ACTIVITY

In January 2016, DJJ Strongco started his business of selling special Siopaos, known for
its bigger –than-normal called Loisiopao. During its first month, he journalized these transactions
in the company’s general journal.
Using your knowledge of the general journal and general ledger, post the foregoing
transactions in the general ledger and determine the balances of the following at the end of the
first month.

Date (1) Account title and Explanation (2) Ref (3) Debit (4) Credit (5)
2016
January 1 Cash 101 250,000
DJJ, Capital 301 250,000
Owner’s investment of cash in the business

January 1 Inventory 121 130,000

Accounts Payable 202 130,000
Purchase siopao from supplier on account

January 2 Cash 101 50,000

Sales 400 50,000
Sale of siopao to customer through cash

Cost of good sold 500 25,000

Inventory 121 25,000
Sale of siopao to customer

January 3 Accounts Receivable 111 30,000

Sales 400 30,000
Sale of siopao to customer on account

Cost of good sold 500 15,000

Inventory 121 15,000
Sale of siopao to customer

January 10 Cash 101 10,000

Accounts Receivable 111 10,000
Collection of customer’s accounts receivable

January 12 Accounts Payable 201 45,000

Cash 101 45,000
Payment of accounts payable to supplier

January 15 Rent Expense 505 15,000

Cash 101 15,000
Payment of rent expense for the month

January 18 Cash 101 35,000

Accounts Receivable 111 35,000
Sales 400 70,000
Sale of siopao to customer through cash

Cost of good sold 500 35,000

Inventory 121 35,000
Sale of siopao to customer

January 20 Inventory 121 35,500

Accounts Payable 201 5,500
Cash 101 30,000
Purchase of siopao, partly cash, partly on account

January 31 Cash 101 15,000

DJJ, Capital 301 15,000
Owner’s investment of additional cash

Balances of each account: