ACCOUNTING ACTIVITIES

Activity 4 Required: Prepare the Income statement using the function of expense method. The accounts of Marissa Babilonia Health Store selected from the Dec. 31, 2020 trial balance are as follows: Advertising expense P 150.000 Transportation out 260,000 Depreciation Expense- Office Equipment 110,000 Depreciation Expense-Store Equipment 140,000 Transportation in 100.000 Merchandise Inventory, 1/1/20 1,160,000 Merchandise Inventory, 12/31/20 1,040,000 Miscellaneous expense 90,000 Office supplies Expense 430,000 Purchases 6,710,000 Purchases Returns and Allowances 250,000 Purchases Discounts 180,000 Salaries Expense- Selling 960,000 Salaries Expense- General 1,130,000 Sales 9,810,000 Sales Returns and Allowances 260,000 Sales Discounts 140,000 Selling Supplies Expense 70,000Activity 1 Fill in the Blanks 1. The normal balance of Sales Discounts is _. 2. and is a contra-revenue account. 3. Sales discount is a account. 4. A _ records the sale of merchandise on account. 5. The _ lists in alphabetical order an account for each customer. 6. _ in the general ledger is called controlling account. 7. Sales returns and allowances is a account. 8. F03 shipping point means the covers the shipping cost. 9. The purchases account has a balance. 10. Purchased discounts is Increased by a Actrvrty 2 Metchl T A. mSa e': 8. Cash Receipts C. Purchases D. Cash payments E. General Required: Indicate in which of the five journals each transaction must be recorded: Sale of merchandise for cash. Sale of merchandise on account. Cash refund to a customer. Receipt of cash from a customer in settlement of an account. Purchase of merchandise on account. Purchase of merchandise for cash. Payments of salaries. 8. Note payable sent to a creditor in settlement of an account. 9. Payment of interest on a mortgage. 10. Receipt of a note in settlement of a customer's account. N999PN.' Activity 3 Recording and Posting Sales Transactions Using Special Journals Olson Sala Company completed the following sales transactions during the month of June 2020. All credit sales have terms of 3/10, n/30 and all invoices are dated as at the transaction date. June Olson Sala Invested P 52,000 of his funds in the business. Sold merchandise on account to R. Bituin, P 32,000. Invoice No. 377. Sold merchandise on account to A. Sold merchandise on account to A. Perdales, P 54,000 Invoice No. 378. Sold P 46,000 of merchandise for cash. Received payment from R. Bituin, less discounts 9 Received payment from A. Perdales, less discounts 13 Sold merchandise to B. Ceballus on account, P 62,000. Invoice No. 379. 15 Borrowed P 30,000 from the Monte de Santa Cruz Bank by issuing a 10% note payable due in 3 months 15 B. Ceballus returned P 11,000 of merchandise from the June 13 sale 16 Sold merchandise to A Ramel on account, P 17,000. Invoice No. 380. 21 Collected amount due from B. Ceballus less returns and discounts. 29 received P 6,000 from A. Ramel, 30 Sold goods on account to P. Maritimo, P 34,000. Invoice No, 381. Required: 1. Record the transactions in the appropriate journals. Total the sales and cash receipts journal Using the following account numbers and journal page numbers, post to the general and accounts receivable ledger; Account No. Journal Page No. Cash 110 Sales 16 Accounts Receivable 120 Cash Receipts 35 Notes Payable 210 General 13 Sala, Capital 310 Sales 410 Sales Returns and Allowances 420 Sales Discounts 430 4. Prepare as schedule of accounts receivable