EXERCISES 11 Ruben Suarez began a trading business in Baguio

EXERCISES -11 Ruben Suarez began a trading business in Baguio on March 1, 2007 with the following investments P300,000 delivery truck store equipment 60,000 office equipment 200,000 20,000 15,000 furniture merchandise inventory 250,000 March 2 Paid P15,000 for the foods served to guests and customers during the inauguration of the trading store. Paid P1,865 for balloons, flowers, and other miscellaneous expenses for the inauguration. Paid the following: Taxes and licenses Store rent for the month Printing cost of invoices and other business forms P 575 20,000 1,500 3 Sales

Solution

Journal Entries for March 2007

Date

Entry

Debit (in P)

Credit (in P)

01-03-2007

Cash

300000

Delivery truck

20000

Store equipment

60000

Office equipment

20000

Furniture

15000

Merchandise inventory

250000

To capital account

665000

(Being initial investment introduced)

02-03-2007

Food served to guest

15000

Miscellaneous expenses

1865

Taxes and Licenses

575

Store rent

20000

Printing of invoices

1500

To cash

38940

(Being cash paid for the food and miscellaneous expense)

03-03-2007

Cash

12000

Mr Reynaldo Cayado

15000

Bulacan store

20000

To Sales

47000

(Being cash and credit sales made)

03-03-2007

Fright charges

200

To cash

200

(Being fright charges paid)

04-03-2007

Sales return

450

To cash

450

(Being sales return has been passed)

05-03-2007

Cash

28600

Benguet enterprise

30000

To sales

58600

05-03-2007

Fright charges

325

To cash

325

(Being fright charges paid)

05-03-2007

Discount on sales

1000

To Bulcan store

1000

07-03-2007

Purchases

202000

To Cash

22000

To Procter and Gamble

100000

To Nestle Phillippines

80000

(Being cash and credit purchases made)

08-03-2007

Procter and gambler

5000

To Purchase returns

5000

09-03-2007

Cash

32400

To Sales

32400

(Being cash sales made)

11-03-2007

Expenses

92

To cash

92

(Being bought of supplies)

13-03-2007

Cash

19000

To Bulcan stores

19000

14-03-2007

Purchases

50000

To Grand Products Manf.

50000

14-03-2007

Cash

18000

To Sale

18000

15-03-2007

Salaries

15500

To TDS

1825

To cash

13675

(Being salaries paid)

15-03-2007

Cash

30000

To Begnuet enterprise

30000

16-03-2007

Insurance Premium

5000

To cash

5000

17-03-2007

Purchase

70000

To Aluminium

70000

17-03-2007

Procter and Gamble

95000

To cash

95000

19-03-2007

Aluminium

10000

To Purchase returns

10000

20-03-2007

Cash

29800

To Sales

29800

23-03-2007

Bills receivable

15000

To Reynaldo cayado

15000

24-03-2007

Grand product

50000

To cash

50000

26-03-2007

cash

32250

YXL enterprise

25000

Big shoes importer

5000

To cales

62250

27-03-2007

Aluminium produces

60000

Nestle

80000

To cash

140000

27-03-2007

Cash

500

To Loans and advances

500

(Being cash advance made by office personnel

28-03-2007

Cash

15000

To Bills receivable

15000

29-03-2007

Electricity

1289.75

To cash

1289.75

(Being electricity bills paid)

30-03-2007

Telephone

426

Water

368

To cash

794

31-03-2007

Salaries

15500

To TDS

1620

To SSS Premium

1000

To Philliphense Premium

375

To Advances

500

To cash

12005

31-03-2007

SSS employer share

1870

Phillihealth

375

To Payable

2245

Date	Entry	Debit (in P)	Credit (in P)
01-03-2007	Cash	300000
	Delivery truck	20000
	Store equipment	60000
	Office equipment	20000
	Furniture	15000
	Merchandise inventory	250000
	To capital account		665000
	(Being initial investment introduced)
02-03-2007	Food served to guest	15000
	Miscellaneous expenses	1865
	Taxes and Licenses	575
	Store rent	20000
	Printing of invoices	1500
	To cash		38940
	(Being cash paid for the food and miscellaneous expense)
03-03-2007	Cash	12000
	Mr Reynaldo Cayado	15000
	Bulacan store	20000
	To Sales		47000
	(Being cash and credit sales made)
03-03-2007	Fright charges	200
	To cash		200
	(Being fright charges paid)
04-03-2007	Sales return	450
	To cash		450
	(Being sales return has been passed)
05-03-2007	Cash	28600
	Benguet enterprise	30000
	To sales		58600
05-03-2007	Fright charges	325
	To cash		325
	(Being fright charges paid)
05-03-2007	Discount on sales	1000
	To Bulcan store		1000
07-03-2007	Purchases	202000
	To Cash		22000
	To Procter and Gamble		100000
	To Nestle Phillippines		80000
	(Being cash and credit purchases made)
08-03-2007	Procter and gambler	5000
	To Purchase returns		5000
09-03-2007	Cash	32400
	To Sales		32400
	(Being cash sales made)
11-03-2007	Expenses	92
	To cash		92
	(Being bought of supplies)
13-03-2007	Cash	19000
	To Bulcan stores		19000
14-03-2007	Purchases	50000
	To Grand Products Manf.		50000
14-03-2007	Cash	18000
	To Sale		18000
15-03-2007	Salaries	15500
	To TDS		1825
	To cash		13675
	(Being salaries paid)
15-03-2007	Cash	30000
	To Begnuet enterprise		30000
16-03-2007	Insurance Premium	5000
	To cash		5000
17-03-2007	Purchase	70000
	To Aluminium		70000
17-03-2007	Procter and Gamble	95000
	To cash		95000
19-03-2007	Aluminium	10000
	To Purchase returns		10000
20-03-2007	Cash	29800
	To Sales		29800
23-03-2007	Bills receivable	15000
	To Reynaldo cayado		15000
24-03-2007	Grand product	50000
	To cash		50000
26-03-2007	cash	32250
	YXL enterprise	25000
	Big shoes importer	5000
	To cales		62250
27-03-2007	Aluminium produces	60000
	Nestle	80000
	To cash		140000
27-03-2007	Cash	500
	To Loans and advances		500
	(Being cash advance made by office personnel
28-03-2007	Cash	15000
	To Bills receivable		15000
29-03-2007	Electricity	1289.75
	To cash		1289.75
	(Being electricity bills paid)
30-03-2007	Telephone	426
	Water	368
	To cash		794
31-03-2007	Salaries	15500
	To TDS		1620
	To SSS Premium		1000
	To Philliphense Premium		375
	To Advances		500
	To cash		12005
31-03-2007	SSS employer share	1870
	Phillihealth	375
	To Payable		2245