Name: Marcelino, Aaron P.

Strand and Section: Abm Reverence

Subject: FABM Subject Teacher: Mrs. Gilda Alcasid
Activity: Culminating Performance Task: - COMPLETE ACCOUNTING CYCLE for a MERCHANDISIN

QUARTER 2 CULMINATING PERFORMANCE TASK

GOAL: Application of learnings on the complete accounting cycle in a merchandising business.

ROLE: As a graduate of ABM strand, you decided to open a merchandising business.

SITUATION: After a market scan, you found a very strategic place to put up a merchandising business.
All regulatory requirements in establishing a business were accomplished.

DIRECTIONS:
1.    Think of a merchandising business you want to establish.
2.    Prepare business transactions for a month’s operations: i.e. from putting up investments to full operati
3.    Prepare your Chart of Accounts using the following suggested accounts:
Cash, Accounts Receivable, Merchandise Inventory, Store Supplies, Store Equipment, Allowance fo
Accounts Payable, Accrued salaries, Owner’s capital, Owner's withdrawals, Purchases (cash and c
Purchase returns and allowances, Purchase discounts, Sales (cash and credit), Sales returns and
Sales discounts, Salaries Expenses, Utilities Expense, Rent Expense, Bad debts.
(You can add or delete accounts applicable or not applicable to your business).
4.    Journalize your transactions and post to ledgers.
5.    Based on ledger balances, prepare the Unadjusted Trial Balance.
6.    Prepare adjusting entries: Assume that 10% of your Accounts Receivable is uncollectible, and there is
salaries of P2,000 at the end of the month.
7.    Using a worksheet, prepare the SCI, SFP and closing entries.
8.    You have the option to choose whether to use periodic or perpetual inventory system.
9.    Use the suggested structured formats/templates (create additional sheets if necessary).

TRANSACTIONS:

Mang Caloy's Thrift Store.

August 3: Goods purchased in account amounting to 65,000 from thrift company with terms if 2/15, n/30.
August 7: Goods worth of 25,500 purchased from gthrift with terms of 2/5, n/30.
August 13: Returned 2,700 worth of goods received from gthrift due to defective and poor quality.
August 14: Paid the shipping freight bill of 1,200 in the purchase made on August 3.
August 17: Paid the full amount owing to thrift company.
August 31: Paid the full amount due to gthrift.
1. General Journal (Indicate if you are using Periodic or Perpetual Inventory System)

Mang Caloy's Thrift Store.

GENERAL JOURNAL
PERIODIC INVENTORY
Date Account Title and Explanation Ref Debit Credit
8/3/21 Purchase 65,000
Accounts payable 65,000
To record purchase on account.

8/7/21 Purchase 10,000

Account Payable 10,000
To record purchase on account

8/13/21 Accounts payable 2,700

Purchase returns and allowances 2,700
To record return of goods previously purchased

8/14/21 Freight in 2,000

Cash 2,000
To record purchase on account

8/17/21 Accounts payable 65,000

Purchase Discount 1,300
Cash 63,700
To record full payment of account net of discount

8/31/21 Accounts payable 7,300

Cash 7,300
To record full payment of account
TOTAL 152,000 152,000

Notes:
1. Indicate business name and period covered in the heading.
2. Leave on space or line after each transaction.
3. Add additional sheet, if necessary.
2.   General Ledger (Use this form continuously, just leave one space in between each account).

Mang Caloy's Thrift Store.

GENERAL LEDGER
For the month ended December 31, 2021

Account Titl Title: CASH

Date Item or Explanation PR Debit Date

8/14/21

8/17/21

8/31/2021

BALANCE

Accounts Payable
8/3/21

8/7/21
8/13/21 To record return of goods previously purchased 2,700

8/17/21 To record full payment of account net of discount 65,000

8/31/21 To record full payment of account 7,300

BALANCE 75,000 BALANCE

Account: Purchases
 8/3/21 To record purchase account 65,000

8/7/21 To record purchase on account 10,000

BALANCE 75,000

Account: Sales return and allowances

12/10/21

BALANCE

Account: Purchase Discount

12/17/21

BALANCE

Account: Freight In

12/8/21 To record freight on purchase 2,000

BALANCE 2,000
each account).

oy's Thrift Store.

RAL LEDGER
ded December 31, 2021

Account No. 1

Item or Explanation PR Credit

To record freight on purchase 2,000

To record full payment of account net of discount 63,700

To record full payment of account 7,300

73,000

Account no. 2
To record purchase on account 65,000

To record purchase on account 10,000

75,000

Account no. 3
Account no. 4

To record return of goods previously purchased 2,700

2,700

Account no. 5

To record full payment of account net of discount 1,300

1,300

Account no. 6
3. Unadjusted Trial Balance

Mang Caloy's Thrift Store.

UNADJUSTED TRIAL BALANCE
As of December 7-31 2021
Account Title Debit Credit
Cash 73,000

Accounts Payable 0

Purchases 75,000

Purchase Sales return and allowances 2,700

Purchase Discount 1,300

Freight In 2,000

TOTAL 77,000 77,000

4. ADJUSTING ENTRIES

Mang Caloy's Thrift Store.

ADJUSTING JOURNAL ENTRIES
For the month ended December 31, 2021
Date Account Title and Explanation Ref Debit Credit
Bad debts
Allowance for Bad debts
To record estimated uncollectible accounts.

Salaries expense
Accrued Salaries
To record salaries payable.
5.   10-column Worksheet

Mang Caloy's Thrift Store.

WORKSHEET
For the month ended December 31, 2021
Unadjusted Adjusted Income
Trial Balance Adjustments Trial Balance Statement
Account Title Debit Credit Debit Credit Debit Credit Debit Credit
Cash 73,000 73,000 73,000
Accounts Payable 0 0
Purchases 75,000 75,000 75,000
Purchases return and allowance 2,700 2,700
Purchase discount 1,300 1,300 1,,300
Freight In 2,000 2,000

TOTAL 77,000 77,000 77,000 77,000 77,000 77,000

 Balance
Sheet
Debit Credit
73,000

75,000
2,700
1,300
2,000

77,000 77,000
6. Schedule of Cost of Goods Sold

Mang Caloy's Thrift Store.

SCHEDULE OF COST OF GOODS SOLD
For the month ended _____________
Merchandise Inventory, beginning 0
Add: Purchases 75,000
Less: Purchase discount 1,300
Purchase Returns and Allowances
Total Goods Available for Sale 73,700
Less: Merchandise Inventory, ending 0
Cost of goods sold 73,700
7. Income Statement

Mang Caloy's Thrift Store.

STATEMENT OF COMPREHENSIVE INCOME
For the month ended December 31, 2021

Sales
Less: Sales Discount (if any) 0
Sales Returns and Allowances (if any) 2,700
Net Sales
Less: Cost of Goods Sold 73,700
Gross Income 0
Less: Expenses 0

Net Income 71,000

8. Statement of Financial Position (or Balance Sheet)

Mang Caloy's Thrift Store.

STATEMENT OF FINANCIAL POSITION
As of December 2021

ASSETS
Cash 73,000
Accounts Receivable 0 0
Less: Allowance for bad debts 0 2,000
Supplies (if any) 0 0
Office Equipment (if any) 0 0

TOTAL ASSETS 66,100

LIABILITIES AND OWNER’S CAPITAL

LIABILITIES
Accounts Payable 0
Accrued Salaries 0
Total Liabilities 0

OWNER’S CAPITAL
________ ,capital, beginning 0
Add: Net Income 62,600
Total 0
Less: ____________, withdrawals 0
Total Capital 0
TOTAL LIABILITIES AND OWNER’S CAPITAL 62,600
9. Closing Entries

Mang Caloy's Thrift Store.

CLOSING ENTRIES
For the month ended December 31, 2021
Date Account Title and Explanation Ref Debit Credit
Sales 0
Sales discount (if any) 0
Sales returns and allowances (if any) 0
Income Summary 0
To close revenue accounts.

Income Summary 0
Purchase discount (if any) 400
Purchase Returns and alllowances (if any) 2,000
Purchases 65,000

To close cost of goods sold and expense accounts.