P600,000; terms: 2/20; n/30. FOB shipping point, freight prepaid, P2,000.

Mar 2      Sold merchandise on account, P900,000; terms 10; 5/15, n/30. FOB shipping point, freight prepaid, P25,000

Mar 7       Collected 80% of receivable on March 2

Mar 12     Paid purchases made on Feb. 12

Mar 23     Received sales returns, P25,000 from sales on Mar 2

Apr 2       Collected remaining receivables on Mar 2.

Dec. 30    Paid Rent, P80,000 and utilities, P16,000

Dec. 31    Accrued salary, P120,000 and merchandise inventory per count P60,000

Transactions for the 2nd year 200y:

Jan. 15      Paid accrued salary of 200x

Apr 27       Purchased goods on account P480,000. FOB destination, freight prepaid P14,000

May 22     Sold goods for cash to various customers, P450,000

Nov 26      Sold goods on account, P560,000. FOB, destination, freight collect, P36,000

Dec 30      Paid Rent P80,000 and utilities, P12,000

Dec 31      Accrued salary, P140,000 and merchandise inventory per count P66,000


Required: Journalize the above transactions (regular, adjusting and closing entries) using PERIODIC METHOD

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