The data for August are given below for Pretty Carpets. The company honors BDO Express Car for a 3% service fee. Journalize in a 2-column journal and post to customers and suppliers subsidiary ledger cards. The company is non-VAT registered. 1 Pretty Carpets of Cebu was organized with the owner Vic Feria investing P550,000 cash and P100,000 worth of merchandise. P300,000 was immediately deposited with BDO. 3 Carpets were purchased for P135,000 including freight of P2,500. Issued a check for this. 10 Sold merchandise to Rustans of Manila, P92,000. Terms: 2/10, n/30. 12 The company sold goods on account to Robinsons Cebu, P72,000 2/EOM, n/30. 16 P2,900 worth of goods were returned by Rustans for credit. 20 Salaries paid: office employees, P9,500 and salesmen P26,000 less 5% withholding tax. 22 Collected in full the account of Rustans. 24 The Company returned merchandise purchased on June 3 and was given a cash refund of P8,000. 26 Purchased goods from Bess Carpets, P105,000. Terms: 2/10, n/30, FOB Shipping Point. 27 Paid freight of P3,000 on the Bess shipment. 28 Robinsons paid its account in full. 28 Paid Bess Carpet, P55,000. 29 Cash sales, P54,000 including P14,000 on credit cards. Cash deposited with BDO. 30 Issued a check for store rent P15,000. BDOs bank statement showed the bank charge of 3% for the month. Assumed the bank charge based on the issued check. 31 Paid for salaries less withholding tax. Additional deductions were made for 3% SSS, 1.5% PhilHealth and 2% Pag-ibig Premiums. Paid in cash for utilities, P6,000 (one-fourth is considered administrative). Requirements: 1. Journalize the following transactions. 1 point each 2. Prepare an income statement assuming that stock on hand amounted to P195,000. A 3% percentage tax should be set-up based on net sales. Determine the profitability of the company. Banks prime rate of return is 6% on investments. 20 points