Gardner Company engaged in the following transactions in June, the company’s first month of

operations:

June 1 Stockholders invested P 384,000 cash and P 144,000 of merchandise inventory in the
business in exchange for capital stock.

3 Merchandise was purchased on account, P 192,000; terms 2/10, n/30, FOB shipping point.

4 Paid freight on the June 3 purchase, P 5,280.

7 Merchandise was purchased on account, P 96,000; terms 2/10, n/30, FOB destination.

10 Sold merchandise on account, P 230,400; terms 2/10, n/30, FOB shipping point.

11 Returned P 28,800 of the merchandise purchased on June 3.

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12 Paid the amount due on the purchase of June 3.

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13 Sold merchandise on account, P 240,000; terms 2/10, n/30, FOB destination.

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14 Paid freight on sale of June 13, P 14,400.
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20 Paid the amount due on the purchase of June 7.
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21 P 48,000 of the goods sold on June 13 were returned for credit.

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22 Received the amount due on sale of June 13.

25 Received the amount due on sale of June 10.

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29 Paid rent for the administration building for June, P 19,200.

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30 Paid sales salaries of P 57,600 for June.

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30 Purchased merchandise on account, P 48,000; terms 2/10, n/30, FOB destination.

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Required:

Prepare journal entries for the transactions using the perpetual inventory method.
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 Organized on May 1, Noah Cabinet Company engaged in the following transactions:

May 1 The stockholders invested P 900,000 in this new business by purchasing capital stock.

1 Purchased merchandise on account from String Company, P 46,800; terms n/60, FOB shipping
point, freight collect.

3 Sold merchandise for cash, P 28,800.

6 Paid transportation charges on May 1 purchase, P 1,440 cash.

7 Returned P 3,600 of merchandise to String Company due to improper size.

10 Requested and received an allowance of P 1,800 from String Company for improper quality
of certain items.

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14 Sold merchandise on account to Texas Company, P 18,000; terms 2/20, n/30, FOB shipping

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point, freight collect.

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16 Issued cash refund for return of merchandise relating to sale made on May 3, P 180.
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18 Purchased merchandise on account from Tan Company invoiced at P 28,800; terms 2/15,
n/30, FOB shipping point, freight collect.
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18 Received a bill for freight charges of P 900 from Ball Trucking Company on the purchase
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from Tan Company.

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19 Texas Company returned P 360 of merchandise purchased on May 14.

24 Returned P 2,880 of defective merchandise to Tan Company. Received full credit.

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28 Texas Company remitted balance due on sale of May 14.

31 Paid Tan Company for the purchase of May 18 after adjusting for transaction of May 24.
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31 Paid miscellaneous selling expenses of P 7,200.

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31 Paid miscellaneous administrative expenses of P 10,800.

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From the data for Noah Cabinet Company:

Required:

Journalize the transactions using the periodic inventory method. Round all amounts to the nearest
dollar.

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