Business Transactions for Merchandising Business

Mariano Lerin Bookstore

March Year 2022

2 Purchased merchandise on credit from Digao Publishers, terms 2/10, n/30, FOB destination, P74,000
3 Sold merchandise on credit to Detoya Book Shop, terms 1/10, n/30, FOB shipping point, P10,000
5 Sold mechandise for cash, P7,000
6 Purchased and received merchandise on credit from Made Easy Bookstore, terms 2/10, n/30, FOB shipping point, P42,000
7 Received freight bill from Super Express from shipment received on March 6, P570
9 Sold merchandise on credit to Recoletos Books, terms 1/10, n/30, FOB destination, P38,000
10 Purchased merchandise from Digao Publishers, terms 2/10, n/30, FOB shipping point, P26,500, including freight costs of P500
11 Received freight bill from Super Express for sale on March 9, P291
12 Paid Digao Publishers for purchase of March 2
13 Received payment in full for Detoya Book Shop's purchase of March 3
14 Paid Made Easy Bookstore half the amount owed on the March 6 purchase. A discount is allowed on partial payment.
15 Returned faulty merchandise worth P3,000 to Digao Publishers for credit against purchase of March 10
16 Purchase office supplies from Olamit Supplies for P4,780, terms n/10
17 Received payment from Recoletos Books for half of the purchase of March 9. A discount is allowed on partial payment.
18 Paid Digao Publishers in full for amount owed on purchase of March 10, less return on March 15
19 Sold merchandise to Sir Ed Trading on credit, terms 2/10, n/30, FOB shipping point, P7,800
20 Returned for credit several times of office supplies purchased on March 16, P1,280
22 Issued a credit memo to Sir Ed Trading for returned merchandise, P1,800
25 Paid for purchase of March 16, less retums on March 20
26 Paid freight entity for freight charges for March 7 and 11
27 Received payment of amount owed by Sir Ed Trading for purchase of March 19, less credits of March 22
28 Paid Made Easy Bookstore for the balance on the March 6 purchase
31 Sold merchandise for cash, P9,730
31 Owner made an additional investment to the company for P120,500
31 Mr. Mariano Lenin, withdrew cash P112,000

Additional Transactions :
A Beginning Owners Capital P500,000-
 B Ending Inventory P110,000-
C Beginning Cash Balance, P500,000
March 2022
Date Account Title Debit Credit
2 Purchases ₱ 74,000.00
Accounts Payable ₱ 74,000.00

3 Accounts Receivable ₱ 10,000.00

Sales ₱ 10,000.00

5 Cash ₱ 7,000.00
Sales ₱ 7,000.00

6 Purchases ₱ 42,000.00
Account Payable ₱ 42,000.00

7 Freight-In ₱ 570.00
Accounts Payable ₱ 570.00

9 Accounts Receivable ₱ 38,000.00

Sales ₱ 38,000.00

10 Purchases ₱ 26,000.00
Freight-In ₱ 500.00
Accounts Payable ₱ 26,500.00

11 Freight-out Expense ₱ 291.00

Accounts Payable ₱ 291.00

12 Accounts Payable ₱ 74,000.00

Purchase Discount ₱ 1,480.00
Cash ₱ 72,520.00

13 Cash ₱ 9,900.00
Sales Discount ₱ 100.00
 Account Receivable ₱ 10,000.00

14 Accounts Payable ₱ 21,000.00

Purchase Discount ₱ 420.00
Cash ₱ 20,580.00

15 Accounts Payable ₱ 3,000.00

Purchase Return And Allowances ₱ 3,000.00

16 Office Supplies ₱ 4,780.00

Account Payable ₱ 4,780.00

17 Cash ₱ 18,810.00
Sales Discount ₱ 190.00
Account Receivable ₱ 19,000.00

18 Accounts Payable ₱ 23,500.00

Purchase Discount ₱ 470.00
Cash ₱ 23,030.00

19 Accounts Receivable ₱ 7,800.00

Sales ₱ 7,800.00

20 Accounts Payable ₱ 1,280.00

Office Supplies ₱ 1,280.00

22 Sales Return And Allowances ₱ 1,800.00

Account Receivable ₱ 1,800.00

25 Accounts Payable ₱ 3,500.00

Cash ₱ 3,500.00
26 Accounts Payable ₱ 861.00
Cash ₱ 861.00

27 Cash ₱ 5,880.00
Sales Discount ₱ 120.00
Account Receivable ₱ 6,000.00

28 Accounts Payable ₱ 21,000.00

Cash ₱ 21,000.00

31 Cash ₱ 9,730.00
Sales ₱ 9,730.00

31 Cash ₱ 120,500.00
Mariano Lerin, Capital ₱ 120,500.00

31 Mariano Lerin, Withdrawal ₱ 112,000.00

Cash ₱ 112,000.00
 CASH
March 2022 ITEMS DEBIT March 2022 ITEMS CREDIT
1 Beginning Cash ₱500,000.00 12 Payment ₱72,520.00
5 Sales ₱7,000.00 14 Payment ₱20,580.00
13 Received Payment ₱9,900.00 18 Payment ₱23,030.00
17 Received Payment ₱18,810.00 25 Payment ₱3,500.00
27 Received Payment ₱5,880.00 26 Payment ₱861.00
31 Sales ₱9,730.00 28 Payment ₱21,000.00
31 Investment ₱120,500.00 31 Withdrawal ₱112,000.00
₱671,820.00 ₱253,491.00
₱418,329.00

ACCOUNTS RECEIVABLE
3 Sales ₱10,000.00 13 Received Payment ₱10,000.00
9 Sales ₱38,000.00 17 Received Payment ₱19,000.00
19 Sales ₱7,800.00 22 Sales Returns And Allowances ₱1,800.00
27 Received Payment ₱6,000.00
₱55,800.00 ₱36,800.00
₱19,000.00

OFFICE SUPPLIES
16 Supplies ₱4,780.00 20 Returned ₱1,280.00
₱3,500.00

ACCOUNTS PAYABLE
12 Payment ₱74,000.00 2 Purchases ₱74,000.00
14 Payment ₱21,000.00 6 Purchases ₱42,000.00
15 Purchase Returns And Allowances ₱3,000.00 7 Freight-In ₱570.00
18 Payment ₱23,500.00 10 Purchases ₱26,500.00
20 Purchase Returns And Allowances ₱1,280.00 11 Freight-Out ₱291.00
25 Payment ₱3,500.00 16 Purchases ₱4,780.00
26 Payment ₱861.00
28 Payment ₱21,000.00
₱148,141.00 ₱148,141.00
₱0.00

MARIANO LERIN, CAPITAL

1 Beginning Capital ₱500,000.00
31 Investment ₱120,500.00
₱620,500.00

MARIANO LERIN, WITHDRAWAL

31 Withdrawals ₱112,000.00

SALES
3 Sales ₱10,000.00
5 Sales ₱7,000.00
9 Sales ₱38,000.00
19 Sales ₱7,800.00
31 Sales ₱9,730.00
₱72,530.00

SALES DISCOUNTS
13 Received Payment ₱100.00
17 Received Payment ₱190.00
27 Received Payment ₱120.00
₱410.00
 PURCHASE DISCOUNTS
12 Payment ₱1,480.00
14 Payment ₱420.00
18 Payment ₱470.00
₱2,370.00

PURCHASE RETURNS AND ALLOWANCES

15 Purchase Returns And Allowances ₱3,000.00

SALES RETURNS AND ALLOWANCES

22 Sales Returns And Allowances ₱1,800.00

FREIGHT-IN
7 Freight-In ₱570.00
10 Freight-In ₱500.00
₱1,070.00

FREIGHT-OUT
11 Freight -Out ₱291.00

PURCHASE
2 Purchase ₱74,000.00
6 Purchase ₱42,000.00
10 Purchase ₱26,000.00
₱142,000.00
 Mariano Lerin, Bookstore
Trial Balance
March 31, 2022

ACCOUNT TITLES DEBIT CREDIT

Cash ₱418,329.00
Accounts Receivable ₱19,000.00
Office Supplies ₱3,500.00
Purchases ₱142,000.00
Purchase Discounts ₱2,370.00
Purchase Returns And Allowances ₱3,000.00
Accounts Payable ₱0.00
Sales ₱72,530.00
Sales Discounts ₱410.00
Sales Returns And Allowances ₱1,800.00
Freight-In ₱1,070
Freight-Out ₱291.00
Capital ₱620,500.00

Withdrawal ₱112,000.00
Total ₱698,400.00 ₱698,400.00
 Mariano Lerin Bookstore
Statement of Comprehensive Income
For the Month Ended, March 31, 2022

Sales ₱72,530.00
Less: Sales Returns and Allowances ₱1,800.00
Sales Discounts ₱410.00 ₱2,210.00
Net Sales: ₱70,320.00
Mariano Lerin, Beginning Inventory ₱0.00
Purchases ₱142,000.00
Less: Purchase Discounts ₱2,370.00
Purchase Returns and Allowances ₱3,000.00 ₱5,370.00
Net Purchases ₱136,630.00
Add: Freight In ₱1,070.00
Cost of Goods Available for Sale ₱137,700.00
Less: Mariano Lerin, Ending Inventory ₱110,000.00
Cost of Goods Sold ₱27,700.00
Gross Profit ₱42,620.00
Less: Operating Expense
Selling Expense
Freight Out ₱291.00
Total Selling Expense ₱291.00
Total Operating Expense ₱291.00
Net Income ₱42,329.00
 Statement of Changes in Equity
For the Month Ended, March 31, 2022

Mariano, Lerin Beginning Capital ₱500,000.00

Add: Additional Investment ₱120,500.00
Net Income ₱42,329.00
Total ₱662,829.00
Less: Withdrawals ₱112,000.00
Mariano, Lerin Ending Capital ₱550,829.00
 Mariano Lerin Bookstore
Statement of Financial Position
As of March 31,2022

ASSETS
Current Assets
Cash ₱418,329.00
Accounts Receivable ₱19,000.00
Office Supplies ₱3,500.00
Ending Inventory ₱110,000.00
Total Current Assets ₱550,829.00
Total Assets ₱550,829.00
LIABILITIES
Total Liabilities ₱0.00
OWNER'S EQUITY
Merin Lerin, Capital ₱550,829.00
Total Liabilities and Owner's Equity ₱550,829.00
 Mariano Lerin Bookstore
Statement of Cash Flows
For the Month Ended, March 31, 2022

Cash Flows from Operating Expense

Cash Received from ;
Sales ₱16,730.00
Collections ₱34,590.00
Cash Payments for: Accounts Payable -₱141,491.00
Net Cash provided by (used by) operating activities -₱90,171.00
Cash Flows from Financing Activities
Cash received as investment ₱120,500.00
Cash payments for withdrawals -₱112,000.00
Net Cash provided by (used by) financing activities ₱8,500.00
Net decrease in cash -₱81,671.00
Beginning Cash Balance ₱500,000.00
Ending Cash Balance ₱418,329.00