Optimus Products Trading sells, toys and was established on January 1, 2023 by Mr.

Timo with an initial investment of ₱ 20,000.00.

The following are the company's transactions for January, 2023
2 Purchased from ABC Suppliers 10 pcs. of toys amounting to ₱ 3,000.00 each with terms 2/10, n/30.
3 Purchased Supplies in cash , ₱ 1,900.00
4 Sold 7 pcs. of toys to 123 company for ₱4,500.00 each with terms 2/10, n/30.
5 Received credit from ABC Suppliers for 1 toy returned.
7 Received Cash Loan from City Bank on a promissory note amounting to ₱15,000.00 with 2% per annum interest payable in 3 years
10 Purchased store furniture for ₱12,000.00 - terms 2/10, n/30
12 Paid ABC Suppliers in full BCD
14 Received collection in full from 123 Company sold last July 4 BCR
15 Purchased additional 5 pcs. of toys for 2,200.00 each BCD
16 Mr. Timo withdrew ₱ 5,000.00 cash for personal use GJ
17 Received refund from cash supplier due to 1 pc. of toy that was damaged. BCD
20 Paid half the amount due to the furniture bought last July 10. BCD
24 Sold 5 toys for cash, 4,500.00 each BCR/FREIGHT :BCD
25 Purchase 5 toys from Prime Suppliers, ₱ 3,500.00, terms 2/10, n/30 BCD
26 Made refunds to cash customers for 1 defective toy. BCR
29 Paid the salary store assistant, ₱5,500.00, and rent of the shop, ₱4,000.00 BCD
30 Sold 3 pcs. of toys to 456 Ent. For 4,500.00 each Terms 2/10, n/30 BCR

* At the end of the month, merchandise inventory was counted to be worth ₱ 9,960
The company follows the Straight-line method in depreciating its Fixed Assets

Required:
1 Prepare the necessary journal entries
2 Post to ledger
3 Prepare Trial Balance
4 Journalize closing entries
5 Prepare Financial Statements for January 2023

Perpetual
Periodic
Optimus Products Trading
Chart of Accounts

Acct. Code Account

101 Cash
112 Accounts Receivable
120 Merchandise Inventory
126 Supplies
130 Furniture
131 Accumulated depreciation - Furniture
201 Accounts Payable
205 Notes Payable
301 Mr. Timo, Capital
302 Mr. Timo, Drawing
401 Sales
412 Sales Returns and Allowances
415 Sales Discount
510 Purchases
512 Purchase Returns and Allowances
514 Purchase Discount
516 Freight In
530 Cost of Goods Sold
601 Salaries Expense
605 Rent Expense
634 Depreciation Expense - Furniture
644 Freight Out
FIFO Perpetual Inventory Costing
Balance
Date Particulars Qty Cost/Unit Total Cost Cost
2-Jan Purchase from ABC Co 10 3,000.00 30,000.00 30,000.00
4-Jan Sale to 123 Company -7 3,000.00 - 21,000.00 9,000.00
5-Jan Return 1 pc to ABC Co. -1 3,000.00 - 3,000.00 6,000.00
24-Jan Cash Sale -2 3,000.00 - 6,000.00 -

15-Jan Cash Purchase 5 2,200.00 11,000.00 11,000.00

17-Jan Return -1 2,200.00 - 2,200.00 8,800.00
24-Jan Cash sale -3 2,200.00 - 6,600.00 2,200.00
30-Jan Sale to 456 Ent -1 2,200.00 - 2,200.00 -

25-Jan Purchase from Prime Suppliers 5 3,500.00 17,500.00 17,500.00

30-Jan Sale to 456 Ent -2 3,500.00 - 7,000.00 10,500.00
Discount - 540.00 - 540.00
Ending inventory cost 9,960.00 9,960.00

3,320.00

Balance
Date Particulars Qty Cost/Unit Total Cost Cost
1/2/2023 Beginning Balance 3.00 3,320.00 9,960.00 9,960.00
Balance
Qty
10
3
2
0

5
4
1
0

5
3

3.00

unit cost

Balance
Qty
3.00
GENERAL LEDGER

101 CASH
Date Particulars DEBIT Date
Jan 1 Initial Investment 20,000.00 Jan 3
7 Loan from City Bank 15,000.00 12
14 Collection from 123 Co 30,870.00 15
17 Refund from cash purchase 2,200.00 16
24 Cash sales 22,500.00 20
26
29

Total 90,570.00
Net Amount 26,210.00

201 ACCOUNTS PAYABLE ACCOUNTS PAYABLE

Date Particulars DEBIT Date
Jan 5 1 toy returned to ABC 3,000.00 Jan 2
12 Full payment to ABC 27,000.00 10
20 Paid half the amount of furniture 6,000.00 25

Total 36,000.00

401 SALES
Date Particulars DEBIT Date
Jan 31 Closing 67,500.00 Jan 4
10
25

Total 67,500.00
 112
Particulars CREDIT Date
Supplies for cash 1,900.00 Jan 4
Full payment to ABC 26,460.00 30
Cash purchase 5 toys @2,200 11,000.00
Withdrawal 5,000.00
Paid half the amount of furniture 6,000.00
Refund to cash customer for defect 4,500.00
Salary and rent 9,500.00

Total 64,360.00

205
Particulars CREDIT Date
Purchased from ABC 10 @3000 30,000.00
Store furniture 12,000.00
5 toys from Prime Suppliers @ 3,50 17,500.00

Total 59,500.00
Net Amount 23,500.00

412
Particulars CREDIT Date
Sale to 123 Co 7 @4,500 31,500.00 Jan 26
Cash sales 22,500.00
Sale to 456 3 toys @4,500 13,500.00

Total 67,500.00
Net Amount 0.00
ACCOUNTS RECEIVABLE
Particulars DEBIT Date Particulars
Sale to 123 Co 7 @4,500 31,500.00 Jan 15 Collection from 123 Co
Sale to 456 3 toys @4,500 13,500.00

Total 45,000.00 Total

Net Amount 13,500.00

NOTES PAYABLE
Particulars DEBIT Date Particulars
Jan 7 Loan from City Bank

Total 0.00 Total

Net Amount

SALES RETURNS AND ALLOWANCES

Particulars DEBIT Date Particulars
Refund to cash customer for de 4,500.00 Jan 31 Closing

Total 4,500.00 Total

Net Amount 0.00
 120 MERCHANDISE INVENTORY
CREDIT Date Particulars
31,500.00 Jan 2 Purchased from ABC 10 @3000
15 Cash purchase 5 toys @2,200
25 5 toys from Prime Suppliers @ 3,500 each

31,500.00 Total
Net Amount

301 MR. TIMO, CAPITAL

CREDIT Date Particulars
15,000.00 Jan 31 Closing - Withdrawal

15,000.00 Total
15,000.00

412 SALES DISCOUNT

CREDIT Date Particulars
4,500.00 Jan 14 Collection from 123 Co

4,500.00 Total
Net Amount
DEBIT Date Particulars CREDIT
30,000.00 Jan 4 Sale to 123 Co 7 @4,500 21,000.00
11,000.00 5 1 toy returned to ABC 3,000.00
17,500.00 12 Full payment ot ABC 540.00
17 Refund from Cash purchase 2,200.00
24 Cash sales 12,600.00
30 Sale to 456 3 toys @4,500 9,200.00

58,500.00 Total 48,540.00

9,960.00

DEBIT Date Particulars CREDIT

5,000.00 Jan 1 Initial Investment 20,000.00
301 Closing - Net Income 10,070.00

5,000.00 Total 30,070.00

Net Amount 25,070.00

DEBIT Date Particulars CREDIT

630.00 Jan 31 Closing 630.00

630.00 Total 630.00

0.00
126 SUPPLIES
Date Particulars DEBIT Date Particulars
Jan 3 Purchase for cash 1,900.00

Total 1,900.00 Total

Net Amount 1,900.00

306 MR. TIMO, DRAWING

Date Particulars DEBIT Date Particulars
Jan 16 Withdrawal 5,000.00

Total 5,000.00 Total

Net Amount 5,000.00

510 COST OF GOODS SOLD

Date Particulars DEBIT Date Particulars
Jan 4 Sale to 123 Co 7 @4,500 21,000.00 Jan 31 Closing
24 Cash sales 12,600.00
30 Sale to 456 3 toys @4,500 9,200.00

Total 42,800.00 Total

Net Amount 0.00
 130 OFFICE FURNITURE
CREDIT Date Particulars DEBIT Date
Jan 10 Store furniture 12,000.00

0.00 Total 12,000.00

Net Amount 12,000.00

CREDIT

0.00

601 SALARIES EXPENSE

CREDIT Date Particulars DEBIT Date
42,800.00 Jan 29 Salary 5,500.00 Jan 31

42,800.00 Total 5,500.00

Net Amount 0.00
 Particulars CREDIT

Total 0.00

605 RENT EXPENSE

Particulars CREDIT Date Particulars
Closing 5,500.00 Jan 29 Rent

Total 5,500.00 Total

Net Amount
DEBIT Date Particulars CREDIT
4,000.00 Jan 31 Closing 4,000.00

4,000.00 Total 4,000.00

0.00
General Ledger

GENERAL LEDGER

CASH ACCOUNT NO.

Date Explanation P.R DEBIT CREDIT
Jan 1 Initial Investment 20,000.00
3 Supplies for cash 1,900.00
7 Loan from City Bank 15,000.00
12 Full payment to ABC 26,460.00
14 Collection from 123 Co 30,870.00
15 Cash purchase 5 toys @2,200 11,000.00
16 Withdrawal 5,000.00
17 Refund from cash purchase 2,200.00
20 Paid half the amount of furniture 6,000.00
24 Cash sales 22,500.00
26 refunds to cash customer for defective toy 4,500.00
29 Salary and rent 9,500.00

ACCOUNTS RECEIVABLE ACCOUNT NO.

Date Explanation P.R DEBIT CREDIT
Jan 4 Sale to 123 Co 7 @4,500 31,500.00
15 Collection from 123 Co 31,500.00
30 Sale to 456 3 toys @4,500 13,500.00

MERCHANDISE INVENTORY ACCOUNT NO.

Date Explanation P.R DEBIT CREDIT
Jan 2 Purchased from ABC 10 @3000 30,000.00
4 Sale to 123 Co 7 @4,500 21,000.00
5 1 toy returned to ABC 3,000.00
12 Full payment ot ABC 540.00
15 Cash purchase 5 toys @2,200 11,000.00
17 Refund from Cash purchase 2,200.00
24 Cash sales 12,600.00
25 5 toys from Prime Suppliers @ 3,500 each 17,500.00
30 Sale to 456 3 toys @4,500 9,200.00

SUPPLIES ACCOUNT NO.

Date Explanation P.R DEBIT CREDIT
Jan 3 Purchase for cash 1,900.00
FURNITURE ACCOUNT NO.
Date Explanation P.R DEBIT CREDIT
Jan 10 Purchase 12,000.00

ACCOUNTS PAYABLE ACCOUNT NO.

Date Explanation P.R DEBIT CREDIT
Jan 2 Purchased from ABC 10 @3000 30,000.00
5 1 toy returned to ABC 3,000.00
10 Stor furniture 12,000.00
12 Full payment to ABC 27,000.00
20 Paid half the amount of furniture 6,000.00
25 5 toys from Prime Suppliers @ 3,500 each 17,500.00
 General Ledger

GENERAL LEDGER

101 NOTES PAYABLE ACCOUNT NO.

BALANCE Date Explanation P.R DEBIT
20,000.00 Jan 7 Loan from City Bank
18,100.00
33,100.00
6,640.00 MR. TIMO, CAPITAL ACCOUNT NO.
37,510.00 Date Explanation P.R DEBIT
26,510.00 Jan 1 Initial Investment
21,510.00 31 Closing - Net Income
23,710.00 31 Closing - Withdrawal 5,000.00
17,710.00
40,210.00
35,710.00 MR. TIMO, DRAWING ACCOUNT NO.
26,210.00 Date Explanation P.R DEBIT
Jan 16 Withdrawal 5,000.00
31 Closing
112
BALANCE
31,500.00 SALES ACCOUNT NO.
0.00 Date Explanation P.R DEBIT
13,500.00 Jan 4 Sale to 123 Co 7 @4,500
24 Cash sales
30 Sale to 456 3 toys @4,500
120 31 Closing 67,500.00
BALANCE
30,000.00
9,000.00 SALES RETURNS AND ALLOWANCES ACCOUNT NO.
6,000.00 Date Explanation P.R DEBIT
5,460.00 Jan 26 refunds to cash customer for defective toy 4,500.00
16,460.00 31 Closing
14,260.00
1,660.00
19,160.00 SALES DISCOUNT ACCOUNT NO.
9,960.00 Date Explanation P.R DEBIT
14 Collection from 123 Co 630.00
31 Closing
126
BALANCE
1,900.00 COST OF GOODS SOLD ACCOUNT NO.
 Date Explanation P.R DEBIT
Jan 4 Sale to 123 Co 7 @4,500 21,000.00
130 24 Cash sales 12,600.00
BALANCE 30 Sale to 456 3 toys @4,500 9,200.00
12,000.00 31 Closing

201 SALARIES EXPENSE ACCOUNT NO.

BALANCE Date Explanation P.R DEBIT
(30,000.00) Jan 29 Salary 5,500.00
(27,000.00) 31 Closing
(39,000.00)
(12,000.00)
(6,000.00) RENT EXPENSE ACCOUNT NO.
(23,500.00) Date Explanation P.R DEBIT
Jan 29 Rent 4,000.00
31 Closing

INCOME SUMMARY ACCOUNT NO.

Date Explanation P.R DEBIT
Jan 31 Closing
42,800.00
9,500.00
10,070.00
ACCOUNT NO. 205
CREDIT BALANCE
15,000.00 (15,000.00)

ACCOUNT NO. 301

CREDIT BALANCE
20,000.00 (20,000.00)
10,070.00 (30,070.00)
(25,070.00)

ACCOUNT NO. 302

CREDIT BALANCE
5,000.00
5,000.00 0.00

ACCOUNT NO. 401

CREDIT BALANCE
31,500.00 (31,500.00)
22,500.00 (54,000.00)
13,500.00 (67,500.00)
0.00

ACCOUNT NO. 412

CREDIT BALANCE
4,500.00
4,500.00 0.00

ACCOUNT NO. 415

CREDIT BALANCE
630.00
630.00 0.00

ACCOUNT NO. 510

 CREDIT BALANCE
21,000.00
33,600.00
42,800.00
42,800.00 0.00

ACCOUNT NO. 601

CREDIT BALANCE
5,500.00
5,500.00 0.00

ACCOUNT NO. 605

CREDIT BALANCE
4,000.00
4,000.00 0.00

ACCOUNT NO.
CREDIT BALANCE
62,370.00 (62,370.00)
(19,570.00)
(10,070.00)
0.00
 Optimus Products Trading
Trial Balance
January 31, 2023

Account No Account Title Debit Credit

101 Cash 26,210.00
112 Accounts Receivable 13,500.00
120 Merchandise Inventory 9,960.00
126 Supplies 1,900.00
130 Furniture 12,000.00
201 Accounts Payable 23,500.00
205 Notes Payable 15,000.00
301 Mr. Timo, Capital 20,000.00
302 Mr. Timo, Drawing 5,000.00
401 Sales 67,500.00
412 Sales Returns and Allowances 4,500.00
415 Sales Discount 630.00
530 Cost of Goods Sold 42,800.00
601 Salaries Expense 5,500.00
605 Rent Expense 4,000.00
644 Freight Out
Total 126,000.00 126,000.00 0.00
 Optimus Products Trading
Income Statement
For the Month ended January, 2023

Sales 67,500.00
Less: Sales Returns and Allowances 4,500.00
Sales Discount 630.00 5,130.00
Net Sales 62,370.00
Less Cost of Goods Sold 42,800.00
Gross Profit 19,570.00
Less Operating Expenses:
Salaries Expense 5,500.00
Rent Expense 4,000.00
9,500.00
Net Income 10,070.00

Optimus Products Trading

Statement of Changes in Owner's Equity
For the Month ended January, 2023

Mr. Timo, Capital, beg. 0.00

Capital Contributions during the year 20,000.00
Net Income/(Net Loss) during the year 10,070.00
Total 30,070.00
Less Drawings 5,000.00
Net Increase/(Decrease) in Owner's Equity 25,070.00
Mr. Timo, Capital, end 25,070.00

ADJUSTED
Optimus Products Trading
Income Statement
For the Month ended January, 2023

Sales 67,500.00
Less: Sales Returns and Allowances 4,500.00
Sales Discount 630.00 5,130.00
Net Sales 62,370.00
Less Cost of Goods Sold 42,800.00
Gross Profit 19,570.00

Other Income:
Interest Income 240.00
Less Operating Expenses:
Salaries Expense 5,500.00
Rent Expense 4,000.00
Bank Charges 150.00
Depreciation Expense 225.81 9,875.81
Net Income 9,934.19

Optimus Products Trading

Statement of Changes in Owner's Equity
For the Month ended January, 2023

Mr. Timo, Capital, beg. 0.00

Capital Contributions during the year 20,000.00
Net Income/(Net Loss) during the year 9,934.19
Total 29,934.19
Less Drawings 5,574.00
Net Increase/(Decrease) in Owner's Equity 24,360.19
Mr. Timo, Capital, end 24,360.19
 Optimus Products Trading
Cost of Goods Sold Statement UNDER PERIODIC INVENTORY SYSTEM)
For the Month ended January 2023

Merchandise Inventory, beg 0.00

Purchases 58,500.00
Total 58,500.00
Less: Purchase Returns and Allowances 5,200.00
Purchase Discount 540.00 5,740.00
Net Purchases 52,760.00
Add Freight In
Total Cost of Goods Available for Sale 52,760.00
Less Merchandise end, 9,960.00
Cost of Goods Sold 42,800.00

purchases-returns-discount+sf-cogs=MI, end
 Optimus Products Trading
Balance Sheet
January 31, 2023

Assets
Current Assets: Accounting Equation
Cash 26,210.00 Asset =
Accounts Receivable 13,500.00 63,570.00
Merchandise Inventory 9,960.00 63,570.00
Supplies 1,900.00 51,570.00

Non Current Assets:

Furnitures and Fixtures 12,000.00
Less Accumulated Depreciation 0.00 12,000.00
Total Assets 63,570.00

Liabilities and Owner's Equity

Liabiities
Current Liabilities
Accounts Payable 23,500.00
Non Current Liabilities
Notes Payable 15,000.00
Total Liabilities 38,500.00

Equity
Mr. Timo, Capital 25,070.00
Total Liabilities and Owner's Equity 63,570.00

ADJUSTED
Optimus Products Trading
Balance Sheet
January 31, 2023

Assets Accounting Equation

Current Assets: Asset =
Cash 20,856.00 62,860.19
Accounts Receivable 18,370.00 62,860.19
Merchandise Inventory 9,960.00 -
Supplies 1,900.00 51,086.00

Non Current Assets:

Furnitures and Fixtures 12,000.00
 Less Accumulated Depreciation (225.81) 11,774.19
Total Assets 62,860.19

Liabilities and Owner's Equity

Liabiities
Current Liabilities
Accounts Payable 23,500.00
Non Current Liabilities
Notes Payable 15,000.00
Total Liabilities 38,500.00

Equity
Mr. Timo, Capital 24,360.19
Total Liabilities and Owner's Equity 62,860.19
ng Equation
Liabilities + Equity/Capital
38,500.00 25,070.00
63,570.00
0.00

ng Equation
Liabilities + Equity/Capital
38,500.00 24,360.19
62,860.19
 Optimus Products Trading
Cash Flow Statement
For the month of January, 2023

Cash Flow for Operating Activities

Cash Received from:
Sales 22,500.00
Collection from Receivables 30,870.00
Refund from Suppliers 2,200.00 55,570.00

Payment for:
Supplies (1,900.00)
Goods Purchased (37,460.00)
Refund to Customers (4,500.00)
Operating Expenses (9,500.00) (53,360.00)
Net Cash Flow from Operating Activities 2,210.00

Cash Flow from Investing Activities:

Sale of Fixed Asset 0.00
Purchase of Fixed Asset (6,000.00)
Net Cash Flow from Investing Activities (6,000.00)

Cash Flow from Financing Activities:

Owner's Investment 20,000.00
Owner's Drawing (5,000.00)
Cash received from borrowings 15,000.00
Net Cash Flow from Financing Activities 30,000.00
Net Increase/(Decrease) in Cash 26,210.00
Cash, January 1, 2023 0.00
Cash, January 31, 2023 26,210.00
 Optimus Products Trading
Post Closing Trial Balance
January 31, 2023

Account No Account Title Debit Credit

101 Cash 20,856.00
112 Accounts Receivable 18,370.00
120 Merchandise Inventory 9,960.00
126 Supplies 1,900.00
130 Furniture 12,000.00
131 Acc Depr - Furniture 225.81
201 Accounts Payable 23,500.00
205 Notes Payable 15,000.00
301 Mr. Timo, Capital 24,360.19
Total 63,086.00 63,086.00 0.00
 Optimus Products Trading sells toys and was established on January 1, 2023 by Mr. Timo with an initial investment
perpetual periodic
GJ Cash ₱ 20,000.00 Cash
Mr. Timo, Capital ₱ 20,000.00

2 Purchased from ABC Suppliers 10 pcs. of toys amounting to ₱ 3,000.00 each with terms 2/10, n/30.

BCD Merchandise Inventory 30,000.00 10 X 3000 Purchases

Accounts Payable 30,000.00

3 Purchased Supplies for cash , ₱ 1,900.00

BCD Supplies 1,900.00 Supplies

Cash 1,900.00

4 Sold 7 pcs. of toys to 123 company for ₱4,500.00 each with terms 2/10, n/30.

BCR Accounts Receivable 31,500.00 4,500*7 Accounts Receivable

Sales 31,500.00

Cost of Goods Sold 21,000.00 3,000 x 7

Merchandise Inventory 21,000.00

5 Received credit from ABC Suppliers for 1 toy returned.

BCD Accounts Payable 3,000.00 Accounts Payable

Merchandise Inventory 3,000.00

7 Received Cash Loan from City Bank on a promissory note amounting to ₱15,000.00

GJ Cash 15,000.00 Cash

Notes Payable 15,000.00

10 Purchased store furniture for ₱12,000.00 - terms 2/10, n/30

BCD Furniture 12,000.00 Furniture

Accounts Payable 12,000.00

12 Paid ABC Suppliers in full

BCD Accounts Payable 27,000.00 Accounts Payable

Merchandise Inventory 540.00 27000 x .02
Cash 26,460.00

14 Received collection in full from 123 Company sold last Januray 4

BCR Cash 30,870.00 Cash
Sales Discount 630.00 31,500 x .02 Sales Discount
Accounts Receivable 31,500.00

15 Purchased additional 5 pcs. of toys for 2,200.00 each FOR CASH

BCD Merchandise Inventory 11,000.00 2,200 x 5 Purchases

Cash 11,000.00

16 Mr. Timo withdrew ₱ 5,000.00 cash for personal use

GJ Mr. Timo, Drawing 5,000.00 Mr. Timo, Drawing

Cash 5,000.00

17 Received refund from cash supplier due to 1 pc. of toy that was damaged.

BCD Cash 2,200.00 Cash

Merchandise Inventory 2,200.00

20 Paid half the amount due to the furniture bought last January10.

BCD Accounts Payable 6,000.00 Accounts Payable

Cash 6,000.00

24 Sold 5 toys for cash, 4,500.00 each

BCR Cash 22,500.00 4500 X 5 Cash

Sales 22,500.00

Cost of Goods Sold 12,600.00 2 X 3000 AND 3 X 2200

Merchandise Inventory 12,600.00

25 Purchase 5 toys from Prime Suppliers, ₱ 3,500.00, terms 2/10, n/30

BCD Merchandise Inventory 17,500.00 3,500 X 5 Purchases

Accounts Payable 17,500.00

26 Made refunds to cash customers for 1 defective toy.

BCR Sales Returns and Allowances 4,500.00 Sales Returns and Allowances
Cash 4,500.00

29 Paid the salary store assistant, ₱5,500.00, and rent of the shop, ₱4,000.00

BCD Salaries Expense 5,500.00 Salaries Expense

Rent Expense 4,000.00 Rent Expense
Cash 9,500.00

30 Sold 3 pcs. of toys to 456 Ent. For 4,500.00 each Terms 2/10, n/30

BCR Accounts Receivable 13,500.00 4500 X 3 Accounts Receivable

 Sales 13,500.00

Cost of Goods Sold 9,200.00 1 X 2200 AND 2 X 3500

Merchandise Inventory 9,200.00

* At the end of the month, merchandise inventory was counted to be worth ₱ 9,960
The company follows the Straight-line method in depreciating its Fixed Assets

Required:
1 Prepare the necessary journal entries
2 Post to ledger
3 Prepare Trial Balance
4 Journalize closing entries
5 Prepare Financial Statements for July, 2021

Perpetual
Periodic
023 by Mr. Timo with an initial investment of ₱ 20,000.00. The following are the company's transactions for January, 2023
periodic
Cash ₱ 20,000.00
Mr. Timo, Capital ₱ 20,000.00

ach with terms 2/10, n/30.

Purchases 30,000.00 13839.28

Accounts Payable 30,000.00 1660.72

Supplies 1,900.00
Cash 1,900.00

Accounts Receivable 31,500.00 ar

Sales 31,500.00 sales
output tax payable

Accounts Payable 3,000.00

Purchase Returns and Allowances 3,000.00

Cash 15,000.00
Notes Payable 15,000.00

Furniture 12,000.00
Accounts Payable 12,000.00

BCD

Accounts Payable 27,000.00

Purchase Discount 540.00
Cash 26,460.00

BCR
 Cash 30,870.00
Sales Discount 630.00
Accounts Receivable 31,500.00

BCD

Purchases 11,000.00
Cash 11,000.00

GJ

Mr. Timo, Drawing 5,000.00

Cash 5,000.00

BCD

Cash 2,200.00
Purchase Returns and Allowances 2,200.00

BCD

Accounts Payable 6,000.00

Cash 6,000.00

BCR/FREIGHT :BCD

Cash 22,500.00
Sales 22,500.00

0 AND 3 X 2200

BCD

Purchases 17,500.00
Accounts Payable 17,500.00

BCR

Sales Returns and Allowances 4,500.00

Cash 4,500.00

BCD

Salaries Expense 5,500.00

Rent Expense 4,000.00
Cash 9,500.00

BCR

Accounts Receivable 13,500.00

 Sales 13,500.00

0 AND 2 X 3500

Merchandise Inventory 9,960.00

Income Summary 9,960.00
January, 2023

fob shipping point= shipping fee is charged to the buyer

buyer merchandise inventory
seller mo entry
buyer no entry

14200
12678.57
utput tax payable 1521.43
harged to the buyer

PCS
1-Jul 500
2-Jul -450
3-Jul 500
COST
10 5000
10 -4500
8 4000
Optimus Products Trading CASH SALES CASH COLLECTION OF RECEIVABLE
Book of Cash Receipt/Cash Reciept Books SALES on ACCOUNT
For the month of January, 2023
Debit Debit Debit
OR
No./Sales Accounts
Date Description Inv Cash Receivable Sales Discount
Jan-04 Sale to 123 Co 7pcs @ 4,500 each 31,500.00
14 Full collection from 123 Co 30,870.00 630.00
24 Cash sale 22,500.00
26 Refunds to cash customer
30 Sale of 3 toys @4,500 each to 456 ent 13,500.00

Total 53,370.00 45,000.00 630.00

Entry:

101 Cash 53,370.00

112 Accounts Receivable 45,000.00
415 Sales Discount 630.00
530 Cost of Goods Sold 42,800.00
412 Sales Returns and Allowances 4,500.00
112 Accounts Receivable 31,500.00
401 SAles 67,500.00
120 Merchandise Inventory 42,800.00
101 CAsh 4,500.00
146,300.00 146,300.00
N OF RECEIVABLE

Debit Debit Credit Credit Credit

Sales Returns
Cost of Goods and (Accounts (Merchandise
Sold Allowances Receivable) (Sales) Inventory) Sundries
21,000.00 (31,500.00) (21,000.00)
(31,500.00)
12,600.00 (22,500.00) (12,600.00)
4,500.00 Cash
9,200.00 (13,500.00) (9,200.00)

42,800.00 4,500.00 (31,500.00) (67,500.00) (42,800.00)

Sundries Balance
0.00
0.00
0.00
(4,500.00) 0.00
0.00
0.00

0.00

(4,500.00) 0.00
Optimus Products Trading PURCHASE ON ACCOUNT
Book of Cash Disbursement / Cash Disbursement Book CASH PAYMENT
For the month of January, 2023
Credit

Check/
Voucher
Date Description Number (Cash)
Purchased from ABC Suppliers 10 pcs. of toys amounting to ₱
Jan-02 3,000.00 each with terms 2/10, n/30.
03 Supplies (1,900.00)
05 Retuned 1 toy to ABC
10 Store Furniture
12 Full payment to ABC Suppliers (26,460.00)
15 Cash purchase 5 toys @2,200 each (11,000.00)
17 Refund from Cash supplier
20 Paid half of furniture (6,000.00)
25 5 toys from Prime @ 3,500 each
29 Operating Expenses (9,500.00)

Total (54,860.00)

Entry
201 Accounts Payable 36,000.00
120 Merchandise Inventory 58,500.00
601 Salaries Expense 5,500.00
605 Rent Expense 4,000.00
101 Cash 2,200.00
126 Supplies 1,900.00
130 Furniture 12,000.00
101 Cash 0.00
201 Accounts Payable
120 Merchandise Inventory

120,100.00
ON ACCOUNT

Credit Credit Debit Debit Debit Debit

(Accounts (Merchandise Accounts Merchandise Salaries

Payable) Inventory) Payable Supplies Inventory Expense

(30,000.00) 30,000.00
1,900.00
(3,000.00) 3,000.00
(12,000.00)
(540.00) 27,000.00
11,000.00
(2,200.00)
6,000.00
(17,500.00) 17,500.00
5,500.00

(59,500.00) (5,740.00) 36,000.00 1,900.00 58,500.00 5,500.00

54,860.00
59,500.00
5,740.00

120,100.00
Debit Debit

Utilities
Rent Expense Expense Sundries Balance

0.00
0.00
0.00
Furniture 12,000.00 0.00
0.00
0.00
Cash 2,200.00 0.00
0.00
0.00
4,000.00 0.00
0.00

4,000.00 0.00 0.00 14,200.00 0.00

 Journal

Date Particulars Debit Credit

2023
January 2 Cash ₱ 20,000.00
Mr. Timo, Capital ₱ 20,000.00
To record owner's investment

7 Cash 15,000.00
Notes Payable 15,000.00

16 Mr. Timo, Drawing 5,000.00

Cash 5,000.00

Adjusting Entries
January 31 Depreciation Epense - Furniture 225.81
Accumulated Depreciation - Furniture 225.81
To record depreciation expense for Jan 2023

31 Accounts Receivable 4,870.00

Bank Charges 150.00
Mr. Timo, Drawings 574.00
Interest income 240.00
Cash 5,354.00
To record adjustment from bank reconciliation

31
Closing Entries

Particulars Debit Credit

January 31 Sales ₱ 67,500.00

Sales Returns and Allowances ₱ 4,500.00
Sales Discount 630.00
Income Summary 62,370.00
To close Sales to Income Summary

Income Summary 42,800.00

Cost of Goods Sold 42,800.00
To close COGS to Income Summary

Income Summary 9,875.81

Salaries Expense 5,500.00
Rent Expense 4,000.00
Bank Charges 150.00
Depreciation expense 225.81
To close expenses to Income Summary

Interest income 240.00

Income Summary 240.00
To close Other income to Income Summary

Mr. Timo Capital 5,574.00

Mr. Timo, Drawing 5,574.00
To close Drawing to Capital Account

Income Summary 9,934.19

Mr. Timo, Capital 9,934.19
To close Income Summary to CApital Account
9,934.19
Optimus Products Trading
Lapsing Schedule (COST - SALVAGE VALUE)/USEFUL LIFE
For the month of January, 2023

Furniture Straight Line Method

Date
Asset SN Cost Salvage
Purchased

Furniture 12,000.00 1/10/2023 0

Major Repair

Total Furniture 12,000.00

Total Fixed Asset 12,000.00

Entries

Jan. 31

Feb 28
Depreciation Expense-Furniture 333.33 Depreciaiton Expense
Accumulated Depreciation - Furniture 333.33

March 31 Balance Sheet

Depreciation Expense-Furniture 333.33 Cost
Accumulated Depreciation - Furniture 333.33 Less AD-Furn
NBV
April 30
Depreciation Expense-Furniture 333.33
Accumulated Depreciation - Furniture 333.33 Cash
AD-Furn
Furniture

Cash
AD-Furn
Furniture
Gain on Sale

Cash
AD-Furn
Loss on Sale
Furniture
 bldg 50 yrs 600
machine 5 years 60
furniture 3 years 36 cost/useful life
Vehicle 5 years 60

Accumulated
Useful Life
January February March April May Depreciation
in months
for 2023
36 333.33 333.33 333.33 333.33 1,333.33

0.00 0.00 333.33 333.33 333.33 333.33 1,333.33

0.00 333.33 333.33 333.33 333.33 1,333.33

Feb March April

reciaiton Expense 333.33 333.33 333.33

12,000.00 12,000.00 12,000.00

333.33 666.66 999.99
11,666.67 11,333.34 11,000.01

11,000.01 Furniture Accumulated Depreciaiton

999.99 12,000.00 333.33
12,000.00 12,000.00 333.33
- 333.33
12,000.00 999.99 999.99
999.99
12,000.00
Gain on Sale 999.99

10,000.00
999.99
1,000.01
12,000.00
Net Book
Value

10,666.67

10,666.67

10,666.67

12074.71
 Optimus Products Trading
Bank Reconciliation Statement
As of January 31, 2023

BOOK RECONCILIATION
Adjusting entry:
Balance per books 26,210.00 Cash
Add: Cash collected by bank 26,000.00 Accounts receivable
Interest income 240.00 26,240.00
Total 52,450.00 Cash
Deduct: Bank Service Charge 150.00 Interest income
NSF check returned 30,870.00
Debit Memo-Withdrawal 574.00 31,594.00 5,354.00 Bank Charge
Adjusted Cash balance per book 20,856.00 Cash

Accounts receiv
Cash
BANK RECONCILIATION
Mr. Timo, Drawi
Balance per bank 10,156.00 Cash
Add: Deposit in transit 2,200.00
22,500.00 24,700.00
Total 34,856.00

Deduct Outstanding Checks 4,500.00

9,500.00 14,000.00
Adjusted cash balance per bank 20,856.00

mi -
ap -
 CASH
Date Explanation P.R
Jan 1 Initial Investment
3 Supplies for cash
7 Loan from City Bank
usting entry: 12 Full payment to ABC
26,000.00 14 Collection from 123 Co
ccounts receivable 26,000.00 15 Cash purchase 5 toys @2,200
16 Withdrawal
240.00 17 Refund from cash purchase
terest income 240.00 20 Paid half the amount of furniture
24 Cash sales
150.00 26 refunds to cash customer for defective toy
150.00 29 Salary and rent

30,870.00
30,870.00

574.00
574.00
 ACCOUNT NO. 101 Bank Statement Account
DEBIT CREDIT BALANCE Date Description DEBIT
20,000.00 20,000.00 Jan 1 Deposit
1,900.00 18,100.00 3 Withdrawal 1,900.00
15,000.00 33,100.00 8 Deposit
26,460.00 6,640.00 13 Check 26,460.00
30,870.00 37,510.00 15 Deposit
11,000.00 26,510.00 16 Interest Income
5,000.00 21,510.00 Check 11,000.00
2,200.00 23,710.00 16 Withdrawal 5,000.00
6,000.00 17,710.00 18 Insufficient Fund 30,870.00
22,500.00 40,210.00 20 Fund transfer
4,500.00 35,710.00 21 Service Charge 150.00
9,500.00 26,210.00 24 Withdrawal 574.00
Check 6,000.00
30 Interest Income
 Account 101
CREDIT BALANCE
20,000.00 20,000.00
18,100.00
15,000.00 33,100.00
6,640.00
30,870.00 37,510.00
100.00 37,610.00
26,610.00
21,610.00
-9,260.00
26,000.00 16,740.00
16,590.00
16,016.00
10,016.00
140.00 10,156.00
Account Code Account Beginning Balance BCR
Debit Credit Debit Credit

101 Cash 0.00 0.00 53,370.00 4,500.00

112 Accounts Receivable 0.00 0.00 45,000.00 31,500.00
113 Notes Receivable
120 Merchandise Inventory 0.00 0.00 0.00 42,800.00
126 Supplies 0.00 0.00 0.00 0.00
130 Furniture 0.00 0.00 0.00 0.00
131 Accumulated depreciation - Furniture
201 Accounts Payable 0.00 0.00 0.00 0.00
205 Notes Payable 0.00 0.00 0.00 0.00
301 Mr. Timo, Capital 0.00 0.00 0.00 0.00
302 Mr. Timo, Drawing 0.00 0.00 0.00 0.00
401 Sales 0.00 0.00 0.00 67,500.00
412 Sales Returns and Allowances 0.00 0.00 4,500.00 0.00
415 Sales Discount 0.00 0.00 630.00 0.00
420 Interest income
510 Purchases 0.00 0.00 0.00 0.00
512 Purchase Returns and Allowance 0.00 0.00 0.00 0.00
514 Purchase Discount 0.00 0.00 0.00 0.00
516 Freight In 0.00 0.00 0.00 0.00
530 Cost of Goods Sold 0.00 0.00 42,800.00 0.00
601 Salaries Expense 0.00 0.00 0.00 0.00
605 Rent Expense 0.00 0.00 0.00 0.00
606 Bank Charge
634 Depreciation Expense - Furniture 0.00 0.00 0.00 0.00

146,300.00 146,300.00
0.00
 BCD General Journal Trial Balance Adjusting Entries
Debit Credit Debit Credit Debit Credit Debit

2,200.00 54,860.00 35,000.00 5,000.00 26,210.00 0.00

0.00 0.00 13,500.00 4,870.00
0.00
58,500.00 5,740.00 9,960.00 0.00
1,900.00 0.00 1,900.00 0.00
12,000.00 0.00 12,000.00 0.00
0.00
36,000.00 59,500.00 23,500.00 0.00
0.00 0.00 15,000.00 15,000.00 0.00
0.00 0.00 20,000.00 20,000.00 0.00
0.00 0.00 5,000.00 5,000.00 574.00
0.00 0.00 67,500.00 0.00
0.00 0.00 4,500.00 0.00
0.00 0.00 630.00 0.00
0.00
0.00 0.00 0.00
0.00 0.00 0.00
0.00 0.00 0.00
0.00 0.00 0.00
0.00 0.00 42,800.00 0.00
5,500.00 0.00 5,500.00 0.00
4,000.00 0.00 4,000.00 0.00
150.00
0.00 0.00 0.00 225.81

120,100.00 120,100.00 40,000.00 40,000.00 126,000.00 126,000.00 5,819.81

0.00 0.00 0.00 0.00
Adjusting Entries Adjusted Trial Balance Income Statement Balance Sheet
Credit Debit Credit Debit Credit Debit Credit

5,354.00 20,856.00 20,856.00 0.00

0.00 18,370.00 18,370.00 0.00
0.00 0.00 0.00 0.00
0.00 9,960.00 9,960.00 0.00
0.00 1,900.00 1,900.00 0.00
0.00 12,000.00 12,000.00 0.00
225.81 225.81 0.00 225.81
0.00 23,500.00 0.00 23,500.00
0.00 15,000.00 0.00 15,000.00
0.00 20,000.00 0.00 20,000.00
0.00 5,574.00 5,574.00 0.00
0.00 67,500.00 0.00 67,500.00
0.00 4,500.00 4,500.00 0.00
0.00 630.00 630.00 0.00
240.00 240.00 0.00 240.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 42,800.00 42,800.00 0.00
0.00 5,500.00 5,500.00 0.00
0.00 4,000.00 4,000.00 0.00
0.00 150.00 150.00 0.00
0.00 225.81 225.81 0.00

5,819.81 126,465.81 126,465.81 57,805.81 67,740.00 68,660.00 58,725.81

0.00
Net Income 9,934.19 9,934.19
Total 67,740.00 67,740.00 68,660.00 68,660.00
0.00 0.00