Aug.

1 Accounts Receivable - Lacierda 21,000

Sales 21,000

3 Purchases 38,000
Accounts Payable - Cabellon 38,000

5 Freight-In 290
Cash 290

6 Store Supplies 6,360

Accounts Payable - Ipil 6,360

8 Purchases 36,000
Accounts Payable - Pagadian 36,000
Freight-In 200
Accounts Payable - Pagadian 200

12 Accounts Payable - Cabellon 6,000

Purchase Returns and Allow. 6,000

15 Accounts Receivable - Columban 12,000

Sales 12,000

16 Accounts Payable - Ipil 2,000

Store Supplies 2,000

17 Cash 10,000
Sales 10,000

18 Sales Returns and Allowances 2,000

Accounts Receivable - Lacierda 2,000

24 Accounts Payable - Cabellon 32,000

Cash (38,000-6,000) 32,000

25 Cash 19,000
Accounts Receivable - Lacierda 19,000
(21,000-2,000)
Dec.
7 Accounts Receivable - Caindec 30,000
Sales 30,000

8 Purchases 60,000
Accounts Payable - Kho 60,000

9 Freight - In 254
Cash 254

10 Purchases 95,400
Accounts Payable - Magallanes 95,400

Freight-In 600
Accounts Payable - Magallanes 600

13 Office Supplies 24,000

Accounts Payable - Carlos 24,000

14 Accounts Receivable - Zosa 24,000

Sales 24,000

Accounts Payable - Kho 6,000

Purchase Returns and Allow. 6,000

17 Cash 30,000
Accounts Receivable - Caindec 30,000

18 Accounts Payable - Carlos 4,000

Office Supplies 4,000

19 Cash 18,000
Sales 18,000

20 Accounts Payable - Magallanes 96,000

Cash 96,000

21 Accounts Payable - Kho 54,000

Cash (60,000-6,000) 54,000

24 Sales Returns and Allowances 2,000

Accounts Receivable -Zosa 2,000
 Ramos Distributors - Seller
May May
4 Accounts Receivable 162,000 4
Sales 162,000

5 Accounts Receivable 710,000 5

Sales 710,000

6 NO ENTRY 6

7 Sales Returns and Allowances 12,000 7

Accounts Receivable 12,000

9 Cash 147,000 9
Sales Discount 3,000
Accounts Receivable 150,000
(162,000-12,000) x 2% = 3,000

10 Delivery Expense/Freight-Out 2,000 10

Cash 2,000

12 Cash 695,800 12
Sales Discount 14,200
Accounts Receivable 710,000
710,000 x 2% = 14,200

18 Accounts Receivable 150,000 18

Sales 150,000
250,000 x 60% = 150,000

21 NO ENYRY 21

23 Cash 147,000 23
Sales Discount 3,000
Accounts Receivable 150,000
150,000 x 2% = 3,000
 Cammayo Retailers - Buyer

Purchases 162,000
Accounts Payable 162,000

Purchases 710,000
Accounts Payable 710,000

Freight - In 8,000
Cash 8,000

Accounts Payable 12,000

Purchase Returns and Allowances 12,000

Accounts Payable 150,000

Cash 147,000
Purchase Discounts 3,000
(162,000-12,000) x 2% = 3,000

NO ENTRY

Accounts Payable 710,000

Cash 695,800
Purchase Discounts 14,200
710,000 x 2% = 14,200

Purchases 150,000
Accounts Payable 150,000
250,000 x 60% = 150,000

Freight - In 3,000
Cash 3,000

Accounts Payable 150,000

Cash 147,000
Purchase Discounts 3,000
Mar.
2 Purchases 74,000
Accounts Payable - Digao 74,000

3 Accounts Receivable - Detoya 10,000

Sales 10,000

5 Cash 7,000
Sales 7,000

6 Purchases 42,000
Accounts Payable - Made Easy 42,000

7 Freight - In 570
Accounts Payable - Super Express 570

9 Accounts Receivable - Recoletos 38,000

Sales 38,000

10 Purchases 26,000
Freight-In 500
Accounts Payable - Digao 26,500

11 Delivery Expense 291

Accounts Payable - Super Express 291

12 Accounts Payable - Digao 74,000

Purchase Discount 1,480
Cash 72,520
74,000 x 2% = 1,480 discount

13 Cash 9,900
Sales Discount 100
Accounts Receivable - Detoya 10,000
10,000 x 1% = 100

14 Accounts Payable - Made Easy 21,000

Purchase Discount 420
Cash 20,580
(42,000/2) x 2% = 420
15 Accounts Payable - Digao 3,000
Purchase Returns and Allowances 3,000

16 Office Supplies 4,780

Accounts Payable - Olamit 4,780

17 Cash 18,810
Sales Discount 190
Accounts Receivable - Recoletos 19,000
(38,000/2) x 1% = 190

18 Accounts Payable - Digao 23,500

Purchase Discount 460
Cash 23,040
(26,000-3,000) x 2% = 460

19 Accounts Receivable - Sir Ed 7,800

Sales 7,800

20 Accounts Payable - Olamit 1,280

Office Supplies 1,280

22 Sales Returns and Allowances 1,800

Accounts Receivable - Sir Ed 1,800

25 Accounts Payable - Olamit 3,500

Cash (4,780-1,280) 3,500

26 Accounts Payable - Super Express 861

Cash 861

27 Cash 5,880
Sales Discount 120
Accounts Receivable - Sir Ed 6,000
(7,800-1,800) x 2% = 120

28 Accounts Payable - Made Easy 21,000

Cash 21,000

31 Cash Sales 9,730

9,730
Feb.
1 Cash 113,000
Accounts Receivable 113,000

2 Accounts Payable 64,000

Cash 62,080
Purchase Discounts 1,920

4 Purchases 170,000
Accounts Payable 170,000

5 Accounts Receivable 270,000

Sales 270,000

7 Advertising Expense 6,000

Cash 6,000

Cash 250,000
Sales 250,000

8 Accounts Payable 170,000

Cash 164,900
Purchase Discounts 5,100

9 Transportation - In 4,000
Cash 4,000

10 Sales Returns and Allowances 70,000

Accounts Receivable 70,000

12 Cash 196,000
Sales Discounts 4,000
Accounts Receivable 200,000

14 Interest Expense 26,000

Cash 26,000

15 Salaries Expense 51,000

Cash 51,000
 16 Accounts Receivable 392,000
Sales 392,000

18 Transportation-Out 4,000
Cash 4,000

19 Supplies 21,000
Cash 21,000

20 Purchases 125,000
Accounts Payable - Lozada 125,000

22 Miscellaneous Expense 7,000

Cash 7,000

23 Cash 384,160
Sales Discounts 7,840
Accounts Receivable 392,000

24 Purchases 373,000
Accounts Payable - Agustin 373,000

Transportation In 9,000
Cash 9,000

25 Accounts Receivable 420,000

Sales 420,000

26 Sales Returns and Allowances 71,000

Accounts Receivable 71,000

28 Buenaflor, Withdrawals 400,000

Cash 400,000

Accounts Payable 25,000

Purchase Returns and Allowances 25,000

Adjusting Entries
Feb. 28
a Salaries Expense 51,000
Salaries Payable 51,000
b Insurance Expense 2,000
Prepaid Insurance 2,000

c Depreciation Expense - Building 9,000

Depreciation Expense - Equipment 12,000
Accumulated Depreciation - Building 9,000
Accumulated Depreciation - Equipment 12,000

d Supplies Expense 58,000

Supplies 58,000

51,000 + 21,000 - 14,000 = 58,000

e Merchandise Inventoy, End 397,000

Income Summary 397,000

If the information says that use the adjusting entry method.

 Unadjusted Trial Balance Adjustments

Debit Credit Debit Credit

Cash 221,180
Accounts Receivable 428,000
Merchandise Inventory 413,000
Supplies 72,000 58,000
Prepaid Insurance 48,000 2,000
Land 460,000
Building 1,750,000
Accumulated Depreciation - Building 350,000 9,000
Equipment 2,310,000
Accumulated Depreciation - Equipment 630,000 12,000
Accounts Payable 517,000
Salaries Payable 51,000
Mortgage Payable 2,600,000
Buenaflor, Capital 1,569,000
Buenaflor, Withdrawals 400,000
Income Summary
Sales 1,332,000
Sales Returns and Allowances 141,000
Sales Discounts 11,840
Purchases 668,000
Purchase Returns and Allowances 25,000
Purchase Discounts 7,020
Transportation In 13,000
Salaries Expense 51,000 51,000
Supplies Expense 58,000
Insurance Expense 2,000
Depreciation Expense - Building 9,000
Depreciation Expense - Equipment 12,000
Transportation Out 4,000
Advertising Expense 6,000
Interest Expense 26,000
Miscellaneous Expense 7,000
7,030,020 7,030,020 132,000 132,000
Adjusted Trial Balance Income Statement Balance Sheet

Debit Credit Debit Credit Debit Credit

221,180 221,180
428,000 428,000
413,000 413,000 397,000 397,000
14,000 14,000
46,000 46,000
460,000 460,000
1,750,000 1,750,000
359,000 359,000
2,310,000 2,310,000
642,000 642,000
517,000 517,000
51,000 51,000
2,600,000 2,600,000
1,569,000 1,569,000
400,000 400,000

1,332,000 1,332,000
141,000 141,000
11,840 11,840
668,000 668,000
25,000 25,000
7,020 7,020
13,000 13,000
102,000 102,000
58,000 58,000
2,000 2,000
9,000 9,000
12,000 12,000
4,000 4,000
6,000 6,000
26,000 26,000
7,000 7,000
7,102,020 7,102,020 1,472,840 1,761,020 6,026,180 5,738,000
288,180 288,180
1,761,020 1,761,020 6,026,180 6,026,180
 Teresita Buenaflor Shoes
Income Statement
For the Month Ended February 28, 2021

Net Sales
Gross Sales
Less: Sales Returns and Allowances
Sales Discounts
Net Sales

Cost of Merchandise Sold

Merchandise Inventory, Beg
Purchases 668,000
Less: Purchase Returns and Allowances. 25,000
Purchases Discounts 7,020 32,020
Net Purchases 635,980
Transportation In 13,000
Net Cost of Purchases
Goods Available for Sale
Less: Merchandise Inventory, End
Cost of Merchandise Sold
Gross Profit
Operating Expenses
Salaries Expense
Supplies Expense
Insurance Expense
Depreciation Expense - Building
Depreciation Expense - Equipment
Transportation Out
Advertising Expense
Miscellaneous Expense
Operating Profit
Less: Interest Expense
Profit
Shoes Teresita Buenaflor Shoes
nt Statement of Changes in Owner's Equtiy
uary 28, 2021 For the Month Ended February 28, 2021

Buenaflor, Capital, Beginning

1,332,000 Add: Additional investment 0
141,000 Net Income 288,180
11,840 152,840 Total
1,179,160 Less: Withdrawals
Buenaflor, Capital, Ending

413,000

648,980
1,061,980
397,000
664,980
514,180

102,000
58,000
2,000
9,000
12,000
4,000
6,000
7,000 200,000
314,180
26,000
288,180
oes Teresita Buenaflor Shoes
er's Equtiy Balance Sheet
ry 28, 2021 As of February 28, 2021

1,569,000 Assets
Current Assets
288,180 Cash
1,857,180 Accounts Receivable
400,000 Merchandise Inventory
1,457,180 Supplies
Prepaid Insurance
Total Current Assets

Property, Plant, and Equipment (net)

Land
Building 1,750,000
Less: Accumulated Depreciation-Building 359,000
Equipment 2,310,000
Less: Accumulated Depreciation - Equipment 642,000
Total Assets

Liabilities
Current Liabilities
Accounts Payable
Salaries Payable
Total current liabilities
Non-Current Liabilities
Mortgage Payable
Total Liabilities

Owner's Equity
Santiago, Capital, Ending
Total Liabilities and Owner's Equity
 221,180
428,000
397,000
14,000
46,000
1,106,180

460,000

1,391,000

1,668,000 3,519,000
4,625,180

517,000
51,000
568,000

2,600,000
3,168,000

1,457,180
4,625,180
 Closing Entries
December
31 Merchandise Inventory, End 397,000
Sales 1,332,000
Purchase Returns and Allowances 25,000
Purchase Discounts 7,020
Income Summary

31 Income Summary 1,472,840

Merchandise Inventory, Beg
Sales Returns and Allowances
Sales Discounts
Purchases
Transportation In
Salaries Expense
Supplies Expense
Insurance Expense
Depreciation Expense - Building
Depreciation Expense - Equipment
Transportation Out
Advertising Expense
Interest Expense
Miscellaneous Expense

31 Income Summary 288,180

Buenaflor, Capital

31 Buenaflor, Capital 400,000

Buenaflor, Withdrawals
 Post Closing Trial Balance
Debit Credit
Cash 221,180
Accounts Receivable 428,000
Merchandise Inventory 397,000
Supplies 14,000
1,761,020 Prepaid Insurance 46,000
Land 460,000
Building 1,750,000
413,000 Accumulated Depreciation - Building 359,000
141,000 Equipment 2,310,000
11,840 Accumulated Depreciation - Equipment 642,000
668,000 Accounts Payable 517,000
13,000 Salaries Payable 51,000
102,000 Mortgage Payable 2,600,000
58,000 Buenaflor, Capital 1,457,180
2,000 5,626,180 5,626,180
9,000
12,000
4,000
6,000
26,000
7,000

288,180

400,000
 Problem 1
Income Summary 300,000
Merchandise Inventory,1/1,2021 300,000

Merchandise Inventory, 12/31/2021 230,000

Income Summary 230,000
 Problem 2
Income Summary 80,000
Merchandise Inventory, Beg. 80,000

Merchandise Inventory, End 74,000

Income Summary 74,000
 Problem 2
Sales 190,000
Less: Sales Returns and Allowances 20,000
Net Sales 170,000
Less: Cost of Merchandise Sold
Merchandise Inventory, Beg. 80,000
Add: NetPurchases
Purchases 60,000
Less: Purchase Discounts 3,000
57,000
Add: Transportation In 1,000 58,000
Goods Available for Sales 138,000
Less: Merchandise Inventory, End 74,000 64,000
Gross Profit 106,000
Net Sales
Gross Sales
Less: Sales Returns and Allowances
Sales Discounts
Net Sales

Cost of Merchandise Sold

Merchandise Inventory, Beg
Purchases 985,000
Less: Purchase Returns and Allowances. 31,000
Purchases Discounts 20,000 51,000
Net Purchases 934,000
Transportation In 36,000
Net Cost of Purchases
Goods Available for Sale
Less: Merchandise Inventory, End
Cost of Merchandise Sold
Gross Profit
Less: Operating Expenses
Profit
 1,610,000 1,550,000+60000
45,000
15,000 60,000
1,550,000 100% 620,000/40%

220,000

970,000
1,190,000
260,000
930,000 60% NetSales
620,000 40% NetSales
465,000
155,000 10%NetSales