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Perpetual & Periodic Inventory System (Activity)

This document describes transactions that occurred during the first month of operations for Advincula Trading. It provides information needed to complete the accounting cycle for both a periodic and perpetual inventory system, including journal entries, ledgers, trial balances, financial statements, and closing entries. Accounting tasks include tracking cash, sales, purchases, expenses, inventory, and preparing required financial reports.

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Jasmine Acta
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3K views1 page

Perpetual & Periodic Inventory System (Activity)

This document describes transactions that occurred during the first month of operations for Advincula Trading. It provides information needed to complete the accounting cycle for both a periodic and perpetual inventory system, including journal entries, ledgers, trial balances, financial statements, and closing entries. Accounting tasks include tracking cash, sales, purchases, expenses, inventory, and preparing required financial reports.

Uploaded by

Jasmine Acta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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PERPETUAL & PERIODIC INVENTORY SYSTEM (ACTIVITY)

PROBLEM SOLVING: MERCHANDISING PROBLEM (PERPETUAL & PERIODIC INVENTORY SYSTEM)

The following transactions took place during the first month of operation of Advincula Trading.

Nov 2 Mr. J. Advincula invested P 2, 000,000 cash in his business.


3 Purchase merchandise on account from KMJS Trading P 150, 000, terms: 2/15, n/30, FOB Shipping
point.
4 Bought the following on cash: Computer Equipment P 5, 000 & Supplies P 300.
5 Sold merchandise on cash P 5, 000. The goods cost P 3, 500.
6 Sold merchandise on cash amounting P 50, 000. The goods cost P 35, 000.
7 Received the merchandise and bill for the shipping of P 500 from Air21 shipping company. The bill
paid when received.
8 Sold merchandise on account P 3, 500. The goods cost P 2, 450.
9 Received a P 700 credit memo from KMJS Trading for a return of defective merchandise.
10 Sold merchandise on account to St. John Trading P 75, 000, FOB destination, terms: 3/10, n/30.
The goods cost P52, 500.
12 Paid P 650 freight on Nov 10 sales.
14 Sold merchandise on cash to Smart World P 4, 000. The goods cost P 2, 800.
16 Made a refund amounting P 600 on Nov.6 customer. The goods valued at P 420.
18 Made a full payment to KMJS Trading.
20 Collected the account due from St. John Trading.
25 Borrowed money from Metro Bank signed a promissory note for P 10, 000.
28 Mr. Advincula withdraws P 500 cash from the business.
30 Paid the following: Advertising P 500, Utilities P 400, Rent P 2, 500 and Salaries P 1, 500.
30 Ending inventory of P 21, 000.

Chart of Accounts: PERIODIC INVENTORY SYSTEM


101 CASH, 105 ACCOUNTS RECEIVABLE, 110 MERCHANDISE INVENTORY, 115 SUPPLIES,
120 EQUIPMENT, 201 ACCOUNTS PAYABLE, 205 NOTES PAYABLE, 301 ADVINCULA CAPITAL,
305 ADVINCULA DRAWINGS, 401 SALES, 405 SALES RETURNS AND ALLOWANACES,
415 SALES DISCOUNT, 501PURCHASES, 502 PURCHASES RETURNS AND ALLOWANCE, 503 PURCHASE
DISCOUNT, 504 FREIGHT-IN, 505 ADVERTISING EXPENSE, 506 FREIGHT-OUT, 510 RENT EXPENSE,
530 SALARIES EXPENSE, 540 UTILITIES EXPENSE, 600 INCOME SUMMARY
Required:
1. Journal Entries 6. Statement of Equity
2. Ledger 7. Statement of Financial Position
3. Trial Balance 8. Statement of Cash Flows
4. Statement of Cost of Goods Sold 9. Closing Entries
5. Statement of Performance 10. Post-Closing Trial Balance

Chart of Accounts: PERPETUAL INVENTORY SYSTEM


101 CASH, 105 ACCOUNTS RECEIVABLE, 110 MERCHANDISE INVENTORY, 115 SUPPLIES,
120 EQUIPMENT, 201 ACCOUNTS PAYABLE, 205 NOTES PAYABLE, 301 ADVINCULA CAPITAL,
305 ADVINCULA DRAWINGS, 401 SALES, 405 SALES RETURNS AND ALLOWANACES,
415 SALES DISCOUNT, 501 SALARIES EXPENSE, 505 UTILITIES EXPENSE, 510 ADVERTISING EXPENSE,
515 RENT EXPENSE 520 FREIGHT-OUT, 506 COST OF GOODS SOLD, 600 INCOME SUMMARY
Required:
1. Journal Entries 6. Statement of Financial Position
2. Ledger 7. Statement of Cash Flows
3. Trial Balance 8. Closing Entries
4. Statement of Performance 9. Post-Closing Trial Balance
5. Statement of Equity

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