Comprehensive Problem

Listed below are the Feb. 1, 2013 account balances of the Teresita Buenaflor Company:

Debit Credit
110 Cash 33,000
120 Accounts Receivable 192,000
130 Merchandise Inventory 413,000
140 Supplies 51,000
150 Prepaid Insurance 48,000
160 Land 460,000
170 Building 1,750,000
175 Accumulated Depreciation - Building 350,000
180 Equipment 2,310,000
185 Accumulated Depreciation - Equipment 630,000
210 Accounts Payable 108,000
220 Salaries Payable
230 Mortgage Payable 2,600,000
310 Buenaflor, Capital 1,569,000
320 Buenaflor, Withdrawals
330 Income Summary
410 Sales
420 Sales Returns and Allowances
430 Sales Discounts
510 Purchases
520 Purchase Returns and Allowances
530 Purchase Discounts
540 Transportation In
610 Salaries Expense
620 Supplies Expense
630 Insurance Expense
640 Depreciation Expense - Building
650 Depreciation Expense - Equipment
660 Transportation Out
670 Advertising Expense
680 Interest Expense
690 Miscellaneous Expense
5,257,000 5,257,000

During the month of February 2013, the following transactions occurred:

Feb. 1 Collected P113,000 from customers on account

2 Paid P64,000 of accounts due less discounts of 3%
4 Purchased merchandise, P170,000. Terms: FOB shipping point; 3/10, n/30
 5 Sold merchandise on account to Gonzales Company, P270,000. Terms: FOB shipping
point; 2/10, n/30
7 Paid for advertising for the month of February, P6,000
7 Sold merchandise for cash, P250,000
8 Paid the amount due from the Feb. 4 transaction
9 Paid Iloilo freight P4,000 for delivering merchandise last Feb. 4
10 Received returns from the Gonzales Company , P70,000
12 Received payment from the Gonzales Company less returns and discounts
14 Paid P26,000 interest on the mortgage payable
15 Paid salaries, P51,000
16 Sold merchandise on account to Ronzales Company, P392,000. Terms: FOB destination;
2/10, n/30
18 Paid P4,000 freight charges on the sale of Feb. 16
19 Acquired supplies for cash, P21,000
20 Purchased P125,000 of merchandise from Lozada Company on account. Terms:
FOB destination; 3/10, n/30
22 Paid P7,000 miscellaneous expenses
23 Received payment from Ronzales Company less discounts
24 Purchased P373,000 of merchandise on account from Agustin Company. Terms: FOB
shipping point; 3/10, n/30
24 Paid La Paz Express P9,000 freight for delivering merchandise acquired from Agustin
25 Sold merchandise to Ronzales Company on account, P420,000. Terms: FOB shipping
point; 2/10, n/30
26 Received returns from Ronzales Company, P71,000
28 Buenaflor withdrew P400,000 from the business
28 Returned merchandise purchased from Agustin on Feb. 24, P25,000
28 Salaries in the amount of P51,000 have accrued
28 Insurance coverage with premiums of P2,000 has expired at month-end
28 Depreciation on the building and on the equipment for the month amounted to
P9,000 and P12,000 respectively
28 Supplies on hand amounted to P14,000
28 A count of the merchandise inventory amounted to P397,000
Required:
1 Post the Feb. 1, 2013 account balances to the ledger accounts.
2 Record the transactions for the month of February in a journal and post the
transactions to the ledger.
3 Prepare a Trial Balance
4 Prepare a Statement for Performance, Statement of Changes in Owner's Equity,
Statement of Financial Position and Statement of Cash Flow
5 Prepare the closing entries for the month
6 Post the closing entries to the ledger accounts.
7 Prepare a Post-closing Trial Balance.
 GENERAL LEDGER

Account Number: 110

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance 33,000 33,000
2/1/2013 113,000 146,000
2/2/2013 62,080 83,920
2/7/2013 6,000 77,920
2/7/2013 250,000 327,920
2/8/2013 164,900 163,020
2/9/2013 4,000 159,020
2/12/2013 196,000 355,020
2/14/2013 26,000 329,020
2/15/2013 51,000 278,020
2/18/2013 4,000 274,020
2/19/2013 21,000 253,020
2/22/2013 7,000 246,020
2/23/2013 384,160 630,180
2/24/2013 9,000 621,180
2/28/2013 400,000 221,180

Account Number: 120

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance 192,000 192,000
2/1/2013 113,000 79,000
2/5/2013 270,000 349,000
2/10/2013 70,000 279,000
2/12/2013 200,000 79,000
2/16/2013 392,000 471,000
2/23/2013 392,000 79,000
2/25/2013 420,000 499,000
2/26/2013 71,000 428,000

Account Number: 130

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance 413,000 413,000
2/28/2013 16,000 397,000

Account Number: 140

 Date Explanation Ref Debit Credit Balance
2/1/2013 Beg. Balance 51,000 51,000
2/19/2013 21,000 72,000
2/28/2013 58,000 14,000

Account Number: 150

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance 48,000 48,000
2/28/2013 2,000 46,000

Account Number: 160

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance 460,000 460,000

Account Number: 170

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance 1,750,000 1,750,000

Account Number: 175

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance 350,000 350,000
2/28/2013 9,000 359,000

Account Number: 180

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance 2,310,000 2,310,000

Account Number: 185

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance 630,000 630,000
2/28/2013 12,000 642,000
Account Number: 210

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance 108,000 108,000
2/2/2013 64,000 44,000
2/4/2013 170,000 214,000
2/8/2013 170,000 44,000
2/20/2013 125,000 169,000
2/24/2013 373,000 542,000
2/28/2013 25,000 517,000

Account Number: 220

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance - -
2/28/2013 51,000 51,000

Account Number: 230

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance 2,600,000 2,600,000

Account Number: 310

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance 1,569,000 1,569,000
2/28/2013 288,180 1,857,180
2/28/2013 400,000 1,457,180

Account Number: 320

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance - -
2/28/2013 400,000 400,000
2/28/2013 400,000 -

Account Number: 330

 Date Explanation Ref Debit Credit Balance
2/1/2013 Beg. Balance - - -
2/28/2013 413,000 413,000
2/28/2013 397,000 16,000
2/28/2013 1,059,840 1,075,840
2/28/2013 1,364,020 (288,180)
2/28/2013 288,180 -

Account Number: 410

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance - -
2/5/2013 270,000 270,000
2/7/2013 250,000 520,000
2/16/2013 392,000 912,000
2/25/2013 420,000 1,332,000
2/28/2013 1,332,000 -

Account Number: 420

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance - -
2/10/2013 70,000 70,000
2/26/2013 71,000 141,000
2/28/2013 141,000 -

Account Number: 430

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance - -
2/12/2013 4,000 4,000
2/23/2013 7,840 11,840
2/28/2013 11,840 -

Account Number: 510

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance - -
2/4/2013 170,000 170,000
2/20/2013 125,000 295,000
2/24/2013 373,000 668,000
 2/28/2013 668,000 -

Account Number: 520

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance - -
2/28/2013 25,000 25,000
2/28/2013 25,000 -

Account Number: 530

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance - -
2/2/2013 1,920 1,920
2/8/2013 5,100 7,020
2/28/2013 7,020 -

Account Number: 540

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance - -
2/9/2013 4,000 4,000
2/24/2013 9,000 13,000
2/28/2013 13,000 -

Account Number: 610

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance - -
2/15/2013 51,000 51,000
2/28/2013 51,000 102,000
2/28/2013 102,000 -

Account Number: 620

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance - - -
2/28/2013 58,000 58,000
2/28/2013 58,000 -
Account Number: 630

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance - - -
2/28/2013 2,000 2,000
2/28/2013 2,000 -

Account Number: 640

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance - - -
2/28/2013 9,000 9,000
2/28/2013 9,000 -

Account Number: 650

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance - - -
2/28/2013 12,000 12,000
2/28/2013 12,000 -

Account Number: 660

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance - - -
2/28/2013 4,000 4,000
2/28/2013 4,000 -

Account Number: 670

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance - - -
2/28/2013 6,000 6,000
2/28/2013 6,000 -

Account Number: 680

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance - - -
 2/28/2013 26,000 26,000
2/28/2013 26,000 -

Account Number: 690

Date Explanation Ref Debit Credit Balance

2/1/2013 Beg. Balance - - -
2/28/2013 7,000 7,000
2/28/2013 7,000 -
 Date Account Code Particulars Debit Credit

2/1/2013 110 Cash 113,000

2/1/2013 120 Accounts Receivable 113,000
#
2/2/2013 210 Accounts Payable 64,000
2/2/2013 110 Cash 62,080
2/2/2013 530 Purchase Discounts 1,920
#
2/4/2013 510 Purchases 170,000
2/4/2013 210 Accounts Payable 170,000
#
2/5/2013 120 Accounts Receivable 270,000
2/5/2013 410 Sales 270,000
#
2/7/2013 670 Advertising Expense 6,000
2/7/2013 110 Cash 6,000
#
2/7/2013 110 Cash 250,000
2/7/2013 410 Sales 250,000
#
2/8/2013 210 Accounts Payable 170,000
2/8/2013 530 Purchase Discounts 5,100
2/8/2013 110 Cash 164,900
#
2/9/2013 540 Transportation In 4,000
2/9/2013 110 Cash 4,000
#
2/10/2013 420 Sales Returns and Allowances 70,000
2/10/2013 120 Accounts Receivable 70,000
#
2/12/2013 110 Cash 196,000
2/12/2013 430 Sales Discount 4,000
2/12/2013 120 Accounts Receivable 200,000
#
2/14/2013 680 Interest Expense 26,000
2/14/2013 110 Cash 26,000
#
2/15/2013 610 Salaries Expense 51,000
2/15/2013 110 Cash 51,000
#
2/16/2013 120 Accounts Receivable 392,000
2/16/2013 410 Sales 392,000
#
2/18/2013 660 Transportation Out 4,000
2/18/2013 110 Cash 4,000
#
2/19/2013 140 Supplies 21,000
2/19/2013 110 Cash 21,000
#
2/20/2013 510 Purchases 125,000
2/20/2013 210 Accounts Payable 125,000
#
2/22/2013 690 Miscellaneous Expenses 7,000
2/22/2013 110 Cash 7,000
#
2/23/2013 110 Cash 384,160
2/23/2013 430 Sales Discount 7,840
2/23/2013 120 Accounts Receivable 392,000
#
2/24/2013 510 Purchases 373,000
2/24/2013 210 Accounts Payable 373,000
#
2/24/2013 540 Transportation In 9,000
2/24/2013 110 Cash 9,000
#
2/25/2013 120 Accounts Receivable 420,000
2/25/2013 410 Sales 420,000
#
2/26/2013 420 Sales Returns and Allowances 71,000
2/26/2013 120 Accounts Receivable 71,000
#
2/28/2013 320 Buenaflor, Withdrawals 400,000
2/28/2013 110 Cash 400,000
#
2/28/2013 210 Accounts Payable 25,000
2/28/2013 520 Purchase Returns and Allowances 25,000
#
2/28/2013 610 Salaries Expense 51,000
2/28/2013 220 Salaries Payable 51,000
#
2/28/2013 630 Insurance Expense 2,000
2/28/2013 150 Prepaid Insurance 2,000
#
2/28/2013 640 Depreciation Expense - Building 9,000
2/28/2013 175 Accumulated Depreciation - Building 9,000
#
2/28/2013 650 Depreciation Expense - Equipment 12,000
2/28/2013 185 Accumulated Depreciation - Building 12,000
 #
2/28/2013 620 Supplies Expense 58,000
2/28/2013 140 Supplies 58,000
#
3,765,000 3,765,000

Closing Entries
Date Account Code Particulars Debit Credit
2/28/2013 330 Income Summary 413,000
2/28/2013 130 Merchandise Inventory - Beginning 413,000
#
2/28/2013 130 Merchandise Inventory - Ending 397,000
2/28/2013 330 Income Summary 397,000
#
2/28/2013 330 Income Summary 1,059,840
2/28/2013 420 Sales Returns and Allowances 141,000
2/28/2013 430 Sales Discounts 11,840
2/28/2013 510 Purchases 668,000
2/28/2013 540 Transportation In 13,000
2/28/2013 610 Salaries Expenses 102,000
2/28/2013 620 Supplies Expense 58,000
2/28/2013 630 Insurance Expense 2,000
2/28/2013 640 Depreciation Expense - Building 9,000
2/28/2013 650 Depreciation Expense - Equipment 12,000
2/28/2013 660 Transportation Out 4,000
2/28/2013 670 Advertising Expense 6,000
2/28/2013 680 Interest Expense 26,000
2/28/2013 690 Miscellaneous Expense 7,000
#
2/28/2013 410 Sales 1,332,000
2/28/2013 520 Purchase Returns and Allowances 25,000
2/28/2013 530 Purchase Discounts 7,020
2/28/2013 330 Income Summary 1,364,020
#
2/28/2013 330 Income Summary 288,180
2/28/2013 310 Buenaflor, Capital 288,180
#
2/28/2013 310 Buenaflor, Capital 400,000
2/28/2013 320 Buenaflor, Withdrawals 400,000
#
 Unadjusted Trial Balance Transactions/Adjustments
Code Particulars Debit Credit Debit
110 Cash 33,000 943,160
120 Accounts Receivable 192,000 1,082,000
130 Merchandise Inventory 413,000 -
140 Supplies 51,000 21,000
150 Prepaid Insurance 48,000 -
160 Land 460,000 -
170 Building 1,750,000 -
175 Accumulated Depreciation - Building 350,000 -
180 Equipment 2,310,000 -
185 Accumulated Depreciation - Equipment 630,000 -
210 Accounts Payable 108,000 259,000
220 Salaries Payable -
230 Mortgage Payable 2,600,000 -
310 Buenaflor, Capital 1,569,000 -
320 Buenaflor, Withdrawals 400,000
330 Income Summary -
410 Sales -
420 Sales Returns and Allowances 141,000
430 Sales Discounts 11,840
510 Purchases 668,000
520 Purchase Returns and Allowances -
530 Purchase Discounts -
540 Transportation In 13,000
610 Salaries Expense 102,000
620 Supplies Expense 58,000
630 Insurance Expense 2,000
640 Depreciation Expense - Building 9,000
650 Depreciation Expense - Equipment 12,000
660 Transportation Out 4,000
670 Advertising Expense 6,000
680 Interest Expense 26,000
690 Miscellaneous Expense 7,000
5,257,000 5,257,000 3,765,000
ansactions/Adjustments Adjusted Trial Balance Closing Post-closing Trial Balance
Credit Debit Credit Debit Credit Debit Credit
754,980 221,180 - - 221,180 -
846,000 428,000 - - 428,000 -
- 413,000 - 397,000 413,000 397,000 -
58,000 14,000 - - 14,000 -
2,000 46,000 - - 46,000 -
- 460,000 - - - 460,000 -
- 1,750,000 - - - 1,750,000 -
9,000 359,000 - - - 359,000
- 2,310,000 - - - 2,310,000 -
12,000 642,000 - - - 642,000
668,000 517,000 - - - 517,000
51,000 51,000 - - - 51,000
- - 2,600,000 - - - 2,600,000
- - 1,569,000 400,000 288,180 - 1,457,180
- 400,000 - 400,000 - -
- - - 1,761,020 1,761,020 - -
1,332,000 1,332,000 1,332,000 - - -
- 141,000 - 141,000 - -
- 11,840 - 11,840 - -
- 668,000 - 668,000 - -
25,000 25,000 25,000 - - -
7,020 7,020 7,020 - - -
- 13,000 - 13,000 - -
- 102,000 - 102,000 - -
- 58,000 - 58,000 - -
- 2,000 - 2,000 - -
- 9,000 - 9,000 - -
- 12,000 - 12,000 - -
- 4,000 - 4,000 - -
- 6,000 - 6,000 - -
- 26,000 - 26,000 - -
- 7,000 - - 7,000 - -
3,765,000 7,102,020 7,102,020 3,922,040 3,922,040 5,626,180 5,626,180
 Buenaflor Comapany
Statement Of Financial Position
As of Febrauary 28, 2013

Assets February
Current Assets:
Cash 221,180
Accounts Receivable 428,000
Merchandise Inventory 397,000
Supplies 14,000
Prepaid Insurance 46,000
Total Current Assets 1,106,180

Noncurrent Assets:
Land 460,000
Building 1,750,000
Accumulated Depreciation - Building 359,000 1,391,000
Equipment 2,310,000
Accumulated Depriciation - Equipment 642,000 1,668,000
Total Noncurrent Assets 3,519,000

Total Assets 4,625,180

Liabilities and Owner's Equity

Current Liabilities:
Accounts Payable 517,000
Salaries Payable 51,000
Total Current Liabilities 568,000

Noncurrent Liabilities:
Mortgage Payable 2,600,000
Total Noncurrent Liabilities 2,600,000

Total Liabilities 3,168,000

Owner's Equity:
Buenaflor, Capital 1,457,180
Total Owner's Equity 1,457,180

Total Liabilities and Owner's Equity 4,625,180

tion

January Changes

33,000 188,180
192,000 236,000
413,000 (16,000)
51,000 (37,000)
48,000 (2,000)
737,000 369,180

460,000 -
1,750,000 -
(350,000) 9,000
2,310,000 -
(630,000) 12,000
3,540,000 (21,000)

4,277,000 348,180

108,000 409,000
- 51,000
108,000 460,000

2,600,000 -
2,600,000 -

2,708,000 460,000

1,569,000 (111,820)
1,569,000 (111,820)

4,277,000 348,180
 Buenaflor Comapany
Statement Of Financial Performance
For the month ended February 28, 2013

Sales 1,332,000
Less: Sales Returns and Allowances 141,000
Sales Discount 11,840 152,840
Net Sales 1,179,160
Less: Cost of Goods Sold
Merchandise Inventory, beg. 413,000
Purchases 668,000
Less: Purchase Returns and Allowances 25,000
Purchase Discount 7,020 32,020
Transportation In 13,000
Cost of Goods Available for Sale 1,061,980
Less: Merchandise Inventory, end. 397,000 664,980
Gross Profit 514,180
Less: Operating Expenses
Salaries Expenses 102,000
Supplies Expense 58,000
Insurance Expense 2,000
Depreciation Expense - Building 9,000
Depreciation Expense - Equipment 12,000
Transportation Out 4,000
Advertising Expense 6,000
Interest Expense 26,000
Miscellaneous Expense 7,000 226,000
Net Profit/Loss 288,180
 Buenaflor Comapany
Statement Of Cash Flows
For the month ended February 28, 2013

CASH FLOW FROM OPERATING ACTIVITIES

Net Income 288,180
Add Non-Cash Items:
Depreciation Expense- Building 9,000
Depreciation Expense- Equipment 12,000
Decrease in Supplies 37,000
Decrease in Merchandise Inventory 16,000
Decrease in Prepaid Insurance 2,000
Increase in Accounts Payable 409,000
Increase in Salaries Payable 51,000 536,000
Less Non - Cash Items:
Increase in Accounts Receivable (236,000)
Net Cash flow from Operating Activities 588,180

CASH FLOW FROM INVESTING ACTIVITIES

Cash Withdrawals (400,000)
Net Cash Flow from Investing Activities (400,000)

Net Increase/(Decrease) in Cash 188,180

Cash Balance - February 1, 2013 33,000
Ending Cash Balance 221,180
 Buenaflor Comapany
Statement of Changes in Owner's Equity
For the month ended February 28, 2013

Buenaflor, Capital Beg. 1,569,000

Add: Profit/(Loss) 288,180
Total 1,857,180
Less: Buenaflor, Withdrawals 400,000
Buenaflor, Capital End 1,457,180