Mr. Lopez opened a mini grocery store with business name Lopez Fiesta Mart. Operations began on January 1, 2022, and the following transactions were completed during the month:
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1 |
Mr. Lopez withdrew ₱150,000 from a personal savings account and used it to open a new account in the name of Lopez Fiesta Mart. |
2 |
Bought grocery supplies on account ₱10,700. |
4 |
Acquired a service vehicle costing ₱76,000. A payment of ₱25,000 Cash was made and a note payable given for the ₱51,000 remainder payable for 6 equal monthly installment. |
6 |
Purchased merchandise from Puregold ₱49,500, terms 5/10, 3/20. |
7 |
Paid ₱1,600 delivery charge for January 6 transactions. |
8 |
Paid for three months of advertising and recorded Prepaid Advertising in the amount of ₱6,000. |
11 |
Sold merchandise on account ₱42,000 with 40% mark-up from the inventory cost of ₱30,000, term 2/10, n/30. |
12 |
Paid ₱1,200 freight for January 11 transactions. |
14 |
Returned defective merchandise to Puregold amounting to ₱4,500. |
15 |
Paid salaries, ₱5,600. |
16 |
Signed a promissory note for ₱30,000 loaned amount from Commonwealth Bank. |
17 |
Received returned merchandise from customer ₱3,500. |
18 |
Paid ₱5,700 of the amount owed from the transaction of January 2. |
19 |
Purchase additional groceries from Talavera Supermarket amounting to ₱44,000. |
20 |
Collected full settlement of a customer from January 11 transactions. |
24 |
Paid telephone expense, ₱1,600. |
25 |
Paid building rentals for the month, ₱4,800. |
26 |
Settled accounts to Puregold. |
27 |
₱41,750 cost of merchandise sold for ₱58,450. |
28 |
Withdrew ₱20,000 from the business. |
29 |
Paid miscellaneous expenses, ₱3,430. |
30 |
Paid the first installment of the note payable on Service Vehicle, ₱8,500. |
31 |
Paid Salaries ₱5,100, net of the following deductions: SSS, 380; Pag-IBIG, 100; Philhealth, 220 |
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The Merchandise Inventory at the end of the of the month is ₱20,000. |
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Use the following accounts in Journalizing the transactions:
Cash (110); Accounts Receivable (120); Supplies (130); Prepaid Advertising (140); Merchandise Inventory (150); Service Vehicle (160);
Accounts Payable (210); SSS Payable (220); Pag-IBIG Payable (230); Philhealth Payable (240); Notes Payable (250);
Lopez, Capital (310); Lopez, Withdrawals (320),
Sales (410); Sales Returns & Allowances (420); Sales Discount (430);
Purchases (510); Freight-in (520); Purchase Returns & Allowances (530); Purchase Discount (540);
Freight-out (610); Salaries Expense (620); Rent Expense (630) Telephone Expense (640); and Miscellaneous Expense (650).
Income Summary (700) |
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