Activity 1

Purchased transaction (6 points for each correct debit amount, credit amount and amount and explanation)

On September 05, Mac Company buys merchandise on account from Cam Company. The selling price of the good is P75,000 and the cost to Cam was P40,000. On September 8, Mac Company returned the defective goods with a selling price of P10,000. Record the transactions on the books of Mac Company.

Activity 2

Sales transactions (12 points: 1 point for each correct debit account, credit amount, amount explanation)

On September 05, Mac company buys merchandise on account from Cam Company. The selling price of the good is P75,000 and the cost to Cam was P40,000. On September 8, Mac Company returned the defective goods with a selling price of P10,000 and a fair value of P1,500. Record the transactions on the books of Cam Company.

Activity 3

Closing Entries (12 points: 1 point for each correct debit account and amount, credit account and amount, and explanation)

The trial balance of Celine's Sport Wear Shop on December 31 shows inventory of P1,250,000, Sales Revenue of P8,120,000, Sales Returns and Allowances of P240,000. Sales Discount of P180,000, Cost of Good Sold P5,500,000, Rent Revenue of P300,000, Freight-out of P90,000, Rent Expense of P440,00, and Salaries and wages of P1,100,000. Prepare the closing entries for the above accounts.