PERIODIC INVENTORY SYSTEM (ACTIVITY)
PROBLEM SOLVING: MERCHANDISING PROBLEM (PERIODIC INVENTORY SYSTEM)
April 1, 2017 The business ACE DISTRIBUTORS was registered as single proprietorship with the
Department of Trade and Industry, Jane Lopez invested P 39,000.
2
Bought computer equipment for P 10, 000 cash.
2
Bought merchandise on account from HIGHTOWN Supply Co. P 15, 900 terms: 2/10, n/30.
3
Bought office supplies on cash basis for P 700.
4
Sold merchandise on account P 15, 200. FOB Destination terms: 2/10, n/30.
5
Paid P 200 freight on April 4 sales.
6
Received credit memo from HIGHTOWN Supply Co. for merchandise returned P 300.
11
Paid HIGHTOWN Supply Co.
13
Collected from April 4 customers.
14
Bought merchandise on cash basis for P 14, 400.
15
Paid Salaries P 1, 500.
16
Borrowed money from PS Bank signed a promissory note for P 12, 000.
17
Received refund from Supplier on cash purchase of April 14, P 500.
18
Bought merchandise from LERMA P 14, 200 FOB Shipping point terms: 2/10, n/30.
20
Paid freight on April 18 purchase, P 700.
23
Sold merchandise for P 16, 400.
26
Bought merchandise for cash P 12, 300.
27
Paid LERMA on the April 18 purchase, P 9, 000. No discount allowed on partial payment.
28
J. Lopez got cash from the business, P 2008.
29
Made refund to cash customers for defective merchandise P 900.
30
Sold merchandise on account, P 13, 700, n/30.
30
Paid the following: Advertising P 1, 000; Utilities P 400; Rent P3, 500; Salaries P 1, 500.
30
Inventory April 30, P 25, 000.
Chart of Accounts:
101 Cash, 105 Accounts Receivable, 115 Merchandise Inventory, 120 Supplies, 150 Equipment, 201
Accounts Payable, 202 Notes Payable, 301 Lopez Capital, 302 Lopez Drawings, 401 Sales, 405 Sales
Returns & Allowances, 410 Sales Discount, 501 Purchases, 502 Purchases Returns and Allowances, 503
Purchase Discounts, 504 Freight In, 505 Advertising Expense, 510, Rent Expense, 530 Salaries Expense,
540 Utilities Expense, 550 Freight Out, 601 Income Summary
Required:
1. Journal Entries
2. Ledger
3. Trial Balance
4. Statement of Cost of Goods Sold
5. Statement of Performance
6. Statement of Equity
7. Statement of Financial Position
8. Statement of Cash Flows
9. Closing Entries
10. Post – Closing Trial Balance
PERIODIC INVENTORY SYSTEM (ACTIVITY)
PROBLEM SOLVING: MERCHANDISING PROBLEM (PERIODIC INVENTORY SYSTEM)
June 1, 2018 Mr. Tee deposited P 500, 000 in BDO in the name of the business Tee Supply Company.
2
Bought a computer on account P 15, 000.
3
Purchased merchandise, P 30, 000 from Heart Traders: FOB shipping point; 3/10,n/30.
5
Acquired office supplies in cash P 2, 000.
7
Paid the amount due to Heart Traders.
8
Sold merchandise on account to Love Company, P 70, 000, terms: FOB destination; 2/10, n/30.
9
Paid H.E Freight P 1, 500 for delivering merchandising purchased last June 3.
10
Purchased merchandise from Locker Company, P 30, 000.
11
Received returns from Love Company P 4,000
12
Received payment from Love Company less return and discounts.
13
Borrowed P 30, 000 from BDO by issuing a note.
14
Received refund for poor quality merchandise purchased on June 10 amounting to P 4, 000.
15
Sold merchandise on account to April Company, P 55, 000. Terms: FOB Destination; 2/10, n/30.
15
Paid P 1, 500 freight charges on the sale of June 15.
16
Paid the salaries, P 20, 000.
19
Purchased P 35, 000 of merchandise from Locker Company on account. Terms: FOB shipping point;
3/10, n/30.
20
Returned P 2, 500 of merchandise purchased on June 19.
23
Acquired supplies on account, P 5, 000.
26
Sold merchandise costing P30, 000 for cash.
27
Made refund to cash customer for defective merchandise P 3, 000.
28
Mr. Tee withdrew P 5, 000 from the business.
30
Paid the operating expenses: Salaries P 20,000; Rent P 5, 000; Advertising P 2, 000 and Utilities P 2,
000.
30
The ending inventory of Tee Supply Company to P 8, 000.
Chart of Accounts:
101 Cash, 102 Accounts Receivable, 103 Merchandise Inventory, 104 Supplies, 105 Equipment, 201 Accounts
Payable, 202 Notes Payable, 301 Tee Capital, 302 Tee Drawings, 401 Sales, 402 Sales Returns & Allowances,
403 Sales Discount, 501 Purchases, 502 Purchases Returns and Allowances, 503 Purchase Discounts, 504
Freight In, 505 Advertising Expense, 506, Rent Expense, 507 Salaries Expense, 508 Utilities Expense, 509
Freight Out, 601 Income Summary
Required:
1. Journal Entries
2. Ledger
3. Trial Balance
4. Statement of Cost of Goods Sold
5. Statement of Performance
6. Statement of Equity
7. Statement of Financial Position
8. Statement of Cash Flows
9. Closing Entries
10. Post – Closing Trial Balance