ACCOUNTS MERCHANDISE DELIVERY OFFICE FURNITURE

DATE PARTICULARS CASH ON HAND CASH IN BANK RECEIVABLE INVENTORY, JULY 31 SUPPLIES ON HAND VAT INPUT TAX RENTAL DEPOSIT EQUIPMENT EQUIPMENT AND FIXTURE
7/31/2017 OPENING BALANCE 57,600.00 432,750.00 95,300.00 359,600.00 16,500.00 2,500.00 40,000.00 250,000.00 65,600.00 45,780.00
PURCHASED MERCHANDISE ON ACCOUNT FROM CHRISTY'S
8/3/2017 WHOLE SALE OUTLET. 60,000.00
FREIGHT WAS PAID BY DJ TRADING (7,000.00)
RETURNED MERCHANDISE TO
8/4/2017 CHRISTY'S WHOLE SALE OUTLET (2,400.00)
PAID FOR THE LAST MONTH'S
WAGES AND COMMISSION.
THE CHECK WAS ISSUED TO
ROBERTO DE VERA
8/4/2017 (52,500.00)
8/5/2017 DEPOSITED CASH TO THE BANK (57,600.00) 57,600.00
8/6/2017 SOLD MERCHANDISE ON ACCOUNT TO DARYLL UMAPAS. 504,000.00
THE FREIGHT COST WAS PAID BY DJ TRADING (6,500.00)
MR. UMAPAS RETURNED MERCHANDISE
8/7/2017 DUE TO DEFECT
FULLY PAID UP THE ACCOUNT
8/7/2017 WITH AB ENTERPRISE (94,000.00)

PURCHASED MERCHANDISE ON ACCOUNT

FROM CHRISTY'S WHOLE SALE OUTLET.THE DELIVERY COST WAS
SHOULDERED BY CHRISTY'S WHOLESALE OUTLET
8/7/2017 48,000.00
SOLD MERCHANDISE IN CASH TO EQUATE COMPANY.
8/10/2017 DEPOSITED TO THE BANK 224,000.00
THE FREIGHT WAS PAID BY DJ TRADING (5,000.00)
COLLECTED THE A/R FROM DARRYL UMAPAS ISSUED
8/15/2017 A BIP CHECK NO. 654012. DEPOSITED TO THE BANK 430,000.00 (481,600.00)

PAID FOR THE SALARIES FOR AUG. 1-15. THE CHECK WAS ISSUED
TO ROBERTO DE VEYRA
8/15/2017 (40,000.00)
PAID FOR THE AUGUST RENTAL TO XY BLDG. COMPANY. AN INPUT
8/16/2017 VAT IS INCLUDED (20,000.00) 2,400.00
PAID THE MONTHLY AMORTIZATION OF LOANS TO PNB PLUS
8/16/2017 INTEREST. (21,000.00)
PURCHASED MERCHANDISE ON ACCOUNT FROM ZACK
MANUFACTURING.
8/20/2017 THE FREIGHT COST WAS PAID BY ZACK MANUFACTURING 42,000.00
8/21/2017 PAID GASOLINE EXPENSED TO SHELL GAS STATION . (30,464.00) 3,264.00
SOLD MERCHANDISE FOR CASH
8/25/2017 TO A LOYAL CUSTOMER. 168,000.00
THE FREIGHT WAS PAID BY DJ TRADING (1,000.00)
PAID IN FULL THE ACCOUNT DUE TO CHRISTY'S
WHOLESALE OUTLET FOR THE MERCHANDISE
8/25/2017 PURCHASED IN AUGUST 3. A DISCOUNT WAS GRANTED, (530,000.00)
PURCHASED MERCHANDISE IN CASH FROM TAN TRADING ON
ACCOUNT
8/26/2017 42,000.00
FREIGHT WAS SHOULDERED BY DJ TRADING (5,000.00)
8/29/2017 SOLD MERCHANDISE IN CASH TO DEF COMPANY. 896,000.00
8/30/2017 PAID THE ADVERTISING TO GAM NETWORK (26,880.00) 2,880.00
8/30/2017 THE OWNER WITHDRAWS CASH FOR PERSONAL USE. (30,000.00)
ADJUSTMENTS
DEPRECIATION FOR THE MONTH OF AUG.
SUPPLIES (10,350.00)
ACCRUED EXPENSES: TAX
SALARIES
COMMISSION
TELEPHONE

287,156.00 1,051,850.00 117,700.00 359,600.00 6,150.00 200,644.00 40,000.00 250,000.00 65,600.00 45,780.00
 VAT WAGES PURCHASE
ACCUM. DEPN. ACCOUNTS PAYABLE PAYABLE UTILITY PAYABLE PAYABLE COMMISSION PAYABLE TAX PAYABLE LOANS PAYABLE DE VERA,CAPITAL DE VERA, DRAWING SALES SALES DISCOUNT SALES RETURN PURCHASES DISCOUNT
(36,180.00) (124,500.00) (10,650.00) (40,000.00) (12,500.00) (100,000.00) (1,041,800.00)

(560,000.00) 500,000.00

22,400.00

40,000.00 12,500.00

(54,000.00) (450,000.00)

(22,400.00) 2,400.00 20,000.00

94,000.00

(448,000.00) 400,000.00

(24,000.00) (200,000.00)

51,600.00

20,000.00

(392,000.00) 350,000.00

(18,000.00) (165,000.00) 15,000.00

560,000.00 (30,000.00)

(392,000.00) 350,000.00

(96,000.00) (800,000.00)

30,000.00

(36,180.00)

(10,270.00)
(40,000.00)
(15,700.00)
(5,755.00)

(72,360.00) (1,262,500.00) (148,650.00) (5,755.00) (40,000.00) (15,700.00) (10,270.00) (80,000.00) (1,041,800.00) 30,000.00 (1,615,000.00) 15,000.00 20,000.00 1,600,000.00 (30,000.00)
 INTEREST DEPRECIATION SUPPLIES ADVERTISING GASOLINE TAX COMMISSION
PURCHASE RETURN FREIGHT IN FREIGHT OUT EXPENSE EXPENSE EXPENSE EXPENSE EXPENSE UTILITY EXPENSE EXPENSE RENT EXPENSE WAGES EXPENSE EXPENSE
-

-
7,000.00 -

(20,000.00) -

-
-
-
6,500.00 -

-
5,000.00 -

40,000.00 -

17,600.00 -

1,000.00 -

-
27,200.00 -

-
1,000.00 -

-
5,000.00 -
-
24,000.00 -
-

36,180.00 -
10,350.00 -
10,270.00 -
40,000.00 -
15,700.00 -
5,755.00 -

(20,000.00) 12,000.00 12,500.00 1,000.00 36,180.00 10,350.00 24,000.00 27,200.00 5,755.00 10,270.00 17,600.00 80,000.00 15,700.00 -
 DJ TRADING & MERCHANDISING CO.
TRIAL BALANCE
August 31, 2017

DEBIT CREDIT
CASH ON HAND 287,156.00
CASH IN BANK 1,051,850.00
ACCOUNTS RECEIVABLE
MERCHANDISE 117,700.00
INVENTORY, JULY 31 359,600.00
SUPPLIES ON HAND 16,500.00
VAT INPUT TAX 200,644.00
RENTAL DEPOSITS 40,000.00
DELIVERY
FURNITUREEQUIPMENT 250,000.00
AND FIXTURE 45,780.00
OFFICE EQUIPMENT 65,600.00
ACCUM. DEPN. 36,180.00
ACCOUNTS PAYABLE 1,262,500.00
VAT PAYABLE 148,650.00
WAGES PAYABLE -
LOANS PAYABLE 80,000.00
DE VERA,CAPITAL 1,041,800.00
DE VERA, DRAWING 30,000.00
SERVICE REVENUE 1,615,000.00
SALES DISCOUNT 15,000.00
SALES RETURN 20,000.00
PURCHASES 1,600,000.00
PURCHASE DISCOUNT 30,000.00
PURCHASE RETURN 20,000.00
FREIGHT IN 12,000.00
FREIGHT OUT 12,500.00
ADVERTISING EXPENSE 24,000.00
GASOLINE EXPENSE 27,200.00
INTEREST EXPENSE 1,000.00
RENT EXPENSE 17,600.00
WAGES EXPENSE 40,000.00

4,234,130.00 4,234,130.00
 DJ TRADING & MERCHANDISING CO.
STATEMENT OF COST OF SALES
FOR THE MONTH ENDED AUGUST 31, 2017

MERCHANDISE INVENTORY, BEG. 359,600.00

PURCHASES 1,600,000.00
FREIGHT IN 12,000.00
TOTAL PURCHASES 1,971,600.00

LESS: PURCHASE RETURNS 20,000.00

PURCHASE DISCOUNTS 30,000.00

TOTAL GOODS AVAILABLE

FOR SALE 1,921,600.00
MERCHANDISE INVENTORY, END 950,400.00
COST OF SALES 971,200.00
 DJ TRADING & MERCHANDISING CO.
STATEMENT OF INCOME
FOR THE MONTH ENDED AUGUST 31,2017

GROSS SALES 1,615,000.00

SALES RETURNS 20,000.00
SALES DISCOUNTS 15,000.00
NET SALES 1,580,000.00
COST OF SALES 971,200.00
GROSS PROFIT 608,800.00
EXPENSES:
FREIGHT OUT 12,500.00

ADVERTISING
EXPENSE 24,000.00
COMMISSION EXPENSE 15,700.00
DEPRECIATION
EXPENSE 36,180.00
GASOLINE EXPENSE 27,200.00
INTEREST EXPENSE 1,000.00
RENT EXPENSE 17,600.00
SUPPLIES
TAX EXPENSE 10,350.00
EXPENSE 10,270.00
UTILITY EXPENSE 5,755.00
WAGES EXPENSE 80,000.00 240,555.00
NET INCOME 368,245.00
 DJ TRADING & MERCHANDISING CO.
STATEMENT OF CHANGES IN EQUITY
FOR THE MONTH ENDED AUGUST 31,2017

DE VERA, CAPITAL 07/31/17 1,041,800.00

NET INCOME 368,245.00
DRAWING (30,000.00) 338,245.00
DE VERA, CAPITAL 08/31/17 1,380,045.00
 DJ TRADING & MERCHANDISING CO.
STATEMENT OF FINANCIAL POSITION
FOR THE MONTH ENDED AUGUST 31, 2017

ASSETS
CURRENTS ASSETS
CASH ON HAND 287,156.00
CASH ON BANK 1,051,850.00
ACCOUNTS RECEIVABLE 117,700.00
MERCHANDISE INVENTORY, END 950,400.00
SUPPLIES ON HAND 6,150.00
INPUT VAT 200,644.00
TOTAL CURRENT ASSETS 2,613,900.00
NON-CURRENT ASSETS
RENTAL DEPOSITS 40,000.00
DELIVERY EQUIPMENT 250,000.00
OFFICE EQUIPMENT
FURNITURE 65,600.00
AND FIXTURE 45,780.00
ACCUM. DEPN. 72,360.00
TOTAL NON- CURRENT ASSETS 329,020.00
TOTAL ASSETS 2,942,920.00

LIABILITIES AND EQUITY

CURRENT LIABILITIES
ACCOUNTS PAYABLE 1,262,500.00
VAT PAYABLE 148,650.00
UTILITY PAYABLE 5,755.00
WAGES PAYABLE 40,000.00
COMMISSION PAYABLE 15,700.00
TAX PAYABLE 10,270.00
LOANS PAYABLE 80,000.00
TOTAL LIABILITIES 1,562,875.00

DE VERA, CAPITAL 1,380,045.00

TOTAL LIABILITIES AND EQUITY 2,942,920.00
CLOSING ENTRIES
DEBIT CREDIT

A.) To close revenue and expenses to income summary

SALES 1,615,000.00
PURCHASE RETURNS 20,000.00
PURCHASE DISCOUNTS 30,000.00
SALES RETURNS 20,000.00
SALES DISCOUNT 15,000.00
PURCHASES 1,600,000.00
FREIGHT IN 12,000.00
FREIGHT OUT 12,500.00
ADVERTISING EXPENSE 24,000.00
COMMISSION EXPENSE 15,700.00
DEPRECIATION EXPENSE 36,180.00
GASOLINE EXPENSE 27,200.00
INTEREST EXPENSE 1,000.00
RENT EXPENSE 17,600.00
SUPPLIES
TAX EXPENSE 10,350.00
EXPENSE 10,270.00
UTILITY EXPENSE 5,755.00
WAGES EXPENSE 80,000.00
INCOME SUMMARY 222,555.00

B.) To close beg. inventory to income summary account

INCOME SUMMARY 359,600.00
MERCHANDISE INVENTORY, BEG. 359,600.00

C.) To close ending inventory to income summary account

MERCHANDISE INVENTORY,
ENDING 950,400.00
INCOME SUMMARY 950,400.00

D.) To close income summary account to capital account

INCOME SUMMARY 368,245.00
DE VERA, CAPITAL 368,245.00

E.) To close drawing account to capital account

DE VERA, CAPITAL 30,000.00
DE VERA, DRAWINGS 30,000.00
 DJ TRADING & MERCHANDISING CO.
FINANCIAL RATIOS AND ANALYSIS

BALANCE SHEET RATIOS: LIQUIDITY RATIOS

1 Current
Current Assets PhP 2,613,900.00 1.6724946013 1.67:1
Current Liabilities PhP 1,562,875.00
2 Quick
Cash + Accts. Rec. PhP 1,456,706.00 0.9320681436 0.93:1
Current Liabilities PhP 1,562,875.00
3 Cash
Cash PhP 1,339,006.00 0.856758218 0.86:1
Current Liabilities PhP 1,562,875.00
SOLVENCY RATIOS
4 Debt
Total Liabilities PhP 1,562,875.00 0.531062686 53%
Total Assets PhP 2,942,920.00
5 Equity
Total Equity PhP 1,380,045.00 0.468937314 47%
Total Assets PhP 2,942,920.00
6 Debt to Equity
Total Liabilities PhP 1,562,875.00 1.1324811872 1.13:1
Total Equity PhP 1,380,045.00
7 Times Interest Earned
EBIT PhP 356,975.00 356.975 357 times
Interest Expense PhP 1,000.00
INCOME STATEMENT RATIOS
8 Gross Margin
Gross Profit PhP 608,800.00 0.3853164557 39%
Sales PhP 1,580,000.00
9 Net Margin
Net Profit PhP 368,245.00
0.2330664557 23%
Sales PhP 1,580,000.00
ASSET MANAGEMENT RATIOS : Overall Efficiency Ratios
10 Return on Assets
Net Profit PhP 368,245.00 0.1723844143 17%
Ave. Total Assets PhP 2,136,185.00
11 Return on Equity
Net Profit PhP 368,245.00
0.3041028637 30%
Ave. Total Equity PhP 1,210,922.50
ASSET MANAGEMENT RATIOS: Working Capital Cycle Ratios
12 Inventory Turnover
Cost of Goods Sold 971,200.00 1.4827480916 1.48 times
Inventory 655,000.00
13 Average Inventory Period
360 360 242.7924217463 242.79 days
Inventory Turnover 1.48
14 Accounts Receivable Turnover
Sales 1,580,000.00 14.8356807512 14.84 times
Accounts Receivable 106,500.00
15 Average Collection Period
360 360 24.2658227848 26.27 days
Accts. Rec. Turnover 14.84
16 Accounts Payable Turnover
Purchases 1,562,000.00 2.2523431867 2.25 times
Accounts Payable 693,500.00
17 Average Payment Period
360 360
159.833546735 159.83 days
Accts. Pay. Turnover 2.25

18 Operating Cycle
Ave. Inventory Period +Ave. Collection Period 269.06 days
19 Cash Conversion Cycle
Operating Cycle - Average Payment Period 109.23 days