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Merchandising Quizzer

The document describes transactions between Aquino Company and Villar Company during June. It includes details of merchandise sold on account, returns, payments, and freight charges. The required task is to journalize the transactions in the books of both companies using the periodic inventory method.

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416 views1 page

Merchandising Quizzer

The document describes transactions between Aquino Company and Villar Company during June. It includes details of merchandise sold on account, returns, payments, and freight charges. The required task is to journalize the transactions in the books of both companies using the periodic inventory method.

Uploaded by

jade
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Problem 1 Problem 1

Aquino Company and Villar Company engaged in the Aquino Company and Villar Company engaged in the
following transactions during the month of June. following transactions during the month of June.
Aquino Sold merchandise on account to Villar, Aquino Sold merchandise on account to Villar,
P182,000. Terms: FOB destination; 2/10, n/30. P182,000. Terms: FOB destination; 2/10, n/30.
4-Jun Freight charges amounted to P1,500. 4-Jun Freight charges amounted to P1,500.
Aquino sold merchandise on account to Villar, Aquino sold merchandise on account to Villar,
P540,000. Terms: FOB shipping point; 2/10. P540,000. Terms: FOB shipping point; 2/10.
6 n/30. Freight charges , P5,000. 6 n/30. Freight charges , P5,000.
Villar paid freight charges on the purchase of Villar paid freight charges on the purchase of
7 June 6. 7 June 6.
Aquino received returned merchandise from Aquino received returned merchandise from
Villar amounting to P12,000 from the sale of Villar amounting to P12,000 from the sale of
8 June 4. 8 June 4.
Aquino received payment from Villar for the Aquino received payment from Villar for the
9 June 4 transaction less returns and discounts. 9 June 4 transaction less returns and discounts.
Aquino paid the transaction charges on the June Aquino paid the transaction charges on the June
10 4 shipment. 10 4 shipment.
Aquino received payment from Villar for the Aquino received payment from Villar for the
13 June 6 transaction. 13 June 6 transaction.
Aquino sold merchandise on account to Villar, Aquino sold merchandise on account to Villar,
P300,000. Terms: 30 trade discount; FOB P300,000. Terms: 30 trade discount; FOB
18 shipping point; 2/10, n/30. 18 shipping point; 2/10, n/30.
Villar paid freight charges on the June 18 Villar paid freight charges on the June 18
21 transaction, P2,900. 21 transaction, P2,900.
Aquino received payment from Villar for the Aquino received payment from Villar for the
22 amount due from the transaction of June 18. 22 amount due from the transaction of June 18.

Required: Using the periodic inventory method of recording, Required: Using the periodic inventory method of recording,
journalize the above transactions in the books of Aquino journalize the above transactions in the books of Aquino
Company and Villar Company, respectively. Company and Villar Company, respectively.

Problem 2 Problem 2

Account Amount Account Amount


Ending Inventory 48,000 Ending Inventory 48,000
Rental revenue 46,500 Rental revenue 46,500
Interest expense 12,700 Interest expense 12,700
Purchase returns and allowances 10,500 Purchase returns and allowances 10,500
Maribeth, Capital beginning 114,400 Maribeth, Capital beginning 114,400
Freight-in 10,100 Freight-in 10,100
Sales Returns 12,400 Sales Returns 12,400
Sales Discounts 7,800 Sales Discounts 7,800
Selling expenses 99,400 Selling expenses 99,400
Sales 390,000 Sales 390,000
Income Tax expense 11,190 Income Tax expense 11,190
Beginning inventory 45,300 Beginning inventory 45,300
Purchases 190,000 Purchases 190,000
Purchase discounts 2,500 Purchase discounts 2,500
Administrative expenses 82,500 Administrative expenses 82,500

Based on the information above, compute the following: Based on the information above, compute the following:
a. Net Sales a. Net Sales
b. Net purchases b. Net purchases
c. Cost of Sales c. Cost of Sales
d. Gross Profit d. Gross Profit
e. Total income e. Total income
f. Total expenses f. Total expenses
g. Net income or (loss) g. Net income or (loss)
h. Capital, end h. Capital, end

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