MERCHANDISING BUSINESS

Bhulero Merchandise Periodic

ASSIGNMENT #2
see Required at the last slide
 Chart of Accounts
100- 400-
ASSETS REVENUE
110Cash 410Sales
120Accounts Receivable 420Sales Return and Allowances
130Office Supplies 430Sale Discount
150Office Equipment

500-COST
200- OF GOODS
LIABILITIES SOLD
210Notes Payable 510Purchase
220Accounts Payable 520Freight-in
530Purchase Return and allowances
600 EXPENSES
630Rent Expense
300- OWNER`S
EQUITY 640Interest Expense
310B. Lero, Capital 650Freight-out
320B. Lero, Drawing

710Income and Loss Summary

 Mr. Bhulero, opened his
merchandising business, Bhulero
Merchandise on August 1, 2015.
Prepare the complete accounting cycle
using Periodic Inventory System.

 August 1: Mr. Bhulero invested cash,

P 880,000 for his new business
venture, Bhulero Merchandise.
 August 3: Bought Office equipment
for P 50,000. Made a down payment
of P 15,000 and issued a note for the
balance.

 August 4: Acquired office supplies P

7,180 on credit.
 August 5: Bought merchandise for
resale from AA company P 95,000
cash.
 August 6: Paid the freight cost for
the purchases on Aug. 5 P 4000.
 August 8: Bought merchandise from PP
Company for P 40,000. A down payment
of 40% was made and the balance is on
account with the term 2/10, 1/15, n/30.
 August 10: Paid the account due for the
office supplies supplies purchased on
Aug 4 P 4,100.
 August 12: Paid in partial for the notes
on Aug 3 transactions P 18,000.
 August 13: Made partial payment to PP
Company P 4,000.
 August 15: Returned some defective
goods to AA Company and received a
cash refund of P 5,100.
 August 16: Sold merchandise to
customer X P 47,000. Terms 2% trade
discount 1/15, n/30.
 August 18: Paid the delivery cost for
the sales transaction on Aug 16 P 900.
 August 19: Sold merchandise to
customer B P 25,000, made a down
payment of P 3,000 and the balance
on account with term 3/5, 2/10, n/30.
 August 21: Customer X returned some
goods amounting P 1,200 with a cost of
P700.
 August 22: Customer B made payments
of P 5,400.
 August 23: The business made the
following payments; salaries P3,800,
utilities P 2,100, rent P 2,600 and
interest P 750.
 August 24: Customer X paid the full
balance for his accounts.
 August 25: Mr. Bhulero withdrew cash
for personal use P 5,990.
 August 26: Customer B paid the full
balance for his accounts net of
returns.
 August 27: Bought merchandise from

PP Company for P 125,000 on cash.

 August 28: Paid the freight cost for

the purchases on Aug 27 P 2,500

 August 28: Sold the merchandise to

customer C P 165,000, made a down

payment of P 5,000 and the balance
on account with term 3/5, 2/10,
n/30.
 August 29: Bought merchandise
from AA Company for P 95,000.
A down payment of 10% was
made and the balance is on
account with the term 2/10,
n/30.
 August 30: Sold merchandise on

cash to customer K, P 175,000.

 August 31: Paid the freight cost

of the sold merchandise on Aug.

30 P 2,000.
REQUIRED:
1. JOURNAL ENTRIES
2. POSTING
GENERAL LEDGER – CASH only
And the rest T ACCOUNTS
3. TRIAL BALANCE

NOTE: TRY TO JOURNALIZE, POST AND BALANCE

THE GIVEN BUSINESS TRANSACTION, RIGHT OR WRONG OKS LANG,
WE WILL CHECK YOUR ASSIGNMENT NEXT MEETING ONLINE.
DEC 2 – I WILL DISCUSS ASSIGNMENT #1 & #2, BUT NOT TODAY.
OK. TC

BANKING & Finance Assignment#2 will be sent later this afternoon.