Fundamentals of Accounting,

Business and Management 2

Activity 7
PRINCESS
Merchandising

TOLENTINO, Mary DJazel A.

ABM 12 -2
 General Journal Page 1

Date
Description P/R Debit Credit
2016
Dec 01 Cash ₱ 4 2 0 0 0 0 00
Merchandise inventory 1 8 0 0 0 0 00
Princess, capital ₱ 6 0 0 0 0 0 00

03 Rent expense 1 8 0 0 0 00
Cash 1 8 0 0 0 00

04 Store supplies expense 8 0 0 0 00

Cash 8 0 0 0 00

04 Furniture and fixtures 6 0 0 0 0 00

Cash 6 0 0 0 0 00

05 Insurance expense 2 4 0 0 0 00
Cash 2 4 0 0 0 00

06 Office supplies expense 4 0 0 0 00

Cash 4 0 0 0 00

07 Purchases 5 6 0 0 0 00
Cash 5 6 0 0 0 00

08 Purchases 2 0 0 0 0 00
Accounts payable 2 0 0 0 0 00

09 Purchases 2 8 0 0 0 00
Cash 5 6 0 0 00
Accounts payable 2 2 4 0 0 00

09 Purchases 4 5 0 0 0 00
Accounts payable 4 5 0 0 0 00

10 Accounts receivable 2 0 0 0 00
Purchases returns and allowances 2 0 0 0 00

12 Purchases 1 2 0 0 0 00
Accounts payable 1 2 0 0 0 00

12 Cash 1 7 0 0 0 00
Sales 1 7 0 0 0 00

13 Accounts receivable 1 5 0 0 0 00
Sales 1 5 0 0 0 00

13 Accounts receivable 1 2 0 0 0 00
Sales 1 2 0 0 0 00
₱ 9 2 1 0 0 0 00 ₱ 9 2 1 0 0 0 00
 General Journal Page 2

Date
Description P/R Debit Credit
2016
Dec 13 Balance forwarded ₱ 9 2 1 0 0 0 00 ₱ 9 2 1 0 0 0 00

14 Accounts receivable 1 1 5 0 0 0 00
Sales 1 1 5 0 0 0 00

14 Purchases 6 7 0 0 0 00
Accounts payable 6 7 0 0 0 00

14 Purchases 2 5 0 0 0 00
Cash 2 5 0 0 0 00

15 Sales returns and allowances 1 0 0 0 00

Accounts receivable 1 0 0 0 00

15 Cash 3 5 0 0 0 00
Sales 3 5 0 0 0 00

15 Salaries expense 2 5 0 0 0 00
Pag-IBIG contributions 5 0 0 00
SSS contributions 5 0 0 00
PhilHealth contributions 8 0 0 00
Cash 232 0 0 00

15 Purchases 2 5 0 0 0 00
Accounts payable 2 5 0 0 0 00

16 Freight-out 5 0 0 00
Cash 5 0 0 00

17 Purchases 2 5 0 0 0 00
Accounts payable 2 5 0 0 0 00

17 Utilities expense 2 0 0 0 00
Cash 2 0 0 0 00

17 Cash 2 3 0 0 0 00
Sales 2 3 0 0 0 00

17 Transportation equipment 2 2 5 0 0 0 00
Cash 2 2 5 0 0 0 00

18 Accounts payable 4 5 0 0 0 00
Purchase discount 9 0 0 00
Cash 4 4 1 0 0 00

19 Accounts payable 2 2 4 0 0 00
Purchase discount 4 4 8 00
Cash 2 1 9 5 2 00

20 Accounts payable 5 0 0 0 00
Cash 5 0 0 0 00
₱ 1 5 6 1 9 0 0 00 ₱ 1 5 6 1 9 0 0 00
 General Journal Page 3

Date
Description P/R Debit Credit
2016
Dec 20 Balance forwarded ₱ 1 5 6 1 9 0 0 00 ₱ 1 5 6 1 9 0 0 00

21 Cash 2 6 0 0 0 00
Sales 2 6 0 0 0 00

21 Accounts receivable 2 2 0 0 0 00
Sales 2 2 0 0 0 00

22 Cash 2 8 0 0 0 00
Sales 2 8 0 0 0 00

22 Purchases 2 8 0 0 00
Cash 2 8 0 0 00

23 Cash 1 1 7 6 0 00
Sales discount 2 4 0 00
Accounts receivable 1 2 0 0 0 00

23 Accounts receivable 2 5 0 0 0 00
Sales 2 5 0 0 0 00

24 Sales returns and allowances 1 0 0 0 00

Cash 1 0 0 0 00

24 Cash 2 0 0 0 0 00
Sales 2 0 0 0 0 00

25 Purchases 2 5 0 0 0 00
Accounts payable 2 5 0 0 0 00

25 Accounts receivable 2 0 0 0 0 00
Sales 2 0 0 0 0 00

25 Cash 5 0 0 0 0 00
Sales 5 0 0 0 0 00

30 Salaries expense 3 5 0 0 0 00
Withholding tax 5 0 0 0 00
Cash 3 0 0 0 0 00

30 SSS contributions 5 0 0 00
Pag-IBIG contributions 5 0 0 00
PhilHealth contributions 6 0 0 00
Cash 1 6 0 0 00

30 Purchases 4 5 0 0 0 00
Accounts payable 4 5 0 0 0 00

30 Cash 1 1 5 0 0 0 00
Accounts receivable 1 1 5 0 0 0 00
₱ 1 9 9 0 3 0 0 00 ₱ 1 9 9 0 3 0 0 00
 General Journal Page 4

Date
Description P/R Debit Credit
2016
Dec 30 Balance forwarded ₱ 1 9 9 0 3 0 0 00 ₱ 1 9 9 0 3 0 0 00

31 Accounts payable 1 2 0 0 0 00
Cash 1 2 0 0 0 00

31 Princess, drawing 1 5 0 0 0 00
Cash 1 5 0 0 0 00

31 Taxes and licenses expense 7 8 0 0 00

Cash 7 8 0 0 00
Totals ₱ 2 0 2 5 1 0 0 00 ₱ 2 0 2 5 1 0 0 00
 Cash Account # 101

Date
Item P/R Debit Credit Balance
2016
Dec 01 GJ1 ₱ 4 2 0 0 0 0 00 ₱ 4 2 0 0 0 0 00
03 GJ1 ₱ 18 0 0 0 00 4 0 2 0 0 0 00
04 GJ1 8 0 0 0 00 3 9 4 0 0 0 00
04 GJ1 60 0 0 0 00 3 3 4 0 0 0 00
05 GJ1 24 0 0 0 00 3 1 0 0 0 0 00
06 GJ1 4 0 0 0 00 3 0 6 0 0 0 00
07 GJ1 56 0 0 0 00 2 5 0 0 0 0 00
09 GJ1 5 6 0 0 00 2 4 4 4 0 0 00
12 GJ1 1 7 0 0 0 00 2 6 1 4 0 0 00
14 GJ2 2 5 0 0 0 00 2 3 6 4 0 0 00
15 GJ2 3 5 0 0 0 00 2 7 1 4 0 0 00
15 GJ2 2 3 2 0 0 00 2 4 8 2 0 0 00
16 GJ2 5 0 0 00 2 4 7 7 0 0 00
17 GJ2 2 0 0 0 00 2 4 5 7 0 0 00
17 GJ2 2 3 0 0 0 00 2 6 8 7 0 0 00
17 GJ2 22500 0 00 4 3 7 0 0 00
18 GJ2 4410 0 00 ( 4 0 0 00)
19 GJ2 2195 2 00 ( 22 3 5 2 00)
20 GJ2 500 0 00 ( 27 3 5 2 00)
21 GJ3 2 6 0 0 0 00 ( 1 3 5 2 00)
22 GJ3 2 8 0 0 0 00 26 6 4 8 00
22 GJ3 2 8 0 0 00 23 8 4 8 00
23 GJ3 1 1 7 6 0 00 35 6 0 8 00
24 GJ3 1 0 0 0 00 34 6 0 8 00
24 GJ3 2 0 0 0 0 00 54 6 0 8 00
25 GJ3 5 0 0 0 0 00 1 04 6 0 8 00
30 GJ3 3 0 0 0 0 00 74 6 0 8 00
30 GJ3 1 6 0 0 00 73 0 0 8 00
30 GJ3 1 1 5 0 0 0 00 1 88 0 0 8 00
31 GJ4 1 2 0 0 0 00 1 76 0 0 8 00
31 GJ4 1 5 0 0 0 00 1 61 0 0 8 00
31 GJ4 7 8 0 0 00 1 53 2 0 8 00
 Accounts receivable Account # 102

Date
Item P/R Debit Credit Balance
2016
Dec 10 GJ1 ₱ 200 0 00 ₱ 2 0 0 0 00
13 GJ1 1500 0 00 1 7 0 0 0 00
13 GJ1 1200 0 00 2 9 0 0 0 00
14 GJ2 11500 0 00 1 4 5 0 0 0 00
15 GJ2 ₱ 1 0 0 0 00 1 4 4 0 0 0 00
21 GJ3 2 2 0 0 0 00 1 6 6 0 0 0 00
23 GJ3 1 2 0 0 0 00 1 5 4 0 0 0 00
23 GJ3 2 5 0 0 0 00 1 7 9 0 0 0 00
25 GJ3 2 0 0 0 0 00 1 9 9 0 0 0 00
30 GJ3 1 1 5 0 0 0 00 8 3 0 0 0 00
 Merchandise inventory Account # 103

Date
Item P/R Debit Credit Balance
2016
Dec 01 GJ1 ₱ 1 8 0 0 0 0 00 ₱ 1 8 0 0 0 0 00
 Delivery equipment Account # 104

Date
Item P/R Debit Credit Balance
2016
Dec 17 GJ2 ₱ 2 2 5 0 0 0 00 ₱ 2 2 5 0 0 0 00
 Furniture and fixtures Account # 105

Date
Item P/R Debit Credit Balance
2016
Dec 04 GJ1 ₱ 6 0 0 0 0 00 ₱ 6 0 0 0 0 00
 Accounts payable Account # 201

Date
Item P/R Debit Credit Balance
2016
Dec 08 GJ1 ₱ 2 0 0 0 0 00 ₱ 2 0 0 0 0 00
09 GJ1 2 2 4 0 0 00 4 2 4 0 0 00
09 GJ1 4 5 0 0 0 00 8 7 4 0 0 00
12 GJ1 1 2 0 0 0 00 9 9 4 0 0 00
14 GJ2 6 7 0 0 0 00 1 1 6 4 0 0 00
15 GJ2 2 5 0 0 0 00 1 9 1 4 0 0 00
17 GJ2 2 5 0 0 0 00 2 1 6 4 0 0 00
18 GJ2 ₱ 4 5 0 0 0 00 1 7 1 4 0 0 00
19 GJ2 2 2 4 0 0 00 1 4 9 0 0 0 00
20 GJ2 5 0 0 0 00 1 4 4 0 0 0 00
25 GJ3 2 5 0 0 0 00 1 6 9 0 0 0 00
30 GJ3 4 5 0 0 0 00 2 1 4 0 0 0 00
31 GJ4 1 2 0 0 0 00 2 0 2 0 0 0 00
 Tax payable Account # 202

Date
Item P/R Debit Credit Balance
2016
Dec 30 GJ3 ₱ 5 0 0 0 00 ₱ 5 0 0 0 00
 Princess, capital Account # 301

Date
Item P/R Debit Credit Balance
2016
Dec 01 GJ1 ₱ 6 0 0 0 0 0 00 ₱ 6 0 0 0 0 0 00
 Princess, drawing Account # 302

Date
Item P/R Debit Credit Balance
2016
Dec 30 GJ4 ₱ 1 5 0 0 0 00 ₱ 1 5 0 0 0 00
 Sales Account # 401

Date
Item P/R Debit Credit Balance
2016
Dec 12 GJ1 ₱ 1 7 0 0 0 00 ₱ 1 7 0 0 0 00
13 GJ1 1 5 0 0 0 00 3 2 0 0 0 00
13 GJ1 1 2 0 0 0 00 4 4 0 0 0 00
14 GJ2 11 5 0 0 0 00 1 5 9 0 0 0 00
15 GJ2 3 5 0 0 0 00 1 9 4 0 0 0 00
17 GJ2 2 3 0 0 0 00 2 1 7 0 0 0 00
21 GJ3 2 6 0 0 0 00 2 4 3 0 0 0 00
21 GJ3 2 2 0 0 0 00 2 6 5 0 0 0 00
22 GJ3 2 8 0 0 0 00 2 9 3 0 0 0 00
23 GJ3 2 5 0 0 0 00 3 1 8 0 0 0 00
24 GJ3 2 0 0 0 0 00 3 3 8 0 0 0 00
25 GJ3 2 0 0 0 0 00 3 5 8 0 0 0 00
25 GJ3 5 0 0 0 0 00 4 0 8 0 0 0 00
 Sales returns and allowances Account # 402

Date
Item P/R Debit Credit Balance
2016
Dec 15 GJ2 ₱ 1 0 0 0 00 ₱ 1 0 0 0 00
24 GJ3 1 0 0 0 00 2 0 0 0 00
 Sales discount Account # 403

Date
Item P/R Debit Credit Balance
2016
Dec 23 GJ3 ₱ 2 4 0 00 ₱ 2 4 0 00
 Purchases Account # 501

Date
Item P/R Debit Credit Balance
2016
Dec 07 GJ1 ₱ 56 0 0 0 00 ₱ 5 6 0 0 0 00
08 GJ1 20 0 0 0 00 7 6 0 0 0 00
09 GJ1 28 0 0 0 00 1 0 4 0 0 0 00
09 GJ1 45 0 0 0 00 1 4 9 0 0 0 00
12 GJ1 12 0 0 0 00 1 6 1 0 0 0 00
14 GJ2 67 0 0 0 00 2 2 8 0 0 0 00
14 GJ2 25 0 0 0 00 2 5 3 0 0 0 00
15 GJ2 25 0 0 0 00 2 7 8 0 0 0 00
17 GJ2 25 0 0 0 00 3 0 3 0 0 0 00
22 GJ3 2 8 0 0 00 3 0 5 8 0 0 00
25 GJ3 25 0 0 0 00 3 3 0 8 0 0 00
30 GJ3 45 0 0 0 00 3 7 5 8 0 0 00
 Purchase returns and allowances Account # 502

Date
Item P/R Debit Credit Balance
2016
Dec 10 GJ1 ₱ 2 0 0 0 00 ₱ 2 0 0 0 00
 Purchase discount Account # 503

Date
Item P/R Debit Credit Balance
2016
Dec 18 GJ2 ₱ 9 0 0 00 ₱ 9 0 0 00
19 GJ2 4 4 8 00 1 3 4 8 00
 Rent expense Account # 504

Date
Item P/R Debit Credit Balance
2016
Dec 03 GJ1 ₱ 1 8 0 0 0 00 ₱ 1 8 0 0 0 00
 Store supplies expense Account # 505

Date
Item P/R Debit Credit Balance
2016
Dec 04 GJ1 ₱ 8 0 0 0 00 ₱ 8 0 0 0 00
 Insurance expense Account # 506

Date
Item P/R Debit Credit Balance
2016
Dec 05 GJ1 ₱ 2 4 0 0 0 00 ₱ 2 4 0 0 0 00
 Office supplies expense Account # 507

Date
Item P/R Debit Credit Balance
2016
Dec 06 GJ1 ₱ 4 0 0 0 00 ₱ 4 0 0 0 00
 Salaries expense Account # 508

Date
Item P/R Debit Credit Balance
2016
Dec 15 GJ2 ₱ 2 5 0 0 0 00 ₱ 2 5 0 0 0 00
30 GJ3 3 5 0 0 0 00 6 0 0 0 0 00
 Freight-out Account # 509

Date
Item P/R Debit Credit Balance
2016
Dec 16 GJ2 ₱ 5 0 0 00 ₱ 5 0 0 00
 Pag-IBIG contributions Account # 510

Date
Item P/R Debit Credit Balance
2016
Dec 15 GJ2 ₱ 5 0 0 00 ₱ 5 0 0 00
30 GJ3 ₱ 5 0 0 00 -- --
 SSS contributions Account # 511

Date
Item P/R Debit Credit Balance
2016
Dec 15 GJ2 ₱ 5 0 0 00 ₱ 5 0 0 00
30 GJ3 ₱ 5 0 0 00 -- --
 PhilHealth contributions Account # 512

Date
Item P/R Debit Credit Balance
2016
Dec 15 GJ2 ₱ 8 0 0 00 ₱ 8 0 0 00
30 GJ3 ₱ 6 0 0 00 ( 2 0 0 00)
 Utilities expense Account # 513

Date
Item P/R Debit Credit Balance
2016
Dec 17 GJ2 ₱ 2 0 0 0 00 ₱ 2 0 0 0 00
 Taxes and licenses expense Account # 514

Date
Item P/R Debit Credit Balance
2016
Dec 31 GJ4 ₱ 7 8 0 0 00 ₱ 7 8 0 0 00
 PRINCESS Merchandising
Trial Balance
December 31, 2016
Account No. Account Title P/R Debit Credit

101 Cash ₱ 15 3 2 0 8 00
102 Accounts receivable 8 3 0 0 0 00
103 Merchandise inventory 18 0 0 0 0 00
104 Delivery equipment 22 5 0 0 0 00
105 Furniture and fixtures 6 0 0 0 0 00
201 Accounts payable ₱ 2 0 2 0 0 0 00
202 Tax payable 5 0 0 0 00
301 Princess, capital 6 0 0 0 0 0 00
302 Princess, drawing 1 5 0 0 0 00
401 Sales 4 0 8 0 0 0 00
402 Sales returns and allowances 2 0 0 0 00
403 Sales discount 2 4 0 00
501 Purchases 3 7 5 8 0 0 00
502 Purchase returns and allowances 2 0 0 0 00
503 Purchase discount 1 3 4 8 00
504 Rent expense 18 00 0 00
505 Store supplies expense 8 00 0 00
506 Insurance expense 24 00 0 00
507 Office supplies expense 4 00 0 00
508 Salaries expense 60 00 0 00
509 Freight-out 50 0 00
510 Pag-IBIG contributions -- --
511 SSS contributions -- --
512 PhilHealth contributions ( 20 0 00)
513 Utilities expense 200 0 00
514 Licenses and fees expense 780 0 00
Totals ₱ 12 1 8 3 4 8 00 ₱ 1 2 1 8 3 4 8 00
 Adjusting Entries Page 1

Date
Description P/R Debit Credit
2016
Dec 31 Utilities expense ₱ 4 5 0 0 00
Utilities payable ₱ 4 5 0 0 00

31 Depreciation expense 2 8 5 0 0 00
Accumulated depreciation-Delivery equipment 2 2 5 0 0 00
Accumulated depreciation-Furniture and fixtures 6 0 0 0 00

31 Prepaid office supplies 1 5 0 0 00

Office supplies expense 1 5 0 0 00

31 Prepaid store supplies 1 8 0 0 00

Store supplies expense 1 8 0 0 00

31 Bad debts expense 4 1 5 0 00

Allowance for doubtful accounts 4 1 5 0 00
Totals ₱ 4 0 4 5 0 00 ₱ 4 0 4 5 0 00
 PRINCESS Merchandising
Worksheet
December 31, 2016
Trial Balance Adjustmments Adjusted Trial Balance Comprehensive Income Financial Position
Account No. Account Title P/R
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
101 Cash ₱ 1 5 3 2 0 8 00 ₱ 1 5 3 2 0 8 00 ₱ 1 5 3 2 0 8 00
102 Accounts receivable 8 3 0 0 0 00 8 3 0 0 0 00 8 3 0 0 0 00
103 Merchandise inventory 1 8 0 0 0 0 00 1 8 0 0 0 0 00 1 8 0 0 0 0 00
104 Delivery equipment 2 2 5 0 0 0 00 2 2 5 0 0 0 00 2 2 5 0 0 0 00
105 Furniture and fixtures 6 0 0 0 0 00 6 0 0 0 0 00 6 0 0 0 0 00
201 Accounts payable ₱ 2 0 2 0 0 0 00 ₱ 2 0 2 0 0 0 00 ₱ 2 0 2 0 0 0 00
202 Tax payable 5 0 0 0 00 5 0 0 0 00 5 0 0 0 00
301 Princess, capital 6 0 0 0 0 0 00 6 0 0 0 0 0 00 6 0 0 0 0 0 00
302 Princess, drawing 1 5 0 0 0 00 1 5 0 0 0 00 1 5 0 0 0 00
401 Sales 4 0 8 0 0 0 00 4 0 8 0 0 0 00 ₱ 4 0 8 0 0 0 00
402 Sales returns and allowances 2 0 0 0 00 2 0 0 0 00 ₱ 2 0 0 0 00
403 Sales discount 2 4 0 00 2 4 0 00 2 4 0 00
501 Purchases 3 7 5 8 0 0 00 3 7 5 8 0 0 00 3 7 5 8 0 0 00
502 Purchase returns and allowances 2 0 0 0 00 2 0 0 0 00 2 0 0 0 00
503 Purchase discount 1 3 4 8 00 1 3 4 8 00 1 3 4 8 00
504 Rent expense 1 8 0 0 0 00 1 8 0 0 0 00 1 8 0 0 0 00
505 Store supplies expense 8 0 0 0 00 d) 1 8 0 0 00 6 2 0 0 00 6 2 0 0 00
506 Insurance expense 2 4 0 0 0 00 2 4 0 0 0 00 2 4 0 0 0 00
507 Office supplies expense 4 0 0 0 00 c) 1 5 0 0 00 2 5 0 0 00 2 5 0 0 00
508 Salaries expense 6 0 0 0 0 00 6 0 0 0 0 00 6 0 0 0 0 00
509 Freight-out 5 0 0 00 5 0 0 00 5 0 0 00
510 Pag-IBIG contributions -- -- -- -- -- --
511 SSS contributions -- -- -- -- -- --
512 PhilHealth contributions ( 2 0 0 00) ( 2 0 0 00) ( 2 0 0 00)
513 Utilities expense 2 0 0 0 00 a) 4 5 0 0 00 6 5 0 0 00 6 5 0 0 00
514 Licenses and fees expense 7 8 0 0 00 7 8 0 0 00 7 8 0 0 00
Totals ₱ 1 2 1 8 3 4 8 00 ₱ 1 2 1 8 3 4 8 00
Adjusments:
203 Utilities payable a) 4 5 0 0 00 4 5 0 0 00 4 5 0 0 00
515 Depreciation expense b) 2 8 5 0 0 00 2 8 5 0 0 00 2 8 5 0 0 00
104-a Accumulated depreciation-Delivery equipment b) 2 2 5 0 0 00 2 2 5 0 0 00 2 2 5 0 0 00
105-a Accumulated depreciation-Furniture and fixtures b) 6 0 0 0 00 6 0 0 0 00 6 0 0 0 00
106 Prepaid office supplies c) 1 5 0 0 00 1 5 0 0 00 1 5 0 0 00
107 Prepaid store supplies d) 1 8 0 0 00 1 8 0 0 00 1 8 0 0 00
516 Bad debts expense e) 4 1 5 0 00 4 1 5 0 00 4 1 5 0 00
103-a Allowance for doubtful accounts e) 4 1 5 0 00 4 1 5 0 00 4 1 5 0 00
Totals ₱ 4 0 4 5 0 00 ₱ 4 0 4 5 0 00 ₱ 1 2 5 5 4 9 8 00 ₱ 1 2 5 5 4 9 8 00 ₱ 5 3 5 9 9 0 00 ₱ 4 1 1 3 4 8 00 ₱ 7 1 9 5 0 8 00 ₱ 8 4 4 1 5 0 00
Net Loss 1 2 4 6 4 2 00 1 2 4 6 4 2 00
Totals ₱ 5 3 5 9 9 0 00 ₱ 5 3 5 9 9 0 00 ₱ 8 4 4 1 5 0 00 ₱ 8 4 4 1 5 0 00
 PRINCESS Merchandising
Adjusted Trial Balance
December 31, 2016
Account No. Account Title P/R Debit Credit

101 Cash ₱ 1 5 3 2 0 8 00
102 Accounts receivable 8 3 0 0 0 00
102-a Allowance for doubtful accounts ₱ 4 1 5 0 00
103 Merchandise inventory 1 8 0 0 0 0 00
104 Delivery equipment 2 2 5 0 0 0 00
104-a Accumulated depreciation-Delivery equipment 2 2 5 0 0 00
105 Furniture and fixtures 6 0 0 0 0 00
105-a Accumulated depreciation-Furniture and fixtures 6 0 0 0 00
106 Prepaid office supplies 1 5 0 0 00
107 Prepaid store supplies 1 8 0 0 00
201 Accounts payable 202 0 0 0 00
202 Tax payable 5 0 0 0 00
203 Utilities payable 4 5 0 0 00
301 Princess, capital 600 0 0 0 00
302 Princess, drawing 1 5 0 0 0 00
401 Sales 4 0 8 0 0 0 00
402 Sales returns and allowances 2 0 0 0 00
403 Sales discount 2 4 0 00
501 Purchases 3 7 5 8 0 0 00
502 Purchase returns and allowances 2 0 0 0 00
503 Purchase discount 1 3 4 8 00
504 Rent expense 18 00 0 00
505 Store supplies expense 6 20 0 00
506 Insurance expense 24 00 0 00
507 Office supplies expense 2 50 0 00
508 Salaries expense 60 00 0 00
509 Freight-out 50 0 00
510 Pag-IBIG contributions -- --
511 SSS contributions -- --
512 PhilHealth contributions ( 20 0 00)
513 Utilities expense 650 0 00
514 Licenses and fees expense 780 0 00
515 Depreciation expense 2850 0 00
516 Bad debts expense 415 0 00
Totals ₱ 12 5 5 4 9 8 00 ₱ 1 2 5 5 4 9 8 00
 PRINCESS Merchandising
Statement of Comprehensive Income
For the month ended December 31, 2016

Gross sales ₱ 408,000.00

Less: Sales returns and allowances ₱ 2,000.00
Sales discounts 240.00 ( 2,240.00 )
Net sales ₱ 405,760.00
Less: Cost of sales
Merchandise inventory, December 1 ₱ 180,000.00
Add: Net cost of purchases
Purchases ₱ 375,800.00
Less: Purchase returns and allowances ₱ 2,000.00
Purchase discounts 1,348.00 ( 3,348.00 ) 372,452.00
Goods available for sale ₱ 552,452.00
Less: Merchandise inventory, December 31 ( 260,000.00 )( 292,452.00 )
Gross income ₱ 113,308.00
Less: Selling and distribution expenses
Salaries expense ₱ 60,000.00
Depreciation expense 28,500.00
Insurance expense 24,000.00
Rent expense 18,000.00
Licenses and fees expense 7,800.00
Utilities expense 6,500.00
Store supplies expense 6,200.00
Bad debts expense 4,150.00
Freight-out 500.00 ( 155,650.00 )
Loss after selling and distribution (₱ 42,342.00 )
Less: Administrative expenses
Office supplies expense ₱ 2,500.00
Pag-IBIG contributions -----
SSS contributions -----
PhilHealth contributions ( 200.00 ) ( 2,300.00 )
Net loss (₱ 44,642.00 )
 PRINCESS Merchandising
Statement of Comprehensive Income
For the month ended December 31, 2016

Net sales (Note 1) ₱ 4 0 5 7 6 0 00

Less: Cost of sales (Note 2) ( 2 9 2 4 5 2 00)
Gross income ₱ 1 1 3 3 0 8 00
Less: Expenses:
Selling and distribution expenses (Note 3) ₱ 1 5 5 6 5 0 00
Administrative expenses (Note 4) 2 3 0 0 00 ( 1 5 7 9 5 0 00)
Net loss (₱ 4 4 6 4 2 00)

Note 1 - Net sales

Gross sales ₱ 4 0 8 0 0 0 00
Sales returns and allowances ₱ 2 0 0 0 00
Sales discounts 2 4 0 00 ( 2 2 4 0 00)
Total net sales ₱ 4 0 5 7 6 0 00

Note 2 - Cost of sales

Merchandise inventory, December 1 ₱ 1 8 0 0 0 0 00
Purchases 3 7 5 8 0 0 00
Purchase returns and allowances ₱ 2 0 0 0 00
Purchase discounts 1 3 4 8 00 ( 3 3 4 8 00)
Merchandise inventory, December 31 ( 2 6 0 0 0 0 00)
Total cost of sales ₱ 2 9 2 4 5 2 00

Note 3 - Selling and distribution expenses

Salaries expense ₱ 6 0 0 0 0 00
Depreciation expense 2 5 8 0 0 00
Insurance expense 2 0 4 0 0 00
Rent expense 1 0 8 0 0 00
Licenses and fees expense 8 7 0 0 00
Utilities expense 5 6 0 0 01
Store supplies expense 2 6 0 0 02
Bad debts expense 1 4 5 0 00
Freight-out 5 0 0 00
Total selling and distributions ₱ 1556 5 0 00

Note 4 - Administrative expenses

Office supplies expense ₱ 2 5 0 0 00
Pag-IBIG contributions -- --
SSS contributions -- --
PhilHealth contributions ( 2 0 0 00)
Total administrative expense ₱ 2 3 0 0 00
 PRINCESS Merchandising
Statement of Chages in Equity
For the month ended December 31, 2016

Princess, capital beginning ₱ 60 0 0 0 0 00

Less: Net loss ( 4 4 6 4 2 00)
₱ 55 5 3 5 8 00
Less: Princess, drawing ( 1 5 0 0 0 00)
Princess, capital ending ₱ 54 0 3 5 8 00
 PRINCESS Merchandising
Statement of Financial Position
December 31, 2016

Assets
Current Assets:
Cash ₱ 15320 8 00
Trade and other receivables (Note 1) 7885 0 00
Merchandise inventory 26000 0 00
Prepaid expenses (Note 2) 330 0 00
Total current assets ₱ 4 9 5 3 5 8 00

Non-current Assets:
Property, plant, and equipment (Note 3) 2 5 6 5 0 0 00
Total Assets ₱ 7 5 1 8 5 8 00

Liabilities and Owner's Equity

Current Liabilities:
Trade and other payables (Note 4) ₱ 2 0 6 5 0 0 00
Tax payable 5000 0
Total Liabilities ₱ 2 1 1 5 0 0 00

Owner's Equity:
Princess, capital 5 4 0 3 5 8 00
Total Liabilities and Owner's Equity ₱ 7 5 1 8 5 8 00

Note 1 - Trade and other receivables

Accounts receivable ₱ 8 3 0 0 0 00
Allowance for doubtful accounts ( 4 1 5 0 00 )
Total trade and other receivables ₱ 2 8 5 0 0 0 0 00

Note 2 - Prepaid expenses

Prepaid office supplies ₱ 1 5 0 0 00
Prepaid store supplies 1 8 0 0 00
Total prepaid expenses ₱ 3 3 0 0 00

Note 3 - Property, plant, and equipment

Delivery equipment ₱ 22500 0 00
Accumulated depreciation-Delivery equipment ( 2250 0 00 ) ₱ 2 0 2 5 0 0 00
Furniture and fixtures ₱ 6000 0 00
Accumulated depreciation-Furniture and fixtures ( 600 0 00 ) 5 4 0 0 0 00
Total property, plant, and equipment ₱ 2 5 6 5 0 0 00

Note 4 - Trade and other payables

Accounts payable ₱ 2 0 2 0 0 0 00
Utilities payable 4 5 0 0 00
Total trade and other payables ₱ 2 0 6 5 0 0 00
 PRINCESS Merchandising
Statement of Financial Position
December 31, 2016
Assets Liabilities and Owner's Equity
Current Assets: Current Liabilities:
Cash ₱ 153,208.00 Trade and other payables (Note 4) ₱ 2,880,000.00
Trade and other receivables (Note 2) 78,850.00 Tax payable 500,000.00
Merchandise inventory 260,000.00 Total Liabilities ₱ 211,500.00
Prepaid expenses (Note 3) 3,300.00
Total current assets ₱ 495,358.00 Owner's Equity:
Princess, capital 540,358.00
Non-current Assets: Total Liabilities and Owner's Equity ₱ 751,858.00
Property, plant, and equipment (Note 3) 256,500.00
Total Assets ₱ 751,858.00
Note 4 - Trade and other payables
Accounts payable ₱ 202,000.00
Note 1 - Trade and other receivables Utilities payable 4,500.00
Accounts receivable ₱ 83,000.00 Total trade and other payables ₱ 206,500.00
Allowance for doubtful accounts ( 4,150.00 )
Total trade and other receivables ₱ 78,850.00

Note 2 - Property, plant, and equipment

Delivery equipment ₱ 225,000.00
Accumulated depreciation-Delivery equipment ( 22,500.00 ) 202,500.00
Furniture and fixtures ₱ 60,000.00
Accumulated depreciation-Furniture and fixtures ( 6,000.00 ) 54,000.00
Total property, plant, and equipment ₱ 256,500.00

Note 3 - Prepaid expenses

Prepaid office supplies ₱ 1,500.00
Prepaid store supplies 1,800.00
Total prepaid expenses ₱ 3,300.00
 PRINCESS Merchandising
Statement of Cash Flows
For the month ended December 31, 2016

Cash flows from operating activities

Cash inflow
Cash received from customers ₱ 1 9 9 0 0 0 00
Collection from receivables 1 2 6 7 6 0 00
Cash outflow
Purchases ( 8 9 4 0 0 00 )
Payment of payables ( 8 3 0 5 2 00 )
Salaries expense ( 5 3 2 0 0 00 )
Insurance expense ( 2 4 0 0 0 00 )
Rent expense ( 1 8 0 0 0 00 )
Store supplies expense ( 8 0 0 0 00 )
Licenses and fees expense ( 7 8 0 0 00 )
Office supplies expense ( 4 0 0 0 00 )
Utilities expense ( 2 0 0 0 00 )
Sales returns and allowances ( 1 0 0 0 00 )
Philhealth contributions ( 6 0 0 00 )
Freight-out ( 5 0 0 00 )
Pag-IBIG contributions ( 5 0 0 00 )
SSS contributions ( 5 0 0 00 )
Net cash from operating activities ₱ 3 3 2 0 8 00
Cash flows from investing activities
Cash outflow
Purchase of delivery equipment ₱ 2 2 5 0 0 0 00
Purchase of furniture and fixtures 6 0 0 0 0 00
Net cash from investing activities ( 2 8 5 0 0 0 00
Cash flows from financing activities
Cash inflow
Investment by the owner ₱ 4 2 0 0 0 0 00
Cash outflow
Withdrawal by the owner ( 1 5 0 0 0 00 )
Net cash from financing activities 4 0 5 0 0 0 00
Net increase in cash ₱ 1 5 3 2 0 8 00
Cash balance, December 1 -- --
Cash balance, December 31 ₱ 1 5 3 2 0 8 00