PROBLEM 2 - PERPETUAL INVENTORY SY

GENERAL LEDGER
Cash In Bank
DATE ITEMS F DEBIT DATE
June 1 Investment of the owner. 500,000.00 June 1
4 Return of merchandise purchased 14,000.00 3
5 Sale of merchandise for cash. 240,000.00 6
18 Collection of sales on account with discount. 116,400.00 7
28 Collection of sales on account with discount. 39,200.00 8
9
10
11
12
15
17
30
30
30

TOTAL 909,600.00
Balance 107,450.00

Accounts Receivable
DATE ITEMS F DEBIT DATE
June 14 Sale of merchandise on account. 120,000.00 June 18
18 Sale of merchandise on account. 50,000.00 21
30 Sale of merchandise on account. 110,000.00 28

TOTAL 280,000.00
Balance 110,000.00

Merchandise Inventory
DATE ITEMS F DEBIT DATE
June 3 Purchase of merchandise for cash. 150,000.00 June 4
6 Cost of return on merchandise sold. 12,000.00 5
7 Purchase of merchandise. 100,000.00 14
10 Payment of freight on merchandise purchased. 3,000.00 17
21 Cost of return on merchandise sold. 4,000.00 18
22 Purchase of merchandise on account. 200,000.00 24
28 Purchase of merchandise on account. 150,000.00 30
30

TOTAL 619,000.00
Balance 263,000.00

Supplies Inventory
 DATE ITEMS F DEBIT DATE
June 1 Investment of the owner. 50,000.00

Balance 50,000.00

Furnitures & Fixtures

DATE ITEMS F DEBIT DATE
June 1 Investment of the owner. 400,000.00

Balance 400,000.00

Equipment
DATE ITEMS F DEBIT DATE
June 1 Purchase of Equipment. 500,000.00

Balance 500,000.00

Accounts Payable
DATE ITEMS F DEBIT DATE

June 17 Payment of account with discount. 80,000.00 June 7

24 Return of merchandise purchased. 40,000.00 22
30 Payment of account with discount. 160,000.00 28

TOTAL 280,000.00
 Notes Payable
DATE ITEMS F DEBIT DATE
June 30 Installment payment of the note plus interest. 50,000.00 June 1

TOTAL 50,000.00

A. Cruz, Capital
DATE ITEMS F DEBIT DATE
June 1

TOTAL -

Income & Expense Summary

DATE ITEMS F DEBIT DATE
June 30 To close cost of goods sold. 278,000.00 June 30
30 To close expense accounts 127,150.00

TOTAL 405,150.00

Feb 28 To close profit to Capital 80,450.00

Sales
DATE ITEMS F DEBIT DATE

June 5
14
18
30

Feb 28 To close sales 520,000.00

Sales Returns & Allowances

DATE ITEMS F DEBIT DATE
June 6 Return of merchandise sold. 20,000.00
21 Return of merchandise sold. 10,000.00

TOTAL 30,000.00
Feb 28
Balance 0.00

Sales Discount
DATE ITEMS F DEBIT DATE
June 18 Collection of sales on account with discount. 3,600.00
 28 Collection of sales on account with discount. 800.00

TOTAL 4,400.00
Feb 28
Balance 0.00

Cost of Goods Sold

DATE ITEMS F DEBIT DATE
June 5 Cost of merchandise sold. 144,000.00 June 6
14 Cost of merchandise sold. 70,000.00 21
18 Cost of merchandise sold. 20,000.00
30 Cost of merchandise sold. 60,000.00

TOTAL 294,000.00
Cost of Goods Sold 278,000.00
Feb 28
Balance 0.00

Freight Out
DATE ITEMS F DEBIT DATE

June 8 Payment of freight on merchandise sold. 2,000.00

TOTAL 2,000.00
Feb 28
Balance 0.00
 Rent Expense
DATE ITEMS F DEBIT DATE
June 9 Payment of rent. 7,150.00

TOTAL 7,150.00
Feb 28
Balance 0.00

Utilities Expense
DATE ITEMS F DEBIT DATE
June 11 Payment of utilities. 1,000.00

TOTAL 1,000.00
Feb 28
Balance 0.00

Advertising Expense
DATE ITEMS F DEBIT DATE
June 12 Payment of advertising. 3,000.00

TOTAL 3,000.00
Feb 28
Balance 0.00

Salaries Expense
DATE ITEMS F DEBIT DATE
June 15 Payment of salaries. 52,000.00
30 Payment of various expenses. 52,000.00

TOTAL 104,000.00
Feb 28
Balance 0.00

Interest Expense
DATE ITEMS F DEBIT DATE
June 30 Installment payment of the note plus interest. 3,000.00

TOTAL 3,000.00
Feb 28
Balance 0.00

Taxes & Licenses

DATE ITEMS F DEBIT DATE
June 30 Payment of various expenses. 4,000.00

TOTAL 4,000.00
Feb 28
Balance 0.00
 Miscellaneous Expense
DATE ITEMS F DEBIT DATE
June 30 Payment of various expenses. 3,000.00

TOTAL 3,000.00
Feb 28
Balance 0.00
NVENTORY SYSTEM
DGER
ITEMS F CREDIT
Purchase of Equipment. 200,000.00
Purchase of merchandise for cash. 150,000.00
Return of merchandise sold. 20,000.00
Purchase of merchandise. 20,000.00
Payment of freight on merchandise sold. 2,000.00
Payment of rent. 7,150.00
Payment of freight on merchandise purchased. 3,000.00
Payment of utilities. 1,000.00
Payment of advertising. 3,000.00
Payment of salaries. 52,000.00
Payment of account with discount. 76,800.00
Payment of account with discount. 155,200.00
Installment payment of the note plus interest. 53,000.00
Payment of various expenses. 59,000.00

802,150.00

ble
ITEMS F CREDIT
Collection of sales on account with discount. 120,000.00
Return of merchandise sold. 10,000.00
Collection of sales on account with discount. 40,000.00

170,000.00

tory
ITEMS F CREDIT
Return of merchandise purchased 14,000.00
Cost of merchandise sold. 144,000.00
Cost of merchandise sold. 70,000.00
Payment of account with discount. 3,200.00
Cost of merchandise sold. 20,000.00
Return of merchandise purchased. 40,000.00
Cost of merchandise sold. 60,000.00
Payment of account with discount. 4,800.00

356,000.00

ry
 ITEMS F CREDIT

res
ITEMS F CREDIT

ITEMS F CREDIT

e
ITEMS F CREDIT

Purchase of merchandise. 80,000.00

Purchase of merchandise on account. 200,000.00
Purchase of merchandise on account. 150,000.00

TOTAL 430,000.00
Balance 150,000.00
 ITEMS F CREDIT
Purchase of Equipment. 300,000.00

TOTAL 300,000.00
Balance 250,000.00

ITEMS F CREDIT
Investment of the owner. 500,000.00
Investment of the owner. 450,000.00

TOTAL 950,000.00
Balance 950,000.00

mmary
ITEMS F CREDIT
To close sales and its related accounts. 485,600.00

TOTAL 485,600.00
Profit 80,450.00

Balance 0.00

ITEMS F CREDIT

Sale of merchandise for cash. 240,000.00

Sale of merchandise on account. 120,000.00
Sale of merchandise on account. 50,000.00
Sale of merchandise on account. 110,000.00

TOTAL 520,000.00

Balance 0.00

wances
ITEMS F CREDIT

To close sales returns & allowances 30,000.00

ITEMS F CREDIT
 To close sales discount 4,400.00

ld
ITEMS F CREDIT
Cost of return on merchandise sold. 12,000.00
Cost of return on merchandise sold. 4,000.00

TOTAL 16,000.00

To close cost of Goods Sold 278,000.00

ITEMS F CREDIT

To close freight out 2,000.00

 ITEMS F CREDIT

To close advertising expense 7,150.00

e
ITEMS F CREDIT

To close interest expense 1,000.00

nse
ITEMS F CREDIT

To close salaries expense 3,000.00

e
ITEMS F CREDIT

To close miscellaneous expense 104,000.00

e
ITEMS F CREDIT

To close utilities expense 3,000.00

s
ITEMS F CREDIT

To close rent expense 4,000.00

ense
ITEMS F CREDIT

To close rent expense 3,000.00

PROBLEM 2 - Perpetual Inventory System
ANDRIK TRADING CO.
Trial Balance
June 30, 2017

ACCOUNT TITLES DEBIT CREDIT

Cash In Bank 107,450.00

Accounts Receivable 110,000.00
Merchandise Inventory 263,000.00
Supplies Inventory 50,000.00
Furnitures & Fixtures 400,000.00
Equipment 500,000.00
Accounts Payable 150,000.00
Notes Payable 250,000.00
A. Cruz, Capital 950,000.00
Sales 520,000.00
Sales Returns & Allowances 30,000.00
Sales Discount 4,400.00
Cost of Goods Sold 278,000.00
Freight Out 2,000.00
Rent Expense 7,150.00
Utilities Expense 1,000.00
Advertising Expense 3,000.00
Salaries Expense 104,000.00
Interest Expense 3,000.00
Taxes & Licenses 4,000.00
Miscellaneous Expense 3,000.00

TOTAL 1,870,000.00 1,870,000.00

-
PROBLEM 2 - Perpetual Inventory System
ANDRIK TRADING CO.
Income Statement
For the Month Ended June 30, 2017

Sales 520,000.00
Less: Sales Returns & Allowances 30,000.00
Sales Discount 4,400.00 34,400.00
Net Sales 485,600.00

Less: Cost of Goods Sold 278,000.00

Gross Profit 207,600.00

Less: Operating Expenses

Freight Out 2,000.00
Rent Expense 7,150.00
Utilities Expense 1,000.00
Advertising Expense 3,000.00
Salaries Expense 104,000.00
Interest Expense 3,000.00
Taxes & Licenses 4,000.00
Miscellaneous Expense 3,000.00 127,150.00

Net Income 80,450.00

ANDRIK TRADING CO.

Statement of Changes in Owner's Equity
For the Month Ended June 30, 2017

A. Cruz, Capital, Beg. 500,000.00

Add: Additional Investment 450,000.00
Net Income 80,450.00 530,450.00
Total 1,030,450.00
Less: Withdrawal -
A. Cruz, Capital, End 1,030,450.00
PROBLEM 2 - Perpetual Inventory System
ANDRIK TRADING CO.
Statement of Financial Position
As of June 30, 2017

ASSETS

Current Assets:
Cash In Bank 107,450.00
Accounts Receivable 110,000.00
Merchandise Inventory 263,000.00
Supplies Inventory 50,000.00
Total Current Assets 530,450.00

Noncurrent Assets:
Furnitures & Fixtures 400,000.00
Equipment 500,000.00
Total Noncurrent Assets 900,000.00

TOTAL ASSETS 1,430,450.00

LIABILITIES & OWNER'S EQUITY

Liabilities:
Accounts Payable ### 150,000.00
Notes Payable ### 250,000.00
Total Liabilities 400,000.00

Owner's Equity:
A. Cruz, Capital 1,030,450.00

TOTAL LIABILITIES & OWNER'S EQUITY 1,430,450.00

PROBLEM 2 - Perpetual Inventory System
ANDRIK TRADING CO.
Statement of Cash Flows
For the Month Ended June 30, 2017

Operating Activities:
Cash Sales of Merchandise 240,000.00
Collection from Customers 155,600.00
Refund from return of merchandise purchased 14,000.00
Purchase of merchandise for cash. -170,000.00
Refund to customer on merchandise returned -20,000.00
Payment of account to suppliers -232,000.00
Payment of freight on merchandise purchased. -3,000.00
Payment of freight on merchandise sold. -2,000.00
Payment of rent. -7,150.00
Payment of utilities. -1,000.00
Payment of advertising. -3,000.00
Payment of salaries. -104,000.00
Payment of interest -3,000.00
Payment of Taxes & Licenses -4,000.00
Payment of Miscellaneous -3,000.00
Net Cash Provided by (Used in) Operating Activities -142,550.00

Investing Activities:
Purchase of Equipment. -200,000.00
Net Cash Provided by (Used in) Investing Activities -200,000.00

Financing Activities:
Investment of the owner. 500,000.00
Payment of note -50,000.00
Net Cash Provided by (Used in) Financing Activities 450,000.00

Net Increase (Decrease) in Cash 107,450.00

Add: Cash Balance, Beginning 0.00
Cash Balance, End 107,450.00

ANDRIK TRADING CO.

Post-Closing Trial Balance
June 30, 2017

ACCOUNT TITLES DEBIT CREDIT

Cash In Bank 107,450.00

Accounts Receivable 110,000.00
Merchandise Inventory 263,000.00
Supplies Inventory 50,000.00
Furnitures & Fixtures 400,000.00
Equipment 500,000.00
Accounts Payable 150,000.00
Notes Payable 250,000.00
A. Cruz, Capital 1,030,450.00

TOTAL ### 1,430,450.00

 PROBLEM 2 - PERPETUAL INVENTORY SYSTEM
GENERAL JOURNAL

DATE PARTICULARS F DEBIT

1 Closing Entries:
2 Jan 31 Sales 520,000.00
3 Sales Returns & Allowances
4 Sales Discount
5 Income & Expense Summary
6 To close sales and its related accounts.
7
8 Income & Expense Summary 278,000.00
9 Cost of Goods Sold
10 To close cost of goods sold.
11
12 Income & Expense Summary 127,150.00
13 Freight Out
14 Rent Expense
15 Utilities Expense
16 Advertising Expense
17 Salaries Expense
18 Interest Expense
19 Taxes & Licenses
20 Miscellaneous Expense
21 To close expense accounts
22
23 Income & Expense Summary 80,450.00
24 Naruto, Capital
25 To close profit to Capital.
STEM

CREDIT

1
2
30,000.00 3
4,400.00 4
485,600.00 5
6
7
8
278,000.00 9
10
11
12
2,000.00 13
7,150.00 14
1,000.00 15
3,000.00 16
104,000.00 17
3,000.00 18
4,000.00 19
3,000.00 20
21
22
23
80,450.00 24
25