Date Description PR Debit Credit

2019
Jan 2 Cash 101 P 250,000.00
J. Tan's Capital 301 P 250,000.00
To record investment to JT
Merchandise

3 Purchases 501 80,000.00

Accounts Payable 201 80,000.00
To record purchases on
Baclaran market in terms

4 Communication Expense 602 5,000.00

Cash 101 5,000.00
To record payment for telephone
and internet in cash

5 Purchases 106 16,000.00

Accounts Payable 201 16,000.00
To record purchases from
Lawton in terms

6 Purchases 106 20,000.00

Cash 101 20,000.00
To record purchases from
Angono in cash

7 Office Supplies 105 4,500.00

Cash 101 4,500.00
To record purchase of office
supplies in cash

8 Accounts Payable 201 3,000.00

Purchases return and allowances 502 3,000.00
To record return of purchases from
Baclaran Market

9 Accounts Payable 201 77,000.00

Cash 101 74,690.00
Purchase discount 503 2,310.00
To record full payment to
Baclaran Market

10 Accounts Receivable 102 35,000.00

 Sales 401 35,000.00
To record sales to Mira in terms

11 Cash 101 50,000.00

Sales 401 50,000.00
To record sales in cash

15 Sales return and allowances 402 2,000.00

Accounts receivable 102 2,000.00
To record return of sales by
customer Mira

16 Accounts Payable 201 16,000.00

Cash 101 15,680.00
Purchase discount 503 320.00
To record full payment to Lawton

17 Cash 101 50,000.00

Notes Payable 202 50,000.00
To record cash loan from RCBC

19 Accounts Receivable 102 25,000.00

Sales 401 25,000.00
To record sold merchandise to
customer Sagun in terms

20 Salaries expense 601 3,500.00

Communication Expense 602 1,500.00
Rent expense 603 2,100.00
Cash 101 7,100.00
To record payment for expenses

21 J. Tan's drawing 302 3,500.00

Cash 101 3,500.00
To record withdrawal

22 Freight in 504 800.00

Cash 101 800.00
To record freight cost for
purchases

30 Freight out 604 1,100.00

Cash 101 1,100.00
To record freight cost for sales
Account name: Cash
Date Particulars RF No. Debit Credit
2019
Jan 2 Investment J1 P 250,000.00
4 Communication expense J1 P 5,000.00
6 Goods J1 20,000.00
7 Supplies J1 4,500.00
9 Full Payment J1 74,690.00
11 Sales J1 50,000.00
16 Full payment J1 15,680.00
17 Loan J1 50,000.00
20 Expenses J1 7,100.00
21 Withdrawal J1 3,500.00
22 Transportation J1 800.00
30 Transportation J1 1,100.00

Account name: Accounts Receivable

Date Particulars RF No. Debit Credit
2019
Jan 10 Sales J1 P 35,000.00
15 Return J1 P 2,000.00
19 Sales J1 25,000.00

Accounts name: Office Supplies

Date Particulars RF No. Debit Credit
2019
Jan 7 Supplies J1 P 4,500.00

Account name: Accounts Payable

Date Particulars RF No. Debit Credit
2019
Jan 3 Goods J1 P 80,000.00
5 Goods J1 16,000.00
8 Return J1 P 3,000.00
9 Full payment J1 77,000.00
16 Full payment J1 16,000.00

Account name: Notes Payable

Date Particulars RF No. Debit Credit
2019
Jan 17 Loan J1 P 50,000.00
Account name: J. Tan's Capital
Date Particulars RF No. Debit Credit
2019
Jan 2 Investment J1 P 250,000.00

Account name: J. Tan's Drawing

Date Particulars RF No. Debit Credit
2019
Jan 21 Withdrawal J1 P 3,500.00

Account name: Sales

Date Particulars RF No. Debit Credit
2019
Jan 10 Sales J1 P 35,000.00
11 Sales J1 50,000.00
19 Sales J1 25,000.00

Account name: Sales return and allowances

Date Particulars RF No. Debit Credit
2019
Jan 15 Return J1 P 2,000.00

Account name: Purchases

Date Particulars RF No. Debit Credit
2019
Jan 3 Goods J1 P 80,000.00
5 Goods J1 16,000.00
6 Goods J1 20,000.00

Account name: Purchase return and allowance

Date Particulars RF No. Debit Credit
2019
Jan 8 Return J1 P 3,000.00

Account name: Purchase Discount

Date Particulars RF No. Debit Credit
2019
 Jan 9 Full payment J1 P 2,310.00
16 Full payment J1 320.00

Account name: Freight in

Date Particulars RF No. Debit Credit
2019
Jan 22 Transportation J1 P 800.00

Account name: Salaries expense

Date Particulars RF No. Debit Credit
2019
Jan 20 Expenses J1 P 3,500.00

Account name: Communication expenses

Date Particulars RF No. Debit Credit
2019
Jan 4 Expenses J1 P 5,000.00
20 Expenses J1 1,500.00

Account name: Rent expense

Date Particulars RF no. Debit Credit
2019
Jan 20 Expenses J1 P 2,100.00

Account name: Freight out

Date Particulars RF No. Debit Credit
2019
Jan 30 Transportation J1 P 1,100.00
 Account no.: 101
Balance
Debit Credit
P 250,000.00
245,000.00
225,000.00
220,500.00
145,810.00
195,810.00
180,130.00
230,130.00
223,030.00
219,530.00
218,730.00
P 217,630.00

Account no.: 102

Balance
Debit Credit
P 35,000.00
33,000.00
P 58,000.00

Accounts no.: 105

Balance
Debit Credit
P 4,500.00

Account no.: 201

Balance
Debit Credit
P 80,000.00
96,000.00
93,000.00
16,000.00
P 0.00

Account no.: 202

Balance
Debit Credit
P 50,000.00
 Account no.: 301
Balance
Debit Credit
P 250,000.00

Account no.: 302

Balance
Debit Credit
P 3,500.00

Account no.: 401

Balance
Debit Credit
P 35,000.00
85,000.00
P 110,000.00

Account no.: 402

Balance
Debit Credit
P 2,000.00

Account no.: 501

Balance
Debit Credit
P 80,000.00
96,000.00
P 116,000.00

Account no.: 502

Balance
Debit Credit
P 3,000.00

Account no.: 503

Balance
Debit Credit
 P 2,310.00
P 2,630.00

Account no.: 504

Balance
Debit Credit
P 800.00

Account no.: 601

Balance
Debit Credit
P 3,500.00

Account no.: 602

Balance
Debit Credit
P 5,000.00
P 6,500.00

Account no.: 603

Balance
Debit Credit
P 2,100.00

Account no.: 604

Balance
Debit Credit
P 1,100.00
 JT MERCHANDISE
TRIAL BALANCE
For the month ended January 31, 2019

Account no. Account title Debit Credit

101 Cash P 217,630.00
102 Account Receivable 58,000.00
105 Office Supplies 4,500.00
201 Accounts Payable P 0.00
202 Notes Payable 50,000.00
301 J. Tan's Capital 250,000.00
302 J. Tan's Drawing 3,500.00
401 Sales 110,000.00
402 Sales return and allowances 2,000.00
501 Purchases 116,000.00
502 Purchase return and allowances 3,000.00
503 Purchase discount 2,630.00
504 Freight in 800.00
601 Salaries Expense 3,500.00
602 Communication Expense 6,500.00
603 Rent Expense 2,100.00
604 Freight out 1,100.00
TOTAL P 415,630.00 P 415,630.00
 JT MERCHANDISE
STATEMENT OF COST OF GOOD SOLD
For the month ended January 31, 2019

Merchandise inventory, beginning

Add: Purchases P 116,000.00
Freight in 800.00 P 116,800.00
Less: Purchase return and allowances 3,000.00
Purchase discount 2,630.00
Total Goods available for sale 111,170.00
Less: Merchandise Inventory, ending 25,000.00
Cost of Sales P 86,170.00
 JT MERCHANDISE
STATEMENT OF COMPREHENSIVE INCOME
For the month ended January 31, 2019

Sales P 110,000.00
Less: Sales reutrn and allowances P 2,000.00 2,000.00
Net Sales 108,000.00
Less: Cost of Sales 86,170.00
Gross Profit 21,830.00
Less: Operating expenses
Salaries expense 3,500.00
Communication expense 6,500.00
Rent expense 2,100.00
Freight out 1,100.00 13,200.00
Net income P 8,630.00
 JT MERCHANDISE
STATEMENT OF CHANGES IN EQUITY
For the month ended January 31, 2019

J. Tan's Capital, beginning P 250,000.00

Add: Net income 8,630.00
Total 258,630.00
Less: J. Tan's Drawing 3,500.00
J. Tan's Capital, ending P 255,130.00
 JT MERCHANDISE
STATEMENT OF FINANCIAL POSITION
For the month ended January 31, 2019

ASSETS
Current Assets
Cash P 217,630.00
Accounts Receivable 58,000.00
Office Supplies 4,500.00
Merchandise Inventory 25,000.00
Total Current Assets P 305,130.00
Non-current Assets
TOTAL ASSETS P 305,130.00

LIABILITIES AND OWNER'S EQUITY

Current Liabilities
Notes Payable 50,000.00
Total Current Liabilities 50,000.00
Owner's Equity 255,130.00
J. Tan's Capital, ending P 305,130.00
TOTAL LIABILITIES AND OWNER'S EQUIT
 JT MERCHANDISE
STATEMENT OF CASH CLOW
For the month ended January 31, 2019

Operating Activities
Cash Received from:
Sales P 50,000.00

Cash Payment to:

Purchases P 110,370.00
Office Supplies 4,500.00
Expenses 12,100.00
Freight in 800.00
Freight out 1,100.00 128,870.00
Net Cash Flow from Operating Activities P 78,870.00

Financing Activities
J. Tan's Capital 250,00.00
J. Tan's Drawing 3,500.00 246,500.00
Bank Loan 50,000.00
Net Cash Flow from Financing Activities 296,500.00
Cash Balance, ending P 217,630.00