CASSIDY CHOCOLATE DISTRIBUTORS (Periodic Inventory System)

CHART OF ACCOUNTS
Use for journalization and Posting to the Ledger
100 ASSETS 400 INCOME
101 CASH 401 SALES
110 ACCOUNTS RECEIVABLE 402 SALES RETURNS & ALLOWANCES
120 MERCHANDISE INVENTORY 403 SALES DISCOUNTS
130 SUPPLIES 500 EXPENSES
150 EQUIPMENT 501 PURCHASES
200 LIABILITIES 502 PURCHASE RETURNS AND ALLOWANCES
210 ACCOUNTS PAYABLE 503 PURCHASE DISCOUNTS
220 NOTES PAYABLE 504 FREIGHT IN
300 EQUITY 510 ADVERTISING EXPENSE
310 CASSIDY, CAPITAL 515 FREIGHT OUT
320 CASSIDY, DRAWINGS 520 RENT EXPENSE
525 SALARIES EXPENSE
530 UTILITIES EXPENSE
600 INCOME SUMMARY
CASE PROBLEM: CASSIDY CHOCOLATE DISTRIBUTORS CO. (Periodic, year 2024)

June 1 Cassidy invested P66,000 in her business Chocolate Distributors.

2 Purchased computer equipment for P12,000 cash.
4 Bought merchandise on credit to Hilltop Co., P16,500, terms 2/10,n/30
4 Boght office supplies for cash P500.
5 Sold merchandise on account, P17,500. FOB destination, terms 2/10,n/30.
6 Paid P300 freight on June 5 sale.
7 Received credit from Hiltop Co for merchandise returned P500.
13 Paid Hilltop Co.
14 Collected from June 5 customers.
15 Bought merchandise P14,000 for cash.
15 Paid salaries P3,000.
17 Borrowed money from Pilipinas Bank and signed a promissory note, P18,000
18 Received refund from supplier of June 15, P450.
20 Bought merchandise from Downtown Co, P15,500, FOB Shipping point,
terms 2/10, n/30.
21 Paid freight on June 20 purchase, P600.
22 Sold merchandise for cash P40,200.
25 Purchase merchandise for cash P16,400.
27 Paid Downtown Co, P10,000. No discount allowed on partial payment.
29 Cassidy withdrew cash from the business, P3,006.
29 Gave refund to cash customers for defective merchandise, P700.
30 Sold merchandise on account, P14,800, n/30.
30 Paid the following : Advertising P2,000; Rent P600; Utilities P2500
Salaries, P2,500.
30 Inventory June 30, P15,000.
GENERAL JOURNAL
PAGE NUMBER : GJ-1
CURRENT JOURNAL ENTRIES
DATE DESCRIPTION REF DEBIT CREDIT
June 1 Cash 101 66,000
Cassidy, capital 310 66,000
Initial investment

2 Equipment 150 12,000

Cash 101 12,000
Purchase computers

4 Purchases 501 16,500

Accounts Payable 210 16,500
Hilltop Co, 2/10; n/30

4 Supplies 130 500

Cash 101 500
Bought supplies

5 Accounts Receivable 110 17,500

Sales 401 17,500
Sales on account 2/10; n/30

6 Freight Out 515 300

Cash 101 300
Freight on June 5 sales

7 Accounts Payable 210 500

Purchase Returns & Allowances 502 500
Received credit from Hilltop
13 Accounts Payable 210 16,000
Purchase Discounts 503 320
Cash 101 15,680
Paid Hilltop Co.

14 Cash 101 17,150

Sales Discounts 403 350
Accounts Receivable 110 17,500
Collections from June 5 customers

15 Purchases 501 14,000

Cash 101 14,000
Bought merchandise for cash

15 Salaries Expense 525 3,000

Cash 101 3,000
Paid salaries

17 Cash 101 18,000

Notes Payable 220 18,000
Signed promissory note for loan

18 Cash 101 450

Purchase Returns & Allowances 502 450
Refund from supplier of June 15

20 Purchases 501 15,500

Accounts Payable 210 15,500
Downtown Co, 2/10; n/30

21 Freight In 504 600

Cash 101 600
 Paid freight of June 20 purchase

22 Cash 101 40,200

Sales 401 40,200
Sold merchandise for cash

25 Purchases 501 16,400

Cash 101 16,400
Bought merchandise for cash

27 Accounts Payable 210 10,000

Cash 101 10,000
Paid Downtown Co

29 Cassidy, drawings 320 3,006

Cash 101 3,006
Withdrawal for personal use

29 Sales Returns & Allowances 402 700

Cash 101 700
Refund to cash customers

30 Accounts Receivable 110 14,800

Sales 401 14,800
Sales on account

30 Advertising Expense 510 2,000

Rent Expense 520 600
Salaries Expense 525 2,500
Utilities Expense 530 2,500
Cash 101 7,600
Month-end payment of expenses
GENERAL JOURNAL
PAGE NUMBER : GJ5 CASH
Account 101 Balance
Date ITEM Post DEBIT CREDIT Debit Credit
June 1 GJ-1 66,000 66,000
2 GJ-1 12,000 54,000
4 GJ-1 500 53,500
6 GJ-1 300 53,200
13 GJ-1 15,680 37,520
14 GJ-1 17,150 54,670
15 GJ-1 14,000 40,670
15 GJ-1 3,000 37,670
17 GJ-1 18,000 55,670
18 GJ-1 450 56,120
21 GJ-1 600 55,520
22 GJ-1 40,200 95,720
25 GJ-1 16,400 79,320
27 GJ-1 10,000 69,320
29 GJ-1 3,006 66,314
29 GJ-1 700 65,614
30 GJ-1 7,600 58,014

DATE Account 110 ACCOUNTS RECEIVABLE

BALANCE
Item Post Debit Credit Debit Credit
June 5 GJ-1 17,500 17,500
14 GJ-1 17,500 0
30 GJ-1 14,800 14,800
DATE Account 120 MERCHANDISE INVENTORY
BALANCE
Item Post Debit Credit Debit Credit
June 30 GJ-1 15,000 15,000

DATE Account 130 SUPPLIES

BALANCE
Item Post Debit Credit Debit Credit
June 4 GJ-1 500 500

DATE Account 150 EQUIPMENT

BALANCE
Item Post Debit Credit Debit Credit
June 2 GJ-1 12,000 12,000

DATE Account 210 ACCOUNTS PAYABLE

BALANCE
Item Post Debit Credit Debit Credit
June 4 GJ-1 16,500 16,500
7 500 16,000
13 16,000 0
20 15,500 15,500
27 10,000 5,500
DATE Account 220 NOTES PAYABLE
BALANCE
Item Post Debit Credit Debit Credit
June 2 GJ-1 18,000 18,000

DATE Account 310 CASSIDY, CAPITAL

BALANCE
Item Post Debit Credit Debit Credit
June 2 GJ-1 66,000 66,000

DATE Account 320 CASSIDY, DRAWING

BALANCE
Item Post Debit Credit Debit Credit
June 29 GJ-1 3,006 3,006
Closing 3,006 0

DATE Account 401 SALES

BALANCE
Item Post Debit Credit Debit Credit
June 5 GJ-1 17,500 17,500
22 GJ-1 40,200 57,700
30 GJ-1 14,800 72,500
30 Closing 72,500 0

DATE Account 402 SALES RETURNS & ALLOWANCES

BALANCE
 Item Post Debit Credit Debit Credit
June 29 GJ-1 700 700
30 Closing 700 0

DATE Account 403 SALES DISCOUNTS

BALANCE
Item Post Debit Credit Debit Credit
June 14 GJ-1 350 350
30 Closing 350 0

DATE Account 501 PURCHASES

BALANCE
Item Post Debit Credit Debit Credit
June 4 GJ-1 16,500 16,500
15 GJ-1 14,000 30,500
20 GJ-1 15,500 46,000
25 GJ-1 16,400 62,400
30 Closing 62,400 0

DATE Account 502 PURCHASE RETURNS & ALLOWANCES

BALANCE
Item Post Debit Credit Debit Credit
June 7 GJ-1 500 500
18 450 950
30 Closing 950 0

DATE Account 503 PURCHASE DISCOUNTS

BALANCE
 Item Post Debit Credit Debit Credit
June 13 GJ-1 320 320
30 Closing 320 0

DATE Account 504 FREIGHT IN

BALANCE
Item Post Debit Credit Debit Credit
June 21 GJ-1 600 600
30 Closing 600 0

DATE Account 510 ADVERTISING EXPENSE

BALANCE
Item Post Debit Credit Debit Credit
June 30 GJ-1 2,000 2,000
30 Closing 2,000 0

DATE Account 515 FREIGHT OUT

BALANCE
Item Post Debit Credit Debit Credit
June 30 GJ-1 300 300
30 Closing 300 0

DATE Account 520 RENT EXPENSE

BALANCE
Item Post Debit Credit Debit Credit
June 30 GJ-1 600 600
30 Closing 600 0
DATE Account 525 SALARIES EXPENSE
BALANCE
Item Post Debit Credit Debit Credit
June 15 GJ-1 3,000 3,000
30 GJ-1 2,500 5,500
30 Closing 5,500 0

DATE Account 530 UTILITIES EXPENSE

BALANCE
Item Post Debit Credit Debit Credit
June 30 GJ-1 2,500 2,500
30 Closing 2,500 0

DATE Account 600 INCOME SUMMARY

BALANCE
Item Post Debit Credit Debit Credit
June 30 GJ-1 71,450 71,450
30 GJ-1 46,730 24,720
30 GJ-1 10,900 13,820
30 Closing GJ-1 13,820 0
CASSIDY CHOCOLATE DISTRIBUTORS
TRIAL BALANCE
30-Jun-24
ACCOUNT TITLES DR CR
101 CASH 58,014
110 ACCOUNTS RECEIVABLE 14,800
120 MERCHANDISE INVENTORY
130 SUPPLIES 500
150 EQUIPMENT 12,000
210 ACCOUNTS PAYABLE 5,500
220 NOTES PAYABLE 18,000
310 CASSIDY, CAPITAL 66,000
320 CASSIDY, DRAWINGS 3,006
401 SALES 72,500
402 SALES RETURNS & ALLOWANCES 700
403 SALES DISCOUNTS 350
501 PURCHASES 62,400
502 PURCHASE RETURNS AND ALLOWANCES 950
503 PURCHASE DISCOUNTS 320
504 FREIGHT IN 600
510 ADVERTISING EXPENSE 2,000
515 FREIGHT OUT 300
520 RENT EXPENSE 600
525 SALARIES EXPENSE 5,500
530 UTILITIES EXPENSE 2,500
TOTAL 163,270 163,270