PC Depot

Case 4-1
By Group 4:
Almeda, Gizelle
Datuin, Marione
Diaz, Lloyd
Lopez, Grace
Problem 2
Set up a ledger account (in T account form)
for each account named in the general
journal. Post entries 1 through 8 to these
accounts, using the entry number as a cross
reference.
 Cash
1 165,000 2 1,485

Bank Loan Payable

1 100,000

Proprietors Capital
1 65,000

Rent Expenses
2 1,485
 Cash
1 165,000 2 1,485

Bank Loan Payable

1 100,000

Proprietors Capital
1 65,000

Rent Expenses
2 1,485
For numbers 1 to 8:
Cash Bank Loan Payable
1 165,000 2 1,485 1 100,000
4 15,500
5 1,320 Proprietors Capital
6 935 1 65,000
7 1,100
8 275 Merchandise Inventory
3 137,500
Furniture and Fixtures
4 15,500 Accounts Payable
3 137,500
Rent Expenses
2 1,485 Office Supplies Expense
7 1,100
Advertising Expense
5 1,320 Utilities Expense
8 275
Wages Expense
6 935
Problem 3
Analyze the facts listed as 9 through 20,
resolving them into their debit and credit
elements.
Prepare Journal entries and post to the

ledger accounts (Do not prepare closing

entries)
Additional transactions:
Entry Amount
No. Account Cr.

9 Cash sales for September $ 38,000

10 Credit sales for September 14,850

11 Cash received from credit customers 3,614

Cash Sales
9 38,000
1 165,000 2 1,485
10 14,850
9 38,000 4 15,500
11 3,614 5 1,320
Accounts Receivable
6 935
10 14,850 11 3,614
7 1,100
8 275
12 96,195

12 Bills paid to merchandise supplier $ 96,195

13 New merchandise received on credit from supplier 49,940

Ms. Thompson ascertained the cost of merchandise
14 sold was 38,140

Cash
Merchandise Inventory
1 165,000 2 1,485 3 137,500 14 38,140
9 38,000 4 15,500 13 49,940
11 3,614 5 1,320
6 935 Accounts Payable
7 1,100 12 96,195 3 137,500
13 49,940
8 275
12 96,195 Cost of Sales
14 38,140

15 Wages aid to assistant $ 688

16 Wages earned but unpaid at the end of September 440

17 Rent paid for October 1,485

Cash Prepaid Rent
1 165,000 2 1,485 17 1,485
9 38,000 4 15,500
11 3,614 5 1,320
6 935 Wages Expense
7 1,100 6 935
8 275 15 688
12 96,195 16 440
15 688
Accrued Wages Prepaid Rent
16 440 17 1,485
 Insurance bill paid for one year (September 1 - August
18 31) $ 2,310

19 Bills received, but unpaid, from electric company 226

Cash Prepaid Insurance

1 165,000 2 1,485 18 2,310 23 193
9 38,000 4 15,500
11 3,614 5 1,320 Accounts Payable
12 96,195 3 137,500
6 935
13 49,940
7 1,100
19 226
8 275
12 96,195
Utilities Expense
15 688
8 275
17 1,485
18 2,310 19 226
 Purchased sign, paying $660 cash and agreeing to pay the 1,76
20 $1,100 balance by December 31 $0
Cash Accounts Payable
1 165,000 2 1,485 12 96,195 3 137,500
9 38,000 4 15,500 13 49,940
11 3,614 5 1,320 19 226
6 935 20 1,100
7 1,100
8 275 Furniture and Fixtures
12 96,195 4 15,500
15 688 20 1,760
17 1,485
18 2,310 **Costs for temporary signs are
20 660 considered advertising. Costs for
permanent signs (that last more
than a year) are not advertising, but
signs may be depreciated as long-
term assets.
General Journal