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Sample Transactions 1 in Merchandising Business

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50 views

Sample Transactions 1 in Merchandising Business

Uploaded by

Aoi Rain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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Sample Transactions in Merchandising Business

Periodic Inventory System


The accounts of Jim Boy Trading Co. have the following balances on January 01, 2023:

Jim Boy Trading Co.


Trial Balance
January 01, 2023

Accounts Dr. Cr.


Cash 50,000.00
Accounts Receivable 120,000.00
Inventory 30,000.00
Equipment 200,000.00
Accumulated Depreciation 80,000.00
Accounts Payable 20,000.00
Jim Boy, Capital 300,000.00
Totals 400,000.00 400,000.00

The following were the transactions during the year:


1. Sales on cash basis amounted to 80,000.
2. Sales on account amounted to 130,000.
3. Purchases on account amounted to 70,000.
4. Freight paid on purchases amounted to 5,000.
5. Purchase returns amounted to 10,000.
6. Salaries paid amounted to 60,000.
7. Utility bills paid amounted to 20,000.
8. Collections of accounts receivable amounted to 200,000.
9. Payments of accounts payable amounted to 60,000.
10. The owner’s drawings during the year totaled 80,000.
Additional information:
a. The annual depreciation on the equipment is 20,000.
b. The physical count of inventory on December 31, 2023 revealed a 60,000 balance of goods on hand.
Requirement:
Complete the accounting Cycle
Perpetual Inventory System
You opened a souvenir store called “My Souvenir” on November 01, 2023. The following were the transactions
during the period:
November
1 Provided 50,000 cash as initial investment to the business.
1 Acquired equipment for 36,000 cash. The equipment has a useful life of 4 years.
1 Paid a one-year insurance premium of 12,000.
12 Purchased inventory costing 15,000 for cash.
14 Sold goods for 15,000 cash. The Cost of sales is 2,000.

December
1 Sold goods with sale price of 12,000 in exchange for a 12,000, 10%, one-year note receivable.
Principal and interest are due at maturity. The cost of sales is 1,500.
5 Purchased inventory for 2,000 on account.
26 Sold goods for 17,000 on account. The cost of sales is 3,000.
27 Paid 1,000 accounts payable.
29 Collected 10,000 accounts receivable.
Requirement:
Complete the accounting cycle

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