Capulong Daniella Marie M.

BSA1D

Periodic Inventory System

The accounts of Jim Boy Trading Co. have the following balances on January 1, 20x1:

Jim Boy Trading Co.

Trial Balance
January 1, 20x1

Accounts Debit Credit

Cash 50,000
Accounts Receivable 120,000
Inventory 30,000
Equipment 200,000
Accumulated Depreciation 80,000
Accounts Payable 20,000
Jim Boy, Capital 300,000
Totals 400,000 400,000
The following were the transactions during the year:

1. Sales on cash basis amounted to ₱80,000.

2. Sales on account amounted to ₱130,000
3. Purchase on account amounted to ₱70,000.
4. Freight paid on purchases amounted to ₱5,000.
5. Purchase returns amounted to ₱10,000.
6. Salaries paid amounted to ₱60,000.
7. Utilities paid amounted to ₱20,000.
8. Collections of accounts receivable amounted to ₱200,000.
9. Payments of accounts payable amounted to ₱60,000.
10. Owner drawings during the year totaled ₱80,000.

Additional information:

A. The annual depreciation on the equipment is ₱20,000.

B. The physical count of inventory on December 31, 20x1 revealed a ₱60,000 balance of

Requirement: Complete the accounting cycle.

led a ₱60,000 balance of goods on hand.
 General Journal

Date Particulars Debit Credit

1 Cash 80,000
Sales 80,000
to record cash sales
2 Accounts Receivable 130,000
Sales 130,000
to record sales on acount
3 Purchases 70,000
Accounts Payable 70,000
to record purchases on account
4 Freight - in 5,000
Cash 5,000
to record freight costs incurred on purhcases
5 Account Payable 10,000
Purchase Returns 10,000
to record purchases returns
6 Salaries Expense 60,000
Cash 60,000
to record payment of salaries
7 Utilities Expense 20,000
Cash 20,000
to record payment of utility bills
8 Cash 200,000
Accounts Receivable 200,000
to record collection of accounts receivable
9 Accounts Payable 60,000
Cash 60,000
to record payment of accounts payable
10 Jim Boy, Drawings 80,000
Cash 80,000
to record withdrawals of owner from the business
 General Ledger Jim Boy Trading Co.
Unadjusted Trial Balance
ASSET December 31,20x1

Date Cash Debit Credit Accounts

beg. 50,000 Cash
1 80,000 Accounts Receivable
4 5,000 Inventory
6 60,000 Equipment
7 20,000 Accumulated depreciation
8 200,000 Accounts Payable
9 60,000 Jim Boy, Capital
10 80,000 Jim Boy, Drawing
330,000 225,000 Sales
Final Balance 105,000 Purchases
Freight - in
Date Accounts Receivable Debit Credit Purchase returns
beg. 120,000 Salaries Expense
2 130,000 Utilities Expense
8 200,000 Totals
250,000 200,000
Final Balance 50,000

Date Inventory Debit Credit

beg. 30,000
Final Balance 30,000

Date Equipment Debit Credit

beg. 200,000
Final Balance 200,000

LIABILITIES

Date Accounts Payable Debit Credit

beg. 20,000
3 70,000
5 10,000
9 60,000
70,000 90,000
Final Balance 20,000

EQUITY

Date Jim Boy, Capital Debit Credit

beg. 300,000
Final Balance 300,000

Date Jim Boy, Drawing Debit Credit

10 80,000
Final Balance 80,000

INCOME

Date Sales Debit Credit

1 80,000
2 130,000
Final Balance 210,000

EXPENSES

Date Purchases Debit Credit

3 70,000
Final Balance 70,000

Date Freight - in Debit Credit

4 5,000
Final Balance 5,000

Date Purchase Returns Debit Credit

5 10,000
Final Balance 10,000

Date Salaries Expense Debit Credit

6 60,000
Final Balance 60,000

Date Utilities Expense Debit Credit

7 20,000
Final Balance 20,000
m Boy Trading Co. Adjusting Entries
djusted Trial Balance
ecember 31,20x1 Date Particulars
Dec. 31, 20x1 Depreciation Expense
Debit Credit Accumulated Depreciation Expense
105,000 to record the depreciation expense for the year
50,000 Dec. 31, 20x1 Inventory, end.
30,000 Income Summary
200,000 to recognize the ending inventory
80,000
20,000
300,000
80,000
210,000
70,000
5,000
10,000
60,000
20,000
620,000 620,000
Debit Credit
20,000
20,000

60,000
60,000
 Jim Boy Trading Co.
Worksheet
For the year ended December 31,20x

Account Title Unadjusted Trial Balance Adjustments Adjusted Trial Balance

Debit Credit Debit Credit Debit Credit
Cash 105,000 105,000
Accounts Receivable 50,000 50,000
Inventory, beg. 30,000 30,000
Equipment 200,000 200,000
Accumulated Depreciation 80,000 20,000 100,000
Accounts payable 20,000 20,000
Jim Boy, Capital 300,000 300,000
Jim Boy, Drawing 80,000 80,000
Sales 210,000 210,000
Purchases 70,000 70,000
Freight - in 5,000 5,000
Purchase returns 10,000 10,000
Salaries Expense 60,000 60,000
Utilities Expense 20,000 20,000
Totals 620,000 620,000
Adjustments:
Depreciation Expense 20,000 20,000
Inventory, end. 60,000 60,000
Income Summary 60,000 60,000
Totals 80,000 80,000 700,000 700,000
Net Loss
 Jim Boy Trading Co.
Worksheet
year ended December 31,20x1

Income Statement Balance Sheet Closing Entries Post Closing Trial Balance
Debit Credit Debit Credit Debit Credit Debit Credit
105,000 105,000
50,000 50,000
30,000 30,000
200,000 200,000
100,000 100,000
20,000 20,000
300,000 80,000 75,000 295,000
80,000 80,000
210,000 210,000
70,000 70,000
5,000 5,000
10,000 10,000
60,000 60,000
20,000 20,000

20,000 20,000
60,000 60,000
60,000 105,000 45,000
205,000 280,000 495,000 420,000 405,000 405,000 415,000 415,000
75,000 75,000
280,000 280,000 495,000 495,000
 Jim Boy Trading Co. Jim Boy Trading Co.
Income Statement Statement of Changes in Equit
For the month ended December 31, 20x1 For the year ended of December 31

Sales ₱210,000
Cost of Good Sold: Jim Boy, Capital
Inventory, beg. ₱30,000 Add: Additional Investment
Purchases 70,000
Freight - in 5,000 TOTAL
Purchase returns (10,000) Less: Withdrawals
Total goods available for sales 95,000
Inventory, end. (60,000) (35,000)
GROSS PROFIT 175,000
Salaries Expense (60,000)
Utilities Expense (20,000)
Depreciation Expense (20,000)
PROFIT FOR THE YEAR ₱75,000
 Jim Boy Trading Co. Jim Boy Trading Co.
Statement of Changes in Equity Balance Sheet
For the year ended of December 31, 20x1 For the month ended December 31, 20x1

Assets
Jim Boy, Capital ₱300,000 Current Assets
Add: Additional Investment - Cash 105,000
Net Income 75,000 75,000 Account Receivable 50,000
₱375,000 Inventory 60,000
Less: Withdrawals -80,000 Total Current Asset
₱295,000
Non Current Assets
Equipment 200,000
Less: Accumulated Depreciation (100,000)
Total Assets

Liabilities
Accounts Payable 20,000
Total Current Liabilities

Owner's Equity
Jim Boy, Capital
Total Libilities and Equity
ng Co. Jim Boy Trading Co.
eet Statement of Cash Flows
cember 31, 20x1 For the month ended December 31, 20x1

Cash flow from Operating Activities:

Net Income
Adjustments to Reconcile Net Income o Net Cash Flow From Operating Activities:
Account Receivable
Inventory
215,000 Accounts Payable
Depreciation
Net cash provided by Operating activities

100,000 Cash flow from Investing Activities:

315,000 Payment to acquire office equipment
Net cash provided by Investing activities
s
Cash Flows from Financial Activities:
20,000 Cash received as investments by owners
Cash distributions to owners
uity Net cash provided by Financial activities
295,000 Net increase in cash
315,000 Cash balance in the beginning of the period
Cash at the end of the period
 Jim Boy Trading Co.
Statement of Cash Flows
For the month ended December 31, 20x1

from Operating Activities:

75,000
nts to Reconcile Net Income o Net Cash Flow From Operating Activities:
nt Receivable (50,000)
30,000
(20,000)
100,000 60,000
sh provided by Operating activities 135,000

from Investing Activities:

ent to acquire office equipment (200,000)
sh provided by Investing activities (200,000)

ws from Financial Activities:

eceived as investments by owners 300,000
distributions to owners (80,000)
ash provided by Financial activities 220,000
155,000
nce in the beginning of the period (50,000)
he end of the period 105,000