Mr. Lopez opened a mini grocery store with business name Lopez Fiesta Mart. Operations began on January 1, 2021, and the following transactions were completed during the month:

1.Mr. Lopez withdrew ₱150,000 from a personal savings account and used it to open a new account in the name of Lopez Fiesta Mart.

2.Bought grocery supplies on account ₱10,700.

4.Acquired a service vehicle costing ₱76,000. A payment of ₱25,000 Cash was made and a note payable given for the ₱51,000 remainder payable for 6 equal monthly installment.

6.Purchased merchandise from Puregold ₱49,500, terms 5/10, 3/20.

7.Paid ₱1,600 delivery charge for January 6 transactions.

8.Paid for three months of advertising and recorded Prepaid Advertising in the amount of ₱6,000.

11.Sold merchandise on account ₱42,000 with 40% mark-up from the inventory cost of ₱30,000, term 2/10, n/30.

12.Paid ₱1,200 freight for January 11 transactions.

14.Returned defective merchandise to Puregold amounting to ₱4,500.

15.Paid salaries, ₱5,600.

16. Signed a promissory note for ₱30,000 loaned amount from Commonwealth Bank.

17. Received returned merchandise from customer ₱3,500.

18. Paid ₱5,700 of the amount owed from the transaction of January 2.

19. Purchase additional groceries from Talavera Supermarket amounting to ₱44,000.

20. Collected full settlement of a customer from January 11 transactions.

24. Paid telephone expense, ₱1,600.

25. Paid building rentals for the month, ₱4,800.

26. Settled accounts to Puregold.

27. ₱41,750 cost of merchandise sold for ₱58,450.

28. Withdrew ₱20,000 from the business.

29. Paid miscellaneous expenses, ₱3,430.

30. Paid the first installment of the note payable on Service Vehicle, ₱8,500.

31. Paid Salaries ₱5,100, net of the following deductions: SSS, ₱380; Pag-IBIG, ₱100; Philhealth, ₱220.

The Merchandise Inventory at the end of the of the month is ₱20,000.

Requirements:

- Journalize the Transactions

- Post to the General Ledger

- Trial Balance

- Prepare the Financial Statements

- Closing Entries

- Post Closing Trial Balance

Journalize the transactions using the following accounts:

ASSETS: Cash (110); Accounts Receivable (120); Supplies (130); Prepaid Advertising (140); Merchandise Inventory (150); Service Vehicle (160);

LIABILITIES: Accounts Payable (210); SSS Payable (220); Pag-IBIG Payable (230); Philhealth Payable (240); Notes Payable (250).

CAPITAL: Lopez, Capital (310); Lopez, Withdrawals (320).

REVENUES: Sales (410); Sales Returns & Allowances (420); Sales Discount (430); Cost of Good Sold (550).

EXPENSES: Freight-out (610); Salaries Expense (620); Rent Expense (630) Telephone Expense (640); and Miscellaneous Expense (650).