PERPETUAL INVENTORY SYSTEM
SUPERSTAR DISTRIBUTORS
PROBLEM 1
SUPERSTAR DISTRIBUTORS
CHART OF ACCOUNTS
Use for Journalization and Posting to the Ledger
100 ASSETS
400 INCOME
101
105
115
120
150
200
201
202
300
301
302
401
405
410
500
501
503
506
510
530
540
601
CASH
ACCOUNTS RECEIVABLE
MERCHANDISE INVENTORY
SUPPLIES
EQUIPMENT
LIABILITIES
ACCOUNTS PAYABLE
NOTES PAYABLE
EQUITY
CUNETA, CAPITAL
CUNETA, DRAWINGS
SALES
SALES RETURNS & ALLOWANCES
SALES DISCOUNTS
EXPENSE
COST OF GOODS SOLD
ADVERTISING EXPENSE
FREIGHT OUT
RENT EXPENSE
SALARIES
UTILITIES
INCOME SUMMARY
SUPERSTAR DISTRIBUTORS
CHART OF ACCOUNTS
Use for Financial Statements Preparation
100 ASSETS
400
101
105
115
120
150
200
201
202
300
301
302
401
405
410
500
501
503
506
510
530
540
CASH & CASH EQUIVALENT
RECEIVABLE
INVENTORIES
PREPAID EXPENSES
PROPERTY PLANT & EQUIPMENT
LIABILITIES
ACCOUNTS PAYABLE
NOTES PAYABLE
EQUITY
CUNETA, CAPITAL
CUNETA, DRAWINGS
INCOME
NET SALES
EXPENSE
COST OF GOODS SOLD
ADVERTISING EXPENSE
FREIGHT OUT
RENT EXPENSE
SALARIES
UTILITIES
SUPERSTAR DISTRIBUTORS
The business, Super Star Distributors, was registered as a single proprietorship
with the Department of Trade and Industry, Sha Cuneta.
April 1
Invested P 39, 000
2
Bought computer equipment for 10, 000 cash.
2
Bought merchandise on account from Sicatuna Supply co., 15 900, terms
2/10, n/30.
3
Bought office supplies on cash basis for 700.
4
Sold merchandise on account 15 200. FOB destination, terms 2/10, n/30.
The Cost of merchandise sold was 12 200.
5
Paid 200 freight on April 4 sale.
6
Received credit from Sicatuna Supply Co., for merchandise returned 300.
11
Paid Sicatuna
13
Collected from April 4 customers
14
Bought merchandise on Cash basis for 14 400.
15
Salaries paid 1,500.
16
Borrowed money from China Bank, signed a promissory note for 12000.
17
Received refund from a supplier on cash purchase of April 14, 500.
18
Bought merchandise from MDR, 14200, FOB shipping point, terms,
2/10, n/30
20
Paid freight on April 18 purchase, 700.
23
Sold merchandise for 16400. The merchandise sold had a cost of 10500.
26
Bought merchandise for cash 12 300.
27
Paid MDR on April 18 purchase, 9 000. No discount allowed on partial
payment.
28
Sha Cuneta got cash from the business, 2 008.
29
Made refund to cash customers for defective merchandise, 900.
30
Sold merchandise on account 13 700, n/30. Cost of the merchandise sold
is 11 000.
30
Paid the following : Advertising 1, 000; Utilities 400; Rent 3 500;
Salaries 1 500.
GENERAL JOURNAL
Page Number GJ-1
With Explanation
April 1 to 11 Transaction only
CURRENT JOURNAL ENTRIES
DATE
April
1
2
2
3
4
5
6
11
PARTICULARS
Ref
DEBIT
CREDIT
GENERAL JOURNAL
Page Number GJ-2
With Explanation
April 13 to 23 Transaction only
CURRENT JOURNAL ENTRIES
DATE
April
13
14
15
16
17
18
20
23
PARTICULARS
Ref
DEBIT
CREDIT
GENERAL JOURNAL
Page Number GJ-3
With Explanation
April 26 to 30 Transaction only
CURRENT JOURNAL ENTRIES
DATE
April
26
27
28
29
30
30
PARTICULARS
Ref
DEBIT
CREDIT
GENERAL LEDGER
Page Number GL-1
Write “0” if balance is “0”
Date
April
Date
April
Date
April
Account
101
CASH
Item
Post
Account
105
Item
Post
Debit
Account
115
Item
Post
MERCHANDISE INVENTORY
Balance
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Balance
Credit
ACCOUNTS RECEIVABLE
Balance
Credit
Debit
Credit
GENERAL LEDGER
Page Number GL-2
Write “0” if balance is “0”
Date
April
Date
April
Date
April
Date
April
Date
April
Date
April
Account
120
Item
Post
Account
150
Item
Post
Account
201
Item
Post
Account
202
Item
Post
Account
301
Item
Post
Account
302
Item
Post
SUPPLIES
Debit
Credit
Debit
Balance
Credit
EQUIPMENT
Balance
Debit
Credit
Debit
Credit
Debit
ACCOUNTS PAYABLE
Balance
Credit
Debit
Credit
Debit
NOTES PAYABLE
Balance
Credit
Debit
Credit
Debit
CUNETA, CAPITAL
Balance
Credit
Debit
Credit
Debit
CUNETA, DRAWING
Balance
Credit
Debit
Credit
GENERAL LEDGER
Page Number GL-3
Write “0” if balance is “0”
Date
April
Date
April
Date
April
Date
April
Date
April
Account
401
SALES
Item
Post
Debit
Account
405
Item
Post
SALES RETURNS & ALLOWANCES
Balance
Debit
Credit
Debit
Credit
Account
410
Item
Post
Account
501
Item
Post
Account
503
Item
Post
Credit
Debit
Balance
Credit
Debit
SALES DISCOUNTS
Balance
Credit
Debit
Credit
Debit
COST OF GOODS SOLD
Balance
Credit
Debit
Credit
Debit
ADVERTISING EXPENSE
Balance
Credit
Debit
Credit
GENERAL LEDGER
Page Number GL-4
Write “0” if balance is “0”
Date
April
Date
April
Date
April
Date
April
Date
April
Account
506
Item
Post
Account
510
Item
Post
Account
530
Item
Post
Account
540
Item
Post
Account
600
Item
Post
FREIGHT OUT
Balance
Credit
Debit
Credit
Debit
RENT EXPENSE
Balance
Credit
Debit
Credit
Debit
SALARIES EXPENSE
Balance
Credit
Debit
Credit
Debit
UTILITIES EXPENSE
Balance
Credit
Debit
Credit
Debit
INCOME SUMMARY
Balance
Credit
Debit
Credit
Debit
SUPERSTAR DISTRIBUTORS
PRELIMINARY TRIAL BALANCE
APRIL 30, 2016
ACCOUNT TITLE
Dr
101
CASH
105
ACCOUNTS RECEIVABLE
115
MERCHANDISE INVENTORY
120
SUPPLIES
150
EQUIPMENT
201
ACCOUNTS PAYABLE
202
NOTES PAYABLE
301
CUNETA, CAPITAL
302
CUNETA, DRAWING
401
SALES
405
SALES RETURNS & ALLOWANCES
410
SALES DISCOUNT
501
COST OF GOODS SOLD
506
FREIGHT OUT
503
ADVERTISING
510
RENT
530
SALARIES
540
UTILITIES
TOTALS
SUPERSTAR DISTRIBUTORS
STATEMENT OF PERFORMANCE
FOR THE PERIOD ENDED APRIL 30, 2016
(IN PESOS)
Cr
SUPERSTAR DISTRIBUTORS
STATEMENT OF EQUITY
FOR THE PERIOD ENDED APRIL 30, 2016
(IN PESOS)
SUPERSTAR DISTRIBUTORS
STATEMENT OF FINANCIAL POSITION
APRIL 30, 2016
(IN PESOS)
SUPERSTAR DISTRIBUTORS
STATEMENT OF CASH FLOWS
FOR THE PERIOD APRIL 30, 2016
(IN PESOS)
GENERAL JOURNAL
Page Number GJ-4
With Explanation
DATE
April
DESCRIPTION
CLOSING JOURNAL ENTRIES
REF DEBIT
CREDIT
SUPERSTAR DISTRIBUTORS
POST CLOSING TRIAL BALANCE
APRIL 30, 2016
(IN PESOS)
PROBLEM 2:
2.1
MAR company borrowed 100, 000 on December 1 by signing a six-month note
that specifies interest at an annual percentage rate (APRIL) of 12%. No interest
Or principal payment is due until statements at the end of each calendar month.
Provide an answer for the month end of January only.
2.2
In December 1, FOX paid its insurance agent P 2,400 for the annual insurance
premium covering the twelve-month period beginning on December 1. The 2,
400 payment was recorded on December 1 with 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, GRAY began operations. On December 4, it purchased 1, 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, GRAY company estimated that 700 of the
supplies were still on hand in the supply room.
REQUIREMENT: Answer the questions pertaining to the adjusting entries for
each the three cases. Use the answer sheet provided for Problem 2.
What is the
ADJUSTING ENTRY DATE
DEBIT ACCOUNT TITLE
CREDIT ACCOUNT TITLE
DEBIT & CREDIT AMOUNT
Prob 2.1
Prob 2.2
Prob 2.3