*Use Accrual Accounting Base Method Chart of Accounts (strictly use it): ASSETS: Cash and Cash Equivalents: Petty Cash Cash on Hand Cash in Bank Accounts Receivables Merchandise Inventory Prepaid Expenses Supplies Fixed Assets Leasehold Improvements Accumulated Depreciation - Leasehold Improvements Accumulated Depreciation - Transportation and Other Equipment Other Assets LIABILITIES: Accounts Payable Accrued Expenses and Other Liabilities Income Tax Payable EQUITY: Owner’s Capital Retained Earnings INCOME STATEMENT: Income: Sales Sales Discount Sales Returns and allowances Cost of Sales: Cost of Sales Expenses: Salary Expenses Rent Expenses Professional Fees Transportation Expenses Depreciation Expenses – Leasehold Improvements Depreciation Expenses – Transportation and Other Equipment Insurance Expenses Supplies Expenses Utility Expenses Miscellaneous Expenses Income Tax Income Tax Expense Require: • Journal Entries
*Use Accrual Accounting Base Method Chart of Accounts (strictly use it): ASSETS: Cash and Cash Equivalents: Petty Cash Cash on Hand Cash in Bank Accounts Receivables Merchandise Inventory Prepaid Expenses Supplies Fixed Assets Leasehold Improvements Accumulated Depreciation - Leasehold Improvements Accumulated Depreciation - Transportation and Other Equipment Other Assets LIABILITIES: Accounts Payable Accrued Expenses and Other Liabilities Income Tax Payable EQUITY: Owner’s Capital Retained Earnings INCOME STATEMENT: Income: Sales Sales Discount Sales Returns and allowances Cost of Sales: Cost of Sales Expenses: Salary Expenses Rent Expenses Professional Fees Transportation Expenses Depreciation Expenses – Leasehold Improvements Depreciation Expenses – Transportation and Other Equipment Insurance Expenses Supplies Expenses Utility Expenses Miscellaneous Expenses Income Tax Income Tax Expense Require: • Journal Entries
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter9: Sales And Purchases
Section: Chapter Questions
Problem 4PA: The following transactions relate to Hawkins, Inc., an office store wholesaler, during June of this...
Related questions
Question
*Use Accrual Accounting Base Method
Chart of Accounts (strictly use it):
ASSETS:
Cash and Cash Equivalents:
Petty Cash
Cash on Hand
Cash in Bank
Accounts Receivables
Merchandise Inventory
Prepaid Expenses
Supplies
Fixed Assets
Leasehold Improvements
Accumulated Depreciation -
Leasehold Improvements
Accumulated Depreciation -
Transportation and Other
Equipment Other Assets
LIABILITIES:
Accounts Payable
Accrued Expenses and Other Liabilities
Income Tax Payable
EQUITY:
Owner’s Capital
Retained Earnings
INCOME STATEMENT:
Income:
Sales
Sales Discount
Sales Returns and allowances
Cost of Sales:
Cost of Sales
Expenses:
Salary Expenses
Rent Expenses
Professional Fees
Transportation Expenses
Depreciation Expenses – Leasehold Improvements Depreciation Expenses – Transportation and Other Equipment Insurance Expenses
Supplies Expenses
Utility Expenses
Miscellaneous Expenses
Income Tax
Income Tax Expense
Require:
• Journal Entries
![10. On August 15, Mr. A deposited all the cash on hand to Made from Wood's checking account, less the amount of salaries of its
employees from July 26 to August 15, which was paid on the same day.
11. On August 16, Mr. A withdrew P200,000 from Made from Wood's checking account for personal emergency use.
12. On August 17, Made from Wood received and delivered the following orders. All orders are payable cash on delivery.
Customer Name
Delivery Address
No. of Units
Stock
Code
Sold
D001
1
1
Nick Estrada
Janice Segundo
1989 Coffee
No. 114, Brgy. Dagatan Lipa City
BIKA, Lot 5, Mabini Heights, Brgy Mabioh Lipa
City
13. On August 18, the following were ordered and delivered again to 1989 Coffee. Payment was made again in cash, less 5%
sales discount.
Customer Name
Delivery Address
Brgy. Tambo, Lipa City
15. On August 21, Made from Wood paid the following from its petty cash fund:
P2,000 for electricity bill and P500 for water bill.
S001
Jenny Dizor
Sophia Hernando
14. On August 20, Made from Wood issued a check to supplier Furniture Shop Philippines for orders made and received on July
22.
Stock
Code
C001
No. of Units
Sold
2
P1,700 for monthly internet service.
16. On August 22, Made from Wood received a check from Z Company as payment for the company's order on July 30
No. 213 Broy Santiago, Malvan Batangas,
No. 110 Brgy Bugtong na Pulo Lipa City
17. On August 23, Made from Wood received and delivered the following orders. All orders are payable cash on delivery.
Customer Name
Delivery Address
Stock
Code
D002
D002
No. of Units
Sold
1
1
18. On August 24, the national government declared a national lockdown due to a pandemic. Made from Wood will be forced to
close for two weeks as the store and delivery is not allowed.
19. On the same day, to support its employees, Made from Wood withdrew fur from Made from Wood's checking account and
paid the salaries of its employees from August 16 to August 24. Also, Mr. A paid each employee P250 per day for August 25-
August 31 period as support while the store is closed (recognized as miscellaneous expense).
20. On August 24, Mr. A received a check from AAA Accounting for payment of its purchase on account.
21. Since the store will be closed on August 31, the following adjustments are already made on August 24:
Recognition of rent expense for one month - the lessor agreed for payment to be made once the lockdown is over.
Petty cash fund balance is P43,000. Apart from petty cash disbursements mentioned above, the amount was spent
on gasoline and toll fees. The petty cash fund was not replenished.
One-month depreciation expense is recognized on both the leasehold improvement (estimated useful life is 3 years)
and on transportation equipment (estimated useful life is 5 years).
One-month insurance expense is recognized.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F758751c5-ac35-4cc5-b5c6-ad43e17a32f5%2Faed4b926-1f06-46d8-9a88-87085f6431d6%2Feppqeb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:10. On August 15, Mr. A deposited all the cash on hand to Made from Wood's checking account, less the amount of salaries of its
employees from July 26 to August 15, which was paid on the same day.
11. On August 16, Mr. A withdrew P200,000 from Made from Wood's checking account for personal emergency use.
12. On August 17, Made from Wood received and delivered the following orders. All orders are payable cash on delivery.
Customer Name
Delivery Address
No. of Units
Stock
Code
Sold
D001
1
1
Nick Estrada
Janice Segundo
1989 Coffee
No. 114, Brgy. Dagatan Lipa City
BIKA, Lot 5, Mabini Heights, Brgy Mabioh Lipa
City
13. On August 18, the following were ordered and delivered again to 1989 Coffee. Payment was made again in cash, less 5%
sales discount.
Customer Name
Delivery Address
Brgy. Tambo, Lipa City
15. On August 21, Made from Wood paid the following from its petty cash fund:
P2,000 for electricity bill and P500 for water bill.
S001
Jenny Dizor
Sophia Hernando
14. On August 20, Made from Wood issued a check to supplier Furniture Shop Philippines for orders made and received on July
22.
Stock
Code
C001
No. of Units
Sold
2
P1,700 for monthly internet service.
16. On August 22, Made from Wood received a check from Z Company as payment for the company's order on July 30
No. 213 Broy Santiago, Malvan Batangas,
No. 110 Brgy Bugtong na Pulo Lipa City
17. On August 23, Made from Wood received and delivered the following orders. All orders are payable cash on delivery.
Customer Name
Delivery Address
Stock
Code
D002
D002
No. of Units
Sold
1
1
18. On August 24, the national government declared a national lockdown due to a pandemic. Made from Wood will be forced to
close for two weeks as the store and delivery is not allowed.
19. On the same day, to support its employees, Made from Wood withdrew fur from Made from Wood's checking account and
paid the salaries of its employees from August 16 to August 24. Also, Mr. A paid each employee P250 per day for August 25-
August 31 period as support while the store is closed (recognized as miscellaneous expense).
20. On August 24, Mr. A received a check from AAA Accounting for payment of its purchase on account.
21. Since the store will be closed on August 31, the following adjustments are already made on August 24:
Recognition of rent expense for one month - the lessor agreed for payment to be made once the lockdown is over.
Petty cash fund balance is P43,000. Apart from petty cash disbursements mentioned above, the amount was spent
on gasoline and toll fees. The petty cash fund was not replenished.
One-month depreciation expense is recognized on both the leasehold improvement (estimated useful life is 3 years)
and on transportation equipment (estimated useful life is 5 years).
One-month insurance expense is recognized.
![August 2022
1. On August 2, the following were ordered and delivered to 1989 Coffee, a coffee shop located in Brgy, Tambo, Lipa City.
Payment was made in cash, less 5% sales discount.
Customer Name
Delivery Address
1989 Coffee
0002
WO01
W002
S001
2. On August 5, Made from Wood placed an advertisement with 111.1 Basyo Batanguena with office located in Brgy Maraw
Lipa City and paid P3,000 from its petty cash fund.
3. On August 6, the petty cash fund was replenished after withdrawing funds from Made from Wood's checking account.
4. On August 8, supplier Wood Works Furniture delivered the furniture listed below. Mr. A issued check to Wood Works
Furniture for full payment. Delivery fee was shouldered by Wood Works Furniture.
Stock Code
Description
Bill Evangelista
Pia Mendoza
Nicki Santos
Brgy. Tambo, Lipa City
ARBaca Outdoor Brown Bench
Marla Brown Office Desk
Sara Oak Office Desk
Moore Shoe Cabinet
Pau Adajar
Alyssa Garcia
5. On August 9, Made from Wood received and delivered the following orders. All orders are payable cash on delivery.
Customer Name
Delivery Address
No. of Units
Sold
1
1
AAA Accounting
B001
B002
B003
Number of
Units
2
5
3
3
No. 212, Brgy Darasa Tanauan City
BIK 2, Lot 20, Tennessee Homes, Brgy San
Pablo, Sto Tomas City
No. 320, Brgy. Santiago, Malvar, Batangas
Stock
Code
0002
No. 8, Brgy Plaridel, Lipa City
No. 45, Broy Tangoa, Lipa City
Brgy. Marawoy, Lipa City
6. On August 10, Made from Wood received and delivered the following orders. All orders are payable cash on delivery.
Customer Name
Delivery Address
No. of Units
Sold
1
2
Harry Bookcase with Glass Door
Rose Cube Bookcase
Peter 5-Layer Bookcase
Purchase
Price per Unit
Selling
Price per Unit
P 6,500.00
P 5,000.00
P 4,000,00
P 5,500.00
P 3,000.00 P 4,000,00
P2,500.00
P3,500.00
Stock
Code
L002
C001
7. On August 12, Made from Wood received the following order from AAA Accounting.
Customer Name
Delivery Address
Number of
Units
3
3
3
C002
Stock
Code
D001
No. of Units
Sold
2
W002
Stock
Code
W002
B002
1
8. On August 13, Made from Wood delivered the furniture sold to AAA Accounting. The order is payable within 15 days.
9. On August 14, Furniture Shop Philippines delivered the furniture listed below. Payment terms is n/30. Delivery fee was
shouldered by Furniture Shop Philippines.
Stock Code
Description
No. of Units
Sold
3
2
Selling
Price per Unit
P 6,900.00
Purchase
Price per Unit
P 5,900.00
P 4,100.00 P 4,600.00
P 5,000.00
P6,000.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F758751c5-ac35-4cc5-b5c6-ad43e17a32f5%2Faed4b926-1f06-46d8-9a88-87085f6431d6%2Fkchtp18_processed.jpeg&w=3840&q=75)
Transcribed Image Text:August 2022
1. On August 2, the following were ordered and delivered to 1989 Coffee, a coffee shop located in Brgy, Tambo, Lipa City.
Payment was made in cash, less 5% sales discount.
Customer Name
Delivery Address
1989 Coffee
0002
WO01
W002
S001
2. On August 5, Made from Wood placed an advertisement with 111.1 Basyo Batanguena with office located in Brgy Maraw
Lipa City and paid P3,000 from its petty cash fund.
3. On August 6, the petty cash fund was replenished after withdrawing funds from Made from Wood's checking account.
4. On August 8, supplier Wood Works Furniture delivered the furniture listed below. Mr. A issued check to Wood Works
Furniture for full payment. Delivery fee was shouldered by Wood Works Furniture.
Stock Code
Description
Bill Evangelista
Pia Mendoza
Nicki Santos
Brgy. Tambo, Lipa City
ARBaca Outdoor Brown Bench
Marla Brown Office Desk
Sara Oak Office Desk
Moore Shoe Cabinet
Pau Adajar
Alyssa Garcia
5. On August 9, Made from Wood received and delivered the following orders. All orders are payable cash on delivery.
Customer Name
Delivery Address
No. of Units
Sold
1
1
AAA Accounting
B001
B002
B003
Number of
Units
2
5
3
3
No. 212, Brgy Darasa Tanauan City
BIK 2, Lot 20, Tennessee Homes, Brgy San
Pablo, Sto Tomas City
No. 320, Brgy. Santiago, Malvar, Batangas
Stock
Code
0002
No. 8, Brgy Plaridel, Lipa City
No. 45, Broy Tangoa, Lipa City
Brgy. Marawoy, Lipa City
6. On August 10, Made from Wood received and delivered the following orders. All orders are payable cash on delivery.
Customer Name
Delivery Address
No. of Units
Sold
1
2
Harry Bookcase with Glass Door
Rose Cube Bookcase
Peter 5-Layer Bookcase
Purchase
Price per Unit
Selling
Price per Unit
P 6,500.00
P 5,000.00
P 4,000,00
P 5,500.00
P 3,000.00 P 4,000,00
P2,500.00
P3,500.00
Stock
Code
L002
C001
7. On August 12, Made from Wood received the following order from AAA Accounting.
Customer Name
Delivery Address
Number of
Units
3
3
3
C002
Stock
Code
D001
No. of Units
Sold
2
W002
Stock
Code
W002
B002
1
8. On August 13, Made from Wood delivered the furniture sold to AAA Accounting. The order is payable within 15 days.
9. On August 14, Furniture Shop Philippines delivered the furniture listed below. Payment terms is n/30. Delivery fee was
shouldered by Furniture Shop Philippines.
Stock Code
Description
No. of Units
Sold
3
2
Selling
Price per Unit
P 6,900.00
Purchase
Price per Unit
P 5,900.00
P 4,100.00 P 4,600.00
P 5,000.00
P6,000.00
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