Problem Special Journals

The document provides transactions for a merchandising concern over the month of September 2021. Students are required to record the transactions in journals, post to subsidiary ledgers and general ledger, and prepare a trial balance and schedules of accounts receivable and accounts payable as of September 30, 2021.

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Problem Special Journals

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Carmi Fecero

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Accounting 1

Activity -Practice Problem –Merchandising Concern: Special Journals and Subsidiary Ledgers

. The following transactions took place during the first month of operations of Luzon Trading:

2021
Sept 1 Luis Uzon invested P 150,000 cash, merchandise inventory, P 100,000; store furniture and equipment,
P 75,000,store supplies, P 5,000 and office supplies P 3,000. OR#0001; JV # 1001.
2 Taxes and licenses paid P 3,000. CV # 01
2 Purchased additional merchandise from Towers International with a list price of P 60,000. Terms: less 5%,
2/10, n/30. Invoice # 8117
3 Cash sales amounted to P 42,500. (CS Invoice # 1 – 11)
5 Received a credit memo from Towers International for P 1,000 as allowance for slight defects in certain
merchandise items. Invoice # 118
6 Purchased office furniture and equipment from Majestic Company for P 50,000. Terms: 2/30, n/60. 2002; JV #
1003
8 Paid the month’s rent to Midtown Realty, P 5,000.;CV # 02.
10 Purchased office supplies for cash P 1,500. CV # 03
Sold merchandise to RR Store for p 20,500. Terms: 2/10, n/30. Invoice # 1001
12 Paid in full the account with Towers International. CV# 04
13 Cash purchases amounted to P 12,000. CV #05; Invoice # 3895.
15 Cash sales to date amounted to P 69,000. CSI # 12- 25.
16 Paid the following items: (CV 06 – 08)
Transportation expenses - messenger 150
Freight on purchases 200
Freight on sales 500
18 Gave a cash refund of P 500 to cash customers for defective goods returned . CV #09
20 Collected in full the account of RR Store. OR 0002
20 Purchased merchandise from TGT corporation, P 30,000. Terms: 2/5, 1/10, n/30. Invoice 90023
22 Sold goods to YOURS Company for P 10,000. Terms: 1/5, n/15. Invoice # 1002
23 Purchased goods from DDD Company for P 20,000. Terms: n/30. Invoice # 890045
25 Sold goods to BOBO Store for P 20,000. Terms: 1/10, n/30. Invoice # 1003
25 Paid ½ of the account with TGT Corporation., CV 10
27 Collected in full the account of YOURS Company. OR 0003
28 Cash sales to date amounted to P 45,000. CSI 26 – 40.
30 Purchased goods from ARCE Co. P 50,000. Terms: 20-6% note. Invoice # 567801
30 Paid the light and water bills , P 2,500. CV# 11.
30 Paid the following items: (CV # 12 – 13)
Salaries of employees 25,000
Freight of purchases 700
30 Cash purchases, P 45,000. Invoice # 19002; CV 14.
CV – Cash vouchers
CSI – Cash Sales Invoice

REQUIRED: Using the Chart of accounts below:

1. Record the above transactions in the appropriate journals
2. Post to subsidiary ledgers and general ledger using the chart of account given below.
3. Prepare a trial balance as of September 30, 2021
4. Prepare a schedule of Accounts Receivable and Accounts Payable
Luzon Trading
Chart of Accounts

Statement of Financial Position Accounts Income Statement Accounts

Assets Income
110 Cash on hand 410 Sales
120 Accounts Receivable 411 Sales returns and allowances
120A Allowance for bad debts 412 Sales Discounts
130 Notes Receivable 420 Interest Income
140 Merchandise Inventory
150 Store Supplies
160 Office supplies Cost and expenses
170 Store Furniture and Equipment 510 Purchases
180 Office Furniture and Equipment 511 Purchase returns and allowances
512 Purchase discounts
520 Freight in
Liabilities 530 Salary Expense
210 Accounts Payable 540 Advertising Expense
220 Notes Payable 550 Utilities Expense
560 Freight out
550 Transportation Expenses
Owner’s Equity 560 Taxes and Licenses
310 L. Uzon, Capital 570 Rent Expense
320 L. Uzon, Personal 580 Interest Expense
Name: __________________

CASH RECEIPTS JOURNAL

Debits Credits
OR Sales Accounts Receivable Other Accounts
Date No. Descriptions Cash Discounts / Amount Sales Account Title PR Amount

CASH DISBURSEMENTS JOURNAL

Credits Debits
Chk Purchase Accounts Payable Other Accounts
Date No. Descriptions Cash Discounts ⁄ Amount Purchases Account Title PR Amount
PURCHASES JOURNAL
Credits Debits
Inv. Account Accounts Payable Office Store Other Accounts
Date No. Credited ⁄ Amount Purchases Supplies Supplies Account Title PR Amount

SALES JOURNAL
Invoice PR Accounts Receivable Dr./
Date No. Account Debited Sales Cr.

GENERAL JOURNAL page 1

Account Titles and Explanation PR Debit Credit
Date
ACCOUNTS RECEIVABLE
SUBSIDIARY LEDGER
Name:______________________________
Address: ____________________________