Unit 1 Accounting for Merchandising Business Illustrative Example COMPREHENSIVE PROBLEM. Read carefully the following problem and answer as required. The Dec. 31, 2018 post-closing trial balance for the Covida Company follows: Accounts receivable of P210,000 is related to a sale to Royal C0. on Dec. 28, 2018. All credit sales are 2/10,n/30. The accounts payable balance of P130,000 is attributable to a purchase on Dec. 29, 2018 from Sammy Co. All credit purchases are 3/10,n/30. Cost of merchandise is 80% of sales. During the month of Jan. 2019, the following transactions were completed: Jan. 2 Sold merchandise on credit to Banda Company, P240,000. Invoice no. 316. 3 Purchased merchandise on account from Arena CO., P90,000. Invoice dated Jan. 2. 4 Collected amount due from Dec. 28 sale to Royal Co. less discounts. 5 Sold merchandise for cash, P430,000. The cost of merchandise is 344,000. 7 Paid amount due to Sammy Co. for the purchase of Dec. 29, 2018 less discounts. Issued check no. 83. 8 Sold merchandise on account to Segal Co, P310,000. Invoice no, 317. 9 Retumed merchandise purchased from Arena C0,P10,000. 10 Collected amount due from Banda Company less discounts. 11 Purchased merchandise on account from Viral Co., P120,000. Invoice dated Jan. 10. 11 Paid Arena C0, amount dues less returns and discounts. Issued check no. 84. 12 Purchased merchandise for cash, P70,000. Issued check no. 85 . 13 Sold merchandise on account to Ceda Company, P130,000. Invoice no. 318. 14 Paid interest on the notes payable, P10,000. Issued check no. 86. 15 Paid salaries, P80,000. Issued check no. 87. 17 Purchased merchandise on account from Sammy Co., P190,000. Invoice dated Jan. 14. 18 Sold merchandise on account to Royal Co., P460,000. Invoice no. 319. 19 Covida withdrew P100,000 from the business. Issued check no. 88. 21 Acquired office supplies for cash, P40,000. Issued check no. 89. 22 Paid freight charges on the merchandise purchased from Sammy Co. on Jan, 17, P20,000. Issued check no. 90. 22 Collected amount due from Ceda Company less discounts. 23 Sold merchandise on credit to Banda Company, P110,000. Invoice no. 320. 24 Received return merchandise from Segal C0,P30,000. 25 Received amount due from Segal C0. on the sale of Jan. 8 less returns. 25 Purchased merchandise on account from Braga CO., P340,000. Invoce dated Jan. 24. 26 Paid P90,000 to Sammy Co. in partial payment of account. Issued check no. 91 . 27 Received P170,000 loan from the BPl and issued a note payable. 28 Purchased merchandise on account from Viral Co, P270,000. Invoice dated Jan. 27. 29 Sold merchandise on account Ceda Company, P170,000. Invoice no. 321. 30 Purchased merchandise on account from Arena C0, P360,000. Invoice dated Jan. 29. 30 Sold merchandise for cash, P1,310,000. 1. Enter the Dec. 31, 2020 post-closing trial balance amounts in the general ledger. 2. Record the transactions for the month of Jant:ary using special journals. 3. Total the journals and post to the ledger accounts. 4. Determine the balance in each account and prepare the unadjusted trial balance in the worksheet. 5. Prepare the following adjusting entries in the worksheet: a. Prepaid rent of P30,000 has expired. b. Office supplies at month-end amounted to P70,000. c. Monthly depreciation on the office equipment amounted to P10,000. d. Salaries of 990,000 have accrued. 6. Complete the worksheet. The ending inventory amounted to P470,000. 7. Prepare the financial statements. 8. Record the adjusting and closing entries in the general journal. Post entries to the general ledger. KINDLY ANSWER THE FOLLOWING ALSO: -cash receipts journal - cash disbursement journal - purchases journal - sales journal - general journal - general ledger - worksheet