B.

PROBLEM SOLVING

B.1 Directions: Prepare journal entries for the following transactions using a periodic inventory system,
then post the entries to the general and subsidiary ledgers.
Marasigan Merchandising sells facsimile, copiers and other types of office equipment. Transactions
during the month of September 2016 are as follows:

Sept 1 Purchased five units of copiers on account from Machina Corp at a cost of P8,000 per unit. Payment
is due 30 days after.
Borrowed from Nation Bank, P50,000 at 10% interest per annum due in three months. Marasigan
issued a promissory note for this borrowing.
Paid one –year insurance covering the period Sept 1, 2016 – August 31, 2017 for P24,000.
Sept 2 Purchased 10 units of facsimile machines on cash from Tiktac Corp for a total price of P20,000.
Sept 7 Sold three units of copiers to Jane Nay on account for a total amount of P45,000. The terms of the
sale are 2/10 and n/30.
Sept 10 Paid P5,600 for office supplies.
Sept 14 Collected from Jane Nay the full amount relating to September 7 sales.
Sept 15 Paid P10,000 salaries of office staff.
Sept 20 Sold on cash, two units of facsimile machines to Juan for P5,000
Sept 30 Sold one unit of copier to Martha on account for P23,000. The terms of the sale are 2/10 and n/30.

B.1 Journal Entries (30 Points)

Date Account Title and Explanation Ref Debit Credit

9/1/2016 Office equipment P8,000
Accounts Payable P8,000
To record the Purchased five units of
copiers on account
9/1/2016 Cash 50,000
Notes Payable 50,000
To record Owners withdrew from bank
9/1/2016 Prepaid insurance 24,000
Cash 24,000
To record the year insurance covering the
period Sept 1, 2016– August 31, 2017
9/2/2016 Office equipment 20,000
Cash 20,000
To record the10 units of facsimile
machines
9/7/2016 Accounts Receivable 45,000
Sales Revenue 45,000
To record the Sold three units of copiers
to Jane Nay on account
9/10/2016 Office supplies 5,600
Cash 5,600
To record the purchase of office supplies
9/14/2016 Cash 45,000
Accounts receivable 45,000
To record the collected full amount
relating to September 7 sales.
 9/15/2016 Salaries expense 10,000
Cash 10,000
To record the salary of the office staff
9/20/2016 Cash 5,000
Sales Revenue 5,000
To record the two units of facsimile
machines to Juan
9/30/2016 Accounts Receivable 23,000
Sales Revenue 23,000
To record the Sold one unit of copier to
Martha

B.2 Subsidiary ledger (8 Points)

ACCOUNTS PAYABLE
Machina Corp
Date Ref Debit Credit Balance
9/1 GJ1 P40,000 P40,000

ACCOUNTS RECEIVABLE
Jane Nay
Date Ref Debit Credit Balance
9/7 GJ1 P45,000 P45,000
9/14 GJ1 P45,000 P0
Martha
Date Ref Debit Credit Balance
9/30 GJ1 P23,000 P23,000

B.3 General Ledger (20 Points)

CASH Account No.

Date Particulars Ref Debit Credit Balance
9/1 Owners withdrew from bank GJ P50,000 P50,000
1
9/1 Prepaid insurance GJ P24,000 P26,000
1
9/2 Purchase of machines GJ P20,000 P6,000
1
9/10 Purchase of Office supplies GJ P5,600 P400
1
9/14 Service income GJ P45,000 P45,400
1
9/15 Salaries expense GJ P10,000 P35,400
1
9/20 Sales GJ P5,000 P40,400
1
 ACCOUNTS RECEIVABLE Account No.
Date Particulars Ref Debit Credit Balance
9/7 Sold three units of copiers to Jane GJ P45,000 P45,000
Nay on account 1
9/14 Sold on cash, two units of facsimile GJ P45,000 P0
machines to Juan 1
9/30 Sold one unit of copier to Martha GJ P23,000 P23,000
on account 1

PREPAID INSURANCE Account No.

Date Particulars Ref Debit Credit Balance
9/1 Paid one –year insurance covering GJ P24,000 P24,000
the period Sept 1, 2016 – August 1
31

OFFICE SUPPLIES Account No.

Date Particulars Ref Debit Credit Balance
9/10 Purchase of Office supplies GJ P5,600 P5,600
1

ACCOUNTS PAYABLE Account No.

Date Particulars Ref Debit Credit Balance
9/1 Purchased five units of copiers on GJ P8,000 P8,000
account from Machina Corp 1

NOTES PAYABLE Account No.

Date Particulars Ref Debit Credit Balance
9/1 Paid one –year insurance covering GJ 50,000 P50,000
the period Sept 1, 2016 – August 1
31

SALES Account No.

Date Particulars Ref Debit Credit Balance
9/7 Sold three units of copiers to Jane GJ
P45,000 P45,000
Nay on account 1
9/20 Sold on cash, two units of facsimile
P5,000 P50,000
machines to Juan
9/30 Sold one unit of copier to Martha on
P23,000 P73,000
account

PURCHASES Account No.

Date Particulars Ref Debit Credit Balance
9/1 Five units of copiers on account GJ1
P40,000 P40,000
from Machina Corp
9/2 Purchase of machines GJ1 P20,000 P60,000
 SALARIES EXPENSE Account No.
Date Particulars Ref Debit Credit Balance
9/15 Salary of the employees GJ P10,000 P10,000
1