Teresita Buenaflor Shoes

General Journal
For the Month Ended February 28, 2021

Date Account Titles and Explanation P.R. Debit Credit

2021
Feb. 1 Cash 110 ₱ 113,000.00
Accounts Receivable 120 ₱ 113,000.00
#

2 Accounts Payable 210 64,000.00

Purchase Discounts 530 1,920.00
Cash 110 62,080.00
#

4 Purchases 510 170,000.00

Accounts Payable 210 170,000.00
#

5 Accounts Receivable 120 270,000.00

Sales 410 270,000.00
#

7 Advertising Expense 670 6,000.00

Cash 110 6,000.00
#

Cash 110 250,000.00

Sales 410 250,000.00
#

8 Accounts Payable 210 170,000.00

Purchase Discounts 530 5,100.00
Cash 110 164,900.00
#

9 Transportation In 540 4,000.00

Cash 110 4,000.00
#

10 Sales Returns & Allowances 420 70,000.00

Accounts Receivable 120 70,000.00
#

12 Cash 110 196,000.00

 Sales Discounts 430 4,000.00
Accounts Receivable 120 200,000.00
#

14 Interest Expense 230 26,000.00

Cash 110 26,000.00
#

15 Salaries Expense 610 51,000.00

Cash 110 51,000.00
#

16 Accounts Receivable 120 392,000.00

Sales 410 392,000.00
#

18 Transportation Out 660 4,000.00

Cash 110 4,000.00
#

19 Supplies 140 21,000.00

Cash 110 21,000.00
#

20 Purchases 510 125,000.00

Accounts Payable 210 125,000.00
#

22 Miscellaneous Expense 690 7,000.00

Cash 110 7,000.00
#

23 Cash 110 384,160.00

Sales Discounts 430 7,840.00
Accounts Receivable 120 392,000.00
#

24 Purchases 510 373,000.00

Accounts Payable 210 373,000.00
#

Transportation In 660 9,000.00

Cash 110 9,000.00
#

25 Accounts Receivable 120 420,000.00

Sales 410 420,000.00
 #

26 Sales Returns & Allowances 420 71,000.00

Accounts Receivable 120 71,000.00
#

28 Buenaflor, Withdrawals 320 400,000.00

Cash 110 400,000.00
#

Accounts Payable 210 25,000.00

Purchase Returns and Allowances 520 25,000.00
#
 Teresita Buenaflor Shoes
General Ledger
For the Month Ended February 28, 2021

Account: Cash Account No.: 110

Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 1 Beginning Balance ₱ 33,000.00 33,000.00
Collected from customers 113,000.00 146,000.00
2 Payment of account due ₱ 62,080.00 83,920.00
7 Payment of advertising expense 6,000.00 77,920.00
Received payment from merchandise sold 250,000.00 327,920.00
8 Paid accounts payable for purchase of merchandise 164,900.00 163,020.00
9 Paid freight charges for delivering merchandise 4,000.00 159,020.00
12 Received payment from merchandise sold 196,000.00 355,020.00
14 Paid interest expense 26,000.00 329,020.00
15 Paid salaries expense 51,000.00 278,020.00
18 Paid freight charges for delivering merchandise 4,000.00 274,020.00
19 Purchased supplies 21,000.00 253,020.00
22 Paid miscellaneous expense 7,000.00 246,020.00
23 Received payment from merchandise sold 384,160.00 630,180.00
24 Paid freight charges for delivering merchandise 9,000.00 621,180.00
28 Withdrew cash 400,000.00 221,180.00

Account: Accounts Receivable Account No.: 120

Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 1 Beginning Balance ₱ 192,000.00 192,000.00
Collected from customers ₱ 113,000.00 79,000.00
5 Sold to Gonzales Inc. on account 270,000.00 349,000.00
10 Received returns from Gonzales Inc. 70,000.00 279,000.00
12 Received payment from Gonzales Inc. 200,000.00 79,000.00
16 Accounts Receivable from Ronzales Corp. 392,000.00 471,000.00
23 Received payment from Ronzales Corp. 392,000.00 79,000.00
25 Sold to Ronzales Corp. on account 420,000.00 499,000.00
26 Returned merchandise from Agustin 71,000.00 428,000.00
Account: Merchandise Inventory Account No.: 130
Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 1 Beginning balane ₱ 413,000.00 413,000.00

Account: Supplies Account No.: 140

Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 1 Beginning balance ₱ 51,000.00 51,000.00
19 Purchased supplies 21,000.00 72,000.00

Account: Prepaid Insurance Account No.: 150

Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 1 Beginning balance ₱ 48,000.00 48,000.00
Account: Land Account No.: 160
Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 1 Beginning balance 460,000.00 460,000.00

Account: Building Account No.: 170

Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 1 Beginning balance ₱ 1,750,000.00 1,750,000.00

Account: Accumulated Depreciation- Building Account No.: 175

Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 1 Beginning balance ₱ 350,000.00 350,000.00

Account: Equipment Account No.: 180

Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 1 Beginning balance ₱ 2,310,000.00 2,310,000.00

Account: Accumulated Depreciation- Equipment Account No.: 185

Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 1 Beginning balance ₱ 630,000.00 630,000.00
Account: Accounts Payable Account No.: 210
Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 1 Beginning balance ₱ 108,000.00 108,000.00
2 Paid accounts due less 3% discounts ₱ 64,000.00 44,000.00
4 Purchased merchandise on account 170,000.00 214,000.00
8 Paid accounts payable of February 4 170,000.00 44,000.00
20 Purchased from Lozada Imports on account 125,000.00 169,000.00
24 Purchased merchandise on account 373,000.00 542,000.00
28 Returned merchandise 25,000.00 517,000.00

Account: Mortgage Payable Account No.: 210

Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 1 Beginning balance ₱ 2,600,000.00 2,600,000.00

Account: Buenaflor, Capital Account No.: 310

Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 1 Beginning balance ₱ 1,569,000.00 1,569,000.00

Account: Buenaflor, Withdrawal Account No.: 320

Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 28 Withdrawal ₱ 400,000.00 400,000.00
Account: Sales Account No.: 410
Balance
Date Explanation J.R Debit Credit
Debit Credit
5 Sold merchandise on account ₱ 270,000.00 270,000.00
7 Sold merchandise for cash 250,000.00 520,000.00
16 Sold merchandise on account 392,000.00 912,000.00
25 Sold merchandise on account 420,000.00 1,332,000.00

Account: Sales Returns and Allowances Account No.: 420

Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 10 Returned merchandise from Gonzales Inc. ₱ 70,000.00 70,000.00
26 Returned merchandise from Ronzales Corp. 71,000.00 141,000.00

Account: Sales Discounts Account No.: 430

Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 12 Received payment less discounts ₱ 4,000.00 4,000.00
23 Received payment less discounts 7,840.00 11,840.00

Account: Purchases Account No.: 510

Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 4 Purchased merchandise on account ₱ 170,000.00 170,000.00
20 Purchased merchandise on account 125,000.00 295,000.00
24 Purchased merchandise on account 373,000.00 668,000.00

Account: Purchases Returns and Allowances Account No.: 520

Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 28 Returned merchandise to Agustin ₱ 25,000.00 25,000.00
Account: Purchases Discounts Account No.: 530
Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 2 Paid amount due less discount ₱ 1,920.00 1,920.00
8 Paid amount due less discount 5,100.00 7,020.00

Account: Transportation In Account No.: 540

Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 9 Paid freight charges for delivery of merchandise ₱ 4,000.00 4,000.00
24 Paid freight charges for delivery of merchandise 9,000.00 13,000.00

Account: Salaries Expense Account No.: 610

Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 15 Paid salaries expense ₱ 51,000.00 51,000.00

Account: Transportation Out Account No.: 660

Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 18 Paid freight out charges ₱ 4,000.00 4,000.00

Account: Advertising Expense Account No.: 670

Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 7 Paid advertising expense ₱ 6,000.00 6,000.00

Account: Interest Expense Account No.: 680

Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 14 Paid interest expense ₱ 26,000.00 26,000.00

Account: Miscellaneous Expense Account No.: 680

Balance
Date Explanation J.R Debit Credit
Debit Credit
Feb. 22 Paid miscellaneous expense ₱ 7,000.00 7,000.00
 Teresita Buenaflor Shoes
Worksheet
For the Month Ended February 28, 2021

Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash ₱ 221,180.00 ₱ 221,180.00 ₱ 221,180.00
Accounts Receivable 428,000.00 428,000.00 428,000.00
Merchandise Inventory 413,000.00 413,000.00 ₱ 413,000.00 ₱ 397,000.00 397,000.00
Supplies 72,000.00 ₱ 58,000.00 14,000.00 14,000.00
Prepaid Insurance 48,000.00 2,000.00 46,000.00 46,000.00
Land 460,000.00 460,000.00 460,000.00
Building 1,750,000.00 1,750,000.00 1,750,000.00
Accumulated Depreciation- Building ₱ 350,000.00 9,000.00 ₱ 359,000.00 ₱ 359,000.00
Equipment 2,310,000.00 2,310,000.00 2,310,000.00
Accumulated Depreciation- Equipment 630,000.00 12,000.00 642,000.00 642,000.00
Accounts Payable 517,000.00 517,000.00 517,000.00
Salaries Payable 51,000.00 51,000.00 51,000.00
Mortgage Payable 2,600,000.00 2,600,000.00 2,600,000.00
Buenaflor, Capital 1,569,000.00 1,569,000.00 1,569,000.00
Buenaflor, Withdrawals 400,000.00 400,000.00 400,000.00
Income Summary
Sales 1,332,000.00 1,332,000.00 1,332,000.00
Sales Returns 141,000.00 141,000.00 141,000.00
Sales Discounts 11,840.00 11,840.00 11,840.00
Purchases 668,000.00 668,000.00 668,000.00
Purchase Returns 25,000.00 25,000.00 25,000.00
Purchase Discounts 7,020.00 7,020.00 7,020.00
Transportation In 13,000.00 13,000.00 13,000.00
Salaries Expense 51,000.00 ₱ 51,000.00 102,000.00 102,000.00
Supplies Expense 58,000.00 58,000.00 58,000.00
Isurance Expense 2,000.00 2,000.00 2,000.00
Depreciation Expense-Building 9,000.00 9,000.00 9,000.00
Depreciation Expense-Equipment 12,000.00 12,000.00 12,000.00
Transportation Out 4,000.00 4,000.00 4,000.00
Advertising Expense 6,000.00 6,000.00 6,000.00
Interest Expense 26,000.00 26,000.00 26,000.00
Miscellaneous Expense 7,000.00 7,000.00 7,000.00
₱ 7,030,020.00 ₱ 7,030,020.00 ₱ 132,000.00 ₱ 132,000.00 ₱ 7,102,020.00 ₱ 7,102,020.00 1,472,840.00 ₱ 1,761,020.00 ₱ 6,026,180.00 5,738,000.00
Profit 288,180.00 288,180.00
₱ 1,761,020.00 ₱ 6,026,180.00
 Teresita Buenaflor Shoes
Income Statement
For the Month Ended February 28, 2021
Net Sales
Gross Sales ₱ 1,332,000.00
Less: Sales Returns and Allowances ₱ 141,000.00
Sales Discounts 11,840.00 152,840.00
Net Sales 1,179,160.00
Cost of Sales
Merchandise Inventory 2/1/2021 ₱ 413,000.00
Purchases ₱ 668,000.00
Less: Purchase Returns and Allowances ₱ 25,000.00
Purchase Discounts 7,020.00 32,020.00
Net Purchases ₱ 635,980.00
Transportation In 13,000.00
Net Cost of Purchases 648,980.00
Goods Available for Sale ₱ 1,061,980.00
Less: Merchandise Inventory 2/28/2021 397,000.00
Cost of Sales 664,980.00
Gross Profit ₱ 514,180.00
Operating Expenses
Selling Expenses
Transportation Out 4,000.00
Total Selling Expenses ₱ 4,000.00
Administrative Expenses
Salaries Expense 102,000.00
Supplies Expense 58,000.00
Depreciation Expense-Building 9,000.00
Depreciation Expense-Equipment 12,000.00
Advertising Expense 6,000.00
Insurance Expense 2,000.00
Miscellaneous Expense 7,000.00
Total Administrative Expense 196,000.00
Total Operating Expenses 200,000.00
Operating Profit ₱ 314,180.00

Finance Costs 26,000.00

Profit ₱ 288,180.00
 Teresita Buenaflor Shoes
Statement of Changes in Equity
For the Month Ended February 28, 2021

Teresita Buenaflor, Capital, 2/1/2021 ₱ 1,569,000.00

Add: Profit 288,180.00
Total 1,857,180.00
Less: Withdrawals 400,000.00
Teresita Buenaflor, Capital, 2/28/2021 ₱ 1,457,180.00
 Teresita Buenaflor Shoes
Balance Sheet
For the Month February 28,2021

Assets
Current Assets
Cash ₱ 221,180.00
Accounts Receivable 428,000.00
Merchandise Inventory 397,000.00
Supplies 14,000.00
Prepaid Insurance 46,000.00
Total Current Assets ₱ 1,106,180.00
Property and Equipment (net)
Land ₱ 460,000.00
Building ₱ 1,750,000.00
Less: Accumulated Depreciation-Building 359,000.00 1,391,000.00
Equipment ₱ 2,310,000.00
Less: Accumulated Depreciation-Equipment 642,000.00 1,668,000.00 3,519,000.00
Total Assets ₱ 4,625,180.00

Liabilities
Current Liabilities
Accounts Payable 517,000.00
Salaries Payable 51,000.00
Total Current Liabilities ₱ 568,000.00

Noncurrent Liabilities
Mortgage Payable 2,600,000.00
Total Liabilities ₱ 3,168,000.00

Owner's Equity
Teresita Buenaflor, Capital 2/28/2021 1,457,180.00
Total Liabilities and Owner's Equity ₱ 4,625,180.00
 Teresita Buenaflor Shoes
Closing Entries
For the Month Ended February 28, 2021

Date Account Titles and Explanation PR Debit Credit

2021
Feb. 28 Merchandise Inventory 130 ₱ 397,000.00
Sales 410 1,332,000.00
Purchase Returns and Allowances 520 25,000.00
Purchase Discounts 530 7,020.00
Income Summary 330 ₱ 1,761,020.00
To close temporary accounts with
credit balances and to establish
the ending merchandise inventory

28 Income Summary 330 1,472,840.00

Merchandise Inventory, 2/1/2021 130 413,000.00
Sales Returns and Allowances 420 141,000.00
Sales Discounts 430 11,840.00
Purchases 510 668,000.00
Transportation In 540 13,000.00
Salaries Expense 610 102,000.00
Supplies Expense 620 58,000.00
Insurance Expense 630 2,000.00
Depreciation Expense-Building 640 9,000.00
Depreciation Expense-Equipment 650 12,000.00
Transportation Out 660 4,000.00
Advertising Expense 670 6,000.00
Interest Expense 680 26,000.00
Miscellaneous Expense 690 7,000.00
To close temporary accounts with
debit balances and to remove
beginning merchandise inventory

28 Income Summary 330 288,180.00

Teresita Buenaflor, Capital 310 288,180.00
To close income summary account

28 Teresita Buenaflor, Capital 310 400,000.00

Teresita Buenaflor, Withdrawals 320 400,000.00
To close the withdrawal account