Southwestern University PHINMA ABM 003 – FABM 2

Name: _________________________________________________ Performance Task #1

12 ABM - _______ ID # __________________

I. GOAL
You are going to complete full accounting cycle of a merchandising business.
II. MATERIALS
• Activity sheets Days 23-24
• Calculator
• Formats for Ledger, Worksheet and financial statements are pre-printed

III. DIRECTIONS: Given the Chart of Accounts and Transactions of Quarantino Hardware Store, you are tasked to prepare
the following:
Journal Entries, Ledger, Adjusting Entries, Worksheet, Financial Statements, Closing Entries and Post-closing Trial
Balance.

TRANSACTIONS
April 1, Mr. Cobido Corona decided to established his own Quarantino Hardware Store by investing cash of
2017 P150,000.
He purchase on account merchandise worth P5,000, 2/10,n/30.
2 He bought an equipment worth P50,000.
Billed sales of P14,300, 2/10, n/30. Cost of merchandise, P7,150
5 Returned merchandise to supplier bought last April 1 worth P250.
7 Paid transportation fee upon delivery of goods to a customer, P150.
9 Paid the April 1 purchases.
11 Bought supplies worth P850.
Received cash payment from April 2 sales.
12 Paid merchandise worth P2,700.
15 Three employees are paid, P2,500 for each employee.
16 Returned damaged purchases, P350. Initially paid cash.
Withdrew P508 for his personal use.
17 Bought on account P1,700 worth of merchandise.
18 Paid the transportation of goods from the supplier, P220.
21 Released promissory note for a loan of P100,000 from Land Bank of the Philippines.
24 Received cash from sales of P6,300. Cost of merchandise, P3,150.
25 Received purchases from a credit supplier worth P1,100.
29 Customer who paid in cash returned goods worth P120.
30 Sales on account worth P1,500. Cost of merchandise, P750.
Paid various expenses:
Salaries – P7,500
Utilities – P10,000
Rent – P1,000
Advertising - P500
Hired additional two employees with a monthly salary of P6,000.
Conducted year end inventory count worth, P1,500.

Additional Information
A) Equipment has estimated useful life of 3 years and salvage value of P3,000
B) Issued promissory note bears 2% interest per month.
C) Remaining office supplies is P150.

CHART OF ACCOUNTS
No. Accounts No. Accounts
101 Cash 413 Sales Discounts

This document and the information thereon is the property of SWU PHINMA 1
 Southwestern University PHINMA ABM 003 – FABM 2
Name: _________________________________________________ Performance Task #1
12 ABM - _______ ID # __________________

112 Accounts Receivable 500 Cost of Sales

120 Merchandise Inventory 510 Purchases
126 Supplies 512 Purchase Returns and Allowances
130 Equipment 513 Purchase Discounts
130a Accumulated Depreciation 516 Freight-In
201 Accounts Payable 630 Salaries
202 Notes Payable 631 Advertising
203 Interest Payable 635 Rent Expense
301 C.Corona, Capital 644 Freight-Out
302 C.Corona, Drawing 645 Utilities Expense
401 Sales 646 Depreciation Expense
412 Sales Returns and Allowances 647 Supplies Used
648 Interest Expense

PERIODIC INVENTORY SYSTEM: JOURNALIZING

Date Particulars PR DR CR
April 1 Cash
C. Corona, Capital
To record initial investment of Covido Corona

1 Purchases
Accounts Payable
To record purchases on account. 2/10, n/30

2 Equipment
Cash
To record purchased of computer equipment.

2 Accounts Receivable
Sales
To record sales on account. 2/10, n/30

5 Accounts Payable
Purchase Returns and Allowances
To record purchase return.

7 Freight-Out
Cash
To record freight on sales.

9 Accounts Payable
Cash
Purchase Discounts
To record payment on account with 2% discount.

11 Supplies
Cash
To record purchase of supplies on cash.

This document and the information thereon is the property of SWU PHINMA 2
 Southwestern University PHINMA ABM 003 – FABM 2
Name: _________________________________________________ Performance Task #1
12 ABM - _______ ID # __________________

11 Cash
Sales Discounts
Accounts Receivable
To record collections from sales on account.

12 Purchases
Cash
To record purchases on cash basis.

15 Salaries
Cash
To record payment of salaries.

16 Cash
Purchase Returns and Allowances
To record purchase returns and allowances.

16 D. Corona, Drawing
Cash
To record personal withdrawals.

17 Purchases
Accounts Payable
To record purchases on account.

18 Freight-In
Cash
To record freight on purchases.

21 Cash
Notes Payable
To record borrowed money from LBP.

24 Cash
Sales
To record sales on cash.

25 Purchases
Accounts Payable
To record purchases on account.

29 Sales Returns and Allowances

Cash
To record refund to cash customers.

30 Accounts Receivables
Sales
To record sales on account.

30 Salaries

This document and the information thereon is the property of SWU PHINMA 3
 Southwestern University PHINMA ABM 003 – FABM 2
Name: _________________________________________________ Performance Task #1
12 ABM - _______ ID # __________________

Utilities Expense
Rent Expense
Advertising
Cash
To record various expenses.

POSTING TO THE LEDGER

Account Title: CASH
Account #: 101
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 1 C.Corona, Capital
2 Equipment
7 Freight-Out
9 Accounts Payable
11 Supplies
11 Accounts Receivables
12 Purchases
15 Salaries
16 Purchases Returns and Allowances
16 C.Corona, Drawing
18 Freight-In
21 Notes Payable
24 Sales
29 Sales Returns and Allowances
30 Operating Expenses

Account Title: ACCOUNTS RECEIVABLES

Account #: 112
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 2 Sales
11 Cash, Sales Discounts
30 Sales

Account Title: MERCHANDISE INVENTORY

Account #: 120
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 30 Income Summary

Account Title: SUPPLIES

Account #: 126
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 11 Cash
April 30 Supplies Used

Account Title: EQUIPMENT

Account #: 130
Date Remarks PR AMOUNT BALANCES

This document and the information thereon is the property of SWU PHINMA 4
 Southwestern University PHINMA ABM 003 – FABM 2
Name: _________________________________________________ Performance Task #1
12 ABM - _______ ID # __________________

DR CR DR CR
April 2 Cash

Account Title: ACCUMULATED DEPRECIATION

Account #: 130a
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 30 Depreciation Expense

Account Title: ACCOUNTS PAYABLE

Account #: 201
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 1 Purchases
5 Purchase Returns and Allowances
9 Cash, Purchase Discounts
17 Purchases
25 Purchases

Account Title: NOTES PAYABLE

Account #: 202
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 21 Cash

Account Title: INTEREST PAYABLE

Account #: 126
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 30 Interest Expense

Account Title: C. CORONA, CAPITAL

Account #: 301
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 1 Cash
30 Income Summary
30 C.Corona, Drawing

Account Title: C.CORONA, DRAWING

Account #: 302
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 16 Cash
30 C.Corona, Capital

Account Title: SALES

Account #: 401
Date Remarks PR AMOUNT BALANCES

This document and the information thereon is the property of SWU PHINMA 5
 Southwestern University PHINMA ABM 003 – FABM 2
Name: _________________________________________________ Performance Task #1
12 ABM - _______ ID # __________________

DR CR DR CR

April 2 Accounts Receivable

24 Cash
30 Accounts Receivables
30 Income Summary
Account Title: SALES RETURNS AND ALLOWANCES
Account #: 412
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 29 Cash
30 Income Summary
Account Title: SALES DISCOUNTS
Account #: 413
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 11 Accounts Receivables
30 Income Summary

Account Title: PURCHASES

Account #: 510
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 1 Accounts Payable
12 Cash
17 Accounts Payable
25 Accounts Payable
30 Income Summary

Account Title: PURCHASES RETURNS AND ALLOWANCES

Account #: 512
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 5 Accounts Payable
16 Cash
30 Income Summary

Account Title: PURCHASES DISCOUNTS

Account #: 513
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 9 Accounts Payable

30 Income Summary

Account Title: FREIGHT-IN

Account #: 516
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

This document and the information thereon is the property of SWU PHINMA 6
 Southwestern University PHINMA ABM 003 – FABM 2
Name: _________________________________________________ Performance Task #1
12 ABM - _______ ID # __________________

April 18 Cash
30 Income Summary

Account Title: SALARIES

Account #: 630
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 15 Cash
30 Cash
30 Income Summary

Account Title: ADVERTISING

Account #: 631
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 30 Cash
30 Income Summary

Account Title: Rent Expense

Account #: 635
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 30 Cash
30 Income Summary

Account Title: Freight-Out

Account #: 635
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 7 Cash
30 Income Summary

Account Title: UTILITIES EXPENSE

Account #: 645
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 30 Cash
30 Income Summary

Account Title: DEPRECIATION EXPENSE

Account #: 646
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 30 Accumulated Depreciation
Income Summary
Account Title: SUPPLIES USED
Account #: 647
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

This document and the information thereon is the property of SWU PHINMA 7
 Southwestern University PHINMA ABM 003 – FABM 2
Name: _________________________________________________ Performance Task #1
12 ABM - _______ ID # __________________

April 30 Supplies
Income Summary

Account Title: INTEREST EXPENSE

Account #: 648
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 30 Interest Payable
Income Summary

Account Title: INCOME SUMMARY

Account #: 900
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 30 Sales. Sales Disc. , Sales Return and Allow.
Cost Accounts
Operating Expenses
C.Corona, Capital

This document and the information thereon is the property of SWU PHINMA 8