The Medina Corporation, a Vat-exempt company, had the following transactions for July 2023, the first month of
operation. The company uses the perpetual inventory system. Cash discount and purchase discount are recorded as
miscellaneous income.
July 1 The principal owner Winny Medina and other investors invested P60,000,000 for 5,000,000 number of shares
with par value of P10 ordinary shares of the Jimmy corporation. The whole is directly deposited to corporation bank
account.
July 1 A Redeemable 5 years Bonds Payable was issued in the amount of P3,000,000 with monthly interest 1% on
principal amount, payable monthly. The proceeds was deposited to Medina Corporation bank account
July 1 Cash purchase of accident insurance policy for P120, 000, which will be expired on June 30, 2024. Check# 1001.
July 2 Purchased Product A for P4,000,000, , cost P400 per unit from Peachy Company on account. Terms 2/10,1/15,
n/30; bill dated July 2. Selling price per unit P800.
July 3 Purchased Equipment for P4,800,000 on account, terms 2/30,n/60 from Ting Equipment Company. The useful
life of the equipment is 10 years or 120 months. Bill date is July 3.
July 4 Purchased Product B for P4,000,000, , cost P500 per unit from Buraro Company on account. Terms 2/10,1/15,
n/30; bill date July 4. Selling price per unit P750.
July 5 Purchased Product C for P2,400,000, , cost P300 per unit from Ghan Company on account. Terms 2/10,1/15,
n/30; bill date July 5. Selling price per unit P600.
July 6 Returned 1,000 units of product A and Peachy give credit memo.
July 6 Sold Product A on account to Khim, Inc., for P1,600,000 Invoice #501. Terms: 2/10, 1/15, n/30; invoice dated
July 6, 2023.
July 6 Paid Power Realty rent for the month, P300,000, Check#1002.
July 11 Sold Product B on account to Karim Inc., for P1,500,000 invoice #502. Terms: 2/10, 1/15, n/30; invoice dated
July 11, 2023.
July 12 Sold Product C on account to Booo Inc., for P2,400,000 invoice #503. Terms: 2/10, 1/15, n/30; invoice dated
July 12, 2023.
July 13 Karim Inc. returned 100 units of Product B and give credit memo to Karim.
July 14 Purchased office supplies for cash, P400,000 Check #1003.
July 15 Paid the amount owe to Peachy Company. Check #1004.
July 15 Paid the amount owe to Buraro Company. Check#1005.
July 22 Received the amount owe by Khim . Inc.
July 22 Received the amount owe by Karim
July 22 Received the amount owe by Boo.
July 23 Deposits the amount received in July 22 to bank.
July 23 Sold Product A on account to Macmod, Inc., for P400,000 Invoice #504. Terms: 2/10, 1/15, n/30; invoice dated
July 23, 2023.
July 24 Sold Product B on account to Rexie Inc., for P375,000 invoice #505. Terms: 2/10, 1/15, n/30; invoice dated July
24, 2023.
July 25 Sold Product C on account to Booo Inc., for P600,000 invoice #506. Terms: 2/10, 1/15, n/30; invoice dated July
25, 2023.
July 31 Paid Ting Equipment. Check#1006.
July 31 Record equipment depreciation expense.
July 31 Record insurance expense for the month of July 2023.
July 31 The remaining office supplies on hand amounting to P250,000.
July 31 The cash sales for the month of July are the following:
Product A P600,000
Product B P375,000
Product C P300,000
July 31 Record interest payment for July 2023. Check #1007
July 31 Record P1,000 interest income from bank deposits.
Use the following accounts for journal entries and financial statements preparation:
1. 101- Cash in bank 2. 102- Accounts receivable 3. 103- Inventory 4. 104- Inventory B 5. 105 - Inventory C
6. 106 -Prepaid insurance 7. 107-Office supplies 8 108 -Equipment 9. 109 - Accumulated depreciation-
equipment 10. 201- Accounts payable 11. 202- Bonds payable 12. 301 -Ordinary share 13. 302-Share
premium 14. 303-Accumulated profits 15. 401 -Sales 16. 402- Sales discount 17. 403- Sales return
18. 404-Miscellaneous income. 19. 405-Interest income . 20. 501- Cost of goods sold 21. 502- Depreciation
expense 22. 503-Insurance expense 23. 504- Office supplies expense 24. 505-Rent expense
25. 506- Interest expense
Requirements:
1. Prepare journal entries using table in Microsoft excel worksheet. Use pivot table for general ledger and trial
balance., balance sheet . Use Vlookup for income statement and balance sheet.
2. On each journal classify what is the journal type . Use the following label:
Cash receipts journal
Cash disbursement journal
Purchase journal
Sales journal
General journal
