Problem
On July 1, 2021, Maria Initially Invested P200,000 Cash Into Maria Merchandising. On The Same Date, She Paid P45,000 For Six Months' Rent On The Store Space, P10,000 For Business Licenses And Permits, And P50,000 For Various Store Furniture. She Also Bought P60,000 Worth Of Office Supplies On Account With The Intention To Sell Them At A Higher Price.
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On July 1, 2021, Maria initially invested P200,000 cash into Maria Merchandising. On the same date, she paid P45,000 for six months' rent on the store space, P10,000 for business licenses and permits, and P50,000 for various store furniture. She also bought P60,000 worth of office supplies on account with the intention to sell them at a higher price. However, the next day, the business received a P1,500 credit memo for allowance granted on the purchased merchandise. The supplies were bought from 123 Supplies Store on terms m/60. On June 6, the business bought from 45 Supplies Shop P5,000 worth of supplies to be used in the store on terms 50% downpayment, balance n/30.
Francisco, a part time employee, was able to sell on July 12 some of the store's merchandise to Mr. Y for P16,000 on terms 50% downpayment, balance 2/10, n/30. On July 24, the business sold to Mrs.Z merchandise for P12,000 on terms 2/10, n/30. On July 30, Ms. X paid the business P42,000 for merchandise bought on the same day. Although Ms. X already paid for all the merchandise in full, she requested that some merchandise be delivered to her new business address sometime next month.
At the end of the month, the business paid utilities totalling P4,920 and miscellaneous expenses amounting to P2,710. Merchandise inventory as of July 31, 2021 is P8,500, based on physical count.
Task
Perform the following steps in the accounting cycle for Maria Merchandising:
a) Journalize the above transactions using both general and special journals. Assume a periodic inventory system. When journalizing, refer to the Chart of Accounts provided and ignore source document reference number.
b) Post the transactions to general ledger.
c) Prepare the trial balance as of July 31, 2021
d) Prepare Work sheet as of July 31, 2021
e) Journalize and post adjusting entries
f) Prepare post-closing trial balance as of July 31, 2021