PERPETUAL INVENTORY SYSTEM SAMPLE PROBLEM
On December 2017, Dereck Sanchez a budding entrepreneur registered his business
in
the Department of Trade and Industry (DTI) as a sole proprietor-merchandising
nature/form of business under the business name Sanchez General Merchandising.
Dereck opted to use a Perpetual Inventory System.
The following transactions occurred during the month:
1 Dereck put in 590,000 cash in the business.
2 Hired an office assistant with monthly salary of 18,000.
2 Purchased computer equipment on account for 30,000 from Xcel Computers, Inc.
3 Bought fire insurance with 1-year coverage, 12,000.
3 Bought merchandise from TY Traders 205,000 2/10, n/30, FOB Destination.
4 Paid freight for the Dec 3 transactions, 1,800.
5 Sold merchandise for cash, 88,000, costing 50,000.
5 Bought office supplies on account, 3,500 from MCS Marketing.
6 Paid in full Xcel Computers, Inc . accounts.
8 Received credit from TY Traders for wrongly delivered merchandise, 1,100.
9 Refunded customers for merchandise sold for 900 costing 500 due to minor
defects.
11 Sold merchandise to customers, 108,000, 2/10, n/30. FOB Shipping Point,
costing 61,400.
12 Paid feight for Dec 11 transactions, 900.
12 Availed 50,000 SME Loan from RCBC by signing a 180-day note.
13 Paid TY Traders account in full.
15 Credit customers account, 11, 330 for inventory returns costing, 6,400.
15 Paid assistant's salary 9,000
17 Bought merchandise from AC Merchandisers amounting to 79,000 2/10, n/30.
20 Received payment from customers.
24 Paid account for supplies purchased.
25 Sanchez take out cash from the business, 12,000.
26 Sold merchandise for cash, 99,000 costing 56,500.
27 Paid telephone bill, 5,700.
29 Made repairs to office electrical wirings and connections, 990.
30 Paid assistant's salary.
30 Paid the following expenses : Advertising 3,800, Utilities 2,900, and Rental
15,000.
30 Physical count at the end of the year indicates that Ending Inventory amounted
to 55,000.
PERPETUAL INVENTORY SYSTEM SAMPLE PROBLEM
Required:
1. Journalize Transactions using the following Chart of Accounts:
2. . Post Transactions to
the Ledger
3. 3. Prepare the
Trial Balance
4. 4. Prepare the
following Financial
Statements:
5. a. Balance
Sheet
6. b. Income
Statement
7. c. Statement
of Cashflow
PERPETUAL INVENTORY SYSTEM SAMPLE PROBLEM
8. d. Statement
of Changes in Owner’s
Equity
9. 5. Journalize and Post
Closing Entries
10. 6. Prepare
Post-Closing Trial
Balance
11. . Post Transactions
to the Ledger
12. 3. Prepare the
Trial Balance
13. 4. Prepare the
following Financial
Statements:
PERPETUAL INVENTORY SYSTEM SAMPLE PROBLEM
14. a. Balance
Sheet
15. b. Income
Statement
16. c.
Statement of Cashflow
17. d.
Statement of Changes
in Owner’s Equity
18. 5. Journalize and
Post Closing Entries
19. 6. Prepare
Post-Closing Trial
Balance
PERPETUAL INVENTORY SYSTEM SAMPLE PROBLEM
20. Post Transactions
to the Ledger
21. 3. Prepare the
Trial Balance
22. 4. Prepare the
following Financial
Statements:
23. a. Balance
Sheet
24. b. Income
Statement
25. c.
Statement of Cashflow
PERPETUAL INVENTORY SYSTEM SAMPLE PROBLEM
26. d.
Statement of Changes
in Owner’s Equity
27. 5. Journalize and
Post Closing Entries
28. 6. Prepare
Post-Closing Trial
Balance
29. Post Transactions
to the Ledger
30. 3. Prepare the
Trial Balance
31. 4. Prepare the
following Financial
Statements:
PERPETUAL INVENTORY SYSTEM SAMPLE PROBLEM
32. a. Balance
Sheet
33. b. Income
Statement
34. c.
Statement of Cashflow
35. d.
Statement of Changes
in Owner’s Equity
36. 5. Journalize and
Post Closing Entries
37. 6. Prepare
Post-Closing Trial
Balance
PERPETUAL INVENTORY SYSTEM SAMPLE PROBLEM
38. Post Transactions
to the Ledger
39. 3. Prepare the
Trial Balance
40. 4. Prepare the
following Financial
Statements:
41. a. Balance
Sheet
42. b. Income
Statement
43. c.
Statement of Cashflow
PERPETUAL INVENTORY SYSTEM SAMPLE PROBLEM
44. d.
Statement of Changes
in Owner’s Equity
45. 5. Journalize and
Post Closing Entries
46. 6. Prepare
Post-Closing Trial
Balance
2. Post Transactions to the Ledger
3. Prepare the Trial Balance
4. Prepare the following Financial Statements:
a. Balance Sheet
b. Income Statement
c. Statement of Cashflow
d. Statement of Changes in Owner’s Equity
5. Journalize and Post Closing Entries
6. Prepare Post-Closing Trial Balance
No Accounts Titles No Account Titles
.
10 Cash 40 Sales
1 1
10 Accounts Receivable 40 Sales Returns and Allowances
2 2
10 Prepaid Insurance 40 Sales Discounts
3 3
10 Supplies 50 Cost of Sales
4 1
10 Merchandise Inventory 50 Advertising Expense
PERPETUAL INVENTORY SYSTEM SAMPLE PROBLEM
5 2
10 Office Equipment 50 Depreciation Expense
6 3
10 Accumulated Depreciation 50 Freight Out
7 4
20 Accounts Payable 50 Insurance Expense
1 5
20 Interest Payable 50 Interest Expense
2 6
20 Notes Payable 50 Rent Expense
3 7
30 Sanchez, Capital 50 Repairs and Maintenance
1 8
30 Sanchez, Drawings 50 Salaries Expense
2 9
30 Income Summary 51 Supplies Expense
3 0
51 Telephone Expense
1
51 Utilities Expense
2
