NAME: ____Kathleen T.

Manuel ______ Course/Year/Section: __ UP-FC1-BSA1-10_______

1. Journalizing: (Perpetual) GJ-01

Date Post Ref Debit Credit

NOV 1 CASH 550,000

GOLDEN DRAGON, CAPITAL 550,000
initial investment

2 EQUIPMENT 450,000
CASH 450,000
purchase of equipment for cash

2 MERCHANDISE INVENTORY 45,000

ACCOUNTS PAYABLE 45,000
purchase of inventory on account, terms 2/10 n/30

3 OFFICE SUPPLIES 2,000

CASH 2,000
purchase of supplies for cash

4 ACCOUNTS RECEIVABLE 30,500

SALES 30,500
sale of inventory on account, terms 2/10 n/30

COST OF GOODS SOLD 20,300

MERCHANDISE INVENTORY 20,300

5 FREIGHT OUT 2,000

CASH 2,000
payment for freight on sale

6 ACCOUNTS PAYABLE 3,000

MERCHANDISE INVENTORY 3,000
returned inventory to supplier

11 ACCOUNTS PAYABLE ( 45,000- 3,000=42,000) 42,000

MERCHANDISE INVENTORY ( 42,000 x2%) 840
CASH ( 42,000 x .98) 41,160
settlement of accounts payable

13 CASH ( 30,500 x 98%) 29,890

SALES DISCOUNTS ( 30,500 x 2%) 610
ACCOUNTS RECEIVABLE 30,500
collection of accounts receivable
 14 MERCHANDISE INVENTORY 40,500
CASH 40,500
purchase of inventory for cash

15 SALARIES EXPENSE 15,500

CASH 15,500
payment for salaries

16 CASH 120,000
NOTES PAYABLE 120,000
borrowed cash from bank

GJ-02
NOV 17 CASH 5,500
MERCHANDISE INVENTORY 5,500
received cash refund for returned inventories
18 MERCHANDISE INVENTORY 44,200
ACCOUNTS PAYABLE 44,200
purchase of inventory on account, terms 2/10 n/30

20 MERCHANDISE INVENTORY 3,000

CASH 3,000
payment for freight on purchase

23 CASH 36,400
SALES 36,400
sold inventory for cash

COST OF GOODS SOLD 15,500

MERCHANDISE INVENTORY 15,500

26 MERCHANDISE INVENTORY 32,300

CASH 32,300
purchase of inventory for cash

27 ACCOUNTS PAYABLE 15,000

CASH 15,000
partial payment for inventory purchased

28 GOLDEN DRAGON, DRAWING 12,208

CASH 12,208
withdrawal of the owner
 29 SALES RETURNS AND ALLOWANCES 9,500
CASH 9,500
cash refund to customer for defective inventory

30 ACCOUNTS RECEIVABLE 33,700

SALES 33,700
sold inventory on account

COST OF GOODS SOLD 21,500

MERCHANDISE INVENTORY 21,500

30 ADVERTISING EXPENSE 5,500

UTILITIES EXPENSE 2,000
RENT EXPENSE 10,500
SALARIES EXPENSE 15,500
CASH 33,500

2. Postings.
CASH Account No. 110
Date Particulars Post Ref. Debit Credit Balance
Debit Credit
Nov 1 Initial Investment GJ-01 550,000 550,000
Nov 2 Purchase of Equipment GJ-01 450,000 100,000

Nov 3 Purchase of Supplies GJ-01 2,000 98,000

Nov 5 Payment for freight on Sale GJ-01 2,000 96,000

Nov 11 Settlement of Accounts Payable GJ-01 41,160 54,840

Nov 13 Collection of Accounts receivable GJ-01 29,890 84,730

Nov 14 Purchase of inventory GJ-01 40,500 44,230

Nov 15 Payment of salaries GJ-01 15,500 28,730

Nov 16 Borrowed cash from bank GJ-01 120,000 148,730

Nov 17 Received cash refund for returned GJ-02 5,500 154,230

inventories
Nov 20 Payment for freight on purchase GJ-02 3,000 151,230

Nov 23 Sold inventory GJ-02 36,400 187,630

Nov 26 Purchase of inventory GJ-02 32,300 155,330

Nov 27 Partial payment for inventory GJ-02 15,000 140,330
purchased
Nov 28 Withdrawal of the owner GJ-02 12,208 128,122

Nov 29 Cash refund to customer for GJ-02 9,500 118,622

defective inventory
Nov 30 Payment of expenses GJ-02 33,500 85,122

ACCOUNTS REEIVABLE Account No. 120

 Date Particulars Post Ref. Debit Credit Balance

Debit Credit

Nov 4 Sale of inventory on account GJ-01 30,500 30,500

Nov 13 Collection of Accounts receivable GJ-01 30,500 0

Nov 30 Sold Inventory on account GJ-02 33,700 33,700

MERCHANDISE INVENTORY Account No. 130

Date Particulars Post Ref. Debit Credit Balance
Debit Credit
Nov 2 Purchase of Inventory on Account GJ-01 45,000 45,000

Nov 4 GJ-01 20,300 24,700

Nov 6 Returned inventory to supplier GJ-01 3,000 21,700

Nov 11 Settlement of accounts payable GJ-01 840 20,860

Nov 14 Purchase of inventory GJ-01 40,500 61,360
Nov 17 Received cash refund for returned GJ-02 5,500 55,860
inventories
Nov 18 Purchase of inventory on account GJ-02 44,200 100,060

Nov 20 Payment for freight on purchase GJ-02 3,000 103,060

Nov 23 Sold inventory GJ-02 15,500 87,560

Nov 26 Purchase of inventory GJ-02 32,300 119,860

Nov 30 Sold Inventory on account GJ-02 21,500 98,360

OFFICE SUPPLIES Account No. 140

Date Particulars Post Ref. Debit Credit Balance

Debit Credit

Nov 3 Purchase of office supplies GJ-01 2,000 2,000

EQUIPMENT Account No. 150

Date Particulars Post Ref. Debit Credit Balance
Debit Credit
Nov 2 Purchase of equipment for cash GJ-01 450,000 450,000

ACCOUNTS PAYABLE Account No. 210

Date Particulars Post Ref. Debit Credit Balance

Debit Credit

Nov 2 Purchase of inventory on account GJ-01 45,000 45,000

Nov 6 Returned inventory to supplier GJ-01 3,000 42,000

Nov 11 Settlement of accounts payable GJ-01 42,000 0

Nov 18 Purchase of inventory on account GJ-02 44,200 44,200

Nov 27 Partial payment for inventory GJ-02 15,000 29,200

purchased

NOTES PAYABLE Account No. 220

Date Particulars Post Ref. Debit Credit Balance

Debit Credit

Nov 16 Borrowed cash from bank GJ-01 120,000 120,000

GOLDEN DRAGON, CAPITAL Account No. 300

Date Particulars Post Ref. Debit Credit Balance

Debit Credit

Nov 1 Initial Investment GJ-01 550,000 550,000

GOLDEN DRAGON, DRAWING Account No. 310

Date Particulars Post Ref. Debit Credit Balance

Debit Credit

Nov 28 Withdrawal of the owner GJ-02 12,208 12,208

Nov 30 Close Withdrawal account GJ-02 12.208 0

SALES Account No. 410

Date Particulars Post Ref. Debit Credit Balance

Debit Credit

Nov 4 Sale of inventory on account GJ-01 30,500 30,500

Nov 23 Sold inventory GJ-02 36,400 66,900

Nov 30 Sold Inventory on account GJ-02 33,700 100,600

Nov 30 Close Sales Account GJ-02 100,600 0

SALES RETURNS & ALLOWANCES Account No. 415

Date Particulars Post Ref. Debit Credit Balance

Debit Credit
Nov 29 Cash refund to customer for GJ-02 9,500 9,500
defective inventory
Nov 30 Close Sales Returns Account GJ-02 9500 0

SALES DISCOUNT Account No. 420

Date Particulars Post Ref. Debit Credit Balance

Debit Credit

Nov 13 Collection of Accounts receivable GJ-01 610 610

30 Closing entry GJ-03 610 0

COST OF GOODS SOLD Account No. 510

Date Particulars Post Ref. Debit Credit Balance

Debit Credit

Nov 4 GJ-01 20,300 20,300

Nov 23 Sold inventory GJ-02 15,500 35,800

Nov 30 Sold Inventory on account GJ-02 21,500 57,300

30 Closing entry GJ-03 57,300 0

FREIGHT OUT Account No. 610

Date Particulars Post Ref. Debit Credit Balance

Debit Credit

Nov 5 Payment for freight on sale GJ-01 2,000 2,000

30 Closing entry GJ-03 2,000 0

ADVERTISING EXPENSE Account No. 620

Date Particulars Post Ref. Debit Credit Balance

Debit Credit

Nov 30 Payment of expenses GJ-02 5,500 5,500

30 Closing entry GJ-03 5500 0

 UTILITIES EXPENSE Account No. 630
Date Particulars Post Ref. Debit Credit Balance

Debit Credit

Nov 30 Payment of expenses GJ-02 2,000 2,000

30 Closing entry GJ-03 2000 0

RENT EXPENSE Account No. 640

Date Particulars Post Ref. Debit Credit Balance

Debit Credit

Nov 30 Payment of expenses GJ-02 10,500 10,500

30 Closing entry GJ-03 10,500 0

SALARIES EXPENSE Account No. 650

Date Particulars Post Ref. Debit Credit Balance

Debit Credit

Nov 15 Payment of salaries GJ-01 15,500 15,500

Nov 30 Payment of expenses GJ-02 15,500 31,000

30 Closing entry GJ-03 31,000 0

INCOME SUMMARY Account No. 660

Date Particulars Post Ref. Debit Credit Balance

Debit Credit

Nov 30 To close income and expenses GJ-03 17,810 17,810

30 Closing entry GJ-03 17,810 0

3. Trial Balance

G.D. Enterprises
Trial Balance
November 30, 2017
Account Title Debit Credit
Cash P 85,122
Accounts Receivable 33,700
Merchandise Inventory 98,360
Office supplies 2,000
 Equipment 450,000
Accounts payable P 29,200
Notes Payable 120,000
Golden Dragon, capital 550,000
Golden Dragon, drawing 12,208
Sales 100,600
Sales returns and allowances 9,500
Sales discount 610
Cost of goods sold 57,300
Freight out 2,000
Advertising expenses 5,500
Utilities Expense 2,000
Rent expense 10,500
Salaries expense 31,000

P 799,800 P 799,800

4. Financial Statements
STATEMENT OF PERFORMANCE
FOR THE MONTH ENDED NOVEMBER 30, 2017
Sales P 100,600
Sales returns and allowances P 9,500
Sales Discount 610 (10,110)
Net Sales 90,490
Cost of Goods sold (57,300)
Gross Profit 33190
Freight out 2,000
Advertising Expense 5,500
Utilities expense 2,000
Rent Expense 10,500
Salaries Expense 31,000 (51,000)
Net loss P (17,810)

G.D. Enterprises
STATEMENT OF OWNER’S EQUITY
FOR THE MONTH ENDED NOVEMBER 30, 2017
Capital, beginning -
Investment P 550,000
Net loss (17,810) 532,190
Total 532,190
Withdrawal 12,208 (12,208)
Capital, ending P 519,982
 G.D. Enterprises
STATEMENT OF FINANCIAL POSITION
AS OF NOVEMBER 30, 2017

ASSETS

Current Assets:

Cash P 85,122

Accounts Receivable 33,700

Merchandise Inventory 98,360

Office Supplies 2,000 P 219,182

Non-Current Assets:

Equipment 450,000 450,000

Total Assets 669,182

LIABILITIES & CAPITAL

Current Liabilities: 29,200 29,200

Non-current Liabilities: 120,000 120,000

Total Liabilities 149,200

Owner’s Equity

Golden Dragon, Capital 519,982 519,982

Total Liabilities and Equity P 669182

G.D. Enterprises
STATEMENT OF CASH FLOWS
FOR THE MONTH ENDED DECEMBER 30, 2017
Operating activities
Cash received from clients P 66,290

Cash refund from supplier 5,500

Payments to suppliers (133,960)

Payments to employees (31,000)

Payment for rent (10,500)

 Payment for utilities (2,000)

Payment for office supplies (2,000)

Payment for advertising (5,500)

Cash refund to customer (9,500)

Net cash provided by (used in) operating activities P (122,670)

Cash flow from Investing Activities:

Payment to acquire equipment (450,000)

Net cash provided by (used in) investing activities (450,000)

Cash flow from Financing Activities:

Cash received as investment by owner 550,000

Cash received as borrowing 120,000

Payments for withdrawals by owner (12,208)

Net cash provided by (used in) financing activities 657,792

Net increase (decrease) in Cash 85,122

Cash balance at the beginning of the period 0

Cash balance at the end of the period P 85,122

GJ-03 5. Closing Entries

Date Particulars Post Ref Debit Credit
Nov 30 Sales 100,600
Income Summary 17,810
Sales Return and allowances 9,500
Sales Discount 610
Cost of Goods sold 57,300
Freight out 2,000
Advertising Expense 5,500
Utilities Expense 2,000
Rent Expense 10,500
Salaries Expense 31,000

Dragon, Capital 17,810

 Income Summary 17,810

Dragon, Capital 12,208

Dragon, Drawing 12,208

6. Post-Closing Trial Balance

G.D. Enterprises
Post-Clsoing Trial Balance
November 30, 2017
Account Title Debit Credit

Cash 85,122
Accounts Receivable 33,700
Merchandise Inventory 98,360
Office Supplies 2,000
Equipment 450,000
Accounts Payable 29,200
Notes Payable 120,000
Dragon, Capital 519,982
P 666,182 P 666,182

Case 2 : Same as Periodic Inventory System Answers