Comprehensive Problem

The Dec. 31, 2023, post-closing trial balance for the Batang Quiapo Company follows:

Batang Quiapo Company

Post-Closing Trial Balance
Dec. 31, 2023

110 Cash P 240,000

120 Accounts Receivable 210,000
130 Merchandise Inventory 730,000
140 Prepaid Rent 90,000
150 Office Supplies 160,000
160 Office Equipment 1,000,000
165 Accumulated Depreciation P 250,000
210 Notes Payable 400,000
220 Accounts Payable 130,000
230 Salaries Payable
310 Tanggol, Capital 1,650,000
320 Tanggol, Withdrawals
330 Income Summary
410 Sales
420 Sales Returns and Allowances
430 Sales Discounts
510 Purchases
520 Purchases Returns and Allowances
530 Purchases Discounts
540 Transportation In
610 Salaries Expense
620 Rent Expense
630 Office Supplies Expense
640 Depreciation Expense
650 Interest Expense __________________________
P2,430,000 P2,430,000

Accounts receivable of P210,000 is related to a scale to R. Matilde on Dec. 28, 2023. All credits
sales are 210, n/30. The account payable balance of P130,000 is attributable to a purchase on
Dec. 29, 2023 from E. Samonte Company. All credit purchases are 3/10, n/30.
During the month of Jan. 2024, the following transactions were completed:

Jan 2 Sold merchandise on credit to B. Don Ramon, P240,000. Invoice no. 316.
3 Purchased merchandise on account from T. Arenas Company, P90,000.
Invoice dated Jan. 2.
4 Collected amount due from Dc. 28 sale to R. Matilde less discounts.
5 Sold merchandise for cash, P430,000.
7 Paid amount due to E.Samonte Company for the purchase of Dec. 29,
2014 less discounts. Issued check no. 83.
8 Sold merchandise on account to G. Sevidal, P310,000. Invoice no. 317.
9 Returned merchandise purchased from T. Arenas Company, P10,000.
10 Collected amount due from B. Don Ramon less discounts.
11 Purchased merchandise on account from L. Viray Company, P120,000.
Invoice dated Jan. 10.
11 Paid T. Arenas Company amount due less returns and discounts. Issued check
no. 84.
12 Purchased merchandise for cash, P70,000. Issued check no. 85.
13 Sold merchandise on account to G. Mokang, P130,000. Invoice no. 318.
14 Paid interest on the note payable, P10,000. Issued check no. 86.
15 Paid salaries, P80,000. Issued check no. 87.
17 Purchased merchandise on account from E. Samonte Company, P190,000.
Invoice dated Jan. 14.
18 Sold merchandise on account to R. Matilde, P460,000. Invoice no.319.
19 Tanggol withdrew P100,000 from the business. Issued check no. 88.
21 Acquired office supplies for cash, P40,000. Issued check no. 89.
22 Paid freight charges on the merchandise purchased from E. Samonte Company
on Jan. 17, P20,000. Issued check no. 90.
22 Collected amount due from G. Mokang less discounts.
23 Sold merchandise on credit to B. Don Ramon, P110,000. Invoice no. 320.
24 Received returned merchandise from G. Sevidal, P30,000.
25 Received amount due from G. Sevidal on the sale of Jan. 8 less returns.
25 Purchased merchandise on account from A. Braganza Company, P340,000.
Invoice dated Jan. 24.
26 Paid P90,000 to E. Samonte Company in partial payment of account.
Issued check no.91.
27 Received a P170,000 loan from the First Morayta Bank and issued a note
payable.
28 Purchased merchandise on account from L.Viray Company, P270,000
Invoice dated Jan. 29.
29 Sold merchandise on account to G. Mokang, P170,000. Invoice no. 321.
30 Purchased merchandise on account from T. Arenas Company, P130,000. Involve
dated Jan. 29.
 30 Sold merchandise for cash, P1,310,000.
Required:

1. Enter the Dec. 31, 2023, post-closing trial balance amounts in the general and
subsidiary ledgers.

2. Record the transactions for the month of January using special journals.

3. Total the journals and post to the general and subsidiary ledger accounts. Use the
following
journal page number:

Sales Journal 16
Purchases Journal 25
Cash Receipts Journal 35
Cash Payments Journal 43
General Journal 13

4. Determine the balance in each account and prepare the unadjusted trial balance in the
worksheet.

5. Prepare the following adjusting entries in the worksheet:

a. Prepaid rent of P30,000 has expired.

b. Office supplies at month-end amounted to P70,000.
c. Monthly depreciation on the office equipment amounted to P10,000.
d. Salaries of P90,000 have occurred.

6. Complete the worksheet. The ending inventory amounted to P470,000.

7. Prepare the financial statements.

8. Record the adjusting and closing entries in the general journal. Post entries to the
general ledger.
9. Prepare schedules of accounts receivable and accounts payable.
 CASH RECEIPTS JOURNAL

Debits Credits
O.R.
Date No. Description Sales Accounts Other Accounts
Cash Discounts Receivable Sales
Account Title PR Amount

CASH PAYMENTS JOURNAL

Credits Debits
Ck.
Date No. Description Purchases Accounts Other Accounts
Cash Discount Payable Purchases
Account Title PR Amount
 SALES JOURNAL Page 16
Invoice No. Post. Ref. Accounts Rec. Dr./ Sales Cr.
Date Account Debited

PURCHASES JOURNAL Page 25

R.R. Purchases Dr./ Accounts Payable Cr.

Date No. Account Credited PR