Date Particulars PR Debit Credit

(2017)
March 1 Cash P300,000
J. Mercado Capital P300,000
To record investment

- Taxes and Licenses 3,500

Cash 3,500
To record payment for taxes and licenses

- Rent Expense 5,000

Cash 5,000
To record payment for rent

2 Purchases 114,000
Accounts Payable- Cara Trading 114,000
To record purchases on account terms 5; 5/15, n/30

3 Purchases 40,000
Cash 40,000
To record purchases

4 Accounts Receivable- Tony Trading 85,500

Sales 85,500
To record sales on account terms 10; 5/10, n/15

5 Cash 300,000
Sales 300,000
To record sales

6 Sales Returns and Allowances 2,000

Cash 2,000
To record sales returns and allowances

7 Purchases 60,000
Accounts Payable- Heart Trading 60,000
To record purchases on account terms 5/15, n/30

- Cash 55,000
Sales 55,000
To record sales

8 Accounts Payable- Heart Trading 3,700

Purchases Returns and Allowances 3,700
To record purchases returns and allowances
14 Cash 81,225
Sales Discount 4,275
Accounts Receivable- Tony Trading 85,500
To record full collection

15 Accounts Payable- Cara Trading 114,000

Cash 108,300
Purchase Discount 5,700
To record full payment

18 Freight - in 3,500
Cash 3,500
To record transportation

20 Accounts Payable- Heart Trading 56,300

Cash 53,485
Purchase Discounts 2,815
To record full payment

22 Freight - Out 3,000

Cash 3,000
To record transportation

24 Purchases 14,000
Accounts Payable 14,000
To record purchases on account

25 Sales Salaries 12,000

Cash 12,000
To record payment for sales salaries

26 Equipment 7,000
Cash 7,000
To record purchase of equipment

30 Accounts Receivable 60,000

Sales 60,000
To record sales on account

31 J. Mercado Withdrawal 5,000

Cash 5,000
To record withdrawal
 John Mercado Trading
Chart of Accounts
March 31, 2017

Account Nos. Account Titles

101 Cash
102 Accounts Receivable
103 Merchandise Inventory
104 Supplies
105 Equipment
201 Accounts Payable
301 J. Mercado Capital
302 J. Mercado Withdrawal
401 Sales
402 Sales Returns and Allowances
403 Sales Discounts
501 Purchases
502 Purchase Returns and Allowances
503 Purchase Discounts
504 Freight- In
601 Freight- Out
602 Sales Salaries
603 Taxes and Licenses
604 Rent Expense
701 Income Summary