Prepare Income statement with Notes

Prepare Income statement with Notes

Prepare Income statement with Notes

Prepare Income statement with Notes

I have provided you the journal entries for your help, please answer correct,

October 2021

1 Issued a check for P44,000 to Properties Management, Inc. for the October rent.

2 Signed a three-month radio advertising contract with Cable Station for P51,000 and issued a check to pay the full amount.

3 Received P20,678 from Erin Quinn, a credit customer, in full payment of her account amounting to P21,100. The customer paid in full within the discount period.

4 Issued a check for P76,734 to A. Fashion Statement, a creditor, as full payment of its account with a balance of P78,300. The full payment was within the discount period.

5 Sold merchandise on account to Alex Wilder for P30,000, on terms 2/10, 1/15, n/30. Trade discounts of 20% and 10% were given to Alex Wilder. Paid freight of P500.

6 Bought for cash store supplies worth P10,500 from ABC Supply.

8 Received the amount of P16,830 from Miguel Diaz, a credit customer, in payment of his account with a balance of P17,000. The customer paid in full within the discount period.

9 Received a cash refund from ABC Supply for returning defective store supplies worth P1,500.

10 Issued a credit memo to Alex Wilder amounting to P6,000 for defective merchandise returned by him.

13 Sold merchandise on account to Jane Hopper for P20,500 on terms 2/10, n/30.

14 Purchased merchandise on account from Unique Styles for P48,200 on terms 2/15, n/30. Paid freight of P1,000.

15 Sold merchandise for cash, P318,000.

16 Purchased merchandise from A. Fashion Statement for P70,000 on terms 20% down payment, balance 2/10, n/30. Paid freight of P2,000.

17 Cady Heron withdrew the following for personal use: P20,000 cash; store supplies, P2,000; and merchandise worth P10,000.

18 Received credit memo amounting to P7,000 from Unique Styles as a price reduction for merchandise delivered with wrong specifications.

19 Received P5,000 from Jane Hopper as partial payment of her account.

20 Collected the account of Alex Wilder in full.

21 Issued a check for P15,000 as partial payment of account with Unique Styles.

23 Collected the account of Jane Hopper in full.

25 Issued a check for P10,000 to A-Plus Janitors for October janitorial services.

26 Paid in full account with A. Fashion Statement.

28 Issued a check for P50,000 to Classy Trends representing partial settlement of account.

29 Paid in full account with Unique Styles.

30 Paid the salaries of the store manager and two store assistants, P48,000.

31 Sold merchandise for cash, P160,400

Answer:

	Account	Debit	Credit
1	Rent Expense	44,000.00
	Cash		44,000.00
	To issue check for October rent
2	Prepaid Advertising Expense	51,000.00
	Cash		51,000.00
	To book 3-month advertiing expense
3	Cash	20,678.00
	Sales Discount	422.00
	Accounts Receivable		21,100.00
	To book customer payment within discount period
4	Accounts Payable	78,300.00
	Cash		76,734.00
	Purchase Discount		1,566.00
	To book full payment to supplier within discount period
5	Accounts Receivable	21,600.00
	Freight Out	500.00
	Sales		21,600.00
	Cash		500.00
	2/10 1/15 n/30 sales to Alex Wilder
6	Store Supplies	10,500.00
	Cash		10,500.00
	To purchase store supplies
8	Cash	16,830.00
	Sales Discount	170.00
	Accounts Receivable		17,000.00
	To book customer payment within discount period
9	Cash	1,500.00
	Store Supplies		1,500.00
	To book refund of defective store supplies
10	Sales Returns and Allowances	6,000.00
	Accounts Receivable		6,000.00
	To book defective goods returned - Alex Wilder
13	Accounts Receivable	20,500.00
	Sales		20,500.00
	2/10 n/30 sales to Jane Hopper
14	Merchandise Inventory	48,200.00
	Freight In	1,000.00
	Accounts Payable		48,200.00
	Cash		1,000.00
	2/15 n/30 purchase from Unique Styles
15	Cash	318,000.00
	Sales		318,000.00
	To book merchandise for cash
16	Merchandise Inventory	70,000.00
	Freight In	2,000.00
	Accounts Payable		56,000.00
	Cash		16,000.00
	2/15 n/30 purchase from A. Fashion Statement
17	Heron, Drawing	32,000.00
	Cash		20,000.00
	Store Supplies		2,000.00
	Merchandise Inventory		10,000.00
	To book drawing
18	Accounts Payable	7,000.00
	Purchase Returns and Allowances		7,000.00
	To book purchase return due to wrong specification
19	Cash	5,000.00
	Accounts Receivable		5,000.00
	To book partial payment of Jane Hopper
20	Cash	15,444.00
	Sales Discount	156.00
	Accounts Receivable		15600
	To book full payment of Alex Wilder with 1% discount
21	Accounts Payable	15,000.00
	Cash		15,000.00
	To book partial payment to Unique Styles
23	Cash	15,090.00
	Sales Discount	410.00
	Accounts Receivable		15,500.00
	To book full payment of Jane Hopper
25	Janitorial Services Expense	10,000.00
	Cash		10,000.00
	To book October janitorial services
26	Accounts Payable	70,000.00
	Purchase Discounts		1,400.00
	Cash		68,600.00
	To pay in full A. Fashion statement
28	Accounts Payable	50,000.00
	Cash		50,000.00
	To book partial settlement of Accounts
29	Accounts Payable	26,200.00
	Purchase Discounts		824.00
	Cash		25,376.00
	To pay in full - Unique Styles
30	Salaries Expense	48,000.00
	Cash		48,000.00
	To book salaries for the month
31	Cash	160,400.00
	Sales		160,400.00
	To book cash sales