PROBLEM 1 - PREPARATION OF JOURNAL, LEDGER & POST-CLOSING TRIAL BALANCE Using the same problems 1 8.: 2 extracted in Topic 3 assignment quiz for DEF Manufacturing, prepare the following requirements: a. Journalize the closing entries using the general journal. {10 pts) b. Post the closing journal entries to the general ledger accounts (copy first all your postings to the ledger account balances from the previous problems after including adjusting entries, then post the closing entries). {10 pts) c. Prepare the past-closing trial balance. {10 ptsl d. Journalize the reversing entries using the general journal. {10 ptsl e. Post the reversing journal entries to the general ledger accounts. {10 pts) {Submit your handwritten answers aslng the journal ledger and trial balance provided in this problem.) PROBLEM 1 - PREPARATION OF JOURNAL, LEDGER & PRELIMINARY TRIAL BALANCE DEF Manufacturing Chart of Accounts Assets Income Cash Sales Accounts Receivable Finished Goods Inventory Work In Process Inventory Raw Materials Inventory Factory Supplies Inventory Expenses Prepaid Rent Cost of Goods Sold Factory Properties Office Salaries Expense Accumulated Depreciation - Factory Properties Office Supplies Expense Office Furniture & Fixtures Utilities Expense Accumulated Depreciation - Office Furnitures Depreciation Expense - & Fixtures Factory Properties Delivery Van Depreciation Expense - Accumulated Depreciation - Delivery Van Office Furniture & Fixtures Liabilities Depreciation Expense- Accounts Payable Delivery Van Utilities Payable Taxes & Licenses Expense Loans Payable Rent Expense Owner's equity Other Expenses Johnfrivs, Capital Johnfrivs, Drawing DEF Manufacturing, owned and operated by Johnfrivs, has just started its initial operations on August of the current year. August 1- Invested P1,000,000 in cash and factory properties worth of P3,000,000. August 2- Purchased on credit: Office furniture and fixtures P200,000 Delivery Vehicle 400,000 August 5- Purchased raw materials, P400,000, and factory supplies, P150,000, for cash. August 8 - Issued all raw materials and factory supplies bought on August 5 for factory use. August 12 - Paid P120,000 on the lease of land. (Record rent as an expense) August 15 - Paid labor costs on goods completed: Direct workers P 80,000 Supervisor, janitor, security guard 30,000 August 20- Recorded 80% of goods completed.August 22- Sold 50% of finished goods for P380,000 on account. August 31 - Paid the operating costs: Staff salaries P 20,000 Light, water, etc. 10,000 Bond papers, pens, etc. 12,000PROBLEM 2 - PREPARATION OF JOURNAL, LEDGER, ADJUSTED TRIAL BALANCE & FINANCIAL STATEMENTS Assume the same information in problem 1, the following transactions for adjustments were available at month-end: 1. Depreciation of office furniture and fixtures for the month, P12,000. 2. Depreciation of delivery van for the month, P8,000. 3. Rent of P120,000 paid to lessor is a one-year contract. 4. Unpaid telephone and internet bills, P6,000
