FABM1 11 Quarter 4 Week 4 Las 1
FABM1 11 Quarter 4 Week 4 Las 1
FABM1 11 Quarter 4 Week 4 Las 1
Content
Journalizing
General Journal can be a “loose-leaf” or book bound” it simply refer as book of original entry.
(1) Date shows date of the transactions took place
Journal has the following (2) Particulars shows item or the account to be debited or credited
columns headings: (3) Folio shows the post reference of the transaction
(4) Debit indicate the peso amount debited
(5) Credit indicate the peso amount credited
Account Titles
Explanation Amount (Dr.) Amount (Cr.)
In step 1, transactions are identified and measured. At this point, the business’s paper work are examined
to discover it the transactions have a financial impact or effects. Financial transactions, as defined, are activities
that change the value of an asset, liability or equity overtime.
CHART OF ACCOUNTS – a list of account titles is developed ahead of time to assist the bookkeeper and
accountant in determining which titles should be used to describe the exchanges of values in a transaction.
Chart of Accounts
F Assets F Income
10 Cash in Bank 50 Sales
11 Accounts Receivable 51 Sales Discount
12 Allowance for Bad Debts 52 Sales Returns & Allowances
13 Merchandise Inventory
14 Supplies Inventory Costs
60 Purchases
Property and Equipment 61 Purchase Discount
20 Furniture and Fixtures 62 Purchase Returns & Allowances
21 Accumulated Depreciation Furniture & Fixtures 62 Freight-In
23 Transportation Equipment
Liability Expenses
33 Accounts Payable 70 Freight-out
34 Accrued Expenses 71 Salaries Expense
72 Utilities Expense
Owner’s Equity 73 Taxes and Licenses
45 ABZ, Capital 74 Supplies Expense
46 ABZ, Drawing 75 Rent Expense
47 Income & Expenses Summary 76 Uncollectible Accounts
77 Depreciation Expense
Jan.
1 – ABZ invested the following:
a) Deposited at bank, P850,000
b) Merchandise with net realizable value of 250,000
c) Transportation Equipment with fair market value of P1,800,000
2 - Purchased merchandise in cash from store A amounting P150,000 and paid freight and handling,
P2,500.
3 – Returned P3,000 cost of merchandise from store A due to some defects and no replacements have
been made.
5 – Sold merchandise for cash, P120,000 to TLP and gave a 3% trade discount and paid freight on shipment,
P3,500.
7 – Purchase merchandise on account from B, P50,000. Term: 3/10, N/30.
8 – Sold merchandise on account to C, P185,000. Term: 2/10, N/30. Paid freight on shipment, P1,200.
9 – Purchased merchandise on account from D costing P230,000. Term:2/10 EOM.
10 – Received P4,000 worth of merchandise from C for not conforming with the order and was not replaced.
12 – Paid the account with B, P48,500 after availing of the 3% purchase discount.
13 – Sold merchandise on account to E, P80,000. Term: 2/10, N/30.
15 – Purchased merchandise on account Y, P70,000. Term: 3/10, N/30.
18 – Returned P1,500 cost of merchandise to Y due to bad order and was not replaced.
- Collected in full the account of C, P177,380.
20 – Sold merchandise for cash, P50,000 to X and gave a 1% trade discount.
22 – Received P500 worth of merchandise from X as item breakage and was not replaced due to out of stock.
23 – Collected from E the amount of P78,400 net of 2% discount on Jan. 13 sales on account.
26 – Sold merchandise on account to Z, P420,000. Term: 3/10, EOM.
28 – Paid the following expenses.
Salaries for the month P15,000
Light & Water bill (Utilities 5,800
Taxes and Licenses 6,500
Rent Expenses 10,000
Total P37,300
30 – Withdrew P2,000 for personal use of ABZ.
31 – Sold merchandise on account to W, P35,000. Term; 2/10, N/30.
Journalizing - General Journal #1. Shown below is an example of journalizing business transactions.
20A Particulars Folio Debit Credit
Jan. 1 Cash in Bank 10 850,000
Merchandise Inventory 13 250,000
Transportation Equipment 23 1,800,000
A, Capital 45 2,900,000
Additional Investment
2 Purchases 60 150,000
Cash in Bank 10 15,000
Purchase of merchandise for cash
Freight-in 62 2,500
Cash in Bank 10 2,500
Payment of freight
Freight-out 70 3,500
Cash in Bank 10 3,500
Freight on merchandise sold
7 Purchases 60 50,000
Accounts Payable (B) 10 50,000
Sales of merchandise with a discount
Freight-out 70 1,200
Cash in Bank 10 1,200
Freight paid for shipment
20A Particulars Folio Debit Credit
9 Purchases 60 230,000
Accounts Payable (D) 33 230,000
Purchase of merchandise on account
15 Purchases 60 70,000
Accounts Payable (Y) 33 70,000
Purchased of merchandise on account
Activity- Instruction: A) Prepare a chart of account based on the transactions mentioned above. Kindly base
your answers on the examples provided in the journalizing transactions. 20points
Chart of Accounts
F Assets F Income
Liability Expenses
Owner’s Equity
B) Record all transaction in the General Journal based on the above transactions. 40 points Note: Provide
extra sheets if needed.