NAME:

PERIODIC METHOD

METRO DAVAO DISTRIBUTORS

Chart of Accounts
ASSETS INCOME
101 Cash 111 Sales
102 Accounts Receivable 112 Sales Discount
103 Merchandise Inventory 113 Sales Returns & Allowances
104 Supplies COSTS
105 Furniture & Equipment 114 Purchases
106 Transportation Equipment 115 Purchase Discount
LIABILITY 116 Purchase Returns & Allowances
107 Accounts Payable 117 Freight-in
EXPENSES
OWNER’S EQUITY 118 Freight-out
108 M.D, Capital 119 Salaries Expense
109 M.D, Drawing 120 Utilities Expense
110 Income Summary 121 Taxes & Licenses
122 Rental Expense

Min Danao decided to start with a business of her own under the trade name Metro Davao
Distributors. The following are the transactions for the month of February 2018. Merchandise
inventory end is P 214,960.

Feb 1 Ms. Danao invested the following:

- Cash, P 850,000
- Merchandise with a fair value of P 250,000
- Furniture & Equipment with a fair value of P 1,500,000
- Service Vehicle with a fair value of P 1,800,000
- Supplies valued at P 15,000
2 Purchased merchandise in cash from Tagum Co. costing P 150,000 and paid freight and
handling, P 2,500.
3 Returned P 3,000 cost of merchandise to Tagum Co. due to some defects and no
replacements have been made.
5 Sold merchandise for cash, P 120,000 to Gensan Grocery and gave 3% trade discount and
paid freight on shipment, P 3,500.
7 Purchased merchandise on account from Lagao Co., P 50,000. Term: 3/10, n/30.
8 Sold merchandise on account to Bula Trading, P 185,000. Term: 2/10, n/30. Paid freight on
shipment, P 1,200.
9 Purchased merchandise on account from Uhaw, Inc. costing P 230,000. Term: 2/10, EOM.
10 Received P 4,000 worth of merchandise from Bula Trading for not conforming with the order
and was not replaced.
12 Paid the account with Lagao Co. in full.
13 Sold merchandise on account to Banate Co., P 80,000. Term: 2/10, n/30.
15 Purchased merchandise on account from Labangal Enterprise, P 70,000. Term: 3/10, n/30.
18 Returned P 1,500 cost of merchandise to Labangal Enterprises due to bad order and was not
replaced
18 Collected in full the account of Bula Trading, P 177,380.
20 Sold merchandise for cash, P 50,000 to Calumpang Enterprises and gave a 1% trade
discount.
22 Received P 500 worth of merchandise from Calumpang Enterprises as item breakage and
was not replace due to out of stock.
23 Collected from Banate Co. The amount of P 78,400 net of 2% discount on Feb. 13 sales on
account.
26 Sold merchandise on account to Katangawan Commercial, P 420,000. Term: 3/10, EOM.
28 Paid the following expenses: Salaries, P 15,000; Light & Water (Utilities), P 5,800; Taxes &
Licenses, P 6,500; Rent Expense, P 10,000
28 Withdrew P 20,000 for personal use of Ms. Danao.
28 Sold merchandise on account to Mabuhay Superstore, P 35,000. Term: 2/10, n/30.

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NAME:

GENERAL JOURNAL GJ1

2018 PARTICULARS F Debit Credit

Feb 1 Cash 101 850,000

Merchandise Inventory 103 250,000
Furniture & Equipment 105 1,500,000
Transportation Equipment 106 1,800,000
Supplies 104 15,000
M.D, Capital 108 4,415,000
-Investment by the owner
2 Purchases 114 150,000
Cash 101 150,000
-Purchase of merchandise for cash
Freight-in 117 2,500
Cash 101 2,500
-Payment of freight
3 Cash 101 3,000
Purchase returns and allowances 116 3,000
-Return of merchandise purchased
5 Cash 101 116,400
Sales 111 116,400
-Sale of merchandise for cash
Freight-out 118 3,500
Cash 101 3,500
-Freight on merchandise sold
7 Purchases 114 50,000
Accounts Payable 106 50,000
-Purchase of merchandise on account
8 Accounts Receivable 102 185,000
Sales 111 185,000
-Merchandise sold on account
Freight-out 118 1,200
Cash 101 1,200
-Freight on merchandise sold
9 Purchases 114 230,000
Accounts Payable 106 230,000
-Purchase of merchandise on account
10 Sales returns and allowances 113 4,000
Accounts Receivable 102 4,000
-Return of merchandise sold on account
12 Accounts Payable 107 50,000
Purchase Discount 115 1,500
Cash 101 48,500
-Payment with a discount
13 Accounts Receivable 102 80,000
Sales 111 80,000
-Merchandise sold on account
15 Purchases 114 70,000
Accounts Payable 107 70,000
-Purchase of merchandise on account
18 Accounts Payable 107 1,500
Purchase returns and allowances 116 1,500
-Return of merchandise purchased
18 Cash 101 177,380
Sales Discount 112 3,620
Accounts Receivable 102 181,000
-Collection in full

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NAME:
GJ2
GENERAL JOURNAL

2018 PARTICULARS F Debit Credit

20 Cash 101 49,500

Sales 111 49,500
-Sale of merchandise with trade discount
22 Sales returns and allowances 113 500
Cash 101 500
-Return of merchandise sold for cash
23 Cash 101 78,400
Sales Discount 112 1,600
Accounts Receivable 102 80,000
-Collection from sales on account
26 Accounts Receivable 102 420,000
Sales 111 420,000
-Merchandise sold on account
28 Salaries Expense 119 15,000
Utilities Expense 120 5,800
Taxes and Licenses 121 6,500
Rental Expense 122 10,000
Cash 101 37,300
-Payment of various expenses
28 M.D, Drawing 109 20,000
Cash 101 20,000
-Withdrawal by the owner
28 Accounts Receivable 102 35,000
Sales 111 35,000
-Merchandise sold on account

GENERAL LEDGER

CASH 101
Date Particulars Ref Debit Credit Balance
Feb 1 Investment by the owner GJ-1 850,000 850,000
2 Purchase of merchandise for cash GJ-1 150,000 700,000
2 Payment of freight GJ-1 2,500 697,500
3 Return of merchandise purchased GJ-1 3,000 700,500
5 Sale of merchandise for cash GJ-1 116,400 816,900
5 Freight on merchandise sold GJ-1 3,500 813,400
8 Freight on merchandise sold GJ-1 1,200 812,200
12 Payment with a discount GJ-1 48,500 763,700
18 Collection in full GJ-1 177,380 941,080
20 Sales of merchandise with trade discount GJ-2 49,500 990,580
22 Return of merchandise sold for cash GJ-2 500 990,080
23 Collection from sales on account GJ-2 78,400 1,068,480
28 Payment of various expenses GJ-2 37,300 1,031,180
28 Withdrawal by the owner GJ-2 20,000 1,011,180

ACCOUNTS RECEIVABLE 102

Date Particulars Ref Debit Credit Balance
Feb 8 Merchandise sold on account GJ-1 185,000 185,000
10 Return of merchandise sold on account GJ-1 4,000 181,000
13 Merchandise sold on account GJ-1 80,000 261,000
18 Collection in full GJ-1 181,000 80,000
23 Collection from sales on account GJ-2 80,000 0
26 Merchandise sold on account GJ-2 420,000 420,000
28 Merchandise sold on account GJ-2 35,000 455,000

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 MERCHANDISE INVENTORY 103
Date Particulars Ref Debit Credit Balance
Feb 1 Investment by the owner GJ-1 250,000 250,000
28 Merchandise inventory, beg (Closing entry) GJ-2 250,000 0
Merchandise inventory, end (Closing entry) GJ-2 214,960 214,960

SUPPLIES 104
Date Particulars Ref Debit Credit Balance
Feb 1 Investment by the owner GJ-1 15,000 15,000

FURNITURE & EQUIPMENT 105

Date Particulars Ref Debit Credit Balance
Feb 1 Investment by the owner GJ-1 1,500,000 1,500,000

TRANSPORTATION EQUIPMENT 106

Date Particulars Ref Debit Credit Balance
Feb 1 Investment by the owner GJ-1 1,800,000 1,800,000

ACCOUNTS PAYABLE 107

Date Particulars Ref Debit Credit Balance
Feb 7 Purchase of merchandise on account GJ-1 50,000 50,000
9 Purchase of merchandise on account GJ-1 230,000 280,000
12 Payment with a discount GJ-1 50,000 230,000
15 Purchase of merchandise on account GJ-1 70,000 300,000
18 Return of merchandise purchased GJ-1 1,500 298,500

M.D, CAPITAL 108

Date Particulars Ref Debit Credit Balance
Feb 1 Investment by the owner GJ-1 4,415,000 4,415,000
28 Net Income (Closing Entry) GJ-2 302,640 4,717,640
28 Withdrawal (Closing Entry) GJ-2 20,000 4,697,640

M.D, DRAWING 109

Date Particulars Ref Debit Credit Balance
Feb28 Withdrawal by the owner GJ-1 20,000 20,000
28 Closing Entry GJ-2 20,000 0

INCOME SUMMARY 110

Date Particulars Ref Debit Credit Balance
Feb28 Revenue Account (Closing Entry) GJ-2 876,180 876,180
28 Cost Account (Closing Entry) GJ-2 531,540 344,640
28 Expense Account (Closing Entry) GJ-2 42,000 302,640
28 Closing Entry GJ-2 302,640 0

SALES 111
Date Particulars Ref Debit Credit Balance
Feb 5 Sale of merchandise for cash GJ-1 116,400 116,400
8 Merchandise sold on account GJ-1 185,000 301,400
13 Merchandise sold on account GJ-1 80,000 381,400
20 Sale of merchandise with trade discount GJ-2 49,500 430,900
26 Merchandise sold on account GJ-2 420,000 850,900
28 Merchandise sold on account GJ-2 35,000 885,900
28 Closing Entry GJ-2 885,900 0

SALES DISCOUNT 112

Date Particulars Ref Debit Credit Balance
Feb18 Collection in full GJ-1 3,620 3,620
23 Collection from sales on account GJ-2 1,600 5,220
28 Closing Entry GJ-2 5,220 0

SALES RETURNS AND ALLOWANCES 113

Date Particulars Ref Debit Credit Balance
Feb10 Return of merchandise sold on account GJ-1 4,000 4,000
22 Return of merchandise sold for cash GJ-2 500 4,500
28 Closing Entry GJ-2 4,500 0

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 PURCHASES 114
Date Particulars Ref Debit Credit Balance
Feb 2 Purchase of merchandise for cash GJ-1 150,000 150,000
7 Purchase of merchandise on account GJ-1 50,000 200,000
9 Purchase of merchandise on account GJ-1 230,000 430,000
15 Purchase of merchandise on account GJ-1 70,000 500,000
28 Closing Entry GJ-2 500,000 0

PURCHASE DISCOUNT 115

Date Particulars Ref Debit Credit Balance
Feb12 Payment with discount GJ-1 1,500 1,500
28 Closing Entry GJ-2 1,500 0

PURCHASE RETURNS AND ALLOWANCES 116

Date Particulars Ref Debit Credit Balance
Feb 3 Return of merchandise purchased GJ-1 3,000 3,000
18 Return of merchandise purchased on account GJ-1 1,500 4,500
28 Closing Entry GJ-2 4,500 0

FREIGHT- IN 117
Date Particulars Ref Debit Credit Balance
Feb 2 Payment of freight GJ-1 2,500 2,500
28 Closing Entry GJ-2 2,500 0

FREIGHT- OUT 118

Date Particulars Ref Debit Credit Balance
Feb 5 Freight on merchandise sold GJ-1 3,500 3,500
8 Freight on merchandise sold GJ-1 1,200 4,700
28 Closing Entry GJ-2 4,700 0

SALARIES EXPENSE 119

Date Particulars Ref Debit Credit Balance
Feb28 Payment of expense GJ-2 15,000 15,000
28 Closing Entry GJ-2 15,000 0

UTILITIES EXPENSE 120

Date Particulars Ref Debit Credit Balance
Feb28 Payment of expense GJ-2 5,800 5,800
28 Closing Entry GJ-2 5,800 0

TAXES AND LICENSES 121

Date Particulars Ref Debit Credit Balance
Feb28 Payment of expense GJ-2 6,500 6,500
28 Closing Entry GJ-2 6,500 0

RENTAL EXPENSE 122

Date Particulars Ref Debit Credit Balance
Feb28 Payment of expense GJ-2 10,000 10,000
28 Closing Entry GJ-2 10,000 0

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NAME:

TRIAL BALANCE

METRO DAVAO DISTRIBUTORS

Trial Balance
February 28, 20A
Accounts Debit Credit
Cash 1,011,180
Accounts Receivable 455,000
Merchandise Inventory, beg 250,000
Supplies 15,000
Furniture & Equipment 1,500,000
Transportation Equipment 1,800,000
Accounts Payable 298,500
M.D, Capital 4,415,000
M.D, Drawing 20,000
Sales 885,900
Sales Discount 5,220
Sales Returns and Allowances 4,500
Purchases 500,000
Purchase Discount 1,500
Purchase Returns and Allowances 4,500
Freight-in 2,500
Freight-out 4,700
Salaries Expense 15,000
Utilities Expense 5,800
Taxes and Licenses 6,500
Rental Expense 10,000
TOTAL P 5,605,400 P 5,605,400

STATEMENT OF COST OF GOODS SOLD

METRO DAVAO DISTRIBUTORS

Statement of Cost of Goods Sold
For the Period Ended February 28, 20A

Merchandise Inventory, beg P 250,000

Purchases P 500,000
Less:Purchase Discount P 1,500
Purchase Returns and Allowances 4,500 (6,000)
Net Purchases 494,000
Add: Freight-in 2,500 496,500
Goods Available for Sale 746,500
Less: Merchandise Inventory, end (214,960)
Cost of Goods Sold P 531,540

INCOME STATEMENT

METRO DAVAO DISTRIBUTORS

Income Statement
For the Period Ended February 28, 20A

Sales P 885,900
Less:Sales Discount P 5,220
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 Sales Returns and Allowances 4,500 (9,720)
Net Sales 876,180
Less: Cost of Goods Sold (531,540)
Gross Profit 344,640
Less: Operating Expenses
Freight-out P 4,700
Salaries Expense 15,000
Utilities Expense 5,800
Taxes and Licenses 6,500
Rental Expense 10,000 (42,000)
Net Income P 302,640

STATEMENT OF CHANGES IN EQUITY

METRO DAVAO DISTRIBUTORS

Statement of Changes in Equity
As of February 28, 20A

M.D, Capital, beg P 4,415,000

Add: Additional Investment P -0-
Net Income 302,640
Less: M.D, Drawing (20,000) 282,640
M.D, Capital, end P 4,697,640

BALANCE SHEET

METRO DAVAO DISTRIBUTORS

Balance Sheet
As of February 28, 20A
Assets
Current Assets:
Cash P 1,011,180
Accounts Receivable 455,000
Merchandise Inventory 214,960
Supplies 15,000 P 1,696,140
Non - Current Assets:
Furniture & Equipment 1,500,000
Transportation Equipment 1,800,000 3,300,000
Total Assets P 4,996,140
Liabilities & Owner’s Equity
Accounts Payable 298,500

M.D, Capital 4,697,640

Total Liabilities & Owner’s Equity P 4,996,140

STATEMENT OF CASH FLOWS

METRO DAVAO DISTRIBUTORS

Statement of Cash flows
February 28, 20A
Cash used for operating activities:
Cash sales P 165,900
Collection of accounts receivable 255,780
Refund received from supplier 3,000
Cash purchases 150,000
Payment of accounts payable 48,500
Payment of freight 7,200
Refund made to customers 500

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 Payment of various expenses 37,300
Net cash provided by operating activities P 181,180
Cash used for investing activities:
Net cash provided by investing activities 0
Cash used for financing activities:
Investment by the owner P 850,000
Withdrawal by the owner 20,000
Net cash provided by financing activities 830,000
Cash balance P 1,011,180

2018 PARTICULARS F Debit Credit

CLOSING ENTRIES
Feb 28 Sales 111 885,900
Sales Discount 112 5,220
Sales returns and allowances 113 4,500
Income Summary 110 876,180
-To close the revenue account
Feb 28 Merchandise inventory, end 103 200,000
Purchase Discount 115 1,500
Purchase returns and allowances 116 4,500
Income summary 110 546,500
Merchandise inventory, beg 103 250,000
Purchases 114 500,000
Freight-in 117 2,500
-To close cost account and establish ending inventory account
Feb 28 Income summary 110 42,000
Freight-out 118 4,700
Salaries Expense 119 15,000
Utilities Expense 120 5,800
Taxes and Licenses 121 6,500
Rental Expense 122 10,000
-To close expense accounts
Feb 28 Income summary 110 287,680
M.D, Capital 108 287,680
-To close income summary account
Feb 28 M.D, Capital 108 20,000
M.D, Drawing 109 20,000
-To close income drawing account

NAME:

POST-CLOSING TRIAL BALANCE

METRO DAVAO DISTRIBUTORS

Post-Closing Trial Balance
February 28, 20A
Accounts Debit Credit
Cash 1,011,180
Accounts Receivable 455,000
Merchandise Inventory, end 214,960
Supplies 15,000
Furniture & Equipment 1,500,000
Transportation Equipment 1,800,000
Accounts Payable 298,500
M.D, Capital 4,682,680
TOTAL P 4,996,140 P 4,996,140

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