Instructions

Please prepare the journal entry.

Make the general ledger .

Make the statement of cost of goods sold.

Serenityty Villa opened SV Merchandising Store. The following transactions occurred during the

month of July 2018:

1-

Jul Villa invested P128,000 in the business.

2 Acquired Computer Set for P21,000. Villa paid 5,000 and issued a promissory note for

the remaining balance.

2 Acqired supplies for cash, P1,200.

3 Purchase P81,900 of merchandise from LOWKEY company on account.

Terms: FOB Destination, 2/10, n/30.

5 Sold merchandise to THORE for P48,600 on account.

Terms: FOB Destination, 2/10, n/30.

The cost of merchandise sold was P28,880.

Paid P550 freight on the same day.

7 Received collections from customers billed on sales of P48,600 on July 5.

9 Returned merchandise purchased from LOWKEY Company, P380.

11 Paid the amount due from July 3 transactrion.

13 Purchase merchandise P12,300 and additional supplies P450 for cash.

15 Paid 15th month salary, P8,000.

16 Received refund for poor quality of merchandise from a supplier on cash purchase

made on July 13, P870.

18 Sold merchandise to various customers, P24,300.

The cost of merchandise is P16,500.

19 Purchase 15,800 of merchandise from Eleonor Shop.

FOB Shipping point, terms, 2/10, n/30.

23 Receive sales returns, P3,800 from various customers. It's cost is P2,900.

24 Borrowed money from Town Bank, signed promisory note for P13,500.

24 Paid freight on July 21 purchase, P580.

26 Sold merchandise on account for P36,800 terms, 2/10, n/30 FOB Destinaton. The

merchandise sold had a cost of P21,300.

28 Serenity Villa withdrew cash from the business, P9,000.

30 Paid Eleonor Shop in full.

31 Paid Salary to employees, P8,000.

31 Paid News Hub for 1 month advertisement of the store, P1,580.

31 Paid Rent and Utilities expenses for the month, P2,800 and P700 respectively.

31. Inventory count at the end of the month, 48,480.

The following Chart of Accounts are used by SV Merchandising Store: using the Periodic Method 101 Cash 400 Sales 110 Accounts Receivable 410 Sales Discounts 120 Supplies 420 Sales Returns and Allowances 130 Inventory 510 Purchases 140 Office Equipment 520 Purchases Discounts 210 Accounts Payable 530 Purchases Returns and Allowances 220 Notes Payable 540 Freight In 310 Villa, Capital 610 Salaries Expense 320 Villa, Drawings 620 Freight Out 330 Income Summary 630 Advertising Expense 640 Rent Expense 650 Utilities Expense