Activity 1: Purchase Transaction Analysis Prepare general journal entries on the following purchases transaction of JK Phone Store using the periodic inventory system

1. JK Phone Store open its business on March 1, 2018 and is located in Centro Mall in Quezon Province. The owner invested P300,000 to start the business. On March 2, 2018, JK purchased 20 units of cellphone on account for 5,000 each. Upon delivery of units, the supplier, Phone Axis, inc. issued Charge Invoice No. 123 to JK Phone Store.

2. Out of 20 units of smartphone purchased on March 2, it was found out that one unit was damaged during shipment. JK issued a debit memorandum (DM01) and informed the supplier that it will return the one damaged item and the amount will be deducted from JK account's payable.

3. The product supplier of JK store was based in Pasay. It will cost P2,000 to deliver the 20 cellphone units to Quezon Province. What is the journal entry if the terms is FOB Shipping Point on March 4, 2018?

4. The credit terms for the purchase of 20 smartphone units (total cost of P100,000) is 2/10, n/30. What is the journal entry if JK paid the account in full with Phone Axis, Inc. on March 9, 2018?

5. Refer to transaction 4. What is the journal entry if JK paid the account in full on April 3, 2018?

Activity 2: Sales Transaction Analysis Prepare general journal entries on the following sales transaction of JK Phone Store applying the inventory system.

1. On March 5, 2018, JK Phone store sold two units to Kristine Dela Cruz worth P13,000 per unit, cash, FOB Destination with Official Receipt (OR) No. 101

JK Store paid Lalagrab Express, P250 to deliver the units to Kristine Dela Cruz.

2. March 6, 2018, sold another five units of smartphone to Ruben Santos on account, Charge Invoice (ChI) No. 101. Each unit will cost P15,000 with terms 3/10, n/30, FOB Shipping point.

3. On March 10, 2018, JK Phone store accepted one unit of smartphone returned by Ruben Santos which was purchased last March 6 under ChI 101 because one of his family members have already acquired a unit of smartphone and it is already an excess. The price will be deducted from R. Santos' account.

4. Assumed that on March 15, Ruben Santos paid the account on March 6 transaction in full, deduct the amount of the returned unit on March 10, 2018. What is the journal entry?

5. What if Ruben Santos made his payment on April 8, 2018. What is the journal entry?

Post the General Journal entry accounts of JK Phone Store in a General Ledger

From Activity 1 (Transactions 1-4 only)

From Activity 2 (Transactions 1-4 only)

JK Phone Store: Chart of Accounts 100 ASSETS 400 INCOME 101 Cash 401 Sales 102 Accounts Receivable 402 Sales Returns & Allowances 200 LIABILITIES 403 Sales Discounts 201 Accounts Payable 500 EXPENSES 300 EQUITY 501 Purchases 301 JK, Capital 502 Purchase Returns & Allowances 503 Purchase Discounts 504 Freight In 505 Freight Out