GENERAL JOURNAL

PAGE NUMBER GJ-1

With Explanations

April 1 to 11 only

DATE TRANSACTION PR DEBIT CREDIT

APRIL
#1
1 Cash 101 39, 000.00
J. LOPEZ, Capital 301 39, 000.00
To record initial investment

DATE TRANSACTION PR DEBIT CREDIT

APRIL
#2
2 Equipment 150 10, 000
Cash 101 10, 000
To record purchase of computer

DATE TRANSACTION PR DEBIT CREDIT

APRIL
#3
2 Merchandise Inventory 501 15, 900
Accounts Payable 201 15, 900
To record purchase of merchandise on
account

DATE TRANSACTION PR DEBIT CREDIT

APRIL
#4
3 Supplies 120 700
Cash 101 700
To record purchase of supplies

DATE TRANSACTION PR DEBIT CREDIT

APRIL
#5
4 Accounts receivables 105 15, 200
Sales 401 15, 200
Cost of sales 501 12, 200
Merchandise Inventory 103 12, 200
To record sale of merchandise 2/10,
n/30
 DATE TRANSACTION PR DEBIT CREDIT
APRIL
#6
5 Freight Out 506 200
Cash 101 200
To record payment of freight from sale

DATE TRANSACTION PR DEBIT CREDIT

APRIL
#7
6 Accounts Payable 201 300
Merchandise Inventory 502 300
To record returned from merchandise

DATE TRANSACTION PR DEBIT CREDIT

APRIL
#8
11 Accounts Payable 201 15, 600
Merchandise Inventory 502 312
Cash 15, 288
To record settlement of accounts
payable
GENERAL JOURNAL
PAGE NUMBER GJ-2
With Explanations

April 13 to 23 only

DATE TRANSACTION PR DEBIT CREDIT

APRIL
#9
13 Cash 201 14, 896.00
Sales Discount 304
Accounts Receivable 502 15, 200
To record collection of account within
discount period

DATE TRANSACTION PR DEBIT CREDIT

APRIL
#10
14 Merchandise Inventory 501 14, 400
Cash 201 14, 400
To record purchase of merchandise on
 cash

DATE TRANSACTION PR DEBIT CREDIT

APRIL
#11
15 Salaries Expense 604 1, 500
Cash 101 1, 500
To record payment of salaries

DATE TRANSACTION PR DEBIT CREDIT

APRIL
#12
16 Cash 101 12, 000
Notes Payable 202 12, 000
To record borrowing from BPI by
Promissory Note

DATE TRANSACTION PR DEBIT CREDIT

APRIL
#13
17 Cash 101 500
Merchandise Inventory 103 500
To record cash refund for purchased
made last April 14

DATE TRANSACTION PR DEBIT CREDIT

APRIL
#14
18 Merchandise Inventory 501 14, 200
Accounts Payable 202 14, 200
To record purchase of merchandise from
vice Ganda terms: 2/10, n/30

DATE TRANSACTION PR DEBIT CREDIT

APRIL
#15
20 Merchandise Inventory 504 700
Cash 101 700
To record payment of freight in for
April 18 purchases
 DATE TRANSACTION PR DEBIT CREDIT
APRIL
#16
23 Cash 101 16, 400
Sales 202 16, 400
Cost of Sales 501 10, 500
Merchandise Inventory 103 10, 500
To record sale of merchandise on cash

GENERAL JOURNAL
PAGE NUMBER GJ-1
With Explanations

April 26 to 30 only

DATE TRANSACTION PR DEBIT CREDIT

APRIL
#17
26 Merchandise Inventory 501 12, 300
Cash 101 12, 300
To record borrowing from BPI by
Promissory Note

DATE TRANSACTION PR DEBIT CREDIT

APRIL
#18
27 Accounts payable 201 9, 000
Cash 101 9, 000
To record partial payment of account

DATE TRANSACTION PR DEBIT CREDIT

APRIL
#19
28 J, Lopez, Drawing 302 2, 008
Cash 101 2, 008
To record cash withdrawal

DATE TRANSACTION PR DEBIT CREDIT

APRIL
#20
29 Sales returns and allowances 402 900
Cash 101 900
 To record merchandise returned

DATE TRANSACTION PR DEBIT CREDIT

APRIL
#21
30 Accounts Receivable 102 13, 700
Sales 401 13, 700
Cost of Sales 11, 000
Merchandise Inventory 11,000
To record sale of merchandise terms
n/30

DATE TRANSACTION PR DEBIT CREDIT

APRIL
#22
30 Advertising Expense 601 1, 000
Utilities 602 400
Rent 603 3, 500
Salaries 604 1, 500
Cash 101 6, 400
To record payment of various expenses
GENERAL LEDGER (PERPETUAL)

CASH 101
BALANCE
DATE ITEM POST DEBIT CREDIT DEBIT CREDIT
1 GJ-1 39, 000 39, 000
2 GJ-1 10, 000 29, 000
3 GJ-1 700 28, 300
5 GJ-1 200 28, 100
11 GJ-1 15, 288 12, 812
13 GJ-2 14, 896 27, 708
14 GJ-2 14, 400 13, 309
15 GJ-2 1, 500 11, 808
16 GJ-2 12, 000 23, 808
17 GJ-2 500 24, 308
20 GJ-2 700 23, 608
23 GJ-2 16, 400 40, 008
26 GJ-3 12,300 27, 708
27 GJ-3 9, 000 18, 708
28 GJ-3 2, 008 16, 700
29 GJ-3 900 15, 800
30 GJ-3 6, 400 9, 400
GJ-1

ACCOUNTS RECEIVABLE 105

BALANCE
DATE ITEM Post DEBIT CREDIT DEBIT CREDIT
4 GJ-1 15, 200 15, 200
13 GJ-2 15, 200 0
30 GJ-3 13, 700 13, 700

MERCHANDISE INVENTORY 115

BALANCE
DATE ITEM POST DEBIT CREDIT DEBIT CREDIT
2 GJ-1 15, 900 15, 900
4 GJ-1 12, 200 3, 700
6 GJ-1 300 3, 400
11 GJ-1 312 3, 088
14 GJ-2 14, 400 17, 488
17 GJ-2 500 16, 988
18 GJ-2 14, 200 31, 188
20 GJ-2 700 31, 888
23 GJ-2 10, 500 21, 388
26 GJ-3 12, 300 33, 688
30 GJ-3 11, 000 22, 688
SUPPLIES 120
BALANCE
DATE ITEM POST DEBIT CREDIT DEBIT CREDIT
3 Purchase of supplies GJ-1 700 700

EQUIPMENT 150
BALANCE
DATE ITEM POST DEBIT CREDIT DEBIT CREDIT
2 Purchase of equipment GJ-1 10, 000 10, 000

ACCOUNTS PAYABLE 201

BALANCE
DATE ITEM POST DEBIT CREDIT DEBIT CREDIT
2 GJ-1 15, 900 15, 900
6 GJ-1 300 15, 600
11 GJ-1 15,600 0
18 GJ-2 14, 200 14, 200
27 GJ-3 9, 000 5, 200

NOTES PAYABLE 202

BALANCE
DATE ITEM POST DEBIT CREDIT DEBIT CREDIT
16 GJ-2 12, 000 12, 000

j. LOPEZ, CAPITAL
BALANCE
DATE ITEM POST DEBIT CREDIT DEBIT CREDIT
1 GJ-1 39, 000 39, 000

J. LOPEZ, DRAWING
BALANCE
DATE ITEM POST DEBIT CREDIT DEBIT CREDIT
28 GJ-3 2, 008 2, 008
SALES
BALANCE
DATE ITEM POST DEBIT CREDIT DEBIT CREDIT
4 GJ-1 15, 200 15, 200
23 GJ-3 16, 400 31, 600
30 GJ-3 13, 700 45, 300

SALES RETURN AND ALLOWANCES

BALANCE
DATE ITEM POST DEBIT CREDIT DEBIT CREDIT
28 GJ-3 900 900

SALES DISCOUNT
BALANCE
DATE ITEM POST DEBIT CREDIT DEBIT CREDIT
13 GJ-2 304 304

COST OF SALES
BALANCE
DATE ITEM POST DEBIT CREDIT DEBIT CREDIT
4 GJ-1 12, 200 12, 200
23 GJ-3 10, 500 22, 700
30 GJ-3 11, 000 33, 700

FREIGHT-OUT
BALANCE
DATE ITEM POST DEBIT CREDIT DEBIT CREDIT
5 GJ-1 200

RENT EXPENSE
BALANCE
DATE ITEM POST DEBIT CREDIT DEBIT CREDIT
30 GJ-3 3, 500

(PERPETUAL)
SALARIES EXPENSE
BALANCE
DATE ITEM POST DEBIT CREDIT DEBIT CREDIT
15 GJ-2 1, 500
30 GJ-3 1, 500

ADVERTISING EXPENSE
BALANCE
DATE ITEM POST DEBIT CREDIT DEBIT CREDIT
30 GJ-3 1, 000

UTILITIES
BALANCE
DATE ITEM POST DEBIT CREDIT DEBIT CREDIT
30 GJ-3 400
 PHILASIA DISTRIBUTORS
PRE TRIAL BALANCE
APRIL 30, 2016

ACCOUNT TITLES DR CR
CASH P 9, 400
ACCOUNTS RECEIVABLE 13, 700
MERCHANDISE INVENTORY 22, 688
SUPPLIES 700
EQUIPMENT 10, 000
ACCOUNTS PAYABLE 5, 200
NOTES PAYABLE 12, 000
LOPEZ, CAPITAL 39, 000
LOPEZ, DRAWINGS 2, 008
SALES 45, 300
SALES RET & ALLOWANCES 900
SALES DISCOUNT 304
COST OF GOODS SOLD 33, 700
FREIGHT-OUT 200
RENT EXPENSE 3, 500
SALARIES 3, 000
ADVERTISING 1, 000
UTILITIES 400

101, 500 101, 500

102, 612 102, 612

STATEMENT OF PERFORMANCE

Sales P 45, 300

Less:
Sales Discount 304.00
Sales Ret & Allowances 900.00 ( 1, 204.00)
Net Sales P 44, 096.00
Cost of Sales (33,700.00)
Gross Profit P 10, 396.00
Less: Operating Expenses
Freight-out 200.00
Rent Expenses 3, 500
Salaries Expense 3, 000
Advertising Expense 1, 000
Utilities 400 ( 8, 100.00)
Net Income P 2, 296.00

STATEMENT OF OWNER’S EQUITY

J. Lopez Capital, beg P 39, 000.00

Add: Income 2, 296.00
Net P 41, 296.00
Less: Drawing ( 2, 008.00)
J. Lopez Capital, ending P 39, 288.00
STATEMENT OF FINANCIAL POSITION
Current assets
Cash and Cash Equivalent P 9, 400
Receivables 13, 700
Merchandise Inventory 22, 688
Prepaid expenses 700
Total Current assets 46, 488
Non Current Assets
Plant, Property & Equipment 10, 000
Total Assets 56, 488.00
=========
Current Liabilities
Accounts Payable 5, 200
Long-term Liabilities
Notes Payable 12, 000
Total Liabilities 17, 200

J. Lopez Capital 39, 288

Total Liabilities & Owner’s Equity 56, 488.00

==========
 CASH FLOW STATEMENT

Cash flow from Operating Activities

Cash Received from
Sales 16, 400
Receivable Collection 14, 896
Refund from Purchases 500 31,796
Cash Payment for
Office supplies (700)
Freight on goods sold (200)
Goods bought (50,988)
Operating expenses (7,900)
Refund to customers (900)
Freight on Purchases (700) (61,388)
Net Cash flow from Operating Activities (29,592)

Cash flow from Investing Activities

Computer equipment (10, 000)
Net Cash flow from Investing Activities (10, 000)

Cash flow from Financing Activities

Initial investment 39, 000
Borrowings 12, 000
Drawings (2, 008)
Net Cash flow from Financing Activities 48, 992
CASH AND CASH EQUIVALENTS, APRIL 30 9, 400
=====
WHAT IS THE CASE 1
ADJUSTING ENTRY DATE JANUARY 31
DEBIT ACCOUNT TITLE INTEREST EXPENSE
CREDIT ACCOUNT TITLE ACCRUED INTEREST PAYABLE
AMOUNT P 1, 000

WHAT IS THE CASE 2

ADJUSTING ENTRY DATE MARCH 31
DEBIT ACCOUNT TITLE INSURANCE EXPENSE
CREDIT ACCOUNT TITLE PREPAID INSURANCE EXPENSE
AMOUNT P 200

WHAT IS THE CASE 1

ADJUSTING ENTRY DATE DECEMBER 31
DEBIT ACCOUNT TITLE SUPPLES
CREDIT ACCOUNT TITLE SUPPLES EXPENSE
AMOUNT P 700