The following were the transactions of Krissy Clothing Company for the

month of September 2019.

Date ( 2019) Transactions

Sept. 1 Invested ₱200,000 cash, a parcel of land worth ₱500,000 and a building worth
₱800,000 to be used in the business.
3 Bought equipment worth ₱60,000.
5 Bought office supplies worth ₱30,000.
7 Purchased merchandise on account from JANNAH Company worth ₱200,000 term:
3/10, n/30.
8 Sold merchandise on account to KARYME Company worth ₱200,000. The cost of
merchandise sold is ₱100,000 with a term of 2/15, n/30.
9 Returned ₱50,000 worth of merchandise purchased last September 7.
10 Paid ₱10,000 for the freight charges for delivering merchandise last September 7.
12 Paid the full amount for the merchandise purchased from JANNAH Company.
14 Bought insurance worth ₱3,000 that is good for 3 months.
15 Borrowed cash of ₱50,000 from LEI Company and issued a note.
16 Received returns from KARYME Company worth ₱40,000 and cost of ₱20,000.
18 Paid of ₱10,000 for the freight charges from September 8 transaction.
19 Received full payment from KARYME Company.
20 Purchased merchandise worth ₱50,000.
21 Sold merchandise for cash ₱100,000. The cost of good sold is ₱50,000.
22 Paid ₱30,000 for the note issued last September 15.
24 Paid salaries to workers ₱10,000.
25 Purchased merchandise on account from VEMMY Company worth ₱150,000 with a
down payment of ₱50,000 and a term of n/15.
26 Paid ₱50,000 worth of merchandise from VEMMY Company.
27 Sold merchandise on account to YELLOW Company worth ₱100,000 with a down
payment of ₱20,000. The cost of merchandise sold is ₱50,000 with a term of n/30.
28 Received payment from YELLOW Company, ₱50,000.
29 Paid advertisement worth ₱5,000.
30 Krissy withdrew ₱20,000 cash from the business.

Adjustments

1. Salaries to workers ₱10,000 was incurred but not yet paid.

2. Prepaid insurance unexpired portion is ₱2,000.

SUBMITTED BY:

Apple Kris Y. Patulilic

Jannah Lei B. Abao

Juvem Karyme G. Silva

 Chart of Accounts

ASSETS
100 Cash
110 Accounts Receivable
120 Merchandise Inventory
130 Office Supply
140 Prepaid Insurance
150 Land
160 Building
170 Equipment

LIABILITIES
200 Accounts Payable
210 Notes Payable
220 Salaries Payable

EQUITY
300 Krissy, Capital
310 Krissy, Withdrawal
320 Sales Return and Allowances
330 Sales Discount
340 Sales
350 Cost of Good Sold (COGS)
360 Salaries Expense
370 Insurance Expense
380 Freight Out
390 Advertising Expense
 GENERAL JOURNAL J1
Date Account Title Ref. Debit Credit
Septembe and
r 2019 Explanation
1 Cash 100 ₱200,000
Land 150 500,000
Building 160 800,000
Krissy, Capital 300 ₱1,500,000
Initial Investment

3 Equipment 170 60,000

Cash 100 60,000
Bought equipment cash basis

5 Office Supplies 130 30,000

Cash 100 30,000
Bought office supplies cash basis

7 Merchandise Inventory 120 200,000

Accounts Payable 200 200,000
Purchased merchandise term:
3/10, n/30

8 Accounts Receivable 110 200,000

Sales 340 200,000
Sold merchandise on account

Cost of Good Sold 350 100,000

Merchandise Inventory 120 100,000
Sold merchandise term of 2/15,
n/30

9 Accounts Payable 200 50,000

Merchandise Inventory 120 50,000
Returned merchandise to
JANNAH Company

10 Merchandise Inventory 120 10,000

Cash 100 10,000
Paid freight charges

12 Accounts Payable 200 150,000

Merchandise Inventory 120 4,500
Cash 100 145,500
Paid full amount for merchandise
purchased last September 7
 Date Account Title Ref. Debit Credit
Septembe and
r 2019 Explanation
14 Prepaid Insurance 140 ₱3,000
Cash 100 ₱3,000
Bought prepaid insurance

15 Cash 100 50,000

Notes Payable 210 50,000
Borrowed cash from LEI
Company

16 Sales Return and Allowances 320 40,000

Accounts Payable 200 40,000
Received returns from KARYME
Company

18 Freight Out 380 10,000

Cash 100 10,000
Paid freight charges

19 Cash 100 156,800

Sales Discount 330 3,200
Accounts Receivable 110 160,000
Received full payment from
KARYME Company

20 Merchandise Inventory 120 50,000

Cash 100 50,000
Purchased merchandise cash
basis

21 Cash 100 100,000

Sales 340 100,000
Sold merchandise cash basis

Cost of Good Sold 350 50,000

Merchandise Inventory 120 50,000
Sold merchandise

22 Notes Payable 210 30,000

Cash 100 30,000
Paid the issued note

24 Salaries Expense 360 10,000

Cash 100 10,000
Paid salaries for workers
 Date Account Title Ref. Debit Credit
Septembe and
r 2019 Explanation
25 Merchandise Inventory 120 ₱150,000
Cash 100 ₱50,000
Accounts Payable 200 100,000
Purchased merchandise term of
n/15

26 Accounts Payable 200 50,000

Cash 100 50,000
Paid merchandise from
September 25 transaction

27 Cash 100 20,000

Accounts Receivable 110 80,000
Sales 340 100,000
Sold merchandise term n/30

Cash 100 50,000

Merchandise Inventory 120 50,000
Sold merchandise term n/30

28 Cash 100 50,000

Accounts Receivable 110 50,000
Received payment from YELLOW
Company

29 Advertising Expense 390 5,000

Cash 100 5,000
Paid advertisement

30 Krissy, Withdrawal 310 20,000

Cash 100 20,000
Withdrew cash
 GENERAL LEDGER

CASH (100)

Date Particular Ref. Debit Credit Debit Credit

September
2019
1 Investment J1 ₱200,000 ₱200,000
3 Bought equipment J1 ₱60,000 140,000
5 Bought office J1 30,000 110,000
equipment
10 Paid freight in J1 10,000 100,000
12 Purchased J1 145,000 ₱45,500
merchandise
14 Bought insurance J2 3,000 48,500
15 Borrowed cash J2 50,000 1,500
18 Paid freight out J2 10,000 8,500
19 Received payment J2 156,800 148,300
from KARYME
Company
20 Purchased J2 50,000 98,300
merchandise
21 Sold merchandise J2 100,000 198,300
22 Paid the note issued J2 30,000 168,300
24 Paid salaries J2 10,000 158,300
26 Paid merchandise J3 50,000 108,300
last September 25
27 Sold merchandise J3 50,000 58,300
on account
27 Sold merchandise J3 20,000 78,300
28 Received payment J3 50,000 128,300
29 Paid advertisement J3 5,000 123,300
30 Withdrew cash J3 20,000 103,300

ACCOUNTS RECEIVABLE (110)

Date Particular Ref. Debit Credit Debit Credit

September
2019
8 Sold merchandise J1 ₱200,000 ₱200,000
on account
16 Received returns J2 ₱40,000 160,000
19 Received full J2 160,000 -
payment
 27 Sold merchandise J3 ₱80,000 ₱80,000
on account
28 Received payment J3 ₱50,000 30,000

MERCHANDISE INVENTORY (120)

Date Particular Ref. Debit Credit Debit Credit

September
2019
7 Purchased J1 ₱200,000 ₱200,000
merchandise on
account