Riverdale Mechanical Supply Chart of Accounts includes the following:

101 Cash 401 Sales

112 Accounts Receivable 412 Sales Returns and Allowances
120 Merchandise Inventory 420 Sales Discount
126 Supplies 522 Cost of Goods Sold
155 Equipment 601 Advertising Expenses
201 Accounts Payable 644 Freight Out
210 Notes Payable 701 Salaries
301 Mr. Lodge, Capital 710 Rent Expense
310 Mr. Lodge, Drawings 720 Utilities
800 Income Summary

Riverdale Mechanical Supply completed the following merchandising transactions in the month of May 2017 as follows:

Date Transactions
1 Mr. Lodge, the owner started the Riverdale Mechanical Supply by investing Php 100,000
1 Purchased merchandise on account from Blossoms Supply Co. Php 30,000, terms 2/10, n/30.
3 Sold Php 15,000 worth of goods for cash. The merchandise sold had a cost of Php 8,000.
5 Sold Php 12,000 worth of goods on credit to Topaz Lines Inc. with credit terms 2/10, n/30 FOB Destination.The Cost for
6 Paid Php 500 for the delivery of goods to Topaz Lines. Inc
6 Received Php 1,200 credit memo from Blossoms Supply Co. for the return of damaged goods
10 Purchased merchandise for cash, Php 25,000
11 Made full payment to Blossoms Supply Co.
11 Purchased supplies for cash Php 2,000
13 Purchased merchandise for cash, Php 30,000
14 Made sales to B. Cooper Shipping for Php 24,000 with credit term 2/10, n/30 FOB Destination. The goods cost Php 12,7
15 Received payment from Topaz Lines Inc. regarding the May 5 sales.
15 Paid salaries of Php 6,500.
16 Issued a credit memo for Php 1,000 to B. Cooper Shipping for the return of damaged goods. The returned goods is valu
17 Received refund for poor quality merchandise from cash purchases Php 700
18 Mr. Lodge withdrew cash from the business Php 12,000
19 Purchased office equipment for cash Php 15,000
19 Purchased merchandise from Andrews Enterprises on account Php 18,000, credit terms 2/10, n/30 FOB Shipping Point
20 The business made a long-term loan at Southside Bank and issued promissory note in amount of Php 50,000
22 Paid freight for the purchase of merchandise Php 750
25 Sold merchandise for cash Php 33,300. Cost of sold Php 18,300
25 Made partial payment to Andrews Enterprises Php 10,000 no discount for partial payment made
29 Made refunds to cash customers for defective merchandise Php 1,500, costing Php 900
30 Received payment from B. Cooper Shipping
30 Sold merchandise on account Php 13,500. Cost of goods php 7,200
31 Paid the following operating expenses for the month: Salaries Php 6,500; Rent Php 7,000; Utilities php 1,500; and adve
nth of May 2017 as follows:

n/30 FOB Destination.The Cost for these goods was P6,500

tination. The goods cost Php 12,700

goods. The returned goods is valued Php 600 and were returned to inventory

ms 2/10, n/30 FOB Shipping Point

amount of Php 50,000

000; Utilities php 1,500; and advertising Php 1,200

 Riverdale Mechanical Supply
GENERAL JOURNAL
For the Month Ended May 2017

Page 1
DATE PARTICULARS PR DEBIT CREDIT
2017
May 1 Cash 101 100,000
Mr. Lodge, Capital 301 100,000
To record initial investments
#
1 Merchandise Inventory 120 30,000
Accounts Payable 201 30,000
To record purchase of merchandise on account
#
3 Cash 101 15,000
Sales 401 15,000
To record cash sales
#
Cost of Goods Sold 522 8,000
Merchandise Inventory 120 8,000
To record cost of merchandise sold
#
5 Accounts Receivable 112 12,000
Sales 401 12,000
To record sales on account
#
Cost of Goods Sold 522 6,500
Merchandise Inventory 120 6,500
To record cost of merchandise sold
#
6 Freight Out 644 500
Cash 101 500
To record delivery expense
#
6 Accounts Payable 201 1,200
Merchandise Inventory 120 1,200
To record refund from supplier
#
10 Merchandise Inventory 120 25,000
Cash 101 25,000
To record purchase of merchandise
#
11 Accounts Payable 201 28,800
Merchandise Inventory 120 576
Cash 101 28,224
To record payment of account
#
11 Supplies 126 2,000
Cash 101 2,000
To record purchase of supplies
#
13 Merchandise Inventory 120 30,000
Cash 101 30,000
To record purchase of merchandise
#
Page 2
DATE
14 Accounts Receivable 112 24,000
Sales 401 24,000
To record sales on account
#
Cost of Goods Sold 522 12,700
Merchandise Inventory 120 12,700
To record cost of merchandise sold
#
15 Cash 101 11,760
Sales Discount 420 240
Accounts Receivable 112 12,000
To record collection of accounts
#
15 Salaries 701 6,500
Cash 101 6,500
To record payment of salaries
#
16 Sales Returns and Allowances 412 1,000
Accounts Receivable 101 1,000
To record refund to customers (B. Cooper)
#
Merchandise Inventory 120 600
Cost of Goods Sold 522 600
To record cost of merchandise returned
#
17 Cash 101 700
Merchandise Inventory 522 700
To record refund from suppliers
#
18 Mr. Lodge, Drawings 310 12,000
Cash 101 12,000
To record owner's withdrawal
#
19 Equipment 155 15,000
Cash 101 15,000
To record purchase of equipment
#
19 Merchandise Inventory 120 18,000
Accounts Payable 201 18,000
To record purchase of merch. on account
#
20 Cash 101 50,000
Notes Payable 210 50,000
To record bank loan with issued note
#

Page 3
DATE
22 Merchandise Inventory 120 750
Cash 101 750
To record payment of delivery
#
25 Cash 101 33,300
Sales 401 33,300
To record cash sales
#
Cost of Goods Sold 522 18,300
Merchandise Inventory 120 18,300
To record cost of merchandise sold
#
25 Accounts Payable 201 10,000
Cash 101 10,000
To record partial payment of account
#
29 Sales Returns and Allowances 412 1,500
Cash 101 1,500
To record refund to customers
#
Merchandise Inventory 120 900
Cost of Goods Sold 522 900
To record cost of merchandise returned
#
30 Cash 101 23,000
Accounts Receivable 112 23,000
To record collection of account
#
30 Accounts Receivable 112 13,500
Sales 401 13,500
To record sales on account
#
Cost of Goods Sold 522 7,200
Merchandise Inventory 120 7,200
To record cost of merchandise sold
#
31 Salaries 701 6,500
Rent Expense 710 7,000
Utilities 720 1,500
Advertising Expenses 601 1,200
Cash 101 16,200
To record payment of operating expenses
#
 Riverdale Mechanical Supply
GENERAL LEDGER
For the Month Ended May 2017

101 Cash BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2017
May 1 Initial Investments GJ1 100,000 100,000
3 Cash sales GJ1 15,000 115,000
6 Delivery Expense GJ1 500 114,500
10 Purchase of merchandise GJ1 25,000 89,500
11 Payment of account GJ1 28,224 61,276
11 Purchase of supplies GJ1 2,000 59,276
13 Purchase of merchandise GJ1 30,000 29,276
15 Collection of accounts GJ2 11,760 41,036
15 Payment of salaries GJ2 6,500 34,536
17 Refund from Suppliers GJ2 700 35,236
18 Owner's withdrawal GJ2 12,000 23,236
19 Purchase of equipment GJ2 15,000 8,236
20 Bank loan with issued note GJ2 50,000 58,236
22 Payment of Delivery GJ3 750 57,486
25 Cash sales GJ3 33,300 90,786
25 Partial Payment of account GJ3 10,000 80,786
29 Refund to customers GJ3 1,500 79,286
30 Collection of accounts GJ3 23,000 102,286
31 Payment of operating expenses GJ3 16,200 86,086

112 Accounts Receivable BALANCE

DATE PARTICULARS PR DEBIT CREDIT
2017
May 5 Sales on account GJ1 12,000 12,000
14 Sales on account GJ2 24,000 36,000
15 Collection of accounts GJ2 12,000 24,000
16 Refund to customers GJ2 1,000 23,000
30 Collection of accounts GJ3 23,000 -
30 Sales on account GJ3 13,500 13,500

120 Merchandise Inventory BALANCE

DATE PARTICULARS PR DEBIT CREDIT
2017
June 1 Purchase of merchandise on acc. GJ1 30,000 30,000
3 Cost of merchandise sold GJ1 8,000 22,000
5 Cost of merchandise sold GJ1 6,500 15,500
6 Refund from supplier GJ1 1,200 14,300
10 Purchase of merchandise GJ1 25,000 39,300
11 Payment of Account GJ1 576 38,724
13 Purchase of merchandise GJ1 30,000 68,724
14 Cost of merchandise sold GJ2 12,700 56,024
16 Cost of merchandise returned GJ2 600 56,624
17 Refund from supplier GJ2 700 55,924
19 Purchase of merchandise on acc. GJ2 18,000 73,924
22 Payment of delivery GJ3 750 74,674
25 Cost of merchandise sold GJ3 18,300 56,374
29 Cost of merchandise returned GJ3 900 57,274
30 Cost of merchandise sold GJ3 7,200 50,074

126 Supplies BALANCE

DATE PARTICULARS PR DEBIT CREDIT
2017
May 11 Purchase of supplies GJ1 2,000 2,000

155 Equipment BALANCE

DATE PARTICULARS PR DEBIT CREDIT
2017
May 19 Purchase of equipment GJ2 15,000 15,000

201 Accounts Payable BALANCE

DATE PARTICULARS PR DEBIT CREDIT
2017
May 1 Purchase of merchandise on acc. GJ1 30,000 30,000
6 Refund from suppliers GJ1 1,200 28,800
11 Payment of account GJ1 28,800 -
19 Purchase of merchandise on acc. GJ2 18,000 18,000
25 Partial payment of account GJ3 10,000 8,000

210 Notes Payable BALANCE

DATE PARTICULARS PR DEBIT CREDIT
2017
May 20 Bank loan with issued note GJ2 50,000 50,000

301 Mr. Lodge, Capital BALANCE

DATE PARTICULARS PR DEBIT CREDIT
2017
May 1 Initial Investments GJ1 100,000 100,000
31 Closing entry GJ4 20,660 120,660
31 Closing entry GJ4 12,000 108,660

310 Mr. Lodge, Drawings BALANCE

DATE PARTICULARS PR DEBIT CREDIT
2017
May 12 Owner's withdrawal GJ2 12,000 12,000
31 Closing entry GJ4 12,000 -

401 Sales BALANCE

DATE PARTICULARS PR DEBIT CREDIT
2017
May 3 Cash sales GJ1 15,000 15,000
5 Sales on account GJ1 12,000 27,000
14 Sales on account GJ2 24,000 51,000
25 Cash sales GJ3 33,300 84,300
30 Sales on account GJ3 13,500 97,800
31 Closing entry GJ4 97,800 -

412 Sales Returns and Allowances BALANCE

DATE PARTICULARS PR DEBIT CREDIT
2017
May 16 Refund to customers GJ2 1,000 1,000
29 Refund to customers GJ3 1,500 2,500
31 Closing entry GJ4 2,500 -

420 Sales Discount BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2017
May 15 Collection of accounts GJ2 240 240
 31 Closing entry GJ4 240 -

522 Cost of Goods Sold BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2017
May 3 Cost of merchandise sold GJ1 8,000 8,000
5 Cost of merchandise sold GJ1 6,500 14,500
14 Cost of merchandise sold GJ2 12,700 27,200
16 Cost of merchandise returned GJ2 600 26,600
25 Cost of merchandise sold GJ2 18,300 44,900
29 Cost of merchandise returned GJ3 900 44,000
30 Cost of merchandise sold GJ3 7,200 51,200
31 Closing entry GJ4 51,200 -

601 Advertising Expenses BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2017
May 31 Payment of operating expenses GJ3 1,200 1,200
31 Closing entry GJ4 1,200 -
 Riverdale Mechanical Supply
Trial Balance
31-May-17

PARTICULARS DEBIT CREDIT

101 Cash 86,086.00
112 Accounts Receivable 13,500.00
120 Merchandise Inventory 50,074.00
126 Supplies 2,000.00
155 Equipment 15,000.00
201 Accounts Payable 8,000.00
210 Notes Payable 50,000.00
301 Mr. Lodge, Capital 100,000.00
310 Mr. Lodge, Drawings 12,000.00
401 Sales 97,800.00
412 Sales Returns and Allowances 2,500.00
420 Sales Discount 240.00
522 Cost of Goods Sold 51,200.00
601 Advertising Expenses 1,200.00
644 Freight Out 500.00
701 Salaries 13,000.00
710 Rent Expense 7,000.00
720 Utilities 1,500.00
TOTAL 255,800.00 255,800.00
 Riverdale Mechanical Supply
Statement of Financial Performance
For the Month Ended May 2017
Sales 97,800.00
Less: Sales Returns and Allowances 2,500.00
Sales Discount 240.00 2,740.00
Net Sales 95,060.00
Less: Cost of Goods Sold 51,200.00
Gross Profit 43,860.00
Less: Operating Expenses
Advertising Expenses 1,200.00
Salaries 13,000.00
Rent Expense 7,000.00
Utilities 1,500.00
Freight Out 500.00 23,200.00
Net Profit 20,660.00
 Riverdale Mechanical Supply
Statement of Changes in Owner's Equity
For the Month Ended May 2017

Mr. Lodge, Capital beginning -

Add: Initial Investments 100,000.00

Net Income 20,660.00 120,660.00
Less: Withdrawals 12,000.00
x
Mr. Lodge, Capital end 108,660.00
 Riverdale Mechanical Supply
Statement of Financial Position
As of May 31, 2017

ASSETS
Current Assets
Cash 86,086.00
Accounts Receivable 13,500.00
Merchandise Inventory 50,074.00
Supplies 2,000.00 151,660.00
Non-Current Assets
Equipment 15,000.00

TOTAL ASSETS 166,660.00

LIABILITIES & OWNER'S EQUITY

LIABILITIES
Current Liabilities
Accounts Payable 8,000.00
Notes Payable 50,000.00 58,000.00

OWNER'S EQUITY
Mr. Lodge, Capital 108,660.00

TOTAL LIABILITIES & OWNER'S EQUITY 166,660.00

 Riverdale Mechanical Supply
Statement of Cash Flow
For the Month Ended May 2017

Cash Flow from Operating Activities

Cash Sales 48,300.00
Collection of accounts 34,760.00
Payment for rent (7,000.00)
Payment for freight in (750.00)
Purchase for advertising (1,200.00)
Refund from supplier for returned merchandise 700.00
Purchase of merchandise (55,000.00)
Refund to customer for returned merchandise (1,500.00)
Payment for freight out (500.00)
Payment for Accounts Payable (38,224.00)
Payment for salaries (13,000.00)
Payment for utilities (1,500.00)
Purchase of supplies (2,000.00)
Net Cash Flow from Operating Activities (36,914.00)

Cash Flow from Investing Activities

Purchase of equipment (15,000.00)
Net Cash Flow from Investing Activities (15,000.00)

Cash Flow from Financing Activities

Initial Investment 100,000.00
Proceeds from bank loan 50,000.00
Withdrawals (12,000.00)
Net Cash Flow from Financing Activities 138,000.00

Total Cash Flow from Operating, Investing & Financing 86,086.00

Add: Cash balance, beginning -
Ending Cash Balance, May 2017 86,086.00
 Riverdale Mechanical Supply
GENERAL JOURNAL - CLOSING ENTRIES
For the month Ended May 2017

Page 4 CLOSING ENTRIES

DATE PARTICULARS PR DEBIT CREDIT
2017
May 31 Sales 401 97,800.00
Sales Returns and Allowances 412 2,500.00
Sales Discount 420 240.00
Income Summary 800 95,060.00
To close sales account
#
31 Income Summary 800 74,400.00
Advertising Expenses 601 1,200.00
Freight Out 644 500.00
Salaries 701 13,000.00
Utilites 720 1,500.00
Rent Expense 710 7,000.00
Cost of Goods Sold 522 51,200.00
To close expense account with cost of goods sold
#
31 Income Summary 800 20,660.00
Mr. Lodge, Capital 301 20,660.00
To close income summary to capital
#
31 Mr. Lodge, Capital 301 12,000.00
Mr. Lodge, Drawings 310 12,000.00
To close drawing acount to capital
#
 Riverdale Mechanical Supply
Post Closing Trial Balance
31-May-17

PARTICULARS DEBIT CREDIT

101 Cash 86,086.00
112 Accounts Receivable 13,500.00
120 Merchandise Inventory 50,074.00
126 Supplies 2,000.00
155 Equipment 15,000.00
201 Accounts Payable 8,000.00
210 Notes Payable 50,000.00
301 Mr. Lodge, Capital 108,660.00
Total 166,660.00 166,660.00