Quiz 2 Journal entries Flashcards
On August 1, 2024, Carrie Ton took over the business of Pedro Pendoco, having the following assets and liabilities:
Accounts Receivable – Uniwide Trading ₱ 45,000
Stocks of merchandise 500,000
Tables, chairs, cabinets, glass showcases 80,000
Airconditioning unit (1) 15,000
Cash register (1) 30,000
Accounts Payable – KT Gift Shop 20,000
Accounts Receivables 45,000
Merchandise Inventory 500,000
Furniture and Fixtures 80,000
Equipment 45,000
Accounts Payable 20,000
Carrie Ton, Capital 650,000
To record acquisition of
business
March
6 Bought a computer table worth ₱ 2,500 less 1% and 10% trade discounts, respectively. Term COD.
7 Acquired a new laptop worth ₱ 90,000 from PC Tools, Inc. with 25% downpayment. Term balance 2/15,
n/60.
15 Paid one-half of the unpaid balance with PC Tools, Inc.
31 Issued a check to PC Tools, Inc. in full settlement of account
Furniture and Fixtures 2227.50
Cash 2227.50
To record purchase of computer table
Equipment 90,000
Cash 22,500
Accounts Payable 67,500
Purchase of laptop; 25%
downpayment, term
balance n/6
Accounts Payable 33,750
Cash 33,750
Paid half of the balance
for purchase of laptop
Accounts Payable 33,750
Cash 33,750
To record full
settlement of account
On April 5, Colonnade sold ₱ 60,000 worth of goods to Chikita Bazaar. Term 2/10; n/30 FOB Shipping point, freight prepaid
₱2,500. Prepare the entries in the books of the seller and in the books of the buyer
SELLER
Accounts Receivable 62500
Sales 60000
Cash 2500
Sold merchandise on
account 2/10, n/30
FOB Shipping Point,
Freight Prepaid
BUYER
Purchases 60000
Freight-In 2500
Accounts Payable 62500
Bought merchandise
on account 2/10, n/30
FOB Shipping Point,
Freight Prepaid
On May 11, RTW Co. sold ₱ 180,000 worth of merchandise to Marvel Trading. Term 2/10, n/30. FOB destination, freight
collect ₱10,000. Prepare the journal entries in the seller’s books and in the buyer’s books.
SELLER
Accounts Receivable 170,000
Freight-out 10,000
Sales 180,000
Sold merchandise
on account, 2/10,
n/30
FOB Destination,
Freight Collect
BUYER
Purchases 180,000
Accounts Payable 170,000
Cash 10,000
Bought merchandise on
account, 2/10, n/30
FOB Destination, Freight
Collect
