General Journal – Page 1

Date
Jun-21 Account Titles Ref Debit Credit
1 Cash 110 70,000
Merchandise Inventory 130 30,000
Jordan, Capital 310 100,000
To record initial investment.
2 Equipment 170 10,000
Cash 110 10,000
To record purchase of computer.
2 Purchases 510 20,000
Accounts Payable 210 20,000
To record purchased merchandise on account.
3 Supplies 140 750
Cash 110 750
To record purchase of office supplies.
4 Accounts Receivable 120 35,000
Sales 410 35,000
To record sold merchandise on account.
5 Freight Out 560 600
Cash 110 600
To record payment freight charges.
6 Accounts Payable 210 1,000
Purchase Returns and Allowances 520 1,000
To record returned merchandise on account.
11 Accounts Payable 210 19,000
Purchase Discounts 530 380
Cash 110 18,620
To record payment of account.
13 Cash 110 34,300
Sales Discounts 430 700
Accounts Receivable 120 35,000
To record collection of account.
14 Purchases 510 16,400
Cash 110 16,400
To record purchased merchandise.
15 Salaries 580 2,500
Cash 110 2,500
To record payment of salaries.
16 Cash 110 12,500
Notes Payable 220 12,500
 To record bank borrowing.
17 Cash 110 900
Purchase Returns and Allowances 520 900
To record returned merchandise.
18 Purchases 510 14,500
Accounts Payable 210 14,500
To record purchased merchandise on account.
20 Freight In 540 700
Cash 110 700
To record freight charges.
23 Cash 110 20,500
Sales 410 20,500
To record sold merchandise.
26 Purchases 510 12,500
Cash 110 12,500
To record purchased merchandise.
29 Sales Returns and Allowances 420 900
Cash 110 900
To record refund to customers.
30 Accounts Receivable 120 15,000
Sales 410 15,000
To record sold merchandise on account.
30 Advertising 550 1,000
Utilities 590 500
Rent Expense 570 3,500
Salaries 580 2,500
Cash 110 7,500
To record payment of expenses.

General Ledger

Account Name: Cash Account Number: 110

Date Balances
2021 June Particulars Ref Debit Credit Debit Credit
1 Initial investment GJ1 70,000 70,000
2 Purchase of computer GJ1 10,000 60,000
3 Purchase of office supplies 750 59,250
5 Payment of freight charges 600 58,650
11 Payment of account 18,620 40,030
13 Collection of account 34,300 74,330
14 Purchased merchandise 16,400 57,930
 15 Payment of salaries 2,500 55,430
16 Bank borrowing 12,500 67,930
17 Returned merchandise 900 68,830
20 Payment of freight charges 700 68,130
23 Sold merchandise 20,500 88,630
26 Purchased merchandise 12,500 76,130
29 Refund to customers 900 75,230
30 Payment of expenses 7500 67,730

Account Name: Accounts Receivable Account Number: 120

Date Balances
2021 June Particulars Ref Debit Credit Debit Credit
4 Sold merchandise on account GJ1 35,000 35,000
13 Collection of account GJ1 35,000 0
30 Sold merchandise on account GJ1 15,000 15,000

Account Name: Merchandise Inventory Account Number: 130

Date Balances
2021 June Particulars Ref Debit Credit Debit Credit
1 Initial investment GJ1 30,000 30,000
30 Remove beginning balance GJ2 30,000
30 Set up ending balance GJ2 25,400 25,400

Account Name: Supplies Account Number: 140

Date Balances
2021 June Particulars Ref Debit Credit Debit Credit
3 Purchase of office supplies GJ1 750 750

Account Name: Equipment Account Number: 170

Date Balances
2021 June Particulars Ref Debit Credit Debit Credit
2 Purchase of computer GJ1 10,000 10,000

Account Name: Accounts Payable Account Number: 210

Date Particulars Ref Balances
2021 June Debit Credit Debit Credit
2 Purchased merchandise on account GJ1 20,000 20,000
6 Returned merchandise on account GJ1 1,000 19,000
11 Payment of account GJ1 19,000 0
18 Purchased merchandise on account GJ1 14,500 14,500

Account Name: Notes Payable Account Number: 220

Date Balances
2021 June Particulars Ref Debit Credit Debit Credit
16 Bank borrowing GJ1 12,500 12,500

Account Name: Jordan, Capital Account Number: 310

Date Balances
2021 June Particulars Ref Debit Credit Debit Credit
1 Initial investment GJ1 100,000 100,000
30 To close income summary to capital GJ2 8,120 91,880

Account Name: Jordan, Drawings Account Number: 320

Date Balances
2021 June Particulars Ref Debit Credit Debit Credit

Account Name: Sales Account Number: 410

Date Balances
2021 June Particulars Ref Debit Credit Debit Credit
4 Sold merchandise on account GJ1 35,000 35,000
23 Sold merchandise GJ1 20,500 55,500
30 Sold merchandise on account GJ1 15,000 70,500
30 Closing GJ2 70,500 0

Account Name: Sales Returns and Allowances Account Number: 420

Date Balances
2021 June Particulars Ref Debit Credit Debit Credit
29 Refund to customers GJ1 900 900
30 Closing GJ2 900 0
Account Name: Sales Discount Account Number: 430
Date Balances
2021 June Particulars Ref Debit Credit Debit Credit
13 Collection of account GJ1 700 700
30 Closing GJ2 700 0

Account Name: Purchases Account Number: 510

Date Balances
2021 June Particulars Ref Debit Credit Debit Credit
2 Purchased merchandise on account GJ1 20,000 20,000
14 Purchased merchandise GJ1 16,400 36,400
18 Purchased merchandise on account GJ1 14,500 50,900
26 Purchased merchandise GJ1 12,500 63,400
30 Closing GJ2 63,400 0

Account Name: Purchase Returns and Allowances Account Number: 520

Date Balances
2021 June Particulars Ref Debit Credit Debit Credit
6 Returned merchandise on account GJ1 1,000 1,000
17 Returned merchandise GJ1 900 1,900
30 Closing GJ2 1,900 0

Account Name: Purchase Discounts Account Number: 530

Date Balances
2021 June Particulars Ref Debit Credit Debit Credit
GJ
11 Payment of account 1 380 380
GJ
30 Closing 2 380 0

Account Name: Freight In Account Number: 540

Date Balances
2021 June Particulars Ref Debit Credit Debit Credit
GJ
20 Payment of freight charges 1 700 700
GJ
30 Closing 2 700 0

Account Name: Advertising Account Number: 550

Date Balances
2021 June Particulars Ref Debit Credit Debit Credit
30 Payment of advertising GJ1 1,000 1,000
30 Closing GJ2 1,000 0

Account Name: Freight Out Account Number: 560

Date Balances
2021 June Particulars Ref Debit Credit Debit Credit
5 Payment of freight charges GJ1 600 600
30 Closing GJ2 600 0

Account Name: Rent Expense Account Number: 570

Date Balances
2021 June Particulars Ref Debit Credit Debit Credit
30 Payment of rent GJ1 3,500 3,500
30 Closing GJ2 3,500 0

Account Name: Salaries Account Number: 580

Date Balances
2021 June Particulars Ref Debit Credit Debit Credit
15 Payment of salaries GJ1 2,500 2,500
30 Payment of salaries GJ1 2,500 5,000
30 Closing GJ2 5,000 0

Account Name: Utilities Account Number: 590

Date Balances
2021 June Particulars Ref Debit Credit Debit Credit
30 Payment of utilities GJ1 500 500
30 Closing GJ2 500 0

Account Name: Income Summary Account Number: 600

Date Balances
2021 June Particulars Ref Debit Credit Debit Credit
GJ
30 To close revenue account 2 70,500 70,500
To close accounts with debit GJ
30 balances 2 12,900 57,600
30 To close purchases account and GJ 93,400 35,800
 remove beginning merchandise
inventory 2
To close purchase accounts and set GJ
30 up ending merchandising inventory 2 27,680 8,120
GJ
30 To close income summary to capital 2 8120 0

Fantastic Merchandising
Trial Balance
June 30, 2021
Accounts Ref Debit Credit
Cash 110 P67,730
Accounts Receivable 120 15,000
Merchandise Inventory 130 30,000
Supplies 140 750
Equipment 170 10,000
Accounts Payable 210 14,500
Notes Payable 220 12,500
Jordan, Capital 310 100,000
Jordan, Drawings 320
Sales 410 70,500
Sales Returns and Allowances 420 900
Sales Discounts 430 700
Purchases 510 63,400
Purchase Returns and Allowances 520 1,900
Purchase Discounts 530 380
Freight In 540 700
Advertising 550 1,000
Freight Out 560 600
Rent Expense 570 3,500
Salaries 580 5,000
Utilities 590 500
TOTAL P199,780 P199,780

Financial Statements

Fantastic Merchandising
Statement of Cost of Goods Sold
For the month ended June 30, 2021
Merchandise Inventory, June 1 P30,000
Add: Net Purchases
Purchases 63,400
Purchase Returns and Allowances (1,900)
Purchase Discounts (380)
Freight In 700 61,820
Total Goods Available for Sale 91,820
Less: Ending Inventory 25,400

COST OF GOODS SOLD P66,420

Fantastic Merchandising
Statement of Financial Performance
For the month ended June 30, 2021
Sales P70,500
Less: Sales Returns and Allowances 900
Sales Discounts 700 1600
Net Sales 68,900
Less: Cost of Goods Sold 66,420

GROSS PROFIT 2480

Less: Expenses
Advertising 1,000
Freight Out 600
Rent Expense 3,500
Salaries 5,000
Utilities 500 10,600

NET INCOME (8,120)

Fantastic Merchandising
Statement of Changes in Equity
For the month ended June 30, 2021
Jordan, Capital beginning, June 1, 2021 P100,000
Add: Net Income (8,120)
Total 91,880
Less: Withdrawals 0

Jordan, Capital ending, June 30, 2021 P91,880

Fantastic Merchandising
Statement of Financial Position
For the month ended June 30, 2021
ASSETS
Current Assets:
Cash P67,730
Accounts Receivable 15,000
Merchandise Inventory 25,400
Supplies 750
Total Current Assets 108,880
Non-Current Assets:
Equipment 10,000
Total Non-Current Assets 10,000
 TOTAL ASSETS P118,880
LIABILITIES AND OWNER’S EQUITY
Current Liabilities:
Accounts Payable 14,500
Total Current Liabilities 14,500
Non-Current Liabilities:
Notes Payable 12,500
Total Non-Current Liabilities 12,500
TOTAL LIABILITIES P27,000
OWNER’S EQUITY
Jordan, Capital 91,880
TOTAL LIABILITIES AND OWNER’S P118,880
EQUITY

Fantastic Merchandising
Statement of Cash Flows
For the month ended June 30, 2021
Cash Flow from Operating Activities:
Cash receipts from:
Cash received from customers 20,500
Cash collection 34,300
Refund from Suppliers 900 55,700
Cash disbursements for:
Supplies (750)
Merchandise Inventory (47520)
Operating Expenses (10,000)
Freight In (700)
Freight Out (600)
Refunds to customers (900) (60,470)
Net Cash from Operating Activities (4770)
Cash Flow from Investing Activities:
Cash disbursements for:
Equipment (10,000)
Net Cash from Investing Activities (10,000)
Cash Flow from Financing Activities:
Cash inflow from:
Initial Investments 70,000
Bank Borrowing 12,500
Net Cash from Financing Activities 82,500
Net Increase (Decrease) in Cash 67,730
Add: Cash beginning 0
Cash Balance, December 31, 2021 P67,730

Post-Closing Entries
General Journal
Date Account Titles Ref Debit Credit
2021
June 30 Sales 410 70,500
Income Summary 600 70,500
To close revenue account.
30 Income Summary 600 12,900
Sales Returns and Allowances 420 900
Sales Discounts 430 700
Freight In 700
Advertising 550 1,000
Freight-Out 560 600
Rent Expense 570 3,500
Salaries 580 5,000
Utilities 590 500
To close accounts with debit balances.
30 Income Summary 600 93,400
Purchases 510 63,400
Merchandise Inventory (beginning) 130 30,000
To close purchases account and
remove beginning merchandise
inventory.
30 Purchase Returns and Allowances 520 1,900
Purchase Discounts 530 380
Merchandise Inventory (ending) 130 25,400
Income Summary 600 27,680
To close purchase accounts and set up
ending merchandise inventory
30 Jordan, Capital 310 8,120
Income Summary 600 8,120
To close income summary to capital.

Fantastic Merchandising
Closing Trial Balance
June 30, 2021
Ref Accounts Debit Credit
110 Cash P67,730
120 Accounts Receivable 15,000
130 Merchandise Inventory 25,400
140 Supplies 750
170 Equipment 10,000
210 Accounts Payable 14,500
220 Notes Payable 12,500
310 Jordan, Capital 91,880
TOTAL P118,880 P118,880