Exer # 7: Liberal Ent - Periodic System

Liberal Enterprises, a trading firm established on May 1, 2015 completed the following transactions
during its first month in business.
1 - The owner, Mario Rojas invested P 15,000 to his newly opened business.
2 - Purchased merchandise on account from National Suppliers, P 8,000 – terms: 2/10, n/30, FOB,
Shipping Point – P 220.
4 - Purchased store supplies in cash, P 1,600.
6 - Received credit refund from National Suppliers due to merchandise with defects, P 200.
7 - Sold merchandise on account P 4,400 – terms: 2/10, n/30, FOB Destination – P 110.
10 - Purchased store equipment worth P 18,000, terms: 2/10, n/30.
12 - Paid National Suppliers in full.
13 - Purchased merchandise in cash, P 3,700.
14 - Received a cash loan from United Bank on a promissory note of P 15,000.
15 - Received refund from supplier for poor quality merchandise on cash purchase, P 430.
17 - Received collections in full from customer billed on May 7.
18 - Purchased merchandise from PDP Distributors for P 2,500 – terms: 2/10, n/30.
19 - Paid freight on May 18 purchase, P 125.
20 - Paid half the amount due to the store equipment bought on May 10.
21 - The owner withdrew P 3,000 cash for his personal use.
23 - Sold merchandise on account, P 2,400.
25 - Purchased merchandise from CMD Trading, P 2,350 – terms: 2/10, n/30
28 - Paid PDP Distributors in full.
29 - Sold merchandise for cash, P 5,400. FOB, Destination – P250.
30 - Paid the salary of store staff, P 2,000.
31 - Made refunds to cash customers for defective merchandise, P 324.

*At the end of May, it was determined that ending inventory was P 8,300.

Chart of Accounts
101 Cash

105 Accounts Receivable

110 Merchandise Inventory

115 Supplies

130 Equipment

201 Accounts Payable

205 Notes Payable

301 M. Rojas, Capital

302 M. Rojas, Drawing

401 Sales

405 Sales Returns and Allowances

410 Sales Discount

501 Purchases

505 Purchase Returns and Allowances

510 Purchase Discount

515 Freight In

601 Salaries Expense

644 Freight Out