INSTITUTIONAL ASSESSMENT IN BOOKKEEPING NCIII

Trainee: ________________________________________ Score:

Schedule: ______________________________________ Date:

The following transactions occurred on December 2013 for Manzano Merchandising:

Dec. 1 Invested cash and equipment for, P980,000 and P780,000, respectively.
2 Paid registration expenses to the city of San Pedro, P90,000.
4 Acquired inventory 7,000 units at a cost of P45 each
7 Sold 150 units to customer Lina at a selling price of P70 each for cash
8 Acquired 900 inventory on account, Credit terms: 15/2, 7/5, n/10.
9 Purchase of computer, P12,000
10 Paid freight for the delivery of the supplier, P1,570.
11 Sold 300 units to customer Jacob on account. Credit terms: 10/10, n/15
15 Paid delivery expense to customer, P890.
16 Paid salaries of employees, P900.
21 Paid all purchased inventory on July 8
22 Paid utilities expense, P8,970.
23 Paid advertising expense, P4,500.
25 Collected 40% of the receivable from Jacob.
26 Bought P3,000 fuels, oils and lubricants.
28 Issue note to a bank, P100,000.
29 Manzano withdrew P5,000.
30 Bought supplies on account, P1,250

Required:

1. Prepare journal entries using perpetual inventory system.

2. Post all journal entries in each general ledger.
3. Prepare the Trial balance
4. Prepare the following financial statements as July 15, 2018:
a. Balance Sheet
b. Income statement
c. Statement of cash flows
d. Statement of Equity
5. Prepare closing entries
6. Prepare Post – closing trial balance
 CHART OF ACCOUNTS

101 CASH 301 MANZANO, CAPITAL

102 ACCOUNTS RECEIVABLE 302 MANZANO, DRAWING

103 MERCHANDISE INVENTORY 401 SALES
104 SUPPLIES 402 SALES DISCOUNT
105 EQUIPMENT 501 COST OF SALES
201 ACCOUNTS PAYABLE 502 TRANSPORTATION OUT
202 NOTES PAYABLE 503 SALARIES EXPENSE
504 UTILITIES EXPENSE
505 TAXES AND LICENSES
506 ADVERTISING EXPENSE
507 OILS, LUBRICANTS AND FUELS
601 INCOME AND EXPENSE
SUMMARY

Prepared by:

CARY P. JAUCIAN, MBA

Trainer
GENERAL JOURNAL SHEET
WITH EXPLANATION

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DATE DESCRIPTIONS REF DEBIT CREDIT

GENERAL JOURNAL SHEET
WITH EXPLANATION

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DATE DESCRIPTIONS REF DEBIT CREDIT

GENERAL JOURNAL SHEET
WITH EXPLANATION

PAGE: GJ – 3

DATE DESCRIPTIONS REF DEBIT CREDIT

GENERAL JOURNAL SHEET
WITH EXPLANATION

PAGE: GJ – 4

DATE DESCRIPTIONS REF DEBIT CREDIT

GENERAL JOURNAL SHEET
WITH EXPLANATION

PAGE: GJ – 5

DATE DESCRIPTIONS REF DEBIT CREDIT

ACCOUNT ACCOUNT TITLE:
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DATE DESCRIPTION REF DEBIT CREDIT BALANCE

DEBIT CREDIT

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DEBIT CREDIT

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DATE DESCRIPTION REF DEBIT CREDIT BALANCE
 DEBIT CREDIT

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DEBIT CREDIT

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DEBIT CREDIT

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DEBIT CREDIT
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ACCOUNT ACCOUNT TITLE:
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DEBIT CREDIT

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DEBIT CREDIT

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DEBIT CREDIT
MANZANO MERCHANDISING
TRIAL BALANCE
DECEMBER 31, 2013

ACCOUNT ACCOUNT TITLES DEBIT CREDIT

NO.
101
102
103
104
105
201
202
301
302
401
402
501
502
503
504
505
506
507
TOTAL BALANCE
 MANZANO MERCHANDISING
INCOME STATEMENT
DECEMBER 31, 2013

SALES
LESS: SALES DISCOUNTS
NET SALES
LESS: COST OF SALES
GROSS PROFIT
OPERATING EXPENSES
TRANSPORTATION OUT
SALARIES EXPENSE
UTILITIES EXPENSE
TAXES AND LICENSES
ADVERTISING EXPENSE
OILS, LUBRICANTS AND FUELS
TOTAL OPERATING EXPENSE
NET INCOME (LOSS)
 MANZANO MERCHANDISING
STATEMENT OF EQUITY
DECEMBER 31, 2013

MANZANO, CAPITAL – BEGINNING

ADD: INVESTMENTS
NET INCOME
LESS: MANZANO, DRAWING
NET LOSS
MANZANO, CAPITAL – ENDING
 MANZANO MERCHANDISING
BALANCE SHEET
DECEMBER 31, 2013

ASSETS
CASH
ACCOUNTS RECEIVABLE
MERCHANDISE INVENTOY
SUPPLIES
EQUIPMENT
TOTAL ASSETS

LIABILITIES
ACCOUNTS PAYABLE
NOTES PAYABLE
TOTAL LIABILITIES

OWNER’S EQUITY
MANZANO, CAPITAL

TOTAL LIABILITIES AND OWNER’S EQUITY

 MANZANO MERCHANDISING
STATEMENT OF CASH FLOWS
DECEMBER 31, 2013

CASH FLOW FROM OPERATION

COLLECTIONS FROM CUSTOMERS
PAYMENT OF MERCHANDISE
PAYMENT OF REGISTRATION
PAYMENT OF SALARIES
PAYMENT OF ADVERTISING
PAYMENT OF UTILITIES
PAYMENT OF OILS, LUBRICANTS AND
FUELS
PAYMENT OF TRANSPORTATION OUT
NET CASH FLOW FROM OPERATION

CASH FLOW FROM INVESTING

PURCHASE OF EQUIPMENT
NET CASH FLOW FROM INVESTING

CASH FLOW FROM FINANCING

CASH RECEIPTS FROM INVESTMENTS
CASH RECEIPTS FROM BANK LOAN
CASH WITHDRAWAL OF THE PROPRIETOR
NET CASH FLOW FROM FINANCING

NET INCREASES (DECREASES) IN CASH

ADD: BEGINNING BALANCE OF CASH
ENDING CASH BALANCE
GENERAL JOURNAL SHEET – CLOSING ENTRIES
WITH EXPLANATION

PAGE: GJ – 6

DATE DESCRIPTIONS REF DEBIT CREDIT

GENERAL JOURNAL SHEET – CLOSING ENTRIES
WITH EXPLANATION

PAGE: GJ – 7

DATE DESCRIPTIONS REF DEBIT CREDIT

MANZANO MERCHANDISING

POST CLOSING -TRIAL BALANCE

DECEMBER 31, 2013

ACCOUNT ACCOUNT TITLES DEBIT CREDIT

NO.
101

102

103

104

105

201

202

301

TOTAL BALANCE