Comprehensive Problem - Merchandising
The Dec. 31 2021 post-closing trial balance for the Ricardo Pangan Company follows:
Ricardo Pangan Company
Post – Closing Trial Balance
December 31, 2021
110 Cash P240,000
120 Accounts Receivable 210,000
130 Merchandise Inventory 730,000
140 Prepaid Rent 90,000
150 Office Supplies 160,000
160 Office Equipment 1,000,000
165 Accumulated Depreciation-Office Equipment P250,000
210 Notes Payable 400,000
220 Accounts Payable 130,000
230 Salaries Payable
310 Pangan, Capital 1,650,000
320 Pangan, Withdrawals
330 Income Summary
410 Sales
420 Sales Returns and Allowances
430 Sales Discounts
510 Purchases
520 Purchases Returns and Allowances
530 Purchases Discounts
540 Transportation In
610 Salaries Expense
620 Rent Expense
630 Office Supplies Expense
640 Depreciation Expense-Office Equipment
650 Interest Expense
P2,430,000 P2,430,000
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Accounts Receivable of P210,000 is related to a sale to R. Loyola on Dec. 28, 2021. All credit sales are 2/10,
n/30. The account payable balance of P130,000 is attributable to a purchase on Dec. 29, 2021 from E.
Samonte Company. All credit purchases are 3/10, n/30.
During the month of Jan. 2021, the following transactions were completed:
Jan. 2 Sold merchandise on credit to B. Bandonell, P240,000. Invoice no. 316.
3 Purchase merchandise on account form T. Arenas Company, P90,000 Invoice dated Jan. 2
4 Collected amount due from Dec. 28, sale to R. Loyola les discounts.
5 Sold merchandise for cash, P430,000
7 Paid amount due to E. Samonte Company for the purchase of Dec. 29, 2021 less discounts. Issued check
no. 83
8 Sold merchandise on account to G. Sevidal, P310,000. Invoice no. 317
9 Returned merchandise purchased from T. Arenas Company, P10,000
10 Collected amount due from B. Bandonell less discounts.
11 Purchase merchandise on account from L. Viray Company, P120,000 Invoice dated Jan. 10
11 Paid T. Arenas Company amount due less returns and discounts. Issued check no. 84
12 Purchased merchandise for cash, P70,000. Issued check no. 85
13 Sold merchandise on account to M. Cerda, P130,000. Invoice no. 318
14 Paid interest on the notes payable, P10,000. Issued check no. 86
15 Paid salaries, P80,000, Issued check no. 87
17 Purchase merchandise on account from E. Samonte Company. P190,000. Invoice dated Jan. 14
18 Sold merchandise on account to R. Loyola, P460,000. Invoice no. 319.
19 Pangan withdrew P100,000 from the business. Issued check no. 88
21 Acquired office supplies for cash P40,000. Issued check no. 89
22 Paid freight charges on the merchandise purchased from E. Samonte Company on Jan. 17, P20,000.
Issued check no. 90
22 Collected amount due from M. Cerda less discounts.
23 Sold merchandise on credit to B. Bandonell, P110,000. Invoice no. 320.
24 Received returned merchandise from G. Sevidal, P30,000.
25 Received amount due from G. Sevidal on the sale of Jan. 8 less returns.
25 Purchase merchandise on account from A. Braganza Company. P340,000. Invoice dated Jan. 24
26 Paid P90,000 to E. Samonte Company in partial payment of account issued check no. 91
27 Received P170,000 load from the First Morayta Bank and issued a note payable.
28 Purchased merchandise on account from L.Viray Company, P270,000. Invoice dated Jan. 27.
29 Sold merchandise on account to M.Cerda P170,000. Invoice no. 321
30 Purchased merchandise on account from T. Arenas Company, P360,000. Invoice dated Jan. 29
30 Sold merchandise for cash, P1,310,000
Required:
1. Enter the Dec. 31, 2021 post-closing trial balance amounts in the general and subsidiary ledgers.
2. Record the transactions for the month of January using special journals.
3. Total the journals and post to the general and subsidiary ledger accounts. Use the following journal page
numbers:
Sales Journal 16
Purchases Journal 25
Cash Receipts Journal 35
Cash Payments Journal 43
General Journal 13
4. Determine the balance in each account and prepare the unadjusted trial balance in the worksheet.
5. Prepare the following adjusting entries in the worksheet:
a. Prepaid rent of P30,000 has expired
b. Office supplies at month-end amounted to P70,000
c. Monthly depreciation on the office equipment amounted to P10,000
d. Salaries of P90,000 have accrued.
6. Complete the worksheet. The ending inventory amounted to P470,000
7. Prepare the financial statements
8. Record the adjusting and closing entries in the general journal. Post entries to the general ledger.
9. Prepare schedules of accounts receivable and accounts payable
Note = Please use proper forms and do proper formats (Excel Files)
