ACCOUNTING FOR NON ACCOUNTANTS

FINAL EXAMINATION

Problem II

Oct 1 Purchased P 26, 000 worth of merchandise from Lacson Company, terms 1/10;
n/30.

3 Purchased merchandise from Ortiz Co., terms 2/10; n/30, P 10,000.

6 Purchased store supplies for cash from Ruiz Supplies, P 6,000.

12 Returned some of the merchandise received on Octber 3, P 6,000.

13 Paid Ortiz Co. for purchase on October 3.

15 Sold merchandise for cash, P 10,000.

16 Sold merchandise on credit, P 20,000, terms 1/5; n/30.

22 Received payment for merchandise sold to customer on Oct. 16, P 20,000.

23 Paid Lacson Company for merchandise purchased on October 1.

Required: Prepare the journal entries.

Problem II

1 2

Net Sales 100,000 B

Beginning Inventory 15,000 12,000
Net Purchases 55,000 C
Goods Available for Sale 70,000 D
Ending Inventory 10,000 25,000
Cost of Goods Sold 60,000 40,000
Gross Profit A 90,000
 ANSWER KEY:

Problem I.

Oct 1 Purchases 26,000

Accounts Payable 26,000

3 Purchases 10,000
Accounts Payable 10,000

6 Store Supplies 6,000

Cash 6,000

12 Accounts Payable 6,000

Purchase Returns & Allowances 6,000

13 Accounts Payable 4,000

Cash 3,980
Purchase Discount 20

15 Cash 10,000
Sales 10,000

16 Accounts Receivable 20,000

Sales 20,000

22 Cash 20,000
Accounts Receivable 20,000

23 Accounts Payable 26,000

Cash 26,000

Problem II.

A. 40,000

B. 130,000

C. 53,000

D. 65,000