GENERAL JOURNAL

GENERAL JOURNAL
PAGE NUMBER GJ-1
With Explanations

CURRENT JOURNAL ENTRIES

DATE DESCRIPTION REF DEBIT CREDIT
2017
Dec. 1 Cash 101 ₱ 590,000
Sanchez, Capital 301 ₱ 590,000
To record initial investment

2 Office Equipment 106 30,000

Accounts Payable 201 30,000
To record purchased computer
equipment on account from Xcel
00 Computers Inc.

3 Prepaid Insurance 103 12,000

Cash 101 12,000
To record acquisition insurance with 1
year coverage

3 Merchandise Inventory 105 205,000

Accounts Payable 201 205,000
To record bought merchandise on
account from TY Traders

4 Accounts Payable 201 1,800

Cash 101 1,800
To record cash sales

5 Cash 101 88,000

Sales 401 88,000
To record cash sales

Cost of Sales 501 50,000

Merchandise Inventory 105 50,000
To record the cost of merchandise sold

5 Supplies 104 3,500

Accounts Payable 201 3,500
To record supplies bought on account

Tapales, Jacinto Jr. D. PERPETUAL INVENTORY CAC - SLW

 GENERAL JOURNAL

GENERAL JOURNAL
PAGE NUMBER GJ-2
With Explanations

CURRENT JOURNAL ENTRIES

DATE DESCRIPTION REF DEBIT CREDIT
2017
Dec. 6 Accounts Payable 201 ₱ 30,000
Cash 101 ₱ 30,000
To record payment of account from
Xcel Computers Inc.

8 Accounts Payable 201 1,100

Merchandise Inventory 105 1,100
To record credit of wrongly delivered
merchandise

9 Sales Returns and Allowances 402 900

Cash 101 900
To record refund from customer

Merchandise Inventory 105 500

Cost of Sales 501 500
To record returned merchandise

11 Accounts Receivable 102 108,000

Sales 401 108,000
To record sold merchandise on account

Cost of Sales 501 61,400

Merchandise Inventory 105 61,400
To record the cost of merchandise sold

12 Accounts Receivable 102 900

Cash 101 900
To record payment of freight

GENERAL JOURNAL

Tapales, Jacinto Jr. D. PERPETUAL INVENTORY CAC - SLW

 GENERAL JOURNAL
PAGE NUMBER GJ-3
With Explanations

CURRENT JOURNAL ENTRIES

DATE DESCRIPTION REF DEBIT CREDIT
2017
Dec. 12 Cash 101 ₱ 50,000
Notes Payable 301 ₱ 50,000
To record loan from RCBC with 180-
day note

13 Accounts Payable 201 202,100

Cash 101 198,022
Merchandise Inventory 105 4,078
To record payment of merchandise
bought less freight and discount

15 Sales Returns and Allowances 402 11,330

Accounts Receivable 102 11,330
To record returned merchandise on
account

Merchandise Inventory 105 6,400

Cost of Sales 501 6,400
To record the cost of merchandise
returned

15 Salaries Expense 509 9.000

Cash 101 9,000
To record salaries paid in cash

17 Merchandise Inventory 105 79,000

Accounts Payable 201 79,000
To record merchandise bought on
account

20 Cash 101 95,636.60

Sales Discount 403 1,933.40
Accounts Receivable 102 97,570
To record payment in cash.

Tapales, Jacinto Jr. D. PERPETUAL INVENTORY CAC - SLW

 GENERAL JOURNAL

GENERAL JOURNAL
PAGE NUMBER GJ-4
With Explanations

CURRENT JOURNAL ENTRIES

DATE DESCRIPTION REF DEBIT CREDIT
2017
Dec. 24 Accounts Payable 201 ₱ 3,500
Cash 101 ₱ 3,500
To record payment of supplies acquired
on account

25 Sanchez, Drawings 302 120,000

Cash 101 120,000
To record owner’s withdrawal

26 Cash 101 99,000

Sales 401 99,000
To record merchandise sold in cash

Cost of Sales 501 56,500

Merchandise Inventory 105 56,500
To record cost of sold merchandise

27 Telephone Expense 511 5,700

Cash 101 5,700
To record telephone bill paid in cash

29 Repairs and Maintenance 506 990

Cash 101 990
To record payment on repair electrical
wirings

30 Salaries Expense 509 9,000

Cash 101 9,000
To record cash payment of salary

30 Advertising Expense 502 3,800

Utilities Expense 512 2,900
Rent Expense 506 15,000
Cash 21,700
To record cash payment of various
expenses

Tapales, Jacinto Jr. D. PERPETUAL INVENTORY CAC - SLW

 GENERAL LEDGER

GENERAL LEDGER
PAGE NUMBER GL- 1 Assets
Account 101 CASH
Date Item Post Debit Credit Balance
2017 Debit Credit
Dec. 1 Initial Investment GJ-1 590,000 590,000
3 Prepaid Insurance GJ-1 12,000 578,000
4 Accounts Payable GJ-1 1,800 576,200
5 Sales GJ-1 88,000 664,200
6 Accounts Payable GJ-2 30,000 634,200
9 Sales Returns and GJ-2 900 633,300
Allowances
12 Freight Out GJ-2 900 632,400
12 Notes Payable GJ-3 50,000 682,400
13 Accounts Payable GJ-3 198,022 484,378
15 Salaries Expense GJ-3 9,000 475,378
20 Accounts Receivable GJ-3 95,636.60 571,014.60
24 Supplies Expense GJ-4 3,500 567,514.60
25 Drawings GJ-4 120,000 447,514.60
26 Sales GJ-4 99,000 546,514.60
27 Telephone Expense GJ-4 5,700 540,814.60 .
29 Repairs and Maintenance GJ-4 990 539,824.60
30 Salaries Expense GJ-4 9,000 530,824.60
30 Various Expenses GJ-4 21,700 509,124.60

Account 102 ACCOUNTS RECEIVABLE

Date Item Post Debit Credit Balance
2017 Debit Credit
Dec. 11 Sales GJ-2 108,000 108,000
12 Freight Out GJ-2 900 108,900
15 Sales Returns and GJ-2 11,330 97,570
Allowances
20 Payment of Sold GJ-2 97,570 -
Merchandise

Account 103 PREPAID INSURANCE

Date Item Post Debit Credit Balance
2017 Credit
Dec. 3 Prepaid Insurance GJ-1 12,000 12,000

Tapales, Jacinto Jr. D. PERPETUAL INVENTORY CAC - SLW

 GENERAL LEDGER

GENERAL LEDGER
PAGE NUMBER GL-2 Assets
Account 104 SUPLPLIES
Date Item Post Debit Credit Balance
2017 Debit Credit
Dec 5 Bought on account GJ-1 3,500 3,500

Account 105 MERCHANDISE INVENTORY

Date Item Post Debit Credit Balance
2017 Debit Credit
Dec. 4 Accounts Payable GJ-1 205,000 205,000
5 Cost of Sales GJ-1 50,000 155,000
8 Accounts Payable GJ-2 1,100 153,900
9 Cost of Sales GJ-2 500 154,400
11 Cost of Sales GJ-2 61,400 93,000
12 Purchase Discount GJ-3 4,078 88,922
15 Cost of Sales GJ-3 6,400 95,322
17 Accounts Payable GJ-3 79,000 174322
26 Cost of Sales GJ-4 56,500 117,822

Account 106 OFFICE EQUIPMENT

Date Item Post Debit Credit Balance
2017 Debit Credit
Dec. 2 Bought on Account GJ-1 30,000 30,000

Account 107 ACCUMULATED DEPRECIATION

Date Item Post Debit Credit Balance
2017 Debit Credit
Dec.

Account
Date Item Post Debit Credit Balance
Debit Credit

Tapales, Jacinto Jr. D. PERPETUAL INVENTORY CAC - SLW

 GENERAL LEDGER

GENERAL LEDGER
PAGE NUMBER GL-3 Liabilities
Account 201 ACCOUNTS PAYABLE
Date Item Post Debit Credit Balance
2017 Debit Credit
Dec. 2 Office Equipment GJ-1 30,000 30,000
3 Purchase Inventory GJ-1 205,000 235,000
4 Payment of freight GJ-1 1,800 233,200
5 Purchase supplies on GJ-1 3,500 236,700
account
6 Payment to Xcel GJ-2 30,000 206,700
Computers
8 Returned of Merchandise GJ-2 1,100 205,600
13 Payment to TY Traders GJ-3 202,100 3,500
17 Purchase Merchandise GJ-3 79,000 82,500
24 Payment of Supplies GJ-4 3,500 79,000

Account 202 INTEREST PAYABLE

Date Item Post Debit Credit Balance
2017 Debit Credit
Dec.

Account 203 NOTES PAYABLE

Date Item Post Debit Credit Balance
2017 Debit Credit
Dec. 12 Loan from RCBC GJ-3 50,000 50,000

Account
Date Item Post Debit Credit Balance
Debit Credit

Account
Date Item Post Debit Credit Balance
Debit Credit

GENERAL LEDGER

Tapales, Jacinto Jr. D. PERPETUAL INVENTORY CAC - SLW

 GENERAL LEDGER
PAGE NUMBER GL-4 Equity
Account 301 SANCHEZ CAPITAL
Date Item Post Debit Credit Balance
2023 Debit Credit
Dec. 1 Investment GJ-1 590,000 590,000
31 Closing GJ-5 73,446.6 663,446.60
31 Closing GJ-5 120,000 543,446.60

Account 303 SANCHEZ DRAWINGS

Date Item Post Debit Credit Balance
2017 Debit Credit
Dec. 25 Drawings GJ-4 120,000 120,000
31 Closing GJ-5 120,000 -

Account 303 INCOME SUMMARY

Date Item Post Debit Credit Balance
2017 Debit Credit
Dec. 31 Closing GJ-5 280,836.60 280,836.60
31 Closing GJ-5 207,390 73,446.60
31 Closing GJ-5 73,446.60 -

Account
Date Item Post Debit Credit Balance
Debit Credit

Account
Date Item Post Debit Credit Balance
Debit Credit

GENERAL LEDGER

Tapales, Jacinto Jr. D. PERPETUAL INVENTORY CAC - SLW

 GENERAL LEDGER
PAGE NUMBER GL-5 Income
Account 401 SALES
Date Item Post Debit Credit Balance
2017 Debit Credit
Dec. 5 Cash Sales GJ-1 88,000 88,000
11 Accounts Receivable GJ-2 108,000 196,000
26 Cash Sales GJ-4 99,000 295,000
31 Closing GJ-5 295,000 -

Account 402 SAES RETURNS AND ALLOWANCES

Date Item Post Debit Credit Balance
2017 Debit Credit
Dec. 9 Sales Returns GJ-2 900 900
15 Sales Returns GJ-3 11,330 12,230
31 Closing GJ-5 12,230 -

Account 415 SALES DISCOUNTS

Date Item Post Debit Credit Balance
2017 Debit Credit
Dec. 20 Discounts GJ-3 1,933.40 1,933.40
31 Closing GJ-5 1,933.4 -

Account
Date Item Post Debit Credit Balance
Debit Credit

Account
Date Item Post Debit Credit Balance
Debit Credit

GENERAL LEDGER

GENERAL LEDGER
PAGE NUMBER GL-6 Expenses
Tapales, Jacinto Jr. D. PERPETUAL INVENTORY CAC - SLW
 Account 501 COST OF SALES
Date Item Post Debit Credit Balance
2017 Debit Credit
Dec. 5 Merchandise Inventory GJ-1 50,000 50,000
9 Returned Merchandise GJ-2 500 49,500
11 Merchandise Inventory GJ-2 61,400 110,900
15 Returned Merchandise GJ-2 6,400 104,500
26 Merchandise Inventory GJ-4 56,500 161,000
31 Closing GJ-5 161,000 -

Account 502 ADVERTISING EXPENSE

Date Item Post Debit Credit Balance
2017 Debit Credit
Dec. 30 Paid in Cash GJ-4 3,800 3,800
31 Closing G5-5 3,800 -

Account 503 DEPRECIATION EXPENSE

Date Item Post Debit Credit Balance
2017 Debit Credit
Dec.

Account 504 FREIGHT - OUT

Date Item Post Debit Credit Balance
2017 Debit Credit
Dec..

Account 505 INSURANCE EXPENSE

Date Item Post Debit Credit Balance
2017 Debit Credit
Dec.

Account 506 INTEREST EXPENSE

Date Item Post Debit Credit Balance
2017 Debit Credit
Dec.

GENERAL LEDGER

GENERAL LEDGER
PAGE NUMBER GL-7
Expenses
Account 506 RENT EXPENSE
Date Item Post Debit Credit Balance
Tapales, Jacinto Jr. D. PERPETUAL INVENTORY CAC - SLW
 2017 Debit Credit
Dec. 30 Paid in cash GJ-4 15,000 15,000
31 Closing GJ-5 15,000 -

Account 508 REPAIRS & MAINTENANCE

Date Item Post Debit Credit Balance
2017 Debit Credit
Dec. 29 Paid in Cash GJ-4 990 990
31 Closing GJ-5 990 -

Account 509 SALARIES EXPENSE

Date Item Post Debit Credit Balance
2017 Debit Credit
Dec. 15 Paid in cash GJ-2 9,000 9,000
30 Paid in cash GJ-4 9,000 18,000
31 Closing GJ-5 18,000.00 -

Account 510 SUPPLIES EXPENSE

Date Item Post Debit Credit Balance
2017 Debit Credit
Dec.

Account 511 TELEPHONE EXPENSE

Date Item Post Debit Credit Balance
2017 Debit Credit
Nov. 27 Paid in cash GJ-4 5,700 5,700
31 Closing GJ-5 5,700.00 -

Account 512 UTILITIES EXPENSE

Date Item Post Debit Credit Balance
2017 Debit Credit
Nov. 30 Paid in Cash GJ-4 2,900 2,900
31 Closing GJ-5 2,900.00 -

Tapales, Jacinto Jr. D. PERPETUAL INVENTORY CAC - SLW

 TRIAL BALANCE

SANCHEZ TRADING
PRELIMINARY TRIAL BALANCE
DECEMBER 31, 2017
ACCOUNT TITLES DR CR
101 CASH ₱ 509,124.60
102 ACCOUNTS RECEIVBALE -
103 PREPAID INSURANCE 12,000.00
104 SUPPLIES 3,500.00
105 MERCHANDISE INVENTORY 117,822.00
106 OFFICE EQUIPMENT 30,000.00
201 ACCOUNTS PAYABLE ₱ 79,000.00
203 NOTES PAYABLE 50,000.00
301 SANCHEZ CAPITAL 590,000.00
302 SANCHEZ DRAWINGS 120,000.00
401 SALES 295,000.00
402 SALES RETURNS and ALLOWANCES 12,230.00
403 SALES DISCOUNT 1,933.40
501 COST OF SALES 161,000.00
502 ADVERTISING EXPENSE 3,800.00
507 RENT EXPENSE 15,000.00
508 REPAIRS AND MAINTENANCE 990.00
509 SALARIES EXPENSE 18,000.00
511 TELEPHONE EXPENSE 5,700.00
512 UTILITIES EXPENSE 2,900.00

TOTALS ₱ 1,014,00.00 ₱ 1,014,000.00

Tapales, Jacinto Jr. D. PERPETUAL INVENTORY CAC - SLW

 STATEMENT OF PERFORMANCE & STATEMENT OF EQUITY

SANCHEZ TRADING
STATEMENT OF PERFORMANCE
AS OF DECEMBER 31, 2017
(IN PESOS)
GROSS SALES ₱ 295,000.00
LESS: SALES RETURNS AND ALLOWANCES ₱ 12,230.00
SALES DISCOUNTS 1,933.40 (14,163.40)
NET SALES 280,836.60
LESS: COST OF SALES (161,000.00)
GROSS PROFIT 119,836.60
LESS: EXPENSES
ADVERTISING EXPENSE 3,800.00
RENT EXPENSE 15,000.00
REPAIRS AND MAINTENANCE 990.00
SALARIES EXPENSE 18,000.00
TELEPHONE EXPENSE 5,700.00
UTILITIES EXPENSE 2,900.00 46,390.00
NET INCOME ₱ 73,446.60

STATEMENT OF EQUITY

(IN PESOS)
Beginning Balance, December 1, 2014 ₱ 590,000.00
ADD:NET INCOME 73,446.60
LESS: DRAWINGS (120,000.00)
Ending Balance, December 31, 2017 ₱ 543,446.60

Tapales, Jacinto Jr. D. PERPETUAL INVENTORY CAC - SLW

 STATEMENT OF FINANCIAL POSITION

SANCHEZ TRADING
STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2017

(IN PESOS)
ASSETS
CURENT ASSETS
CASH ₱ 509,124.60
ACCOUNTS RECEIVABLE 0.00
PREPAID INSURANCE 12,000.00
SUPPLIES 3,500.00
MERCHANDISE INVENTORY 117,822.00
TOTAL CURRENT ASSETS 642,446.60
NON-CURRENT ASSETS
OFFICE EQUIPMENT 30,000.00
TOTAL ASSETS ₱ 672,446.60
LIABILITIES
CURRENT LIABILITY
ACCOUNTS PAYABLE ₱ 79,000.00
NON-CUURENT LIABILITY
NOTES PAYABLE 50,000.00
TOTAL LIABILITIES 129,000.00
EQUITY
SANCHEZ CAPITAL 543,446.60
TOTAL LIBILITIES AND OWNER’S EQUITY ₱ 672,446.60

Tapales, Jacinto Jr. D. PERPETUAL INVENTORY CAC - SLW

 STATEMENT OF CASH FLOWS

SANCHEZ TRADING
STATEMENT OF CASH FLOWS
AS OF DECEMBER 31, 2017
(in pesos)

CASH FLOWS from OPERATING ACTIVITIES

CASH RECEIVE FROM:
SALES ₱ 187,000.00
COLLECTED FROM RECEIVABLES 95,636.60
TOTAL 282,636.60
CASH PAYMENT FOR:
BOUGHT MERCHANDISE (198,022.000)
OPERATING EXPENSES (61,890.00)
FREIGHT – IN (1,800.00)
RETUNS OF MERCHANDISE (900.00)
FREIGHT – OUT (900.00)
TOTAL 263,512.00
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES 19,124.60
CASH FLOWS from INVESTING ACTIVITIES
CASH PAYMENT FOR:
BOUGHT OFFICE EQUIPMENT (30,000.00)
TOTAL CASH FLOWS FROM INVETSING ACTIVITIES (30,000.00)
CASH FLOWS from FINANCING ACTIVITIES
CASH RECEIVE FROM:
SANCHEZ INVESTMENT 590,000.00
BORROWED MONEY FROM BANK 50,000.00
SANCHEZ DRAWINGS 120,000.00
TOTAL CASH FLOWS FROM FINANCING ACTIVITIES 520,000.00
INCREASE IN CASH AND CASH EQUIVALENTS 509,124.60
ADD: CASH AND CASH EQUIVALENTS, DECEMBER 1, 2017 0.00
CASH AND CASH EQUIVALENTS, DECEMBER 31, 2017 ₱ 509,124.60

Tapales, Jacinto Jr. D. PERPETUAL INVENTORY CAC - SLW

 CLOSING JOURNAL ENTRIES

GENERAL JOURNAL
PAGE NUMBER GJ-5
With Explanations

CLOSING JOURNAL ENTRIES

DATE DESCRIPTION REF DEBIT CREDIT
2017
Dec. 31 Sales 401 ₱ 295,000.00
Sales Returns and Allowances 402 ₱ 12,230.00
Sales Discounts 403 1,933.40
Income summary 303 280,836.60
To close the sales account

31Income Summary 303 207,390.00

Cost of Sales 501 161,000.00
Advertising Expense 502 3,800.00
Rent Expense 507 15,000.00
Repairs and Maintenance 508 990.00
Salaries Expense 509 18,000.0
Telephone Expense 511 5,700.00
Utilities Expense 512 2,900.00
To close expenses accounts

31Income Summary 303 73,446.60

Sanchez Capital 301 73,446.60
To close the income summary

31Sanchez Capital 301 120,000.00

Sanchez Drawings 302 120,000.00
To close drawings account

Tapales, Jacinto Jr. D. PERPETUAL INVENTORY CAC - SLW

 POST-CLOSING TRIAL BALANCE

SANCHEZ TRADING
POST-CLOSING TRIAL BALANCE
AS OF DECEMBER 31, 2017
(in pesos)

ACCOUNT TITLES DR CR
101 CASH ₱ 509,124.60
102 ACCOUNTS RECEIVABLE -
103 PREPAID INSURANCE 12,000.00
104 SUPPLIES 3,500.00
105 MERCHANDISE INVENTORY 117,822.00
106 OFFICE EQUIPMENT 30,000
201 ACCOUNTS PAYABLE ₱ 79,000.00
202 NOTES PAYABLE 50,000.00
301 SANCHEZ CAPITAL 543,446.60

₱ 672,446.60 ₱ 672,446.60

Tapales, Jacinto Jr. D. PERPETUAL INVENTORY CAC - SLW

 COST OF GOODS SOLD

STATEMENT OF COST OF GOODS SOLD

(IN PESOS)

https://www.accountingcoach.com/bookkeeping/quiz

Tapales, Jacinto Jr. D. PERPETUAL INVENTORY CAC - SLW