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Merchandising Exercises

The document provides accounting transactions for Cho Cho's Pro Shop for the month of April. It lists cash purchases and sales, payments received, returns, and other transactions. The transactions need to be journalized, posted to accounts, and a trial balance prepared at April 30.

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Danica Catalan
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240 views

Merchandising Exercises

The document provides accounting transactions for Cho Cho's Pro Shop for the month of April. It lists cash purchases and sales, payments received, returns, and other transactions. The transactions need to be journalized, posted to accounts, and a trial balance prepared at April 30.

Uploaded by

Danica Catalan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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At the beginning of the current season on April 1, the ledger of Cho Cho’s Pro Shop

showed cash P250,500, Merchandise Inventory P300,500, and Cho Ramos, Capital
P551,000. The following transactions were completed during April.

April
5 Purchased golf bags, clubs, and balls on account from Balata Co.P179,200, FOB
shipping point, terms 2/10, n/60.

7 Paid freight on Balata purchase P8,000.

9 Received credit from Balata Co. for merchandise returned P22,400.

10 Sold merchandise on account to members P10,800, terms n/30.

11 Purchased golf shoes, sweaters, and other accessories on account from Arrow
Sportswear P73,920, terms, 1/10,n/30.

14 Paid Balata Co. in full.

16 Received credit from Arrow Sportswear for merchandise returned, P7,840.

20 Made sales on account to members P41,440, terms n/30.

21 Paid Arrow Sportswear in full.

27 Granted credit to members for clothing that did not fit, P3,360.

30 Made cash sales P67,200.

30 Received payments on account from members P19,100.

The chart of accounts for the Pro Shop includes the following: No. 101 Cash, No. 112 Accounts
Receivable, No. 120 Merchandise Inventory, No. 201 Accounts Payable, No. 301 C. Ramos Capital, No.
401 Sales, No. 412 Sales Returns and Allowances, No. 510 Purchases, No. 512 Purchase Returns and
Allowances, No. 514 Purchase Discounts, No. 516 Freight-in.
REQUIRED:
1. Journalize the transaction.
2. Enter the beginning cash and capital balances and post the transactions.
3. Determine the ending balances and prepare a trial balance at
April 30, 2012.

Reference: Beticon, J., Hinayon, M., and Ireneo, S. (2013). Fundamentals of


Accounting.

The transactions for the IRH company for the month of July of the current year are
shown below:

July
2 IRH sold and shipped merchandise worth P560,000 to MJ Company, terms, 1/5, n/30.

4 MJ Company reported P11,200 of merchandise damaged in shipment, and a credit


memo was issued for this.

6 Purchased office supplies for P5,800 cash.

7 Sold P224,000 of merchandise to Miggi Company terms 2/10, n/30.

8 Purchased merchandise for P448,000 cash.

10 Cash sales for the first 15 days is P336,00

12 Purchased merchandise worth P560,000, 20% down payment, balance 2/10, n/30

14 Returned defective merchandise worth P56,000 purchased on July 12.

16 Received payment from MJ Co. for sale of July 2.

18 Received payment from Miggi Co.

20 Sold an equipment for cash P30,000

22 Paid commission of salesmen, P50,000

REQUIRED: Journalize the transactions for the month of July.


Reference: Beticon, J., Hinayon, M., and Ireneo, S. (2013). Fundamentals of
Accounting.

The transactions of Rodolfo Santiago for January, 2012 were as follows:

January
4 Began the business with the following investments:
Cash P550,000
Merchandise inventory 140,000
Furniture and fixtures 50,000

5 Paid rent for December, P13,000

6 Purchased a second hand delivery truck from Ramcar Co. for cash, P205,000.

6 Purchased goods for cash from Light and Sons, P61,600.

7 Sold merchandise to C. Rivera, P15,680 Terms: 2/10, n/30.

7 Paid freight for merchandise sold P2,500.

8 C. Rivera returned P1,120 spoiled merchandise.

15 Mr. Santiago withdrew cash for personal use, P5,000.

16 Collected in full from C. Rivera.

20 Purchased merchandise on account from ABC Co. P30,000. Terms: n/60 FOB
shipping point, collect, Freight cost, P2,800.

REQUIRED:
1. Journalize the above transactions.
2. Post to the ledger accounts
3. Take a trial balance as of January 20, 2010.
Reference: Beticon, J., Hinayon, M., and Ireneo, S. (2013). Fundamentals of
Accounting.

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