P1 REQUIRED: Journalize the following transactions.

Post to the ledger and prepare a

Trial Balance on June 30, 2021. Use the perpetual inventory method. All sales are
made at 50% above cost.

June
1 Mr. Miguel starts a retail merchandising business with a cash investment of
P200,000. In addition thereto he placed in the business some desks and chairs
amounting to P20,000, and store equipment for P6,300, Mr. Miguel had an open
account owing to Mr. Michael for P4,300.
2 Bought a cash register for store use from Allied Machine Inc., P15,000 giving P2,000
as down payment and the balance payable in monthly installment of P1,000.
3 Paid the rent for the store P12,000 for the month of June and insurance of P1,500 for
one year.
4 Received the following invoices for purchases made:
Invoice dated June 2, from Guarantee Supply P16,800, terms, n/15; and invoice
dated June 2 from Macky, P5,600, terms n/30.
5 Cash sales, P8,960, sold to Mr. Logan P5,040, terms: n/30.
6 Paid the account due to Mr. Michael. Received a credit for P1,120 from Guarantee
Supply as an allowance on the poor quality of merchandise.
12 Sold merchandise to Mr. RJ for 4,480, receiving P2,240 and a note for P2,240 in 60
days at 6% interest.
13 Borrowed from PNB P50,000 and gave a 60 day, 12% note. Interest was deducted in
advance.
14 Paid Guarantee Supply for the amount due on their invoice of June 4, 2012.
15 Cash Sales for the day P5,520.

P2 The transactions for MCJ Co. for the month of September are shown below:

Sept
3 Sold merchandise to Mr. Irwin, a customer on account, P560,000 FOB shipping point.
4 Purchased merchandise from Michael Co. on account P504,000 shipping terms, FOB
shipping point, terms 2/10, 1/15, n/30.
5 Paid shipping charges of P50,000 for merchandise purchased on Jan. 4.
6 Purchased office equipment for P90,000 from Ironcon Co. on account: terms n/30,
FOB shipping destination.
9 Received P56,000 of merchandise damaged in shipment from Irwin and credit was
given on account.
11 Returned P11,200 of damaged merchandise to Michael Co. and the amount was
deducted from our account.
12 Received payment from Mr. Irwin, less their return and discount.
18 Purchased merchandise from Isah Co. on account for P44,800 terms 2/10, n/30, FOB
shipping point.
19 Paid shipping charges of P4,000 on merchandise purchased from Isah Co.
 22 Sold merchandise to Inigo Co. for P179,200 on account, shipping terms FOB shipping
point.
23 Defective merchandise was returned by Inigo Co. and a credit memorandum was
issued for P6,720.
26 Paid Michael Co.
28 The owner, Mr. M, withdraw P10,000 cash and merchandise worth P9,000 for
personal use.

REQUIRED:
1. Journalize the transactions for the month of September.
2. Post your entries to T-accounts.
3. Prepare a trial balance as of September.

P3 The following information is taken from the ledger of ACE Trading Co. as of
December 31, 2012, after its first year of operations:

Cash 520,100
Accounts receivable 690,000
Notes receivable 170,500
Prepaid insurance 80,000
Store supplies 100,750
Office supplies 150,210
Furniture and Fixtures 830,500
Accounts payable 450,000
Notes payable 500,000
J. King, capital ?
J. King, drawing (debit) 380,000
Sales 3,800,000
Sales returns & allowances 130,050
Purchases 2,840,500
Purchase discount 230,000
Transportation-in 180,600
Store salaries 360,400
Advertising 140,500
Transportation –out 80,700
Office salaries 240,800
Rent expense 360,000
Other office expenses 50,540
Interest income 1,800

Adjusting information on December 31, 2012 is given below:

1. Merchandise on hand per physical count, P565,000
2. Accrued interest on notes receivable, P2,900
3. Unexpired insurance, P35,000
4. Rent expense includes P55,000 paid in advance
5. Accrued office salaries, P12,500
6. Unpaid telephone bill for the month, P4,500.
7. Inventory of office supplies, P34,500
8. Depreciation of furniture and fixtures is 10% per annum
9. Estimated uncollectible accounts is 5% of outstanding accounts receivable.
10. Accrued interest in notes payable, P4,500.

Required:
1. Prepare a 10-column worksheet using the direct extension method.
2. Prepare a statement of comprehensive income and statement of financial position.
3. Prepare closing journal entries.

P4 The following is the trial balance of Trinidad Co. as of

December 31, 2012.

Trinidad Company
Trial Balance
December 31, 2012

Cash 758,400
Accounts receivable 370,000
Allowance for bad debts 8,000
Notes receivable 450,000
Merchandise inventory 800,000
Furniture and equipment 820,000
Accumulated depreciation – Fur & eqpt 248,000
Accounts payable 667,000
Notes payable 500,000
A. Trinidad, capital 1,448,200
Sales 3,450,000
Sales returns and allowances 62,000
Sales discount 96,000
Purchases 2,460,000
Freight-in 146,500
Purchase returns and allowances 68,500
Salaries expense 258,000
Supplies expense 87,000
Miscellaneous expenses 53,000
Interest expense 30,000
Interest income 1,200
6,390,900 6,390,900
Data for adjustments on December 31, 2012 are as follows:
1. Merchandise on hand on December 31, 2012 is P720,000
2. Depreciation of furniture and equipment is 10% per annum
3. Unpaid salaries, P45,000
4. Notes receivable is a 10%, 90-day customer’s note dated
December 16, 2012.
5. Notes payable is company’s own six-month note discounted with PNB on November 1, 2012.
Discount rate was 12%.
6. Allowance for bad debts is to be increased to 10% of accounts receivable.
7. Supplies on hand on December 31 amounted to P29,000.

REQUIRED:
a. Prepare a worksheet using the cost of goods sold method.
b. Prepare a statement of comprehensive income and financial position.