Bagong Buhay Bookstore

Date Accounts and Explanations F Debit Credit

Apr-05 Merchandise Inventory 20,000
Accounts Payable 20,000

Apr-06 Merchandise Inventory 700

Cash 700

Apr-07 Equipment 29,000

Accouns Payable 29,000

Apr-08 Accounts Payable 3,000

Merchandise Inventory 3,000

Apr-15 Accounts Payable 17,000

Merchandise Inventory (2%) 340
Cash 16,660

Apr-20 Cost of Sales (7,500/125%) 6,000

Merchandise Inventory 6,000

Cash 7,500
Sales 7,500

Apr-21 Freight Out (Expenses) 500

Cash 500

Apr-22 Cost of Sales 4,000

Merchandise Inventory 4,000

Accounts Receivable 5,000

Sales (4,000 x 125%) 5,000

Apr-25 Merchandise Inventory 800

Cost of Sales (1,000/125%) 800

Sales Returns and Allowances 1,000

Accounts Receivable 1,000
 Mercy Company

Date Accounts and Explanations F Debit

Jun-10 Merchandise Inventory 8,000
Accounts Payable

Jun-11 Merchandise Inventory 400

Cash

Jun-19 Accounts Payable 8,000

Merchandise Inventory
Cash

Leonard Company

Date Accounts and Explanations F Debit

Jun-10 Purchases (If there's no Beg. Inventory) 5,000
Cash

Jun-10 Accounts Receivable 8,000

Sales

Jun-19 Sales Discount 160

Cash 7840
Accounts Receivable
 Credit

8,000

400

160
7840

Credit

5,000

8,000

8,000
 Date Accounts and Explanations F Debit
Jan-01 Cash 500,000
Merchandise Inventory 40,000
Mison, Capital
To record initial investment

Jan-04 Purchases 16,800

Input VAT 2,016
Accounts Payable
to record purchase from octo arts

Jan-07 Purchases 8000

Input VAT 960
Accounts Payable
to record purchase from villar records

Jan-08 Freight In 500

Input VAT 60
Cash
to record payment of freight for Villar

Jan-09 Accounts Receivable 7,840

Sales
Output VAT
to record sales to That's Entertainment

Jan-10 Accounts Payable 784

Purchase Returns and Allowances
Input VAT

Jan-15 Cash 22,400

Sales
Output VAT

Wages Expense 7,000

Withholding Tax Payable
Cash

Jan-16 Accounts Receivable 6,720

Sales
Output VAT

Jan-17 Accounts Payable 4,480

Cash

Jan-18 Sales Returns and Allowances 1,000

Input VAT 120
Cash
Jan-24 Cash 3,292.8
Sales Discount 60
Output VAT 7.2
Accounts Receivable

Jan-26 Cash 7,840

Accounts Receivable

Jan-28 Cash 22,400

Sales
Output VAT

Jan-30 Accounts Payable 18,032

Cash

Jan-31 Utility Expense 3,000

Wages Expense 7,000
Withholding Tax Payable
SSS Benefits Payable
Philhealth Benefits Payable
Pag-Ibig Benefits Payable
Cash
 Credit Name: Octo Arts (Accounts Payable)
Date Particulars
Jan-04 Purchase 1/10, n/30
540,000 Jan-10 Purchase Returns
Jan-30 Full Payment

Name: Villar Records (Accounts Payable)

Date Particulars
18,816 Jan-07 Purchase 2/10, n/30
Jan-17 Partial Payment

Name: That's Entertainment (Accounts Receivable)

Date Particulars
8,960 Jan-09 Sales 2/10, n/30
Jan-26 Full Collection

Name: Music & Magic (Accounts Receivable)

Date Particulars
560 Jan-16 Sales 2/10, n/30
Jan-24 Partial Collection

7,000
840

700
84

20,000
2,400

350
6,650

6,000
720

4,480

1,120
3,360

7,840

20,000
2,400

18,032

350
210
105
140
6,195
Ref Debit Credit Balance
18,816 18,816 (Dr)
784 18.032 (Dr) Debit
18,032 0 Jan-09
Jan-16
Balance
Ref Debit Credit Balance Cr Bal.
8,960 8,960 (Dr) Balance Dr.
4,480 4,480 (Dr)

Ref Debit Credit Balance Debit

7,840 7,840 (Dr) Jan-10
7,840 0 Jan-17
Jan-30
Balance
Ref Debit Credit Balance
6,720 6,720 (Dr)
3,360 3,360 (Dr)
 T- Accounts Reconcillation (Accounts R
Subsidiary Ledgers
Accounts Receivable That's Entertainment 0
Debit Credit Music & Magic 3,360
7,840 Jan-24 3,360 Balance 3,360
6,720 Jan-26 7,840
14,560 Balance 11,200
11,200 Reconcillation (Accounts
3,360 Subsidiary Ledgers
Octo Arts 0
Villar Records 4,480
Accounts Payable Balance 4,480
Debit Credit
784 Jan-04 18,816
4,480 Jan-07 8,960
18,032
23,296 Balance 27,776
Dr Bal. 23,296
Balance Cr. 4,480
 Reconcillation (Accounts Receivable)
ry Ledgers T Accounts
0 Ending Balance 3,360
3,360
3,360 Balance 3,360

Reconcillation (Accounts Payable)

ry Ledgers T Accounts
0 Ending Balance 4,480
4,480
4,480 Balance 4,480
 Sales Journal

Accounts Receivable
Date Customer Invoice No. F Cash Sales (Dr)
(Dr)
Aug-07 Greenland 1003 30,000
Aug-14 Cash Customer CRT 30,000
Aug-20 Oakland 1005 18,000
Balance 48,000 30,000

Purchase Journal

Merchandise Cash Purchases

Date Supplier Invoice No. F
Inventory (Dr) (Dr)
Aug-03 Rustic 1001 47,500 47,500
Aug-06 Babyland 1002 50,000 50,000
Aug-10 Jasmin 123 15,000
Balance 112,500 97,500

General Journal
Date Accounts Debit Credit
Aug-05 Equipment 80,000
Accounts Payable 80,000

Aug-18 Accounts Payable 1,000

Purchase Returns and Allowances 1,000
 Date Received From
Cost of Sales (Dr) /
Sales (Cr)
Merchandise Inventory (Cr) Aug-01 Marvin (Owner)
30,000 Aug-14 Cash Customer
30,000 Aug-25 Oakland
18,000 Balance
78,000

Date Paid to

Aug-03 Rustic
Accounts Payable Aug-06 Babyland
(Cr) Aug-17 Aboitiz
Aug-21 Customer
Aug-22 Jasmin
15,000 Aug-30 Employees
15,000

Aug-31 BIR
 Cash Receipts Journal
Accounts
Explanation OR No. Cash (Dr) Sales Discount (Dr) F Cash Sales (Cr)
Receivable (Cr)
Investment 300,000
Cash Sales CRT 80,000 80,000
Collection OR 01 17,640 360 18,000
397,640 360 18,000 80,000

Cash Disbursement Journal

Merchandise F Accounts Payable Cash Purchases
Explanation VO No. Cash (Cr)
Inventory (Cr) (Dr) (Dr)
Cash Purchase 101 47,500 47,500
Cash Purchase 102 50,000 50,000
Freight Paid 103 3,000
Cash Refund 104 2,000
Full Payment 105 14,000 14,000
Salaries 106 4,450

Percentage Tax 107 2,329

Sundry Account Debit Credit

Marvin, Capital 300,000

300,000

Sundry Account Debit Credit

Freight In 3,000
Sales Returns 2,000

Salaries Expense 5,000

Withholding 250
SS 150
HDMF 100
PhilHealth 50
Income Tax 2,329
 Shopwise Mart
Six Column Worksheet
December 31, 2014

Trial Balance Adjustments

Particulars
Debit Credit Debit Credit
Cash 2
Accounts Receivable 10
Allowance for Bad Debts 1 2
Merchandise Inventory, Jan. 1 6
Office Supplies Inventory 4 3
Store Furniture and Fixtures 7
Accumulated Depreciation 3 0.7
Accounts Payable 3
Santos, Capital 26
Santos, Personal 5
Sales 42
Sales Returns 2
Purchases 19
Freight In 2
Purchase Discount 3
Advertising 3
Rent 7 2
Sales Salaries 11 1
Totals 78 78
Office Supplies Expense 3
Merchandise Inventory, Dec. 31 12 12
Bad Debts Expense 2
Prepaid Rent 2
Accrued Salaries (Payable) 1
Depreciation Expense 0.7
Totals 20.7 20.7
 Closing Entries

Date Accounts
Dec. 31 Sales
Adjusted Trial Balance Sales Returns
Debit Credit Income and Expense Summary
2
10 Purchase Discount
3 Merchandise Inventory, Dec. 31
6 Income and Expense Summary
1 Purchases
7 Freight In
3.7 Advertising
3 Rent
26 Sales Salaries
5 Office Supplies Expense
42 Bad Debts Expense
2 Depreciation Expense
19
2 Income and Expense Summary
3 Santos, Capital
3
5 Santos, Capital
12 Santos, Personal

3 Reversing Entries
12 12
2 Dec.31 Rent
2 Prepaid Rent
1
0.7 Accrued Salaries
93.7 93.7 Salaries Expense
Closing Entries

Debit Credit
42
2
40

3
12
31.7
19
2
3
5
12
3
2
0.7

8.3
8.3

5
5

eversing Entries

2
2

1
1
 CLOSING ENTRIES
Date Explanation F Debit Credit
Dec-31 Sales ₱ 403,320.00
Sales Returns and Allowances ₱ 4,050.00
Income and Expense Summary ₱ 399,270.00

Income and Expense Summary ₱ 355,174.17

Merchandise Inventory, End ₱ 50,400.00
Purchase Returns and Allowances ₱ 3,420.00
Purchases ₱ 190,600.00
Delivery Expense ₱ 6,250.00
Rent Expense ₱ 70,020.00
Salaries Expense ₱ 63,000.00
Office Expense ₱ 3,240.00
Bad Debts Expense ₱ 967.50
Depreciation Expense ₱ 1,866.67
Supplies Expense ₱ 1,050.00
Interest Expense ₱ 21,000.00
Merchandise Inventory, Beg ₱ 51,000.00

Income and Expense Summary ₱ 44,095.83

Javier, Capital ₱ 44,095.83

Javier, Capital ₱ 14,400.00

Javier, Drawing ₱ 14,400.00
 Trial Balance Adjustments
Accounts
DR CR DR
Cash ₱ 313,490.00
Accounts Receivable ₱ 35,350.00
Allowance for Bad Debts ₱ 800.00
Merchandise Inventory, Beg ₱ 51,000.00
Supplies Inventory ₱ 2,650.00
Office Furniture and Fixtures ₱ 37,000.00
Accumulated Depreciation ₱ 4,300.00
Accounts Payable ₱ 15,710.00
Loans Payable ₱ 200,000.00
Javier, Capital ₱ 163,500.00
Javier, Drawing ₱ 14,400.00
Sales ₱ 403,320.00
Sales Returns and Allowances ₱ 4,050.00
Purchases ₱ 190,600.00
Purchases Returns and Allowances ₱ 3,420.00
Delivery Expense ₱ 6,250.00
Rent Expense ₱ 70,020.00
Salaries Expense ₱ 63,000.00
Office Expense ₱ 3,240.00
Totals ₱ 791,050.00 ₱ 791,050.00
Bad Debts Expense ₱ 967.50
Depreciation Expense ₱ 1,866.67
Supplies Expense ₱ 1,050.00
Interest Expense ₱ 21,000.00
Interest Payable
Merchandise Inventory, End
₱ 24,884.17
Net Income
Grand Total
Adjustments Adjusted Trial Balance Income Statement Balance Sheet
CR DR CR DR CR DR
₱ 313,490.00 ₱ 313,490.00
₱ 35,350.00 ₱ 35,350.00
₱ 967.50 ₱ 1,767.50
₱ 51,000.00 ₱ 51,000.00
₱ 1,050.00 ₱ 1,600.00 ₱ 1,600.00
₱ 37,000.00 ₱ 37,000.00
₱ 1,866.67 ₱ 6,166.67
₱ 15,710.00
₱ 200,000.00
₱ 163,500.00
₱ 14,400.00 ₱ 14,400.00
₱ 403,320.00 ₱ 403,320.00
₱ 4,050.00 ₱ 4,050.00
₱ 190,600.00 ₱ 190,600.00
₱ 3,420.00 ₱ 3,420.00
₱ 6,250.00 ₱ 6,250.00
₱ 70,020.00 ₱ 70,020.00
₱ 63,000.00 ₱ 63,000.00
₱ 3,240.00 ₱ 3,240.00

₱ 967.50 ₱ 967.50
₱ 1,866.67 ₱ 1,866.67
₱ 1,050.00 ₱ 1,050.00
₱ 21,000.00 ₱ 21,000.00
₱ 21,000.00 ₱ 21,000.00
₱ 50,400.00 ₱ 50,400.00
₱ 24,884.17 ₱ 814,884.17 ₱ 814,884.17 ₱ 413,044.17 ₱ 457,140.00 ₱ 452,240.00
₱ 44,095.83
₱ 457,140.00 ₱ 457,140.00 ₱ 452,240.00
Balance Sheet Arthur's Trading
CR Income Statement
For the Year Ended December 31, 2018

₱ 1,767.50 Sales ₱ 403,320.00

Less: Sales Returns and Allowances ₱ 4,050.00
Net Sales ₱ 399,270.00

₱ 6,166.67 Cost of Sales:

₱ 15,710.00 Merchandise Inventory, Beg ₱ 51,000.00
₱ 200,000.00 Purchases ₱ 190,600.00
₱ 163,500.00 Less: Purchase Returns and Allowances ₱ 3,420.00
Total Goods Available for Sale ₱ 238,180.00
Less: Merchandise Inventory, End ₱ 50,400.00 ₱ 187,780.00
Gross Profit ₱ 211,490.00
Less: Operating Expenses:
Selling Expenses:
Rent Expense (3/4) ₱ 52,515.00
Delivery Expense ₱ 6,250.00
Salaries Expense (2 Sales Clerk) ₱ 42,000.00
Supplies Expense (3/4) ₱ 787.50 ₱ 101,552.50
Administrative Expenses:
Depreciation Expense ₱ 1,866.67
Bad Debts Expense ₱ 967.50
Rent Expense (1/4) ₱ 17,505.00
Office Expense ₱ 3,240.00
₱ 21,000.00 Supplies Expense (1/4) ₱ 262.50
Salaries Expense (Office clerk) ₱ 21,000.00 ₱ 44,841.67
₱ 408,144.17 Operating Income ₱ 65,095.83
₱ 44,095.83 Less: Interest Expense ₱ 21,000.00
₱ 452,240.00 Net Income ₱ 44,095.83
 Arthur's Trading
Capital Statement
For the Year Ended December 31, 2018

Javier, Capital, Beg. ₱ 163,500.00

Net Income ₱ 44,095.83
₱ 399,270.00 Less: Javier, Drawings ₱ 14,400.00
Javier, Capital, End. ₱ 193,195.83

₱ 187,780.00
₱ 211,490.00

₱ 101,552.50

₱ 44,841.67
₱ 65,095.83
₱ 21,000.00
₱ 44,095.83
 Arthur's Trading
Statement of Financial Position
December 31, 2018

ASSET
Current Assets:
Cash ₱ 313,490.00
Accounts Receivable ₱ 35,350.00
Less: Allowance for Bad Debts ₱ 1,767.50
Merchandise Inventory ₱ 50,400.00
Supplies Inventory ₱ 1,600.00
Total Current Assets ₱ 399,072.50
Non Current Assets:
Furniture and Fixtures ₱ 37,000.00
Less: Accumulated Depreciation ₱ 6,166.67
Total Non Current Assets ₱ 30,833.33
Total Assets ₱ 429,905.83

LIABILITIES AND OWNER'S EQUITY

Current Liabilities:
Accounts Payable ₱ 15,710.00
Interest Payable ₱ 21,000.00
Total Current Liabilities ₱ 36,710.00
Non Current Liabilities:
Loans Payable ₱ 200,000.00
Total Non Current Liabilities ₱ 200,000.00
Total Liabilities ₱ 236,710.00

Owner's Equity:
Javier, Capital ₱ 193,195.83
Total Owner's Equity ₱ 193,195.83

Total Liabilities and Owner's Equity ₱ 429,905.83

.