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    Rose Marie Hermosa
    Austra Mechanical Supply began operations in May 2017 with owner Charles Yee investing $100,000 in capital. Throughout the month, the company purchased inventory on account and for cash, sold inventory for cash and on credit, paid operating expenses, and took out a loan. By the end of May, Austra Mechanical Supply had completed various merchandising transactions and was preparing its financial statements.

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    Pre Assessment

    Uploaded by

    Rose Marie Hermosa
    461 views2 pages
    Austra Mechanical Supply began operations in May 2017 with owner Charles Yee investing $100,000 in capital. Throughout the month, the company purchased inventory on account and for cash, sold inventory for cash and on credit, paid operating expenses, and took out a loan. By the end of May, Austra Mechanical Supply had completed various merchandising transactions and was preparing its financial statements.

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    Austra Mechanical Supply began operations in May 2017 with owner Charles Yee investing $100,000 in capital. Throughout the month, the company purchased inventory on account and for cash, sold inventory for cash and on credit, paid operating expenses, and took out a loan. By the end of May, Austra Mechanical Supply had completed various merchandising transactions and was preparing its financial statements.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    461 views2 pages

    Pre Assessment

    Uploaded by

    Rose Marie Hermosa
    Austra Mechanical Supply began operations in May 2017 with owner Charles Yee investing $100,000 in capital. Throughout the month, the company purchased inventory on account and for cash, sold inventory for cash and on credit, paid operating expenses, and took out a loan. By the end of May, Austra Mechanical Supply had completed various merchandising transactions and was preparing its financial statements.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    AUSTRA MECHANICAL SUPPLY, Chart of Accounts includes the following:

    101 Cash 401 Sales


    112 Accounts Receivable 412 Sales Returns and
    120 Merchandise Inventory Allowances
    126 Supplies 420 Sales Discount
    155 Equipment 522 Cost of Goods Sold
    201 Accounts Payable 601 Advertising Expenses
    210 Notes Payable 644 Freight Out
    301 C. Y., Capital 701 Salaries
    310 C. Y., Drawings 710 Rent Expense
    720 Utilities
    800 Income Summary

    Instruction: Using the sheets provided, submit the following in any order:
    1 May 2017 Journal Entries with explanation
    2 General Ledger posting for the month
    3 Trial Balance
    4 Statement of Performance
    5 Closing Entries with explanation
    6 Post-Closing Trial balance
    7 Statement of Financial Position
    8 Statement of Cash Flow
    9 Statement of Changes in Owner's Equity
    Austra Mechanical Supply completed the following merchandising
    transactions in the month of May 2017 as follows:

    DATE
    MAY TRANSACTIONS
    2017
    Mr. Charles Yee, the owner started the Austra Mechanical Supply by investing
    1 P100,000
    Purchased merchandise on account from HoTong Supply Co. P30, 000, terms
    1 2/10, n/30.
    Sold 15,000 worth of goods for cash. The merchandise sold had a cost of
    3 P8, 000.
    5 Sold P12, 000 worth of goods on credit to Bravo Lines Inc. with credit terms
    2/10,n/30 FOB destination. The cost for these goods was P6,500
    6 Paid P500 for the delivery of goods to Bravo Lines Inc.
    Received P1, 200 credit memo from HoTong Supply Co. for the return of
    6 damaged goods.
    10 Purchased merchandise for cash P25,000
    11 Made full payment to HoTong Supply Co.
    11 Purchased supplies for cash P2,000.00
    13 Purchased merchandise for cash P30,000
    Made sales to 2Go Shipping for P24, 000 with credit term 2/10, n/30 FOB
    14 destination. The goods cost P12,700
    15 Received payment from Bravo Lines Inc. regarding the May 5 sales.
    15 Paid salaries of P6,500
    16 Issued a credit memo for P1, 000.00 to 2Go Shipping for the return of
    damaged goods. The returned goods is valued P600.00 and were returned to
    inventory
    17 Received refund for poor quality merchandise from cash purchases P700
    18 C. Yee withdrew cash from the business P12,000
    19 Purchased office equipment for cash P15,000
    Purchased merchandise from Belmont Enterprises on account P18, 000, credit
    19 terms 2/10,n/30 FOB Shipping Point.
    The business made a loan at City Bank and issued promissory note in the
    20 amount of P50,000
    22 Paid freight for the purchase of merchandise P750
    25 Sold merchandise for cash P33, 300 cost of sold P18, 300.
    Made partial payment to Belmont Enterprises P10, 000 no discount for partial
    25 payment made.
    Made refunds to cash customer for defective merchandise P1,500, costing
    29 P 900
    30 Received payment from 2Go Shipping
    30 Sold merchandise on account P13, 500. Cost of goods P7,200
    Paid the following operating expenses for the month: Salaries 6,500;
    31 rent 7,000; utilities P1,500 advertising P1,200

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