Merchandising Problem "Periodic Inventory System (Sample Problem)
Merchandising Problem "Periodic Inventory System (Sample Problem)
Merchandising Problem "Periodic Inventory System (Sample Problem)
Lovelove Supplies Unlimited is a merchandising business the commence its operation on June 1, 2016. It is
owned by Mr. Micko Gonzales. It uses a “Periodic Inventory System”. The transaction for the month of June.
1 Mr. Gonzales deposited P100, 000 in Metrobank in the name of the business, Lovelove Supplies
Unlimited.
2 Bought a computer on account P20, 000.
3 Purchased merchandise, P35, 000 from Nice Traders. Terms: FOB shipping point; 3/10,n/30.
5 Acquired office supplies in cash P2, 500.
6 Sold merchandise on account to Hate Company, P61, 000, Terms: FOB Shipping point; 2/10,n/30.
8 Paid the amount due to Nice Traders.
8 Paid RM Freight P1,500 for delivering merchandise purchase last June 3.
10 Purchase merchandise from Lockheart Company, P30, 000.
11 Received returns from Hate Company, P7, 500.
12 Received payment from Hate Company less return and discounts.
13 Received refund for poor quality merchandise purchase on June 10 amounting to 4, 000.
14 Borrowed P25, 000 from Metrobank by issuing a note.
15 Paid salaries, P21, 000.
16 Sold merchandise on account to January Company, P60, 000. Terms: FOB destination; 2/10,n/30. Cost
of merchandise P30, 000.
16 Paid P2, 000 freight charges on the sale of June 16.
19 Purchased P32, 000 of merchandise from Lockheart Company on account. Terms: FOB destination;
3/10,n/30.
20 Returned P3, 000 of merchandise purchased on June 19.
23 Sold merchandise costing P27, 000 for cash.
25 Acquired supplies on account, P4, 600.
26 Made refunds to cash customer for defective merchandise P3, 000.
28 Mr. Gonzales withdrew P20, 000 from the business.
30 Paid the following operating expenses: salaries P22, 250, rent P5, 000, advertising P2, 500 and utilities
P1, 890.
30 The ending inventory of Lovelove Supplies Unlimited amounted to P8, 200.
Chart of Accounts:
101 Cash, 105 Accounts Receivable, 115 Merchandise Inventory, 120 Supplies, 125 Equipment, 201 Accounts
Payable, 205 Notes Payable, 301 Gonzales Capital, 305 Gonzales Drawings, 401 Sales, 405 Sales Returns &
Allowances, 410 Sales Discount, 501 Purchases, 505 Purchases Returns & Allowances, 510 Purchase
Discounts, 515 Freight In, 520 Advertising Expense, 525, Rent Expense, 530 Salaries Expense, 535 Utilities
Expense, 540 Freight Out, 605 Income Summary
Required:
1. Journal Entries
2. Ledger
3. Trial Balance
4. Statement of Cost of Goods Sold
5. Statement of Performance
6. Statement of Equity
7. Statement of Financial Position
8. Statement of Cash Flows
9. Closing Entries
10. Post – Closing Trial Balance
1.
GENERAL JOURNAL (SAMPLE FORMAT)
GENERAL JOURNAL
PAGE NUMBER GJ-1
With Explanations
GENERAL JOURNAL
PAGE NUMBER GJ-2
With Explanations
GENERAL JOURNAL
PAGE NUMBER GJ-3
With Explanations
GENERAL LEDGER
PAGE NUMBER GL-1
Account 101 CASH
Date Item Post Debit Credit Balance
2016 Debit Credit
June 1 Investment GJ-1 100000 100000
5 Supplies GJ-1 2500 97500
8 Merchandise GJ-1 33950 63550
8 Freight-In GJ-1 1500 62050
10 Merchandise GJ-1 30000 32050
12 From Receivables GJ-2 52430 84480
13 Purchases Returns GJ-2 4000 88480
14 Borrowed money GJ-2 25000 113480
15 Salaries GJ-2 21000 92480
16 Freight-Out GJ-2 2000 90480
23 Sales GJ-2 27000 117480
26 Sales Returns GJ-3 3000 114480
28 Drawings GJ-3 20000 94480
30 Operating Expenses GJ-3 31640 62480
GENERAL LEDGER
PAGE NUMBER GL-2
Account 125 EQUIPMENT
Date Item Post Debit Credit Balance
2016 Debit Credit
June 2 Equipment GJ-1 20000 20000
GENERAL LEDGER
PAGE NUMBER GL-3
Account 305 GONZALES DRAWINGS
Date Item Post Debit Credit Balance
2016 Debit Credit
June 28 Withdrawals GJ-3 20000 20000
30 Closing GJ-4 20000 0
GENERAL LEDGER
PAGE NUMBER GL-4
Account 501 PURCHASES
Date Item Post Debit Credit Balance
2016 Debit Credit
June 3 Merchandise GJ-1 35000 35000
10 Merchandise GJ-1 30000 65000
19 Merchandise GJ-2 32000 97000
30 Closing GJ-4 97000 0
GENERAL LEDGER
PAGE NUMBER GL-5
Account 520 ADVERTISING EXPENSE
Date Item Post Debit Credit Balance
2016 Debit Credit
June 30 Advertising Expense GJ-3 2500 2500
30 Closing GJ-4 2500 0
GENERAL LEDGER
PAGE NUMBER GL-6
Account 540 FREIGHT-OUT
Date Item Post Debit Credit Balance
2016 Debit Credit
June 16 Freight-Out GJ-2 2000 2000
30 Closing GJ-4 2000 0
Account
Date Item Post Debit Credit Balance
Debit Credit
Account
Date Item Post Debit Credit Balance
Debit Credit
TRIAL BALANCE (SAMPLE FORMAT)
P 334650 P 334650
TOTALS
STATEMENT OF COST OF GOODS SOLD (SAMPLE FORMAT)
Beginning Inventory P0
Add: Purchases 97000
Freight-In 1700
98500
Less: Purchases Returns and Allowances (7000)
Purchase Discounts (1050)
Net Cost of Purchases 90450
Goods Available for Sale 90450
Less: Ending Inventory, June 30, 2016 (8200)
Cost of Goods Sold P 82250
STATEMENT OF PERFORMANCE & STATEMENT OF EQUITY
(SAMPLE FORMAT)
(IN PESOS)
ASSETS
Current Assets
Cash P 62840
Accounts Receivable 60000
Merchandise Inventory 8200
Supplies 7100
Total Current Assets 138140
Non-Current Assets
Equipment 20000
TOTAL ASSETS P 158140
LIABILITIES
Current Liabilities
Accounts Payable P 53600
Non-Current Liabilities
Notes Payable 25000
OWNER’S EQUITY
Gonzales Capital 79540
TOTAL LIABILITIES & OWNER’S EQUITY P 158140
STATEMENT OF CASH FLOWS (SAMPLE FORMAT)
GENERAL JOURNAL
PAGE NUMBER GJ-4
With Explanations
P 158140 P 158140