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).

INCOME SUMMARY (700)