PHINMA Cagayan de Oro College

College of Management and Accountancy

NC III Bookkeeping Material

TRANSACTIONS
April 1 Daddy Lowie Pops decided to establish his own DLP Hardware Store by investing cash of P150,000.
He purchase on account merchandise worth P5,000, 2/10,n/30.
2 He bought an equipment worth P50,000.
Billed sales of P14,300, 2/10, n/30. Cost of merchandise, P7,150
5 Returned merchandise to supplier bought last April 1 worth P250.
7 Paid transportation fee upon delivery of goods to a customer, P150.
9 Paid the April 1 purchases.
11 Bought supplies worth P850.
Received cash payment from April 2 sales.
12 Paid merchandise worth P2,700.
15 Three employees are paid, P2,500 for each employee.
16 Returned damaged purchases, P350. Initially paid cash.
Withdrew P508 for his date with Ate Girlie.
17 Bought on account P1,700 worth of merchandise.
18 Paid the transportation of goods from the supplier, P220.
21 Released promissory note for a loan of P100,000 from Lady Bank of the Philippines.
24 Received cash from sales of P6,300. Cost of merchandise, P3,150.
25 Received purchases from a credit supplier worth P1,100.
29 Customer who paid in cash returned goods worth P120.
30 Sales on account worth P1,500. Cost of merchandise, P750.
Paid various expenses:
Salaries – P7,500
Utilities – P10,000
Rent – P1,000
Advertising - P500
Hired additional two beautiful employees with a monthly salary of P6,000.
Conducted yearend inventory count worth, P1,500.

CHART OF ACCOUNTS
No. Accounts No. Accounts
101 Cash 413 Sales Discounts
112 Accounts Receivable 500 Cost of Sales
120 Merchandise Inventory 510 Purchases
126 Supplies 512 Purchase Returns and Allowances
130 Equipment 513 Purchase Discounts
201 Accounts Payable 516 Freight-In
202 Notes Payable 630 Salaries
301 DL. Pops, Capital 631 Advertising
302 DL. Pops, Drawing 635 Rent Expense
401 Sales 644 Freight-Out
412 Sales Returns and Allowances 645 Utilities Expense
PERIODIC INVENTORY SYSTEM: JOURNALIZING
Date Particulars PR DR CR
April 1 Cash 101 150,000
DL. Pops, Capital 301 150,000
To record initial investment of DL. Pops

1 Purchases 510 5,000

Accounts Payable 201 5,000
To record purchases on account. 2/10, n/30

2 Equipment 130 50,000

Cash 101 50,000
To record purchase of computer equipment.

2 Accounts Receivable 112 14,300

Sales 401 14,300
To record sales on account. 2/10, n/30

5 Accounts Payable 201 250

Purchase Returns and Allowances 512 250
To record purchase return.

7 Freight-Out 644 150

Cash 101 150
To record freight on sales.

9 Accounts Payable 201 4,750

Cash 101 4,655
Purchase Discounts 513 95
To record payment on account with 2% discount.

11 Supplies 126 850

Cash 101 850
To record purchase of supplies on cash.

11 Cash 101 14,014

Sales Discounts 413 286
Accounts Receivable 14,300
To record collections from sales on account.

12 Purchases 510 2,700

Cash 101 2,700
To record purchases on cash basis.

15 Salaries 630 7,500

Cash 101 7,500
To record payment of salaries.

16 Cash 101 350

Purchase Returns and Allowances 512 350
To record purchase returns and allowances.

16 DL. Pops, Drawing 302 508

Cash 101 508
To record personal withdrawals.

17 Purchases 501 1,700

Accounts Payable 201 1,700
To record purchases on account.
 18 Freight-In 516 220
Cash 101 220
To record freight on purchases.

21 Cash 101 100,000

Notes Payable 202 100,000
To record borrowed money from LBP.

24 Cash 101 6,300

Sales 401 6,300
To record sales on cash.

25 Purchases 501 1,100

Accounts Payable 201 1,100
To record purchases on account.

29 Sales Returns and Allowances 412 120

Cash 101 120
To record refund to cash customers.

30 Accounts Receivables 112 1,500

Sales 401 1,500
To record sales on account.

30 Salaries 630 7,500

Utilities Expense 645 10,000
Rent Expense 635 1,000
Advertising 631 500
Cash 101 19,000
To record various expenses.

30 No Entry.

POSTING TO THE LEDGER

Account Title: CASH

Account #: 101
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 1 DL. Pops, Capital GJ-1 150,000 150,000
2 Equipment GJ-1 50,000 100,000
7 Freight-Out GJ-1 150 99,850
9 Accounts Payable GJ-1 4,655 95,195
11 Supplies GJ-1 850 94,345
11 Accounts Receivables GJ-1 14,014 108,359
12 Purchases GJ-1 2,700 105,659
15 Salaries GJ-1 7,500 98,159
16 Purchases Returns and Allowances GJ-1 350 98,509
16 DL. Pops, Drawing GJ-1 508 98,001
18 Freight-In GJ-1 220 97,781
21 Notes Payable GJ-1 100,000 197,781
24 Sales GJ-2 6,300 204,081
29 Sales Returns and Allowances GJ-2 120 203,961
30 Operating Expenses GJ-2 19,000 184,961

Account Title: ACCOUNTS RECEIVABLES

Account #: 112
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 2 Sales GJ-1 14,300 14,300
11 Cash, Sales Discounts GJ-1 14,300 0
30 Sales GJ-2 1,500 1,500
Account Title: MERCHANDISE INVENTORY
Account #: 120
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 30 Income Summary GJ-4 1,500 1,500

Account Title: SUPPLIES

Account #: 126
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 11 Cash GJ-1 850 850

Account Title: EQUIPMENT

Account #: 130
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 2 Cash GJ-1 50,000 50,000

Account Title: ACCOUNTS PAYABLE

Account #: 201
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 1 Purchases GJ-1 5,000 5,000

5 Purchase Returns and Allowances GJ-1 250 4,750

9 Cash, Purchase Discounts GJ-1 4,750 0

17 Purchases GJ-1 1,700 1,700

25 Purchases GJ-2 1,100 2,800

Account Title: NOTES PAYABLE

Account #: 202
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 21 Cash GJ-1 100,000 100,000

Account Title: DL. POPS, CAPITAL

Account #: 301
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 1 Cash GJ-1 150,000 150,000

30 Income Summary GJ-4 13,481 136,519

30 DL. Pops, Drawing GJ-4 508 136,011

Account Title: DL. POPS, DRAWING

Account #: 302
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 16 Cash GJ-1 508 508
30 DL. Pops, Capital GJ-4 508 0
Account Title: SALES
Account #: 401
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 2 Accounts Receivable GJ-1 14,300 14,300

24 Cash GJ-2 6,300 20,600

30 Accounts Receivables GJ-2 1,500 22,100

30 Income Summary GJ-4 22,100 0

Account Title: SALES RETURNS AND ALLOWANCES

Account #: 412
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 29 Cash GJ-2 120 120
30 Income Summary GJ-4 120 0

Account Title: SALES DISCOUNTS

Account #: 413
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 11 Accounts Receivables GJ-1 286 286
30 Income Summary GJ-4 286 0

Account Title: PURCHASES

Account #: 510
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 1 Accounts Payable GJ-1 5,000 5,000
12 Cash GJ-1 2,700 7,700
17 Accounts Payable GJ-1 1,700 9,400
25 Accounts Payable GJ-2 1,100 10,500
30 Income Summary GJ-4 10,500 0

Account Title: PURCHASES RETURNS AND ALLOWANCES

Account #: 512
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 5 Accounts Payable GJ-1 250 250
16 Cash GJ-1 350 600
30 Income Summary GJ-4 600 0

Account Title: PURCHASES DISCOUNTS

Account #: 513
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 9 Accounts Payable GJ-1 95 95

30 Income Summary GJ-4 95 0

Account Title: FREIGHT-IN

Account #: 516
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 18 Cash GJ-1 220 220
30 Income Summary GJ-4 220 0
Account Title: SALARIES
Account #: 630
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 15 Cash GJ-1 7,500 7,500
30 Cash GJ-2 7,500 15,000
30 Income Summary GJ-4 15,000 0

Account Title: ADVERTISING

Account #: 631
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 30 Cash GJ-1 500 500
30 Income Summary GJ-4 500 0

Account Title: Rent Expense

Account #: 635
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 30 Cash GJ-1 1,000 1,000
30 Income Summary GJ-4 1,000 0

Account Title: Freight-Out

Account #: 635
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

April 7 Cash GJ-1 150 150

30 Income Summary GJ-4 150 0

Account Title: UTILITIES EXPENSE

Account #: 645
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
April 30 Cash GJ-1 10,000 10,000
30 Income Summary GJ-4 10,000 0
 DLP HARDWARE STORE
TRIAL BALANCE
April 30, 2017
Acct. # Acct. Title Debit Credit
101 Cash 184,961
112 Accounts Receivables 1,500
120 Merchandise Inventory 0
126 Supplies 850
130 Equipment 50,000
201 Accounts Payable 2,800
202 Notes Payable 100,000
301 DL. Pops, Capital 150,000
302 DL. Pops, Drawing 508
401 Sales 22,100
412 Sales Returns and Allowances 120
413 Sales Discounts 286
510 Purchases 10,500
512 Purchase Returns and Allowances 600
513 Purchase Discounts 95
516 Freight-In 220
630 Salaries 15,000
631 Advertising 500
635 Rent Expense 1,000
644 Freight-Out 150
645 Utilities Expense 10,000
TOTAL 275,595 275,595

DLP HARDWARE STORE

COST OF GOODS SOLD
For the Month Ended April 30, 2017

Purchases 10,500
Add: Freight-In 220
Gross Purchases 10,720
Less: Purchase Returns and Allowances 600
Less: Purchase Discounts 95
Total Goods Available for Sale 10,025
Less: Inventory, End 1,500
COST OF SALES/COST OF GOODS SOLD 8,525

DLP HARDWARE STORE

STATEMENT OF PERFORMANCE
For the Month Ended April 30, 2017

Sales 22,100
Less: Sales Returns and Allowances 120
Less: Sales Discounts 286 406
Net Sales 21,694
Less: Cost of Sales 8,525
Gross Sales 13,169
Less: Operating Expenses
Salaries 15,000
Advertising 500
Rent Expense 1,000
Freight-Out 150
Utilities Expense 10,000
Total Operating Expense 26,650
NET LOSS (13,481)
 DLP HARDWARE STORE
STATEMENT OF CHANGES IN OWNER’S EQUITY
For the Month Ended April 30, 2017

DL. Pops, Capital 150,000

Less: DL. Pops, Drawing 508
Total 149,492
Less: Net Loss 13,481
DL. Pops, Capital-End 136,011

DLP HARDWARE STORE

STATEMENT OF FINANCIAL POSITION
As of the Month Ended April 30, 2017

ASSET
Current Asset
Cash 184,961
Accounts Receivables 1,500
Inventory 1,500
Prepaid Expenses 850
Total Current Asset 188,811
Non-Current Asset
Equipment 50,000
TOTAL ASSET 238,811

LIABILITIES AND OWNER’S EQUITY

Liabilities
Accounts Payable 2,800
Notes Payable 100,000
Total Liabilities 102,800
Owner’s Equity
DL. Pops, Capital-End 136,011
TOTAL LIABILITIES AND OE 238,811

DLP HARDWARE STORE

STATEMENT OF CASH FLOW
For the Month Ended April 30, 2017

Cash Flow from the Operating Activities

Cash Sales from Merchandising 6,300
Collection on Customers Account 14,014
Refund from Merchandise Purchased 350
Payment on Transportation (370)
Payment on Accounts (4,655)
Payment on Supplies (850)
Payment on Purchases (2,700)
Payment on Operating Expenses (26,500)
Refund on Merchandise Sold (120)
NET CASH FROM OPERATING ACTIVITIES (14,531)
Cash Flow from Investing Activities
Purchase of Computer Equipment (50,000)
NET CASH FROM INVESTING ACTIVITIES (50,000)
Cash Flow from Financing Activities
Cash Investment by the Owner 150,000
Cash Borrowed by the Owner 100,000
Cash Withdrawals by the Owner (508)
NET CASH FROM FINANCING ACTIVITIES 249,492
NET INCREASE IN CASH 184,961
Cash Balance at the Beginning of the Period 0
Cash Balance at the End of the Period 184,961
JOURNALIZING: CLOSING ENTRIES
Date Particulars PR DR CR
April 30 Sales 401 22,100
Sales Returns and Allowances 412 120
Sales Discounts 413 286
Income Summary 900 21,694
To closed sales accounts on income summary account.

Purchase Returns and Allowances 512 600

Purchase Discounts 513 95
Merchandise Inventory 120 1,500
Income Summary 900 8,525
Purchases 510 10,500
Freight-In 516 220
To close expense accounts to income summary account.

Income Summary 900 26,650

Salaries 630 15,000
Advertising 631 500
Rent Expense 635 1,000
Freight-Out 644 150
Utilities Expense 645 10,000
To close expense accounts to income summary account.

DL. Pops, Capital 301 13,481

Income Summary 900 13,481
To close income summary to capital account.

DL. Pops, Capital 301 508

DL. Pops, Drawing 302 508
To close drawing account to capital account.

DLP HARDWARE STORE

POST-CLOSING TRIAL BALANCE
April 30, 2017
Acct. # Acct. Title Debit Credit
101 Cash 184,961
112 Accounts Receivables 1,500
120 Merchandise Inventory 1,500
126 Supplies 850
130 Equipment 50,000
201 Accounts Payable 2,800
202 Notes Payable 100,000
301 DL. Pops, Capital 136,011
TOTAL 238,811 238,811

1 2 3
Nasundan Buhangin ADSCO Mang Inasal Initial Adjusting
DATE Dec. 31, Dec. 31 Dec. 31 Dec. 31 Nov. 5 Dec. 31
DEBIT Interest Exp. Accrued Accrued Rent Rent Expense Supplies Supplies
Interest Receivable Expense
Receivable
CREDIT Accrued Interest Rent Income Accrued Rent Cash Supplies
Interest Income Expense
Payable
AMOUNT 1,200 1,200 15,000 15,000 15,000 11,500