PROBLEM #22

GENERAL JOURNAL Page 1 ADJUSTIN

Date Accout Titles and Explanations Ref. No. Debit Credit DATE
Feb. 1 Cash 110 ₱ 113,000 Feb. 28, 2022
Accounts Receivable 120 ₱ 113,000
collection of cash from customer
2 Accounts Payable 210 64,000
Cash 530 62,080 Feb, 28, 2022
Purchases Discounts 110 1,920
payment of accounts due with 3% discount
4 Purchases 510 170,000
Cash 210 170,000 Feb. 28, 2022
purchased merchandise; terms FOB shipping point; 3/10, n/30
5 Accounts Receivable 120 270,000
Sales 410 270,000
sales on account; terms FOB shipping point; 2/10, n/30 Feb. 28, 2022
7 Advertising Expense 670 6,000
Cash 110 6,000
paid advertising for the month of February
7 Cash 110 250,000 Feb. 28, 2022
Sales 410 250,000
sold merchandise in cash
8 Accounts Payable 210 170,000
Cash 530 164,900 Feb. 28, 2022
Purchase Discounts 110 5,100
paid amount due from Feb. 4 transaction
9 Transportation In 540 4,000
Cash 110 4,000
payment for freight cost

10 Sales Returns and Allowances

420
70,000 CLOSING E
Accounts Receivable 210 70,000 Feb. 28, 2022
received returns from Gonzales Inc.
12 Cash 110 196,000
Sales Discount 430 4,000
Accounts Receivable 120 200,000
received payment from Gonzales Inc. less returns and discounts
14 Interest Expense 680 26,000
Cash 110 26,000 Feb. 28, 2022
payment for interest on mortgage payable
15 Salaries Expense 610 51,000
Cash 110 51,000
paid salaries
16 Accounts Receivable 120 392,000
Sales 410 392,000
sold merchandise on account to Ronzales Corp.; terms FOB destination; 2/10, n/30
18 Transportation Out 660 4,000
Cash 110 4,000
paid freight cost on the sale of Feb. 16
19 Supplies 140 21,000
Cash 110 21,000
acquired supplies in cash
20 Purchases 510 125,000
Accounts Payable 210 125,000
purchased merchandise on account from Lozada Imports
22 Miscellaneous Expense 690 7,000 Feb. 28, 2022
Cash 110 7,000
paid miscellaneous expense
23 Cash 110 384,160
Sales Discount 430 7,840 Feb. 28, 2022
Accounts Receivable 120 392,000
received payment from Ronzales Corp. less discounts
24 Purchases 510 373,000
Accounts Payable 210 373,000
purchased merchandise on account from Agustin Enterprises; terms FOB shipping point; 3/10, n/30
24 Transportation In 540 9,000
Cash 110 9,000
payment for freight cost to La Paz Express
25 Accounts Receivable 120 420,000
Sales 410 420,000
sold merchandise on account to Ronzales Corp.; terms FOB shipping point; 2/10, n/30
26 Sales Returns And Allowances 420 71,000
Accounts Receivable 120 71,000
received returns from Ronzales Inc.
28 Buenaflor, Withdrawals 320 400,000
Cash 110 400,000
Buenaflor drawings to the business
28 Accounts Payable 210 25,000
Purchases Returns and Allowances 520 25,000
returned merchandise purchased from Agustin on June 24
ADJUSTING ENTRIES
ACCOUNT TITLES AND EXPLANATIONS P.R. DEBIT CREDIT
Salaries Expense 610 51, 000
Salaries Payable 220 51, 000
Accrued salaries

Insurance Expense 630 2, 000

Prepaid Insurance 150 2, 000
Expired portion of prepaid insurance

Depreciation Expense - Building 640 9, 000

Accumulated Depreciation - Building 175 9, 000
Depreciation of building for the month

Depreciation Expense - Equipment 650 12, 000

Accumulated Depreciation - Equipment 185 12, 000
Depreciation of equipment for the month

Supplies Expense 620 58, 000

Supplies 140 58, 000
Used supplies at month-end

Merchandise Inventory, 2/28/22 130 397,000

Income Summary 330 397,000
recording merchandise inventory to income summary

CLOSING ENTRY
Merchandise Inventory, end 130 397, 000
Sales 410 1, 332, 000
Purchase Returns and Allowances 520 25, 000
Purchase Discounts 530 7, 020
Income Summary 330 1, 761, 020
To close temporary accounts with credit balances

Income Summary 330 1, 472, 840

Merchandise Inventory, beg. 130 413, 000
Sales Returns and Allowances 420 141, 000
Sales Discounts 430 11, 840
Purchases 510 668, 000
Transportation In 540 13, 000
Salaries Expense 610 102, 000
Supplies Expense 620 58, 000
Insurance Expense 630 2, 000
Depreciation Expense - Building 640 9, 000
Depreciation Expense - Equipment 650 12, 000
Transportation Out 660 4, 000
Advertising Expense 670 6, 000
Interest Expense 680 26, 000
Miscellaneous Expense 690 7, 000
To close temporary account with debit balances

Incomes Summary 330 288, 180

Buenaflor, Capital 310 288, 180
To close income summary account

Buenaflor, Capital 310 400, 000

Buenaflor, Withdrawals 320 4, 000
To close withdrawal account
Problem #12
Comprehensive Problem

LEDGER
Account: CASH Account: CASH Account: CASAccount: CASHAccount: CASHAccount No. 110
DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Feb. 1, 2022 33,000 33,000
Feb. 1, 2022 113,000.00 146,000
Feb. 2, 2022 62,080 83,920
Feb. 7, 2022 6,000 77,920
Feb. 7, 2022 250,000 327,920
Feb. 8, 2022 164,900 163,020
Feb. 9, 2022 4,000 159,020
Feb. 12, 2022 196,000 355,020
Feb. 14, 2022 26,000 329,020
Feb. 15, 2022 51,000 278,020
Feb. 18, 2022 4,000 274,020
Feb. 19, 2022 21,000 253,020
Feb. 22, 2022 7,000 246,020
Feb. 23, 2022 384,160 630,180

Feb. 24, 2022 9,000 621,180

Feb. 28, 2022 400,000 221,180

Account: Accounts Receivable Account: Accounts ReceiAccount: Acc Account: Acco Account: AccouAccount No. 120
DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Feb. 1, 2022 192,000 192,000
Feb. 1, 2022 113,000 79,000
Feb. 5, 2022 270,000 349,000
Feb. 10, 2022 70,000 279,000
Feb. 12, 2022 200,000 79,000
Feb. 16, 2022 392,000 471,000
Feb. 23, 2022 392,000 79,000
Feb. 25, 2022 420,000 499,000
Feb. 26, 2022 71,000 428,000

Account: Merchandise Inventory Account No. 130

DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Feb. 1, 2022 413,000 413,000

Account: Supplies Account: Supplies Account: SuppAccount: SupplAccount: SuppliAccount No. 140
DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Feb. 1, 2022 51,000 51,000
Feb. 19, 2022 21,000 72,000
Feb. 28, 2022 adjusting entry 58,000 14,000

Account: Prepaid Insurance Account No. 150

DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Feb. 1, 2022 48,000 48,000
Feb. 28, 2022 adjusting entry 2,000 46,000

Account: Land Account No. 160

DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Feb. 1, 2022 460,000 460,000

Account: Building Account No. 170

DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Feb. 1, 2022 1,750,000 1,750,000

Account: Accumulated Depreciation-Building Account No. 175

DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Feb. 1, 2022 350,000 350,000
Feb. 28, 2022 adjusting entry 9,000 359,000

Account: Equipment Account No. 180

DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Feb. 1, 2022 2,310,000 2,310,000

Account: Accumulated Depreciation-Equipment Account No. 185

DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Feb. 1, 2022 630,000 630,000
Feb. 28, 2022 adjusting entry 12,000 642,000

Account: Accounts Payable Account: Accounts PayabAccount: Acc Account: Acco Account: AccouAccount No. 210
DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Feb. 1, 2022 beginning balance 108,000 108,000
Feb. 2, 2022 payment of purchases 64,000 44,000
Feb. 4, 2022 purchases on account 170,000 214,000
Feb. 8, 2022 payment of purchases 170,000 44,000
Feb. 20, 2022 purchases on account 125,000 169,000
Feb. 24, 2022 purchases on account 373,000 542,000
Feb. 28, 2022 returns of purchases 25,000 517,000
Account: Salaries Payable Account No. 220 Account: Purchases Returns and Allowances Account: Purchases ReturAccoun

DATE EXPLANATION J.R. DEBIT CREDIT BALANCE DATE EXPLANATION J.R.

Feb. 1, 2022 0 Feb. 1, 2022
Feb. 28, 2022 adjusting entry 51,000 51,000 Feb. 28, 2022 returned defective goods

Account: Mortgage Payable Account No. 230 Account: Purchases Discounts Account: Purchases DiscoAccoun
DATE EXPLANATION J.R. DEBIT CREDIT BALANCE DATE EXPLANATION J.R.
Feb. 1, 2022 beginning balance 2,600,000 2,600,000 Feb. 1, 2022
Feb. 2, 2022 Payment within the discount period
Feb. 8, 2022 Payment within the discount period

Account: Buenaflor, Capital Account No.

DATE EXPLANATION J.R. DEBIT CREDIT BALANCE Account: Transportation In Account: Transportation IAccount
Feb. 1, 2022 1,569,000 1,569,000 DATE EXPLANATION J.R.
Feb. 1, 2022 beginning balance
Feb. 9, 2022 freight cost
Feb. 25, 2022 freight cost

Account: Buenaflor, Withdrawals Account: Buenaflor, Wit Account: BuenAccount: Buenaflor,Account: Buenaflor, Account No. 320
DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Feb. 1, 2022 0
Feb. 28, 2022 owner's withdrawal 400,000 400,000
Account: Salaries Expense Account: Salaries ExpenseAccount
DATE EXPLANATION J.R.
Feb. 1, 2022
Feb. 15, 2022
Account: Income Summary Account No. 330 Current period change
DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
0

Account: Supplies Expense

DATE EXPLANATION J.R.
Feb. 1, 2022
Account: Sales Account: Sales Account: SaleAccount: Sales Account: Sales Account No. 410 Feb. 28, 2022 adjusting entry
DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Feb. 1, 2022 beginning balance 0
Feb. 5, 2022 merchandise sold on account 270,000 270,000
Feb. 7, 2022 cash sales 250,000 520,000
Feb. 16, 2022 merchandise sold on account 392,000 912,000
Feb. 25, 2022 merchandise sold on account 420,000 1,332,000 Account: Insurance Expense
DATE EXPLANATION J.R.
Feb. 1, 2022
Account: Sales Returns and Allowances Account: Sales Returns Account: SaleAccount: Sales RetuAccount: Sales Retu Account No. 420 Feb. 28, 2022 adjusting entry
DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Feb. 1, 2022 0
Feb. 10, 2022 received returned defective goods 70,000 70,000
Feb. 26, 2022 received returned defective goods 71,000 141,000

Account: Depreciation Expense-Building

DATE EXPLANATION J.R.
Account: Sales Discounts Account: Sales DiscountsAccount: SaleAccount: Sales Disc Account: Sales DiscoAccount No. 430 Feb. 1, 2022
DATE EXPLANATION J.R. DEBIT CREDIT BALANCE Feb. 28, 2022 adjusting entry
Feb. 1, 2022 0
Feb. 12, 2022 collection within the discount period 4,000 4,000
Feb. 23, 2022 collection within the discount period 7,840 11,840

Account: Purchases Column1 Column2 Column3 Column4 Account No. 510

DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Feb. 1, 2022 0 Account: Depreciation Expense-Equipment
Feb. 4, 2022 credit purchases 170,000 170,000 DATE EXPLANATION J.R.
Feb. 20, 2022 credit purchases 125,000 295,000 Feb. 1, 2022
Feb. 24, 2022 credit purchases 373,000 668,000 Feb. 28, 2022 adjusting entry
 Comprehensive P Comprehensive Probl Account No. 520 Account: Transportation Out Account: TransportationAccount: TranAccount: TransportatiAccount: Transportati Account No. 660

DEBIT CREDIT BALANCE DATE EXPLANATION J.R. DEBIT CREDIT BALANCE

0 Feb. 1, 2022 0
25,000 25,000 Feb. 18, 2022 freight charges 4,000 4,000

77,920 77,920 Account No. 530 Account: Advertising Expense Account No. 670
DEBIT CREDIT BALANCE DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
0 Feb. 1, 2022 0
the discount period 1,920 1,920 Feb. 7, 2022 paid advertising 6,000 6,000
the discount period 5,100 7,020

Account: Interest Expense Account No. 680

Account No. 680 Account No. 680 Account No. 540 DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
DEBIT CREDIT BALANCE Feb. 1, 2022 0
0 Feb. 14, 2022 26,000 26,000
4,000 4,000
9,000 13,000

Account: Miscellaneous Expense Account No. 690

DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Feb. 1, 2022 0
0 0 Account No. 610 Feb. 22, 2022 7,000 7,000
DEBIT CREDIT BALANCE
0
51,000 51,000
51,000 102,000

Account No. 620

DEBIT CREDIT BALANCE
0
58,000 58,000

Account No. 630

DEBIT CREDIT BALANCE
0
2,000 2,000

Account No. 640

DEBIT CREDIT BALANCE
0
9,000 9,000

Account No. 650

DEBIT CREDIT BALANCE
0
12,000 s
 Teresita Buenaflor Shoes
Worksheet
For the Month Ended Feb. 28, 2022

Account Titles Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash 221, 180 221, 180 221, 180
Accounts Receivable 428, 000 428, 000 428, 000
Merchandise Inventory 413, 000 413, 000 413, 000 397, 000 397, 000
Supplies 72, 000 58, 000 14, 000 14, 000
Prepaid Insurance 48, 000 2, 000 46, 000 46, 000
Land 460, 000 460, 000 460, 000
Building 1, 750, 000 1, 750, 000 1, 750, 000
Accumulated Depreciation - Building 350, 000 9, 000 359, 000 359, 000
Equipment 2, 310, 000 2, 310, 000 2, 310, 000
Accumulated Depreciation - Equipment 630, 000 12, 000 642, 000 642, 000
Accounts Payable 517, 000 517, 000 517, 000
Mortgage Payable 2, 600, 000 2, 600, 000 2, 600, 000
Buenaflor, Capital 1, 569, 000 1, 569, 000 1, 569, 000
Buenaflor, Withdrawals 400, 000 400, 000 400, 000
Sales 1, 332, 000 1, 332, 000 1, 332, 000
Sales Returns 141, 000 141, 000 141, 000
Sales Discounts 11, 840 11, 840 11, 840
Purchases 668, 000 668, 000 668, 000
Prurchase Returns 25, 000 25, 000 25, 000
Purchase Discounts 7, 020 7, 020 7, 020
Transportation In 13, 000 13, 000 13, 000
Salaries Expense 51, 000 51, 000 102, 000 102, 000
Transportation Out 4, 000 4, 000 4, 000
Advertising Expense 6, 000 6, 000 6, 000
Interest Expense 26, 000 26, 000 26, 000
Miscellaneous Expense 7, 000 7, 000 7, 000
Totals P 7, 030, 020 P 7, 030, 020
Adjustments:
Salaries Payable 51, 000 51, 000 51, 000
Insurance Expense 2, 000 2, 000 2, 000
Depreciation Expense - Building 9, 000 9, 000 9, 000
Depreciation Expense - Equipment 12, 000 12, 000 12, 000
Supplies Expense 58, 000 58, 000 58, 000
Totals P 132, 000 P 132, 000 P 7, 102, 020 P 7, 102, 020 P 1, 472, 840 P 1, 761, 020 P 6, 026, 180 P 5, 738, 000
Profits P288, 180 288, 180
P 1, 761, 020 P 1, 761, 020 P 6, 026, 180 P 6, 026, 180
 Teresita Buenaflor Shoes
Income Statement
For the month ended February 28,2022

Net Sales
Gross Sales ₱ 1,332,000.00
Less: Sales Returns and Allowances ₱ 141,000
Sales Discount 11,840 152,840
Net Sales ₱ 1,179,160
Cost of Sales
Merchandise Inventory, 2/1/2022 ₱ 413,000.00
Purchases ₱ 668,000.00
Less: Purchase Return and Allowances ₱ 25,000.00
Purchase Discount 7,020 32,020
Net Purchases 635,980
Transportation In 13,000
Net Cost of Purchases 648,980
Goods Available for Sale ₱ 1,061,980.00
Less: Merchandise Inventory, 2/28/2022 397,000
Cost of Sales 664,980
Gross Profit ₱ 514,180
Operating Expense
Selling Expense:
Transportation Out ₱ 4,000
Advertising Expense 6,000
Total Selling Selling Expense ₱ 10,000
Administrative Expense
Salaries Expense ₱ 102,000
Supplies Expense 58,000
Insurance Expense 2,000
Depreciation Expense-Building 9,000
Depreciation Expense-Equipment 12,000
Total Administrative Expense 183,000
Other Operating Expenses
Interest Expense ₱ 26,000
Miscellaneoud Expense 7,000
Total Other Operating Expenses 33,000 Finance Cost
Operating Profit 226,000
NET INCOME ₱ 288,180
 Teresita Beunaflor Shoes
Statement of Changes in Equity
For the month ended February 28,2022

Buenaflor, Owner's Equity, 2/1/2022 ₱ 1,569,000 ASSETS

Add: Profit 288,180
Total ₱ 1,857,180
Less: Withdrawals 400,000
Buenaflor, Owner's Equity, 2/28/2022 ₱ 1,457,180

Total Assets

Liabilities

Owner's Equ

interest expense
Total Owner

Total Liabiliti
 Teresita Beunaflor Shoes
Balance Sheet
For the month ended February 28,2022

Current Assets
Cash ₱ 221,180
Accounts Receivable 428,000
Merchandise Inventory 397,000
Supplies 14,000
Prepaid Insurance 46,000
Total Current Assets ₱ 1,106,180

Non-current Assets
Land ₱ 460,000
Building ₱ 1,750,000
Less: Accumulated Depreciation-Building 359,000 1,391,000
Equipment 2,310,000
Less: Accumulated Depreciation-Equipment 642,000 1,668,000
Total Non-current Assets ₱ 3,519,000

Total Assets ₱ 4,625,180

Current Liabilities
Accounts Payable ₱ 517,000
Salaries Payable 51,000
Total Current Liabilities ₱ 568,000

Non-current Liabilities
Mortgage Payable 2,600,000

Total Liabilities ₱ 3,168,000

Owner's Equity
Buenaflor, Capital, 2/1/2022 1,569,000
Less: Buenaflor, Withdrawals 400,000
Add: Net Income 288,180
Total Owner's Equity ₱ 1,457,180

Total Liabilities and Owner's Equity ₱ 4,625,180