Prepare a Cost of Goods Sold Schedule (for periodic method) Serenity Villa opened SV Merchandising Store. The following transactions occurred during themonth of July 2018:1-Jul Villa invested P128,000 in the business.2 Acquired Computer Set for P21,000. Villa paid 5,000 and issued a promissory note forthe remaining balance.2 Acquired supplies for cash, P1,200.3 Purchase P81,900 of merchandise from LOWKEY company on account.Terms: FOB Destination, 2/10, n/30.5 Sold merchandise to THORE for P48,600 on account.Terms: FOB Destination, 2/10, n/30.The cost of merchandise sold was P28,880.Paid P550 freight on the same day.7 Received collections from customers billed on sales of P48,600 on July 5.9 Returned merchandise purchased from LOWKEY Company, P380.11 Paid the amount due from July 3 transaction.13 Purcha se merchandise P12,300 and additional supplies P450 for cash.15 Paid 15th month salary, P8,000.16 Received refund for poor quality of merchandise from a supplier on cash purchasemade on July 13, P870.18 Sold merchandise to various customers, P24,300.The cost of merchandise is P16,500.19 Purchase 15,800 of merchandise from Eleonor Shop.FOB Shipping point, terms, 2/10, n/30.23 Receive sales returns, P3,800 from various customers. It's cost is P2,900.24 Borrowed money from Town Bank, signed promissory note for P13,500.24 Paid freight on July 21 purchase, P580.26 Sold merchandise on account for P36,800 terms, 2/10, n/30 FOB Destination. Themerchandise sold had a cost of P21,300.28 Serenity Villa withdrew cash from the business, P9,000.30 Paid Eleonor Shop in full.31 Paid Salary to employees, P8,000.31 Paid News Hub for 1-month advertisement of the store, P1,580.31 Paid Rent and Utilities expenses for the month, P2,800 and P700 respectively. Trial BalanceAccount TitleDebitCreditCash45120Capital|Computer SetNote PayableSupplies12800021000160001650Purchases110000Accounts Receivable57300Sales109700Freight outPurchase ReturnsPurchase DiscountSalaries ExpensesSales ReturnsBank Note PayableFreight inDrawingsRent ExpenseUtilities ExpensesAdvertising ExpensesTotal5501250163016000380013500580900028007001580270080270080

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Description: Prepare a Cost of Goods Sold Schedule (for periodic method) Serenity Villa opened SV Merchandising Store. The following transactions occurred during themonth of July 2018:1-Jul Villa invested P128,000 in the business.2 Acquired Computer Set for P21,0

Cost of goods sold consists of all costs incurred on goods which are sold by company. It includes…

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Business

Accounting

Prepare a Cost of Goods Sold Schedule (for periodic method)

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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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

Topic Video

Question

Prepare a Cost of Goods Sold Schedule (for periodic method)

Serenity Villa opened SV Merchandising Store. The following transactions occurred during the
month of July 2018:
1-
Jul Villa invested P128,000 in the business.
2 Acquired Computer Set for P21,000. Villa paid 5,000 and issued a promissory note for
the remaining balance.
2 Acquired supplies for cash, P1,200.
3 Purchase P81,900 of merchandise from LOWKEY company on account.
Terms: FOB Destination, 2/10, n/30.
5 Sold merchandise to THORE for P48,600 on account.
Terms: FOB Destination, 2/10, n/30.
The cost of merchandise sold was P28,880.
Paid P550 freight on the same day.
7 Received collections from customers billed on sales of P48,600 on July 5.
9 Returned merchandise purchased from LOWKEY Company, P380.
11 Paid the amount due from July 3 transaction.
13 Purcha se merchandise P12,300 and additional supplies P450 for cash.
15 Paid 15th month salary, P8,000.
16 Received refund for poor quality of merchandise from a supplier on cash purchase
made on July 13, P870.
18 Sold merchandise to various customers, P24,300.
The cost of merchandise is P16,500.
19 Purchase 15,800 of merchandise from Eleonor Shop.
FOB Shipping point, terms, 2/10, n/30.
23 Receive sales returns, P3,800 from various customers. It's cost is P2,900.
24 Borrowed money from Town Bank, signed promissory note for P13,500.
24 Paid freight on July 21 purchase, P580.
26 Sold merchandise on account for P36,800 terms, 2/10, n/30 FOB Destination. The
merchandise sold had a cost of P21,300.
28 Serenity Villa withdrew cash from the business, P9,000.
30 Paid Eleonor Shop in full.
31 Paid Salary to employees, P8,000.
31 Paid News Hub for 1-month advertisement of the store, P1,580.
31 Paid Rent and Utilities expenses for the month, P2,800 and P700 respectively.

Trial Balance
Account Title
Debit
Credit
Cash
45120
Capital
|Computer Set
Note Payable
Supplies
128000
21000
16000
1650
Purchases
110000
Accounts Receivable
57300
Sales
109700
Freight out
Purchase Returns
Purchase Discount
Salaries Expenses
Sales Returns
Bank Note Payable
Freight in
Drawings
Rent Expense
Utilities Expenses
Advertising Expenses
Total
550
1250
1630
16000
3800
13500
580
9000
2800
700
1580
270080
270080

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