COLUMBAN COLLEGE, INC

CENTER FOR LIFELONG LEARNING AND SKILLS DEVELOPMENT

#1 1ST Street New Asinan, Olongapo City
047-222-3329, local 113 (CBA Office)

Below are the transaction of Cassy Company. For the first month of operation, the following transactions
occurred.

Jan 1 Invested cash P 350,000 into the business to buy and sell various merchandise. She
also invested land and building worth P100,000 and 150,000 respectively into the business
3 Bought merchandise for cash , P50,000. Freigth charges was also paid P 50.
4 Bought office supplies P1,000 for cash.
5 Sold for cash P 105,000;
6 Returned defective merchandise P5,000 and received a refund .
10 Sold on account, P80,000 to customers with credit terms: 3/10, n/40 FOB Destination.
10 Paid the freight charges on transaction made on Jan 4, P40.
12 Made additional purchases P85,000, 3/15, n/30 FOB Shipping point
14 Borrowed from the bank P 250,000 and issued a 5-year promissory note.
15 Purchased office tables and chairs for cash, P9,500.
16 Refunded P500 to customers.
17 Sold merchandise for P 45,000. FOB Destination. Freight charges P150 to be paid later
20 Collected half from customers on account on Jan10. Discount was allowed
25 Purchased merchandise on account, P 42,000 terms 2/10, n/30 FOB Shipping Point
26 Paid half of the purchases on Jan 12. Discount was allowed.
27 Owner got P 10,500 from the business.
28 Paid the following: Salaries = 1,500; Rent – P 1,000; Utilities- P1,200, Advertising – P300
31 Merchandise inventory at the end amounts to P 55,000.

INSRUCTIONS:
1. PERFORM THE ACCOUNTING CYCLE USING PERIODIC INVENTORY SYSTEM.
2. USE THE FOLLOWING ACCOUNT TITLES FOR JOURNAL ENTRIES AND FINANCIAL STATEMENTS
Use this account titles for your Journal Entries
Acct code Account titles Acct code Account titles
101 Cash 401 Sales
103 Accounts Receivable 402 Sales Returns and Allowances
104 Merchandise Inventory 403 Sales Discount
105 Supplies 501 Purchases
110 Land 502 Purchase Returns and Allowances
120 Building 503 Purchase Discount
130 Furniture and Fixtures 504 Freight In
201 Accounts Payable 505 Salaries
202 Notes Payable 506 Rent Expense
301 Cassy, Capital 507 Freight Out
302 Cassy, Drawing 508 Utilities
304 Income Summary 509 Advertising

Use this account titles in doing your Financial Statements

Acct code Account titles Acct code Account titles
ASSETS REVENUE
101 Cash and cash equivalent 401
103 Receivable 402 NET SALES
104 Inventory 403
105 Prepaid Expenses
110 Property Plant and Equipment EXPENSES
501
LIABILITIES 502
COST OF GOODS SOLD
201 Accounts Payable 503
202 Notes Payable 504
505 Salaries
OWNER'S EQUITY 506 Rent Expense
301 Cassy, Capital 507 Freight Out
302 Cassy, Drawing 508 Utilities
304 Income Summary 509 Advertising

Dolly Vinluan-Abasta
Faculty