A B C D E F G H I J

1 GENERAL JOURNAL GENERAL JOURNAL

2 PAGE NUMBER GJ-1 PAGE NUMBER GJ-2
3 WITH EXPLANATIONS WITH EXPLANATIONS
4 CURRENT JOURNAL ENTRIES
5 DATE DESCRIPTION REF DEBIT CREDIT DATE
6 July 1 Cash 101 65,000.00 July 11
7 De Guzman, Capital 301 65,000.00
8 to record cash investment
9 #
10 2 Furniture & Fixtures 150 12,000.00
11 Cash 101 12,000.00 13
12 to record bought furnitures and fixtures for cash.
13 #
14 2 Purchases 501 9,900.00
15 Accounts Payable 201 9,900.00
16 to record purchased merchandise on account, 2/10, n/30 14
17 #
18 3 Supplies 120 1,700.00
19 Cash 101 1,700.00
20 to record bought supplies for cash. 15
21 #
22 4 Accounts Receivable 105 37,500.00
23 Sales 401 37,500.00
24 # 16
25 5 Freight out 506 500.00
26 Cash 101 500.00
27 to record payment of freight on sale.
28 # 17
29 6 Accounts Payable 201 1,600.00
30 Purchase Returns and Allowances 502 1,600.00
31 to record purchase returns.
32 # 18
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GENERAL JOURNAL GENERAL JOURNAL
42 PAGE NUMBER GJ-3 PAGE NUMBER GJ-4
43 WITH EXPLANATIONS WITH EXPLANATIONS
44 CURRENT JOURNAL ENTRIES
45 DATE DESCRIPTION REF DEBIT CREDIT DATE
46 July 20 Freight In 504 900.00 July 30

47 Cash 101 900.00

48 to record payment of freight on july purchases.
49 # 30

50 23 Cash 101 18,100.00

51 Sales 401 18,100.00
52 to record cash sales
53 #
54 26 Purchases 501 11,300.00
55 Cash 101 11,300.00
56 to record bought merchandise for cash.
57 #
58 27 Accounts Payable 201 8,500.00
59 Cash 101 8,500.00
60 to record partial payment of account.
61 #
62 28 De Guzman, Drawings 302 2,400.00
63 Cash 101 2,400.00
64 to record cash withdrawal
65 #
66 29 Sales returns and allowances 405 900.00
67 Cash 101 900.00
68 to record refund to customers.
69 #
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81 GENERAL JOURNAL GENERAL JOURNAL
82 PAGE NUMBER GJ-5 PAGE NUMBER GJ-6
83 WITH EXPLANATIONS WITH EXPLANATIONS
84 CURRENT JOURNAL ENTRIES
85 DATE DESCRIPTION REF DEBIT CREDIT DATE
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 K L M N O
1
GENERAL JOURNAL
2 NUMBER GJ-2
PAGE
3 EXPLANATIONS
WITH
4 CURRENT JOURNAL ENTRIES
5 DESCRIPTION REF DEBIT CREDIT
6 Accounts Payable 201 8,300.00
7 Cash 101 8,134.00
8 Purchase discounts (8,300x2%) 115 166.00
9 to record payment of accounts.
10 #
11 Cash 101 36,750.00
12 Sales discounts (37,500x2%) 410 750.00
13 Accounts Receivable 105 37,500.00
14 to record collection of accounts.
15 #
16 Purchases 501 10,800.00
17 Cash 101 10,800.00
18 to record purchased merchandise on cash.
19 #
20 Salaries 530 3,500.00
21 Cash 101 3,500.00
22 to record payment of salaries.
23 #
24 Cash 101 25,000.00
25 Notes Payable 501 25,000.00
26 to record borrowed money to BDO Bank 115
27 #
28 Cash 101 1,500.00
29 Purchase returns and allowances 502 1,500.00
30 to record refund from purchases.
31 #
32 Purchases 502 17,200.00
33 Accounts Payable 201
34 to record purchased merchandise on account, 2/10, n/30 17,200.00
35 #
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 K L M N O

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GENERAL JOURNAL
42 NUMBER GJ-4
PAGE
43 EXPLANATIONS
WITH
44 CURRENT JOURNAL ENTRIES
45 DESCRIPTION REF DEBIT CREDIT
46 Accounts Receivable 105 13,700.00
47 Sales 401 13,700.00
48 #
49 Advertsing Expense 503 1,000.00
50 Utilities expense 540 400.00
51 Rent expense 510 3,500.00
52 Salaries Expense 530 1,500.00
53 Cash 101 6,400.00
54 to record payment of operating expenses.
55 #
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GENERAL JOURNAL
82 NUMBER GJ-6
PAGE
83 EXPLANATIONS
WITH CURRENT JOURNAL ENTRIES
84 DESCRIPTION REF DEBIT CREDIT
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 GENERAL LEDGERS

Account 101 CASH

Balance
Date Particulars Post Debit Credit Debit Credit
July 1 investment GJ-1 65,000.00 65,000.00
2 cabinet GJ-1 12,000.00 53,000.00
3 supplies GJ-1 1,700.00 51,300.00
5 frieght out GJ-1 500.00 50,800.00
11 payment of accounts GJ-2 8,134.00 42,666.00
13 collection GJ-2 36,750.00 79,416.00
14 purchases GJ-2 10,800.00 68,616.00
15 salaries GJ-2 3,500.00 65,116.00
16 borrowed money GJ-2 25,000.00 90,116.00
17 refund GJ-2 1,500.00 91,616.00
20 freight GJ-3 900.00 90,716.00
23 Cash sales4 18,100.00 108,816.00
26 purchases GJ-3 11,300.00 97,516.00
27 payment of accounts GJ-3 8,500.00 89,016.00
28 withdrawal GJ-3 2,400.00 86,616.00
29 refund GJ-3 900.00 85,716.00
30 opex GJ-4 6,400.00 79,316.00

Account 105 ACCOUNTS RECEIVABLE

Balance
Date Particulars Post Debit Credit Debit Credit
JULY 4 sales on account GJ-1 37,500.00 37,500.00
13 collection GJ-2 37,500.00 -
30 sales on account GJ-4 13,700.00 13,700.00

Account 120 SUPPLIES

Balance
Date Particulars Post Debit Credit Debit Credit
JULY 3 BOUGHT GJ-1 1,700.00 1,700.00

Account 150 FURNITURES & FIXTURES

Balance
Date Particulars Post Debit Credit Debit Credit
JULY 2 CABINET GJ-1 12,000.00 12,000.00

Account 201 ACCOUNTS PAYABLE

Balance
Date Particulars Post Debit Credit Debit Credit
JULY 2 PURCHASE GJ-1 9,900.00 9,900.00
6 returns GJ-1 1,600.00 8,300.00
11 payment GJ-2 8,300.00 -
18 PURCHASE GJ-2 17,200.00 17,200.00
27 PARTIAL PAYMENT GJ-3 8,500.00 8,700.00

Account 501 NOTES PAYABLE

Balance
Date Particulars Post Debit Credit Debit Credit
JULY 16 BORROWED GJ-2 25,000.00 25,000.00
 Account 301 DE GUZMAN, CAPITAL
Balance
Date Particulars Post Debit Credit Debit Credit
JULY 1 INVESTMENT GJ-1 65,000.00 65,000.00
31 CLOSING ENTRY 10,416.00 75,416.00
31 CLOSING ENTRY 2,400.00 73,016.00

Account 302 DE GUZMAN, DRAWING

Balance
Date Particulars Post Debit Credit Debit Credit
JULY 28 WITHDRAWAL GJ-3 2,400.00 2,400.00
31 CLOSING ENTRY 2,400.00 -

Account 401 SALES

Balance
Date Particulars Post Debit Credit Debit Credit
JULY 4 ON ACCOUNT GJ-1 37,500.00 37,500.00
23 ON ACCOUNT GJ-3 18,100.00 55,600.00
30 ON ACCOUNT GJ-4 13,700.00 69,300.00
31 CLOSING ENTRY 69,300.00 -

Account 405 SALES DISCOUNT

Balance
Date Particulars Post Debit Credit Debit Credit
JULY 13 COLLECTION GJ-2 750.00 750.00
31 CLOSING ENTRY 750.00 -

Account 410 SALES RETURNS AND ALLOWANCES

Balance
Date Particulars Post Debit Credit Debit Credit
JULY 29 COLLECTION GJ-3 900.00 900.00
31 CLOSING ENTRY 900.00 -

Account 501 PURCHASES

JULY 2 purchase GJ-1 9,900.00 9,900.00
14 purchase GJ-2 10,800.00 20,700.00
18 purchase GJ-2 17,200.00 37,900.00
26 purchase GJ-3 11,300.00 49,200.00
31 closing entry 49,200.00 -

Account 502 PURCHASE RETURNS AND ALLOWANCES

JULY 6 return GJ-1 1,600.00 1,600.00
17 refund GJ-2 1,500.00 3,100.00
31 closing entry 3,100.00 -

Account 503 PURCHASE DISCOUNTS

JULY 11 payment GJ-1 166.00 166.00
31 closing entry 166.00 -

Account 504 FREIGHT IN

JULY 20 payment GJ-1 900.00 900.00
31 closing entry 900.00 -
 Account 505 ADVERTSING EXPENSE
Balance
Date Particulars Post Debit Credit Debit Credit
JULY 30 PAYMENT GJ-4 1,000.00 1,000.00
31 closing entry 1,000.00 -

Account 506 FREIGHT OUT

Balance
Date Particulars Post Debit Credit Debit Credit
JULY 5 PAYMENT GJ-1 500.00 500.00
31 closing entry 500.00 -

Account 510 RENT EXPENSE

Balance
Date Particulars Post Debit Credit Debit Credit
JULY 30 PAYMENT GJ-4 3,500.00 3,500.00
31 closing entry 3,500.00 -

Account 530 SALARIES EXPENSE

Balance
Date Particulars Post Debit Credit Debit Credit
JULY 15 PAYMENT GJ-2 3,500.00 3,500.00
30 PAYMENT GJ-4 1,500.00 5,000.00
31 closing entry 5,000.00 -

Account 540 UTILITIES EXPENSE

Balance
Date Particulars Post Debit Credit Debit Credit
JULY 30 PAYMENT GJ-4 400.00 400.00
31 closing entry 400.00 -
 TRIAL BALANCE

ACCOUNT TITLES DR CR
101 CASH 79,316.00
105 ACCOUNTS RECEIVABLE 13,700.00
120 SUPPLIES 1,700.00
150 FURNITURES & FIXTURES 12,000.00
201 ACCOUNTS PAYABLE 8,700.00
202 NOTES PAYABLE 25,000.00
301 PERALTA, CAPITAL 65,000.00
302 PERALTA, WITHDRAWAL 2,400.00
401 SALES 69,300.00
402 SALES DISCOUNT 750.00
403 SALES RETURNS AND ALLOWANCES 900.00
501 PURCHASES 49,200.00
502 PURCHASES RETURNS AND ALLOWANCES 3,100.00
503 PURCHASE DISCOUNT 166.00
504 FREIGHT IN 900.00
505 ADVERTSING EXPENSE 1,000.00
506 FREIGHT OUT 500.00
510 RENT EXPENSE 3,500.00
515 SALARIES EXPENSE 5,000.00
520 UTILITIES EXPENSE 400.00
TOTALS 171,266.00 171,266.00 -

COST OF GOODS MANUFACTURED

MERCHANDISE INVTY.,BEG - -
Add: Purchases 49,200.00 -
Less:Purchases Ret. & Allow 3,100.00 -
Purchase discount 166.00 3,266.00
Net Purchases 45,934.00
Add: Freight IN 900.00 -
Cost of goods available for sale 46,834.00
Less: Merchandise Invty.,end - 46,834.00
COST OF GOODS MANUFACTURED 46,834.00
INCOME STATEMENT

SALES 69,300.00
LESS: SALES DISCOUNTS 750.00
SALES RETURNS AND ALLOWANCES 900.00 1,650.00
NET SALES 67,650.00
LESS : COST OF SALES 46,834.00
GROSS PROFIT 20,816.00
LESS: OPERATING EXPENSES
ADVERTISING EXPENSE 1,000.00
FREIGHT OUT 500.00
RENT EXPENSE 3,500.00
SALARIES EXPENSE 5,000.00
UTILITIES EXPENSE 400.00 10,400.00
NET LOSS 10,416.00
 STATEMENT OF CHANGES IN OWNER'S EQUITY

Capital Beginning 7/1/17 -

Add: Additional investment 65,000.00
Total Capital 65,000.00
Add(Deduct)
Peralta Drawing (2,400.00)
Net Income 10,416.00 8,016.00
Capital ending 7/31/17 73,016.00

STATEMENT OF FINANCIAL POSITION

ASSETS
CURRENT ASSETS:
CASH & CASH EQUIVALENTS 79,316.00
RECEIVABLES 13,700.00
PREPAID EXPENSES 1,700.00 94,716.00
NONCURRENT ASSET:
FURNITURES AND FIXTURES 12,000.00
TOTAL ASSETS 106,716.00

TOTAL LIABILITIES AND OWNER'S EQUITY

CURRENT LIABILITY:
ACCOUNTS PAYABLE 8,700.00
NONCURRENT LIABILITY:
NOTES PAYABLE 25,000.00
TOTAL LIABILITIES 33,700.00

OWNER'S EQUITY:
PERALTA, CAPITAL 73,016.00
TOTAL LIABILITIES AND OWNER'S EQUITY 106,716.00
-
CASH FLOW STATEMENT
CASH FROM OPERATING ACTIVITIES:
Cash received from:
'Collection 36,750.00
Cash Sales 18,100.00
refund 1,500.00
Payments of:
purchase of supplies (1,700.00)
purchase of merchandise (22,100.00)
FREIGHT IN (900.00)
refund (900.00)
ADVERTSING EXPENSE (1,000.00)
FREIGHT OUT (500.00)
RENT EXPENSE (3,500.00)
SALARIES EXPENSE (5,000.00)
UTILITIES EXPENSE (400.00) 20,350.00
CASH FROM INVESTING ACTIVITIES:
Purchased of furnitures and fixtures (12,000.00)
CASH FROM FINANCING ACTIVITIES:
Beginning Capital 65,000.00
payment of accounts (16,634.00)
withdrawal (2,400.00)
borrowed money 25,000.00 70,966.00
cash balance end 79,316.00
 POST-CLOSING TRIAL BALANCE

CASH & CASH EQUIVALENTS 79,316.00

RECEIVABLES 13,700.00
INVENTORIES -
PREPAID EXPENSES 1,700.00
FURNITURES AND FIXTURES 12,000.00
ACCOUNTS PAYABLE 8,700.00
NOTES PAYABLE 25,000.00
PERALTA, CAPITAL 73,016.00
TOTALS 106,716.00 106,716.00
-
GENERAL JOURNAL
CLOSING ENTRIES
WITH EXPLANATIONS
CURRENT JOURNAL ENTRIES
DATE DESCRIPTION REF DEBIT CREDIT
7/31/2017 SALES 69,300.00
INCOME SUMMARY 67,650.00
SALES RETURNS 900.00
SALES DISCOUNTS 750.00
to close the revenue
#
7/31/2017 INCOME SUMMARY 45,934.00
PURCHASE DISCOUNT 166.00
PURCHASE RETURNS & ALLOW 3,100.00
PURCHASES 49,200.00
to close the purchases
#
7/31/2017 INCOME SUMMARY 10,400.00
ADVERTSING EXP 1,000.00
FREIGHT OUT 500.00
RENT EXPENSE 3,500.00
SALARIES EXPENS 5,000.00
UTILITIES EXPENS 400.00
to close expenses.
#
7/31/2017 INCOME SUMMARY 10,416.00
DE GUZMAN, CAPITAL 10,416.00
to close the net income
#
7/31/2017 DE GUZMAN, CAPITAL 2,400.00
PERALTA, DRAWING 2,400.00
to close the withdrawal
GENERAL JOURNAL
CLOSING ENTRIES
WITH EXPLANATIONS
CURRENT JOURNAL ENTRIES
DATE DESCRIPTION REF DEBIT CREDIT