The Dec.

31, 2013 post-closing trial balance for Ricardo Pangan Company follows:

Ricardo Pangan Company

Post-Closing Trial Balance
Dec. 31, 2013

110 Cash P 240,000

120 Accounts Receivable 210,000
130 Merchandise Inventory 730,000
140 Prepaid Rent 90,000
150 Office Supplies 160,000
160 Office Equipment 1,000,000
165 Accumulated Depreciation P 250,000
210 Notes Payable 400,000
220 Accounts Payable 130,000
230 Salaries Payable
310 Pangan, Capital 1,650,000
320 Pangan, Withdrawal
330 Income Summary
410 Sales
420 Sales Return and Allowances
430 Sales Discounts
510 Purchases
520 Purchase Return and Allowances
530 Purchase Discounts
540 Transportation In
610 Salaries Expense
620 Rent Expense
630 Office Supplies Expense
640 Depreciation Expense
650 Interest Expense __________________________________
P 2,430,000 P 2,430,000

Accounts Receivable of P210,000 is related to a sale to R. Loyola on Dec. 28, 2013. All credit sales are 2/10, n/30. The accounts payable
balance of P130,000 is attributable to a purchase on Dec, 29, 2013 from E. Samonte Company. All credit purchases are 3/10, n/30.

During the month of Jan. 2014, the following transactions were completed:

Jan. 2 Sold merchandise on credit to B. Bandonell, P240,000. Invoice no. 316.

3 Purchased merchandise on account from T. Arenas Company, P90,000. Invoice dated Jan. 2.
4 Collected amount due from Dec. 28 sale to R. Loyola less discounts.
5 Sold merchandise for cash, P430,000.
7 Paid amount due to E. Samonte Company for the purchase of Dec. 29, 2013 less discounts. Issue Check no. 83.
8 Sold merchandise on account to G. Sevidal, P310,000. Invoice n. 317.
9 Returned merchandise purchased from T. Arenas Company, P10,000.
10 Collected amount due from B. Bandonell less discounts.
11 Purchased merchandise on account from L. Viray Company, P120,000. invoice dated Jan.10.
11 Paid T. Arenas Company amount due less returns and discounts. Issued check no. 84.
12 Purchased merchandise for cash, P70,000. issued check no. 85.
13 Sold merchandise on account to M. Cerda, P130,000. Invoice no. 318.
14 Paid interest on the note payable, P10,000. Issued check no. 86.
15 Paid Salaries, P80,000. Issued check no. 87.
17 Purchased merchandise on account from E. Samonte Company P190,000. Invoice dated Jan14.
18 Sold merchandise on account to R. Loyola, P460,000. Invoice no. 319
19 Pangan withdrew P100,000 from the business. Issued check no. 88.
21 Acquired office supplies for cash, P40,000. Issued check no. 89.
22 Paid freight charges on the merchandise purchased from E. Samonte Company on Jan. 17, P20,000. Issued check no. 90.
22 Collected amount due from M. Cerda less discounts.
23 Sold merchandise on credit to B. Bandonell, P110,000. Invoice No. 320.
24 Received returned merchandise from G. Sevidal, P30,000.
25 Received amount due from G. Sevidal, P30,000.
25 Purchased merchandise on account from A. Braganza Company, P340,000. Invoice dated Jan. 4.
26 Paid P90,000 to E. Samonte Company in partial payment of account. Issued check no. 91.
27 Received P170,000 loan from the First Morayta Bank and issued a note payable.
28 Purchased merchandise on account from L. Viray Company, P270,000. Invoice dated Jan. 27.
29 Sold merchandise on account to M. Cerda, P170,000. Invoice no. 321.
30 Purchased merchandise on account from T. Arenas Company, P360,000. Invoice dated Jan. 29.
30 Sold merchandise for cash, P1,310,000.

Required:
1. Record the transaction for the month of January.
2. Determine the balance in each account and prepare the unadjusted trial balance in the worksheet.
3. Prepared the following adjusting entries in the worksheet:
A. Prepaid rent of P30,000 has expired.
B. Office supplies at month-end amounted to P70,000.
C. Monthly Depreciation on the office equipment amounted to P10,000.
D. Salaries of P90,000 have accrued.
4. Completed the worksheet. The ending inventory amounted to P470,000.
5. Prepare the financial statements.
6. Provide a new Post-Closing Trial Balance for the month of Jan. 2014.