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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 Trial Balance

1.Record the transaction using the special journal and general journal 2. Post to the general and subsidiary ledger 3. Prepare a Trial Balance

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 Trial Balance

 

 

 

 

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.
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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