Answer Key

page 1

GENERAL JOURNAL

DATE

Jan.

PARTICULARS

1 Cash

PR

DEBIT

110 P

2 0 0 , 0 0 0 .0 0

Land

160

5 0 0 ,0 0 0 .0 0

Building

170

8 0 0 , 0 0 0 .0 0

Papasa Ako, Capital

310

CREDIT

P

1 , 5 0 0 , 0 0 0 .0 0

ni!al in"est#ent o$ %ash, land and &uilding 3 '(uip#ent Cash

180

6 0 , 0 0 0 .0 0

110

6 0 , 0 0 0 .0 0

Bought e(uip#ent in %ash 5

)*%e +upplies

10

Cash

110

3 0 , 0 0 0 .0 0 3 0 , 0 0 0 .0 0

Bought o*%e supplies $o- %ash 7

Pu Pu-%hases

510 A%%ounts Paa&le

2 0 0 ,0 0 0 .0 0

210

2 0 0 ,0 0 0 .0 0

Pu-%hased #e-%handise on a%%ount 8

A%%ounts /e%ei"a&le +ales

120

2 0 0 , 0 0 0 .0 0

10

2 0 0 , 0 0 0 .0 0

+old #e-%handise on a%%ount 

A%%ounts Paa&le Pu-%hases /etu-ns and Alloan%es

210

5 0 , 0 0 0 .0 0

520

5 0 , 0 0 0 .0 0

/etu-n o$ pu-%hased #e-%handise 10 -eight n

50 Cash

1 0 ,0 0 0 .0 0

110

1 0 , 0 0 0 .0 0

Paid $-eight %ha-ges $o- #e-%handised pu-%hased 12 A% A%%ounts Paa&le Pu-%hase is%ounts

210 530

Cash Paid an a%%ount $o- #e-%handised pu-%hased at dis%ount pe-iod

1 5 0 ,0 0 0 .0 0  , 5 0 0 .0 0 1  5 ,5 0 0 .0 0

page 2

GENERAL JOURNAL DATE

Jan.

PARTICULARS

1 P P--epaid nsu-an%e Cash

PR

DEBIT

150 P

3 , 0 0 0 .0 0

110

CREDIT

P

3 , 0 0 0 .0 0

Bought insu-an%e $o- %ash 15 Cash

110 4otes Paa&le

5 0 ,0 0 0 .0 0

220

5 0 , 0 0 0 .0 0

Bo--oed %ash and issued a note 16 +ales /etu-ns and Alloan%es A%%ounts /e%ei"a&le

20

 0 , 0 0 0 .0 0

120

 0 , 0 0 0 .0 0

e-%handise sold as -etu-ned 18 -eight )ut Cash

660

1 0 , 0 0 0 .0 0

110

1 0 , 0 0 0 .0 0

Paid $-eight %ha-ges to deli"e- #e-%handise to %usto#e1 Cash +ales is%ount A%%ounts /e%ei"a&le

110

1 5 6 , 8 0 0 .0 0

530

3 ,2 0 0 .0 0

120

1 6 0 ,0 0 0 .0 0

/e%ei"ed pa#ent $-o# a%%ount o$ %usto#e- $o- #e-%handise sold 20 Pu-%hases

510 Cash

5 0 ,0 0 0 .0 0

110

5 0 , 0 0 0 .0 0

Pu-%hased #e-%handise $o- %ash 21 Cash

110 +ales

1 0 0 , 0 0 0 .0 0

10

1 0 0 , 0 0 0 .0 0

+old #e-%handise $o- %ash 22 4otes Paa&le Cash

220

3 0 , 0 0 0 .0 0

110

3 0 , 0 0 0 .0 0

Paid the note $-o# %ash &o--oed 2 +a +ala-ies 'pense Cash Paid sala-ies o$ o-ke-s $o- %ash

610 110

1 0 , 0 0 0 .0 0 1 0 , 0 0 0 .0 0

page 3


Jan.

PARTICULARS

25 Pu-%hases

PR

5 10 P Cash

110

A%%ounts Paa&le

210

DEBIT

CREDIT

1 5 0 , 0 0 0 .0 0 P

5 0 , 0 0 0 .0 0 1 0 0 ,0 0 0 .0 0

Pu-%hased #e-%handise on a%%ount a% %ount ith donpa#ent 26 A% A%%ounts Paa&le Cash

210

5 0 , 0 0 0 .0 0

110

5 0 , 0 0 0 .0 0

Paid an a%%ount $o- #e-%hadised pu-%hased 27 A%%ounts /e%ei"a&le Cash +ales

120

8 0 , 0 0 0 .0 0

110

2 0 ,0 0 0 .0 0

10

1 0 0 , 0 0 0 .0 0

+old #e-%handise on a%%ount ith donpa#ent donpa#ent 28 Cash

110 A%%ounts /e%ei"a&le

5 0 ,0 0 0 .0 0

120

5 0 , 0 0 0 .0 0

/e%ei"ed pa#ent on a%%ount $-o# #e-%handise sold 2 Ad Ad"e-!sing 'pense Cash

670

5 , 0 0 0 .0 0

110

5 , 0 0 0 .0 0

Paid an ad"e-!se#ent $o- %ash 2 nte-est 'pense Cash

680

5 ,0 0 0 .0 0

110

5 , 0 0 0 .0 0

Paid inte-est %ha-ges 30 Papasa Ako, ithd-aals Cash ithd-e %ash $o- pe-sonal use

320 110

2 0 , 0 0 0 .0 0 2 0 , 0 0 0 .0 0

page 


1.

PARTICULARS

31 +upplies 'pense )*%e +upplies

PR

620 P

DEBIT

CREDIT

20,000.00

10

P

20,000.00

9o ad:ust o*%e supplies in"ento- 2.

31 ep-e%ia!on 'pense ; Building A%%u#ulated ep-e%ia!on ; Building

60

5,000.00

175

5,000.00

9o -e%ogni
31 ep-e%ia!on 'pense ; '(uip#ent A%%u#ulated ep-e%ia!on ; '(uip#ent

650

1,000.00

185

1,000.00

9o -e%ogni
31 nsu-an%e 'pense P-epaid nsu-an%e

630

1,000.00

150

1,000.00

9o ad:ust the -e#aining po-!on o$ p-epaid insu-an%e 5.

31 +ala-ies 'pense +ala-ies Paa&le

610

10,000.00

230

10,000.00

9o ad:ust sala-ies in%u--ed &ut not et paid 6.

31 Bad e&ts 'pense Alloan%e $o- Bad e&ts 9o -e%ogni
COMPUTATION:

1. 30,000 ; 10,000 = 20,000 2. 800,000 ; 200,000 = 600,000>10 = 60,000  1>12 = 5,000 3. 60,000 > 5 = 12,000  1>12 = 1,000 . 3,000 ; 2,000 = 1,000 5. 10,000 - Amount Gi!n

60 125

7,136.00 7,136.00

6. 00,000 ; 0,000 ; 3,200 = 356,800  2@ = ",1#$

page 1

GENERAL JOURNAL

DATE

Jan.

PARTICULARS

1

PR

DEBIT

Cash

110 P

200,000.00

Land

160

500,000.00

Building

170

800,000.00

Papasa Ako, Capital

310

CREDIT

P

1,500,000.00

ni!al in"est#ent o$ %ash, land and &uilding 3

'(uip#ent Cash

180

60,000.00

110

60,000.00

Bought e(uip#ent in %ash 5

)*%e +upplies

10

Cash

110

30,000.00 30,000.00

Bought o*%e supplies $o- %ash 7

e-%handise n"ento- A%%ounts Paa&le

130

200,000.00

210

200,000.00

Pu-%hased #e-%handise on a%%ount 8

A%%ounts /e%ei"a&le +ales

120

200,000.00

10

200,000.00

+old #e-%handise on a%%ount Cost o$ ?oods +old e-%handise n"ento-

700

100,000.00

130

100,000.00

9o -e%o-d a%tual %ost o$ #e-%handise sold 

A%%ounts Paa&le e-%handise n"ento-

210

50,000.00

130

50,000.00

/etu-n o$ pu-%hased #e-%handise 10 e-%handise n"ento- Cash Paid $-eight %ha-ges $o- #e-%handised pu-%hased

130 110

10,000.00 10,000.00


210

150,000.00

e-%handise n"ento-

130

,500.00

Cash

110

15,500.00

Paid an a%%ount $o- #e-%handised pu-%hased at dis%ount pe-iod

page 2


Jan.

PARTICULARS

1 P-epaid nsu-an%e Cash

PR

DEBIT

150 P

3,000.00

110

CREDIT

P

3,000.00

Bought insu-an%e $o- %ash 15 Cash

110 4otes Paa&le

50,000.00

220

50,000.00

Bo--oed %ash and issued a note 16 +ales /etu-ns and Alloan%es A%%ounts /e%ei"a&le

20

0,000.00

120

0,000.00

e-%handise sold as -etu-ned e-%handise n"ento- Cost o$ ?oods +old

130

20,000.00

700

20,000.00

9o -e%o-d a%tual %ost o$ #e-%handise -etu-ned 18 -eight )ut Cash

660

10,000.00

110

10,000.00

Paid $-eight %ha-ges to deli"e- #e-%handise to %usto#e1 Cash +ales is%ount A%%ounts /e%ei"a&le

110 30

156,800.00 3,200.00

120

160,000.00

/e%ei"ed pa#ent $-o# a%%ount o$ %usto#e- $o- #e-%handise sold 20 e-%handise n"ento- Cash

130

50,000.00

110

50,000.00

Pu-%hased #e-%handise $o- %ash 21 Cash

110 +ales

+old #e-%handise $o- %ash

10

100,000.00 100,000.00

Cost o$ ?oods +old

700


50,000.00

130

50,000.00

9o -e%o-d a%tual %ost o$ #e-%handise sold 22 4otes Paa&le

220

Cash

30,000.00

110

30,000.00

Paid the note $-o# %ash &o--oed 2 +ala-ies 'pense

610

Cash

10,000.00

110

10,000.00

Paid sala-ies o$ o-ke-s $o- %ash page 3


Jan.

PARTICULARS

25 e-%handise n"ento-

PR

130 P

Cash

110

A%%ounts Paa&le

210

DEBIT

CREDIT

150,000.00 P

50,000.00 100,000.00

Pu-%hased #e-%handise on a%%ount ith donpa#ent 26 A%%ounts Paa&le Cash

210

50,000.00

110

50,000.00

Paid an a%%ount $o- #e-%hadised pu-%hased 27 A%%ounts /e%ei"a&le Cash +ales

120

80,000.00

110

20,000.00

10

100,000.00

+old #e-%handise on a%%ount ith donpa#ent Cost o$ ?oods +old e-%handise n"ento-

700

50,000.00

130

50,000.00

9o -e%o-d the a%tual %ost o$ #e-%handise sold 28 Cash A%%ounts /e%ei"a&le

110 120

50,000.00

670

5,000.00

50,000.00

/e%ei"ed pa#ent on a%%ount $-o# #e-%handise sold 2 Ad"e-!sing 'pense Cash

110

5,000.00

Paid an ad"e-!se#ent $o- %ash 2 nte-est 'pense Cash Paid inte-est %ha-ges

680 110

5,000.00 5,000.00

30 Papasa Ako, ithd-aals

320

Cash

20,000.00

110

20,000.00

ithd-e %ash $o- pe-sonal use

page 


1.

PARTICULARS

31 +upplies 'pense )*%e +upplies

PR

620 P

DEBIT

CREDIT

20,000.00

10

P

20,000.00

9o ad:ust o*%e supplies in"ento- 2.

31 ep-e%ia!on 'pense ; Building A%%u#ulated ep-e%ia!on ; Building

60

5,000.00

175

5,000.00

9o -e%ogni
31 ep-e%ia!on 'pense ; '(uip#ent A%%u#ulated ep-e%ia!on ; '(uip#ent

650

1,000.00

185

1,000.00

9o -e%ogni
31 nsu-an%e 'pense P-epaid nsu-an%e

630

1,000.00

150

1,000.00

9o ad:ust the -e#aining po-!on o$ p-epaid insu-an%e 5.

31 +ala-ies 'pense +ala-ies Paa&le

610 230

10,000.00

60

7,136.00

10,000.00

9o ad:ust sala-ies in%u--ed &ut not et paid 6.

31 Bad e&ts 'pense Alloan%e $o- Bad e&ts 9o -e%ogni
COMPUTATION:

1. 30,000 ; 10,000 = 20,000

125

7,136.00

2. 800,000 ; 200,000 = 600,000>10 = 60,000  1>12 = 5,000 3. 60,000 > 5 = 12,000  1>12 = 1,000 . 3,000 ; 2,000 = 1,000 5. 10,000 - Amount Gi!n 6. 00,000 ; 0,000 ; 3,200 = 356,800  2@ = ",1#$

page 5


Jan

PARTICULARS

PR

31 +ales

DEBIT

P

Pu-%hase /etu-ns and Alloan%es Pu-%hase is%ounts e-%handise n"ento-, end

CREDIT

00,000.00 50,000.00 ,500.00 175,500.00

n%o#e +u##a-

P

630,000.00

9o %lose n%o#e +tate#ent a%%ounts ith %-edit &alan%es 31 n%o#e +u##a-

527,336.00

Pu-%hases

00,000.00

-eight n

10,000.00

+ales /etu-ns and Alloan%es

0,000.00

+ales is%ount

3,200.00

+ala-ies 'pense

20,000.00

+upplies 'pense

20,000.00

nsu-an%e 'pense ep-e%ia!on 'pense;Building

1,000.00 5,000.00

ep-e%ia!on 'pense;'(uip#ent

1,000.00

-eight )ut

10,000.00

Ad"e-!sing 'pense

5,000.00

nte-est 'pense

5,000.00

Bad e&ts 'pense

7,136.00

9o %lose n%o#e +u##a- a%%ounts ith de&it &alan%es 31 n%o#e +u##a- Papasa Ako, Capital 9o %lose n%o#e +u##a- to Capital A%%ount

102,66.00 102,66.00

31 Papasa Ako, Capital

20,000.00

Papasa Ako, ithd-aals

20,000.00

9o %lose ithd-aals to Capital A%%ount

page 5


Jan

PARTICULARS

PR

31 +ales

DEBIT

P

CREDIT

00,000.00

n%o#e +u##a-

P

00,000.00

9o %lose n%o#e +tate#ent a%%ounts ith %-edit &alan%es 31 n%o#e +u##a-

27,336.00

Cost o$ ?oods +old

180,000.00

+ales /etu-ns and Alloan%es

0,000.00

+ales is%ount

3,200.00

+ala-ies 'pense

20,000.00

+upplies 'pense

20,000.00

nsu-an%e 'pense

1,000.00

ep-e%ia!on 'pense;Building

5,000.00

ep-e%ia!on 'pense;'(uip#ent -eight )ut

1,000.00 10,000.00


5,000.00


5,000.00


7,136.00

9o %lose n%o#e +u##a- a%%ounts ith de&it &alan%es 31 n%o#e +u##a-

102,66.00

Papasa Ako, Capital

102,66.00

9o %lose n%o#e +u##a- to Capital A%%ount 31 Papasa Ako, Capital

20,000.00

Papasa Ako, ithd-aals 9o %lose ithd-aals to Capital A%%ount

20,000.00

110 - CAS%

A9' 2017 Jan.

PA/9CLA/+ 1

P/

'B9

Initial Investment

1

200,000.00

15

Borrowed cash in note

2

1

Received payment rom account

21

A9'

PA/9CLA/+

P/

C/'9

3

Bought equipment

1

60,000.00

50,000.00

5

Bought Ofce Supplies

1

30,000.00

2

156,800.00

10

Paid Freight In

1

10,000.00

Sold merchandise

2

100,000.00

12

Paid an account

1

15,500.00

27

Down payment rom account

3

20,000.00

1

Bought Prepaid Insurance

2

3,000.00

28


3

50,000.00

18

Paid Freight Out

2

10,000.00

576,800.00

20

Purchased merchandise

2

50,000.00

&',#00(00

22

Paid the note

2

30,000.00

2

Paid salaries

2

10,000.00

25

Down payment or purchases

3

50,000.00

26

Paid an account

3

50,000.00

2

Paid advertisement

3

5,000.00

2

Paid interest

3

5,000.00

30

ithdrawals

3

20,000.00

9otal Balan%e

2017 Jan.

9otal

78,500.00

120 - ACCOUNTS RECEI)ABLE

A9' 2017 Jan.

PA/9CLA/+ 8 Sold merchandise 27 Sold merchandise

P/

'B9

1

200,000.00

3

80,000.00

9otal

A9' 2017 Jan.

P/

16 Returned merchan 2 1 !ccount paid 2 28 !ccount paid

280,000.00

Balan%e

PA/9CLA/+

3

9otal

#0,000(00

C/'9 0,000.00 160,000.00 50,000.00 250,000.00

125 - ALLO*ANCE +OR BAD DEBTS

A9'

PA/9CLA/+

P/

'B9

A9' 2017 Jan.

PA/9CLA/+ 31 Recogni"ed Bad D

P/ 

C/'9 ",1#$(00

1#0 - MERC%ANDISE IN)ENTOR

A9' 2017 Jan.

PA/9CLA/+ 31

P/

'B9

A9'

PA/9CLA/+

P/

C/'9

10 - O++ICE SUPPLIES

A9' 2017 Jan.

P/

PA/9CLA/+ 5 Purchased in cash

1

Balance

'B9

A9'

30,000.00

2017 Jan.

PA/9CLA/+ 31 #o ad$ust ofce su

P/

C/'9

 20,000.00

10,000(00

150 - PREPAID INSURANCE

A9' 2017 Jan.

P/

PA/9CLA/+ 1 Purchased in cash

2

Balance

'B9

A9'

3,000.00

2017 Jan.

PA/9CLA/+

P/

C/'9

31 #o ad$ust e%pired p  1,000.00

2,000(00

1$0 - LAND

A9' 2017 Jan.

P/

PA/9CLA/+

P/

C/'9

PA/9CLA/+

P/

C/'9

1"5 - ACCUMULATED DEPRECIATION - BUILDING P/ 'B9 A9' PA/9CLA/+

P/

C/'9

PA/9CLA/+ 1 Initial Investment

1

'B9

A9'

500,000(00

1"0 - BUILDING

A9' 2017 Jan.

A9'

P/


PA/9CLA/+

1

'B9

A9'

'00,000(00

2017 Jan.

31 Recogni"ed Depre



5,000(00

1'0 - E.UIPMENT

A9' 2017 Jan.

A9'

P/

C/'9

1'5 - ACCUMULATED DEPRECIATION - E.UIPMENT P/ P/ PA/9CLA/+ 'B9 A9' PA/9CLA/+ 31 Recogni"ed Depre  2017 Jan.

C/'9


P/ 1

'B9

A9'

PA/9CLA/+

$0,000(00

1,000(00

220 - NOTES PAABLE

A9' 2017 Jan.

PA/9CLA/+

P/

22 Paid note

'B9

A9'

30,000.00

2017 Jan.

PA/9CLA/+

P/

C/'9

15 Borrowed cash in n 1

50,000.00

Balance

20,000.00

2#0 - SALARIES PAABLE

A9'

PA/9CLA/+

P/

'B9

A9' 2017 Jan.

PA/9CLA/+

P/

C/'9

31 or'ers not yet pa 

10,000(00

#10 - PAPASA A/O, CAPITAL

A9' 2017 Jan.

PA/9CLA/+

P/

31 ithdrawal to (api 5

'B9

A9'

20,000.00

2017 Jan.


P/

C/'9

1

1,500,000.00

Income Summary t 5 #otal

102,66.00

Balance

1,602,66.00

1,5'2,$$(00

#20 - PAPASA A/O, *IT%DRA*ALS

A9' 2017 Jan.

PA/9CLA/+ 30 ithdrew cash or

P/ 3

'B9

A9'

20,000.00

Balance

2017 Jan.

PA/9CLA/+

P/

31 #o close withdrawa 5

C/'9 20,000.00

0(00

##0 - INCOME SUMMAR

A9' 2017 Jan.

PA/9CLA/+ 31 #o close credits

#o close Income S

P/

'B9

A9'

5

527,336.00

5

102,66.00

2017 Jan.

PA/9CLA/+ 31 #o close de)its

P/ 5

#otal

C/'9 630,000.00 102,66.00

Balance

0(00

10 - SALES

A9' 2017 Jan.

PA/9CLA/+ 31 #o close Sales

P/ 5

'B9 00,000.00

A9' 2017 Jan.

PA/9CLA/+ 8 Sold &erchandise 21 Sold &erchandise

P/

C/'9

1

200,000.00

2

100,000.00

#0 - SALES DISCOUNTS

A9' 2017 Jan.

PA/9CLA/+ 1 Discounted

P/ 2

'B9

A9'

3,200.00

Balance

2017 Jan.

PA/9CLA/+

P/

31 #o close Sales Disc 5

C/'9 3,200.00

0(00

510 - PURC%ASES

A9' 2017 Jan.

PA/9CLA/+

P/

'B9

A9'

7 Purchased &ercha 20 Purchased &ercha

1

200,000.00

2

50,000.00

25 Purchased &ercha

3

150,000.00

#otal

2017 Jan.

PA/9CLA/+

P/

31 #o close Purchases 5

C/'9 00,000.00

00,000.00

Balance

0(00

520 - PURC%ASES RETURNS AND ALLO*ANCES P/ P/ A9' PA/9CLA/+ 'B9 A9' PA/9CLA/+ 31 #o close Purchases 5  Returned &erchan 1 50,000.00 2017 Jan. 2017 Jan. Balance

C/'9 50,000.00 0(00

5#0 - PURC%ASES DISCOUNTS

A9' 2017 Jan.

PA/9CLA/+

P/

31 #o close Purchases 5

'B9

A9'

,500.00

2017 Jan.

PA/9CLA/+ 12 Discounted

P/ 1

Balance

C/'9 ,500.00 0(00

50 - +REIG%T IN

A9' 2017 Jan.

PA/9CLA/+

P/

10 Paid reight charge 1

'B9

A9'

10,000.00

Balance

2017 Jan.

PA/9CLA/+ 31 #o close reight in

P/ 5

C/'9 10,000.00

0(00

$10 - SALARIES EPENSE

A9' 2017 Jan.

PA/9CLA/+

P/

2 Paid wor'ers 2 31 Recogni"ed salarie 

'B9 10,000.00 10,000.00

A9' 2017 Jan.

PA/9CLA/+ 31 #o close Salaries *

P/ 5

C/'9 20,000.00

2017 Jan.

31 Insurance e%pired



1,000.00

Balance

2017 Jan.

31 #o close Insurance

5

1,000.00

0(00

$0 - DEPRECIATION EPENSE - BUILDING P/ P/ A9' PA/9CLA/+ 'B9 A9' PA/9CLA/+ 31 Recogni"ed deprec  31 #o close Depreciat 5 5,000.00 2017 Jan. 2017 Jan. Balance

C/'9 5,000.00

0(00

$50 - DEPRECIATION EPENSE - E.UIPMENT P/ P/ A9' PA/9CLA/+ 'B9 A9' PA/9CLA/+ 31 Recogni"ed deprec  31 #o close Depreciat 5 1,000.00 2017 Jan. 2017 Jan. Balance

C/'9 1,000.00

0(00

$$0 - +REIG%T OUT

A9' 2017 Jan.

PA/9CLA/+

P/


'B9

A9'

10,000.00

Balance

2017 Jan.

PA/9CLA/+

P/

31 #o close reight out 5

C/'9 10,000.00

0(00

$"0 - AD)ERTISING EPENSE

A9' 2017 Jan.

PA/9CLA/+

P/

2 Paid advertisemen 3

'B9

A9'

5,000.00

Balance

2017 Jan.

PA/9CLA/+ 31 #o close !dvertisi

P/ 5

C/'9 5,000.00

0(00

$'0 - INTEREST EPENSE

A9' 2017 Jan.

PA/9CLA/+ 2 Paid interest

P/ 3

'B9

A9'

5,000.00

Balance

2017 Jan.

PA/9CLA/+ 31 #o close Interest *

P/ 5

C/'9 5,000.00

0(00

$&0 - BAD DEBTS EPENSE

A9' 2017 Jan.

PA/9CLA/+ 31 Recogni"ed Bad D Balance

P/ 

'B9

A9'

7,136.00 0(00

2017 Jan.

PA/9CLA/+

P/

31 #o close Bad De)ts 5

C/'9 7,136.00

110 - CAS%

A9' 2017 Jan.

PA/9CLA/+ 1

P/

'B9

Initial Investment

1

200,000.00

15

Borrowed cash in note

2

1


21

A9'

PA/9CLA/+

P/

C/'9

3

Bought equipment

1

60,000.00

50,000.00

5

Bought Ofce Supplies

1

30,000.00

2

156,800.00

10

Paid Freight In

1

10,000.00

Sold merchandise

2

100,000.00

12

Paid an account

1

15,500.00

27

Down payment rom account

3

20,000.00

1

Bought Prepaid Insurance

2

3,000.00

28


3

50,000.00

18

Paid Freight Out

2

10,000.00

576,800.00

20

Purchased merchandise

2

50,000.00

&',#00(00

22

Paid the note

2

30,000.00

2

Paid salaries

2

10,000.00

25

Down payment or purchases

3

50,000.00

26

Paid an account

3

50,000.00

2

Paid advertisement

3

5,000.00

2

Paid interest

3

5,000.00

30

ithdrawals

3

20,000.00

9otal Balan%e

2017 Jan.

9otal

78,500.00

120 - ACCOUNTS RECEI)ABLE

A9' 2017 Jan.

PA/9CLA/+ 8 Sold merchandise 27 Sold merchandise

P/

'B9

1

200,000.00

3

80,000.00

9otal

A9' 2017 Jan.

P/

16 Returned merchan 2 1 !ccount paid 2 28 !ccount paid

280,000.00

Balan%e

PA/9CLA/+

3

9otal

#0,000(00

C/'9 0,000.00 160,000.00 50,000.00 250,000.00

125 - ALLO*ANCE +OR BAD DEBTS

A9'

PA/9CLA/+

P/

'B9

A9' 2017 Jan.

PA/9CLA/+ 31 Recogni"ed Bad D

P/ 

C/'9 ",1#$(00

1#0 - MERC%ANDISE IN)ENTOR

A9' 2017 Jan. 2017 Jan. 2017 Jan.

PA/9CLA/+

P/

'B9

A9'

7 Purchased &ercha 1 10 Paid reight charge 1

200,000.00

2017 Jan.

10,000.00

2017 Jan.

16 Returned &erchan 2 20 Purchased &ercha 2

20,000.00

2017 Jan.

25 Purchased &ercha

#otal Balance

3

50,000.00 150,000.00 30,000.00 1"5,500(00

PA/9CLA/+

P/

C/'9

8 Sold &erchandise  Returned &erchan

1

100,000.00

1

50,000.00

12 Discounted

1

,500.00

21 Sold &erchandise 27 Sold &erchandise #otal

2 3

50,000.00 50,000.00 25,500.00

10 - O++ICE SUPPLIES

A9' 2017 Jan.

P/


1

Balance

'B9

A9'

30,000.00

2017 Jan.

PA/9CLA/+ 31 #o ad$ust ofce su

P/

C/'9

 20,000.00

10,000(00

150 - PREPAID INSURANCE

A9' 2017 Jan.

P/

PA/9CLA/+ 1 Purchased in cash

2

Balance

'B9

A9'

3,000.00

2017 Jan.

PA/9CLA/+

P/

C/'9

31 #o ad$ust e%pired p  1,000.00

2,000(00

1$0 - LAND

A9' 2017 Jan.

P/

PA/9CLA/+

P/

C/'9

PA/9CLA/+

P/

C/'9

1"5 - ACCUMULATED DEPRECIATION - BUILDING P/ 'B9 A9' PA/9CLA/+

P/

C/'9


1

'B9

A9'

500,000(00

1"0 - BUILDING

A9' 2017 Jan.

A9'

P/


PA/9CLA/+

1

'B9

A9'

'00,000(00

2017 Jan.

31 Recogni"ed Depre



5,000(00

1'0 - E.UIPMENT

A9' 2017 Jan.

A9'

P/

C/'9

1'5 - ACCUMULATED DEPRECIATION - E.UIPMENT P/ P/ PA/9CLA/+ 'B9 A9' PA/9CLA/+ 31 Recogni"ed Depre  2017 Jan.

C/'9


P/ 1

'B9

A9'

PA/9CLA/+

$0,000(00

1,000(00

220 - NOTES PAABLE

A9' 2017 Jan.

PA/9CLA/+

P/

22 Paid note

'B9

A9'

30,000.00

2017 Jan.

PA/9CLA/+

P/

C/'9

15 Borrowed cash in n 1

50,000.00

Balance

20,000.00

2#0 - SALARIES PAABLE

A9'

PA/9CLA/+

P/

'B9

A9' 2017 Jan.

PA/9CLA/+

P/

C/'9

31 or'ers not yet pa 

10,000(00

#10 - PAPASA A/O, CAPITAL

A9' 2017 Jan.

PA/9CLA/+

P/

31 ithdrawal to (api 5

'B9

A9'

20,000.00

2017 Jan.


P/

C/'9

1

1,500,000.00

Income Summary t 5 #otal

102,66.00

Balance

1,602,66.00

1,5'2,$$(00

#20 - PAPASA A/O, *IT%DRA*ALS

A9' 2017 Jan.

PA/9CLA/+ 30 ithdrew cash or

P/ 3

'B9

A9'

20,000.00

Balance

2017 Jan.

PA/9CLA/+

P/

31 #o close withdrawa 5

C/'9 20,000.00

0(00

##0 - INCOME SUMMAR

A9' 2017 Jan.

PA/9CLA/+ 31 #o close credits

#o close Income S

P/

'B9

A9'

5

27,336.00

5

102,66.00

2017 Jan.

PA/9CLA/+ 31 #o close de)its

P/ 5

#otal

C/'9 00,000.00 102,66.00

Balance

0(00

10 - SALES

A9' 2017 Jan.

PA/9CLA/+ 31 #o close Sales

P/ 5

'B9 00,000.00

A9' 2017 Jan.

PA/9CLA/+ 8 Sold &erchandise 21 Sold &erchandise

P/

C/'9

1

200,000.00

2

100,000.00

#0 - SALES DISCOUNTS

A9' 2017 Jan.

PA/9CLA/+ 1 Discounted

P/ 2

'B9

A9'

3,200.00

Balance

2017 Jan.

PA/9CLA/+

P/

31 #o close Sales Disc 5

C/'9 3,200.00

0(00

510 - PURC%ASES

A9'

A9'

PA/9CLA/+

PA/9CLA/+

P/

PA/9CLA/+

P/

C/'9

520 - PURC%ASES RETURNS AND ALLO*ANCES P/ 'B9 A9' PA/9CLA/+

P/

C/'9

PA/9CLA/+

P/

C/'9

PA/9CLA/+

P/

C/'9

PA/9CLA/+

P/

C/'9

'B9

A9'

5#0 - PURC%ASES DISCOUNTS

A9'

PA/9CLA/+

P/

'B9

A9'

50 - +REIG%T IN

A9'

PA/9CLA/+

P/

'B9

A9'

$10 - SALARIES EPENSE

A9' 2017 Jan.

PA/9CLA/+

P/

2 Paid wor'ers 2 31 Recogni"ed salarie 

#otal

'B9 10,000.00 10,000.00 20,000.00

A9' 2017 Jan.

31 #o close Salaries *

5

20,000.00

2017 Jan.

31 Insurance e%pired



1,000.00

Balance

2017 Jan.

31 #o close Insurance

5

1,000.00

0(00

$0 - DEPRECIATION EPENSE - BUILDING P/ P/ A9' PA/9CLA/+ 'B9 A9' PA/9CLA/+ 31 Recogni"ed deprec  31 #o close Depreciat 5 5,000.00 2017 Jan. 2017 Jan. Balance

C/'9 5,000.00

0(00

$50 - DEPRECIATION EPENSE - E.UIPMENT P/ P/ A9' PA/9CLA/+ 'B9 A9' PA/9CLA/+ 31 Recogni"ed deprec  31 #o close Depreciat 5 1,000.00 2017 Jan. 2017 Jan. Balance

C/'9 1,000.00

0(00

$$0 - +REIG%T OUT

A9' 2017 Jan.

PA/9CLA/+

P/


'B9

A9'

10,000.00

Balance

2017 Jan.

PA/9CLA/+

P/

31 #o close reight out 5

C/'9 10,000.00

0(00

$"0 - AD)ERTISING EPENSE

A9' 2017 Jan.

PA/9CLA/+

P/

2 Paid advertisemen 3

'B9

A9'

5,000.00

Balance

2017 Jan.

PA/9CLA/+ 31 #o close !dvertisi

P/ 5

C/'9 5,000.00

0(00

$'0 - INTEREST EPENSE

A9' 2017 Jan.

PA/9CLA/+ 2 Paid interest

P/ 3

'B9

A9'

5,000.00

Balance

2017 Jan.

PA/9CLA/+ 31 #o close Interest *

P/ 5

C/'9 5,000.00

0(00

$&0 - BAD DEBTS EPENSE

A9' 2017 Jan.

PA/9CLA/+ 31 Recogni"ed Bad D Balance

P/ 

'B9

A9'

7,136.00 0(00

2017 Jan.

PA/9CLA/+

P/

31 #o close Bad De)ts 5

C/'9 7,136.00

PAPASA A/O COMPAN TRIAL BALANCE Jnu3 #1, 201" CODE

ACCOUNTS

DEBIT

110 Cash

8,300.00


30,000.00

CREDIT

125 Alloan%e $o- Bad e&ts 130 e-%handise n"ento- 10 )*%e +upplies 150 P-epaid nsu-an%e

30,000.00 3,000.00

160 Land

500,000.00

170 Building

800,000.00

175 A%%u#ulated ep-e%ia!on  Building 180 '(uip#ent

60,000.00

185 A%%u#ulated ep-e%ia!on  '(uip#ent 210 A%%ounts Paa&le

50,000.00

220 4otes Paa&le

20,000.00

230 +ala-ies Paa&le 310 Papasa Ako, Capital 320 Papasa Ako, ithd-aals

1,500,000.00 20,000.00

330 n%o#e +u##a- 10 +ales 20 +ales /etu-ns and Alloan%es 30 +ales is%ounts 510 Pu-%hases

00,000.00 0,000.00 3,200.00 00,000.00

520 Pu-%hases /etu-ns and Alloan%es

50,000.00

530 Pu-%hases is%ounts

,500.00

50 -eight n

10,000.00

610 +ala-ies 'pense

10,000.00

620 +upplies 'pense 630 nsu-an%e 'pense 60 ep-e%ia!on 'pense  Building 650 ep-e%ia!on 'pense  '(uip#ent 660 -eight )ut

10,000.00

670 Ad"e-!sing 'pense

5,000.00

680 nte-est 'pense

5,000.00

60 Bad e&ts 'pense 700 Cost o$ ?oods +old TOTALS

2,02,500(00

2,02,500(00

PAPASA A/O COMPAN ADJUSTED TRIAL BALANCE Jnu3 #1, 201" CODE

ACCOUNTS

DEBIT

110 Cash

8,300.00


30,000.00

125 Alloan%e $o- Bad e&ts

CREDIT

7,136.00

130 e-%handise n"ento- 10 )*%e +upplies 150 P-epaid nsu-an%e

10,000.00 2,000.00

160 Land

500,000.00

170 Building

800,000.00


5,000.00 60,000.00

185 A%%u#ulated ep-e%ia!on  '(uip#ent

1,000.00


50,000.00

220 4otes Paa&le

20,000.00

230 +ala-ies Paa&le

10,000.00

310 Papasa Ako, Capital 320 Papasa Ako, ithd-aals

1,500,000.00 20,000.00

330 n%o#e +u##a- 10 +ales 20 +ales /etu-ns and Alloan%es 30 +ales is%ounts 510 Pu-%hases

00,000.00 0,000.00 3,200.00 00,000.00

520 Pu-%hases /etu-ns and Alloan%es

50,000.00

530 Pu-%hases is%ounts

,500.00

50 -eight n

10,000.00

610 +ala-ies 'pense

20,000.00

620 +upplies 'pense

20,000.00

630 nsu-an%e 'pense

1,000.00

60 ep-e%ia!on 'pense  Building

5,000.00

650 ep-e%ia!on 'pense  '(uip#ent

1,000.00

660 -eight )ut

10,000.00


5,000.00


5,000.00

60 Bad e&ts 'pense

7,136.00

700 Cost o$ ?oods +old TOTALS

2,0",$#$(00

2,0",$#$(00

PAPASA A/O COMPAN POST CLOSING TRIAL BALANCE Jnu3 #1, 201" CODE

ACCOUNTS

DEBIT

110 Cash

8,300.00


30,000.00


7,136.00 175,500.00 10,000.00 2,000.00

160 Land

500,000.00

170 Building

800,000.00


CREDIT

5,000.00 60,000.00


1,000.00


50,000.00

220 4otes Paa&le

20,000.00


10,000.00

310 Papasa Ako, Capital TOTALS

1,582,66.00 1,$"5,'00(00

1,$"5,'00(00

PAPASA A/O COMPAN TRIAL BALANCE Jnu3 #1, 201" CODE

ACCOUNTS

DEBIT

110 Cash

8,300.00


30,000.00

CREDIT


175,500.00 30,000.00 3,000.00

160 Land

500,000.00

170 Building

800,000.00


60,000.00

185 A%%u#ulated ep-e%ia!on  '(uip#ent 210 A%%ounts Paa&le

50,000.00

220 4otes Paa&le

20,000.00

230 +ala-ies Paa&le 310 Papasa Ako, Capital 320 Papasa Ako, ithd-aals

1,500,000.00 20,000.00

330 n%o#e +u##a- 10 +ales 20 +ales /etu-ns and Alloan%es 30 +ales is%ounts

00,000.00 0,000.00 3,200.00

510 Pu-%hases 520 Pu-%hases /etu-ns and Alloan%es 530 Pu-%hases is%ounts 50 -eight n 610 +ala-ies 'pense

10,000.00

620 +upplies 'pense 630 nsu-an%e 'pense 60 ep-e%ia!on 'pense  Building 650 ep-e%ia!on 'pense  '(uip#ent 660 -eight )ut

10,000.00


5,000.00


5,000.00

60 Bad e&ts 'pense 700 Cost o$ ?oods +old TOTALS

180,000.00 1,&"0,000(00

1,&"0,000(00

PAPASA A/O COMPAN ADJUSTED TRIAL BALANCE Jnu3 #1, 201" CODE

ACCOUNTS

DEBIT

110 Cash

8,300.00


30,000.00


7,136.00 175,500.00 10,000.00 2,000.00

160 Land

500,000.00

170 Building

800,000.00


CREDIT

5,000.00 60,000.00


1,000.00


50,000.00

220 4otes Paa&le

20,000.00


10,000.00

310 Papasa Ako, Capital 320 Papasa Ako, ithd-aals

1,500,000.00 20,000.00

330 n%o#e +u##a- 10 +ales 20 +ales /etu-ns and Alloan%es 30 +ales is%ounts

00,000.00 0,000.00 3,200.00

510 Pu-%hases 520 Pu-%hases /etu-ns and Alloan%es 530 Pu-%hases is%ounts 50 -eight n 610 +ala-ies 'pense

20,000.00

620 +upplies 'pense

20,000.00

630 nsu-an%e 'pense

1,000.00

60 ep-e%ia!on 'pense  Building

5,000.00

650 ep-e%ia!on 'pense  '(uip#ent

1,000.00

660 -eight )ut

10,000.00


5,000.00


5,000.00

60 Bad e&ts 'pense

7,136.00

700 Cost o$ ?oods +old

180,000.00

TOTALS

1,&&#,1#$(00

1,&&#,1#$(00

PAPASA A/O COMPAN POST CLOSING TRIAL BALANCE Jnu3 #1, 201" CODE

ACCOUNTS

DEBIT

110 Cash

8,300.00


30,000.00


7,136.00 175,500.00 10,000.00 2,000.00

160 Land

500,000.00

170 Building

800,000.00


CREDIT

5,000.00 60,000.00


1,000.00


50,000.00

220 4otes Paa&le

20,000.00


10,000.00

310 Papasa Ako, Capital TOTALS

1,582,66.00 1,$"5,'00(00

1,$"5,'00(00

PAPASA A/O COMPAN INCOME STATEMENT +o t4! mont4 !n! Jnu3 #1, 201"

4et +ales

1

LessD Cost o$ ?oods +old

2



?-oss P-oEt LessD 'penses

356,800.00



176,800.00

#

4et n%o#e

180,000.00 7,136.00

6

102,$$(00



00,000.00

Not!7 to +inn8i9 Stt!m!nt7: Not! 1 - NET SALES

+ales LessD +ales /etu-ns and Alloan%es +ales is%ounts

 0,000.00 3,200.00

4'9 +AL'+

3,200.00 6

#5$,'00(00

Not! 2 - COST O+ GOODS SOLD

e-%handise n"ento-, &eg

;

Pu-%hases



-eight n LessD Pu-%hase /etu-ns and Alloan%es Pu-%hase is%ounts e-%handise A"aila&le $o- +ale

10,000.00  50,000.00 ,500.00

5,500.00 

LessD e-%handise n"ento-, end C)+9 ) ?))+ +)L

00,000.00

355,500.00 175,500.00

6

1'0,000(00



20,000.00

Not! # - EPENSES

+ala-ies 'pense +upplies 'pense

20,000.00


1,000.00

ep-e%ia!on 'pense  Building

5,000.00

ep-e%ia!on 'pense  '(uip#ent

1,000.00

-eight )ut

10,000.00


5,000.00


5,000.00


7,136.00

'FP'4+'+

6

",1#$(00

PAPASA A/O COMPAN STATEMENT O+ C%ANGES IN O*NERS E.UIT +o t4! mont4 !n! Jnu3 #1, 201"

Papasa Ako, Capital Beg



1,500,000.00

Addi!onal n"est#ent

;

4et n%o#e

102,66.00

LessD ithd-aals

20,000.00

P;7 A
6

1,5'2,$$(00

PAPASA A/O COMPAN STATEMENT O+ CAS% +LO*S +o t4! mont4 !n! Jnu3 #1, 201" C74 +9o=7 >om O;!?n@ A8?i?!7: /e%ei"ed pa#ent $-o# a%%ount



156,800.00

/e%ei"ed pa#ent $-o# a%%ount

50,000.00

on pa#ent $-o# a%%ount

20,000.00 100,000.00

+old #e-%handise Paid an a%%ount

G15,500.00

Paid an a%%ount

G50,000.00

on pa#ent $o- pu-%hases

G50,000.00

Pu-%hased #e-%handise

G50,000.00

Paid -eight n

G10,000.00

Paid -eight )ut

G10,000.00

Bought )*%e +upplies

G30,000.00 G3,000.00

Bought P-epaid nsu-an%e

G10,000.00

Paid sala-ies Paid ad"e-!se#ent

G5,000.00

Paid inte-est

G5,000.00 

N!t C74 ;oi! u7! in 3 O;!?n@ A8?i?!7

G1,700.00

C74 +9o=7 >om In!7?n@ A8?i?!7: Bought e(uip#ent



G60,000.00 G60,000.00

N!t C74 ;oi! u7! in 3 In!7?n@ A8?i?!7 C74 +9o=7 >om +inn8in@ A8?i?!7: ni!al n"est#ent Bo--oed %ash in note



200,000.00 50,000.00

Paid the note

G30,000.00

ithd-aals

G20,000.00 200,000.00

N!t C74 ;oi! u7! in 3 +inn8in@ A8?i?!7 N!t In8!7!D!8!7! in C74

AddD Cash Balan%e Beginning

6

&',#00(00

;

C74 B9n8! Enin@

6

&',#00(00



8,300.00

PAPASA A/O COMPAN STATEMENT O+ +INANCIAL POSITION A7 o> Jnu3 #1, 201" ASSETS Cu!nt A77!t7:

Cash A%%ounts /e%ei"a&le



LessD Alloan%e $o- Bad e&ts

30,000.00 7,136.00

22,86.00


175,500.00

)*%e +upplies

10,000.00

P-epaid nsu-an%e

2,000.00

Tot9 Cu!nt A77!t7

6

#0',$$(00



500,000.00

Non Cu!nt A77!t7:

Land Building



LessD A%%u#ulated ep-e%ia!on ; Building '(uip#ent

800,000.00 5,000.00



LessD A%%u#ulated ep-e%ia!on ; '(uip#ent

75,000.00

60,000.00 1,000.00

5,000.00

Tot9 Non Cu!nt A77!t7



1,35,000.00

TOTAL ASSETS

6

1,$$2,$$(00



80,000.00

Tot9 O=n!7 Euit3



1,582,66.00

TOTAL LIABILITIES AND O*NERS E.UIT



1,$$2,$$(00

LIABILITIES

A%%ounts Paa&le



50,000.00

4otes Paa&le

20,000.00

+ala-ies Paa&le

10,000.00

Tot9 Lii9i?!7 O*NERS E.UIT

Papasa Ako, Capital Gend



1,582,66.00

PAPASA A/O COMPAN INCOME STATEMENT +o t4! mont4 !n! Jnu3 #1, 201"

4et +ales



1

356,800.00

LessD Cost o$ ?oods +old

180,000.00

?-oss P-oEt LessD 'penses



176,800.00

2

4et n%o#e

7,136.00

6

102,$$(00



00,000.00

Not!7 to +inn8i9 Stt!m!nt7: Not! 1 - NET SALES

+ales LessD +ales /etu-ns and Alloan%es +ales is%ounts 4'9 +AL'+

 0,000.00 3,200.00

3,200.00 6

#5$,'00(00



20,000.00

Not! 2 - EPENSES

+ala-ies 'pense +upplies 'pense

20,000.00


1,000.00

ep-e%ia!on 'pense  Building

5,000.00

ep-e%ia!on 'pense  '(uip#ent

1,000.00

-eight )ut

10,000.00


5,000.00


5,000.00


7,136.00

'FP'4+'+

6

",1#$(00

PAPASA A/O COMPAN STATEMENT O+ C%ANGES IN O*NERS E.UIT +o t4! mont4 !n! Jnu3 #1, 201"

Capital, Beg



1,500,000.00

Addi!onal n"est#ent

;

4et n%o#e

102,66.00

LessD ithd-aals

20,000.00

C;it9, En

6

1,5'2,$$(00

PAPASA A/O COMPAN STATEMENT O+ CAS% +LO*S +o t4! mont4 !n! Jnu3 #1, 201" C74 +9o=7 >om O;!?n@ A8?i?!7: /e%ei"ed pa#ent $-o# a%%ount



156,800.00

/e%ei"ed pa#ent $-o# a%%ount

50,000.00

on pa#ent $-o# a%%ount

20,000.00 100,000.00

+old #e-%handise Paid an a%%ount

G15,500.00

Paid an a%%ount

G50,000.00

on pa#ent $o- pu-%hases

G50,000.00

Pu-%hased #e-%handise

G50,000.00

Paid -eight n

G10,000.00

Paid -eight )ut

G10,000.00

Bought )*%e +upplies

G30,000.00 G3,000.00

Bought P-epaid nsu-an%e

G10,000.00

Paid sala-ies Paid ad"e-!se#ent

G5,000.00

Paid inte-est

G5,000.00 

N!t C74 ;oi! u7! in 3 O;!?n@ A8?i?!7

G1,700.00

C74 +9o=7 >om In!7?n@ A8?i?!7: Bought e(uip#ent



G60,000.00 G60,000.00

N!t C74 ;oi! u7! in 3 In!7?n@ A8?i?!7 C74 +9o=7 >om +inn8in@ A8?i?!7: ni!al n"est#ent Bo--oed %ash in note



200,000.00 50,000.00

Paid the note

G30,000.00

ithd-aals

G20,000.00 200,000.00

N!t C74 ;oi! u7! in 3 +inn8in@ A8?i?!7 N!t In8!7!D!8!7! in C74

AddD Cash Balan%e Beginning

6

&',#00(00

;

Answer Key

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