On January 01, 2019, Harrier’s Tech Shop, owned by Ryan Harrier, commenced business.

The company
specializes in the sale of computer equipment, gadgets, phones, telephones, spare parts for computers
and gadgets, and other technology-related devices and parts. He made initial investment of P500,000
cash, P145,000 office equipment, and P150,000 furniture. All freight is charged at P1,000. Your task is to:

 Journalize all the transactions from January to December 2019

 Create a T-Account
 Create a Trial Balance at the end of the year
 Make the adjustments, as well as an adjusted trial balance
 Create a Worksheet
 Create Financial Statements

January Transactions
2019
01 Paid rent for 1 year, P48,000.
07 Purchased computer hardware for P220,000 and office supplies, P25,000.
11 Sold on account to Jay Hawkins P45,000. Terms: 2/15, 1/10, n/30, FOB Destination,
Freight Prepaid.
18 Cash sales, P100,000.
20 Collected in full from Jay Hawkins.
27 Purchased on account merchandise from SG Trading Electronics, P650,000. Terms: FOB
Shipping Point, Freight Prepaid.
31 Returned back P50,000 worth of goods to SG Trading Electronics because of wrong item
placed. Also paid electricity bills for P8,500 and staff salaries for P30,500.
February
2019
02 Cash sales, P80,000.
05 Sold to John Sykes on account, P35,000, with a trade discount of 4%. Terms: n/30, FOB
Shipping Point, Freight Collect.
10 Purchased additional office equipment for business use, P45,000.
12 Harrier withdrew P4,000 cash for personal use
19 Sold to Amos Company computer sets worth P60,000. Terms: 1/15, n/90.
22 Partially paid SG Trading P150,000.
24 Purchased merchandise for P95,000.
25 Sold to Grayson Blue for P34,000. Terms: FOB Destination, Freight Collect.
28 John Sykes paid in full. Paid for the salaries, P30,500.
March
2019
02 Amos Company partially settled their account for P36,000.
05 Cash sales amounted to P111,000.
09 Purchased computer sets on account from Magnus Trading, P225,000. A note was issued
to Magnus Trading, promising to settle their account as soon as possible. Terms: 2/10,
n/30, FOB Shipping Point, Freight Collect.
 17 Paid utilities, P13,000.
25 Partially paid SG Trading 50% of the account.
31 Paid for the salaries, P20,000. Also paid Magnus Trading in full.
April 2019
03 Cash sales, P100,000
09 Sold merchandise to James Ramirez on account, P75,000. Terms: P10,000 DP, n/60, FOB
Shipping Point, Freight Prepaid.
16 Amos paid in full.
19 Sold to Grayson Blue for P44,000 less 4% trade discount. Terms: FOB Shipping Point,
Freight Collect.
23 Paid for utilities, P7,500.
30 Purchased additional furniture on account from Le Castellete, P25,000.
May 2019
05 Cash sales, P180,000
07 Ramirez paid in full.
09 Purchased merchandise on account from SG Trading, P250,000 less 5% trade discount.
Terms: n/60, FOB Destination, Freight Prepaid.
17 Paid Le Castellete ½ of its account. Also paid for the ff. expenses: Salaries, P30,500,
Utilities, P15,000.
24 Harrier made an additional investment of P50,000 cash.
31 Sold on account to Harry Ferris for P65,000. He made an initial down-payment of P4,500.
Terms: FOB Shipping Point, Freight Collect.
June 2019
01 Sold on account to Jaguar Rays Company (JRC) for P25,000. Terms: 2/10, n/30, FOB
Destination, Freight Prepaid.
07 Ferris returned back P10,000 defective goods.
12 Sold on account to Hermann Partnership for P34,000. Terms: P12,000 down-payment,
2/10, n/30, FOB Shipping Point, Freight Collect.
15 Jaguar Rays Company paid in full.
31 Paid half of the account of SG Trading. Also collected in full from Hermann Partnership
July 2019
02 Cash sales, P180,000
05 Purchased merchandise, P175,000.
14 Purchased merchandise on account from Greater North Trading (GNT), P200,000. Terms:
2/10, 1/15, n/30, FOB Destination, Freight Prepaid.
19 Sold on account to Jaguar Rays Company, P65,000. Terms: P30,000 DP, FOB Shipping
Point, Freight Collect.
24 Paid Utilities and Salaries, P25,000 and P72,000 respectively.
27 Paid in full from Greater North Trading.
August
2019
04 Cash Sales, P195,000.
09 Purchased additional office supplies worth P35,000 and Furniture for P50,000.
19 Paid for utilities, P3,000 and salaries, P15,750.
25 Sold to Graham Wellington for P75,000. Terms: n/15, FOB Destination, Freight Prepaid.
 30 Wellington returned back P10,000 defective goods.
31 Purchased merchandise, P65,000.
September
2019
01 Cash sales, P90,000.
03 Harris made an additional investment of P400,000 cash.
09 Collected in full from Graham.
Sold to Johann Strauss, P66,500. Terms: FOB Shipping Point, Freight Collect
21 Purchased merchandise on account from Laser Traders, P114,000. Terms: 1/10, n/60,
FOB Shipping Point, Freight Prepaid.
24 Sold to Johan Strauss, P23,000. Terms: FOB Destination, Freight Collect.
27 Cash sales: P95,000.
30 Purchased additional merchandise worth P350,000.
October
2019
03 Returned back merchandise purchased on September 21, 2019 worth P31,000.
07 Cash Sales: P100,000.
10 Paid in full to Laser Traders.
21 Collected P50,000 from Johann Strauss.
22 Purchased merchandise on account from SG Trading for P224,000 less 7% trade discount.
Terms: 1/15, 2/10, n/30, FOB Shipping Point, Freight Collect.
25 Sold to Kevin Carlton for P65,000. Terms: P15,000 DP, 1/15, n/15, FOB Destination,
Freight Collect.
31 Paid for salaries and utilities, P60,000 and P14,000.
November
2019
01 Sold to Kennedy Johnson computer for P24,000. Terms: P2,000 DP, FOB Shipping Point,
Freight Prepaid.
06 Kevin Carlton paid in full.
14 Purchased merchandise on account from SF Gadgets Trading, P100,000. Terms: FOB
Destination, Freight Prepaid.
24 Sold on account to Harvey Owens, P75,000. Terms: FOB Destination, Freight Prepaid.
29 Sold to Tiger Company computer and gadgets for P220,000. Terms: n/60, FOB Shipping
Point, Freight Prepaid.
December
2019
07 Paid SG Trading in full.
10 Collected in full from Tiger Company.
15 Cash sales: P350,000.
19 Sold to GHK Company for P125,000. Terms: 2/15, n/30.
24 Cash sales: P140,000. Also paid in full from Le Castellette.
29 Sold to Frank Delano for P25,000. Terms: 50% DP, FOB Shipping Point, Freight Prepaid.
31 Utilities and Salaries paid: P25,000 and P50,000 respectively. Collected in full from GHK.
Adjustments are as follows:

 All furniture (including those purchased during the year) have a useful life of 4 years, with scrap
value of P1,000.
 All Equipment (including those purchased during the year) have a useful life of 5 years, no scrap
value.
 Remaining office supplies: P22,000.
 It is estimated that bad debts should be 5% of Accounts Rec