WINTER WHOLESALE COMPANY BEGAN OPERATIONSON AUGUST, 2021. THE FOLLOWING TRANSACTIONS TOOK PLACE DURING THE MONTH OF...

  

Transcribed Image Text:

WINTER WHOLESALE COMPANY BEGAN OPERATIONSON AUGUST, 2021. THE FOLLOWING TRANSACTIONS TOOK PLACE DURING THE MONTH OF AUGUST A. OWNERS INVESTED P 50,000 CASH IN THE CORPORATION IN EXCHANGE FOR 5,000 SHARES OF EQUITY CAPITAL B. EQUIPMENT WAS PURCHASED FOR P 20,000 CASH C. ON THE FIRST DAY OF AUGUST, P 6,000 RENT ON A BUILDING WAS PAID FOR THE MONTHS OF AUGUST AND SEPTEMBER. D. MERCHANDISE COSTING P 38,000 WAS PURCHASED ON ACCOUNT. THE COMPANY USES PERPETUAL INVENTORY SYSTEM. E. P 30,000 WAS BORROWED FROM A LOCAL BANK, AND A NOTE PAYABLE WAS SIGNED F. CREDIT SALES FOR THE MONTH WERE P 40,000. THE COST OF MERCHANDISE SOLD WAS P 22,000. G. P 15,000 WAS COLLECTED ON ACCOUNT FROM CUSTOMERS H. P20,000 WAS PAID ON ACCOUNT TO SUPLIERS OF MERCHANDISE SALARIES OF P7,000 WERE PAID TO EMPLOYEES FOR AUGUST A BILL FOR P 2,000 WAS RECEIVED FROM A LOCAL UTILITY COMPANY FOR THE MONTH OF AUGUST K. P 20,000 CASH WAS LOANED TO ANOTHER COMPANY, EVIDENCED BY A NOTE RECEIVABLE L THE CORPORATION PAID ITS SHARE HOLDERS A CASH DIVIDEND OF P 1,000. 1. J. REQUIRED: 1.PREPARE A JOURNAL ENTRY FOR EACH TRANSACTION 2. PROFIT AND LOSS STATEMENT 3. Prepare Balance Sheet C WINTER WHOLESALE COMPANY BEGAN OPERATIONSON AUGUST, 2021. THE FOLLOWING TRANSACTIONS TOOK PLACE DURING THE MONTH OF AUGUST A. OWNERS INVESTED P 50,000 CASH IN THE CORPORATION IN EXCHANGE FOR 5,000 SHARES OF EQUITY CAPITAL B. EQUIPMENT WAS PURCHASED FOR P 20,000 CASH C. ON THE FIRST DAY OF AUGUST, P 6,000 RENT ON A BUILDING WAS PAID FOR THE MONTHS OF AUGUST AND SEPTEMBER. D. MERCHANDISE COSTING P 38,000 WAS PURCHASED ON ACCOUNT. THE COMPANY USES PERPETUAL INVENTORY SYSTEM. E. P 30,000 WAS BORROWED FROM A LOCAL BANK, AND A NOTE PAYABLE WAS SIGNED F. CREDIT SALES FOR THE MONTH WERE P 40,000. THE COST OF MERCHANDISE SOLD WAS P 22,000. G. P 15,000 WAS COLLECTED ON ACCOUNT FROM CUSTOMERS H. P20,000 WAS PAID ON ACCOUNT TO SUPLIERS OF MERCHANDISE SALARIES OF P7,000 WERE PAID TO EMPLOYEES FOR AUGUST A BILL FOR P 2,000 WAS RECEIVED FROM A LOCAL UTILITY COMPANY FOR THE MONTH OF AUGUST K. P 20,000 CASH WAS LOANED TO ANOTHER COMPANY, EVIDENCED BY A NOTE RECEIVABLE L THE CORPORATION PAID ITS SHARE HOLDERS A CASH DIVIDEND OF P 1,000. 1. J. REQUIRED: 1.PREPARE A JOURNAL ENTRY FOR EACH TRANSACTION 2. PROFIT AND LOSS STATEMENT 3. Prepare Balance Sheet C

Answer rating: 100% (QA)

Transaction Number a b d e f g Cash Common stock To record the issu... View the full answer