PERPETUAL

General Journal
For the month ended JULY 2021

1 Cash 19,500.00
dela Cruz, Capital 19,500.00
To record capital investment.

2 Equipment 5,000.00
Cash 5,000.00
To record computer equipment bought.

3 Merchandise inventory 7,950.00

Accounts Payable 7,950.00
To record merchandise bought on account.

4 Supplies 350.00
Cash 350.00
To record supplies bought.

Accounts Receivable 7,600.00

Sales 7,600.00

Cost of Goods Sold 6100

Merchandise inventory 24,400.00
To record merchandise bought on account.

5 Freight-out 100.00
Cash 100.00
To record freight paid.

6 Accounts Payable 150.00

Merchandise inventory 150.00
To record merchandise returned

11 Accounts Payable 7,800.00

Merchandise inventory 156.00
Cash 7,644.00
To record payment.

13 Sales Discounts 152.00

Cash 7,448.00
Accounts Receivable 7,600.00
To record collection.

14 Merchandise inventory 7,200.00

Cash 7,200.00
To record merchandise bought.

15 Salaries 750.00
Cash 750.00
To record salaries paid.

16 Cash 6,000.00
Notes Payable 6,000.00
To record amount amount borrowed from bank.
17 Cash 250.00
Merchandise inventory 250.00
To record purchase returns.

18 Merchandise inventory 7,100.00

Accounts Payable 7,100.00
To record merchandise bought on account.

20 Merchandise inventory 350.00

Cash 350.00
To record freight paid on July 18.

23 Cash 8,200.00
Sales 8,200.00

Cost of Goods Sold 5250

Merchandise inventory 5,250.00
To record merchandise merchandise sold.

26 Merchandise inventory 6,150.00

Cash 6,150.00
To record merchandise bought.

27 Accounts Payable 4,500.00

Cash 4,500.00
To record partial payment on July 18.

28 dela Cruz, Drawings 1,004.00

Cash 1,004.00
To record withdrawal for personal use.

29 Sales Returns and Allowances 450.00

Cash 450.00
To record refund from customers.

30 Accounts Receivable 6,850.00

Sales 6,850.00

Cost of Goods Sold 5500

Merchandise inventory 5,500.00
To record merchandise sold on account.

Advertising Expense 500.00

Utilities Expense 200.00
Rent Expense 1,750.00
Salaries 750.00
Cash 3,200.00
To record operating expenses paid.
PERPETUAL

General Ledger
For the month ended July 2021
Cash
Balance
Date Item Post Debit Credit Debit Credit
01/07/2021 Initial investment 19,500.00 19,500.00
02/07/2021 Purchase of equipment 5,000.00 14,500.00
03/07/2021 Purchase of supplies 350.00 14,150.00
05/07/2021 Paid freight-out 100.00 14,050.00
11/07/2021 purchase on account, paid HFO Supply-full 7,644.00 6,406.00
13/07/2021 collection from customers (sales) 7,448.00 13,854.00
14/04/2021 Cash purchases 7,200.00 6,654.00
15/07/2021 Paid salaries 750.00 5,904.00
16/07/2021 Borrowed money (ABC Bank) 6,000.00 11,904.00
17/07/2021 Receive refund from cash purchase 250.00 12,154.00
20/07/2021 Paid freight-in 350.00 11,804.00
23/07/2021 Collection (sales) 8,200.00 20,004.00
26/07/2021 Cash purchases 6,150.00 13,854.00
27/07/2021 Partial settlement 4,500.00 9,354.00
28/07/2021 Drawings 1,004.00 8,350.00
29/07/2021 Returned Items 450.00 7,900.00
30/07/2021 Paid operating expense 3,200.00 4,700.00

Accounts Receivable
Balance
Date Item Post Debit Credit Debit Credit
04/07/2021 Sales on Account 7,600.00 7,600.00
13/07/2021 Settlement of account 7,600.00 0
30/07/2021 Sales on Account 6,850.00 6,850.00

Merchandise Inventory
Balance
Date Item Post Debit Credit Debit Credit
02/07/2021 Purchase on account 7,950.00 7,950.00 -
04/07/2021 Sold merchandise 6,100.00 1,850.00
06/07/2021 Purchase returned 150.00 1,700.00
11/07/2021 Purchase discount 156.00 1,544.00
14/07/2021 Purchase on cash 7,200.00 8,744.00
17/07/2021 Purchase returned 250.00 8,494.00
18/07/2021 Purchase on account 7,100.00 15,594.00
20/07/2021 Freight-in 350.00 15,944.00
23/07/2021 Sold merchandise 5,250.00 10,694.00
26/07/2021 Purchase on cash 6,150.00 16,844.00
30/07/2021 Sold merchandise 5,500.00 11,344.00

Supplies
Balance
Date Item Post Debit Credit Debit Credit
07/04/21 Bought supplies 350.00 350.00

Equipment
Balance
Date Item Post Debit Credit Debit Credit
07/02/21 Bought equipment 5,000.00 5,000.00

Accounts Payable
Balance
Date Item Post Debit Credit Debit Credit
7/3 Purchase on account 7,950.00 - 7,950.00
7/6 Credit on account returned merchandise 150.00 7,800.00
7/11 Settled account 7,800.00 0
7/18 Purchases 7,100.00 7,100.00
7/27 Partial settlement of account 4,500.00 2,600.00

Notes Payable
Balance
Date Item Post Debit Credit Debit Credit
07/16/21 Borrowed amount 6,000.00 6,000.00

dela Cruz, Capital

Balance
Date Item Post Debit Credit Debit Credit
07/01/21 initial investment 19,500.00 19,500.00
07/30/21 closing entry 1,148.00 20,648.00
07/30/21 closing entry 1,004.00 19,644.00
 Dela Cruz, Drawings
Balance
Date Item Post Debit Credit Debit Credit
7/28/21 drawings 1,004.00 1,004.00
7/30/21 closing entry 1,004.00 -

Sales
Balance
Date Item Post Debit Credit Debit Credit
07/04/20 Sales on account 7,600.00 7,600.00
07/23/20 Sales on cash 8,200.00 15,800.00
07/30/20 Sales on account 6,850.00 22,650.00
07/30/20 Closing entry 22,650.00 0

Sales Returns and Allowances

Balance
Date Item Post Debit Credit Debit Credit
07/29/20 Returned materials on cash basis 450.00 450.00
07/30/20 Closing entry 450.00 0

Sales Discount
Balance
Date Item Post Debit Credit Debit Credit
07/13/20 Discounts 152.00 152.00
07/30/20 Closing entry 152.00 0

Cost of Goods Sold

Balance
Date Item Post Debit Credit Debit Credit
07/04/21 Cost of Goods Sold 6,100.00 6,100.00
07/23/21 Cost of Goods Sold 5,250.00 11,350.00
07/30/21 Cost of Goods Sold 5,500.00 16,850.00
07/30/21 Closing entry 16,850.00 -

Advertising Expense
Balance
Date Item Post Debit Credit Debit Credit
07/30/20 Paid advertising expense 500.00 500.00
07/30/20 Closing entry 500.00 0

Freight-out
Balance
Date Item Post Debit Credit Debit Credit
07/05/20 Paid freight for sales 100.00 100.00
07/30/21 Closing entry 100.00 0

Rent Expense
Balance
Date Item Post Debit Credit Debit Credit
07/30/20 Paid rental 1,750.00 1,750.00
07/30/20 Closing entry 1,750.00 0

Salaries
Balance
Date Item Post Debit Credit Debit Credit
07/15/20 Paid salaries 750.00 750.00
07/30/20 Paid salaries 750.00 1,500.00
07/30/20 Closing entry 1,500.00 0

Utilities Expense
Balance
Date Item Post Debit Credit Debit Credit
07/30/20 Paid utilities 200.00 200.00
07/30/20 Closing entry 200.00 0

Income Summary
Balance
Date Item Post Debit Credit Debit Credit
07/30/20 Closing entry 22,048.00 - 22,048.00
07/30/20 Closing entry 16,850.00 5,198.00
07/30/21 Closing entry 4,050.00 1,148.00
07/30/20 Closing entry 1,148.00 -
perpetual

TrialBalance
Forthe m onth ended July 2021

A ccount Title D ebit C redit

Cash 4,700.00
A ccounts Receivable 6,850.00
Supplies 350.00
M erchandise Inventory 11,344.00
Equipm ent 5,000.00
A ccounts Payable 2,600.00
N otes Payable 6,000.00
Lopez,Capital 19,500.00
Lopez,D raw ings 1,004.00
Sales 22,650.00
Sales Returns and A llow ances 450.00
Sales D iscount 152.00
CostofG oods Sold 16,850.00
A dvertising Expense 500.00
Freight-out 100.00
RentExpense 1,750.00
Salaries 1,500.00
U tilities Expense 200.00
50,750.00 50,750.00 -

Statem ent ofFinancialPerform ance

Forthe m onth ended July 2021

G ross Sales 22,650.00

Less:Sales returns and allow ance (450.00)
Sales discounts (152.00)
N etSales 22,048.00
Less:CostofG oods Sold 16,850.00
G ross Profit - 5,198.00

Less:O perating Expense

A dvertising Expense 500.00
Salaries 1,500.00
RentExpense 1,750.00
U tilities Expense 200.00
Freight-out 100.00 4,050.00
N etIncom e 1,148.00
 Statem ent ofC hanges in O w ner's Equity
Forthe m onth ended July 2016

dela Cruz,Capital(Jul.1) 19,500.00

A dd:A dditionalInvestm ents
N etIncom e 1,148.00
Total 20,648.00
Less:Juan dela Cruz,D raw ings (1,004.00)
dela C ruz,C apital(July 30) 19,644.00

Statem ent ofFinancialPosition

Forthe m onth ended July 2021

A SSETS
CurrentA ssets
Cash 4,700.00
A ccounts Receivable 6,850.00
Supplies 350.00
M erchandise Inventory 11,344.00
TotalCurrentA ssets 23,244.00
N on-CurrentA ssets
Equipm ent 5,000.00
TotalN on-CurrentA ssets 5,000.00
TotalA ssets 28,244.00

Liabilities and Equity

Liabilities
A ccounts Payable 2,600.00
N otes Payable 6,000.00
TotalLiabilities 8,600.00
Equity
Lopez,Capital 19,644.00
TotalEquity 19,644.00
TotalLiabilities and Equity 28,244.00

Statem ent ofC ash Flow

Forthe m onth ended July 2021

C ash Flow from O perating A ctivities

A cquisition ofsupplies (350.00)
FreightExpense (450.00)
Cash paym ent (7,644.00)
Collection 7,448.00
Cash purchases (13,350.00)
Cash refund 250.00
Cash sales 8,200.00
Partialsettlem entofaccount (4,500.00)
Returns to custom ers (450.00)
Paym entofexpenses (3,950.00)
N etC ash Provided by O perating A ctivities (14,796.00)

C ash Flow From Investing A ctivities

A cquisition ofequipm ent (5,000.00)
N etC ash Provided by Investing A ctivities (5,000.00)

C ash Flow From Financing A ctivities

Initialinvestm ent 19,500.00
Loans 6,000.00
D raw ings (1,004.00)
N etC ash Provided by Financing A ctivities 24,496.00

C ash,End 4,700.00
PERPETUAL

Closing Entries
For the month ended July 2021

July 30 Sales 22,650.00

Sales Returns and Allowances 450.00
Sales Discount 152.00
Income Summary 22,048.00

Income summary 16,850.00

Cost of Goods Sold 16,850.00

July 30 Income Summary 4,050.00

Advertising Expense 500.00
Freight-out 100.00
Rent Expense 1,750.00
Salaries 1,500.00
Utilities Expense 200.00

July 30 Income summary 1,148.00

dela Cruz, Capital 1,148.00

July 30 dela Cruz, Capital 1,004.00

dela Cruz, Drawings 1,004.00

Closing Trial Balance

For the month ended July 2021

Account Title Debit Credit

Cash 4,700.00
Accounts Receivable 6,850.00
Merchandise inventory 11,344.00
Supplies 350.00
Equipment 5,000.00
Accounts Payable 2,600.00
Notes Payable 6,000.00
Juan dela Cruz, Capital 19,644.00
28,244.00 28,244.00