PRACTICE SET (PERFORMANCE TASK) DUE ON OR BEFORE JANUARY 25, 2021
THE WEALTHY Co. is a wholesaler of office and school supplies. The following are the transactions of THE WEALTHY Co. for the
first month of its operations. All cash disbursements are made by bank check. Assume perpetual inventory method is used. The
answer for July 1 is provided as a guide for the succeeding transactions.
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Date Transaction Amount Business/Bank forms Journal Journal Entry
to be filled up
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July 1 Winnie Sy made initial contribution to the P200,000 Dr Cash 200,000
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business by depositing money in the Deposit Slip Cash Receipts Cr Sy, Capital 200,000
company’s bank account.
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July 1 Purchased laptop from Computershop Inc. P45,000 Dr Office Equipment 45,000
for office use. Purchase Order Cash Disbursement
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Payment term: COD (Cash on Delivery). Cr Cash 45,000
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Dr Rental Expenses 30,000
July 2 Paid advance rental for 6 months. 30,000 Cash Disbursement Cr Cash 30,000
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Check Deposit
July 4 Received 200 reams of bond papers co rc 25,000
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(inventory) ordered from Jude Corp. Receiving Report
Payment terms: 2/10, n/30.
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July 7 Delivered150 reams of bond papers to 41,250
Aurora Company.
Payment terms: 2/10, n/20. Delivery Receipt
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Cost of merchandise was P18,750.
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July 8 Paid the July 4 purchases 24,500
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Check Voucher
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Dr Salaries Expense 7,000
July 15 Paid salary of employee 7,000 Check voucher Cr Notes Payable 7,000
Dr Sales
July 16 Received payment from the July 7 sales. 40,425 Receiving Report Cr Accounts Receivable
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Date Transaction Amount Business/Bank forms Journal Journal Entry
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to be filled up
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July 18 Sold 20 reams of bond papers to Audrey 5,500
Company. Audrey picked up the
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merchandise from the store. Sales Invoice
Payment term: 15 days.
Cost of merchandise was P2,500.
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Dr Supplies Expense 25,000
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July 19 Received10 boxes of ballpoint pens from 25,000 Cash Disbursement Cr Cash 25,000
Mickey Inc. Payment terms: COD Delivery Receipt
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July 22 Over the counter sale of 4 boxes of
ballpoint pens to Happy Company.
co rc 22,000
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Payment term: Cash Sales Invoice
Cost of merchandise was P 10,000
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July 23 Received 10 calculators from Plusminus 3,000
Corporation. Payment terms: 30 days. Receiving Report
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July 24 Sold 6 calculators to Joel Company. Joel 3,960
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picked up the merchandise from the store.
Payment Term: 15 days. Sales Invoice
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Cost of merchandise was P1,800
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Dr Utilities Expense 7,400
July 25 Paid electricity bill. 7,400 Check voucher Cr Notes Payable 7,400
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July 26 Received 2 defective calculators from Joel 1,320
Company. Cost of defective calculators is P
600 Receiving Report
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July 31 Over the counter cash withdrawal by the 10,000 Withdrawal Slip Cash Disbursement Dr Sy Drawings 10,000
owner, Winnie Sy, for her personal
Cr Cash 10,000
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expenses.
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Requirements:
1. Identify the following and indicate on the spaces provided:
a. Business or bank forms to be used by THE WEALTHY Co. to document the above transactions. See list of Business and Bank forms
below.
b. Journals (Special and General) to be used to record the original entry for the respective transactions.
2. Prepare the journal entry (debit-credit format) to record the above transactions. Use only the accounts listed on the chart of accounts given
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below.
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3. Based on your answer in 1b, record the transactions in the appropriate journals. Formats are also provided at the separate excel file
(Accounting Books)
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4. Post the journal entries in the appropriate subsidiary ledgers and general ledger accounts. Formats are also provided at the separate excel
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file. (Accounting Books)
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5. Summarize the ledger accounts and list the balances on the trial balance. (See the suggested Worksheet format)
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6. Record the following adjusting entries.
a. Accrual of one month rent
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b. One month depreciation of laptop computer. Estimated life is 5 years.
c. Accrue employee salary, P 7,000
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8. Prepare the financial statements from the trial balance.
Statement of Financial Position, Statement of Income, Statement of Cash Flow only.
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9. Prepare necessary closing entries and record on the general journal and ledger.
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10. Perform financial statement analysis on the completed financial statements.
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Note: Only vertical analysis is recommended because data is insufficient for horizontal analysis. Also, data provided is only for the first
month of operations therefore financial ratios may not be meaningful.
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Chart of Accounts
Account Number Account Name
1000 Cash
1200 Accounts Receivable
1201 Allowance for Bad Debts
1300 Inventory
1400 Prepaid Expenses
1600 Office Equipment
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1601 AccumDeprn - Off Eqpt
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1800 Land
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2000 Accounts Payable
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2100 Notes Payable
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2201 Salaries Payable
2202 Utilities Payable
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3000 Sy, Drawings
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3100 Sy, Capital
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Accounts Receivable - Subsidiary Ledger
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Customer ID Customer Name
Number
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1200-00001 Audrey Company
1200-00002 Aurora Company
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1200-00003 Happy Company
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1200-00004 Joel Company
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Account Number Account Name
4100 Sales
4101 Sales Returns and Allowances
4102 Sales Discount
5100 Cost of Sales
6100 Salaries Expense
6150 Supplies Expense
6200 Utilities Expense
6250 Travel Expense
6300 Rental Expense
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6350 Fuel Expense
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6400 Advertising Expense
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6450 Commissions Expense
6500 rs e
Depreciation Expense
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6700 Interest Expense
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Accounts Payable - Subsidiary Ledger
aC s
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Supplier ID Supplier Name
Number
2000-00001 Computershop Inc.
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2000-00002 Jude Corp.
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2000-00003 Plusminus Corporation
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BUSINESS/BANK FORMS TO BE USED:
1. Deposit Slip
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2. Check Deposit
3. Withdrawal Slip
4. Bank Check
5. Check Voucher
6. Purchase Order
7. Sales Invoice
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8. Official Receipt
9. Delivery Receipt
10. Receiving Report
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