FUNDAMENTALS OF ACCOUNTING, BUSINESS AND MANAGEMENT II

Name: Charles Erwin G. Pagpaguitan

Month: November

1. Echaviz invested 10,000 cash

3. Purchased 80 lamps on account. Tems: 2/10, 11/30
4. Paid freight cost of 60 on November 3 purchases
5. Sold 22 lamps on account. Term: 3/10, 11/30 and paid freight cost of 27.

9. Returned 10 lamps purchased on nov. 3 and paid the amount due on the lamps retained in stocks.

10. Customers returned 3 lamps sold on November 5.

13. Purchased 20 lamps on credit. Terms: 2/10, 11/30

14. Collected payments from customers on nov 5 sales.

19. Sold 39 lamps for cash.

20. Made refund to customer for 4 lamps sold.

21. Echaviz paid his personal expense 3,000.

22. Paid the supplies the amount owed for nov. 13 purchases.

25. Bought computer on nov. 3,000 of issued promisory note payable for 3 years.

26. Paid salaries 5,000 and 3,000 for advertisement.

30. ending inventory, 36 lamps in stock.

Purchase Price of lamps: 40

Selling Price: 60

GENERAL JOURNAL

Page Number: GJ 1

Date Description Reference Debit Credit

Nov. 1 Cash 10,000
Echaviz, Capital 10,000
(To record, initial investment.)
Nov. 3 Purchases 3,200
Accounts Payable 3,200
(To record, purchase on account.)
Nov.4 Freight in 60
Cash 60
(To record, freight in.)
Nov. 5 Accounts Receivable 1,320
Sales 1,320
Freight-out 27
Cash 27
(To record, sales and freight in.)
Nov.9 Accounts Payable 400
Purchase Returns and allowances 400
Accounts Payable 2,800
Purchase Discounts 56
Cash 2,744
(To record, refund and payment.)
 Nov.10 Sales Returns and Allowances 180
Accounts Receivable 180
(To record, refund.)
Nov.13 Purchases 800
Accounts Payable 800
(To record, purchase.)
Nov.14 Cash 1,105.8
Sales Discounts 34.2
Accounts Receivable 1,140
(To record, collection of payment.)
Nov. 19 Cash 2,340
Sales 2,340
(To record, sales.)
Nov.20 Sales Returns and Allowances 240
Cash 240
(To record, refund.)
Nov. 21 Echaviz, drawing 3,000
Cash 3,000
(To record, initial withdrawal.)
Nov. 22 Accounts Payable 800
Purchase Discount 16
Cash 784
(To record, payment of debt.)
Nov.25 Equipment 3,000
Notes Payable 3,000
(To record, purchase of equipment.)
Nov. 30 Salaries Expense 5,000
Advertising Expense 3,000
Cash 8,000
(To record, payment.)
Nov. 30 Merchandise Inventory 1,440
Cost of Goods Sold 1,440
36

GENERAL LEDGER

GL-1
Account # CASH
Date Item Post Debit Credit Balance
Nov.1 GJ-1 10,000 10,000.00
Nov.4 GJ-1 60 9,940.00
Nov.5 GJ-1 27 9,913.00
Nov.9 GJ-1 2,744 7,169.00
Nov.14 GJ-1 1,105.80 8,274.80
Nov.19 GJ-1 2,340 10,614.80
Nov.20 GJ-1 240 10,374.80
Nov. 21 GJ-1 3,000 7,344.80
Nov.22 GJ-1 784 6,590.80
Nov. 30 GJ-1 8,000 -1,409.20
10 TOTAL 13,445.8 14,885 -1,409.20

GL-1
Account # ACCOUNTS RECEIVABLE
Date Item Post Debit Credit Balance
Nov.5 GJ-1 1,320 1,320
Nov.10 GJ-1 180 1,140
Nov.14 GJ-1 1,140 0
3 TOTAL 1,320 1,320 0
GL-1
Account # EQUIPMENT
Date Item Post Debit Credit Balance
Nov.2 GJ-1 3,000 3,000
1 TOTAL 3,000 0 3,000

GL-1
Account # MERCHANDISE INVENTORY
Date Item Post Debit Credit Balance
Nov.30 GJ-1 1,440 1,440
1 TOTAL 1,440 0 1,440

GL-1
Account # ACCOUNTS PAYABLE
Date Item Post Debit Credit Balance
Nov.3 GJ-1 3,200 3,200
Nov. 9 400 2,800
Nov.9 2,800 0
Nov.13 800 (800)
Nov. 22 800 0
5 TOTAL 3,600 4,440 0

GL-1
Account # NOTES PAYABLE
Date Item Post Debit Credit Balance
Nov.25 GJ-1 0 3,000 3,000
1 TOTAL 0 3,000 3,000

GL-1
Account # CAPITAL
Date Item Post Debit Credit Balance
Nov.1 GJ-1 10,000 10,000
1 TOTAL 0 10,000 10,000

GL-1
Account # DRAWING
Date Item Post Debit Credit Balance
Nov.21 GJ-1 3,000 3,000
1 TOTAL 3,000 0 3,000
GL-1
Account # SALES
Date Item Post Debit Credit Balance
Nov. 5 GJ-1 1,320 1,320
Nov.19 GJ-1 2,340 3,360
2 TOTAL 2,340 1,320 3,360
GL-1
Account # SALES RETURNS AND ALLOWANCES
 Date Item Post Debit Credit Balance
Nov.10 GJ-1 180 180
Nov. 20 240 420
2 TOTAL 420 0 420
GL-1
Account # SALES DISCOUNTS
Date Item Post Debit Credit Balance
Nov.14 GJ-1 34.2 0 34.2
1 TOTAL 34.2 0 34.2

GL-1
Account # PURCHASES
Date Item Post Debit Credit Balance
Nov.3 GJ-1 3,200 3,000
Nov. 13 GJ-1 800 4,000
2 TOTAL 3,000 0 4,000

GL-1
Account # PURCHASE RETURNS AND ALLOWANCES
Date Item Post Debit Credit Balance
Nov.9 GJ-1 400 0 400
1 TOTAL 900 0 400

GL-1
Account # PURCHASE DISCOUNTS
Date Item Post Debit Credit Balance
Nov.9 GJ-1 56 0 56
Now.22 GJ-1 16 72
2 TOTAL 56 16 72

GL-1
Account # SALARIES EXPENSE
Date Item Post Debit Credit Balance
Nov.30 GJ-1 5,000 0 5,000
1 TOTAL 5,000 0 5,000

GL-1
Account # ADVERTISING EXPENSE
Date Item Post Debit Credit Balance
Nov.25 GJ-1 3,000 0 3,000
1 TOTAL 3,000 0 3,000
GL-1
Account # FREIGHT IN
Date Item Post Debit Credit Balance
Nov.4 GJ-1 0 60 60
1 TOTAL 0 60 60
GL-1
Account # FREIGHT OUT
Date Item Post Debit Credit Balance
Nov.5 GJ-1 27 0 27
1 TOTAL 27 0 27

GL-1
Account # COST OF GOODS SOLD
Date Item Post Debit Credit Balance
Nov.5 GJ-1 1,140 0 1,140
1 TOTAL 1,140 0 1,140

TRIAL BALANCE
For the month of November

ACCOUNTS TITLE DR. CR.

Asset:
Cash (1,409.20)
Accounts Receivable 0
Equipment 3,000
Merchandise Inventory 1,440
Liabilities:
Accounts Payable 0
Notes Payable 3,000
Owner’s Equity
Echaviz, capital 10,000
Echaviz, drawing 3,000

Revenue:
Sales 3,660
Sales Returns and Allowances 420
Sales Discounts 34.2

Expenses:
Purchases 4,000
Purchase Returns and Allowances 400
Purchase Discounts 72
Salaries Expense 5,000
Advertising Expense 3,000
Freight out 60
Freight in 27
Cost of Goods Sold 1,440

TOTAL 18,572.2 18,572.2

 ECHAVIZ LAMP STORE
Cost of Goods Sold
For the period ended, November
Merchandise Inventory -
Purchases 4,000
Purchase returns and allowances (400)
Purchase discounts (72)
Freight-in 27
Merchandise inventory (1,440)
Cost of goods sold 2,115

ECHAVIZ LAMP STORE

Statement of Performance
For the period ended, November
Dr. Cr.
Sales 3,660
Less:
Sales Returns and Allowances 420
Sales Discount 34.2
Net Sales 3,205.8
Less:
Cost of Goods Sold 2,115
Gross Profit 1,090.8
Less Operating expense:
Salaries 5,000
Advertising 3,000
Freight-out 60
Gross Profit: (6,969.2)

ECHAVIZ LAMP STORE

Statement of Equity
For the month ended, November
Echaviz, Capital Beg. -
Add: Initial Investment 10,000
Less: Echaviz, drawing (3,000)
Total: 7,000
Add Profit: (6,969.2)
Echaviz, Capital 30.8
 ECHAVIZ LAMP STORE

Statement of Financial Position

For the month of November

ASSET
Current Assets:
Cash (1,409.20)
Accounts Receivable 0
Merchandise Inventory 1,440
Non-current Assets:
Equipment 3,000
TOTAL ASSET: 3,030.8
LIABILITIES
Current Liabilities:
Accounts Payable 0
Non-current Liabilities:
Notes Payable 3,000
TOTAL LIABILITIES: 3,000
OWNER’S EQUITY
Echaviz, Capital: 30.8
TOTAL OWNER’S EQUITY: 30.8

TOTAL LIABILITIES + OWNER’S EQUITY: 3,030.8

ECHAVIZ LAMP STORE

Statement of Cash Flow

For the month ended, November

• Cash flows from Operating Activities

Cash Received from the customer
-November 14 1,105.8
-November 19 2,340
Net Cash received from the customers: 3,445.8

Payment for:

November 4- Paid Freight-in -----------------------------------(60)

November 5- Paid Freight-out ---------------------------------(27)

November 9- Bought merchandise ------------------------(2,744)

November 20- Paid refund------------------------------------- (240)

November 22- Paid Supplies ---------------------------------(784)

November 30- Payment for salaries -----------------------(5,000)

November 30- Payment for advertisement---------------- (3,000)

➢ Net cash provided by (used in) operating activities-------------(-8,409.2)

• Cash flows from operating activities
-November 25 10,000
➢ Net cash from financing activities---------------------------------10,000
• Cash flows from financing activities
Echaviz, Capital 10,000
Echaviz, Drawing (3,000)
➢ Net cash from financing activities------------------------------(7,000)
 ECHAVIZ LAMP STORE
Closing Journal entries
For the month ended, November
Date Description Reference Debit Credit
November Sales 3,660
Sales returns and allowances 420
Sales discount 34.2
Income Summary 3,205.8

Income Summary 13,827

Purchases 4,000
Purchase Returns and allowances 400
Purchase discounts 72
Salaries Expense 5,000
Advertising Expense 3,000
Freight-in 60
Freight-out 27
Cost of goods sold 1.440

Income Summary 30.8

Echaviz, Capital 30.8

Echaviz, Capital 30.8

Echaviz, Drawing 30.8

ECHAVIZ LAMP STORE

Post-Closing Trial Balance

For the month ended, November

Account Titles Dr. Cr.

ASSET
Cash (1,409.20)
Accounts Receivable 0
Merchandise Inventory 1,440
Equipment 3,000
LIABILITIES
Accounts Payable 0
Notes Payable 3,000
OWNER’S EQUITY
Echaviz, Capital 30.8
TOTAL: 3,030.8 3,030.8