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    Discussion and Application Word File

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    RJ 1
    The document provides 3 examples of accounting transactions involving the purchase and sale of merchandise on account, with various payments, returns, and discounts. It then outlines a comprehensive problem for the Plastic Sia company, listing beginning account balances and numerous transactions throughout the month of February 2021, including purchases and sales of merchandise, payments, returns, and withdrawals. The problem asks to prepare a worksheet using additional information provided.

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    Discussion and Application Word File

    Uploaded by

    RJ 1
    54 views4 pages
    The document provides 3 examples of accounting transactions involving the purchase and sale of merchandise on account, with various payments, returns, and discounts. It then outlines a comprehensive problem for the Plastic Sia company, listing beginning account balances and numerous transactions throughout the month of February 2021, including purchases and sales of merchandise, payments, returns, and withdrawals. The problem asks to prepare a worksheet using additional information provided.

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    Discussion and Application word file

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    The document provides 3 examples of accounting transactions involving the purchase and sale of merchandise on account, with various payments, returns, and discounts. It then outlines a comprehensive problem for the Plastic Sia company, listing beginning account balances and numerous transactions throughout the month of February 2021, including purchases and sales of merchandise, payments, returns, and withdrawals. The problem asks to prepare a worksheet using additional information provided.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    54 views4 pages

    Discussion and Application Word File

    Uploaded by

    RJ 1
    The document provides 3 examples of accounting transactions involving the purchase and sale of merchandise on account, with various payments, returns, and discounts. It then outlines a comprehensive problem for the Plastic Sia company, listing beginning account balances and numerous transactions throughout the month of February 2021, including purchases and sales of merchandise, payments, returns, and withdrawals. The problem asks to prepare a worksheet using additional information provided.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    EXAMPLE 1 (Periodic):

    ● On May 3, Jennie purchased Merchandise on account from Lisa Co., P 40,000 terms: 2/10, n/30.

    ● On May 12, Jennie Paid Lisa Co. of the October 3 purchases

    EXAMPLE 2 (Periodic):
    JUNE
    2 Vernon bought MDSE on account to BSS Co., P17,000 and was given 10% trade discount. Term: 4/10, n/30. Paid
    freight of P1,000
    6 Returned P2,00 cost of merchandise to BSS Co. as it was defective. Sold merchandise on account to Joshua for
    P10,000. term: 2/5, n/15.
    11 Paid BSS Co. in full. Received P500 cost of merchandise from Joshua due to defect.
    12 Collection in full the account of Joshua on June 6.

    EXAMPLE 3 (Perpetual):
    4 Sold merchandise on account P 15,200.00, FOB Destination, terms 2/10,n/30.
    5 Paid P 200.00 freight on April 4 sale

    FOR NON - MDSE


    JULY

    1 Mark purchased a computer for office to Jay amounting to P100,000. Terms, less: 2%, 4%, 2/10, n/20. FOB Shipping
    point. The buyer paid the freight for 2,000
    5 Mark return a defective to Jay amounting to P5,000 at list price
    MERCHANDISING BUSINESS
    Comprehensive Problem:
    Plastic Sia is the leading distributor of plastic wares in Pasig.
    Listed below are the Feb. 1, 2021 account balances of the Plastic Sia Company:

    110 Cash P 33,000


    120 Accounts Receivable 192,000
    130 Merchandise Inventory 413,000
    140 Supplies 51,000
    150 Prepaid Insurance 48,000
    160 Land 460,000
    170 Building 1,750,00
    0
    175 Accumulated Depreciation-Building P 350,000
    180 Equipment 2,310,00
    0
    185 Accumulated Depreciation-Equipment 630,000
    210 Accounts Payable 108,000
    220 Salaries Payable
    230 Mortgage Payable 2,600,000
    310 Sia, Capital 1,569,000
    320 Sia, Drawing
    330 Income Summary
    410 Sales
    420 Sales Return and Allowances
    430 Sales Discount
    510 Purchases
    520 Purchases Return and Allowances
    530 Purchase Discount
    540 Transportation In
    610 Salaries Expense
    620 Supplies Expense
    630 Insurance Expense
    640 Depreciation Expense-Building
    650 Depreciation Expense-Equipment
    660 Transportation Out
    670 Advertising Expense
    P 5,257,00 P 5,257,000
    0

    During the month of February 2021, the following transaction occurred:


    Feb. 1 Collected P113,000 from customers on account.
    Feb. 2 Paid P64,000 of accounts due less discounts of 3%
    Feb. 4 Purchased merchandise, 170,000. Terms: FOB shipping point; 3/10, n/30.
    Feb. 5 Sold merchandise on account to Gonzales Inc., P270,000. Terms: FOB shipping point; 2/10, n/30.
    Feb. 7 Paid for advertising for the month of February, P6,000.
    Feb. 7 Sold merchandise for cash P250,000
    Feb. 8 Paid the amount due from the Feb. 4 transaction.
    Feb. 9 Paid freight P4,000 for delivering merchandise last Feb. 4
    Feb. 10 Received return from Gonzales Inc., P70,000
    Feb. 12 Received payment from Gonzales Inc., less returns and discounts.
    Feb. 15 Paid salaries P51,000.
    Feb. 16 Sold merchandise on account to Ronzalez Corp., P392,000. Terms: FOB Destination; 2/10, n/30
    Feb. 18 Paid P4,000 freight charges on the sale of Feb. 16
    Feb. 19 Acquired supplies for cash, P21,000.
    Feb. 23 Received payment from Ronzales Corp., less discounts.
    Feb. 28 Sia withdrew P400,000 from the business

    Prepare the worksheet using the following information:


    a. Salaries in the amount of P51,000 have accrued on Feb. 28
    b. Insurance coverage with premiums of P2,000 has expired at month end.
    c. Depreciation on the building and on the equipment for the month amounted to P9,000 and P12,000 repecti
    d. Supplies on hand at month end amounted to P14,000.
    e. A count of the merchandise inventory on Feb. 28, 2021 amounted to P397,000.

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