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    Here Are The Steps That Needs Be Done

    Uploaded by

    Alyanna Vianca Angeles
    The document provides instructions for journalizing, posting, and preparing a trial balance for a business. It includes a chart of accounts and transactions for Alive General Merchandise for the month of October 2020. The steps are to journalize each transaction, post the journal entries to ledger accounts, compute the account balances, and prepare a trial balance.

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    Here Are The Steps That Needs Be Done

    Uploaded by

    Alyanna Vianca Angeles
    31 views14 pages
    The document provides instructions for journalizing, posting, and preparing a trial balance for a business. It includes a chart of accounts and transactions for Alive General Merchandise for the month of October 2020. The steps are to journalize each transaction, post the journal entries to ledger accounts, compute the account balances, and prepare a trial balance.

    Original Description:

    Accounting

    Original Title

    ACTIVITY 1

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    The document provides instructions for journalizing, posting, and preparing a trial balance for a business. It includes a chart of accounts and transactions for Alive General Merchandise for the month of October 2020. The steps are to journalize each transaction, post the journal entries to ledger accounts, compute the account balances, and prepare a trial balance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    31 views14 pages

    Here Are The Steps That Needs Be Done

    Uploaded by

    Alyanna Vianca Angeles
    The document provides instructions for journalizing, posting, and preparing a trial balance for a business. It includes a chart of accounts and transactions for Alive General Merchandise for the month of October 2020. The steps are to journalize each transaction, post the journal entries to ledger accounts, compute the account balances, and prepare a trial balance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 14

    DIRECTION: Use the following CHART OF ACCOUNTS for Journalizing, Posting and Trial

    Balance. Perpetual Method will be used.

    Here are the steps that needs be done:

    1. Read the transactions carefully, analyze, then journalize each. Be careful with the dates,
    account names and amount. Then review again your journal entries.

    2. Post the journal entries. Carefully transfer the amounts to their corresponding account ledger
    and the correct debit and credit side.

    3. After completing the posting, do the necessary computations until you come up with each
    account balances.

    4. Prepare the Trial Balance.

    Cod Account Title Code Account Title


    e

    10  CASH  61 SALES DISCOUNT

    11  ACCOUNTS RECEIVABLE 62 SALES RETURNS AND ALLOWANCES

    12  NOTES RECEIVABLE  70 COST OF GOODS SOLD

    13  MERCHANDISE INVENTORY 71 PURCHASES

    20  OFFICE EQUIPMENT  72 FREIGHT IN

    21  FURNITURE & FIXTURES 73 PURCHASE DISCOUNTS

    30  ACCOUNTS PAYABLE 74 PURCHASE RETURNS AND ALLOWANCES

    50  BUHAY, CAPITAL  75 FREIGHT OUT

    51  BUHAY, PERSONAL  76 SALARIES EXPENSE

    52  INCOME SUMMARY  77 UTILITIES EXPENSE

    60  SALES  78 ADVERTISING EXPENSE

    Mr. BUHAY operates a business named “ALIVE GENERAL MERCHANDISE”. He provided you
    with the following transaction for the month of October, 2020.
    October 1 Mr. Buhay made an initial investment in the company for 1,448,500 in cash.
    October 3 Purchased Goods worth P250,000 on account terms 2/10, n/30 from NABUBUHAY
    October 5 Sold the Goods he bought on October 3 at 475,000 in cash to MABUHAY. Cost:
    P230,000.
    October 8 MABUHAY founded out that P95,000 worth of goods bought from BUHAY were
    defective. Cost of which is P50,000.
    October 9 Mr. Buhay paid its account on October 3
    October 12 Purchased goods from NABUHAY P335,000, terms 3/5, 2/8, 1/12, n/30 and later
    sold to NAMUMUHAY at P670,000 on account, terms 2/10, n/30
    October 15 Paid the following Expenses: Salaries- P 65,000, Advertising- P45,500 and freight
    P37,500.
    October 16 Namumuhay paid 40% of its account.
    October 21 Purchased Goods worth P430,000 in Cash from LIVING and Paid Freight worth
    P5,500
    October 23 Mr. Buhay returned P85,400 worth of damaged goods to Living.
    October 24 Mr. Buhay has taken cash from the business worth P200,000.
    October 26 Paid Utilities worth P45,000.
    October 28 Purchased Office Equipment worth P340,500 and Tables and Chairs worth
    P225,400 in cash.
    October 31 Purchased Goods worth P75,800 in cash and later sold to customer at P150,000 in
    cash.
    Journal entries:
    2021 page 1
    Date Particular/Explanation P. R. Debit Credit
    OCT

    page 2
    Date Particular/Explanation P. R. Debit Credit

    Page 3
    Date Particulars/Explanation P. R. Debit Credit
    2. Post the transaction to Ledger / T-Accounts
    ________________________

    Date Explanation J-R Debit Credit Balance


    ________________________
    Date Explanation J-R Debit Credit Balance
    ________________________
    Date Explanation J-R Debit Credit Balance

    ________________________
    Date Explanation J-R Debit Credit Balance
    ________________________
    Date Explanation J-R Debit Credit Balance

    ________________________

    Date Explanation J-R Debit Credit Balance

    ________________________
    Date Explanation J-R Debit Credit Balance
    ________________________
    Date Explanation J-R Debit Credit Balance

    ________________________
    Date Explanation J-R Debit Credit Balance

    ________________________
    Date Explanation J-R Debit Credit Balance
    ________________________
    Date Explanation J-R Debit Credit Balance

    ________________________
    Date Explanation J-R Debit Credit Balance

    ________________________
    Date Explanation J-R Debit Credit Balance
    ________________________
    Date Explanation J-R Debit Credit Balance

    ________________________
    Date Explanation J-R Debit Credit Balance

    ________________________
    Date Explanation J-R Debit Credit Balance

    ________________________
    Date Explanation J-R Debit Credit Balance

    ________________________
    Date Explanation J-R Debit Credit Balance

    ________________________
    Date Explanation J-R Debit Credit Balance
    ________________________________________
    ________________________________________
    ________________________________________

    Account Name Debit Credit


    CASH
    ACCOUNTS RECEIVABLE

    NOTES RECEIVABLE
    MERCHANDISE INVENTORY

    OFFICE EQUIPMENT
    FURNITURE & FIXTURES

    ACCOUNTS PAYABLE
    BUHAY, CAPITAL

    BUHAY, PERSONAL
    INCOME SUMMARY

    SALES
    SALES DISCOUNT

    SALES RETURNS AND ALLOWANCES


    COST OF GOODS SOLD

    PURCHASES
    FREIGHT IN

    PURCHASE DISCOUNTS
    PURCHASE RETURNS AND ALLOWANCES

    FREIGHT OUT
    SALARIES EXPENSE

    UTILITIES EXPENSE
    ADVERTISING EXPENSE
    Total

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