RTW Enterprises completed the following merchandising transactions in the month of August 2019 as follows: 1 Mr.
Question:
RTW Enterprises completed the following merchandising transactions in the month of August 2019 as follows:
1 Mr. Leon Ty, the owner started the RTW Enterprises by investing P150,000.
1 Purchased merchandise on account from Uniwide Trading P35,000 terms 2/10 , n/30 FOB Shipping point
3 Sold 20,000 worth of goods for cash.
5 Sold P15,000 worth of goods on credit to First Avenue Store with credit terms 2/10, n/30 FOB Destination.
6 Paid P500 for the delivery of goods to First Avenue Store
6 Received P1,000 credit memo from Uniwide Trading for the return of unsatisfactory goods.
10 Purchase merchandise on cash, P30,000
11 Made a full payment to Uniwide Trading.
11 Purchase supplies for cash, P2,000
13 Purchase merchandise for cash, P40,000
14 Made a sale to Marvel Trading for P25 ,000 with credit term 2/10, n/30 FOB Destination
15 Receive payment from First Avenue Store regarding the August 5 sales.
15 Paid salaries of P7, 000
16 Issued a credit memo for P1, 000 to Marvel Trading for the return of unsatisfactory goods.
17 Received refund for poor quality merchandise from cash purchase, P700.
18 Leon Ty withdraw cash from the business P10,000.
19 Purchased office equipment for cash P20,000.
19 Purchase merchandise from Dayon Trading on account P20,000, credit terms 2/10, n/30 FOB Shipping Point.
20 The business made a loan at Chinabank and issued promissory note in the amount of P60,000.
22 Paid freight for the purchase of merchandise P750
25 Sold merchandise for cash, P35,000.
25 Made a partial payment to Dayon Trading P10,000. No discount for partial payment made.
29 Made refund to cash customer for defective merchandise P1,500.
30 Receive payment from Marvel Trading.
30 Sold merchandise in account P15,000.
31 Paid the following operating expenses for the month: Utilities P1,500; Advertising 1,200; Salaries 7,000; Rent 7.000
August 31, 2018 ending inventory - P 49,864.00
RTW Enterprises Chart of Accounts includes the following:
101 | Cash | 420 | Sales Discount |
112 | Accounts Receivable | 510 | Purchases |
120 | Merchandise Inventory | 512 | Purchase Returns & Allowance |
126 | Supplies | 520 | Purchase Discounts |
155 | Equipment | 526 | Freight In |
201 | Accounts Payable | 601 | Advertising Expense |
210 | Notes Payable | 644 | Freight Out |
301 | L. Ty, Capital | 701 | Salaries Expense |
310 | L. Ty, Drawing | 710 | Rent Expense |
401 | Sales | 720 | Utilities |
412 | Sales Returns & Allowance | 800 | Income Summary |
Instructions: Using the sheets provided, prepare the following:
August 2019 Journal Entries (with explanation)
General Ledger – Posting
Trial Balance
Statement of Cost of Goods Sold
Statement of Comprehensive Income (Financial Performance)
Closing Entries with Explanation
Post-Closing Trial Balance
Statement of Financial Position
Statement of Cash Flows
Statement of Changes in Equity
SET B: Periodic
RTP Enterprises completed the following merchandising transactions in the month of August 2019 as follows:
1 Mr. Edward Chua, the owner started the RTP Enterprises by investing P150, 000.
1 Purchased merchandise on account from Novo Enterprises P35, 000 terms 2/10, n/30 FOB Shipping point
3 Sold 20,000 worth of goods for cash. The cost of merchandise sold was 7, 000.
5 Sold P15,000 worth of goods on credit to Dynasty Square Enterprises with credit terms 2/10, n/30 FOB Destination. The cost of merchandise sold was 6,000.
6 Paid P500 for the delivery of goods to Dynasty Square Enterprises
6 Received P1, 000 credit memo from Novo Enterprises for the return of unsatisfactory goods.
10 Purchase merchandise on cash, P30, 000
11 Made a full payment to Novo Enterprises.
11 Purchase supplies for cash, P2, 000
13 Purchase merchandise for cash, P40, 000
14 Made a sale to Zia Trading for P25, 000 with credit term 2/10, n/30 FOB Destination. The cost of merchandise sold was 10,500.
15 Receive payment from Dynasty Square Enterprises regarding the August 5 sales.
15 Paid salaries of P7, 000
16 Issued a credit memo for P1, 000 to Zia Trading for the return of unsatisfactory goods.
17 Received refund for poor quality merchandise from cash purchase, P700.
18 Edward Chua withdraws cash from the business P10, 000.
19 Purchased office equipment for cash P20, 000.
19 Purchase merchandise from ABC Enterprise on account P20, 000, credit terms 2/10, n/30 FOB Shipping Point.
20 The business made a loan at Bank of the Philippine Islands and issued promissory note in the amount of P80, 000.
22 Paid freight for the purchase of merchandise P750
25 Sold merchandise for cash, P35, 000. The cost merchandise sold was 12,500.
25 Made a partial payment to ABC Enterprise P10, 000. No discount for partial payment made.
29 Made refund to cash customer for defective merchandise P1, 500.
30 Receive payment from Zia Trading.
30 Sold merchandise in account P15, 000. The cost of merchandise sold was 6,000.
31 Paid the following operating expenses for the month: Utilities P1, 500; Advertising 1,200; Salaries 7,000; Rent 7,000.
RTP Enterprises Chart of Accounts includes the following:
101 | Cash | 420 | Sales Discount |
112 | Accounts Receivable | 526 | Freight In |
120 | Merchandise Inventory | 601 | Advertising Expense |
126 | Supplies | 644 | Freight Out |
155 | Equipment | 701 | Salaries Expense |
201 | Accounts Payable | 710 | Rent Expense |
210 | Notes Payable | 720 | Utilities |
301 | E. Chua, Capital | 800 | Income Summary |
310 | E.Chua, Drawing | ||
401 | Sales | ||
412 | Sales Returns & Allowance |
Instructions: Using the sheets provided, prepare the following:
August 2019 Journal Entries (with explanation)
General Ledger – Posting
Trial Balance
Statement of Comprehensive Income (Financial Performance)
Closing Entries with Explanation
Post-Closing Trial Balance
Statement of Financial Position
Statement of Cash Flows
Statement of Changes in Equity
Accounting Principles
ISBN: 978-1119419617
IFRS global edition
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt