MM COMPANY

CHART OF ACCOUNTS

ASSETS
PAGE NO. ACCOUNT NO. CURRENT ASSETS PAGE NO. ACCOUNT NO.

1 100 Cash in Bank 14 400

2 101 Accounts Receivable 15 401
3 102 Estimated Uncollectible Accounts 16 402
4 103 Office Supplies
5 104 Prepaid Rent

PROPERTY AND EQUIPMENT

6 105 Office Equipment 17 500

7 106 Accumulated Depreciation 18 501
19 502
LIABILITY 20 503

8 200 Accounts Payable

9 201 Salaries Payable
10 202 Utilities Payable 21 600
11 203 Bank Loan Payable 22 601
23 602
Owner's Equity 24 603
12 300 MM, Capital 25 604
13 301 MM, Withdrawal 26 605
27 606
INCOME

Sales
Sales Discount
Sales Returns

COSTS

Purchases
Purchase Discount
Purchase Returns
Freight in

EXPENSES

Freight out
Salaries Expense
Utilities Expense
Supplies Expense
Rent Expense
Uncollectible Accounts
Depreciation Expense
JANUARY
1
1
2

2
3
4
5
6
7
8
9
10
11
11
13
14
15
15
20
20
20
25
27
28
Additional Information

1
2

3
 The following are the transactions of MM company for the month of January 2020
JANUARY
MM invested P 900,000 cash. OR no. 00001
Purchased merchandise on account from KCC Mall, P 480,000. Charge Invoice no. 0024 Term 12 , 2/15, n/30
Purchased office equipment on account, P 75,000 from Gaisano Mall. Charge invoice no. 2134.
It has a useful life of 5 years with a salage value 5,000 at the end of its life.
Paid Mr. AA for the delivery of the merchandise purchased in no. 1. P 4,800. Check no. 10000.
Purchased merchandise from XYZ company for cash, P 93,000. Check no. 10001 , OR NO. 6543
Sold merchandise on account, P 710,000 to ABC Marketing which cost amounted to , P 420,000. Term 20, 2/15, n/30. Charge i
Paid salaries of the employees, P52,000. Check no. 10002
Returned merchandise purchase from KCC Mall, 35,000.
Paid MR. CC for the delivery of the merchandise sold to ABC Marketing P 4,500. Check no. 10003
Sold merchandise to BB for cash, P 345,000 which cost amounted to , P 185,000. OR NO.00002
Returned merchandise purchased from XYZ company, P 34,000, OR NO. 7500
Received merchandise from ABC Marketing, P 40,300 which cost , P 20,300.
Received merchandise from BB, P 40,000 which cost , P 10,000. Check no. 10004
Paid P 228,000 of the merchandise purchased from KCC Mall. Chek no. 10005
Collected 315,000 the account with ABC Marketing. OR no. 00003
Paid in full the account with KCC Mall. Check no. 10006
Collected in full the account of ABC Marketing, OR no. 00004
Paid XX Realty for 3 months rent in advance, P 60,000. Check no. 10007
Borrowed P 450,000 from RCBC bank at 8 % payable 1 year after.
Purchased office supplies from Crown Bookstore for cash P 12,000. Check no. 10008
Paid salaries of the employees, P52,000. Check no. 10009
Sold Merchandise on account, P 625,000 to HH Company which cost amounted to , P 380,000. Term 15, 2/10, n/30. Charge inv
Purchased merchandise on account from NCCC MALL, P 390,000. Charge Invoice no. 0030 Term 20 , 3/15, n/30
MM withdrew cash for his personal use, P 35,000. Check no. 10010
Additional Information

30% of the supplies were on hand

The entity paid its employees every 20th and 5th day of the month and is on a six day work week. It incurs P 4,000 salaries exp
Payroll cut off date is every 15th day and end of the month.
Unpaid Expenses at year end
Electricity expense 5,450
Telepone expense 1699
Water expense 1,450

Required :
1. Journalize the above transactions using special journals
2. Post the journal entries to the ledger
3. Prepare a trial balance
Cash receipts journal PURCHASE DISCOUNT COMPUTATION
Purchase Journal PURCHASES
General jOurnal LESS: PURCHASE RETURNS
NET PURCHASES
Cash Disbursement jOurnal X DISCOUNT RATE
Cash Disbursement jOurnal PURCHASE DISCOUNT
Sales Journal
Cash Disbursement jOurnal
General jOurnal Accounts Payable
Cash Disbursement jOurnal GJ RETURNS 35,000
cash receipts journal CDJ PAYMENT 228,000
Cash receipts journal 263,000
General jOurnal
Cash Disbursement jOurnal
Cash Disbursement jOurnal
Cash receipts journal
Cash Disbursement jOurnal
Cash receipts journal Accounts Receivable
Cash Disbursement jOurnal SJ SALES 568,000
cash receipts journal
Cash Disbursement jOurnal 568,000
Cash Disbursement jOurnal ENDING BALANCE 212,700
Sales Journal
Purchase Journal
Cash Disbursement jOurnal
COMPUTATION SALES DISCOUNT COMPUTATION
422,400 SALES 568,000
35,000 LESS: SALES RETURNS 40,300
387,400 NET SALES 527,700
2% X DISCOUNT RATE 2%
7,748 SALES DISCOUNT 10,554

Accounts Payable
422,400 PURCHASES PJ

422,400
159,400 ENDING BALANCE

Accounts Receivable
40,300 RETURNS GJ
315,000 COLLECTION CRJ
355,300
DATE DESCRIPTION PR DEBIT CREDIT
YEAR 2020
JANUARY
2 Office Equipment 75,000
Accounts Payable 75,000

6 Accounts Payable 35,000

Purchase Returns 35,000
Returned merchandise to KCCMall
10 Sales Returns 40,300
Account Receivable 40,300
Received goods from ABC Marketing
150,300 150,300
 DATE SUPPLIERS TERMS CHARGE SALES INVOICE NO.
YEAR 2020
JANUARY
1 KCC MALL 2/15,N/30 0024
27 NCCC MALL 3/15,N/30 0030
PURCHASES ACCOUNTS PAYABLE
DEBIT CREDIT

422,400 422,400
312,000 312,000
734,400 734,400
 DATE CUSTOMERS TERMS CHARGE SALES INVOICE NO.
YEAR 2020
JANUARY
4 ABC MARKETING 2/15, N/30 0000001
25 HH COMPANY 2/10, N/30 0000002
ACCOUNTS RECEIVABLE SALES
DEBIT CREDIT

568,000 568,000
531,250 531,250
1,099,250 1,099,250
 DATE CUSTOMERS/PAYOR CASH SALES
YEAR 2020 INV. / O.R
JANUARY
1 MM 00001
8 BB 00002
9 XYZ COMPANY 7500
13 ABC MARKETING 00003
15 ABC MARKETING 00004
20 RCBC BANK
CASH IN BANK SALES DISCOUNT SALES ACCOUNTS RECEIVABLE
DEBIT DEBIT CREDIT CREDIT

900,000
345,000 345,000
34,000
315,000 315,000
202,146 10,554 212,700
450,000
2,246,146 10,554 345,000 527,700
 SUNDRIES DEBIT CREDIT

MM, CAPITAL 900,000

PURCHASE RETURNS 34,000

Bank loan payable 450,000

1,384,000
 DATE PAYEE CHECK NO./ OR NO. CASH IN BANK
YEAR 2020 CREDIT
JANUARY
2 MR AA 10000 4,800
3 XYZ COMPANY 10001 93,000
5 PAYROLL 10002 52,000
7 Mr CC 10003 4,500
11 BB 10004 40,000
11 KCC MALL 10005 228,000
14 KCC MALL 10006 151,652
15 XX REALTY 10007 60,000
20 CROWN BOOKSTORE 10008 12,000
20 PAYROLL 10009 52,000
28 MM 10010 35,000
732,952
 PURCHASE DISCOUNT PURCHASES ACCOUNTS PAYABLE SALARIES EXPENSE
CREDIT DEBIT DEBIT DEBIT

93,000
52,000

228,000
7,748 159,400

52,000

7,748 93,000 387,400 104,000

 SUNDRIES ACCOUNT
DESCRIPTION DEBIT CREDIT

FREIGHT IN 4,800

FREIGHT OUT 4,500

SALES RETURNS 40,000

PREPAID RENT 60,000

OFFICE SUPPLIES 12,000

MM,WITHDRAWAL 35,000
- 156,300 -
 MM COMPANY
GENERAL LEDGER

ASSETS

CASH IN BANK ACCOUNT NO. 100

DATE PARTICULAF DEBIT DATE PARTICULAF CREDIT

YEAR 2020
Jan-31 CRJ 2,246,146 Jan-31 CDJ 732,952
1,513,194

ACCUMULATED DEPRECIATION ACCOUNT NO. 106

DATE PARTICULAF DEBIT DATE PARTICULAF CREDIT

MM, WITHDRAL ACCOUNT NO. 302

DATE PARTICULAF DEBIT DATE PARTICULAF CREDIT

YEAR 2020
Jan-31 CDJ 35,000

PURCHASE RETURNS ACCOUNT NO. 502

DATE PARTICULAF DEBIT DATE PARTICULAF CREDIT

YEAR 2020
Jan-06 GJ 35,000
Jan-09 CRJ 34,000
69,000

RENT EXPENSE ACCOUNT NO. 604

DATE PARTICULAF DEBIT DATE PARTICULAF CREDIT

ACCOUNTS RECEIVABLE ACCOUNT NO. 101

DATE PARTICULA F DEBIT DATE PARTICULA F CREDIT

YEAR 2020
Jan-31 SJ 1,099,250 Jan-10 GJ 40,300
Jan-31 CRJ 527,700
1,099,250 568,000
531,250

CDJ

ACCOUNTS PAYABLE ACCOUNT NO. 200

DATE PARTICULAF DEBIT DATE PARTICULAF CREDIT

YEAR 2020
Jan-06 GJ 35,000 Jan-02 GJ 75,000
Jan-31 CDJ 387,400 Jan-31 PJ 734,400
422,400 809,400
387,000
SALES ACCOUNT NO. 400

DATE PARTICULAF DEBIT DATE PARTICULAF CREDIT

YEAR 2020
Jan-31 SJ 1,099,250
Jan-31 CRJ 345,000
1,444,250

FREIGHT IN ACCOUNT NO. 503

DATE PARTICULAF DEBIT DATE PARTICULAF CREDIT

YEAR 2020
Jan-02 CDJ 4,800

UNCOLLECTIBLE ACCOUNTS ACCOUNT NO. 605

DATE PARTICULAF DEBIT DATE PARTICULAF CREDIT

ENT
ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS ACCOUNT NO. 102 OFFICE SUPPLIES

DATE PARTICULAF DEBIT DATE PARTICULAF CREDIT DATE

YEAR 2020 YEAR 2020
Jan-31

SALARIES PAYABLE ACCOUNT NO. 201 UTILITIES PAYABLE

DATE PARTICULAF DEBIT DATE PARTICULAF CREDIT DATE

SALES DISCOUNT ACCOUNT NO. 401 SALES RETURNS

DATE PARTICULAF DEBIT DATE PARTICULAF CREDIT DATE

YEAR 2020 YEAR 2020
Jan-31 CRJ 10,554 Jan-10
Jan-11

FREIGHT OUT ACCOUNT NO. 600 SALARIES EXPENSE

DATE PARTICULAF DEBIT DATE PARTICULAF CREDIT DATE

YEAR 2020 YEAR 2020
Jan-11 CDJ 4,500 Jan-31

DEPRECIATION EXPENSE ACCOUNT NO. 606

DATE PARTICULAF DEBIT DATE PARTICULAF CREDIT

OFFICE SUPPLIES ACCOUNT NO. 103 PREPAID RENT

PARTICULAF DEBIT DATE PARTICULAF CRDIT DATE PARTICULA

YEAR 2020 YEAR 2020
CDJ 12,000 Jan-31

UTILITIES PAYABLE ACCOUNT NO. 202 BANK LOAN PAYABLE

PARTICULAF DEBIT DATE PARTICULAF CREDIT DATE PARTICULA

YEAR 2020
Jan-31
SALES RETURNS ACCOUNT NO. 402 PURCHASES

PARTICULAF DEBIT DATE PARTICULAF CREDIT DATE PARTICULA

YEAR 2020 YEAR 2020
GJ 40,300 Jan-31
CDJ 40,000 Jan-31
80,300

SALARIES EXPENSE ACCOUNT NO. 601 UTILITIES

PARTICULAF DEBIT DATE PARTICULAF CREDIT DATE PARTICULA

YEAR 2020
CDJ 104,000
 ACCOUNT NO. 104 OFFICE EQUIPMENT

F DEBIT DATE PARTICULAF CRDIT DATE PARTICULAF

YEAR 2020
CDJ 60,000 Jan-31 GJ

AN PAYABLE ACCOUNT NO. 203 MM,CAPITAL

F DEBIT DATE PARTICULAF CREDIT DATE PARTICULAF

Jan-01 CRJ
Jan-31 CRJ 450,000
 ACCOUNT NO. 500 PURCHASE DISCOUNT

F DEBIT DATE PARTICULAF CREDIT DATE PARTICULAF

PJ 734,400
CDJ 93,000
827,400

ACCOUNT NO. 602 SUPPLIES EXPENSE

F DEBIT DATE PARTICULAF CREDIT DATE PARTICULAF

 ACCOUNT NO. 105

DEBIT DATE PARTICULAF CREDIT

75,000

ACCOUNT NO. 300

DEBIT DATE PARTICULAF CREDIT

900,000
 ACCOUNT NO. 501

DEBIT DATE PARTICULAF CREDIT

YEAR 2020
Jan-31 CDJ 7,748

ACCOUNT NO. 603

DEBIT DATE PARTICULAF CREDIT

 MM COMPANY
TRIAL BALANCE

ACCOUNT ACCOUNTS TITLES DEBIT CREDIT

NO.
100 Cash in Bank 1,513,194
101 Accounts Receivable 531,250
102 Estimated Uncollectible Accounts
103 Office Supplies 12,000
104 Prepaid Rent 60,000
105 Office Equipment 75,000
106 Accumulated Depreciation
200 Accounts Payable 387,000
201 Salaries Payable
202 Utilities Payable
203 Bank Loan Payable 450,000
300 MM, Capital 900,000
301 MM, Withdrawal 35,000
400 Sales 1,444,250
401 Sales Discount 10,554
402 Sales Returns 80,300
500 Purchases 827,400
501 Purchase Discount 7,748
502 Purchase Returns 69,000
503 Freight in 4,800
600 Freight out 4,500
601 Salaries Expense 104,000
602 Utilities Expense
603 Supplies Expense
604 Rent Expense
605 Uncollectible Accounts
606 Depreciation Expense
TOTALS 3,257,998 3,257,998 -