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Mr. Juan Lopez launched Lopez Fiesta Mart on December 1, 2022 with a cash investment of ₱220,000. The following are additional transactions for the month: 2     Mr. Lopez invested equipment for the business worth ₱30,000. 3     Bought supplies on account for ₱12,600. 4     Acquired a service vehicle costing ₱75,000. A payment of ₱33,000 cash was made and a promissory note was given for the remainder, payable for 6 equal monthly installment. 5     Purchased merchandise from JKL Enterprises ₱45,500, Term, 3/20, n/30. 8     Paid ₱1,200 delivery charge for December 5 purchase. 10   Sold merchandise on account ₱37,000, Term, 3/10, n/30. Cost of Merchandise, ₱25,000. 11    Paid ₱700 freight for December 10 transaction. 13    Returned defective merchandise to JKL Enterprises amounting to ₱8,500. 15    Paid salaries, ₱12,300 16    Signed a promissory note for ₱25,000 loaned amount from Commonwealth Bank. 17    Received returned merchandise from customers on December 10, ₱4,000. 18    Paid ₱7,600 of the amount owed from the December 3 transaction. 19    Purchase additional groceries from QR Supermarket amounting to ₱86,000. 20    Collected full settlement of customer from December 10 sale. 22    ₱21,450 cost of merchandise was sold for ₱38,750. 25    Settled account to JKL Enterprises. 26    Cash received, ₱10,000 and a promissory note for ₱25,000 for merchandise sold to a key customer. Cost of merchandise, ₱28,000. 27    Mr. Lopez withdrew ₱20,000 cash from the business. 29    Paid telephone expense, ₱2,300. 30    Paid building rentals for the month, ₱5,200. 30    Paid the first installment of the note payable on Service Vehicle. 31    Paid Salaries ₱11,300, net of the following deductions: SSS, ₱380; Pag-IBIG, ₱100; Philhealth, ₱220 The Merchandise Inventory at the end of the of the month is ₱48,000. Additional information for year-end adjustments. Ø The useful life of the equipment is 5 years with no salvage value. -The useful life of the service vehicle is 10 years with no salvage value. -Remaining unused supplies worth ₱9,100. Use asset method. Question: 1. Prepare General Ledger

Mr. Juan Lopez launched Lopez Fiesta Mart on December 1, 2022 with a cash investment of ₱220,000. The following are additional transactions for the month: 2     Mr. Lopez invested equipment for the business worth ₱30,000. 3     Bought supplies on account for ₱12,600. 4     Acquired a service vehicle costing ₱75,000. A payment of ₱33,000 cash was made and a promissory note was given for the remainder, payable for 6 equal monthly installment. 5     Purchased merchandise from JKL Enterprises ₱45,500, Term, 3/20, n/30. 8     Paid ₱1,200 delivery charge for December 5 purchase. 10   Sold merchandise on account ₱37,000, Term, 3/10, n/30. Cost of Merchandise, ₱25,000. 11    Paid ₱700 freight for December 10 transaction. 13    Returned defective merchandise to JKL Enterprises amounting to ₱8,500. 15    Paid salaries, ₱12,300 16    Signed a promissory note for ₱25,000 loaned amount from Commonwealth Bank. 17    Received returned merchandise from customers on December 10, ₱4,000. 18    Paid ₱7,600 of the amount owed from the December 3 transaction. 19    Purchase additional groceries from QR Supermarket amounting to ₱86,000. 20    Collected full settlement of customer from December 10 sale. 22    ₱21,450 cost of merchandise was sold for ₱38,750. 25    Settled account to JKL Enterprises. 26    Cash received, ₱10,000 and a promissory note for ₱25,000 for merchandise sold to a key customer. Cost of merchandise, ₱28,000. 27    Mr. Lopez withdrew ₱20,000 cash from the business. 29    Paid telephone expense, ₱2,300. 30    Paid building rentals for the month, ₱5,200. 30    Paid the first installment of the note payable on Service Vehicle. 31    Paid Salaries ₱11,300, net of the following deductions: SSS, ₱380; Pag-IBIG, ₱100; Philhealth, ₱220 The Merchandise Inventory at the end of the of the month is ₱48,000. Additional information for year-end adjustments. Ø The useful life of the equipment is 5 years with no salvage value. -The useful life of the service vehicle is 10 years with no salvage value. -Remaining unused supplies worth ₱9,100. Use asset method. Question: 1. Prepare General Ledger

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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Mr. Juan Lopez launched Lopez Fiesta Mart on December 1, 2022 with a cash investment of ₱220,000. The following are additional transactions for the month: 2     Mr. Lopez invested equipment for the business worth ₱30,000. 3     Bought supplies on account for ₱12,600. 4     Acquired a service vehicle costing ₱75,000. A payment of ₱33,000 cash was made and a promissory note was given for the remainder, payable for 6 equal monthly installment. 5     Purchased merchandise from JKL Enterprises ₱45,500, Term, 3/20, n/30. 8     Paid ₱1,200 delivery charge for December 5 purchase. 10   Sold merchandise on account ₱37,000, Term, 3/10, n/30. Cost of Merchandise, ₱25,000. 11    Paid ₱700 freight for December 10 transaction. 13    Returned defective merchandise to JKL Enterprises amounting to ₱8,500. 15    Paid salaries, ₱12,300 16    Signed a promissory note for ₱25,000 loaned amount from Commonwealth Bank. 17    Received returned merchandise from customers on December 10, ₱4,000. 18    Paid ₱7,600 of the amount owed from the December 3 transaction. 19    Purchase additional groceries from QR Supermarket amounting to ₱86,000. 20    Collected full settlement of customer from December 10 sale. 22    ₱21,450 cost of merchandise was sold for ₱38,750. 25    Settled account to JKL Enterprises. 26    Cash received, ₱10,000 and a promissory note for ₱25,000 for merchandise sold to a key customer. Cost of merchandise, ₱28,000. 27    Mr. Lopez withdrew ₱20,000 cash from the business. 29    Paid telephone expense, ₱2,300. 30    Paid building rentals for the month, ₱5,200. 30    Paid the first installment of the note payable on Service Vehicle. 31    Paid Salaries ₱11,300, net of the following deductions: SSS, ₱380; Pag-IBIG, ₱100; Philhealth, ₱220 The Merchandise Inventory at the end of the of the month is ₱48,000. Additional information for year-end adjustments. Ø The useful life of the equipment is 5 years with no salvage value. -The useful life of the service vehicle is 10 years with no salvage value. -Remaining unused supplies worth ₱9,100. Use asset method. Question: 1. Prepare General Ledger
Resultant values: 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 A 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 TO 71 72 73 74 75 79 80 81 82 A 83 84 85 86 87 88 89 90 91 92 93 Date 2022 1-Dec Cash 2-Dec Equipment Capital Capital (To record capital investment) 3-Dec Supplies (To record purchase of equipment) 3-Dec Vehicle Cash Accounts payable (To record purchase of supplies) 5-Dec Purchase Notes payable (To record purchase of vehicle) Accounts payable-JKL (To record purchase of merchandise) 8-Dec Delivery charges Cash (To record delivery charges) A 10-Dec Accounts receivable Sales (To record credit sales) Cost of goods sold Accounts and Explanation 11-Dec Freight outward Cash Inventory (To record cost of merchandise) 15-Dec Salaries Cash (To record freight paid) 13-Dec Accounts payable-JKL Purchase return (To record purchase return) (To record salaries paid) 16-Dec Cash 17-Dec Sales return Notes payable (To record issue of promisory notes against loan) Accounts receivable (To record sales return) A 18-Dec Accounts payable Cash 20-Dec Cash (To record cash payment) 22-Dec Cash 19-Dec Supplies Cash (To record groceries purchased) Sales (To record credit sales) Cost of goods sold Discount allowed Accounts receivable (To record payment received) Journal Entries B 25-Dec Accounts payable-JKL Cash A 26-Dec Cash Inventory mened (To record cost of merchandise) Discount received (To record payment made) B 76 77 30-Dec Rent 78 Notes payable Sales (To record cash received and notes sold) Cost of goods sold 29-Dec Telephone expense Cash Inventory (To record cost of merchandise) 27-Dec Withdrawings Cash (To record cash withdrawal) (To record telephone expense) A 31-Dec Salaries Cash (To record rent payment) SSS deduction 30-Dec Notes payable Cash (To record payment of installment) Pag-IBIG Philhealth Cash B (To record salaries paid) 31-Dec Depreciation-equipment Depreciation-vehicle Accumulated depreciation-equipment Accumulated depreciation-vehicle (To record depreciation expense) P P 220,000 P P D P D P P 45,500 P P P с Debit 30,000 12.600 ▸ 8,500 75,000 P P 1,200 C 37,000 P 25,000 P 700 12,300 с 25,000 P 86,000 P 35,890 P 1,110 4,000 P 38,750 7,600 P 21,450 P 37,000 C P 10,000 P 25,000 P 28,000 20,000 2.300 5,200 P 7,000 C 12,000 . 6,000 P 7,500 P 220,000 P 30,000 P P P 12,600 P 45,500 P 1,200 P P 37,000 p 25,000 D P Credit P 8,500 . P 12,300 D P 25,000 P P 4,000 33,000 42,000 P P P D P P P P 700 。 21,450 P P D 7,600 85,000 37,000 38,750 35,890 1,110 D P 20,000 P 2,300 35,000 28,000 5,200 D 7,000 380 100 220 P P 11,300 6,000 7,500
Transcribed Image Text:Resultant values: 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 A 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 TO 71 72 73 74 75 79 80 81 82 A 83 84 85 86 87 88 89 90 91 92 93 Date 2022 1-Dec Cash 2-Dec Equipment Capital Capital (To record capital investment) 3-Dec Supplies (To record purchase of equipment) 3-Dec Vehicle Cash Accounts payable (To record purchase of supplies) 5-Dec Purchase Notes payable (To record purchase of vehicle) Accounts payable-JKL (To record purchase of merchandise) 8-Dec Delivery charges Cash (To record delivery charges) A 10-Dec Accounts receivable Sales (To record credit sales) Cost of goods sold Accounts and Explanation 11-Dec Freight outward Cash Inventory (To record cost of merchandise) 15-Dec Salaries Cash (To record freight paid) 13-Dec Accounts payable-JKL Purchase return (To record purchase return) (To record salaries paid) 16-Dec Cash 17-Dec Sales return Notes payable (To record issue of promisory notes against loan) Accounts receivable (To record sales return) A 18-Dec Accounts payable Cash 20-Dec Cash (To record cash payment) 22-Dec Cash 19-Dec Supplies Cash (To record groceries purchased) Sales (To record credit sales) Cost of goods sold Discount allowed Accounts receivable (To record payment received) Journal Entries B 25-Dec Accounts payable-JKL Cash A 26-Dec Cash Inventory mened (To record cost of merchandise) Discount received (To record payment made) B 76 77 30-Dec Rent 78 Notes payable Sales (To record cash received and notes sold) Cost of goods sold 29-Dec Telephone expense Cash Inventory (To record cost of merchandise) 27-Dec Withdrawings Cash (To record cash withdrawal) (To record telephone expense) A 31-Dec Salaries Cash (To record rent payment) SSS deduction 30-Dec Notes payable Cash (To record payment of installment) Pag-IBIG Philhealth Cash B (To record salaries paid) 31-Dec Depreciation-equipment Depreciation-vehicle Accumulated depreciation-equipment Accumulated depreciation-vehicle (To record depreciation expense) P P 220,000 P P D P D P P 45,500 P P P с Debit 30,000 12.600 ▸ 8,500 75,000 P P 1,200 C 37,000 P 25,000 P 700 12,300 с 25,000 P 86,000 P 35,890 P 1,110 4,000 P 38,750 7,600 P 21,450 P 37,000 C P 10,000 P 25,000 P 28,000 20,000 2.300 5,200 P 7,000 C 12,000 . 6,000 P 7,500 P 220,000 P 30,000 P P P 12,600 P 45,500 P 1,200 P P 37,000 p 25,000 D P Credit P 8,500 . P 12,300 D P 25,000 P P 4,000 33,000 42,000 P P P D P P P P 700 。 21,450 P P D 7,600 85,000 37,000 38,750 35,890 1,110 D P 20,000 P 2,300 35,000 28,000 5,200 D 7,000 380 100 220 P P 11,300 6,000 7,500
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Mr. Juan Lopez launched Lopez Fiesta Mart on December 1, 2022 with a cash investment of ₱220,000. The following are additional transactions for the month: 2Mr. Lopez invested equipment for the business worth ₱30,000. 3Bought supplies on account for ₱12,600. 4Acquired a service vehicle costing ₱75,000. A payment of ₱33,000 cash was made and a promissory note was given for the remainder, payable for 6 equal monthly installment. 5Purchased merchandise from JKL Enterprises ₱45,500, Term, 3/20, n/30. 8Paid ₱1,200 delivery charge for December 5 purchase. 10Sold merchandise on account ₱37,000, Term, 3/10, n/30. Cost of Merchandise, ₱25,000. 11Paid ₱700 freight for December 10 transaction. 13Returned defective merchandise to JKL Enterprises amounting to ₱8,500. 15Paid salaries, ₱12,300 16Signed a promissory note for ₱25,000 loaned amount from Commonwealth Bank. 17Received returned merchandise from customers on December 10, ₱4,000. 18Paid ₱7,600 of the amount owed from the December 3 transaction. 19Purchase additional groceries from QR Supermarket amounting to ₱86,000. 20Collected full settlement of customer from December 10 sale. 22₱21,450 cost of merchandise was sold for ₱38,750. 25Settled account to JKL Enterprises. 26Cash received, ₱10,000 and a promissory note for ₱25,000 for merchandise sold to a key customer. Cost of merchandise, ₱28,000. 27Mr. Lopez withdrew ₱20,000 cash from the business. 29Paid telephone expense, ₱2,300. 30Paid building rentals for the month, ₱5,200. 30Paid the first installment of the note payable on Service Vehicle. 31Paid Salaries ₱11,300, net of the following deductions: SSS, ₱380; Pag-IBIG, ₱100; Philhealth, ₱220 The Merchandise Inventory at the end of the of the month is ₱48,000. Additional information for year-end adjustments. Ø The useful life of the equipment is 5 years with no salvage value. -The useful life of the service vehicle is 10 years with no salvage value. -Remaining unused supplies worth ₱9,100. Use asset method.

 

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1. Prepare the General Ledger. Pls use periodic inventory method.

25 Accounts Payable Cash Purchase Discounts 26 Cash To record payment of account Notes Receivable Sales To record merchandise sold 27 Lopez, Drawings Cash To record withdrawal 29 Telephone Expense Cash To record payment of telephone expense 30 Rent Expense Cash To record payment of building rentals 30 Notes Payable Cash To record installment on notes payable 31 Salaries Expense SSS Payable Pag-IBIG Payable Philhealth Payable Cash To record payment of salaries Adjusting Entries Dec 31 Depreciation Expense Accumulated Depreciation - Equipment To adjust depreciation of the equipment 31 Depreciation Expense Accumulated Depreciation - Service Vehicle To adjust depreciation of the service vehicle 31 Supplies Expense Supplies To adjust unused supplies 210 110 110 130 410 320 110 640 110 630 110 250 110 620 220 230 240 110 660 170 660 190 650 140 37,000 10,000 15,000 20,000 2,300 5,200 7,000 11,300 500 625 3,500 35,890 1,110 25,000 20,000 2,300 5,200 7,000 380 100 220 10,600 500 625 3,500
Transcribed Image Text:25 Accounts Payable Cash Purchase Discounts 26 Cash To record payment of account Notes Receivable Sales To record merchandise sold 27 Lopez, Drawings Cash To record withdrawal 29 Telephone Expense Cash To record payment of telephone expense 30 Rent Expense Cash To record payment of building rentals 30 Notes Payable Cash To record installment on notes payable 31 Salaries Expense SSS Payable Pag-IBIG Payable Philhealth Payable Cash To record payment of salaries Adjusting Entries Dec 31 Depreciation Expense Accumulated Depreciation - Equipment To adjust depreciation of the equipment 31 Depreciation Expense Accumulated Depreciation - Service Vehicle To adjust depreciation of the service vehicle 31 Supplies Expense Supplies To adjust unused supplies 210 110 110 130 410 320 110 640 110 630 110 250 110 620 220 230 240 110 660 170 660 190 650 140 37,000 10,000 15,000 20,000 2,300 5,200 7,000 11,300 500 625 3,500 35,890 1,110 25,000 20,000 2,300 5,200 7,000 380 100 220 10,600 500 625 3,500
Date 2022 Dec 1- • 1 Cash Lopez, Capital 2 Equipment Lopez, Capital To record initial investment of cash 3 Supplies Accounts Payable To record investment of equipment 4 Service Vehicle Cash Notes Payable To record supplies bought on account 5 Purchases Accounts Payable To record merchandise purchased on account 8 Freight In Cash To record service vehicle acquired 16 Cash 10 Accounts Receivable Sales 11 Freight Out Cash To record payment of delivery charge Account Titles & Explanation 13 Accounts Payable To record merchandise sold on account 20 Cash Purchase Return & Allowances To record defective merchandise returned 15 Salaries Expense Cash To record payment of freight 22 Cash Notes Payable To record promissory note signed for loan To record payment of salaries 17 Sales Return & Allowances Accounts Receivable 18 Accounts Payable Cash To record returned merchandise received 19 Purchases Cash To record payment of amount owed Sales Discounts To record additional groceries purchased Accounts Receivable To record full settlement collected from customer Sales To record merchandise sold 25 Accounts Payable Cash Purchase Discounts To record payment of account * 22 92 92 922 22 32 32 32 32 32 23 33 22 22 293 22 22 Debit 220,000 30,000 12,600 75,000 45,500 1,200 37,000 700 8,500 12,300 25,000 4,000 7,600 86,000 32,010 990 38,750 37,000 Credit 22,000 30,000 12,600 33,000 42,000 45,500 1,200 37,000 700 8,500 12,300 25,000 4,000 7,600 86,000 33,000 38,750 35,890 1,110
Transcribed Image Text:Date 2022 Dec 1- • 1 Cash Lopez, Capital 2 Equipment Lopez, Capital To record initial investment of cash 3 Supplies Accounts Payable To record investment of equipment 4 Service Vehicle Cash Notes Payable To record supplies bought on account 5 Purchases Accounts Payable To record merchandise purchased on account 8 Freight In Cash To record service vehicle acquired 16 Cash 10 Accounts Receivable Sales 11 Freight Out Cash To record payment of delivery charge Account Titles & Explanation 13 Accounts Payable To record merchandise sold on account 20 Cash Purchase Return & Allowances To record defective merchandise returned 15 Salaries Expense Cash To record payment of freight 22 Cash Notes Payable To record promissory note signed for loan To record payment of salaries 17 Sales Return & Allowances Accounts Receivable 18 Accounts Payable Cash To record returned merchandise received 19 Purchases Cash To record payment of amount owed Sales Discounts To record additional groceries purchased Accounts Receivable To record full settlement collected from customer Sales To record merchandise sold 25 Accounts Payable Cash Purchase Discounts To record payment of account * 22 92 92 922 22 32 32 32 32 32 23 33 22 22 293 22 22 Debit 220,000 30,000 12,600 75,000 45,500 1,200 37,000 700 8,500 12,300 25,000 4,000 7,600 86,000 32,010 990 38,750 37,000 Credit 22,000 30,000 12,600 33,000 42,000 45,500 1,200 37,000 700 8,500 12,300 25,000 4,000 7,600 86,000 33,000 38,750 35,890 1,110
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