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    Capter 9, Problem Solving

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    John Joseph
    The document contains multiple problems summarizing income statements and inventory accounts for various retailers. Problem 11 provides journal entries on December 31, 2014 to close various temporary accounts at year-end for a retailer named Calingasan. The entries close inventory, sales, purchase, expense and capital accounts, transferring balances to an income summary account which is then closed by transferring the balance to the owner's capital account.

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    Capter 9, Problem Solving

    Uploaded by

    John Joseph
    2K views3 pages
    The document contains multiple problems summarizing income statements and inventory accounts for various retailers. Problem 11 provides journal entries on December 31, 2014 to close various temporary accounts at year-end for a retailer named Calingasan. The entries close inventory, sales, purchase, expense and capital accounts, transferring balances to an income summary account which is then closed by transferring the balance to the owner's capital account.

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    Accounting

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    The document contains multiple problems summarizing income statements and inventory accounts for various retailers. Problem 11 provides journal entries on December 31, 2014 to close various temporary accounts at year-end for a retailer named Calingasan. The entries close inventory, sales, purchase, expense and capital accounts, transferring balances to an income summary account which is then closed by transferring the balance to the owner's capital account.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    2K views3 pages

    Capter 9, Problem Solving

    Uploaded by

    John Joseph
    The document contains multiple problems summarizing income statements and inventory accounts for various retailers. Problem 11 provides journal entries on December 31, 2014 to close various temporary accounts at year-end for a retailer named Calingasan. The entries close inventory, sales, purchase, expense and capital accounts, transferring balances to an income summary account which is then closed by transferring the balance to the owner's capital account.

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    You are on page 1of 3

    Problem # 1

    2014 Account Titles and Explanation PR Dr. Cr.


    Dec. 31 Income Summary P300,000
    Merchandise Inventory, Beginning P300,000
    To remove the beginning inventory

    Dec. 31 Merchandise Inventory, End P230,000


    Income Summary P230,000
    To remove ending inventory

    Problem # 2

    Number 1

    2014 Account Titles and Explanation PR Dr. Cr.


    Dec. 31 Income Summary P300,000
    Merchandise Inventory, Beginning P300,000
    To remove the beginning inventory

    Dec. 31 Merchandise Inventory, End P230,000


    Income Summary P230,000
    To remove ending inventory
    Number 2
    Charito Guillermo Retailers
    Partial Income Statement
    For the Year-Ended December 31, 2014

    Net Sales
    Gross Sales P190,000
    Less: Sales Returns and Allowances P20,000 P20,000
    Net Sales P170,000
    Cost of Sales
    Merchandise Inventory, Beg. 1/1/2014 P80,000
    Purchases P60,000
    Less: Purchase Discount P3,000 P3,000
    Net Purchases P57,000
    Transportation In P1,000
    Net Cost of Purchases P58,000
    Goods Available for Sale P138,000
    Less: Merchandise Inventory, 12/31/2014 P74,000
    Cost of Sales P64,000
    Gross Profit P106,000
    Problem # 10
    Ramon Woo Milk Product
    Income Statement
    For the Year-Ended December 31, 2014
    Net Sales
    Gross Sales P731,000
    Less: Sales Returns and Allowances P18,030
    Sales Discounts P10,400 P28,430
    Net Sales P702,570
    Cost of Sales
    Inventory, Beg. 1/1/2014 P69,350
    Purchases P364,000
    Less: Purchase Returns and Allowances P3,400
    Purchase Discount P1,990 P5,390
    Net Purchases P358,610
    Net Cost of Purchases P358,610
    Goods Available for Sale P427,960
    Less: Merchandise Inventory, 6/30/2014 P65,520
    Cost of Sales P362,440
    Gross Profit P340,130
    Operating Expenses
    Selling Expenses P132,900
    Administrative Expenses
    General Expenses P116,700
    Interest Expense P5,400
    Total Administrative Expense P122,100
    Total Operating Expenses P255,000
    Operating Profit P85,130

    Cost of Goods Sold


    Inventory, Beg.
    1/1/2014 P69,350
    Purchases P364,000
    Less: Purchase Returns and
    Allowances P3,400
    Purchase
    Discount P1,990 P5,390
    Net
    Purchases P358,610
    Net Cost of Purchases P358,610
    Goods Available for
    Sale P427,960
    Less: Merchandise Inventory,
    6/30/2014 P65,520
    Cost of
    Goods Sold P362,440

    Problem # 11

    Date Account Titles and Explanation PR Dr. Cr.


    2014
    Dec. 31 Merchandise Inventory, Ending P118,000
    Sales P1,000,000
    Purchase Returns and Allowances P6,000
    Purchase Discount P13,200
    Income Summary P1,137,200
    To close temporary accounts with credit balances

    Dec. 31 Income Summary P1,066,000


    Merchandise Inventory, Beginning P128,000
    Purchases P660,000
    Sales Returns and Allowances P3,000
    Sales Discount P9,000
    Transportation In P16,000
    Operating Expenses P250,000
    To close temporary accounts with debit balances

    Dec. 31 Income Summary P71,200


    Calingasan, Capital P71,200
    To close Income Summary Account

    Dec. 31 Calingasan, Capital P24,000


    Calingasan, Withdrawal P24,000
    To close Calingasan, Withdrawal account

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