3:51 PM | 1.4KB/s all all286% Maulas, Nicole Ang... . . . Republic of the Philippines EULOGIO "AMANG" RODRIGUEZ INSTITUTE OF SCIENCE & TECHNOLOGY Nagtahan, Sampaloc, Manila NAME: YR & SECTION: DATE: ACCOUNT 2: ACCOUNTING FOR MERCHANDISING INDUSTRY ACTIVITY NO. 4 COMPREHENSIVE PROBLEM 1: Completing the Accounting Cycle of a Merchandising Business. Diamond Glass Trading, a wholesaler of glass items, owned by Cristinalyn Ann Trinanes uses the following real accounts in preparing its Statement of Financial Position on August 31, 2021: Diamond Glass Tading Statement of Financial Position as of August 31, 2021 Assets Liabilitiesand Equity Current assets Currentliabilities Cash 120,000.00 Accountspayable 90,000.00 Accounts receiv able 230,000.00 Notespayable 40,000.00 Merchandise inventory 150,000.00 Accrued expenses 25,000.00 Prepaid supplies 12,000.00 Total current liabilities 155,000.00 Total current assets 512,000.00 Non-currentlia billies Non-current assets Mortgage payable 200,000.00 Property, plant and equipment Notespayable, due on Delivery vehicle 212,000.00 March 31, 2025 120,000.00 Less Accum deprecation, Total non- current liabilities 320,000.00 delivery equipment 40,000.00 172,000.00 Total liabilities 475,000.00 Office equipment 80,000.00 Less Accum depreciation, Equity office equipment 25,000 00 55,000.00 CA. Tinanes, Capital 309,000.00 Furniture and fixtures 60,000.00 Less Accum depreciation, furniture and fixtures 15,000.00 45,000.00 Property, plant and equipment,net 272,000.00 To ta I Assets 784,000.00 Total Liabilities and Equity 784,000.00 The business also uses the following nominal accounts in recording its normal operating activities. Revenue Expenses Sales Salaries and wages Sales discounts Rent Sales returns Electricity and waterTo ta | Assets 784,000.00 Total Liabilities and Equity 784,000,00 The business also uses the following nominal accounts in recording its normal operating activities: Revenue Expenses Sales Salaries and wages Sales discounts Rent Sales returns Electricity and water Gain on sale of plant and equipment Telecommunications Taxes and licenses Costs Advertising Purchases Salesmen's commission Purchases discounts Freight-out Purchases returns Miscellaneous Freight-in Income and Expense Summary Diamond Glass Trading made the following transactions in September 2021: Date Transactions Sept 1 Purchased goods from supplier, P34,000. 3 Bought merchandise from supplier, P22,000, terms: 3/10, n/20. Sold merchandise to customer, P45,000, COD. Paid Meralco bill, P1,800. Returned goods to cash supplier, P400. UADA Returned goods to credit supplier, P500. Paid commission to salesmen, P2,800. Freight paid for goods acquired, P1,340. Delivered goods to account customers, P70,000, terms: 2/10, n/30. Fuel amounting to P400 was used for the delivery. 10 Paid local taxes, P700. 10 Received defective goods from cash customer, P250. 11 Issued credit memo to account customer for goods returned, P1,000. 11 Collected credit customers within the discount period, P20,000. 12 Paid supplier within the discount period, P18,000. 15 Paid salaries for the first half of the month, P10.000. 17 Paid rental for the period August 16 - September 15, 2021, P5,000. Purchased computers costing P18,000, paying P12,000 in cash and the balance to be 18 paid in 30 days. 20 Paid printing costs of tarpaulin, brochures, and other promotional materials, P7,500. 21 Paid water bill, P300. 24 Purchased P26,000 worth of merchandise from suppliers, terms: 3/10, n/20. 25 Sold an old equipment having a book value of P1,200 and accumulated depreciation of P800 for a net sales price of P2,500. 26 Purchased office supplies, P970. 29 Paid salaries for the first half of the month, P10,000. 29 Sold goods to customers, P40,000, terms: 10%, 5%. 29 Paid PLDT bill, P2,600. 29 CA.Trinanes drawings for the month, P15,000. 29 A physical count of merchandise revealed a total of P135,000. Required: 1. Journalize the foregoing transactions in the books of Diamond Glass Trading.Sept 1 Purchased goods from supplier, P34,000. Bought merchandise from supplier, P22,000, terms: 3/10, n/20. Sold merchandise to customer, P45,000, COD. Paid Meralco bill, P1,800. Returned goods to cash supplier, P400. Returned goods to credit supplier, P500. Paid commission to salesmen, P2,800. Freight paid for goods acquired, P1,340. V Delivered goods to account customers, P70,000, terms: 2/10, n/30. Fuel amounting to P400 was used for the delivery. 10 Paid local taxes, P700. 10 Received defective goods from cash customer, P250. 11 Issued credit memo to account customer for goods returned, P1.000. 11 Collected credit customers within the discount period, P20,000. 12 Paid supplier within the discount period, P18,000 15 Paid salaries for the first half of the month, P10,000. 17 Paid rental for the period August 16 - September 15, 2021, P5,000. Purchased computers costing P18,000, paying P12,000 in cash and the balance to be 18 paid in 30 days. 20 Paid printing costs of tarpaulin, brochures, and other promotional materials, P7,500. 21 Paid water bill, P300. 24 Purchased P26,000 worth of merchandise from suppliers, terms: 3/10, n/20. 25 Sold an old equipment having a book value of P1,200 and accumulated depreciation of P800 for a net sales price of P2,500. 26 Purchased office supplies, P970. 29 Paid salaries for the first half of the month, P10,000. 29 Sold goods to customers, P40,000, terms: 10%, 5%. 29 Paid PLDT bill, P2,600. 29 CA.Trinanes drawings for the month, P15,000. 29 A physical count of merchandise revealed a total of P135,000. Required: 1. Journalize the foregoing transactions in the books of Diamond Glass Trading. 2. Post the journal entries to the ledger. Determine the ledger balances on September 30, 2021. 3. Prepare a trial balance. 4. Prepare an income statement for the month of September 2021 5. Prepare the statement of changes in owner's equity for the month of September 2021. 6. Prepare the balance sheet on September 30, 2021. 3/3