The company records purchase of merchandise at gross of invoice price. During October, last month of...
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The company records purchase of merchandise at gross of invoice price. During October, last month of fiscal year, the following transactions were completed: Purchased store supplies for cash P16,800. Received P312,000 cash from Sanitary Wares Co. on account, no discount. Oct 1 Oct 2 Purchased merchandise on account from Laroco Oct 3 Co., terms 2/10, n/30, FOB shipping point, P480,000. Paid transportation charges on purchase of Oct 4 October 3, P18,500. Merchandise Inventory account is used to record inbound deliveries. Sold merchandise on account to JRA Co., terms Oct 6 2/10, n/30 FOB shipping point, P408,000. The cost of the merchandise sold was P240,000. Oct 7 Paid rent for October, P96,000. Paid for merchandise purchased on October 3, less Oct 12 discount. Purchase discount taken is recorded as a credit to Merchandise Inventory Sold merchandise for cash P734,400. The cost of Oct 13 the merchandise sold was P 432,000. Received merchandise returned on sale of October Oct 14 6. P72,000. The cost of the merchandise returned was P43,200. Received cash from sale of October 6, less return Oct 16 of October 14 and discount. Oct 17 Purchased merchandise for cash, P355.200. Purchased merchandise on account from Filco MacBook Air canvasinstructure.com orOctoDur 14 and OIscount Oct 17 Purchased merchandise for cash, P355,200. Purchased merchandise on account from Filco Oct 18 Showroom Co., terms 1/10, n/30, FOB destination, P720,000. Paid P285,600 to Norma Commercial Co, on Oct 19 account, no discount. Sold merchandise on account to Kenwood Bedroom Co., terms 1/10, n/30 FOB shipping Oct 20 point, P768,000. The cost of the merchandise sold was P460,800. For the convenience of the customer, paid Oct 21 shipping charges on sale of October 20, P28,800. Received P564,000 cash from Probuild Co. on Oct 22 account, no discount. Returned P168,000 of damaged merchandise Oct 24 purchased on October 18, receiving credit from the seller. Refunded cash on sales returns previously sold for Oct 26 cash, P28,800. The cost of the merchandise returned was P17,280. Paid sales salaries of P132,000 and office salaries Oct 27 of P58,560 Paid for purchase of October 18, less return of Oct 28 October 24 and discount. Sold merchandise on account to La Union Heritage Co., terms 2/10, n/30, FOB shipping point, Oct 29 P1,108,800. The cost of the merchandise sold was P633,600. Received cash from sale of October 20, less discount, plus transportation paid on October 21. Oct 30 Oct 31 Paid advertising expense for October, P72,000. ECativas nstructure.com The Blink Co. is a bedroom fixture merchandising business owned by Ms. Rose Manoban and family. The company uses a perpetual inventory system. The account balances for Blink Co. as of September 30, 2021, are as follows: 110 Cash 919,680 111 Notes Receivable 240,000 112 Accounts Receivable 1,498,560 115 Merchandise Inventory 7,387,200 116 Unexpired Insurance 180,000 117 Store Supplies 122,400 123 Store Equipment 5,006,400 Accumulated Depreciation- 124 604,800 Store Equipment 210 Accounts Payable 885,600 211 Salaries Payable 310 Share Capital 4,800,000 311 Retained Earnings 637,280 312 Dividends 480,000 312 Dividends 480,000 313 Income Summary 410 Sales 39,156,000 411 Sales Returns and Allowances 988,800 412 Sales Discounts 633,600 510 Cost of Goods Sold 22,104,000 520 Sales Salaries Expense 3,091,200 521 Advertising Expense 864,000 522 Depreciation Expense 523 Store Supplies Expense Miscellaneous Selling 529 134,400 Expense 530 Office Salaries Expense 1,464,000 531 Rent Expense 892,800 532 Insurance Expense Miscellaneous Administrative 539 79,200 Expense 611 Interest Revenue 2,560 The company records purchase of merchandise at gross of invoice price. During October, last month of fiscal year, the following transactions were completed: Purchased store supplies for cash P16,800. Received P312,000 cash from Sanitary Wares Co. on account, no discount. Oct 1 Oct 2 Purchased merchandise on account from Laroco Oct 3 Co., terms 2/10, n/30, FOB shipping point, P480,000. Paid transportation charges on purchase of Oct 4 October 3, P18,500. Merchandise Inventory account is used to record inbound deliveries. Sold merchandise on account to JRA Co., terms Oct 6 2/10, n/30 FOB shipping point, P408,000. The cost of the merchandise sold was P240,000. Oct 7 Paid rent for October, P96,000. Paid for merchandise purchased on October 3, less Oct 12 discount. Purchase discount taken is recorded as a credit to Merchandise Inventory Sold merchandise for cash P734,400. The cost of Oct 13 the merchandise sold was P 432,000. Received merchandise returned on sale of October Oct 14 6. P72,000. The cost of the merchandise returned was P43,200. Received cash from sale of October 6, less return Oct 16 of October 14 and discount. Oct 17 Purchased merchandise for cash, P355.200. Purchased merchandise on account from Filco MacBook Air canvasinstructure.com orOctoDur 14 and OIscount Oct 17 Purchased merchandise for cash, P355,200. Purchased merchandise on account from Filco Oct 18 Showroom Co., terms 1/10, n/30, FOB destination, P720,000. Paid P285,600 to Norma Commercial Co, on Oct 19 account, no discount. Sold merchandise on account to Kenwood Bedroom Co., terms 1/10, n/30 FOB shipping Oct 20 point, P768,000. The cost of the merchandise sold was P460,800. For the convenience of the customer, paid Oct 21 shipping charges on sale of October 20, P28,800. Received P564,000 cash from Probuild Co. on Oct 22 account, no discount. Returned P168,000 of damaged merchandise Oct 24 purchased on October 18, receiving credit from the seller. Refunded cash on sales returns previously sold for Oct 26 cash, P28,800. The cost of the merchandise returned was P17,280. Paid sales salaries of P132,000 and office salaries Oct 27 of P58,560 Paid for purchase of October 18, less return of Oct 28 October 24 and discount. Sold merchandise on account to La Union Heritage Co., terms 2/10, n/30, FOB shipping point, Oct 29 P1,108,800. The cost of the merchandise sold was P633,600. Received cash from sale of October 20, less discount, plus transportation paid on October 21. Oct 30 Oct 31 Paid advertising expense for October, P72,000. ECativas nstructure.com The Blink Co. is a bedroom fixture merchandising business owned by Ms. Rose Manoban and family. The company uses a perpetual inventory system. The account balances for Blink Co. as of September 30, 2021, are as follows: 110 Cash 919,680 111 Notes Receivable 240,000 112 Accounts Receivable 1,498,560 115 Merchandise Inventory 7,387,200 116 Unexpired Insurance 180,000 117 Store Supplies 122,400 123 Store Equipment 5,006,400 Accumulated Depreciation- 124 604,800 Store Equipment 210 Accounts Payable 885,600 211 Salaries Payable 310 Share Capital 4,800,000 311 Retained Earnings 637,280 312 Dividends 480,000 312 Dividends 480,000 313 Income Summary 410 Sales 39,156,000 411 Sales Returns and Allowances 988,800 412 Sales Discounts 633,600 510 Cost of Goods Sold 22,104,000 520 Sales Salaries Expense 3,091,200 521 Advertising Expense 864,000 522 Depreciation Expense 523 Store Supplies Expense Miscellaneous Selling 529 134,400 Expense 530 Office Salaries Expense 1,464,000 531 Rent Expense 892,800 532 Insurance Expense Miscellaneous Administrative 539 79,200 Expense 611 Interest Revenue 2,560
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Reserves and surplus ac Debit Credit Amount P Amount P 311020 To bal cd 63728000 29920 By bal bd 63728000 Capital ac Debit Credit Amount P Amount P 311020 To bal cd 480000000 ... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-1934319307
2nd edition
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III
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