Chua Company Sample Problem (Periodic) Docx

Case Problem 1: Chua Enterprise. Complete the Accounting Cycle using a Periodic Inventory System.
September 1 The Business, Chua Enterprise, was registered as a single proprietorship with the
Department of Trade and Industry. Selena Chua invested P100,000.
2 Bought merchandise on account from ABC Co., P19,500, term 2/10,n/30.
3 Bought office supplies on cash basis for P500
3 Bought computer equipment for 25,000.00. Paid 10,000.00 cash and the
remaining 15,000 will be payable in 3 months.
4 Sold merchandise on account P10,200, FOB Destination, terms 2/10, n/30.
5 Paid P200 freight on September 4 sale.
7 Received credit from ABC Co. for merchandise returned P500
10 Paid ABC Co.
13 Collected from September 4 customers.
14 Bought merchandise on cash basis for P10,200
15 Salaries paid P3,000
15 Borrowed money from RCBC Bank, signed a promissory note for P25,000
16 Received refund from a supplier on cash purchase on September 14, P500
18 Bought merchandise from LTD Inc., P14,200, FOB Shipping point, terms,
2/10,n/30.
20 Paid freight on September 18 purchase, P500
23 Sold merchandise for 15,000.00 on cash basis and 5,000.00 on account.
26 Bought merchandise for cash, P12,300
28 Selena Chua got cash from the business, P2,000.
29 Made refund to cash customer for defective merchandise, P800.
30 Sold merchandise on account, P13,700, n/30
30 Paid LTD Inc
30 Paid the following: Advertising,P1,000; Utilities, P400; Rent, P3,500; Salaries,
P3,000.
30 Merchandise Inventory is 25,000.00
Chart of
Accounts
Use for Journalization and Posting to Ledger
100 Assets 400 Income

101 Cash 401 Sales
105 Accounts Receivables 405 Sales Returns and Allowances
115 Merchandise Inventory 410 Sales Discounts
120 Supplies 500 Expenses
150 Equipment 501 Purchases
200 Liabilities 502 Purchase Returns and Allowances
201 Accounts Payable 503 Purchase Discounts
202 Notes Payable 504 Freight In
300 Equity 505 Advertising
301 Chua, Capital 506 Freight Out
302 Chua, Drawings 510 Rent Expense
530 Salaries
540 Utilities
601 Income, Summary
Chart of Accounts
Use for Financial Statements Preparation
100 Assets 400 Income

101 Cash & Cash Equivalents 401
105 Receivables 405 Net Sales
115 Inventories 410
120 Prepaid Expenses 500 Expenses
150 Property, Plant and Equipment 501
200 Liabilities 502 Cost of Goods Sold
201 Accounts Payable 503
202 Notes Payable 504
300 Equity 505 Advertising
301 Chua, Capital 506 Freight Out
302 Chua, Drawings 510 Rent Expense
530 Salaries
540 Utilities
601 Income, Summary
Case Problem 2
2.1. Jaz Company borrowed P100,000 on December 1 by signing a six – month note that specifies interest at an
annual percentage rate (APR) of 12%. No interest or principal payment is due until the note matures on May 31.
Jaz Company prepares financial statements at the end of each calendar month. Provide an answer for the month
end of January only.
2.2. On December 1, TYL paid its insurance agent P2,400 for the annual insurance premium covering the twelve –
month period beginning on December 1. The P2,400 premium was recorded on December 1 with a debit to the
current asset Prepaid Insurance and credit to the current asset Cash. TYL Company prepares financial
statements at the end of each calendar month. Provide answer for the month end of March only.
2.3. On December 1, ABC began operations. On December 4, it purchased P1,500 of supplies and recorded the
transaction with a debit to the income statement account Supplies Expense and a credit to the current liability
Accounts Payable. ABC prepares monthly financial statement at the end of each calendar month. At the end of
the day on December 31, ABC Company estimated that P700 of the supplies were still on hand in the supply
room.
Requirement: Answer the questions pertaining to the adjusting entries for each of three cases. Use the answer sheet
provided for Case 2.
What is the… Case 2.1 Case 2.2 Case 2.3

Date of the Adjusting
entry
Debit account title
Credit account title
Debit & Credit amount

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Case Problem 1: Chua Enterprise. Complete the Accounting Cycle using a Periodic Inventory System.

Use for Journalization and Posting to Ledger

100 Assets 400 Income

Use for Financial Statements Preparation

100 Assets 400 Income

What is the… Case 2.1 Case 2.2 Case 2.3

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