P8-6 REQUIRED: Prepare journal entries to record the following 2021 transactions.

Assume
that the Periodic Inventory Method is used and that purchases are recorded initially at gross
purchase price.
Mar
2 Purchased merchandise on credit from Top Co., terms: 2/10, n/30, FOB destination,
P158,000
3 Sold merchandise on credit to Mr. Viel, terms 1/10,n/30, FOB shipping point, P4,480.
6 Sold merchandise for cash P50,400.
7 Purchased merchandise on credit from Jack Co., terms 2/10, n/30, FOB Shipping point
P44,800.
8 Received freight bill from JBC Express for shipment received on Mar. 7, P2,000.
9 Sold merchandise on credit to A. Leo, terms 1/10, n/30, FOB destination, P14,560.
10 Purchased merchandise from Top Co. terms 2/10, n/30; FOB shipping point P56,000
excluding freight cost of P1,000 paid by Top Co.
11 Received freight bill from LBC Express for sale to Mr. Leo on March 9, P1,000
12 Paid Top Co. for purchase of Mar. 2.
12 Received payment in full from Mr. Viel’s purchase of Mar. 3.
12 Returned defective merchandise worth P336 to Top Co. for credit against purchase of Mar.
10.
16 Paid Jack Co. one-half of amount owed from purchase of Mar. 7.
17 Sold merchandise to A. Marjorie on credit, terms 1/20, n/30, FOB shipping point, P8,736
18 Received payment from A. Leo for one-half the purchase of Mar. 9
18 Paid Top Co. in full for amount owed on purchase of March 10, less return on March 12.
20 Credited the account of A. Marjorie for returned merchandise, P2,016
21 Paid freight company for freight charges, during March, P1,500.
22 Received payment of amount owed by A. Marjorie from purchase of March 17 less credit of
March 20.
22 Paid Jack Co. for balance of March 7 purchase.

P8- REQUIRED: Give the entries without explanation for the ff. transactions of Bicol Bookstore
7 for the month of April, 2017. Post to ledger and make a Trial Balance as of April 30, 2021.

April
1 J. Manuel opens a bookstore investing the ff. assets: P160,000 cash, a 30-day, 6% note from
V. Cruz for P16,600, P20,400 store equipment and books and school supplies worth
P132,000
2 Paid rent for the month, P13,200
2 Purchased books from National Bookstore for cash P56,000.
5 Sold merchandise to J. Agbayani Store on account, P20,160. Terms: 2/10,n/30 FOB Bicol,
prepaid, freight cost, P900.
6 J. Agbayani Store returned merchandise worth P2,240,credit memo was issued for the same
amount.
12 Purchased books from C. Silayan Store, P67,200. Terms:20% down and the balance, 2/10,
n/30.
13 J. Manuel withdrew books costing P5,000 and 2,000 cash from the business for personal use.
14 Sold merchandise to C. Martin store on account P16,800. Terms: 2/10, 1/15, n/30, FOB
Caloocan, prepaid, freight cost, P600.
15 Received credit memo from C. Silayan Store for books returned, P4,448
18 Received a check from J. Agbayani Store in full payment of their account.
19 Received P3,360 allowance for inferior quality of books purchased for cash.
20 Purchased books and school supplies for sale from L. Alindogan Store for P44,800, paying
P4,480 down, issuing a 10-day, 6% note for P20,000 and the balance, n/30.
21 Purchased an adding machine from Casio Phil. for P7,000. Terms: 1/15, n/30.
22 Purchased books for cash P33,600 FOB Quezon City, prepaid, freight cost,P800.
23 Paid C. Silayan Store the amount due.
23 Sold L. Tolentino Store merchandise, P44,800 list price, marked 10% and 20% off. Terms:
1/15, n/30
26 Collected the amount due from C. Martin Store.
27 Paid L. Alindogan Store the amount due.
28 Issued a 30-day, 6% note in favor of Casio Phil. as settlement of amount due to them.
29 Paid employee wages, P15,500.
30 Collected the amount due from V. Cruz.
 P8- REQUIRED: Journalize the following transactions. Post to the ledger and prepare a Trial
8 Balance on June 30, 2021. Use the perpetual inventory method. All sales are made at 50%
above cost.

June
1 Mr. Inigo Miguel starts a retail merchandising business with a cash investment of P200,000.
In addition thereto he placed in the business some desks and chairs amounting to P20,000,
and store equipment for P6,300, Mr. Miguel had an open account owing to Mr. Michael for
P4,300.
2 Bought a cash register for store use from Allied Machine Inc., P15,000 giving P2,000 as
down payment and the balance payable in monthly installment of P1,000.
3 Paid the rent for the store P12,000 for the month of June and insurance of P1,500 for one
year.
4 Received the following invoices for purchases made:
Invoice dated June 2, from Guarantee Supply P16,800, terms, n/15; and invoice dated June 2
from Macky, P5,600, terms n/30.
5 Cash sales, P8,960, sold to Mr. Logan P5,040, terms: n/30.
6 Paid the account due to Mr. Michael. Received a credit for P1,120 from Guarantee Supply as
an allowance on the poor quality of merchandise.
12 Sold merchandise to Mr. RJ for 4,480, receiving P2,240 and a note for P2,240 in 60 days at
6% interest.
13 Borrowed from PNB P50,000 and gave a 60 day, 12% note. Interest was deducted in
advance.
14 Paid Guarantee Supply for the amount due on their invoice of June 4, 2021.
15 Cash Sales for the day P51,520.

P8- The transactions for MCJ Co. for the month of September are shown below:
9

Sept
3 Sold merchandise to Mr. Irwin, a customer on account, P560,000 FOB shipping point.
4 Purchased merchandise from Michael Co. on account P504,000 shipping terms, FOB
shipping point, terms 2/10, 1/15, n/30.
5 Paid shipping charges of P50,000 for merchandise purchased on Jan. 4.
6 Purchased office equipment for P90,000 from Ironcon Co. on account: terms n/30, FOB
shipping destination.
9 Received P56,000 of merchandise damaged in shipment from Irwin and credit was given on
account.
11 Returned P11,200 of damaged merchandise to Michael Co. and the amount was deducted
from our account.
12 Received payment from Mr. Irwin, less their return and discount.
18 Purchased merchandise from Isah Co. on account for P44,800 terms 2/10, n/30, FOB
shipping point.
19 Paid shipping charges of P4,000 on merchandise purchased from Isah Co.
22 Sold merchandise to Inigo Co. for P179,200 on account, shipping terms FOB shipping point.
23 Defective merchandise was returned by Inigo Co. and a credit memorandum was issued for
P6,720.
26 Paid Michael Co.
28 The owner, Mr. M, withdraw P10,000 cash and merchandise worth P9,000 for personal use.

REQUIRED:
1. Journalize the transactions for the month of January, 2021.
2. Post your entries to T-accounts.
3. Prepare a trial balance as of January 31, 2021.