Practice Exercise: Journalize the following transactions of GG Company

GG Company was established on September 1, 2021 by Ms. Gina Gratil. The following transactions took place during the first month of operation.

Sept. 1 Ms. Gina Gratil deposited P800,000 to the BPI in the name of GG

Company.

2 Purchased merchandise for P50,000 from Andi Company on

account. Terms 2/10, n/30.

3. Sold merchandise to Drew Brothers Inc. for P35,000 on account.

Terms 2/10, n/30.

4 Paid rent for the month, P75,000.

7 Purchased merchandise for P210,000 from Klin Inc. on account.

Terms 2/10, n/30.

7 Sold merchandise for P87,500 on account to Lyn Trading.

10 A note was issued in the amount of P500,000 for a loan from BPI.

13 Received payment from Drew Brothers Inc.

14 Purchased office supplies for cash, P8,500.

15 Paid the salaries of employees for first half of the month, P35,000.

16 Paid P20,000 for a one year insurance policy.

Sept. 18 Purchased merchandise with a list price of P200,000. Trade

discount of 10%, 5% were given by the seller.

19 Purchased merchandise from Ilo-ilo worth P80,000 on account,

2/10, n/30. Shipment term: FOB Destination.

20 Returned damaged goods costing P20,000 to Klin Inc.

21 Freight cost of P6,000 was paid for the purchase from Ilo-ilo.

22 Sold merchandise to Paul Merchandising on account, P75,000.

25 Paid Andi Company for Sept. 2 purchase.

26 Issued credit of P10,000 to Lyn Trading for returned damaged

merchandise.

28 Sold merchandise worth P120,000 on account to Mirmo

Company ( a customer from Cebu). Terms: 2/10, n/30. The

merchandise will be shipped FOB Shipping Point.

28 GG Company paid the freight of P5,000 for the sale to Mirmo.

30 Cash sales for the month was P49,200.

30 Paid sales commission of P25,000.

30. Paid the salaries of employees for the second half P39,000.