Current Assets Non-Current Assets 101 - Cash 121 - Delivery Van 102 - Notes Receivable 121-A Accum. Depr.-Del. Van 103 - Accounts Receivable 122 - Furniture & Fixtures 103-A - Allowance for 122-A - Accum. Depr.-Fur & Fixt. Impairment Loss 123 - Office Equipment 104 - Interest Receivable 123-A - Accum. Depr.-Off. Eqpt. 105 - Prepaid Rent 106 - Prepaid Advertising 107 - Prepaid Insurance 108 - Supplies Inventory 109 - Merchandise Inventory 115 - VAT Input Tax Current Liabilities Non-Current Liabilities 201 - Notes Payable 251 - Loan Payable 202 - Accounts Payable 203 - Interest Payable 204 - Unearned Rental Income 210 - VAT Output 211 - VAT Payable Expense Cost of Sales Owner's Equity 501 - Purchases 301 - Lee Gao, Capital 502 - Freight In 302 - Lee Gao, Drawing 503 - Purchase Returns and 303 - Income and Expense Summary Allowances 504 - Purchase Discount Income 401 - Sales Operating Expenses-Selling 402 - Sales Returns & Allowances 601 - Sales Salaries Expense 403 - Sales Discount 602 - Advertising Expense 603 - Freight Out 604 - Misc. Selling Expense 605 - Impairment Loss 606 - Depreciation Exp.-Del. VanExpense ft H\" E' 59"\" Cost of Sales Owner's Equity 501 Purchases 301 Lee Gao, Capital 59?- ' FI'EiEht In 302 - Lee Gao, Drawing 503 Purchase Returns and Allowances 504 Purchase Discount 303 Income and Expense Summary Income 401 - Sales 402 Sales Returns 81 Allowances 403 Sales Discount Operating Expenses-Selling 601 Sales Salaries Expense 602 Advertising Expense 603 Freight Out 504 Misc. Selling Expense 605 Impairment Loss 506 Depreciation Exp-Del. Van Expense Operating Expense - Administrative Other Income 1'01 Office Salaries Expense 301 Interest Income 3'02 Rent Expense 302 Rental Income ii'03 Insurance Expense 1'04 Office Supplies Expense Other Expense 1'05 Taxes and Licenses Expense 901 Interest Expense 3'06 Light and Water Expense 1'07 Depreciation Exp.-Off. Eqpt. 1'03 Depreciation Exp.-Furn. Er. Fixt. LEE GAO PUT UP A MERCHANDISING BUSINESS UNDER THE TRADE NAME WEEN TRADING. THE END OF FISCAL YEAR IS JUNE 30. DURING THE MONTH OF JUNE, THE FOLLOWING TRANSACTIONS OCCURRED: June 1 The owner invested the following: Cash - P500000; Merchandise P50,000 1 Paid municipal iicenses and permits, P1,260 Bought office equipment from Royal Equipment, P4B,000 terms n/15 1 Paid freight on the purchase of equipment, P2,000 1 Paid 3 months rent in advance, P45,000 1 1 Baught ofce supplies from Cunanan Supply, P1,250 for cash Bought merchandise from Zebra Trading, P40,000 terms, 2/ 10, n/30 and paid freight of P1,600 1 Paid for the 2 months advertisement in the newspaper, P10,000 Cash purchases, P22,000 with trade discount of 10% 3 Cash sales, list price of P86,000 with trade discount of 4% S Bought office tables and chairs from Lucas Furniture, P42,650 terms 1/ 10, n/ 30 6 Returned defective tables to Lucas Furniture, costing P2,650 7 The owner invested his computer in the business, P75,000 B Bought merchandise from Zebra Trading, P16,000 terms 2f10, n/BO and paid freight of P800 10 Sold merchandise to Cruz Enterprises P36,500 terms 10/10, n/30 and paid freight of P920 11 Sold merchandise to Andaya Company, P12,500 terms n/60 Cruz Enterprise returned defective merchandise P6500 15 Paid the following: Sales Salaries P12,000; Office Salaries P18,000 15 Borrowed money from PNB, P200000 payable in 5 years 15 The owner withdrew cash P10,000 for his personal use. 15 Bought delivery van P850,000, terms 20% downpayment balance payable in one year. 16 Cruz Enterprise made a partial payment of P20,000 16 Sold merchandise to Lion Trading with a list price of P25,000 terms 8% TD, 2/10, MB!) 17 Issued a 60-day 6% note to Leopard Trading, P8,000 for merchandise bought June 18 Bought merchandise from Tigers Co. P18,000 terms n/60 19 Sold merchandise to Abenson, P34,000 terms 3/5, 2/10, n/30 and paid freight of P2,200 19 Bought merchandise from Elephant Trading, P16,000 terms 3/15, 1/20, n/40 20 Cruz Enterprise paid the account in full. 21 Lion Trading made a partial payment of P11,000 21 Abenson returned defective merchandise, P4,000 21 Returned to Elephant Trading defective merchandise worth P2,500 23 Abenson made a partial payment of P11,000 June 25 Sold to Alhambra merchandise, P26,000 terms 1/5, n/EOM 26 Received a 30-day 6% note from Litonjua Co. for merchandise sold, P6,000 27 Received a cash refund for defective merchandise returned, P2,000 28 Gave a cash refund for a cash customer, P1,200 for defective merchandise returned 29 Abenson paid his account full 29 Bought merchandise from Abra Trading, P20,000 terms 3/5, n/10 30 The owner withdrew cash P12,000 for his personal use. 30 Paid one year insurance, P24,000 Dec. 30 Paid the following: Sales Salaries P12,000; Office Salaries P.15,000 30 Paid the following bills: Meralco P11,800; Water Bill P8,700 30 A tenant paid two months advance rental, P4,000 30 Cash sales, P50,000 with trade discount of 8% 30 Paid the account of Abra Trading in full