FINANCIAL ACCOUNTING
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ISBN: 9781259964947
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1.Record the transaction using the special journal and general journal
2. Post to the general and subsidiary ledger
3. Prepare a
Transcribed Image Text:ACTIVITY 1
PROBLEM SOLVING
Directions: Read and analyze the problem Journalize and post the following transactions of
merchandising business. After posting to the general and subsidiary Jedgers, prepare the trial balance.
The transactions of Karen Carpenter for December 2018 were the following.
December !- Began business with the following investments:
Cash
P150,000
Merchandise
40,000
Furniture
50,000
2- Paid rent for December, P5,000. Check No. 1001
3.
Purchased a delivery truck from Dimasalang Motor Co. for cash, P30,000. Check No. 1002
5 - Sold merchandise for cash to R. Castro, P2,500.
7 - Purchased merchandise for cash from Henry and Sons, P5,700. Check No. 1003
10
- Sold merchandise on account to R. Castro, P50,000. Terms: 2/10, n/30. Invoice No. 2001
12 - Paid general expenses, P7,200. Check No. 1004
Purchased merchandise on account from Danilo Liwanag, P75,000. Terms: 2/10, n/30.
Ms. Carpenter withdrew cash for personal use. P5,000. Check No. 1005
Sold on account to Rey Aloña, P5,000. Terms: n/10. Invoice No. 2002
14
15
17
19 - Purchased merchandise on account from Cesar Santos, P30.000. Terns n.60.
Received full payment in cash from R. Castro for his account on December 10.
Sold merchandise on account to Divina del Agua, P24,000. Terms: 2/10, n 30. Invoice No.
2003
- Paid in full the account due to Danilo Liwanag on the 14th Check No. 1006
Returned merchandise worth P3,000 to Cesar Santos. Received a credit memo for the
24
26
Received a 30-day non-interest bearing note from Rey Aloña in settlement of his account
on the 17th
28 - Utility expense bills paid, PI,200. Check No. 1007
29 - Received merchandise retumed by Divina del Agua, P2,000.
30 - Wages paid, P5,000. Check No. 1008
return.
27
Required
1) Record the transactions using the special journals and general journal. Use the following chart of
accounts:
ACCOUNT
CODE
ACCOUNT
CODE
451
Sales Discount
101
Cash
452
Sales Returns and Allowances
11
Accounts Receivable
510
Purchases
112
Notes Receivable
113
Merchandise
551
Purchase Discount
162
Furniture and Fixtures
552
Purchase Returns and Allowances
Wages Expense
Utilities Expense
Rent Expense
General Expenses
520
Delivery Truck
Accounts Payable
Carpenter, Capital
Carpenter, Drawing
Sales
165
521
201
524
301
340
525
410
2) Post to the general and subsidiary ledgers.
3) Prepare a trial balance.
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- ME7The process of initially recording a business transaction is called: a) Slidingb) Postingc) Journalizingd) Transposingarrow_forwardWhich of the following items is considered an original source document? Select one: a. accounts receivable b. company expense account c. purchase order d. general ledgerarrow_forwardComplete the statement: closing entries ________ A. Reflect the net income for the accounting period B. Are also posted in the subsidiary ledgers C. Involve all ledger accounts D. Are recorded in the special journals The process wherein transactions are recorded in the journal are transferred to the appropriate accounts in the general ledger and subsildiary ledgers, if appropriate, is called ___________ A. Ledgering B. Analyzing C. Posting D. Journalizingarrow_forward
- Which among the following is considered as the book of original entry? a. Trial Balance b. Balance Sheet c. Journal d. Ledgerarrow_forwardIs Warehouse included in a post closing trial balance?arrow_forwardThe first required step in the accounting cycle is: O journalizing transactions, posting transactions.. Oanalyzing transactions. O adjusting entries.arrow_forward
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