Professional Documents
Culture Documents
It is
already close to year end and they did not have any previous bookkeeper. Your task is to record the
transactions incurred by the company for the whole year.
Prepare journal entries, post to the ledger then prepare unadjusted trial balance then adjusting entries
and lastly, adjusted trial balance. Goodluck on your work. Completing this will improve your basic
especially in journal entries. Answer CAREFULLY.
As per the Articles of Incoporation, the authorized share capital is 2,000,000 for 100,000 shares at 20
peso par value per share
Jan 1 - Bought on land and building worth 500,000 and 300,000 respectively. The building has remaining
useful life of 5 years with no residual value
March 4 Bought Sala Set for 75,000 pesos on account useful life is 5 years no residual cost
April 1 - bOught inventories 350,000 list price;trade discount of 10% and 10% on term of 2/10 n/30
April 22 bought 5000 shares from the outstanding shares for 25 each
June 21 Sold for 300,000 merchandise for half cash half on account terms 2/10 n/30
July 31 Bought fire insurance to the building for 9 months at a cost of 90,000 recorded using the
expense method
Aug 31 Bought theft insurance for 6 months at a cost of 42,000 and recorded using the asset method
Sept 16 Received 120,000 cash for inventory to be delivered 30,000 worth at every end of the end
starting the next month and was recorded using the revenue method
October 9 Sold on account 40,000 n/30
Prepare adjusting entries (Hint: there would be no clue, search for those you need to adjust at year end)