PROBLEM 1 - PERIODIC INVENTORY SYSTEM

GENERAL JOURNAL

DATE PARTICULARS F DEBIT

1 March 1 Cash 100,000.00

2 Equipment 225,000.00
3 M. Lerin, Capital
4 Additional investnent by the owner.
5
6 2 Purchases 74,000.00
7 Accounts Payable
8 Purchase of merchandise on account.
9
10 3 Accounts Receivable 100,000.00
11 Sales
12 Sale of merchandise on account.
13
14 5 Cash 70,000.00
15 Sales
16 Sale of merchandise for cash.
17
18 6 Purchases 42,000.00
19 Accounts Payable
20 Purchase of merchandise on account.
21
22 7 Freight In 570.00
23 Accounts Payable
24 Freight bill on merchandise purchased.
25
26 8 Advertising Expense 5,000.00
27 Cash
28 Payment of advertising.
29
30 9 Accounts Receivable 38,000.00
31 Sales
32 Sale of merchandise on account.
33
34 10 Purchases 26,000.00
35 Freight In 500.00
36 Accounts Payable
37 Purchase of merchandise and freight on account.
38
39 11 Freight Out 291.00
40 Accounts Payable
41 Freight bill on merchandise sold.

GENERAL JOURNAL
1 March 12 Accounts Payable 74,000.00
2 Purchase Discount
3 Cash
4 Payment of account with discount.
5
6 13 Cash 99,000.00
7 Sales Discount 1,000.00
8 Accounts Receivable
9 Collection of sales on account with discount.
10
11 14 Accounts Payable 21,000.00
12 Purchase Discount
13 Cash
14 Payment of account with discount.
15
16 15 Accounts Payable 3,000.00
17 Purchase Returns and Allowances
18 Return of merchandise purchased on account.
19
20 16 Supplies Inventory 4,780.00
21 Accounts Payable
22 Purchase of supplies on account.
23
24 17 Cash 18,810.00
25 Sales Discount 190.00
26 Accounts Receivable
27 Collection of sales on account with discount.
28
29 18 Salaries Expense 25,000.00
30 Cash
31 Payment of salaries.
32
33 19 Accounts Receivable 7,800.00
34 Sales
35 Sale of merchandise on account.
36
37 20 Accounts Payable 1,280.00
38 Supplies Inventory
39 Return of supplies purchased on account.
40

GENERAL JOURNAL

1 March 21 Accounts Payable 23,500.00

2 Cash
3 Payment of account.
4
5 22 Sales Returns & Allowances 1,800.00
6 Accounts Receivable
7 Return of merchandise sold.
8
9 25 Accounts Payable 3,500.00
10 Cash
11 Payment of account.
12
13 26 Accounts Payable 861.00
14 Cash
15 Payment of account.
16
17 27 Cash 5,880.00
18 Sales Discount 120.00
19 Accounts Receivable
20 Collection of sales on account with discount.
21
22 28 Accounts Payable 21,000.00
23 Cash
24 Payment of account.
25
26 29 Cash 97,300.00
27 Sales
28 Sale of merchandise for cash.
29
30 31 Interest Expense 20,833.33
31 Cash
32 Payment of interest on notes payable.
33
34 31 Salaries Expense 25,000.00
35 Utilities Expense 10,000.00
36 Taxes & Licenses 5,000.00
37 Cash
38 Payment of various expenses
39
40
YSTEM
Page 1

CREDIT

1
2
325,000.00 3
4
5
6
74,000.00 7
8
9
10
100,000.00 11
12
13
14
70,000.00 15
16
17
18
42,000.00 19
20
21
22
570.00 23
24
25
26
5,000.00 27
28
29
30
38,000.00 31
32
33
34
35
26,500.00 36
37
38
39
291.00 40
 41

Page 2

1
1,480.00 2
72,520.00 3
4
5
6
7
100,000.00 8
9
10
11
420.00 12
20,580.00 13
14
15
16
3,000.00 17
18
 19
20
4,780.00 21
22
23
24
25
19,000.00 26
27
28
29
25,000.00 30
31
32
33
7,800.00 34
35
36
37
1,280.00 38
39
40

Page 3

1
23,500.00 2
3
4
5
1,800.00 6
7
8
9
3,500.00 10
11
12
13
861.00 14
15
16
17
18
6,000.00 19
20
 21
22
21,000.00 23
24
25
26
97,300.00 27
28
29
30
20,833.33 31
32
33
34
35
36
40,000.00 37
38
39
40
 PROBLEM 2 - PERPETUAL INVENTORY SYSTEM
GENERAL JOURNAL

DATE PARTICULARS F DEBIT

1 June 1 Cash In Bank 500,000.00

2 A. Cruz, Capital
3 Investment of the owner.
4
5 1 Furniture & Fixtures 400,000.00
6 Supplies Inventory 50,000.00
7 A. Cruz, Capital
8 Investment of the owner.
9
10 1 Equipment 500,000.00
11 Cash In Bank
12 Note Payable
13 Purchase of Equipment.
14
15 3 Merchandise Inventory 150,000.00
16 Cash In Bank
17 Purchase of merchandise for cash.
18
19 4 Cash In Bank 14,000.00
20 Merchandise Inventory
21 Return of merchandise purchased
22
23 5 Cash In Bank 240,000.00
24 Sales
25 Sale of merchandise for cash.
26
27 Cost of Goods Sold 144,000.00
28 Merchandise Inventory
29 Cost of merchandise sold.
30
31 6 Sales Returns & Allowances 20,000.00
32 Cash In Bank
33 Return of merchandise sold.
34
35 Merchandise Inventory 12,000.00
36 Cost of Goods Sold
37 Cost of return on merchandise sold.
38

GENERAL JOURNAL

DATE PARTICULARS F DEBIT

1 June 7 Merchandise Inventory 100,000.00
2 Cash In Bank
3 Accounts Payable
4 Purchase of merchandise.
5
6 8 Freight Out 2,000.00
7 Cash In Bank
8 Payment of freight on merchandise sold.
9
10 9 Rent Expense 7,150.00
11 Cash In Bank
12 Payment of rent.
13
14 10 Merchandise Inventory 3,000.00
15 Cash In Bank
16 Payment of freight on merchandise purchased.
17
18 11 Utilities Expense 1,000.00
19 Cash In Bank
20 Payment of utilities.
21
22 12 Advertising Expense 3,000.00
23 Cash In Bank
24 Payment of advertising.
25
26 14 Accounts Receivable 120,000.00
27 Sales
28 Sale of merchandise on account.
29
30 Cost of Goods Sold 70,000.00
31 Merchandise Inventory
32 Cost of merchandise sold.
33
30 15 Salaries Expense 52,000.00
31 Cash In Bank
32 Payment of salaries.
33
34 17 Accounts Payable 80,000.00
35 Merchandise Inventory
36 Cash In Bank
37 Payment of account with discount.
38

GENERAL JOURNAL

DATE PARTICULARS F DEBIT

1 18 Cash In Bank 116,400.00

2 Sales Discount 3,600.00
3 Accounts Receivable
4 Collection of sales on account with discount.
5
6 18 Accounts Receivable 50,000.00
7 Sales
8 Sale of merchandise on account.
9
10 Cost of Goods Sold 20,000.00
11 Merchandise Inventory
12 Cost of merchandise sold.
13
10 21 Sales Returns & Allowances 10,000.00
11 Accounts Receivable
12 Return of merchandise sold.
13
14 Merchandise Inventory 4,000.00
15 Cost of Goods Sold
16 Cost of return on merchandise sold.
17
18 22 Merchandise Inventory 200,000.00
19 Accounts Payable
20 Purchase of merchandise on account.
21
22 24 Accounts Payable 40,000.00
23 Merchandise Inventory
24 Return of merchandise purchased.
25
26 28 Merchandise Inventory 150,000.00
27 Accounts Payable
28 Purchase of merchandise on account.
29
30 28 Cash In Bank 39,200.00
31 Sales Discount 800.00
32 Accounts Receivable
33 Collection of sales on account with discount.
34
35 30 Accounts Receivable 110,000.00
36 Sales
37 Sale of merchandise on account.
38

GENERAL JOURNAL

DATE PARTICULARS F DEBIT

1 Cost of Goods Sold 60,000.00

2 Merchandise Inventory
3 Cost of merchandise sold.
4
5 30 Accounts Payable 160,000.00
6 Merchandise Inventory
7 Cash In Bank
8 Payment of account with discount.
9
10 30 Note Payable 50,000.00
11 Interest Expense 3,000.00
12 Cash In Bank
13 Installment payment of the note plus interest.
14
15 30 Taxes & Licenses 4,000.00
16 Salaries Expense 52,000.00
17 Miscellaneous Expense 3,000.00
18 Cash In Bank
19 Payment of various expenses.
20
Y SYSTEM
Page 1

CREDIT

1
500,000.00 2
3
4
5
6
450,000.00 7
8
9
10
200,000.00 11
300,000.00 12
13
14
15
150,000.00 16
17
18
19
14,000.00 20
21
22
23
240,000.00 24
25
26
27
144,000.00 28
29
30
31
20,000.00 32
33
34
35
12,000.00 36
37
38

Page 2

CREDIT
 1
20,000.00 2
80,000.00 3
4
5
6
2,000.00 7
8
9
10
7,150.00 11
12
13
14
3,000.00 15
16
17
18
1,000.00 19
20
21
22
3,000.00 23
24
25
26
120,000.00 27
28
29
30
70,000.00 31
32
 33
30
52,000.00 31
32
33
34
3,200.00 35
76,800.00 36
37
38

Page 3

CREDIT

1
2
120,000.00 3
4
5
6
50,000.00 7
8
9
10
20,000.00 11
12
13
10
10,000.00 11
12
13
14
4,000.00 15
16
17
18
200,000.00 19
20
21
22
40,000.00 23
24
25
26
150,000.00 27
28
29
30
 31
40,000.00 31
32
33
34
110,000.00 35
36
37

Page 4

CREDIT

1
60,000.00 2
3
4
5
4,800.00 6
155,200.00 7
8
9
10
11
53,000.00 12
13
14
15
16
17
59,000.00 18
19
20