Merchandising Business using Periodic Inventory System Instruction: Prepare journal entries for the following transactions using the general journal format given in class discussion. KIKAY HARDWARE CHART OF ACCOUNTS ASSETS INCOME 100 Cash and Cash Equivalents 400 Sales 101 Accounts Receivable 401 Sales Returns and Allowances 102 Merchandise Inventory 402 Sales Discount 103 Supplies 104 Equipment EXPENSES 500 Purchases LIABILITIES 501 Purchase returns and Allowances 200 Accounts Payable 502 Purchase Discounts 201 Bonds Payable 503 Freight In EQUITY 504 Advertising 300 Mark Reyes, Capital 505 Freight Out 301 Mark Reyes, Drawings 506 Salaries 507 Utilities 508 Income Summary Kikay HARDWARE STORE completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Supreme showed Cash of Php 100,000 and Mark Reyes, Capital of Php 80,000. May 1- Purchased merchandise on account from Office Depot Wholesale Supply Php 50,000, terms 2/10, n/30. 2- Sold merchandise on account Php 40,000 terms 2/10, n/30. 5- Received credit from Office Depot Wholesale Supply for merchandise returned Php 2,000. 9- Received collections in full from customers billed on May 2. 10- Paid Office Depot Wholesale Supply in full. 11- Purchased supplies for cash Php 9,000. 12- Purchased merchandise for cash Php 9,000 15- Received refund from supplier for returned merchandise on cash purchase Php 2,300. 17- Purchased merchandise from Harlem Distributors Php 19,000, terms 2/10, n/30, FOB Shipping point. 19- Paid freight on May 17 purchase Php 2,500. 24- Purchased merchandise for cash Php 62,000. 25- Purchased merchandise from Unicorn Inc. P10,000 terms 2/10, n/30. 27- Paid Harlem Distributors in full. 29- Made refunds to cash customers for defective merchandise Php 1,000 31- Sold merchandise on account Php 16,000 terms n/30. 31- The owner deposited Php 50,000 cash from his personal savings to be used for the operations of the business. 31- Merchandise Inventory on May 31 amounted to Php 30,500.
Merchandising Business using Periodic Inventory System
Instruction: Prepare
KIKAY HARDWARE
CHART OF ACCOUNTS
|
|
ASSETS |
|
INCOME |
|
100 |
Cash and Cash Equivalents |
400 |
Sales |
|
101 |
|
401 |
Sales Returns and Allowances |
|
102 |
Merchandise Inventory |
402 |
Sales Discount |
|
103 |
Supplies |
|
|
|
104 |
Equipment |
|
EXPENSES |
|
|
|
500 |
Purchases |
|
|
LIABILITIES |
501 |
Purchase returns and Allowances |
|
200 |
Accounts Payable |
502 |
Purchase Discounts |
|
201 |
Bonds Payable |
503 |
Freight In |
|
|
EQUITY |
504 |
Advertising |
|
300 |
Mark Reyes, Capital |
505 |
Freight Out |
|
301 |
Mark Reyes, Drawings |
506 |
Salaries |
|
|
|
507 |
Utilities |
|
|
|
508 |
Income Summary |
|
|
|
|
|
Kikay HARDWARE STORE completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Supreme showed Cash of Php 100,000 and Mark Reyes, Capital of Php 80,000.
May 1- Purchased merchandise on account from Office Depot Wholesale Supply Php 50,000, terms 2/10, n/30.
2- Sold merchandise on account Php 40,000 terms 2/10, n/30.
5- Received credit from Office Depot Wholesale Supply for merchandise returned Php 2,000.
9- Received collections in full from customers billed on May 2.
10- Paid Office Depot Wholesale Supply in full.
11- Purchased supplies for cash Php 9,000.
12- Purchased merchandise for cash Php 9,000
15- Received refund from supplier for returned merchandise on cash purchase Php 2,300.
17- Purchased merchandise from Harlem Distributors Php 19,000, terms 2/10, n/30, FOB Shipping point.
19- Paid freight on May 17 purchase Php 2,500.
24- Purchased merchandise for cash Php 62,000.
25- Purchased merchandise from Unicorn Inc. P10,000 terms 2/10, n/30.
27- Paid Harlem Distributors in full.
29- Made refunds to cash customers for defective merchandise Php 1,000
31- Sold merchandise on account Php 16,000 terms n/30.
31- The owner deposited Php 50,000 cash from his personal savings to be used for the operations of the business.
31- Merchandise Inventory on May 31 amounted to Php 30,500.
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