Salenga Trading is a merchandising business owned and operated by Beneth Salenga. The accounts (and balances...

 

Transcribed Image Text:

Salenga Trading is a merchandising business owned and operated by Beneth Salenga. The accounts (and balances as at November 30, 2020) used are as follows: Cash (110) P139.200: Accounts Receivable (112)-P245.200: Allowance for Bad Debts (113) - P3,500; Merchandise Inventory (115)-P1,339,000; Prepaid Store Insurance (116) - P37,500: Prepaid Advertising (117); Store Supplies (118) - P25,500; Office Supplies (120) - P17.450; Store Equipment (123) - P114,300; Accumulated Depreciation-Store Equipment (124)-P12,600; Office Equipment (130) - P425,000; Accumulated Depreciation Office Equipment (131)-P16,850; Accounts Payable (210) - P21,450; Notes Payable (220) - P10,000: Accrued Interest Payable (225); Accrued Sales Salaries Payable (230); Accrued Office Salaries Payable (231): Salenga, Capital (310)-P1,032,800; Salenga, Drawing (320): Income Summary (330): Sales (410): Sales Returns and Allowances (415); Sales Discounts (416); Purchases (510); Purchases Returns and Allowances (511): Purchases Discounts (512): Transportation In (513); Sales Salaries Expense (520): Store Supplies Expense (521): Advertising Expense (522); Store Insurance Expense (523): Depreciation Expense - Store Equipment (524); Bad Debts Expense (525): Transportation Out (530); Office Salaries Expense (540); Office Supplies Expense (541): Rent Expense (542); Depreciation Expense - Office Equipment (543); Interest Expense (544) During the month of December, the following events and transactions happened! Dec 1 Issued a check to pay for rent last November, P16,000. 3 Purchased merchandise worth P150,000 on account from Prince Co., 2/10, n/20, FOB shipping point, freight prepaid. Transportation costs worth P4,000 were paid by the concerned company. 4 Sold merchandise for cash to Peralta Company, P5,000, FOB shipping point, freight collect, 3% trade discount. Transportation costs worth P1,200 were paid by the concerned company. Sold merchandise worth P50,000 to Albert Company, 2/10, n/20, FOB shipping point, freight prepaid. Transportation costs worth P2.500 were paid by the concerned 6 company. 7 Collected P75,000 from Castillo company on account. No discount was applied. 10 Sold merchandise worth P18,300 to Quitaleg Company for cash, FOB destination, freight collect. Transportation costs worth P1.200 were paid by the concerned company. 11 Purchased store supplies for cash, P10,000. 13 Sent full payment for the purchase on December 3. 14 Albert Company returned merchandise worth P1,500 15 Issued a check to pay for advertising that will come out during the last half of the month, P15,000. 16 Received full payment from Albert Company. 19 Purchased office supplies on account, PB,100. 19 Quitaleg Company returned P5,000 worth of merchandise. 20 Sold merchandise on account to Beninsig Company, P10,000, 3, 2, 2/10, n/60, FOB shipping point, freight collect. Transportation costs worth P2,000 were paid by the concerned company. 21 Received P11,750 cash from Fronda Company on account. No discount was applied. 21 Purchased merchandise worth P30,000 on account from Gabatin Company, 1/10, n/30, FOB destination, freight prepaid. The concerned company paid transportation costs worth P1,500. 24 Merchandise worth P5,000 was found to be damaged, and was returned to Gabatin Company. 27 Purchased store equipment from for cash, P8,000. 28 Paid P17.500 for sales salaries, and P9,500 for office salaries. 29 Purchased store supplies for cash, P5,500. 30 Received full payment from Beninsig Company. 30 Sold merchandise on account to Roy Company, P18,750, 2, 2, 1, 3/10, n/30, FOB shipping point, freight prepaid. The concerned company paid transportation costs worth P2,000. 30 Made full payment on account to Gabatin Company. 31 Some of the store equipment purchased on December 27 were found to be defective, and returned for cash refund, P1,000, Additional information: The following were determined on December 31: . Store insurance worth P2.500 has expired. • Store supplies worth P16,000 and office supplies worth P7,200 were on-hand. • Depreciation for the month was P1,000 for office equipment, and P1,200 for store equipment. • P5,300 sales salaries, and P3,500 office salaries have accrued. • 2% of the accounts receivable may remain uncollected. • Merchandise inventory worth P124,115 was on-hand. Required: Prepare the general journal (with adjusting entries), general ledger, trial balance, worksheet, income statement, statement of changes in capital, and balance sheet. Salenga Trading is a merchandising business owned and operated by Beneth Salenga. The accounts (and balances as at November 30, 2020) used are as follows: Cash (110) P139.200: Accounts Receivable (112)-P245.200: Allowance for Bad Debts (113) - P3,500; Merchandise Inventory (115)-P1,339,000; Prepaid Store Insurance (116) - P37,500: Prepaid Advertising (117); Store Supplies (118) - P25,500; Office Supplies (120) - P17.450; Store Equipment (123) - P114,300; Accumulated Depreciation-Store Equipment (124)-P12,600; Office Equipment (130) - P425,000; Accumulated Depreciation Office Equipment (131)-P16,850; Accounts Payable (210) - P21,450; Notes Payable (220) - P10,000: Accrued Interest Payable (225); Accrued Sales Salaries Payable (230); Accrued Office Salaries Payable (231): Salenga, Capital (310)-P1,032,800; Salenga, Drawing (320): Income Summary (330): Sales (410): Sales Returns and Allowances (415); Sales Discounts (416); Purchases (510); Purchases Returns and Allowances (511): Purchases Discounts (512): Transportation In (513); Sales Salaries Expense (520): Store Supplies Expense (521): Advertising Expense (522); Store Insurance Expense (523): Depreciation Expense - Store Equipment (524); Bad Debts Expense (525): Transportation Out (530); Office Salaries Expense (540); Office Supplies Expense (541): Rent Expense (542); Depreciation Expense - Office Equipment (543); Interest Expense (544) During the month of December, the following events and transactions happened! Dec 1 Issued a check to pay for rent last November, P16,000. 3 Purchased merchandise worth P150,000 on account from Prince Co., 2/10, n/20, FOB shipping point, freight prepaid. Transportation costs worth P4,000 were paid by the concerned company. 4 Sold merchandise for cash to Peralta Company, P5,000, FOB shipping point, freight collect, 3% trade discount. Transportation costs worth P1,200 were paid by the concerned company. Sold merchandise worth P50,000 to Albert Company, 2/10, n/20, FOB shipping point, freight prepaid. Transportation costs worth P2.500 were paid by the concerned 6 company. 7 Collected P75,000 from Castillo company on account. No discount was applied. 10 Sold merchandise worth P18,300 to Quitaleg Company for cash, FOB destination, freight collect. Transportation costs worth P1.200 were paid by the concerned company. 11 Purchased store supplies for cash, P10,000. 13 Sent full payment for the purchase on December 3. 14 Albert Company returned merchandise worth P1,500 15 Issued a check to pay for advertising that will come out during the last half of the month, P15,000. 16 Received full payment from Albert Company. 19 Purchased office supplies on account, PB,100. 19 Quitaleg Company returned P5,000 worth of merchandise. 20 Sold merchandise on account to Beninsig Company, P10,000, 3, 2, 2/10, n/60, FOB shipping point, freight collect. Transportation costs worth P2,000 were paid by the concerned company. 21 Received P11,750 cash from Fronda Company on account. No discount was applied. 21 Purchased merchandise worth P30,000 on account from Gabatin Company, 1/10, n/30, FOB destination, freight prepaid. The concerned company paid transportation costs worth P1,500. 24 Merchandise worth P5,000 was found to be damaged, and was returned to Gabatin Company. 27 Purchased store equipment from for cash, P8,000. 28 Paid P17.500 for sales salaries, and P9,500 for office salaries. 29 Purchased store supplies for cash, P5,500. 30 Received full payment from Beninsig Company. 30 Sold merchandise on account to Roy Company, P18,750, 2, 2, 1, 3/10, n/30, FOB shipping point, freight prepaid. The concerned company paid transportation costs worth P2,000. 30 Made full payment on account to Gabatin Company. 31 Some of the store equipment purchased on December 27 were found to be defective, and returned for cash refund, P1,000, Additional information: The following were determined on December 31: . Store insurance worth P2.500 has expired. • Store supplies worth P16,000 and office supplies worth P7,200 were on-hand. • Depreciation for the month was P1,000 for office equipment, and P1,200 for store equipment. • P5,300 sales salaries, and P3,500 office salaries have accrued. • 2% of the accounts receivable may remain uncollected. • Merchandise inventory worth P124,115 was on-hand. Required: Prepare the general journal (with adjusting entries), general ledger, trial balance, worksheet, income statement, statement of changes in capital, and balance sheet.

Answer rating: 100% (QA)

General Journal December 1 Rent Expense 16000 Accounts Payable 16000 To record payment of rent for November 3 Prince Co 150000 Accounts Receivable 150000 To record purchase of merchandise on account 4 ... View the full answer