PERIODIC - TRANSACTIONS

JOURNAL ENTRIES
Kendra Raphia opened a merchandising business named Kendra Dress Shop. The operations began on
DATE DESCRIPTION PR DEBIT CREDIT
January 2, 2015 and the following transactions were completed during this month.
2015
Jan 2 Invested P 250,000 as her initial capital for the business named Kendra Dress Shop. Jan 2 Cash 110 P 250,000
3 Purchased merchandise for P 80,000 from Quiapo Market. The term s 2/15, n/30. Raphia, Capital 310 P 250,000
4 Paid an insurance in advance, P 5,000. To record investment of the
5 Bought goods for resale from Racal Store, a wholesaler for a total amount of P 16,000. owner to the business
Terms n/30.
6 Purchased merchandise from Snow White, P 20,000 in cash 3 Purchases 510 80,000
7 Purchased an office supplies, P 4,500. Accounts Payable 210 80,000
8 Returned defective merchandise to Quiapo Market P 3,000. To record purchased
9 Paid in full the account due to Quiapo Market, net of returns. merchandise on account from Quiapo
10 Sold merchandise to Customers AA amounting to P 35,000. Terms 3/15, n/30. Market
15 Customer AA returned some of the goods purchased on January 10 worth P 2,000.
16 Customer AA paid in full for his purchases on January 10, net of returns. 4 Prepaid Insurance 130 5,000
17 Received cash loan from RCBC P 5,000. Cash 110 5,000
19 Sold merchandise to customer BB worth P 25,000. Made a down payment of P 5,000 and To record advance payment for
the balance is on account with the terms 3/20, n/30. the insurance
20 Paid the following expenses in cash, salaries P 3,500, utilities P 1,500, and rent P 2,100
21 Withdrew P 3,500 cash from the business for personal use 5 Purchases 510 16,000
22 Paid the freight cost for the purchases on January 3, P 800. Accounts Payable 210 16,000
30 Paid the freight cost for the sold goods on January 10, P 1,100. To records bought goods on
31 Purchased office equipment P 56,000 account from Racal Store
31 Merchandise inventory ending P 10,000
6 Purchases 510 20,000
CHART OF ACCOUNTS Cash 110 20,000
To record purchased
Account Account Title Account Account Title merchandise on cash from Snow
Number Number White
110 Cash 420 Sales Return and Allowances
120 Accounts Receivable 430 Sales Discount 7 Office Supplies 140 4,500
130 Prepaid Insurance 510 Purchases Cash 110 4,500
140 Office Supplies 520 Purchases Return and Allowances To record purchased office
150 Merchandise Inventory 530 Purchases Discount supplies on cash
160 Office Equipment 540 Freight In
210 Accounts Payable 610 Salaries Expense 8 Accounts Payable 210 3,000
220 Notes Payable 620 Utilities Expense Purchase Return and Allowances 520 3,000
310 Raphia, Capital 630 Rent Expense To record return of defective
320 Raphia, Drawing 640 Freight Out merchandise to Quiapo Market
410 Sales 710 Income Summary
 9 Accounts Payable 210 P 77,000 To record drawing of the
Purchase Discount 530 P 1,540 owner for personal use
Cash 110 75,460
To record full payment of the 22 Freight In 540 P 800
account due to Quiapo Market Cash 110 P 800
To record payment for
10 Accounts Receivable 120 35,000 transportation cost on purchased on
Sales 410 35,000 Jan.3
To record sold merchandise to
AA Company on account 30 Freight Out 640 1,100
Cash 110 1,100
15 Sales Return and Allowances 420 2,000 To record payment for
Accounts Receivable 120 2,000 transportation cost of sold
To record returned goods from merchandise on Jan.10
AA Company
31 Office Equipment 160 56,000
16 Cash 110 32,010 Cash 110 56,000
Sales Discount 430 990 To record bought office
Accounts Receivable 120 33,000 equipment on cash.
To record full payment of AA
Company
LEDGER
17 Cash 110 5,000
Notes Payable 220 5,000 Account Name: Cash Account Number: 110
To record received cash loan
Date Items PR Debit Credit Balance
from RCBC
2015 Debit Credit
Jan 2 Capital J1 250,000 250,000
19 Cash 110 5,000
4 Prepaid Insurance J1 5,000 245,000
Accounts Receivable 120 20,000
Sales 410 6 Goods J1 20,000 225,000
25,000
To record sold merchandise to 7 Supplies J1 4,500 220,500
customer BB on cash and on account 9 Payment-Quiapo Market J2 75,460 145,040
16 Collection J2 32,010 177,050
20 Salaries Expense 610 3,500 17 Notes-Loan J2 5,000 182,050
Utilities Expense 620 1,500 19 Income J2 5,000 187,050
Rent Expense 630 2,100 20 Expenses J2 7,100 179,950
Cash 110 7,100 21 Drawing J2 3,500 176,450
To record payment for the
expenses 22 Transportation-purchased J3 800 175,650
30 Transportation-sold J3 1.100 174,550
21 Raphia, Drawing 320 3,500 31 Office Equipment J3 56,000 118,550
Cash 110 3,500
 2015 Debit Credit
Jan 2 Cash J1 250,000 250,000
31 Raphia, Drawing J4 3,500 246,500
Account Name: Accounts Receivable Account Number: 120 31 Income and Loss J4 53,450 193,050
Date Items PR Debit Credit Balance Summary
2015 Debit Credit
Jan10 Sold J2 35,000 35,000 Account Name: Raphia, Drawing Account Number: 320
15 Returned-customer AA J2 2,000 33,000 Date Items PR Debit Credit Balance
16 Cash J2 33,000 0 2015 Debit Credit
17 Sold J2 20,000 20,000 Jan21 Cash J2 3,500 3,500
31 Income and Loss J4 3500 0
Account Name: Prepaid Insurance Account Number: 130 Summary
Date Items PR Debit Credit Balance
2015 Debit Credit Account Name: Sales Account Number: 410
Jan 4 Cash J1 5,000 5,000 Date Items PR Debit Credit Balance
2015 Debit Credit
Account Name: Office Supplies Account Number: 140 Jan10 On account J2 35,000 35,000
Date Items PR Debit Credit Balance 19 Cash and on account J2 25,000 60,000
2015 Debit Credit 31 Income and Loss J4 60,000 0
Jan 7 Cash J! 4,500 4,500 Summary

Account Name: Office Equipment Account Number: 160 Account Name: Sales Return and Allowances Account Number: 420
Date Items PR Debit Credit Balance Date Items PR Debit Credit Balance
2015 Debit Credit 2015 Debit Credit
Jan31 Cash J3 56,000 56,000 Jan15 On account J2 2,000 2,000
31 Income and Loss J4 2,000 0
Account Name: Accounts Payable Account Number: 210 Summary
Date Items PR Debit Credit Balance
2015 Debit Credit Account Name: Sales Discount Account Number: 430
Jan 3 Goods J1 80,000 80,000 Date Items PR Debit Credit Balance
5 Goods J1 16,000 96,000 2015 Debit Credit
8 Returned-supplier J1 3,000 93,000 Jan16 On account J2 990 990
9 Cash J2 77,000 16,000 31 Income and Loss J4 990 0
Summary
Account Name: Notes Payable Account Number: 220
Date Items PR Debit Credit Balance Account Name: Purchases Account Number: 510
2015 Debit Credit Date Items PR Debit Credit Balance
Jan17 Cash J2 5,000 5,000 2015 Debit Credit
Jan 3 On account J1 80,000 80,000
Account Name: Raphia, Capital Account Number: 310 5 On account J1 16,000 96,000
Date Items PR Debit Credit Balance 6 Cash J1 20,000 116,000
 31 Income and Loss J4 116,000 0 Date Items PR Debit Credit Balance
Summary 2015 Debit Credit
Jan20 Cash J2 2,100 2,100
Account Name: Purchase Return and Allowances Account Number: 520 31 Income and Loss J4 2,100 0
Date Items PR Debit Credit Balance Summary
2015 Debit Credit
Jan 8 On account J1 3,000 3,000 Account Name: Freight Out Account Number: 640
31 Income and Loss J4 3,000 0 Date Items PR Debit Credit Balance
Summary 2015 Debit Credit
Jan30 Cash J3 1,100 1,100
31 Income and Loss J4 1,100 0
Summary
Account Name: Purchase Discount Account Number: 530
Date Items PR Debit Credit Balance
2015 Debit Credit
Jan 9 On account J2 1,540 1,540
31 Income and Loss J4 1,540 0
Summary

Account Name: Freight In Account Number: 540 Account Name: Income Summary Account Number: 710
Date Items PR Debit Credit Balance Date Items PR Debit Credit Balance
2015 Debit Credit 2015 Debit Credit
Jan2 Cash J3 800 800 Jan31 Net Sales J4 57,010 57,010
2 Cost of Sales J4 102,260 45,250
31 Income and Loss Summary J4 800 0 Expenses J4 8,200 53,450
Net Income J4 53450 0
Account Name: Salaries Expense Account Number: 610
Date Items PR Debit Credit Balance
2015 Debit Credit TRIAL BALANCE
Jan20 Cash J2 3,500 3,500
31 Income and Loss J4 3,500 0 Kendra Dress Shop
Summary Trial Balance
January 31, 2015
Account Name: Utilities Expense Account Number: 620
Date Items PR Debit Credit Balance Account No. Account Name Debit Credit
2015 Debit Credit 110 Cash P 118,550
Jan20 Cash J2 1,500 1,500 120 Accounts Receivable 20,000
31 Income and Loss J4 1,500 0 130 Prepaid Insurance 5,000
Summary 140 Office Supplies 4,500
160 Office Equipment 56,000
210 Accounts Payable P 16,000
Account Name: Rent Expense Account Number: 630
220 Notes Payable 5,000
310 Raphia, Capital 250,000 Kendra Dress Shop
320 Raphia, Drawing 3,500 Statement of Comprehensive Income
410 Sales 60,000 For the month ended January 31, 2015
420 Sales Return and Allowances 2,000
430 Sales Discount 990 Sales P 60,000
510 Purchases 116,000 Less: Sales Return and Allowances P 2,000
520 Purchase Return and Allowances 3,000 Sales Discount 990 2,990
530 Purchase Discount 1,540 Net Sales 57,010
540 Freight In 800 Less: Cost of Sales 102,260
610 Salaries Expense 3,500 Gross Profit (45,250)
620 Utilities Expense 1,500 Less: Operating Expenses
630 Rent Expense 2,100 Salaries Expense 3,500
640 Freight Out 1,100 . Utilities Expense 1,500
Total P 335,540 P 335,540 Rent Expense 2,100
Freight Out 1,100 8,200
Net Loss P (53,450)

FINANCIAL STATEMENT 3.STATEMENT OF OWNER’S EQUITY

Kendra Dress Shop
Statement of Owner’s Equity
1. STATEMENT OF COST OF GOODS SOLD For the month ended January 31, 2015

Kendra Dress Shop Raphia, Capital, beginning P 250,000

Statement of Cost of Goods Sold Less: Net Loss 13,000
For the month ended January 31, 2015 Total 196,550
Less: Raphia, Drawing 3,500
Merchandise Inventory, beginning Raphia, Capital, ending P 193,050
Add: Purchases P 116,000
Freight In 800 P 116,800
Less: Purchase Return and Allowances 3,000 4. STATEMENT OF CASH FLOW
Purchase Discount 1,540 4,540 Kendra Dress Shop
Total Goods Available for sale 112,260 Statement of Cash Flow
Less: Merchandise Inventory, ending 10,000 For the month ended January 31, 2015
Cost of Sales P 102,260
Operating Activities
Cash Received from
Sales P 5,000
Accounts Receivable 32,010 P 37,010
2. STATEMENT OF COMPREHENSIVE INCOME
Cash Payment for
Salaries Expense 3,500
 Utilities Expense 1,500 Total Current Liabilities 21,000
Rent Expense 2,100 Owner’s Equity
Freight Out 1,100 Raphia, Capital, Ending 193,050
Office Supplies 4,500 Total Liabilities and Owner’s Equity P 214,050
Freight In 800
Purchases 20,000
Accounts Payable 75,460
Prepaid Insurance 5,000 113,960
Net Cash Flow from Operating Activities P (76,950)
Investing Activities
Office Equipment 56,000 CLOSING ENTRIES
Net Cash Flow from Investing Activities (56,000)
Financing Activities DATE Description PR Debit Credit
Raphia, Capital 250,000 2015
Add: Notes Payable 5,000 Jan 31 Sales 410 P 60,000
Less: Raphia, Drawing 3,500 Income and Loss Summary 710 P 57,010
Net Cash Flow from Financing Activities 251,500 Sales Return and Allowances 420 2,000
Cash Flow, Ending P 118,550 Sales Discount 430 990
To close the credit account

5. STATEMENT OF FINANCIAL POSITION 31 Merchandise Inventory 150 P 10,000

Purchase Return and Allowances 520 3,000
Kendra Dress Shop
Purchase Discount 530 1.540
Statement of Financial Position
Income and Loss Summary 710 102,260
As of January 31, 2015
Purchases 510 P 116,000
Freight In 540
Assets 800
To close the debit account
Current Assets
Cash P 118,550
Accounts Receivable 20,000 31 Income and Loss Summary 710 8,200
Office Supplies 4,500 Salaries Expense 610 3,500
Prepaid Insurance 5,000 Utilities Expense 620 1,500
Merchandise Inventory 10,000 Rent Expense 630 2,100
Total Current Assets P 158,050 Freight Out 640 1,100
Non-Current Assets To close the expense account
Office Equipment 56,000
Total Non-Current Assets 56,000 31 Raphia, Capital 310 53,450
Total Assets P 214,050 Income and Loss Summary 710 53,450
To record the net loss to capital
Liabilities and Owner’s Equity account
Current Liabilities
Notes Payable 5,000 31 Raphia, Capital 310 3,500
Accounts Payable 16,000 Raphia, Drawing 320 3,500
 To close the drawing account 19 Sold merchandise to customer BB worth P 25,000 with a cost of P17,000. Made a down
payment of P 5,000 and the balance is on account with the terms 3/20, n/30.
20 Paid the following expenses in cash, salaries P 3,500, utilities P 1,500, and rent P 2,100
21 Withdrew P 3,500 cash from the business for personal use
POST-CLOSING TRIAL BALANCE
22 Paid the freight cost for the purchases on January 3, P 800.
30 Paid the freight cost for the sold goods on January 10, P 1,100.
Kendra Dress Shop
31 Purchased office equipment P 56,000
Trial Balance
31 Merchandise inventory ending P 10,000
January 31, 2015

Account No. Account Name Debit Credit CHART OF ACCOUNTS

110 Cash P 118,550
120 Accounts Receivable 20,000 Account Account Title Account Account Title
130 Prepaid Insurance 5,000 Number Number
140 Office Supplies 4,500 110 Cash 320 Raphia, Drawing
150 Merchandise Inventory 10,000 120 Accounts Receivable 410 Sales
160 Office Equipment 56,000 130 Prepaid Insurance 420 Sales Return and Allowances
210 Accounts Payable P 16,000 140 Office Supplies 430 Sales Discount
220 Notes Payable 5,000 150 Merchandise Inventory 510 Cost of Sales
310 Raphia, Capital 193,050 160 Office Equipment 610 Salaries Expense
P 214,050 P 214,050 210 Accounts Payable 620 Utilities Expense
220 Notes Payable 630 Rent Expense
PERPETUAL - TRANSACTIONS 310 Raphia, Capital 640 Freight Out

Kendra Raphia opened a merchandising business named Kendra Dress Shop. The operations began on JOURNAL ENTRIES
January 2, 2015 and the following transactions were completed during this month.
DATE DESCRIPTION PR DEBIT CREDIT
Jan 2 Invested P 250,000 as her initial capital for the business named Kendra Dress Shop. 2015
3 Purchased merchandise for P 80,000 from Quiapo Market. The term s 2/15, n/30. Jan 2 Cash 110 P 250,000
4 Paid an insurance in advance, P 5,000. Raphia, Capital 310 P 250,000
5 Bought goods for resale from Racal Store, a wholesaler for a total amount of P 16,000. To record investment of the
Terms n/30. owner to the business
6 Purchased merchandise from Snow White, P 20,000 in cash
7 Purchased an office supplies, P 4,500. 3 Merchandise Inventory 150 80,000
8 Returned defective merchandise to Quiapo Market P 3,000. Accounts Payable 210 80,000
9 Paid in full the account due to Quiapo Market, net of returns. To record purchased
10 Sold merchandise to Customers AA amounting to P 35,000 with a cost of P 20,500. Terms merchandise on account from Quiapo
3/15, n/30. Market
15 Customer AA returned some of the goods purchased on January 10 worth P 2,000 with a cost
of P1,200 . 4 Prepaid Insurance 130 5,000
16 Customer AA paid in full for his purchases on January 10, net of returns. Cash 110 5,000
17 Received cash loan from RCBC P 5,000. To record advance payment for
the insurance
 5 Merchandise Inventory 150 16,000 16 Cash 110 32,010
Accounts Payable 210 16,000 Sales Discount 430 990
To records bought goods on Accounts Receivable 120 33,000
account from Racal Store To record full payment of AA
Company
6 Merchandise Inventory 150 20,000
Cash 110 20,000 17 Cash 110 5,000
To record purchased Notes Payable 220 5,000
merchandise on cash from Snow To record received cash loan
White from RCBC

7 Office Supplies 140 4,500 19 Cash 110 5,000

Cash 110 4,500 Accounts Receivable 120 20,000
To record purchased office Cost of Sales 510 17,000
supplies on cash Sales 410 25,000
Merchandise Inventory 150 17,000
8 Accounts Payable 210 3,000 To record sold merchandise to
Merchandise Inventory 150 3,000 customer BB on cash and on account
To record return of defective
merchandise to Quiapo Market 20 Salaries Expense 610 3,500
Utilities Expense 620 1,500
Rent Expense 630 2,100
9 Accounts Payable 210 P 77,000 Cash 110 7,100
Merchandise Inventory 150 P 1,540 To record payment for the
Cash 110 75,460 expenses
To record full payment of the
account due to Quiapo Market 21 Raphia, Drawing 320 P 3,500
Cash 110 P 3,500
10 Accounts Receivable 120 35,000 To record drawing of the
Cost of Sales 510 20,500 owner for personal use
Sales 410 35,000
Merchandise Inventory 150 20,500 22 Merchandise Inventory 150 800
To record sold merchandise to Cash 110 800
AA Company on account To record payment for
transportation cost on purchased on
15 Sales Return and Allowances 420 2,000 Jan.3
Merchandise Inventory 150 1,200
Accounts Receivable 120 2,000 30 Freight Out 640 1,100
Cost of Sales 510 1,200 Cash 110 1,100
To record returned goods from To record payment for
AA Company transportation cost of sold
 merchandise on Jan.10 Jan 7 Cash J! 4,500 4,500

31 Office Equipment 160 56,000 Account Name: Merchandise Inventory Account Number: 160
Cash 110 56,000 Date Items PR Debit Credit Balance
To record bought office 2015 Debit Credit
equipment on cash. Jan 3 On account J1 80,000 80,000
5 On account J1 16,000 96,000
LEDGER 6 Cash J1 20,000 116,000
Account Name: Cash Account Number: 110 8 On account J1 3,000 113,000
Date Items PR Debit Credit Balance 9 On account J2 1,540 111,460
2015 Debit Credit 10 On account J2 20,500 90,960
Jan 2 Capital J1 250,000 250,000
15 On account J2 1,200 82,160
4 Prepaid Insurance J1 5,000 245,000
19 Cash and On account J2 17,000 75,160
6 Goods J1 20,000 225,000
22 Cash J3 800 75,960
7 Supplies J1 4,500 220,500
9 Payment-Quiapo Market J2 75,460 145,040 Account Name: Office Equipment Account Number: 160
16 Collection J2 32,010 177,050 Date Items PR Debit Credit Balance
17 Notes-Loan J2 5,000 182,050 2015 Debit Credit
19 Income J2 5,000 187,050 Jan31 Cash J3 56,000 56,000
20 Expenses J2 7,100 179,950
21 Drawing J2 3,500 176,450
22 Goods J3 800 175,650
30 Transportation-sold J3 1.100 174,550
31 Office Equipment J3 56,000 118,550
Account Name: Accounts Receivable Account Number: 120
Date Items PR Debit Credit Balance Account Name: Accounts Payable Account Number: 210
2015 Debit Credit Date Items PR Debit Credit Balance
Jan10 Sold J2 35,000 35,000 2015 Debit Credit
15 Returned-customer AA J2 2,000 33,000 Jan 3 Goods J1 80,000 80,000
16 Cash J2 33,000 0 5 Goods J1 16,000 96,000
17 Sold J2 20,000 20,000 8 Returned-supplier J1 3,000 93,000
9 Cash J2 77,000 16,000
Account Name: Prepaid Insurance Account Number: 130
Date Items PR Debit Credit Balance Account Name: Notes Payable Account Number: 220
2015 Debit Credit Date Items PR Debit Credit Balance
Jan 4 Cash J1 5,000 5,000 2015 Debit Credit
Jan17 Cash J2 5,000 5,000
Account Name: Office Supplies Account Number: 140
Date Items PR Debit Credit Balance Account Name: Raphia, Capital Account Number: 310
2015 Debit Credit Date Items PR Debit Credit Balance
2015 Debit Credit Jan10 Goods-sold J2 20,500 20,500
Jan 2 Cash J1 250,000 250,000 15 Goods-returned J2 1,200 19,300
31 Raphia, Drawing J4 3,500 246,500 19 Goods-sold J2 17,000 36,300
31 Income and Loss J4 12,510 259,010
Summary
Account Name: Salaries Expense Account Number: 610
Account Name: Raphia, Drawing Account Number: 320 Date Items PR Debit Credit Balance
Date Items PR Debit Credit Balance 2015 Debit Credit
2015 Debit Credit Jan20 Cash J2 3,500 3,500
Jan21 Cash J2 3,500 3,500
31 Income and Loss J4 3,500 0
31 Income and Loss J4 3500 0 Summary
Summary
Account Name: Utilities Expense Account Number: 620
Account Name: Sales Account Number: 410 Date Items PR Debit Credit Balance
Date Items PR Debit Credit Balance 2015 Debit Credit
2015 Debit Credit Jan20 Cash J2 1,500 1,500
Jan10 On account J2 35,000 35,000
31 Income and Loss J4 1,500 0
19 Cash and on account J2 25,000 60,000 Summary
31 Income and Loss J4 60,000 0
Summary Account Name: Rent Expense Account Number: 630
Date Items PR Debit Credit Balance
Account Name: Sales Return and Allowances Account Number: 420 2015 Debit Credit
Date Items PR Debit Credit Balance Jan20 Cash J2 2,100 2,100
2015 Debit Credit 31 Income and Loss J4 2,100 0
Jan15 On account J2 2,000 2,000 Summary
31 Income and Loss J4 2,000 0
Summary Account Name: Freight Out Account Number: 640
Date Items PR Debit Credit Balance
2015 Debit Credit
Jan30 Cash J3 1,100 1,100
31 Income and Loss J4 1,100 0
Account Name: Sales Discount Account Number: 430 Summary
Date Items PR Debit Credit Balance
2015 Debit Credit
Jan16 On account J2 990 990
31 Income and Loss J4 990 0
Summary
Account Name: Income Summary Account Number: 710
Account Name: Cost of Sales Account Number: 510 Date Items PR Debit Credit Balance
Date Items PR Debit Credit Balance 2015 Debit Credit
2015 Debit Credit
 Kendra Dress Shop
Statement of Comprehensive Income
For the month ended January 31, 2015

Sales P 60,000
Less: Sales Return and Allowances P 2,000
TRIAL BALANCE Sales Discount 990 2,990
Net Sales 57,010
Kendra Dress Shop
Less: Cost of Sales 36,300
Trial Balance
Gross Profit 20,710
January 31, 2015
Less: Operating Expenses
Salaries Expense 3,500
Account No. Account Name Debit Credit
Utilities Expense 1,500
110 Cash P 118,550
Rent Expense 2,100
120 Accounts Receivable 20,000
Freight Out 1,100 8,200
130 Prepaid Insurance 5,000
Net Income P 12,510
140 Office Supplies 4,500
150 Merchandise Inventory 75,960
160 Office Equipment 56,000
210 Accounts Payable P 16,000
220 Notes Payable 5,000 2.STATEMENT OF OWNER’S EQUITY
310 Raphia, Capital 250,000
320 Raphia, Drawing 3,500 Kendra Dress Shop
410 Sales 60,000 Statement of Owner’s Equity
420 Sales Return and Allowances 2,000 For the month ended January 31, 2015
430 Sales Discount 990
510 Cost of Sales 36,300 Raphia, Capital, beginning P 250,000
610 Salaries Expense 3,500 Add: Net Loss 12,510
620 Utilities Expense 1,500 Total 262,510
630 Rent Expense 2,100 Less: Raphia, Drawing 3,500
640 Freight Out 1,100 . Raphia, Capital, ending P 259,010
Total P 331,000 P 331,000

FINANCIAL STATEMENT
3. STATEMENT OF CASH FLOW
1. STATEMENT OF COMPREHENSIVE INCOME
 Kendra Dress Shop Kendra Dress Shop
Statement of Cash Flow Statement of Financial Position
For the month ended January 31, 2015 As of January 31, 2015

Operating Activities Assets

Cash Received from Current Assets
Sales P 5,000 Cash P 118,550
Accounts Receivable 32,010 P 37,010 Accounts Receivable 20,000
Cash Payment for Office Supplies 4,500
Salaries Expense 3,500 Prepaid Insurance 5,000
Utilities Expense 1,500 Merchandise Inventory 75,960
Rent Expense 2,100 Total Current Assets P 224,010
Freight Out 1,100 Non-Current Assets
Office Supplies 4,500 Office Equipment 56,000
Merchandise Inventory 20,800 Total Non-Current Assets 56,000
Accounts Payable 75,460 Total Assets P 280,010
Prepaid Insurance 5,000 113,960
Net Cash Flow from Operating Activities P (76,950) Liabilities and Owner’s Equity
Investing Activities Current Liabilities
Office Equipment 56,000 Notes Payable 5,000
Net Cash Flow from Investing Activities (56,000) Accounts Payable 16,000
Financing Activities Total Current Liabilities 21,000
Raphia, Capital 250,000 Owner’s Equity
Add: Notes Payable 5,000 Raphia, Capital, Ending 259,010
Less: Raphia, Drawing 3,500 Total Liabilities and Owner’s Equity P 280,010
Net Cash Flow from Financing Activities 251,500
Cash Flow, Ending P 118,550
CLOSING ENTRIES
DATE Description PR Debit Credit
2015
Jan 31 Sales 410 P 60,000
Income and Loss Summary 710 P 57,010
Sales Return and Allowances 420 2,000
Sales Discount 430 990
To close the credit account

31 Merchandise Inventory P 75,960

Income and Loss Summary 36,300
Cost of Sales 112,260
To close the debit account
4. STATEMENT OF FINANCIAL POSITION
31 Income and Loss Summary 710 8,200
 Salaries Expense 610 3,500
Utilities Expense 620 1,500
Rent Expense 630 2,100
Freight Out 640 1,100
To close the expense account

31 Income and Loss Summary 310 12,510

Raphia, Capital 710 12,510
To record the net income to
capital account

31 Raphia, Capital 310 3,500

Raphia, Drawing 320 3,500
To close the drawing account

POST-CLOSING TRIAL BALANCE

Kendra Dress Shop
Trial Balance
January 31, 2015

Account No. Account Name Debit Credit

110 Cash P 118,550
120 Accounts Receivable 20,000
130 Prepaid Insurance 5,000
140 Office Supplies 4,500
150 Merchandise Inventory 75,960
160 Office Equipment 56,000
210 Accounts Payable P 16,000
220 Notes Payable 5,000
310 Raphia, Capital 259,010
P 280,010 P 280,010