blue pacific company inc. Sells is a merchandizing company.

The company grants sales discount to its customers of 2710 n/

on january 01st,2019. the company depreciates its assets by straighn line method and it uses period inventory system. exc
profit upon COGS.
the transacctions during january were as follows:

1) date: january 1,2019. the stockhokders invested $70 000,00 in the business. $25000,00 cash. - a lot worth in $15 000,00
000,00 (useful life:30-year, residual value:$2000,00).-two picks-ups worth $5000,00 each(useful life 8-year,residual value
$5,00 100 000 shares authorized by charter.

1/1/2019
cash $ 25,000.00
land $ 15,000.00
buildings $ 20,000.00
vehicles $ 10,000.00 5000 por 2
common stock $70,000.00

openning entry of Blue pacif Co.

2) Date: january 1,2019. Blue Pacific Co. Acquires 250 of preferred stock at a per unit price of $7,00,$3 par, from Co.Merica
simple/year, term 6-year. Dividends pay day:feb 02th,2020.

1/1/2019
temporary investment-preferred stock $ 1,750.00
cash $ 1,750.00

to record the adquisition of 250 preferred stock from Co.Merica industries, at a per unit price of
$7,00, $3 par.

3) Date: january 1,2019 Blue Pacific Co. Acquires merchandises from continental corporation for $18 500,00
(before sale tax) conditions: 3/20 n/60, l-9087)
 3) Date: january 1,2019 Blue Pacific Co. Acquires merchandises from continental corporation for $18 500,00
(before sale tax) conditions: 3/20 n/60, l-9087)

1/1/2019
purchases $ 18,500.00
value added tax $ 2,405.00

accounts payable-Co Merica industries $ 20,905.00

for recording the purchase of merchandise for $18 500,00 on account

(before tax) conditions 3/20 n/60 l-9087
 scount to its customers of 2710 n/60. the company began to run operations
uses period inventory system. excat time for adjustments and obtains 40%
GS.

00 cash. - a lot worth in $15 000,00. - a building worth in $20

ch(useful life 8-year,residual value:$700,00). par value/share
y charter.

ice of $7,00,$3 par, from Co.Merica industries,$2,00 dividend

ay:feb 02th,2020.

ration for $18 500,00

 4) Date: january 1,2019 Blue Pacific Co. Acquires a 6-month coverage fire insurance from National Insurance compa

1/1/2019
prepaid insurance $ 60.00
cash $ 60.00

to record the adquisition of 6-month coverage fire insurance for $60,00 from National Insurance Company.

5) on january 1st,2019 Blue Pacific Co. Borrows $12000,00 from HSBC, the financial guarantee is a 20% 6-month bill of excha
interest payment is at month due.

1/1/2019
cash $12,000.00
short term-notes payable $12,000.00

to record a loan for $12000,00 from HSBC, the financial guaratee is a 20%, 6-month bill of exchange. The interest
payment is at month due.

6) Date: setember 2th,2019 Blue Pacific pays $107 for freigh in to Fast Trucking company for the merchandises acquired
continental Corporation on setember 1.
2/9/2019
freigh in $ 107.00

cuando adquiere
freigh in existe value
value added tax $ 13.91 added tax
cash $ 120.91

to record the payment of freigh in for $107 to Fast Trucking company for the merchandises
acquired from continental Corporation on setember 1

7) Date: january 5th, 2019 Blue Pacific Co. Purchases furniture for $9000,00 (after tax) and office equipment for
$8700,00 (after tax) to Office Depot. Co Blue Pacific Co. Pays 40% in advance and the remaining amount is secured by a
90-day 18% Bill of exchange #3117-0, the interest must be paid on due date.( useful life 6-year, residual value: $850,00
for the furniture and useful life 4-year, residual value:$940,00 for the equipment)
 7) Date: january 5th, 2019 Blue Pacific Co. Purchases furniture for $9000,00 (after tax) and office equipment for
$8700,00 (after tax) to Office Depot. Co Blue Pacific Co. Pays 40% in advance and the remaining amount is secured by a
90-day 18% Bill of exchange #3117-0, the interest must be paid on due date.( useful life 6-year, residual value: $850,00
for the furniture and useful life 4-year, residual value:$940,00 for the equipment)
5/1/2019
suma de furniture y
equipment $ 7,699.12 $ 15,663.72 equipment
suma de los 9000
furniture $ 7,964.60 $ 17,700.00 mas los 8700
value added tax $ 2,036.28
short term notes payable $10,620.00
cash $ 7,080.00

to record the purchase of furniture for $9000,00(after tax) and office equipment for
$8700(after tax) to office depot. Paid 40% in advance and the remaining amount is secured
by a 90-day 18% bill of exchange #3117-0, the interest must be paid on due date.

8) on january 11, Blue pacific Co sells merchandises to Sunrise Co. For $44000,00 (before tax) in cash. l-
0001

11/1/2019
cash $49,720.00
value added tax $ 5,720.00
sales revenue $44,000.00

to record the sale of merchandises for $44000,00(before tax) in cash to Sunrise Co. I-0001

9) On january 12, Blue Pacific Co sells merchandises to Holtermann Alliance Co. For $9884,50
(l-0002), after sale tax, conditions 2/10, n/30.

12/1/2019

accounts receivable $ 9,884.50

value added tax $ 1,137.15
sales revenue $ 8,747.35
 to record the sale of merchandises for $9884,50 after tax to Holtermann Alliance
Co.conditions 2/10 n/30 (l-0002)

10) On january 12, blue pacific co. Purchases merchandises to china trading Co. For
$25000,00 (after tax), blue Pacific co. Paid 30% of invoiced amount in advance and the
remaining amount is secured by l-90856,conditions (3/20,n/90).

12/1/2019
purchases $22,123.89 $ 25,000.00
value added tax $ 2,876.11
accounts payable $17,500.00
cash $ 7,500.00

to record the purchase of merchandises to china trading co. For $25000(after tax), paid 30%
of invoiced amount in advance and the remaining amount is secured by l-
90856,conditions(3/20,n/90)

10) on january 14th blue pacific purchases merchandises to asian trading corporation for
$42356,00(after tax,conditions, 2/10,n/30) blue pacific pays 25% of invoice amount and
advance, the remaining is secured by an 8,80%,60-day promissory note(33129)

1/14/19
purchases $37,483.19
value added tax $ 4,872.81
short- term notes payable $31,767.00
cash $10,589.00

to record the purchase of merchandises to Asian Trading company for $42 356,00,paid 25% of invoice in advance, the
remaining is secured by an 8,80%, 60-day promissory note(33129)
m National Insurance company for $60,00

nal Insurance Company.

a 20% 6-month bill of exchange. The

change. The interest

the merchandises acquired from

office equipment for

amount is secured by a
residual value: $850,00
ment)
invoice in advance, the
 11) on january 15,blue pacific sells merchandises to NG logistics for $12800, before sale tax, the costumer pays 40% of invo
day 7% promissory note as payment guaratee(l-0003,promissory note -3138-0)

1/15/19
cash $ 5,785.60
short-term notes receivable $ 8,678.40
value added tax $ 1,664.00
sales revenue $ 12,800.00

to record the sale of merchandises to NG logistics for $12800(before tax) , the customer pays 40% of invoice amount in adva
note as payment guarantee(l-0003,promissory note#3138-0)

12) on january 16,blue pacific co purchases two delivery trucks to costa rica´s nissan trucks dealer at a per unit price of $34
and financed the remaining amount by means of 12-year 12% NY savings and loan group mortgage. the finance house trans
incurred the following additional costs.-legal fees for transfer taxes $675,00(before tax)-custom taxes $4300,00-installati
intallition of radio communication system $600,00(after tax) provider raditel l-6754.-purchase of radios and ma

trucks paid formula valor presente{

68800 17200 6.194374225

tax debt $ 8,330.14
8944 51600
invoice interes
77744 6192
 mortagage due within one
year
$ 2,138.14

cost VAI
legal fees $ 675.00 $ 87.75
custom taxes $ 4,300.00 $ -
installation of logos $ 785.00 $ 102.05
installation of radios $ 530.97 $ 69.03
radios and materials $ 2,035.40 $ 264.60
$ 8,326.37 $ 523.43

1-16-19

machinery $77,126.37
value added tax $ 9,467.43
mortgage due within one year $ 2,138.14
mortgage payable $ 49,461.86
cash $ 34,993.80

to record the purchase of2 delivery truck to costa rica nissan trucks dealer at a per unit price of $34400(before tax) the com
financial the remaining amount by means by 12-year,12%, NY saving and loan group mortgage .the finance house tranferred
dealer. the company incurred the following additional cost :-legal fees for transfer taxes $675,00(before tax)-custom ta
$785,00(before tax) provider;art attack co,l-22316.-intallition of radio communication system $600,00(after tax) provider r
materials $2300,00(after tax) provider:raditiel col-6754.

12) on january 18 bluepacific inc returns merchandises to continental corporation worth $1280 continental corpora

1/18/19
accounts payable-continental company $ 1,446.40
value added tax $ 166.40
purchases returns and allowances 1280
 to record the return of merchandise to continental corporation for $1280,00

13)on january 19, blue pacific inc settles l-9087 to continental corporation for merchandises acquired on
1/19/19

accounts payable-continental corporation $19,458.60

purchase discount $ 516.60

cash $ 18,942.00

to record the settlement of l-9087 to continental corporation for merchandises acquired on setember 1st w

14) on january 20, settles l-90856 to china tading company

1-20-19
accounts payable-china trading company $17,500.00
purchase discount $ 464.60
cash $ 17,035.40

to record the settle l-90856 to china trading co with a discount of 3%

15) on january 20, the accounting department of blue pacific makes the payroll closure, the total accrued gross salary is $12
withholdings of 11% and social loads of 29% are recorded
 15) on january 20, the accounting department of blue pacific makes the payroll closure, the total accrued gross salary is $12
withholdings of 11% and social loads of 29% are recorded

1-20-19
salary expense $12,000.00
salary withholding payable $ 1,320.00
salary payable $ 10,680.00

to record payroll closure on january 20th,2019

1-20-19
social loads expense $10,680.00
social loads payable $ 10,680.00

to record social loads expense pays on payroll closure on january 20th,2019

16) on january 22, blue pacific co acquires three 9 3/4 % 6-year bonds,from mendian corporation at a price unit of $7000,00
then the bonds price rises to 101, the payment of interest is quarterly.

bonds receivable $21,000.00

interest receivable on bonds $ 117.80
premiun on bonds receivable $ 210.00
cash $ 21,327.80

to record the adquisition of 3 bonds, at a price unit of $7000,00 at 9 3/4 6-year bond from mendian corporation, the bonds w
date rises to 101
to record the adquisition of 3 bonds, at a price unit of $7000,00 at 9 3/4 6-year bond from mendian corporation, the bonds w
date rises to 101

17) on january 23, blue pacific co, sells merchandises to western enterprices for $23000,00 in cash (l-0004), simple discount o
pays the transportation of merchandises at a cost of $231,00(before tax) to rainbow delivering

1-23-19 $25,990.00
cash $ 2,990.00
value added tax $ 23,000.00
saled revenue

to record the sell of merchandises to western enterpricing for $23000 in cash (before tax) simple discount of 3%
1-23-19
freigh out 231
value added tax 30.03
cash 261.03

to record payment of freigh out to rainbow delivery co for $231,00(before tax) ck-4532

18) on january 24, blue pacific discounts promissory note 3138-0 of NG logistics inc. Issued on january 15 to NY savings and l
23,50%

interes DA interes con dua amount

$ 49.93 $ 8,728.33 $ 118.01
9 days on hands of the company $ 8,610.32
21 days on hands of the NY saving $ 68.08

1-24-19
cash $ 8,610.32
interest expense on notes discounted $ 68.08
notes discounted on short-term notes receivable $ 8,678.40

to record discounted short term notes receivable to NY saving and loan at a discount rate
ale tax, the costumer pays 40% of invoice amount in advance and signs a 30-
ee(l-0003,promissory note -3138-0)

er pays 40% of invoice amount in advance and signs a 30-day 7% promissory

promissory note#3138-0)

trucks dealer at a per unit price of $34400,00(before tax),blue pacific co paid 25% of invoiced amount
up mortgage. the finance house transferred to funds to costa rica´s nissan trucks dealer. blue pacific co
tax)-custom taxes $4300,00-installation of logos $785,00(before tax) provider;art attack co,l-22316.-
itel l-6754.-purchase of radios and materials $2300,00(after tax) provider:raditiel col-6754.

cash tax

esto es el
tax de los
trucks mas
esto es la suma del el tax de los
cost a lo pagagado gastos que
$ 34,993.80 mas el tax es el vai
$ 9,467.43
 mortgage payable
$ 49,461.86

el total es la
vai es multiplicar por suma de
total 13% el cost cost y vai
$ 762.75
$ 4,300.00 porque da cero?
$ 887.05
$ 600.00
$ 2,300.00
$ 8,849.80

suma de machinery
mas los costos

it price of $34400(before tax) the company pays 25% of invoice amount and
mortgage .the finance house tranferred the funds to costa rica´s nissan trucks
r taxes $675,00(before tax)-custom taxes $4300,00-installation of logos
n system $600,00(after tax) provider raditel l-6754.-purchase of radios and
ovider:raditiel col-6754.

tion worth $1280 continental corporation issues credit note #34218

al corporation for $1280,00

oration for merchandises acquired on setember 1(l-3333)

descuento
que es los
resta de la deuda 17
20905 menos lo multiplicado
que devolvimos s por 3% de
que es lo 1446 sin tax descuento
$ 17,220.00 $ 516.60
account le quita el
descuento

rchandises acquired on setember 1st with a discount of 3%

to china tading company

sin tax
$ 15,486.73

a discount of 3%

re, the total accrued gross salary is $12000 salary

e recorded
re, the total accrued gross salary is $12000 salary
e recorded

2019

n january 20th,2019

corporation at a price unit of $7000,00 on date the market interest is 8 1/3%

ayment of interest is quarterly.
premium
$ 21,210.00 $ 210.00
interest
$ 117.80

om mendian corporation, the bonds were sold at premiun due to the market value on that
ses to 101
om mendian corporation, the bonds were sold at premiun due to the market value on that
ses to 101

0,00 in cash (l-0004), simple discount of 3% was applied to this transaction and blue pacific
31,00(before tax) to rainbow delivering co.(l-01386) ck-4532

ash (before tax) simple discount of 3% was applied

31,00(before tax) ck-4532

sued on january 15 to NY savings and loan at a discount rate of

cash
interest

and loan at a discount rate

 19) on january 25, blue pacific opens a petty cash fund for$500,00 .fernanda jones is thecustodi
1-25-19
petty cash $500,00
cash $500,00

to record the open of petty cash fund for $500,00 fernanda jones is custodian.

20) on january 26, hj stores paid in advance l-1005 for $13300,00(before tax) to blue pacific.co for merchandises that will be
february 10.
1-26-19
cash $ 15,029.00
value added tax $ 1,729.00
advance to customers $ 13,300.00

to record the paid in advance from hj stores for $13300(before tax) for the merchandises that will be delivered on

21) on january 27,blue pacific co, pays $7450,00(after tax) to summit corporation for merchandises to be delivered on

1-27-19
advance to suppliers $ 6,592.92
value added tax $ 857.08
cash $ 7,450.00

to record the payment in advance for $7450,00 (after tax) to summit corporation for merchandises
 to record the payment in advance for $7450,00 (after tax) to summit corporation for merchandises

22) on january 27, blue pacific co. Pays $3230,00 to BB Book Shop for supplies,l-8610,ck-019
1-27-19
supplies $ 3,230.00
value added tax $ 419.90
cash $ 3,649.90

to record the purchase of supplies to BB Book shop for $3230,00 (before tax) l-8610

18) on january 27, blue pacific co. Acquires five lap-tops from JL computers center at a per unit price of $1600,00 before sa
pacific co pays 20% of invoiced amount, the remaining is secured by 2-year 10% promissory note.(useful life 4-year,scra
$800,00/unit)(l-5556,promissory note #8887).CK-020
lap-tops tax invoice
8000 $ 1,040.00 $ 9,040.00
cash debt
$ 1,808.00 $ 7,232.00
formula valor presente interes
1.73553719 $ 723.20
$ 4,167.01 short term long term
$ 3,443.81 $ 3,788.19

equipment $ 8,000.00
value added tax $ 1,040.00
short term-notes payable $ 3,443.81
long term notes payble $ 3,788.19
cash $ 1,808.00

to record the adquisition of 5-lap-tops from JL computers center at a per unit price pf $1600(before tax).the company paid 2
is secured by 2-year,10% promissory note.
to record the adquisition of 5-lap-tops from JL computers center at a per unit price pf $1600(before tax).the company paid 2
is secured by 2-year,10% promissory note.

19) the petty cash beak down on january 30 is as follows: invoices: -invoice 667 from white star bookshop $32,00(before tax)
paper reams.-invoice 5521 from dhl:$26,00(before tax),for documents sent to gh legal in maimi.-invoice 3332 from ht b
$45,00(before tax),purchase of snacks for the board´s meeting. provisional vouchers:#001 for $13,00 #002 for $20,00
vouchers: #001 for $10,00 paying a taxi service from international juan santa maria airport to blue pacific co´s facil

1-30-19
supplies $ 32.00
pasting and handling $ 26.00
miscellaneous expense $ 45.00
transportation expense $ 10.00
value added tax $ 13.39
cash $ 126.39

for replacing petty cash fund

20) the supplies inventory shows a balance of $3000,00

1-30-19
supplies expense $ 3,000.00
supplies $ 3,000.00

to record supplies expense

21) on january 30,blue pacific co. Pays salary to is employees and makes payroll closure from setember 23 to
setember 30, accrued salary $4800,00,salary withholdings of 11% and social loads of 29% are recorded

1-30-19
salary payable $ 10,680.00
 esto
proviene de
un asiento
anterior de
cash $ 10,680.00 payroll

to record the payment of salaries

1-30-19
salary expense $ 4,800.00
salary withholdings $ 528.00
salary payable $ 4,272.00

to record the payroll adjustment

1-30-19
social loads expense $ 1,392.00
social loads payable $ 1,392.00

to record social loads expense

22) on january 30,blue pacific co receives the following charges: -electricity services during january $154,00 (before tax)
(provider:ICE)(l-22134)-water supply service during january:$75,00(before tax)(provider AYA)(l-94480)-internet service during
january:$28,00(before tax)(provider:ICE)(l-40055)-telephone service during january $175,00(before tax)(provider;ICE)(l-
31144)-TV cable service during january $46,00(before tax)(provider:tele cable)(l-52264)
1-30-19
utilities expense $ 478.00
value added tax $ 62.14
accounts payable $ 540.14

to record the utilities expense during january.

anda jones is thecustodian.ck 017

erchandises that will be delivered on

that will be delivered on february 10th.

ndises to be delivered on frebuary 9CK-018

for merchandises
 for merchandises

610

ce of $1600,00 before sale tax. Blue

te.(useful life 4-year,scrap value:

tax).the company paid 20% of invoiced amount, the remaining

ote.
 tax).the company paid 20% of invoiced amount, the remaining
ote.

shop $32,00(before tax),purchase of

i.-invoice 3332 from ht bakery:
13,00 #002 for $20,00 petty cash
t to blue pacific co´s facilities.
y $154,00 (before tax)
)-internet service during
e tax)(provider;ICE)(l-
2264)
 blue pacifi
statement o
january
cash flows from operating activities
inflows
cash collections $ 96,824.60
total inflows $ 96,824.60
outflows
for insurance $ 60.00
to suppliers $ 66,674.53
to employees $ 10,680.00
petty cash $ 500.00
total outflows $ 77,914.53
net cash inflow from operating activities: $ 18,910.07

cash flows from investing activities

inflows
sale of financing asset $ 8,610.32
total inflows $ 8,610.32
outflows
adquisition of plant assets: $ 43,881.80
adquisition of financial asset $ 23,077.80
total outflows $ 66,959.60

net cash outflow from investing activites: $ -58,349.28

cash flows from financing activities

inflows
proceed from issuence of stock: $ 25,000.00
loan from HSBC $ 12,000.00
total inflows: $ 37,000.00
net cash inflow from financing activities: $ 37,000.00
increase(decrease) in cash:
cash balance,may 31th,2020
cash balance,march 30,2020

increase(decrease)in cash: $ -2,439.21

cash balance january 01,2019 $ -
cash balance january 31,2019
 blue pacific company
statement of cash flows
january 31,2019
 periodic sytem method to calculate peridic
beggining inventory $ - inventory system
purchases $ 78,107.08
purchase disocunts $ 981.20
purchase returns and allowances $ 1,280.00
freight in $ 107.00
net purchases $ 75,952.88 freigh in se suma
cost of goods available for sale $ 75,952.88 net purchase minus beginning inventory
ending inventory $ 55,200.00
cost of good sold $ 20,752.88 cost - ending

1-31-19
cost of goods sold $ 20,752.88
cuando hay inventario inicial hay que
inventory(1-31-19) $ 55,200.00 eliminar el inventario antiguo
purchase discounts $ 981.20
purchase returns and allowances $ 1,280.00
purchases $ 78,107.08
freight in $ 107.00

recording cost of goods sold and inventory

example for closing entries

cost of good sold
cost of good solg $ 10,000.00 30752.88
inventory $ 10,000.00 10000
40752.88

income summary $ 40,752.88 cost of good sold

cost of good sold $ 40,752.88 30752.88
10000
0
 freight out en sales se resta

of good sold

of good sold
0