SAINT COLUMBAN COLLEGE

College of Business Education

1st Semester S.Y. 2022-2023

BOKKEEPING TRAINING ASSESSMENT

Name: ________________________ Course & Year: _________ Date: ________________

PROBLEM 1 (PERIODIC INVENTORY SYSTEM)

Listed below are the March 1, 2022 account balances of the Mariano Lerin Bookstore:

Account Title Debit Credit

Cash 82,500
Accounts Receivable 480,000
Merchandise Inventory 332,500
Supplies Inventory 127,500
Prepaid Insurance 120,000
Land 1,150,000
Building 2,375,000
Accumulated Depreciation - Building 875,000
Equipment 3,775,000
Accumulated Depreciation - Equipment 1,575,000
Accounts Payable 270,000
Notes Payable 2,500,000
M. Lerin, Capital 3,222,500
TOTAL 8,442,500 8,442,500

Transactions for March 2022 follows:

March 1 - Invest additional cash, P100,000 and Equipment, P225,000.

2 - Purchased merchandise on credit from Digao Publishers, terms
2/10, n/30, P74,000.
3 - Sold merchandise on credit to Detoya Book Shop, terms 1/10,
n/30, P100,000.
5 - Sold merchandise for cash, P70,000.
6 - Purchased and received merchandise on credit from Made Easy
Bookstore, terms 2/10, n/30, P42,000.
7 - Received freight bill from Super Express from shipment received
on March 6, P570.
8 - Paid advertising for the month, P5,000.
9 - Sold merchandise on credit to Recoletos Books, terms 1/10, n/30,
P38,000.
10 - Purchased merchandise from Digao Publishers, terms 2/10, n/30,
P26,500, including freight costs of P500.
11 - Received freight bill from Super Express for sale on March 9,
P291.
12 - Paid Digao Publishers for purchase of March 2.
13 - Received payment in full for Detoya Book Shop’s purchase of
March 3.
14 - Paid Made Easy Bookstore half the amount owed on the March 6
purchase. A discount is allowed on partial payment.
15 - Returned faulty merchandise worth P3,000 to Digao Publishers for
credit against purchase of March 10.

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 16 - Purchased office supplies from Olamit Supplies for P4,780,
terms, n/10.
17 - Received payment from Recoletos Books for half of the purchase
of March 9. A discount is allowed on partial payment.
18 - Paid salaries, P25,000.
19 - Sold merchandise to Sir Ed Trading on credit, terms 2/10, n/30,
P7,800.
20 - Returned for credit several items of office supplies purchased
on March 16, P1,280.
21 - Paid Digao Publishers in full for amount owed on purchase of
March 10, less return on March 15.
22 - Issued a credit memo to Sir Ed Trading for returned merchandise
P1,800.
25 - Paid for purchase of March 16, less returns on March 20.
26 - Paid freight company for freight charges for March 7 and 11.
27 - Received payment of amount owed by Sir Ed Trading for purchase
of March 19, less credits of March 22.
28 - Paid Made Easy Bookstore for the balance on the March 6 purchase.
29 - Sold merchandise for cash, P97,300
31 - Paid the monthly interest on the 10% Note.
31 - Paid the following expenses:
Salaries --------------------------- P25,000
Light & Water Bill ---------------- 10,000
Taxes & Licenses ------------------ 5,000

Additional Information on March 31, 2022.

• Merchandise Inventory, per physical count P280,000

Requirements:

1. Journalize the transactions using a 2-column General Journal using Periodic

Inventory System.

2. Post the journal entries in the General Ledger.

3. Prepare a Trial Balance.

4. Prepare the following Financial Statements:

• Income Statement
• Statement of Financial Position (Balance Sheet)
• Statement of Changes in Owner’s Equity
• Statement of Cash Flows

5. Prepare closing entries in the General Journal.

6. Prepare Post-Closing Trial Balance

--- END ---

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 ANSWER KEY

PROBLEM 1 (PERIODIC INVENTORY SYSTEM)

GENERAL JOURNAL Page 1

DATE PARTICULARS F DEBIT CREDIT

1 March 1 Cash 100,000.00 1

2 Equipment 225,000.00 2
3 M. Lerin, Capital 325,000.00 3
4 Additional investnent by the owner. 4
5 5
6 2 Purchases 74,000.00 6
7 Accounts Payable 74,000.00 7
8 Purchase of merchandise on account. 8
9 9
10 3 Accounts Receivable 100,000.00 10
11 Sales 100,000.00 11
12 Sale of merchandise on account. 12
13 13
14 5 Cash 70,000.00 14
15 Sales 70,000.00 15
16 Sale of merchandise for cash. 16
17 17
18 6 Purchases 42,000.00 18
19 Accounts Payable 42,000.00 19
20 Purchase of merchandise on account. 20
21 21
22 7 Freight In 570.00 22
23 Accounts Payable 570.00 23
24 Freight bill on merchandise purchased. 24
25 25
26 8 Advertising Expense 5,000.00 26
27 Cash 5,000.00 27
28 Payment of advertising. 28
29 29
30 9 Accounts Receivable 38,000.00 30
31 Sales 38,000.00 31
32 Sale of merchandise on account. 32
33 33
34 10 Purchases 26,000.00 34
35 Freight In 500.00 35
36 Accounts Payable 26,500.00 36
37 Purchase of merchandise and freight on account. 37
38 38
39 11 Freight Out 291.00 39
40 Accounts Payable 291.00 40
41 Freight bill on merchandise sold. 41

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 GENERAL JOURNAL Page 2

1 March 12 Accounts Payable 74,000.00 1

2 Purchase Discount 1,480.00 2
3 Cash 72,520.00 3
4 Payment of account with discount. 4
5 5
6 13 Cash 99,000.00 6
7 Sales Discount 1,000.00 7
8 Accounts Receivable 100,000.00 8
9 Collection of sales on account with discount. 9
10 10
11 14 Accounts Payable 21,000.00 11
12 Purchase Discount 420.00 12
13 Cash 20,580.00 13
14 Payment of account with discount. 14
15 15
16 15 Accounts Payable 3,000.00 16
17 Purchase Returns and Allowances 3,000.00 17
18 Return of merchandise purchased on account. 18
19 19
20 16 Supplies Inventory 4,780.00 20
21 Accounts Payable 4,780.00 21
22 Purchase of supplies on account. 22
23 23
24 17 Cash 18,810.00 24
25 Sales Discount 190.00 25
26 Accounts Receivable 19,000.00 26
27 Collection of sales on account with discount. 27
28 28
29 18 Salaries Expense 25,000.00 29
30 Cash 25,000.00 30
31 Payment of salaries. 31
32 32
33 19 Accounts Receivable 7,800.00 33
34 Sales 7,800.00 34
35 Sale of merchandise on account. 35
36 36
37 20 Accounts Payable 1,280.00 37
38 Supplies Inventory 1,280.00 38
39 Return of supplies purchased on account. 39
40 40

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 GENERAL JOURNAL Page 3

1 March 21 Accounts Payable 23,500.00 1

2 Cash 23,500.00 2
3 Payment of account. 3
4 4
5 22 Sales Returns & Allowances 1,800.00 5
6 Accounts Receivable 1,800.00 6
7 Return of merchandise sold. 7
8 8
9 25 Accounts Payable 3,500.00 9
10 Cash 3,500.00 10
11 Payment of account. 11
12 12
13 26 Accounts Payable 861.00 13
14 Cash 861.00 14
15 Payment of account. 15
16 16
17 27 Cash 5,880.00 17
18 Sales Discount 120.00 18
19 Accounts Receivable 6,000.00 19
20 Collection of sales on account with discount. 20
21 21
22 28 Accounts Payable 21,000.00 22
23 Cash 21,000.00 23
24 Payment of account. 24
25 25
26 29 Cash 97,300.00 26
27 Sales 97,300.00 27
28 Sale of merchandise for cash. 28
29 29
30 31 Interest Expense 20,833.33 30
31 Cash 20,833.33 31
32 Payment of interest on notes payable. 32
33 33
34 31 Salaries Expense 25,000.00 34
35 Utilities Expense 10,000.00 35
36 Taxes & Licenses 5,000.00 36
37 Cash 40,000.00 37
38 Payment of various expenses 38
39 39
40 40

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 GENERAL LEDGER
Cash
DATE ITEMS F DEBIT DATE ITEMS F CREDIT

March 1 Beginning Balance 82,500.00 March 8 Payment of advertising. 5,000.00

1 Additional investnent by the owner. 100,000.00 12 Payment of account with discount. 72,520.00
5 Sale of merchandise for cash. 70,000.00 14 Payment of account with discount. 20,580.00
13 Collection of sales on account with discount. 99,000.00 17 Payment of salaries. 25,000.00
17 Collection of sales on account with discount. 18,810.00 21 Payment of account. 23,500.00
27 Collection of sales on account with discount. 5,880.00 25 Payment of account. 3,500.00
29 Sale of merchandise for cash. 97,300.00 26 Payment of account. 861.00
28 Payment of account. 21,000.00
31 Payment of interest on notes payable. 20,833.33
21 Payment of various expenses 40,000.00

TOTAL 473,490.00 TOTAL 232,794.33

Balance 240,695.67

Accounts Receivable
DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 1 Beginning Balance 480,000.00 March 13 Collection of sales on account with discount. 100,000.00
3 Sale of merchandise on account. 100,000.00 17 Collection of sales on account with discount. 19,000.00
9 Sale of merchandise on account. 38,000.00 22 Return of merchandise sold. 1,800.00
19 Sale of merchandise on account. 7,800.00 27 Collection of sales on account with discount. 6,000.00

TOTAL 625,800.00 TOTAL 126,800.00

Balance 499,000.00

Merchandise Inventory
DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 1 Beginning Balance 332,500.00 Marcj 31 To close beginning inventory 332,500.00
To establish ending inventory 280,000.00

TOTAL 612,500.00 TOTAL 332,500.00

Balance 280,000.00

Supplies Inventory
DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 1 Beginning Balance 127,500.00 March 20 Return of supplies purchased on account. 1,280.00
16 Purchase of supplies on account. 4,780.00

TOTAL 132,280.00 TOTAL 1,280.00

Balance 131,000.00

Prepaid Insurance
DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 1 Beginning Balance 120,000.00

Balance 120,000.00

Land
DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 1 Beginning Balance 1,150,000.00

Balance 1,150,000.00

Building
DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 1 Beginning Balance 2,375,000.00

Balance 2,375,000.00

Accumulated Depreciation - Building

DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 1 875,000.00

Balance 875,000.00

Equipment
DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 1 Beginning Balance 3,775,000.00
1 Additional investnent by the owner. 225,000.00

Balance 4,000,000.00

Accumulated Depreciation - Equipment

DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 1 1,575,000.00
Page | 6
Balance 1,575,000.00

Accounts Payable
DATE ITEMS F DEBIT DATE ITEMS F CREDIT
 Balance 1,575,000.00

Accounts Payable
DATE ITEMS F DEBIT DATE ITEMS F CREDIT

March 12 Payment of account with discount. 74,000.00 March 1 Beginning Balance 270,000.00
14 Payment of account with discount. 21,000.00 2 Purchase of merchandise on account. 74,000.00
15 Return of merchandise purchased on account. 3,000.00 6 Purchase of merchandise on account. 42,000.00
20 Return of supplies purchased on account. 1,280.00 7 Freight bill on merchandise purchased. 570.00
21 Payment of account. 23,500.00 10 Purchase of merchandise and freight on account. 26,500.00
25 Payment of account. 3,500.00 11 Freight bill on merchandise sold. 291.00
26 Payment of account. 861.00 16 Purchase of supplies on account. 4,780.00
28 Payment of account. 21,000.00

TOTAL 148,141.00 TOTAL 418,141.00

Balance 270,000.00

Notes Payable
DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 1 Beginning Balance 2,500,000.00

Balance 2,500,000.00

M. Lerin, Capital
DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 1 Beginning Balance 3,222,500.00
1 Additional investnent by the owner. 325,000.00
31 To close profit to capital 28,195.67

TOTAL - TOTAL 3,575,695.67

Balance 3,575,695.67

Income & Expense Summary

DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 31 To close cost of goods sold and establishe ending inventory. 190,670.00 March 31 To close sales and its related accounts. 309,990.00
31 To close expense accounts 91,124.33

TOTAL 281,794.33 TOTAL 309,990.00

Profit 28,195.67
March 31 To close profit to Capital 28,195.67
Balance 0.00

Sales
DATE ITEMS F DEBIT DATE ITEMS F CREDIT

March 3 Sale of merchandise on account. 100,000.00

5 Sale of merchandise for cash. 70,000.00
9 Sale of merchandise on account. 38,000.00
19 Sale of merchandise on account. 7,800.00
29 Sale of merchandise for cash. 97,300.00

TOTAL 313,100.00
Feb 28 To close sales 313,100.00
Balance 0.00

Sales Returns & Allowances

DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 22 Return of merchandise sold. 1,800.00

TOTAL 1,800.00
Feb 28 To close sales returns & allowances 1,800.00
Balance 0.00

Sales Discount
DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 13 Collection of sales on account with discount. 1,000.00
17 Collection of sales on account with discount. 190.00
27 Collection of sales on account with discount. 120.00

TOTAL 1,310.00
Feb 28 To close sales discount 1,310.00
Balance 0.00
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Purchases
DATE ITEMS F DEBIT DATE ITEMS F CREDIT
 Balance 0.00

Purchases
DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 2 Purchase of merchandise on account. 74,000.00
6 Purchase of merchandise on account. 42,000.00
10 Purchase of merchandise and freight on account. 26,000.00

TOTAL 142,000.00
Feb 28 To close purchases 142,000.00
Balance 0.00

Purchase Returns & Allowances

DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 15 Return of merchandise purchased on account. 3,000.00

TOTAL 3,000.00
Feb 28 To close purchase returns & allowances 3,000.00
Balance 0.00

Purchase Discount
DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 12 Payment of account with discount. 1,480.00
14 Payment of account with discount. 420.00

TOTAL 1,900.00
Feb 28 To close purchase discount 1,900.00
Balance 0.00

Freight In
DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 7 Freight bill on merchandise purchased. 570.00
10 Purchase of merchandise and freight on account. 500.00

TOTAL 1,070.00
Feb 28 To close purchases 1,070.00
Balance 0.00

Freight Out
DATE ITEMS F DEBIT DATE ITEMS F CREDIT

March 11 Freight bill on merchandise sold. 291.00

TOTAL 291.00
Feb 28 To close freight out 291.00
Balance 0.00

Advertising Expense
DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 8 Payment of advertising. 5,000.00

TOTAL 5,000.00
Feb 28 To close advertising expense 5,000.00
Balance 0.00

Interest Expense
DATE ITEMS F DEBIT DATE ITEMS F CREDIT
Marcg 31 Payment of interest on notes payable. 20,833.33

TOTAL 20,833.33
Feb 28 To close interest expense 20,833.33
Balance 0.00

Salaries Expense
DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 18 Payment of salaries. 25,000.00
31 Payment of various expenses 25,000.00

TOTAL 50,000.00
Feb 28 To close salaries expense 50,000.00
Balance 0.00

Utilities Expense
DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 31 Payment of various expenses 10,000.00

TOTAL 10,000.00
Feb 28 To close utilities expense 10,000.00
Balance 0.00

Taxes & Licenses

DATE ITEMS F DEBIT DATE ITEMS F CREDIT
March 31 Payment of various expenses 5,000.00

TOTAL 5,000.00 Page | 8

Feb 28 To close rent expense 5,000.00
Balance 0.00
 MARIANO LERIN BOOKSTORE
Trial Balance
March 31, 2018

ACCOUNT TITLES DEBIT CREDIT

Cash 240,695.67
Accounts Receivable 499,000.00
Merchandise Inventory 332,500.00
Supplies Inventory 131,000.00
Prepaid Insurance 120,000.00
Land 1,150,000.00
Building 2,375,000.00
Accumulated Depreciation - Building 875,000.00
Equipment 4,000,000.00
Accumulated Depreciation - Equipment 1,575,000.00
Accounts Payable 270,000.00
Notes Payable 2,500,000.00
M. Lerin, Capital 3,547,500.00
Sales 313,100.00
Sales Returns & Allowances 1,800.00
Sales Discount 1,310.00
Purchases 142,000.00
Purchase Returns & Allowances 3,000.00
Purchase Discount 1,900.00
Freight In 1,070.00
Freight Out 291.00
Advertising Expense 5,000.00
Interest Expense 20,833.33
Salaries Expense 50,000.00
Utilities Expense 10,000.00
Taxes & Licenses 5,000.00

TOTAL 9,085,500.00 9,085,500.00

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 MARIANO LERIN BOOKSTORE
Income Statement
For the Month Ended March 31, 2018

Sales 313,100.00
Less: Sales Returns & Allowances 1,800.00
Sales Discount 1,310.00 3,110.00
Net Sales 309,990.00

Less: Cost of Goods Sold

Merchandise Inventory, Beg. 332,500.00
Add: Purchases 142,000.00
Freight In 1,070.00
Gross Purchases 143,070.00
Less: Purchase Returns & Allowances 3,000.00
Purchase Discount 1,900.00 4,900.00 138,170.00
Total Goods Available for Sale 470,670.00
Less: Merchandise Inventory, End 280,000.00 190,670.00

Gross Profit 119,320.00

Less: Operating Expenses

Freight Out 291.00
Advertising Expense 5,000.00
Interest Expense 20,833.33
Salaries Expense 50,000.00
Utilities Expense 10,000.00
Taxes & Licenses 5,000.00 91,124.33

Net Income 28,195.67

MARIANO LERIN BOOKSTORE

Statement of Changes in Owner's Equity
For the Month Ended March 31, 2018

M. Lerin, Capital, Beg. 3,222,500.00

Add: Additional Investment 325,000.00
Net Income 28,195.67 353,195.67
Total 3,575,695.67
Less: Withdrawal -
M. Lerin, Capital, End 3,575,695.67

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 MARIANO LERIN BOOKSTORE
Statement of Financial Position
As of March 31, 2018

ASSETS

Current Assets:
Cash 240,695.67
Accounts Receivable 499,000.00
Merchandise Inventory 280,000.00
Supplies Inventory 131,000.00
Prepaid Insurance 120,000.00
Total Current Assets 1,270,695.67

Noncurrent Assets:
Land 1,150,000.00
Building 2,375,000.00
Accumulated Depreciation - Building -875,000.00 1,500,000.00
Equipment 4,000,000.00
Accumulated Depreciation - Equipment -1,575,000.00 2,425,000.00
Total Noncurrent Assets 5,075,000.00

TOTAL ASSETS 6,345,695.67

LIABILITIES & OWNER'S EQUITY

Liabilities:
Accounts Payable 270,000.00
Notes Payable 2,500,000.00
Total Liabilities 2,770,000.00

Owner's Equity:
M. Lerin, Capital 3,575,695.67

TOTAL LIABILITIES & OWNER'S EQUITY 6,345,695.67

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 MARIANO LERIN BOOKSTORE
Statement of Cash Flows
For the Month Ended March 31, 2018

Operating Activities:
Cash Sales of Merchandise 167,300.00
Collection from Customers 123,690.00
Payment of account. -141,961.00
Payment of advertising. -5,000.00
Payment of salaries. -50,000.00
Payment of utilities -10,000.00
Payment of taxes & licenses -5,000.00
Payment of interest -20,833.33
Net Cash Provided by (Used in) Operating Activities 58,195.67

Investing Activities:
Net Cash Provided by (Used in) Investing Activities 0.00

Financing Activities:
Additional investnent by the owner. 100,000.00
Net Cash Provided by (Used in) Financing Activities 100,000.00

Net Increase (Decrease) in Cash 158,195.67

Add: Cash Balance, Beginning 82,500.00
Cash Balance, End 240,695.67

METRO PAGADIAN DISTRIBUTORS

Post-closing Trial Balance
March 31, 2018

ACCOUNT TITLES DEBIT CREDIT

Cash 240,695.67
Accounts Receivable 499,000.00
Merchandise Inventory 280,000.00
Supplies Inventory 131,000.00
Prepaid Insurance 120,000.00
Land 1,150,000.00
Building 2,375,000.00
Accumulated Depreciation - Building 875,000.00
Equipment 4,000,000.00
Accumulated Depreciation - Equipment 1,575,000.00
Accounts Payable 270,000.00
Notes Payable 2,500,000.00
M. Lerin, Capital 3,575,695.67

TOTAL 8,795,695.67 Page | 12

8,795,695.67
 GENERAL JOURNAL

DATE PARTICULARS F DEBIT CREDIT

1 Closing Entries: 1
2 Jan 31 Sales 313,100.00 2
3 Sales Returns & Allowances 1,800.00 3
4 Sales Discount 1,310.00 4
5 Income & Expense Summary 309,990.00 5
6 To close sales and its related accounts. 6
7 7
8 Merchandise Inventory, End 280,000.00 8
9 Purchase Returns & Allowances 3,000.00 9
10 Purchase Discount 1,900.00 10
11 Income & Expense Summary 190,670.00 11
12 Merchandise Inventory, Beg 332,500.00 12
13 Purchases 142,000.00 13
14 Freight In 1,070.00 14
15 To close cost of goods sold and establishe ending inventory. 15
16 16
17 Income & Expense Summary 91,124.33 17
18 Freight Out 291.00 18
19 Advertising Expense 5,000.00 19
20 Interest Expense 20,833.33 20
21 Salaries Expense 50,000.00 21
22 Utilities Expense 10,000.00 22
23 Taxes & Licenses 5,000.00 23
24 To close expense accounts 24
25 25
26 Income & Expense Summary 28,195.67 26
27 M. Lerin, Capital 28,195.67 27
28 To close profit to Capital. 28
29 29

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