9 In March 2019, Ms. Rea Navara opened Navara Department Store. The following are the transactions incurred by her business in its first month of operation: March 1 Ms. Navarra invested Php 150,000 cash and Php 25,000 worth of office equipment in the name of the business. 2 Hired a sales assistant with a monthly salary of Php 3,000. 4 Bought merchandise from LS Enterprises for Php 21,500 cash and paid transportation cost of Php 300. 5 Paid advertising for the month, Php 500. 6 Purchased office supplies for cash, Php 6,000. 7 Returned defective merchandise worth Php 1,800 to LS Enterprises. Sold merchandise on credit to Mr. Alejo, Php 19,200. The cost of merchandise is Php 15,000. 10 Paid the transportation worth Php 120 for the merchandise sold on July 9. 12 Received returned merchandise from Mr. Alejo worth Php 750. The cost of merchandise returned if Php 586. 15 Paid half-month salary of employee, Php 1,500. 16 Sold merchandise for cash amounting to Php 10,800. The cost of merchandise is P6,000. 18 Received payment from the credit of Mr. Alejo. Navara Department Store granted a discount of Php 369. 19 Bought merchandise on credit from Zee Wear Store for Php 8,400. 20 Paid transportation cost of Php 80 for the merchandise bought on March 19. 22 Returned defective merchandise to Zee Wear Store, Php 800. 23 Sold merchandise for cash, P5,000. The cost of merchandise is 3,800. 25 Paid the credit to Zee Wear Store. A discount of Php 152 was granted. 28 Paid the utilities for the month amounting to Php 1,200. 31 Ms. Navara withdrew Php 4,000 cash from the business. Adjustments: a. Half-month salary of employee has accrued on March 31. b. Supplies at the end of the month amounted to Php 5,400 c Office equipment depreciated by Php 100 on March 31. d. Merchandise inventory at month-end amounted to Php 3,314. 17 17 Account No. 100 120 TIT 130 140 150 151 CHART OF ACCOUNTS Account Account Titles Account Titles No. Cash 400 Sales Accounts Receivable 410 Sales Returns and Allowances Merchandise Inventory 420 Sales Discount Office Supplies 500 Purchases Office Equipment 510 Purchase Returns and Allowances Accumulated Depreciation Office Equipment 520 Purchase Discount Accounts Payable 530 Freight-in Salaries Payable 600 Freight-Out Navara, Capital 610 Advertising Expense Navara, Drawing 620 Salaries Expense 630 Utilities Expense 640 Office Supplies Expense 650 Depreciation Expense-Office Equipment 700 Income Summary 200 210 300 310 300 P9-1 Journal Entries cr. Dr Date Particulars Php. Php. 2019 Mar. I Cash 150,000 Office Equipment 25,000 To Navara Capital 175,000 ( To record initial investment of the owner) Mar. 2. No Entry Mar. 4 Merchandise/Purchase 21,500 Freight in To Cast Al 21,800 (Purchased merchandise S paid for transportation) Mar. 5. Advertising Exp. -Dr. To Cast Alc (Paid for advertising) Mar. 6. office supplies 6,000 To cash Ale 6,000 (Cast paid for office supplies) Max 7.L.S.Enterprise 1,800 To Merchandise) Purchase 1,800 (Returned defective supp- lies to L. s. Enterprise) Soo Soo Dr prip 119,200 120 > 750 11 1,500 3) Date Account title & Explanation Php. Mar 9. Mr. Alejo 19,200 To sales (sold merchandise on credit) 110 Freight out. 120 To Cash Al (Paid freight on merchandise sold) 12. Sales Return 750 To Mr. Alejo (Merchandise returned ) 15 salary 1,500 To Cast Alc (salary paid for half month) 116 Cash 10,800 To sales Alo (sold merchandise for cast) 1 18 Cash Alc 18,081 Discount Alc 369 To Mr. Alejo (Received from her. Alejo S discount allowed) (19. Merchandise/Purchase 8,400 To Zee Wear store (Bought merchandise on credit) 20 Freight in To cash freight paid in cast) 22 Zee Wear store To Purchase Retuan (Returned merchandise) 110,800 (18,450 18,400 11 80 80 13 800 33 3) > P9.3 Data Account Title & Explanations Dr. cr. Mar. 23 Cash Alo Php 5,000 To sales 5,000 (sold merchandise for Cash) 25. Zee Wear Store 7,600 To Cash Ale 7,448 To discount Alc 152 (Paid to zee wear store & discount received) 28 Utilities Expo 1,200 To Cash Ale 1,200 (Paid for utilities) 31 Navara, Drawings 4,000 To Cash 4,000 | (withdrewe from business) Adjustments Mar 31. salary 1,500 a) To outstanding salary 1,500 (Entry for outstanding salary) 31 Closing stock of supplies 5,400 To Trading Al 15,400 (Closing stock of supplies) c) Depreciation 100 To office Equipment (Equipment Depreciated) d) Mechandise Inventory 3,314 To Trading Alo 13,314 (closing stock of Inventory) 11 b) 100 d pg.h Working Notes I. No Entry for Mar. 2. As pes Money me -measure- ment concept. No Account is affected. 2 sales To Mr. Alejo 19,200 Mara. Less: Retuens 750 Mar. 12 18, 450 Less: Discount 369 Mas 18 Cast Received 18,081 Mar. 18. 3. Total Purchase from Zee Wear store 8, 400 mar. 19 Less Returns 800 Mar. 22 7,600 Less: Discount 152 Mar 25 7,448 Mar. 25 No: 210 Balance Account: Salaries Payable Date Items Mar 31 Adjustment (a) F Debit Credit Debit Credit 1,500 1,500 Account: Capital Date No: 300 Credit Balance Debit Credit Items F Debit 31 4,147 Closing Entry Closing Entry 179,147 175,147 31 4,000 No: 310 Balance Account: Drawing Date Items F Debit Credit Debit Credit Mar 31 Closing Entry 4,000 0 Account: Sales Date Mar No: 400 Credit Balance Debit Credit Items F Debit 31 Closing Entry 35,000 21 No: 410 Balance Account: Sales Returns and Allowances Date Items F Debit Credit Debit Credit Mar 31 Closing Entry 750 0 Account: Sales Discount No: 420 Balance Date Items F Debit Credit Debit Credit Account: Purchases N: 500 Balance Date Items F Debit Credit Debit Credit No: 510 Balance Account: Purchase Returns and Allowances : Date Items F Debit Credit Debit Credit Account: Purchase Discount No: 520 Balance Date Items F Debit Credit Debit Credit Account: Freight-In No: 530 Balance Date Items F Debit Credit Debit Credit No: 210 Balance Account: Salaries Payable Date Items Mar 31 Adjustment (a) F Debit Debit Credit Credit 1,500 1,500 No: 300 Balance Account: Capital Date Items F Debit Credit Debit Credit 4,147 31 31 Closing Entry Closing Entry 179,147 175,147 4,000 Account: Drawing No: 310 Balance Date Items F Debit Credit Debit Credit Mar 31 Closing Entry 4,000 0 No: 400 Balance Account: Sales Date Mar Items F Debit Credit Debit Credit 31 Closing Entry 35,000 0 21 Account: Sales Returns and Allowances No: 410 Balance Date Items F Debit Credit Debit Credit Mar 31 Closing Entry 750 O No: 420 Balance Account: Sales Discount : Date Items F Debit Credit Debit Credit Account: Purchases N: 500 Balance Date Items F Debit Credit Debit Credit Account: Purchase Returns and Allowances No: 510 Balance Date Items F Debit Credit Debit Credit Account: Purchase Discount No: 520 Balance Date Items F Debit Credit Debit Credit No: 530 Balance Account: Freight-in Date Items F Debit Credit Debit Credit Account: Freight-Out No: 600 Credit Balance Debit Credit Date Items F Debit 22 Account: Advertising Expense Balance No: 610 : Credit Date Items F Debit Debit Credit Account: Salaries Expense No: 620 : Credit Date Balance Debit Credit Items F Debit Debit Account: Utilities Expense No: 630 Balance Date Items F Debit Credit Debit Credit Account: Office Supplies Expense No: 640 Balance Date Items F Debit Credit Debit Credit Account: Depreciation Expense-Office Equipment No: 650 Balance Date Items F Debit Credit Debit Credit Account: Income Summary No: 700 Balance Date Items F Debit Credit Debit Credit Mar 31 Adjustment (d) 3,314 3,314 9 In March 2019, Ms. Rea Navara opened Navara Department Store. The following are the transactions incurred by her business in its first month of operation: March 1 Ms. Navarra invested Php 150,000 cash and Php 25,000 worth of office equipment in the name of the business. 2 Hired a sales assistant with a monthly salary of Php 3,000. 4 Bought merchandise from LS Enterprises for Php 21,500 cash and paid transportation cost of Php 300. 5 Paid advertising for the month, Php 500. 6 Purchased office supplies for cash, Php 6,000. 7 Returned defective merchandise worth Php 1,800 to LS Enterprises. Sold merchandise on credit to Mr. Alejo, Php 19,200. The cost of merchandise is Php 15,000. 10 Paid the transportation worth Php 120 for the merchandise sold on July 9. 12 Received returned merchandise from Mr. Alejo worth Php 750. The cost of merchandise returned if Php 586. 15 Paid half-month salary of employee, Php 1,500. 16 Sold merchandise for cash amounting to Php 10,800. The cost of merchandise is P6,000. 18 Received payment from the credit of Mr. Alejo. Navara Department Store granted a discount of Php 369. 19 Bought merchandise on credit from Zee Wear Store for Php 8,400. 20 Paid transportation cost of Php 80 for the merchandise bought on March 19. 22 Returned defective merchandise to Zee Wear Store, Php 800. 23 Sold merchandise for cash, P5,000. The cost of merchandise is 3,800. 25 Paid the credit to Zee Wear Store. A discount of Php 152 was granted. 28 Paid the utilities for the month amounting to Php 1,200. 31 Ms. Navara withdrew Php 4,000 cash from the business. Adjustments: a. Half-month salary of employee has accrued on March 31. b. Supplies at the end of the month amounted to Php 5,400 c Office equipment depreciated by Php 100 on March 31. d. Merchandise inventory at month-end amounted to Php 3,314. 17 17 Account No. 100 120 TIT 130 140 150 151 CHART OF ACCOUNTS Account Account Titles Account Titles No. Cash 400 Sales Accounts Receivable 410 Sales Returns and Allowances Merchandise Inventory 420 Sales Discount Office Supplies 500 Purchases Office Equipment 510 Purchase Returns and Allowances Accumulated Depreciation Office Equipment 520 Purchase Discount Accounts Payable 530 Freight-in Salaries Payable 600 Freight-Out Navara, Capital 610 Advertising Expense Navara, Drawing 620 Salaries Expense 630 Utilities Expense 640 Office Supplies Expense 650 Depreciation Expense-Office Equipment 700 Income Summary 200 210 300 310 300 P9-1 Journal Entries cr. Dr Date Particulars Php. Php. 2019 Mar. I Cash 150,000 Office Equipment 25,000 To Navara Capital 175,000 ( To record initial investment of the owner) Mar. 2. No Entry Mar. 4 Merchandise/Purchase 21,500 Freight in To Cast Al 21,800 (Purchased merchandise S paid for transportation) Mar. 5. Advertising Exp. -Dr. To Cast Alc (Paid for advertising) Mar. 6. office supplies 6,000 To cash Ale 6,000 (Cast paid for office supplies) Max 7.L.S.Enterprise 1,800 To Merchandise) Purchase 1,800 (Returned defective supp- lies to L. s. Enterprise) Soo Soo Dr prip 119,200 120 > 750 11 1,500 3) Date Account title & Explanation Php. Mar 9. Mr. Alejo 19,200 To sales (sold merchandise on credit) 110 Freight out. 120 To Cash Al (Paid freight on merchandise sold) 12. Sales Return 750 To Mr. Alejo (Merchandise returned ) 15 salary 1,500 To Cast Alc (salary paid for half month) 116 Cash 10,800 To sales Alo (sold merchandise for cast) 1 18 Cash Alc 18,081 Discount Alc 369 To Mr. Alejo (Received from her. Alejo S discount allowed) (19. Merchandise/Purchase 8,400 To Zee Wear store (Bought merchandise on credit) 20 Freight in To cash freight paid in cast) 22 Zee Wear store To Purchase Retuan (Returned merchandise) 110,800 (18,450 18,400 11 80 80 13 800 33 3) > P9.3 Data Account Title & Explanations Dr. cr. Mar. 23 Cash Alo Php 5,000 To sales 5,000 (sold merchandise for Cash) 25. Zee Wear Store 7,600 To Cash Ale 7,448 To discount Alc 152 (Paid to zee wear store & discount received) 28 Utilities Expo 1,200 To Cash Ale 1,200 (Paid for utilities) 31 Navara, Drawings 4,000 To Cash 4,000 | (withdrewe from business) Adjustments Mar 31. salary 1,500 a) To outstanding salary 1,500 (Entry for outstanding salary) 31 Closing stock of supplies 5,400 To Trading Al 15,400 (Closing stock of supplies) c) Depreciation 100 To office Equipment (Equipment Depreciated) d) Mechandise Inventory 3,314 To Trading Alo 13,314 (closing stock of Inventory) 11 b) 100 d pg.h Working Notes I. No Entry for Mar. 2. As pes Money me -measure- ment concept. No Account is affected. 2 sales To Mr. Alejo 19,200 Mara. Less: Retuens 750 Mar. 12 18, 450 Less: Discount 369 Mas 18 Cast Received 18,081 Mar. 18. 3. Total Purchase from Zee Wear store 8, 400 mar. 19 Less Returns 800 Mar. 22 7,600 Less: Discount 152 Mar 25 7,448 Mar. 25 No: 210 Balance Account: Salaries Payable Date Items Mar 31 Adjustment (a) F Debit Credit Debit Credit 1,500 1,500 Account: Capital Date No: 300 Credit Balance Debit Credit Items F Debit 31 4,147 Closing Entry Closing Entry 179,147 175,147 31 4,000 No: 310 Balance Account: Drawing Date Items F Debit Credit Debit Credit Mar 31 Closing Entry 4,000 0 Account: Sales Date Mar No: 400 Credit Balance Debit Credit Items F Debit 31 Closing Entry 35,000 21 No: 410 Balance Account: Sales Returns and Allowances Date Items F Debit Credit Debit Credit Mar 31 Closing Entry 750 0 Account: Sales Discount No: 420 Balance Date Items F Debit Credit Debit Credit Account: Purchases N: 500 Balance Date Items F Debit Credit Debit Credit No: 510 Balance Account: Purchase Returns and Allowances : Date Items F Debit Credit Debit Credit Account: Purchase Discount No: 520 Balance Date Items F Debit Credit Debit Credit Account: Freight-In No: 530 Balance Date Items F Debit Credit Debit Credit No: 210 Balance Account: Salaries Payable Date Items Mar 31 Adjustment (a) F Debit Debit Credit Credit 1,500 1,500 No: 300 Balance Account: Capital Date Items F Debit Credit Debit Credit 4,147 31 31 Closing Entry Closing Entry 179,147 175,147 4,000 Account: Drawing No: 310 Balance Date Items F Debit Credit Debit Credit Mar 31 Closing Entry 4,000 0 No: 400 Balance Account: Sales Date Mar Items F Debit Credit Debit Credit 31 Closing Entry 35,000 0 21 Account: Sales Returns and Allowances No: 410 Balance Date Items F Debit Credit Debit Credit Mar 31 Closing Entry 750 O No: 420 Balance Account: Sales Discount : Date Items F Debit Credit Debit Credit Account: Purchases N: 500 Balance Date Items F Debit Credit Debit Credit Account: Purchase Returns and Allowances No: 510 Balance Date Items F Debit Credit Debit Credit Account: Purchase Discount No: 520 Balance Date Items F Debit Credit Debit Credit No: 530 Balance Account: Freight-in Date Items F Debit Credit Debit Credit Account: Freight-Out No: 600 Credit Balance Debit Credit Date Items F Debit 22 Account: Advertising Expense Balance No: 610 : Credit Date Items F Debit Debit Credit Account: Salaries Expense No: 620 : Credit Date Balance Debit Credit Items F Debit Debit Account: Utilities Expense No: 630 Balance Date Items F Debit Credit Debit Credit Account: Office Supplies Expense No: 640 Balance Date Items F Debit Credit Debit Credit Account: Depreciation Expense-Office Equipment No: 650 Balance Date Items F Debit Credit Debit Credit Account: Income Summary No: 700 Balance Date Items F Debit Credit Debit Credit Mar 31 Adjustment (d) 3,314 3,314