Merchandising
Business Transactions
Elmer Gloo has just started a new bookstore on the 1st of October called, Halik-
A-Book. He decides to count inventory at the end of a quarter. Halik-A-Book uses the
Periodic Inventory System. All of the books are purchased and sold on account unless it
is stated differently. His company also expenses their inventory using the FIFO method.
Chart of Accounts
Normal Debit Balance Normal Credit Balance
Income Summary
Cash Purchase Returns & Allowances
Accounts Receivable Accounts Payable
Purchases Elmer Gloo, Capital
Equipment Sales
Furnitures & Fixtures Unearned Revenue
Supplies Purchase Discount
Elmer Gloo, Drawing
Marketing Expense
Utilities Expense
Supplies Expense
Salaries Expense
Rent Expense
Insurance Expense
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whole or in part, is strictly prohibited unless made with prior written consent from AC Education Inc./iPeople, Inc. Violation or noncompliance
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Freight In
Freight Out
Sales
Sales Discount
Prepaid Insurance
1. On October 7, Elmer Gloo invested P450,000 cash into his business, Halik-A-Book
Bookstore.
2. On October 9, he buys furniture for P80,000 cash.
3. On October 10, he buys a POS system for the business worth P15,000 cash.
4. On October 13, he purchases 400 books at P500 each book to be added to his
inventory.
5. On October 17, he bought office supplies worth P7,500 cash.
6. On October 20, he sold 100 books at P1000 each.
7. On October 21, he pays for the book order.
8. On October 25, he purchases another 200 books at P600 each to be added to his
inventory.
9. On October 27, he receives the payment for the books he sold.
10. On October 27, he pays for electricity and water worth P3,000 cash.
11. On October 30, he paid for his employees’ salaries worth P40,000.
12. On October 30, he pays for rent worth P15,000 cash.
13. On November 1, he pays for 6 months of insurance worth P60,000 cash.
14. On November 7, he sells 200 books at P1,000 each.
15. On November 11, he pays for the books he ordered.
16. On November 12, he purchases 500 additional books at P600 each.
17. On November 14, he receives payment for the books he sold.
18. On November 20, he sells 300 books at P1,400 each for cash.
19. On November 27, he pays for water and electricity worth P3,000.
20. On November 30, he pays for the salaries of his employees worth P40,000.
21. On November 30, he pays for rent worth P15,000 cash.
22. On December 10, he sells 300 books at P1,400 each for cash.
23. On December 10, he pays for the books he bought for P300,000.
24. On December 27, he pays for water and electricity worth P40,000.
This document/presentation contains proprietary and confidential information. Reproduction, redistribution, or forwarding to any third party, in
whole or in part, is strictly prohibited unless made with prior written consent from AC Education Inc./iPeople, Inc. Violation or noncompliance
shall be dealt with according to law.
25. On December 30, he pays for the salaries of his employees worth P40,000.
26. On December 30, he pays for rent worth P15,000 cash.
27. On December 31, he performs an inventory count and finds 200 books left worth
P120,000.
This document/presentation contains proprietary and confidential information. Reproduction, redistribution, or forwarding to any third party, in
whole or in part, is strictly prohibited unless made with prior written consent from AC Education Inc./iPeople, Inc. Violation or noncompliance
shall be dealt with according to law.
