Page 1

GENERAL JOURNAL
DATE PARTICULARS P.R. DEBIT CREDIT
2016
Oct. 1 Cash 101 Php175,000
Merchandise Inventory 120 200,000
Equipment 130 75,000
Sem Plang, Capital 301 Php450,000
To record initial investment of owner

2 Merchandise Inventory 120 150,000

Accounts Payable 201 150,000
To record purchase of merchandise on
account: 1/10, n/30

Merchandise Inventory 120 500

Cash 101 500
To record freight paid

3 Accounts Payable 201 10,000

Merchandise Inventory 120 10,000
To record returned merchandise to
a supplier

4 Cash 101 100,000

Sales 401 100,000
To record cash sales

Cost of Sales 501 75,000

Merchandise Inventory 120 75,000
To record cost of goods sold

5 Sales Returns and Allowances 402 5,000

Cash 101 5,000
To record refund to customers

Merchandise Inventory 120 3,500

Cost of Sales 501 3,500
To record cost of goods returned by customer

7 Accounts Receivable 112 77,000

Sales 401 77,000
To record sales on account: 2/10, n/30

Cost of Sales 501 55,000

Merchandise Inventory 120 55,000
To record cost of goods sold

8 Selling Expenses 506 5,000

General Expenses 513 4,000
Cash 101 9,000
To record the expenses paid

9 Sales Returns and Allowances 402 8,000

Accounts Receivable 112 8,000
To record returned merchandise from
customer

Merchandise Inventory 120 5,715

Cost of Sales 501 5,715
To record cost of goods returned by customer

11 Accounts Payable 201 140,000

Merchandise Inventory 120 1,400
Cash 101 138,600
P150,000 - 10,000 = P140,000 x 1% = 1,400
To record full payment to supplier
 Page 2
GENERAL JOURNAL
DATE PARTICULARS P.R. DEBIT CREDIT
2016
Oct. 17 Utilities Expense 512 2,000
Cash 101 2,000
To record payment for water and
electricity

18 Sem Plang, Drawing 302 5,000

Cash 101 5,000
To record owner's withdrawal

20 Cash 101 100,000

Loans Payable 250 100,000
To record loan from a bank

Delivery Truck 150 75,000

Cash 101 75,000
To record purchase of delivery truck

25 Equipment 130 15,000

Cash 101 5,000
Notes Payable 210 10,000
To record purchase of equipment with
payment and 60-day note

26 Supplies 126 2,000

Accounts Payable 201 2,000
To record purchase of supplies on account

29 Accounts Payable 201 2,000

Cash 101 2,000
To record payment to suppliers

30 Salaries Expense 505 20,000

Rent Expense 507 20,000
Cash 101 40,000
To record payment of salaries and rent
CASH ACCOUNT NO. 101 SUPPLIES ACCOUNT NO. 126
DATE PARTICULARS J.R. DEBIT CREDIT BALANCE DATE PARTICULARS J.R. DEBIT CREDIT BALANCE
10/1 investment J1 175,000 175,000 10/26 J2 2,000 2,000
10/2 freight paid J1 500 174,500 10/31 ADJ. Entry J3 500 1,500
10/4 sales J1 100,000 274,500
10/5 refund to cust J1 5,000 269,500
10/8 expenses pd J1 9,000 260,500 EQUIPMENT ACCOUNT NO. 130
10/11 paid supplier J1 138,600 121,900 DATE PARTICULARS DEBIT CREDIT DEBIT
10/17 pd utilities J2 2,000 119,900 10/1 J1 75,000 75,000
10/18 owner's withdrawJ2 5,000 114,900 10/25 J2 15,000 90,000
10/20 bank loan J2 100,000 214,900
10/20 truck purchased J2 75,000 139,900 ACCUM. DEPR'N - EQUIPMENT ACCOUNT NO. 131
10/25 eqpt purchased J2 5,000 134,900 DATE PARTICULARS DEBIT CREDIT DEBIT
10/29 paid supplies J2 2,000 132,900 10/31 ADJ. ENTRY J3 2,000 2,000
10/30 sal & rent pd J2 40,000 92,900

DELIVERY TRUCK ACCOUNT NO. 150

DATE PARTICULARS DEBIT CREDIT DEBIT
ACCOUNTS RECEIVABLE ACCOUNT NO. 112 10/20 J2 75,000 75,000
DATE PARTICULARS J.R. DEBIT CREDIT BALANCE
10/7 J1 77,000 77,000
10/8 J1 8,000 69,000 ACCOUNTS PAYABLE ACCOUNT NO. 201
DATE PARTICULARS J.R. DEBIT CREDIT BALANCE
10/2 J1 150,000 150,000
ALLOWANCE FOR BAD DEBTS ACCOUNT NO. 113 10/3 J1 10,000 140,000
DATE PARTICULARS J.R. DEBIT CREDIT BALANCE 10/11 J2 140,000 -
10/31 ADJ. ENTRY J3 9,000 9,000 10/26 J2 2,000 2,000
10/29 J2 2,000 -

MERCHANDISE INVENTORY ACCOUNT NO. 120 NOTES PAYABLE ACCOUNT NO. 210
DATE PARTICULARS J.R. DEBIT CREDIT BALANCE DATE PARTICULARS J.R. DEBIT CREDIT BALANCE
10/1 J1 200,000 200,000 10/25 J2 10,000 10,000
10/1 J1 150,000 350,000
10/1 J1 500 350,500 INTEREST PAYABLE ACCOUNT NO. 211
10/3 J1 10,000 340,500 DATE PARTICULARS J.R. DEBIT CREDIT BALANCE
10/4 J1 75,000 265,500 10/31 ADJ. ENTRY J3 1,500 1,500
10/5 J1 3,500 269,000
10/7 J1 55,000 214,000
10/9 J1 5,715 219,715 LOANS PAYABLE ACCOUNT NO. 250
10/11 J1 1400 218,315 DATE PARTICULARS J.R. DEBIT CREDIT BALANCE
10/20 J2 100,000 100,000

SEM PLANG, CAPITAL ACCOUNT NO. 301

DATE PARTICULARS J.R. DEBIT CREDIT BALANCE
10/1 J1 450,000 450,000
10/31 CLOSING ENTR J3 20,785 429,215
10/31 CLOSING ENTR J3 5,000 424,215

SEM PLANG, DRAWING ACCOUNT NO. 302

DATE PARTICULARS J.R. DEBIT CREDIT BALANCE
10/31 J2 5,000 5,000
10/31 CLOSING ENTR J3 5,000 -
SALES ACCOUNT NO. 401 SALARIES EXPENSE ACCOUNT NO. 505
DATE PARTICULARS J.R. DEBIT CREDIT BALANCE DATE PARTICULARS J.R. DEBIT CREDIT BALANCE
10/4 J1 100,000 100,000 10/30 J2 20,000 20,000
10/7 J1 77,000 177,000 10/31 CLOSING ENTRY J3 20,000 -
10/31 CLOSING ENTRY J3 177,000 0

SELLING EXPENSES ACCOUNT NO. 506

DATE PARTICULARS J.R. DEBIT CREDIT BALANCE
10/8 J1 5,000 5,000
SALES RETURNS AND ALLOWANCES ACCOUNT NO. 402 10/31 CLOSING ENTRY J3 5,000 -
DATE PARTICULARS J.R. DEBIT CREDIT BALANCE
10/5 J1 5,000 5,000 RENT EXPENSE ACCOUNT NO. 507
10/8 J1 8,000 13,000 DATE PARTICULARS J.R. DEBIT CREDIT BALANCE
10/31 CLOSING ENTRY J2 - 13,000 - 10/30 J2 20,000 20,000
10/31 CLOSING ENTRY J3 20,000 -

SALES DISCOUNTS ACCOUNT NO. 403 BAD DEBTS EXPENSE ACCOUNT NO. 508
DATE PARTICULARS J.R. DEBIT CREDIT BALANCE DATE POST DEBIT CREDIT DEBIT
10/31 ADJ. ENTRY J3 9,000 9,000
10/31 CLOSING ENTRY J3 9000 -

SUPPLIES EXPENSE ACCOUNT NO. 509

INCOME SUMMARY ACCOUNT ACCOUNT NO. 420 DATE PARTICULARS J.R. DEBIT CREDIT BALANCE
DATE PARTICULARS J.R. DEBIT CREDIT BALANCE 10/31 ADJ. ENTRY J3 500 500
10/31 CLOSING ENTRY J3 177,000 177,000 10/31 CLOSING ENTRY J3 500 -
10/31 CLOSING ENTRY J3 197,785 (20,785)
DEPRN. EXPENSE - EQUIPMENT ACCOUNT NO. 510
COST OF SALES ACCOUNT NO. 501 DATE PARTICULARS J.R. DEBIT CREDIT BALANCE
DATE PARTICULARS J.R. DEBIT CREDIT BALANCE 10/31 ADJ. ENTRY J3 2,000 2,000
10/4 J1 75,000 75,000 10/31 CLOSING ENTRY J3 2,000 -
10/5 J1 3,500 71,500
10/7 J1 55,000 126,500 UTILITIES EXPENSE ACCOUNT NO. 512
10/9 J1 5,715 120,785 DATE PARTICULARS J.R. DEBIT CREDIT BALANCE
10/31 CLOSING ENTRIES J3 120,785 - 10/17 J2 2,000 2,000
10/31 CLOSING ENTRY J3 2,000 -

GENERAL EXPENSES ACCOUNT NO. 513

DATE PARTICULARS J.R. DEBIT CREDIT BALANCE
10/8 J1 4,000 4,000
10/31 CLOSING ENTRY J3 4,000 -

INTEREST EXPENSE ACCOUNT NO. 514

DATE PARTICULARS J.R. DEBIT CREDIT BALANCE
10/31 ADJ. ENTRY J3 1,500 1,500
10/31 CLOSING ENTRY J3 1,500 -
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GENERAL JOURNAL
DATE PARTICULARS P.R. DEBIT CREDIT
2016 Adjusting entries
Oct. 31 Supplies Expense 509 500
Supplies 126 500
To radjust used up supplies

Bad Debts Expense 508 9,000

Allowance for Bad Debts 113 9,000
To record owner's withdrawal

Deprn Expense - Equipment 510 2,000

Accum. Depr'n - Equipment 131 2,000
To provide depreciation for the month

Interest Expense 514 1,500

Interest Payable 211 1,500
To accrued interest on loan
 Sem Plang Merchandising
TRIAL BALANCE
December 31, 2016

ACCOUNT
ACCOUNTs DEBIT CREDIT
CODE
101 Cash Php92,900
112 Accounts Receivable 69,000.00
113 Allowance for bad debts Php9,000
120 Merchandise Inventory 218,315
126 Supplies 1,500
130 Equipment 90,000
131 Accum. Deprn - Equipment 2,000
150 Delivery Truck 75,000
201 Accounts Payable -
210 Notes Payable 10,000
211 Interest Payable 1,500
250 Loans Payable 100,000
310 Sem Plang, Capital 450,000
302 Sem Plang, Drawing 5,000
401 Sales 177,000
402 Sales Returns and Allowances 13,000
403 Sales Discount -
501 Cost of Sales 120,785
505 Salaries Expense 20,000
506 Selling Expenses 5,000
507 Rent Expense 20,000
508 Bad Debts Expense 9,000
509 Supplies Expense 500
510 Depreciation Exp. - Equipment 2,000
512 Utilities Expense 2,000
513 General Expenses 4,000
514 Interest Expense 1,500
TOTAL Php749,500 Php749,500
 Sem Plang Merchandising
Statement of Operation
For the Month Ended October 31, 2016

Sales 177,000
Less: Sales Returns and Allowances 13,000
Sales Discount - 13,000
Net Sales 164,000
Less: Cost of Sales 120,785
Gross Profit 43,215
Less: Operating Expenses
Salaries Expense 20,000
Selling Expenses 5,000
Rent Expense 20,000
Bad Debts Expense 9,000
Supplies Expense 500
Depreciation Exp. - Equipment 2,000
Utilities Expense 2,000
General Expenses 4,000
Interest Expense 1,500 64,000
Net Income (20,785)

Sem Plang Merchandising

Statement of Changes in Equity
For the Month Ended October 31, 2016

Sem Plang, Capital, 10/1/2016 Php450,000

Add: Additional Investment 0
Net Income (20,785) (20,785)
Total Php429,215
Less: Sem Plang, Withdrawals 5,000
Sem Plang, Capital, 10/31/2016 Php424,215
 Sem Plang Merchandising
Statement of Financial Position
As of October 31, 2016

ASSETS
Current Assets
Cash Php92,900
Accounts Receivable 69,000.00
Less: Allowance for Bad Debts 9,000.00 60,000
Merchandise Inventory 218,315
Supplies 1,500
Total Current Assets Php372,715
Non-Current Assets
Equipment 90,000.00
Less: Accumulated Depreciation 2,000.00 88,000
Delivery Truck 75,000
Total Non Current Assets 163,000

TOTAL ASSETS Php535,715

LIABILITIES
Current Liabilities
Accounts Payable -
Notes Payable 10,000
Interest Payable 1,500
Total Current Liabilities 11,500
Non-Current Liabilities
Loans Payable 100,000
Total Non Current Liabilities 100,000
TOTAL LIABILITIES 111,500

OWNER'S EQUITY
Sem Plang, Capital 10/31/2016 Php424,215
TOTAL LIABILITIES AND OWNERS'S EQUITY Php535,715
 Sem Plang Merchandising
Statement of Cash Flow
For the Month Ended October 31, 2016

Cash flow from operating activities:

Cash Sales 100,000
Payments for goods/supplies purchased on account (140,600)
Payments for freight in (500)
Payments for refund to customers (5,000)
Payments to employees (20,000)
Payments for rent (20,000)
Payments for utilities (2,000)
Payments for selling expenses (5,000)
Payments for general expenses (4,000)
Payments for freight out
Net cash provided by (used) in operating activities (97,100)

Cash Flows from Investing Activities

Payments to acquire equipment (5,000)
Payments to acquire delivery truck (75,000)
Net cash provided by (used in) investing activities (80,000)

Cash Flow from financing activities:

Cash received as investment by the owner 175,000
Cash received from borrowings 100,000
Payments for withdrawals by the owner (5,000)
Net cash provided by (used in) financing activities 270,000
Net Increase (Decrease) in Cash: 92,900
Cash at the beginning of the period 0
Cash balance at the end of the period 92,900
 Page 3
GENERAL JOURNAL FOR CLOSING ENTRIES Page 1
DATE PARTICULARS P.R. DEBIT CREDIT
2016
Oct. 31 Sales 401 177,000
Income Summary 420 177,000
To close temporary accounts with credit
balances

Income Summary 420 197,785

Cost of Sales 501 120,785
Sales Returns and Allowances 402 13,000
Salaries Expense 505 20,000
Selling Expenses 506 5,000
Rent Expense 507 20,000
Bad Debts Expense 508 9,000
Supplies Expense 509 500
Depreciation Exp. - Equipment 510 2,000
Utilities Expense 512 2,000
General Expenses 513 4,000
Interest Expense 514 1,500
To close temporary accounts with
debit balances

Sem Plang, Capital 420 20,785

Income Summary 301 20,785
To close income summary to capital

Sem Plang, Capital 301 5,000

Sem Plang, Drawing 302 5,000
to close drawing to capital account
 Sem Plang Merchandising
POST-CLOSING TRIAL BALANCE
December 31, 2016

ACCOUNT
ACCOUNTs DEBIT CREDIT
CODE
101 Cash Php92,900
112 Accounts Receivable 69,000.00
113 Allowance for bad debts 9,000.00
120 Merchandise Inventory 218,315
126 Supplies 1,500
130 Equipment 90,000
131 Accum. Deprn - Equipment 2,000
150 Delivery Truck 75,000
201 Accounts Payable -
210 Notes Payable 10,000
211 Interest Payable 1,500
250 Loans Payable 100,000
310 Sem Plang, Capital 424,215
TOTAL Php546,715 Php546,715
 Page 3
GENERAL JOURNAL
DATE PARTICULARS P.R. DEBIT CREDIT
2016 Reversing entries
Nov. 01 Interest Payable 514 1,500
Interest Expense 211 1,500