Bean Co., established by Mr. Bean himself, began business on Sept.1, 2016.

Selected transactions for September related to its merchandising business are given below. Assuming that your
are the bookkeeper of Bean Co., prepare the following:

1. Journal entry (Periodic Inventory System)

2. Posting to the ledger (T-Account)
3. Prepare the Unadjusted Trial Balance

Sep.1- Mr. Bean withdrew P 1, 000, 000 from his personal savings account and invested to Bean Co.
Sep.2- Cash purchases of merchandise P 100, 000 from Kool Trading. FOB Shipping points, freight prepaid, P 1, 200.
Sep.2- Sold merchandise for P 25, 000 to Bont trading. Terms: 1/10, n/60. FOB destination, P 660
Sep.3- Cash sales to Coco. Co P 7, 000. FOB Shipping point, P 550.
Sep.5- Purchased merchandise from Menggay Co. List prices was P 60, 000 with terms 10-5, 2/10, n/60 FOB shipping point freight prepaid, P 2, 000.
Sep.6- Returned defective merchandise to Menggay Co., P 1, 000.
Sep.12- Bont Trading settled its account in full.
Sep.15- Reimbursed Coco Co. for allowance granted on defective goods.
Sep.24- Withdrew P 10, 000 for personal use.
Sep.24- Paid Utilities expense (10, 000), rent expense (14, 000) and wages expense (12, 000).
 Bean Co.
Journal Entries

Date Particulars P.R. Debit Credit

Sept
1 1 Cash 1,000,000.00 1

2 Bean Co., Capital 1,000,000.00 2

3 (Initial investment) 3

4 4

5 2 Purchases 100,000.00 5

6 Cash 100,000.00 6

7 (Made cash purchases) 7

8 8

9 Freight-In 1,200.00 9

10 A/P- Kool Trading 1,200.00 10

11 (Cost of freight charges) 11

12 12
13 A/R - Bont Trading 25,000.00 13
14 Sales 25,000.00 14
15 (Sold merchandise.1/10,n/60) 15
16 16
17 Freight-Out 660.00 17
18 Cash 660.00 18
19 (Paid freight charges) 19
20 20
21 3 Cash 7,000.00 21
22 Sales 7,000.00 22
23 (Cash sales) 23
24 24
25 5 Purchases 51,300.00 25
26 A/P - Menggay Co. 51,300.00 26
27 (Made purchases. Terms 10-5, 2/10, n/60) 27
28 28
29 Freight-In 2,000.00 29
30 A/P - Menggay Co. 2,000.00 30
31 (Cost of freight charges) 31
32 32
33 6 A/P - Menggay Co. 1,000.00 33
34 Purchase Returns and Allowances 1,000.00 34
35 (Returned defective merchandise) 35
36 36
37 12 Cash 24,750.00 37
38 Sales Discount 250.00 38
39 A/R- Bont Trading 25,000.00 39
40 (Received Payment within discount period 40
41 41
42 15 Sales Returns and Allowances 2,000.00 42
43 Cash 2,000.00 43
44 (Reimbursed Coco. Co) 44
45 45
46 24 Drawing, Capital 10,000.00 46
47 Cash 10,000.00 47
48 (Withdrew for personal use) 48
49 49
50 Utilities Expense 10,000.00 50
51 Rent Expense 14,000.00 51
52 Wages Expense 12,000.00 52
53 Cash 36,000.00 53
54 (Paid expenses) 54
 Cash Purchases Purchase Returns and Allowances A/P- Kool Trading A/P- Menggay Co.
1,000,000 100,000 100,000.00 1,000 1,200 1,000 51,300
7000 660 51,300 2,000
24750 2000
10000 151,300 52,300
36000

883,090

Bean, Capital Bean,Drawing Sales Sales Returns and Allowances

1,000,000 10,000 25,000 2000
7,000

32,000

Sales Discount Freight-In Utilities Expense Rent Expense Wages Expense

250 2,000 10,000 14,000 12,000
1,200

3,200

Freight- Out A/R- Bont Trading

660 25,000 25,000

0
 Bean Co.
Unadjusted Trial Balance
For the month ended September 30,2016

Acc.
Accounts Debits Credits
No.

1 Cash 883,090.00 1
2 Purchases 151,300.00 2
3 Purchase Returns and Allowances 1,000.00 3
4 A/P Kool Trading 1,200.00 4
5 A/P Menggay Co. 52,300.00 5
6 Bean, Capital 1,000,000.00 6
7 Bean, Drawing 10,000.00 7
8 Sales 32,000.00 8
9 Sales Returns and Allowances 2,000.00 9
10 Sales Discount 250.00 10
11 Freight In 3,200.00 11
12 Utilities Expense 10,000.00 12
13 Wages Expense 12,000.00 13
14 Rent Expense 14,000.00 14
15 Freight Out 660.00 15
16 16
17 Total 1,086,500.00 1,086,500.00 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 39
38 38
39 39