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The document summarizes the periodic transactions of a business from March 1-30. It provides details of cash payments for supplies, equipment, purchases and expenses. It also records cash receipts from sales, collection of accounts receivable and withdrawals by the owner. The general journal and trial balance are provided to show accounting entries for the transactions.

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Gly Balmeo Mataya
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100 views17 pages

Attachment

The document summarizes the periodic transactions of a business from March 1-30. It provides details of cash payments for supplies, equipment, purchases and expenses. It also records cash receipts from sales, collection of accounts receivable and withdrawals by the owner. The general journal and trial balance are provided to show accounting entries for the transactions.

Uploaded by

Gly Balmeo Mataya
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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PERIODIC METHOD

March 1 invested 50,000 cash to start the business

March 2 bought supplies for 5,000 in cash

March 5 acquired equipment for 15,000 in cash

March 8 purchased merchandise on account totalling 15,500, 2/10, n/30

March 9 paid freight charge worth 500

March 12 returned merchandise costing 1,250 (part of the 15,500 purchase)

March 14 paid merchandise purchased on March 8

March 15 paid salaries, 3,000

March 17 sold merchandise on account totalling 25,700, 2/10, n/30

March 18 paid freight charge worth 900

March 20 customer returned merchandise costing 1,050 that had been sold on account.

March 25 collected cash from accounts receivable.

March 29 Owner made cash withdrawals amounting 8,000

March 30 paid the following expense; advertising expense-2,000, salaries expense 3,000, utilities
expense- 1,300.

March 30 Sold merchandise on account amounting 5,250

March 30 purchased merchandise on account worth 7,500

March 30 ending inventory- 7,000

General Journal (GJ-J1)

March 1 Cash 50,000


L, Capital 50,000

March 2 Supplies 5,000


Cash 5,000
March 5 Equipment 15,000
Cash 15,000

March 8 Purchases 15,500


Accounts Payable 15,500

March 9 Freight In 500


Cash 500

March 12 Accounts Payable 1,250


Purchase return 1,250

March 14 Accounts Payable 14,250


Purchase discount 285
Cash 13,965

March 15 Salaries Expense 3,000


Cash 3,000

March 17 Accounts Receivable 25,700


Sales 25,700

March 18 Freight out 900


Cash 900

March 20 Sales return 1,050


Accounts Receivable 1,050

March 25 Cash 24,157


Sales discount 493
Accounts Receivable 24,650

March 29 L, Drawings 8,000


Cash 8,000

March 30 Advertising Expense 2,000


Salaries expense 3,000
Utilities expense 1,300
Cash 6,300

Accounts receivable 5,250


Sales 5,250

Purchases 7,500
Accounts Payable 7,500
Account Title: 101 Account Number: Cash
Date Particulars Post Debit Credit Debit Credit
March 1 50,000 50,000
March 2 5,000 45,000
March 5 15,000 30,000
March 9 500 29,500
March14 13,965 15,535
March 15 3,000 12,535
March 18 900 11,635
March 25 24,157 35,792
March 29 8,000 27,792
March 30 6,300 21,492

Account Title: 110 Account Number: Accounts Receivable


Date Particulars Post Debit Credit Debit Credit
March 17 25,700 25,700
March 20 1,050 24,650
March 25 24,650 0
March 30 5,250 5,250

Account Title: 120 Account Number: Office Supplies


Date Particulars Post Debit Credit Debit Credit
March 2 5,000 5,000

Account Title: 130 Account Number: Merchandise Inventory


Date Particulars Post Debit Credit Debit Credit
March 30 7,000 7,000

Account Title: 150 Account Number: Office Equipment


Date Particulars Post Debit Credit Debit Credit
March 5 15,000 15,000

Account Title: 201 Account Number: Accounts Payable


Date Particulars Post Debit Credit Debit Credit
March 8 15,500 15,500
March 12 1,250 14,250
March 14 14,250 0
March 30 7,500 7,500
Account Title: 301 Account Number: L, Capital
Date Particulars Post Debit Credit Debit Credit
March 1 50,000 50,000
March 30 8,000 42,000
4,242 46,242

Account Title: 310 Account Number: L, Drawings


Date Particulars Post Debit Credit Debit Credit
March 29 8,000 8,000
March 30 8,000 0

Account Title: 400 Account Number: Sales


Date Particulars Post Debit Credit Debit Credit
March 17 25,700 25,700
March 30 5,250 30,950
30,950 0

Account Title: 401 Account Number: Sales Returns and allowances


Date Particulars Post Debit Credit Debit Credit
March 20 1,050 1,050
March 30 1,050 0

Account Title: 402 Account Number: Sales Discount


Date Particulars Post Debit Credit Debit Credit
March 25 493 493
March 30 493 0

Account Title: 500 Account Number: Purchases


Date Particulars Post Debit Credit Debit Credit
March 8 15,500 15,500
March 30 7,500 23,000
23,000 0

Account Title: 501 Account Number: Purchase return and allowances


Date Particulars Post Debit Credit Debit Credit
March 12 1,250 1,250
March 30 1,250 0
Account Title: 502 Account Number: Purchase Discount
Date Particulars Post Debit Credit Debit Credit
March 14 285 285
March 30 285 0

Account Title: 503 Account Number: Freight In


Date Particulars Post Debit Credit Debit Credit
March 9 500 500
March 30 500 0

Account Title: 600 Account Number: Advertising Expense


Date Particulars Post Debit Credit Debit Credit
March 30 2,000 2,000
2,000 0

Account Title: 601 Account Number: Freight out


Date Particulars Post Debit Credit Debit Credit
March 18 900 900
900 0

Account Title: 602 Account Number: Salaries Expense


Date Particulars Post Debit Credit Debit Credit
March 15 3,000 3,000
March 30 3,000 6,000
6,000 0

Account Title: 603 Account Number: Utilities Expense


Date Particulars Post Debit Credit Debit Credit
March 30 1,300 1,300
1,300 0

Account Title: 700 Account Number: Income Summary


Date Particulars Post Debit Credit Debit Credit
March 30 14,965
19,207
4,242 0
TRIAL BALANCE

Cash 21,492
Accounts Receivable 5,250
Supplies 5,000
Merchandise Inventory 0
Equipment 15,000
Accounts Payable 7,500
L, Capita 50,000
L, Drawings 8,000
Sales 30,950
Sales returns and allowances 1,050
Sales discount 493
Purchases 23,000
Purchases return and allowance 1,250
Purchase discount 285
Freight In 500
Advertising Expense 2,000
Freight out 900
Salaries Expense 6,000
Utilities Expense 1,300

Total 89,985 89,985

COGS

Beg. Inventory 0
Purchases 23,000
Less:
Purchase returns and allowances 1,250
Purchase discount 285
Net Purchases 21,465
Add: Freight In 500
Net cost of purchases 21,965
Goods available for sale 21,965
Less: Inventory, end 7,000
Cost of goods sold 14,965
Income Statement

Sales 30,950
Less:
Sales return and allowance 1,050
Sales discount 493
Net Sales 29,407
Less:
Cost of goods sold 14,965
Gross profit 14,442
Less: Expenses
Advertising 2,000
Freight 900
Salaries 6,000
Utilities 1,300
Net Income 4,242

Statement of changes in owners’ equity

L, Capital. 03/01/2018 50,000


Add: Additional Investment 0
Net Income 4,242
Total 54,242
Less: Withdrawal 8,000
L, Capital, 03/30/2018 46,242

Post-closing trial balance

Cash 21,492
Accounts Receivable 5,250
Supplies 5,000
Merchandise inventory 7,000
Equipment 15,000
Accounts Payable 7,500
L. Capital 46,242

Total 53,742 53,742


Statement of Financial Position

ASSET
Current:
Cash 21,492
Accounts Receivable 5,250
Supplies 5,000
Merchandise inventory 7,000
Total Current Asset 38,742
Non-current Asset
Equipment 15,000
Total Asset 53,742

LIABILITIES
Current:
Accounts Payable 7,500
EQUITY
L, Capital 46,242
Total Liabilities and Equity 53,742

General Journal (GJ-J2)

Merchandise Inventory 7,000


Purchase returns and allowances 1,250
Purchase discount 285
Income Summary 14,965
Purchases 23,000
Freight In 500

Sales 30,950
Sales Returns and allowances 1,050
Sales discount 493
Advertising Expense 2,000
Freight out 900
Salaries Expense 6,000
Utilities Expense 1,300
Income Summary 19,207

L, Capital 8,000
L, Drawings 8,000

Income Summary 4,242


L, Capital 4,242
Statement of Cash Flows

Cash Inflow form Operating Activity


Cash from owner 50,000
Cash form customer 24,157
Cash Outflow from Operating Activity
Payment for merchandise (14,465)
Payment for expenses (15,200)
Cash taken by the owner (8,000)
Net cash provided (used) from operating activity 36,492
Cash inflow from investing activity 0
Cash outflow from investing activity
Payment for equipment (15,000)
Net cash provided (used) from investing activity (15,000)
Cash Inflow form Financing Activity 0
Cash Outflow from financing Activity 0
Net cash provided (used) from financing activity 0
Net increase (decrease) in Cash 21,492
Cash at the beginning of the period 0
Cash at the end of the period 21,492
PERPETUAL METHOD

March 1 invested 50,000 cash to start the business

March 2 bought supplies for 5,000 in cash

March 5 acquired equipment for 15,000 in cash

March 8 purchased merchandise on account totalling 15,500, 2/10, n/30

March 9 paid freight charge worth 500

March 12 returned merchandise costing 1,250 (part of the 15,500 purchase)

March 14 paid merchandise purchased on March 8

March 15 paid salaries, 3,000

March 17 sold merchandise on account totalling 25,700, 2/10, n/30

March 18 paid freight charge worth 900

March 20 customer returned merchandise amounting 1,050 (900 cost) that had been sold on
account.

March 25 collected cash from accounts receivable.

March 29 Owner made cash withdrawals amounting 8,000

March 30 paid the following expense; advertising expense-2,000, salaries expense 3,000, utilities
expense- 1,300.

March 30 Sold merchandise on account amounting 5,250, Cost- 4,750

March 30 purchased merchandise on account worth 7,500

General Journal (GJ-J1)

March 1 Cash 50,000


L, Capital 50,000

March 2 Supplies 5,000


Cash 5,000

March 5 Equipment 15,000


Cash 15,000
March 8 Inventory 15,500
Accounts Payable 15,500
March 9 Inventory 500
Cash 500

March 12 Accounts Payable 1,250


Inventory 1,250

March 14 Accounts Payable 14,250


Inventory 285
Cash 13,965

March 15 Salaries Expense 3,000


Cash 3,000

March 17 Accounts Receivable 25,700


Sales 25,700

Cost of goods sold 12.800


Inventory 12,800

March 18 Freight out 900


Cash 900

March 20 Sales return 1,050


Accounts Receivable 1,050

Inventory 900
Cost of Goods Sold 900

March 25 Cash 24,157


Sales discount 493
Accounts Receivable 24,650

March 29 L, Drawings 8,000


Cash 8,000

March 30 Advertising Expense 2,000


Salaries expense 3,000
Utilities expense 1,300
Cash 6,300

Accounts receivable 5,250


Sales 5,250

Cost of goods sold 2,565


Inventory 2,565
Inventory 7,500
Accounts Payable 7,500

Account Title: 101 Account Number: Cash


Date Particulars Post Debit Credit Debit Credit
March 1 50,000 50,000
March 2 5,000 45,000
March 5 15,000 30,000
March 9 500 29,500
March14 13,965 15,535
March 15 3,000 12,535
March 18 900 11,635
March 25 24,157 35,792
March 29 8,000 27,792
March 30 6,300 21,492

Account Title: 110 Account Number: Accounts Receivable


Date Particulars Post Debit Credit Debit Credit
March 17 25,700 25,700
March 20 1,050 24,650
March 25 24,650 0
March 30 5,250 5,250

Account Title: 120 Account Number: Office Supplies


Date Particulars Post Debit Credit Debit Credit
March 2 5,000 5,000

Account Title: 130 Account Number: Merchandise Inventory


Date Particulars Post Debit Credit Debit Credit
March 8 15,500 15,500
March 9 500 16,000
March 12 1,250 14,750
March 14 285 14,465
March 17 12,800 1,665
March 20 900 2,565
March 30 2,565 0
7,500 7,500

Account Title: 150 Account Number: Office Equipment


Date Particulars Post Debit Credit Debit Credit
March 5 15,000 15,000
Account Title: 201 Account Number: Accounts Payable
Date Particulars Post Debit Credit Debit Credit
March 8 15,500 15,500
March 12 1,250 14,250
March 14 14,250 0
March 30 7,500 7,500

Account Title: 301 Account Number: L, Capital


Date Particulars Post Debit Credit Debit Credit
March 1 50,000 50,000
March 30 8,000 42,000
4,742 46,742

Account Title: 310 Account Number: L, Drawings


Date Particulars Post Debit Credit Debit Credit
March 29 8,000 8,000
March 30 8,000 0

Account Title: 400 Account Number: Sales


Date Particulars Post Debit Credit Debit Credit
March 17 25,700 25,700
March 30 5,250 30,950
30,950 0

Account Title: 401 Account Number: Sales Returns and allowances


Date Particulars Post Debit Credit Debit Credit
March 20 1,050 1,050
March 30 1,050 0

Account Title: 402 Account Number: Sales Discount


Date Particulars Post Debit Credit Debit Credit
March 25 493 493
March 30 493 0

Account Title: 501 Account Number: Cost of Goods Sold


Date Particulars Post Debit Credit Debit Credit
March 17 12,800 12,800
March 20 900 11,900
March 30 2,565 14,465
14,465 0
Account Title: 600 Account Number: Advertising Expense
Date Particulars Post Debit Credit Debit Credit
March 30 2,000 2,000
2,000 0

Account Title: 601 Account Number: Freight out


Date Particulars Post Debit Credit Debit Credit
March 18 900 900
900 0

Account Title: 602 Account Number: Salaries Expense


Date Particulars Post Debit Credit Debit Credit
March 15 3,000 3,000
March 30 3,000 6,000
6,000 0

Account Title: 603 Account Number: Utilities Expense


Date Particulars Post Debit Credit Debit Credit
March 30 1,300 1,300
1,300 0

Account Title: 700 Account Number: Income Summary


Date Particulars Post Debit Credit Debit Credit
March 30 14,465
19,207
4,742 0
Trial Balance

Cash 21,492
Accounts Receivable 5,250
Supplies 5,000
Merchandise Inventory 7,500
Equipment 15,000
Accounts Payable 7,500
L, Capital 50,000
L, Drawings 8,000
Sales 30,950
Sales Returns and Allowances 1,050
Sales Discount 493
Cost of goods Sold 14,465
Advertising Expense 2,000
Freight out 900
Salaries Expense 6,000
Utilities Expense 1,300

Total 88,450 88,450

Income Statement

Sales 30,950
Less:
Sales return and allowance 1,050
Sales discount 493
Net Sales 29,407
Less:
Cost of goods sold 14,465
Gross profit 14,942
Less: Expenses
Advertising 2,000
Freight 900
Salaries 6,000
Utilities 1,300
Net Income 4,742

Statement of changes in owners’ equity

L, Capital. 03/01/2018 50,000


Add: Additional Investment 0
Net Income 4,472
Total 54,472
Less: Withdrawal 8,000
L, Capital, 03/30/2018 46,742
Post-closing trial balance

Cash 21,492
Accounts Receivable 5,250
Supplies 5,000
Merchandise inventory 7,500
Equipment 15,000
Accounts Payable 7,500
L. Capital 46,742

Total 54,242 54,242

Statement of Financial Position

ASSET
Current:
Cash 21,492
Accounts Receivable 5,250
Supplies 5,000
Merchandise inventory 7,500
Total Current Asset 39,242
Non-current Asset
Equipment 15,000
Total Asset 54,242

LIABILITIES
Current:
Accounts Payable 7,500
EQUITY
L, Capital 46,742
Total Liabilities and Equity 54,242
General Journal (GJ-J2)

Income Summary 14,465


Cost of goods sold 14,465

Sales 30,950
Sales Returns and allowances 1,050
Sales discount 493
Advertising Expense 2,000
Freight out 900
Salaries Expense 6,000
Utilities Expense 1,300
Income Summary 19,207

L, Capital 8,000
L, Drawings 8,000

Income Summary 4,742


L, Capital 4,742

Statement of Cash Flows

Cash Inflow form Operating Activity


Cash from owner 50,000
Cash form customer 24,157
Cash Outflow from Operating Activity
Payment for merchandise (14,465)
Payment for expenses (15,200)
Cash taken by the owner (8,000)
Net cash provided (used) from operating activity 36,492
Cash inflow from investing activity 0
Cash outflow from investing activity
Payment for equipment (15,000)
Net cash provided (used) from investing activity (15,000)
Cash Inflow form Financing Activity 0
Cash Outflow from financing Activity 0
Net cash provided (used) from financing activity 0
Net increase (decrease) in Cash 21,492
Cash at the beginning of the period 0
Cash at the end of the period 21,492

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