PURING COMPANY

REQUIREMENT: JOURNAL ENTRIES

Listed below are ten business transactions for Puring Company during its first
month of operation.
a. Owner invested cash in the business amounting to ₱300,000.
b. Purchased equipment for cash amounting to ₱50,000.
c. Purchased inventories through credit amounting to ₱35,000.
d. Purchased furniture amounting to ₱30,000. Made partial payment with cash
(₱10,000) and incurred an accounts payable for the balance (₱20,000)
e. Paid cash to the local government for business permit (₱9,000)
f. Made sales of ₱17,000 - ₱12,000 cash sales, ₱5,000 credit sales.
g. The cost of the sales made in (f) amounted to ₱8,500.
h. Paid the accounts payable in (d)
i. Collected ₱2,500 out of the ₱5,000 credit sales in (f)
j. Paid employee ₱12,000.

PURING COMPANY
REQUIREMENT: JOURNAL ENTRIES
Listed below are ten business transactions for Puring Company during its first
month of operation.
a. Owner invested cash in the business amounting to ₱300,000.
b. Purchased equipment for cash amounting to ₱50,000.
c. Purchased inventories through credit amounting to ₱35,000.
d. Purchased furniture amounting to ₱30,000. Made partial payment with cash
(₱10,000) and incurred an accounts payable for the balance (₱20,000)
e. Paid cash to the local government for business permit (₱9,000)
f. Made sales of ₱17,000 - ₱12,000 cash sales, ₱5,000 credit sales.
g. The cost of the sales made in (f) amounted to ₱8,500.
h. Paid the accounts payable in (d)
i. Collected ₱2,500 out of the ₱5,000 credit sales in (f)
j. Paid employee ₱12,000.

PURING COMPANY
REQUIREMENT: JOURNAL ENTRIES
Listed below are ten business transactions for Puring Company during its first
month of operation.
a. Owner invested cash in the business amounting to ₱300,000.
b. Purchased equipment for cash amounting to ₱50,000.
c. Purchased inventories through credit amounting to ₱35,000.
d. Purchased furniture amounting to ₱30,000. Made partial payment with cash
(₱10,000) and incurred an accounts payable for the balance (₱20,000)
e. Paid cash to the local government for business permit (₱9,000)
f. Made sales of ₱17,000 - ₱12,000 cash sales, ₱5,000 credit sales.
g. The cost of the sales made in (f) amounted to ₱8,500.
h. Paid the accounts payable in (d)
i. Collected ₱2,500 out of the ₱5,000 credit sales in (f)
j. Paid employee ₱12,000.
 ASSETS = LIABILITIES
a. Cash ₱300,000.00
b. Equipment 50,000.00
Cash (50,000.00)
c. Inventories 35,000.00 35,000.00
d. Furniture 30,000.00
(Cash) / Accounts Payable (10,000.00) 20,000.00
e. Busines permit paid in cash (9,000.00)
f. Cash 12,000.00
Accounts Receivable 5,000.00
g. (Inventories) (8,500.00)
h. Cash / (Accounts Payable) - d (20,000.00) (20,000.00)
i. Cash 2,500.00
Accounts Receivable (2,500.00)
j. (Cash) / Salaries Expense (12,000.00)
₱322,500.00 = ₱35,000.00

₱322,500.00 = ₱35,000.00
₱322,500.00 = ₱322,500.00
+ EQUITY REVENUES EXPENSES
₱300,000.00

Sales
(9,000.00) Cost of Sales
Gross Profit
17,000.00 Less:
(8,500.00)

Net Profit
(12,000.00)
+ ₱300,000.00 ₱17,000.00 -₱29,500.00

+ ₱287,500.00
 17,000.00 Sales
Cost of Sales 8,500.00 Cost of Sales
Gross Profit 8,500.00 Gross Profit
Operating Expenses Less: Operating Expenses
Salaries Expense 12,000.00 Salaries Expense
Permit & Licenses 9,000.00 Permit & Licenses
21,000.00 Net Profit
Net Profit (12,500.00)
 17,000.00
8,500.00
8,500.00

12,000.00
9,000.00 21,000.00
(12,500.00)
 Account Titles and Explanation Ref. Debit Credit
a. Cash ₱ 300,000.00
Puring, Capital ₱ 300,000.00
Owner's investment of cash in the business

b. Equipment 30,000.00
Cash 30,000.00
Purchase of equipment for cash.

c. Inventories 35,000.00
Accounts Payable 35,000.00
Purchased inventories on credit.

d. Furniture 30,000.00
Cash 10,000.00
Accounts Payable 20,000.00
Purchase of equipment through partial payment of 10K and payables of 20K.

e. Business Permit 9,000.00

Cash 9,000.00
Payment of business permit

f. Cash 12,000.00
Accounts Receivable 5,000.00
Sales 17,000.00
Sale of inventories, partially through cash and balance on account.

g. Cost of Goods Sold 8,500.00

Inventories 8,500.00
Sale of inventories to customer

h. Accounts Payable 20,000.00

Cash 20,000.00
Payment of accounts payable (d)

i. Cash 2,500.00
Accounts Receivable 2,500.00
Collection of A/R in (f)

j Salaries Expense 12,000.00

Cash 12,000.00
Payment of salaries to employees
Adjusting entry