Mr.

Juan Lopez established a

business and was registered as
single proprietorship with the
Department of Trade and Industry.
The following are the transaction
during the month of April 2021
1 Mr. Lopez invested ₱39, 000 to the business
2 Bought computer equipment for ₱10,000 cash
Bought merchandise on account from LOWTOWN Supply
3
Co. ₱15, 900, Term, 2/10, n/30
4 Bought office supplies on cash basis for ₱700
Sold merchandise on account ₱15,200 F08 Destination, terms
5
2/10, n/30. Cost of Merchandise P11,000
6 Paid ₱200 freight on April 5 sale
Received credit memo LOWTOWN Supply Co. for
7
merchandise return ₱300
11 Paid LOWTOWN
13 Collected from April 5 customers
14 Bought merchandise on cash basis for ₱14,400
15 Salaries paid ₱1,500
Borrowed money from RCBC Bank, signed a promissory note
16
for ₱12,000
Received refund from a  supplier on cash purchase of April 14,
17
₱500.
Bought merchandize from MESDA, ₱14,200 FOB Shipping.
18
term, 2/10, n/30
20 Paid freight on April 18 purchase ₱700
23 Sold merchandise for ₱16, 400, Cost of merchandise P12,000.
26 Bought merchandise tor cash ₱12,300
Paid MESDA on April 18 purchase, ₱9.000. No discount
27
allowed on partial payment
28 Lopez get cash from the business, P2,008
Made refund to cash customer for defective merchandise,
29
₱900
Sold merchandise on account ₱13,700. term 2/10 n/30. Cost of
30
merchandise P9,000.
Paid the following: Salaries ₱1,500, Advertising ₱1,000, Rent
30
₱3,500, Utilities ₱400.
.

            CHART OF ACCOUNTS
  Acct No.            Account Tittles
  110 Cash
  120 Accounts Receivable
  130 Supplies
  140 Merchandise Inventory
  150 Equipment
 
  210 Accounts Payable
  220 Notes Payable
 
  310 Lopez, Capital
  320 Lopez, Drawings
 
  410 Sales
  420 Sales Returns & Allowances
  430 Sales Discounts
  510 Cost of Goods Sold
  610 Freight Out
  620 Salaries Expense
  630 Advertising Expense
  640 Rent Expense
  650 Utilities Expense
  700 Income Summary

GENERAL
    JOURNAL -
PAGE 1
DateAccount Title / Explanation PR Debit Credit
Cash 110
Answer Answer
1 Answer Answer 39,000

Lopez, Capital 310

Answer Answer
   Answer Answer 39,000

  To record initial investment      

     Answer
         
Equipment 150
Answer
2 Answer Answer 10,000  

Cash 110
Answer
   Answer Answer   10,000

     Answer
  To record purchase of computer equipment      
         
Merchandise Inventory 140
Answer
3 Answer Answer 15,900  

Accounts Payable 210

Answer
   Answer Answer   15,900

       Answer      
To record purchase of merchandise account
 To record purchase of merchandise account

         
Supplies 130
Answer
4 Answer Answer 700  

Cash 110
Answer
   Answer Answer   700

  To record purchase of supplies      

     Answer
         
Accounts Receivables 120
Answer
5 Answer Answer 15,200  

Sales 410
Answer
   Answer Answer   15,200

         
Cost of Goods sold 510
Answer
Answer Answer 11,000  

Merchandise Inventory 140

Answer
   Answer Answer   11,000

  To record sales on account      

     Answer
         
Freight Out 610
Answer
6 Answer Answer 200  

Cash 110
Answer
   Answer Answer   200

To record payment of freight sales

       Answer      
         
Accounts Payable 210
Answer
7 Answer Answer 300  

Merchandise Inventory 140

Answer
   Answer Answer   300

  To record credit memo from LOWTOWN      

     Answer
         
Accounts Payable 210
Answer
11 Answer Answer 15,600  

Merchandise Inventory 140

Answer
   Answer Answer   312

Cash 110
Answer
   Answer Answer   15,288

       Answer      
To record payment of accounts payable to LOWTOWN
 To record payment of accounts payable to LOWTOWN

         
Cash 110
Answer
13 Answer Answer 14,896  

Sales Discount 430

Answer
Answer Answer 304  

Accounts Receivable 120

Answer
   Answer Answer   15,200

     Answer
  To record collections of account receivable      
         
Merchandise Inventory 140
Answer
14 Answer Answer 14,400  

Cash 110
Answer
   Answer Answer   14,400

To record purchase of merchandise

       Answer      
         
Salaries expense 620
Answer
15 Answer Answer 1,500  

Cash 110
Answer
   Answer Answer   1,500

  To record payment of salaries      

     Answer
         
         
         
         
    GENERAL JOURNAL - PAGE 2
DateAccount Title / Explanation PR Debit Credit
Cash 110
Answer
16 Answer Answer 12,000  

Notes Payable 220

Answer
   Answer Answer   12,000

  To record borrow ed money from bank      

     Answer
         
Cash 110
Answer
17 Answer Answer 500  

Merchandise Inventory 140

Answer
   Answer Answer   500

To record refund from supplier

       Answer      
         
Merchandise Inventrory 140
Answer
18 Answer Answer 14,200  

Accounts Payable 210

Answer
   Answer Answer   14,200

     Answer
  To record payment of merchandise account      
         
Merchandise Inventory 140
Answer
20 Answer Answer 700  

Cash 110
Answer
   Answer Answer   700

To record freight on purchases

       Answer      
         
Cash 110
Answer
23 Answer Answer 16,400  

Sales 410
Answer
   Answer Answer   16,400

         
Cost of Goods sold 510
Answer
Answer Answer 12,000  

Merchandise Inventory 140

Answer
   Answer Answer   12,000

To record cash sales

       Answer      
         
Merchandise Inventrory 140
Answer
26 Answer Answer 12,300  

Cash 110
Answer
   Answer Answer   12,300

  To record purchase of merchandise      

     Answer
         
Accounts Payable 210
Answer
27 Answer Answer 9,000  

Cash 110
Answer
   Answer Answer   9,000

To record partial payment to MESDA

       Answer      
         
Lopez, Draw ings 320
Answer
28 Answer Answer 2,008  
 Cash 110
Answer
   Answer Answer   2,008

To record w ithdraw als

       Answer      
         
Sales Returns and Allow ances 420
Answer
29 Answer Answer 900  

Cash 110
Answer
   Answer Answer   900

  To record refund to customer      

     Answer
         
Accounts Receivable 120
Answer
30 Answer Answer 13,700  

Sales 410
Answer
   Answer Answer   13,700

         
Cost of Goods Sold 510
Answer
Answer Answer 9,000  

Merchandise Inventory 140

Answer
   Answer Answer   9,000

  To record sales on account      

     Answer
         
Salaries Expense 620
Answer
30 Answer Answer 1,500  

Answer
Advertising Expense
630
Answer
Answer 1,000  

Rent Expense 640

Answer
Answer Answer 400  

Answer
Utilities Expense
650
Answer
Answer 3,500  

Cash 110
Answer
   Answer Answer   6,400

     Answer
  To record payment of various expenses      
         

                                                     GENERAL LEDGER

ACCOUNT 110 CASH

           Balance
Date Description PR      Debit      Credit
     Debit Credit
Answer Answer Answer
1   GJ1 39,000 39,000  
Answer Answer Answer
2   GJ1                10,000 29,000  
Answer 700
Answer
4   GJ1                Answer 28,300  
Answer 200
Answer
6   GJ1                 Answer 28,100  
Answer Answer Answer
11   GJ1                 15,288 12,812  
Answer Answer Answer
13   GJ1 14,896 27,708  
Answer Answer Answer
14   GJ1                 14,400 13,308  
Answer Answer Answer
15   GJ1                 1,500 11,808  
Answer Answer Answer
16   GJ2 12,000                  23,808  
Answer Answer Answer
17   GJ2 500                  24,304  
Answer 700
Answer
20   GJ2                 Answer 23,608  
Answer Answer Answer
23   GJ2 16,400          40,008  
Answer Answer Answer
26   GJ2                12,300 27,708  
Answer Answer Answer
27   GJ2                9,000 18,708  
Answer Answer Answer
28   GJ2                 2,008 16,700  
Answer 900
Answer
29   GJ2                 Answer 15,800  
Answer Answer Answer
30   GJ2                 6,400 9,400  

ACCOUNT 120 ACCOUNTS RECEIVABLE

Date Description PR      Debit      Credit           Balance
      Debit Credit
Answer Answer Answer
5   GJ1 15,200                  15,200  

Answer Answer Answer

0
13   GJ2                15,200  

Answer Answer Answer

30   GJ2 13,700                 -   13,700  

ACCOUNT 130 SUPPLIES

          Balance
Date Description PR Debit Credit
     Debit Credit
Answer Answer Answer
4   GJ1 700   700  

ACCOUNT 150 EQUIPMENT

          Balance
Date Description PR Debit Credit
     Debit Credit
Answer Answer Answer
2   GJ1 10,000   10,000  

ACCOUNT 210 ACCOUNTS PAYABLE

        Balance
Date Description PR Debit Credit
     Debit Credit
Answer Answer Answer
3   GJ1                15,900   15,900

Answer 300
Answer
7   GJ1 Answer                  15,600

Answer Answer Answer

0
11   GJ1 15,600          

Answer Answer Answer

18   GJ2              14,200   14,200

Answer   GJ2 Answer         Answer

27 9,000 5,200
 27 9,000 5,200

ACCOUNT 220 NOTES PAYABLE

          Balance
Date Description PR Debit Credit
     Debit Credit
Answer Answer Answer
16   GJ2   12,000   12,000

ACCOUNT 310 LOPEZ, CAPITAL

          Balance
Date Description PR Debit Credit
     Debit Credit
Answer Answer Answer
1   GJ1                 39,000   39,000

Answer Answer Answer

30 Closing Entries GJ3                 3,996   42,996

Answer Answer Answer

30 Closing Entries GJ3 2,008     40,988

ACCOUNT 320 LOPEZ, DRAWINGS

          Balance
Date Description PR Debit Credit
     Debit Credit
Answer Answer Answer
28   GJ2 2,008   2,008  

Answer Answer Answer

0
30 Closing Entries GJ3   2,008  

ACCOUNT 410 SALES

          Balance
Date Description PR Debit Credit
      Debit Credit
Answer   GJ1                  Answer   Answer
5 15,200 15,200
 5 15,200 15,200

Answer Answer Answer

23   GJ2                  16,400   31,600

Answer Answer Answer

30   GJ2                  13,700   45,300

Answer Answer Answer

0
30 Closing Entries GJ3 45,300    

ACCOUNT 420 SALES RETURNS & ALLOWANCES

          Balance
Date Description PR Debit Credit
     Debit Credit
Answer Answer
29   GJ2 Answer 900                  900  

Answer 900 Answer

0
30 Closing Entries GJ3   Answer  

ACCOUNT 430 SALES DISCOUNT

          Balance
Date Description PR Debit Credit
     Debit Credit
Answer 304
Answer
13   GJ1 Answer          304  

Answer 304 Answer

0
30 Closing Entries GJ3   Answer  

ACCOUNT 140 MERCHANDISE INVENTORY

          Balance
Date Description PR Debit Credit
     Debit Credit
Answer Answer Answer
3   GJ1 15,900                  15,900  
Answer
Answer Answer Answer
5   GJ1 0
11,000
4,900  
  
Answer   GJ1 300 Answer  
Answer
7 4,600
 7   4,600

Answer Answer
312 Answer
11   GJ1 4,288  

Answer Answer
Answer
14 GJ1 14,400 18,688  

Answer 500
Answer
17 GJ2 Answer 18,188

Answer
Answer Answer
18 GJ2 14,200 32,388

{Answer 700 Answer

20   GJ2 Answer 33,088

Answer
Answer Answer
23   GJ2                  12,000
21,088

Answer Answer  Answer

26 GJ2 12,300          33,388

Answer Answer Answer

30 GJ2 9,000 24,388

ACCOUNT 510 COST OF GOODS SOLD

          Balance
Date Description PR Debit Credit
     Debit Credit
Answer Answer
Answer
5   GJ1 11,000 11,000

 
Answer Answer Answer
23 GJ2 12,000          23,000

Answer Answer Answer

30 GJ2 9,000 32,000

Answer
Answer 0
30 Closing Entries GJ3 32,000 Answer
ACCOUNT 610 FREIGHT OUT
          Balance
Date Description PR Debit Credit
     Debit Credit
Answer 200
Answer
6   GJ1 Answer              200  

Answer 200 Answer

0
30 Closing Entries GJ3   Answer  

ACCOUNT 620 SALARIES EXPENSE

          Balance
Date Description PR Debit Credit
     Debit Credit
Answer Answer Answer
15   GJ1 1,500           1,500  
Answer Answer Answer
30   GJ2 1,500          3,000  

Answer Answer Answer

0
31 Closing Entries GJ3   3,000  

ACCOUNT 630 ADVERTISING EXPENSE

Pos           Balance
Date Description Debit Credit
t      Debit Credit
Answer Answer Answer
30   GJ2 1,000          1,000  

Answer Answer Answer

0
30 Closing Entries GJ3   1,000  

ACCOUNT 640 RENT EXPENSE

          Balance
Date Description PR Debit Credit
     Debit Credit
Answer Answer Answer
30   GJ2 3,500                3,500  
 Answer
Answer Answer
0
30 Closing Entries GJ3 3,500  
  

ACCOUNT 650 UTILITIES EXPENSE

          Balance
Date Description PR Debit Credit
     Debit Credit
Answer 400
Answer
30   GJ2 Answer          400  

Answer 400 Answer

0
30 Closing Entries GJ3   Answer  

ACCOUNT 700 INCOME SUMMARY

Pos           Balance
Date Description Debit Credit
t      Debit Credit

Answer Answer Answer

30 To close sales accounts GJ3                 44,096   44,096

Answer To close cost of good Answer Answer

GJ3 32,000                 -    
30 sold accounts 12,096

Answer To close expense Answer Answer

GJ3 8,100                 -    
30 accounts 3,996

Answer To close NI to Capital Answer Answer

0
GJ3 3,996                 -    
30 accts   

  LOPEZ FIESTA MART  

  Preliminary Trial Balance  
  April 30, 2021  
            
Acct
  Account Tittles      Debit       Credit  
No. 
9,400
  110 Cash Answer                      
  120 Accounts Receivable 13,700                         
Answer
  130 Supplies 700                      
Answer
24,388
  140 Merchandise Inventory Answer     
  150 Equipment 10,000                        
Answer
5,200
  210 Accounts Payable                     Answer  
  220 Notes Payable                     Answer 12,000  
Answer
  310 Lopez, Capital             39,000  

  320 Lopez, Drawings 2,008                      

Answer
45,300
  410 Sales                     Answer  
Sales Return & 900
  420 Answer                     
Allowances
  430 Sales Discounts 304                      
Answer
32,000
  510 Cost of Goods Sold Answer                       
 
200
  610 Freight Out Answer                      
  620 Salaries Expense 3,000                      
Answer
1,000
  630 Advertising Expense Answer                      
  640 Rent Expense 3,500                     
Answer
400
  650 Utilities Expense Answer                      
 
Answer Answer
    TOTALS 101,500   101,500  
            

  LOPEZ FIESTA MART  

  STATEMENT OF FINANCIAL PERFORMANCE  
  As of April 30, 2021  
 
        

Answer
  Sales     45,300  
900
   Less:  Sales Returns& Answer
      
Allowances
     Sales Discount 304  Answer 1,204  
Answer
  Net Sales    Answer  
44,096
 44,096

32,000
     Less:  Cost of Goods Sold    Answer  
Answer
  Gross Profit     12,096  
  Less: Operating Expenses       
     Freight Out 200     
Answer
Answer
     Salaries Expense 3,000     
Answer
     Advertising Expense 1,000     
Answer
     Rent Expense 3,500     

     Utilities Expense 400  Answer 8,100  

Answer
3,996
  Net Income / (Loss)    Answer  
          

  LOPEZ FIESTA MART  

  STATEMENT OF CHANGES IN OWNER'S EQUITY  
  April 30, 2021  
 
        

0
  Lopez, Capital, Beginning     Answer  
39,000
  Add:  Initial Investments   Answer  
3,996
  Net Income    Answer  
  Total     Answer 42,996  
2,008
  Less: Lopez, Drawings     Answer  
  Lopez, Capital, End     Answer 40,988  
          

  LOPEZ FIESTA MART

  STATEMENT OF FINANCIAL POSITION  
  As of April 30, 2021  

   
                                            ASSETS
  Current Assets  
            Cash 9,400  
Answer
13,700
            Accounts Receivable Answer  
            Supplies 700  
Answer
24,388
            Merchandise Inventory Answer  
  Non-Current Assets  
            Equipment 10,000  
Answer
58,188
   TOTAL ASSETS  Answer
   
                             LIABILITIES AND OWNER'S EQUITY 
  Current Liabilities:  
5,200
            Accounts Payable Answer  
  Non-Current Liabilities:  
12,000
            Notes Payable Answer  
   TOTAL LIABILITIES  17,200  
Answer
   
  Owner's Equity   
40,988
           Lopez, Capital Answer  
  TOTAL LIABILITIES AND OWNER'S EQUITY  58,188  
Answer
       

  LOPEZ FIESTA MART  

  STATEMENT OF CASH FLOW  
  April 30, 2021  

   

  Cash flow from Operating Activities  

16,400
  Collection from cash customers Answer  
  Collection from credit customers 14,896  
Answer
500
  Refund from purchases Answer  
Answer
  Payment of goods bought -50,988  
-700
  Freight on Purchases Answer  
  Payment of supplies -700  
Answer
  Refund to customers -900  
Answer
-8,100
  Payment of Operating expenses Answer  
Net Cash flow from Operating -29,592
  Answer  
Activities
   
  Cash flow from Investing Activities  
  Equipment bought -10,000  
Answer
0
  Sale of Equipment  Answer  
Answer
  Cash flow from Investing Activities -10,000  
   
  Cash flow from Financing Activities  
39,000
  Investment of Capital Answer  
  Withdrawal for personal use -2,008  
Answer
12,000
  Borrowing from Bank Answer  
Net Cash flow from Financing 48,992
  Answer  
Activities
   
9,400
  INCREASE / (DECREASE) IN CASH Answer  
         

CLOSING ENTRIES

GENERAL JOURNAL - PAGE 03

   
Date                Account Title / Explanation    PR    Debit    Credit

Sales
Answer Answer
30 Answer 410 45,300  

Sales Returns and Allow ances

Answer 900
          Answer 420   Answer

Sales Discount
Answer 304
          Answer 430   Answer
 Income Summary
Answer Answer
          Answer 700   44,096

                 To close sales accounts      

         
Income Summary
Answer Answer
30 Answer 700 32,000  

        Answer
Cost of Goods Sold Answer Answer
  510 32,000

                 To close cost of good sold      

         
Income Summary
Answer Answer
30 Answer 700 8,100  

Freight Out
Answer 200
          Answer 610   Answer

Salaries Expense
Answer Answer
          Answer 620   3,000

Advertising Expense
Answer Answer
          Answer 630   1,000

Rent Expense
Answer Answer
          Answer 640   3,500

Utilities Expense
Answer 400
          Answer 650   Answer
                 To close expense accounts      
         
Income Summary
Answer Answer
30 Answer 700 3,996  

Lopez, Capital
Answer Answer
          Answer 310   3,996

                 To close income to capital accounts      

         
Lopez, Capital
Answer Answer
30 Answer 310 2,008  

Lopez, Draw ings

Answer Answer
          Answer 320   2,008

                 To close drawings to capital accounts      

  LOPEZ FIESTA MART  

  POST CLOSING TRIAL BALANCE  
  April 30, 2021  
   
   
  Code Account Tittles Debit Credit  
  110 Cash 9,400  
Answer
13,700
  120 Accounts Receivable Answer  
  120 Supplies 700  
Answer
24,388
  140 Merchandise Inventory Answer  
  150 Equipment 10,000  
Answer
5,200
  210 Accounts Payable Answer  
  220 Notes Payable 12,000  
Answer
40,988
  310 Lopez, Capital Answer  
Mark 1 out of 1
  TOTAL 58,188 58,188  
Answer Answer