Question PERIODIC INVENTORY SYSTEM Mr. Lopez opened a mini grocery store with business name Lopez Fiesta Mart. Operations began on January 1, 2021, and the following transactions were completed during the month: 1.Mr. Lopez withdrew ₱150,000 from a personal savings account and used it to open a new account in the name of Lopez Fiesta Mart. 2.Bought grocery supplies on account ₱10,700. 4.Acquired a service vehicle costing ₱76,000. A payment of ₱25,000 Cash was made and a note payable given for the ₱51,000 remainder payable for 6 equal monthly installment. 6.Purchased merchandise from Puregold ₱49,500, terms 5/10, 3/20. 7.Paid ₱1,600 delivery charge for January 6 transactions. 8.Paid for three months of advertising and recorded Prepaid Advertising in the amount of ₱6,000. 11.Sold merchandise on account ₱42,000 with 40% mark-up from the inventory cost of ₱30,000, term 2/10, n/30. 12.Paid ₱1,200 freight for January 11 transactions. 14.Returned defective merchandise to Puregold amounting to ₱4,500. 15.Paid salaries, ₱5,600. 16. Signed a promissory note for ₱30,000 loaned amount from Commonwealth Bank. 17. Received returned merchandise from customer ₱3,500. 18. Paid ₱5,700 of the amount owed from the transaction of January 2. 19. Purchase additional groceries from Talavera Supermarket amounting to ₱44,000. 20. Collected full settlement of a customer from January 11 transactions. 24. Paid telephone expense, ₱1,600. 25. Paid building rentals for the month, ₱4,800. 26. Settled accounts to Puregold. 27. ₱41,750 cost of merchandise sold for ₱58,450. 28. Withdrew ₱20,000 from the business. 29. Paid miscellaneous expenses, ₱3,430. 30. Paid the first installment of the note payable on Service Vehicle, ₱8,500. 31. Paid Salaries ₱5,100, net of the following deductions: SSS, ₱380; Pag-IBIG, ₱100; Philhealth, ₱220. The Merchandise Inventory at the end of the of the month is ₱20,000. Required: A. Journalize the transactions using the following accounts: (Use the Periodic Accounting System) ASSETS: Cash (110); Accounts Receivable (120); Supplies (130); Prepaid Advertising (140); Merchandise Inventory (150); Service Vehicle (160); LIABILITIES: Accounts Payable (210); SSS Payable (220); Pag-IBIG Payable (230); Philhealth Payable (240); Notes Payable (250). CAPITAL: Lopez, Capital (310); Lopez, Withdrawals (320). REVENUES: Sales (410); Sales Returns & Allowances (420); Sales Discount (430); Purchases (510); Freight in (520); Purchase returns and allowances (530); Purchase discounts (540) EXPENSES: Freight-out (610); Salaries Expense (620); Rent Expense (630) Telephone Expense (640); and Miscellaneous Expense (650). INCOME SUMMARY (700)
PERIODIC INVENTORY SYSTEM
Mr. Lopez opened a mini grocery store with business name Lopez Fiesta Mart. Operations began on January 1, 2021, and the following transactions were completed during the month:
1.Mr. Lopez withdrew ₱150,000 from a personal savings account and used it to open a new account in the name of Lopez Fiesta Mart.
2.Bought grocery supplies on account ₱10,700.
4.Acquired a service vehicle costing ₱76,000. A payment of ₱25,000 Cash was made and a note payable given for the ₱51,000 remainder payable for 6 equal monthly installment.
6.Purchased merchandise from Puregold ₱49,500, terms 5/10, 3/20.
7.Paid ₱1,600 delivery charge for January 6 transactions.
8.Paid for three months of advertising and recorded Prepaid Advertising in the amount of ₱6,000.
11.Sold merchandise on account ₱42,000 with 40% mark-up from the inventory cost of ₱30,000, term 2/10, n/30.
12.Paid ₱1,200 freight for January 11 transactions.
14.Returned defective merchandise to Puregold amounting to ₱4,500.
15.Paid salaries, ₱5,600.
16. Signed a promissory note for ₱30,000 loaned amount from Commonwealth Bank.
17. Received returned merchandise from customer ₱3,500.
18. Paid ₱5,700 of the amount owed from the transaction of January 2.
19. Purchase additional groceries from Talavera Supermarket amounting to ₱44,000.
20. Collected full settlement of a customer from January 11 transactions.
24. Paid telephone expense, ₱1,600.
25. Paid building rentals for the month, ₱4,800.
26. Settled accounts to Puregold.
27. ₱41,750 cost of merchandise sold for ₱58,450.
28. Withdrew ₱20,000 from the business.
29. Paid miscellaneous expenses, ₱3,430.
30. Paid the first installment of the note payable on Service Vehicle, ₱8,500.
31. Paid Salaries ₱5,100, net of the following deductions: SSS, ₱380; Pag-IBIG, ₱100; Philhealth, ₱220. The Merchandise
Inventory at the end of the of the month is ₱20,000.
Required:
A. Journalize the transactions using the following accounts: (Use the Periodic Accounting System)
ASSETS: Cash (110); Accounts Receivable (120); Supplies (130); Prepaid Advertising (140); Merchandise Inventory (150); Service Vehicle (160);
LIABILITIES: Accounts Payable (210); SSS Payable (220); Pag-IBIG Payable (230); Philhealth Payable (240); Notes Payable (250).
CAPITAL: Lopez, Capital (310); Lopez, Withdrawals (320).
REVENUES: Sales (410); Sales Returns & Allowances (420); Sales Discount (430);
Purchases (510); Freight in (520); Purchase returns and allowances (530); Purchase discounts (540)
EXPENSES: Freight-out (610); Salaries Expense (620); Rent Expense (630) Telephone Expense (640); and Miscellaneous Expense (650).
INCOME SUMMARY (700)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
