This document provides the instructions and chart of accounts for a bookkeeping practice set using the perpetual inventory method. The practice set involves journalizing transactions from November 1-30 for a retail business. Students are asked to prepare journal entries, post to ledgers, prepare financial statements including a trial balance, income statement, statement of changes in equity, statement of financial position, statement of cash flows, and a post-closing trial balance. The document provides a detailed chart of accounts and lists transactions to be journalized for the retail business over the month of November.
ACC 102 Bookkeeping Practice set Perpetual with Answer Sheet (1).pdf
1. ACC 102 – BOOKKEEPING PRACTICE SET - PERPETUAL
NAME: ___________________________________ Course/Yr./Section: ___________ Date: ___________
Problem 1: ( PERPETUAL Inventory Method)
Nov. 1 Golden Dragon invested P450,000 in his retail business named, GD Enterprises
2 Bought equipment for cash, P150,000.
2 Bought merchandise on account from Iloilo Supply Company, P210,000, terms 2/10, n/30.
3 Bought office supplies on cash for P40,000.
4 Sold merchandise on account, P200,000, FOB Destination, terms 2/10, n/30. The cost of merchandise
sold was P140,000.
5 Paid P2,000 freight on Nov. 4 sale.
6 Received credit from Iloilo Supply Company for merchandise returned P3,000.
11 Paid Iloilo Supply Company.
13 Collected from Nov. 4 customers.
14 Bought merchandise on cash for P180,000
15 Salaries paid, P15,000.
16 Borrowed money from Metro Bank, signed a promissory note for P150,000.
17 Received refund from a supplier on cash purchase of Nov. 14, P9,000.
18 Purchase merchandise from Cebu Enterprise, P160,000, FOB Shipping point, terms, 2/10, n/30.
20 Paid freight on Nov. 18 purchase, P5,000.
23 Sold merchandise for P250,000. The merchandise sold had a cost of P150,000
26 Purchase merchandise for cash, P150,000.
27 Paid Cebu Enterprises on the Nov, 18 purchase, P96,000. No discount allowed on partial payment.
28 Golden Dragon withdrew cash from the business for personal use, P75,000
29 Made refund to cash customers for defective merchandise, P18,750
30 Sold merchandise on account, P200,000, n/30. Cost of the merchandise sold is P120,000.
30 Paid the following: Advertising, P10,000; Utilities, P4,000; Rent, P25,000; Salaries, P15,000.
Requirements:
1. Prepare journal entries.
2. Post journal entries to ledgers
3. Construct Trial Balance
4. Prepare Financial Statements
5. Prepare Closing Journal entries
6. Construct Post-Closing Trial Balance
CHART OF ACCOUNTS
Account Title Account No. Account Title Account No. Account Title Account No.
CASH 110 ACCOUNTS PAYABLE 210 COST OF GOODS SOLD 510
ACCOUNTS RECEIVABLE 120 NOTES PAYABLE 220 FREIGHT OUT 610
MERCHANDISE INVENTORY 130 GOLDEN DRAGON, CAPITAL 300 ADVERTISING EXPENSE 620
OFFICE SUPPLIES 140 GOLDEN DRAGON, DRAWING 310 UTILITIES EXPENSE 630
EQUIPMENT 150 SALES 410 RENT EXPENSE 640
SALES RETURNS & ALLOWANCE415 SALARIES EXPENSE 650
SALES DISCOUNT 420 INCOME SUMMARY 660
2. CASE 2.
2.1
Fax Company borrowed P100,000 on December 1 by signing a six-month note that specifies interest at an annual
percentage rate (APR) of 12%. No interest or principal payment is due until the note matures on May 31. Fax
Company prepares financial statements at the end of each calendar month. Provide an answer for the month end
of January only.
2.2
In December 1, BOX paid its Insurance agent P2,400 for the annual insurance premium covering the twelve
month period beginning on December1. The P2,400 payment was recorded on December 1 with a debit to the
current asset Prepaid Insurance and a credit to the current asset Cash. BOX Company prepares monthly financial
statements at the end of each calendar month. Provide an answer for the month end of March only.
2.3
On December 1, SOX Company began operations. On December 4, it purchased P1,500 of supplies and recorded
the transaction with a debit to the Income statement account Supplies Expense and a credit to the current
liability Accounts Payable. SOX prepares monthly financial statements at the end of each calendar month. At the
end of the day on December 31, SOX company estimated that P700 of the supplies were still on hand in the
supply room.
REQUIREMENT:
Answer the questions pertaining to the adjusting entries for each of the three cases. Use the answer sheet
provided for Case 2, Set 1.
7. 210 ACCOUNT PAYABLE
DATE EXPLANATION PR DEBIT CREDIT
DEBIT CREDIT
202 NOTES PAYABLE
DATE EXPLANATION PR DEBIT CREDIT
DEBIT CREDIT
310 GOLDEN DRAGON CAPITAL
DATE EXPLANATION PR DEBIT CREDIT
DEBIT CREDIT
320 GOLDEN DRAGON, DRAWINGS
DATE EXPLANATION PR DEBIT CREDIT
DEBIT CREDIT
410 SALES
DATE EXPLANATION PR DEBIT CREDIT
DEBIT CREDIT
415 SALES RETURN AND ALLOWANCES
DATE EXPLANATION PR DEBIT CREDIT
DEBIT CREDIT
BALANCE
BALANCE
BALANCE
BALANCE
BALANCE
BALANCE
8. 420 SALES DISCOUNTS
DATE EXPLANATION PR DEBIT CREDIT
DEBIT CREDIT
610 FREIGHT OUT
DATE EXPLANATION PR DEBIT CREDIT
DEBIT CREDIT
620 ADVERTISING EXPENSE
DATE EXPLANATION PR DEBIT CREDIT
DEBIT CREDIT
630 UTILITIES EXPENSE
DATE EXPLANATION PR DEBIT CREDIT
DEBIT CREDIT
640 RENT EXPENSE
DATE EXPLANATION PR DEBIT CREDIT
DEBIT CREDIT
650 SALARIES EXPENSE
DATE EXPLANATION PR DEBIT CREDIT
DEBIT CREDIT
BALANCE
BALANCE
BALANCE
BALANCE
BALANCE
BALANCE
9. 660 INCOME SUMMARY
DATE EXPLANATION PR DEBIT CREDIT
DEBIT CREDIT
510 COST OF GOODS SOLD
DATE EXPLANATION PR DEBIT CREDIT
DEBIT CREDIT
103 MERCHANDISE INVENTORY
DATE EXPLANATION PR DEBIT CREDIT
DEBIT CREDIT
BALANCE
BALANCE
BALANCE
10. ACCNT. NO. ACCOUNT TITLE DEBIT CREDIT
(Perpetual Inventory Method)
GD Enterprises
Trial Balance
NOVEMBER 30, 20X2
11. NOVEMBER 30, 20X2
GD Enterprises
STATEMENT OF CHANGES IN EQUITY
NOVEMBER 30, 20X2
GD Enterprises
STATEMENT OF FINANCIAL POSITION
(Perpetual Inventory Method)
GD Enterprises
STATEMENT OF FINANCIAL PERFORMANCE
NOVEMBER 30, 20X2
12. ACCOUNT TITLE DEBIT CREDIT
NOVEMBER 30, 20X2
GD Enterprises
STATEMENT OF CASH FLOWS
GD Enterprises
POST-CLOSING TRIAL BALANCE
NOVEMBER 30, 20X2
