ACC 102 Bookkeeping Practice Set Periodic With Answer Sheet

Jewel Dragon invested $49,000 in his retail business JD Enterprises on November 1. Throughout the month, he purchased inventory, equipment, supplies and incurred various expenses. He also borrowed money, collected on sales, and withdrew cash from the business. By November 30, his inventory was valued at $35,000. The problem requires preparing journal entries, ledger accounts, trial balance, financial statements, and closing entries for the periodic inventory method.

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ACC 102 Bookkeeping Practice Set Periodic With Answer Sheet

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Problem 1: ( Periodic Inventory Method)

Nov. 1 Jewel Dragon, invested P49,000 in his retail business named, JD Enterprises
2 Purchase equipment for P10,000.
2 Purchase merchandise on account from Cagayan Supply Company, P20,900, terms 2/10, n/30.
3 Purchase office supplies on cash for P1,200.
4 Sold merchandise on account, P30,200, FOB Destination, terms 2/10, n/30.
5 Paid P700 freight on Nov. 4 sale.
6 Received credit from Cagayan Supply Company for merchandise returned P800.
11 Paid Cagayan Supply Company.
13 Collected from Nov. 4 customers.
14 Purchase merchandise on cash for P20,400
15 Salaries paid, P7,500.
16 Borrowed money from China Bank, signed a promissory note for P22,000.
17 Received refund from a supplier on cash purchase of Nov. 14, P1,500.
18 Purchase merchandise from Cebu Enterprise, P24,200, FOB Shipping point, terms, 2/10, n/30.
20 Paid freight on Nov. 18 purchase, P1,200.
23 Sold merchandise for P28,400.
26 Bought merchandise for cash, P22,300.
27 Paid Cebu Enterprises on the Nov, 18 purcgase, P14,000. No discount allowed on partial payment.
28 Jewel Dragon got cash from the business, P4,000
29 Made refund to cash customers for defective merchandise, P1,400
30 Sold merchandise on account, P23,700, n/30.
30 Paid the following: Advertising, P2,000; Utilities, P400; Rent, P3,500; Salaries, P7,500.
30 Inventory, November 30, P35,000.
Requirements:
1. Prepare journal entries.
2. Post journal entries to ledgers
3. Construct Trial Balance
4. Prepare Financial Statements
5. Prepare Closing Journal entries
6. Construct Post-Closing Trial Balance

CHART OF ACCOUNTS
Account Title Account No.
CASH 110 ACCOUNTS PAYABLE 210 PURCHASE DISCOUNT 530
ACCOUNTS REEIVABLE 120 NOTES PAYABLE 220 FREIGHT IN 540
MERCHANDISE INVENTORY 130 JEWEL DRAGON, CAPITAL 300 ADVERTISING EXPENSE 620
OFFICE SUPPLIES 140 JEWEL DRAGON, DRAWING 310 UTILITIES EXPENSE 630
EQUIPMENT 150 SALES 410 RENT EXPENSE 640
SALES RETURNS & ALLOWANCE415 SALARIES EXPENSE 650
SALES DISCOUNT 420 FREIGHT OUT 610
PURCHASES 510 INCOME SUMMARY 660
PURCHASE RET. & ALLOWANCES 520
CASE 2.
2.1
Fax Company borrowed P100,000 on December 1 by signing a six-month note that specifies interest at an annual
percentage rate (APR) of 12%. No interest or principal payment is due until the note matures on May 31. Fax
Company prepares financial statements at the end of each calendar month. Provide an answer for the month end
of January only.

2.2
In December 1, BOX paid its Insurance agent P2,400 for the annual insurance premium covering the twelve
month period beginning on December1. The P2,400 payment was recorded on December 1 with a debit to the
current asset Prepaid Insurance and a credit to the current asset Cash. BOX Company prepares monthly financial
statements at the end of each calendar month. Provide an answer for the month end of March only.

2.3
On December 1, SOX Company began operations. On December 4, it purchased P1,500 of supplies and recorded
the transaction with a debit to the Income statement account Supplies Expense and a credit to the current
liability Accounts Payable. SOX prepares monthly financial statements at the end of each calendar month. At the
end of the day on December 31, SOX Company estimated that P700 of the supplies were still on hand in the
supply room.

REQUIREMENT:
Answer the questions pertaining to the adjusting entries for each of the three cases. Use the answer sheet
provided for Case 2, Set 1.
CASE 2
What is the CASE 2.1 CASE 2.2 CASE 2.3

ADJUSTING ENTRY DATE

ACCOUNT TITLE DEBITED

ACCOUNT TITLE CREDITED

AMOUNT

NAME: ______________________________ Course/Year/Section: _

(Periodic Inventory Method)
GENERAL JOURNAL 1

DATE ACCOUNTS TITLE AND EXPLANATION PR DEBIT CREDIT

GENERAL JOURNAL 2

DATE ACCOUNTS TITLE AND EXPLANATION PR DEBIT CREDIT

GENERAL JOURNAL 3 (CLOSING ENTRIES)