2. The account balances in the ledger of Sari-Sari Store Inc. on December 31, 1996 were...

 

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2. The account balances in the ledger of Sari-Sari Store Inc. on December 31, 1996 were as follows: Debit Php 3,600 30,000 156,300 200,000 500,000 Entry Cash Accounts Receivable Mdse. Inventory Land Building Accumulated Depreciation Accounts Payable Notes Payable Capital Stock Retained Earnings Total 5. The following expenses were paid for in cash: Sales Salaries Php 889,900 The following transactions occured during the year 1997: 1. Sales totaled Php 815,000, 40% of which was received in cash. The cost of merchandise sold amounted to 50% of sales. However, sales returns amounted to Php 5,000. This was to be deducted from the customer's account. 2. Fire insurance for 1998 amounting to Php 10,000 was paid. 3. Inventory amounting to Php 500,000 was purchased on credit. 4. Sari-Sari Store Inc. secured a bank loan amounting to Php 100,000 at an interest of 12% per year. Interest is to be paid every three months. The loan was signed on September 1, 1997. Supplies Utilities Miscellaneous Credit 100,000 48,600 350,000 300,000 91,300 Php 889,900 Php 100,000 50,000 70,000 15,000 Total Php 235,000 6. Wages representing salary of casual employees for the last two weeks of December 1997 amounted to Php 25,000. This is to be paid only on January 15, 1998. The company was forced to hire additional workers during the peak season. 7. The company declared on November 10, 1997 a cash dividend of Php 100,000 to its stockholders which is to be paid on February 1, 1998. 8. Depreciation for the year was estimated at Php 10,000. 9. The company issued additional stocks amounting to Php 30,000 at par value but which were bought for Php 50,000. 10. The company belongs to the 35% government tax bracket. Taxes on a firm's earnings for the accounting period are paid during April of the following year. Requirements: Journalize all transactions. Prepare the Balance Sheet and Income Statement for Sari-Sari Store Ince, as of the end of the year 1997. 2. The account balances in the ledger of Sari-Sari Store Inc. on December 31, 1996 were as follows: Debit Php 3,600 30,000 156,300 200,000 500,000 Entry Cash Accounts Receivable Mdse. Inventory Land Building Accumulated Depreciation Accounts Payable Notes Payable Capital Stock Retained Earnings Total 5. The following expenses were paid for in cash: Sales Salaries Php 889,900 The following transactions occured during the year 1997: 1. Sales totaled Php 815,000, 40% of which was received in cash. The cost of merchandise sold amounted to 50% of sales. However, sales returns amounted to Php 5,000. This was to be deducted from the customer's account. 2. Fire insurance for 1998 amounting to Php 10,000 was paid. 3. Inventory amounting to Php 500,000 was purchased on credit. 4. Sari-Sari Store Inc. secured a bank loan amounting to Php 100,000 at an interest of 12% per year. Interest is to be paid every three months. The loan was signed on September 1, 1997. Supplies Utilities Miscellaneous Credit 100,000 48,600 350,000 300,000 91,300 Php 889,900 Php 100,000 50,000 70,000 15,000 Total Php 235,000 6. Wages representing salary of casual employees for the last two weeks of December 1997 amounted to Php 25,000. This is to be paid only on January 15, 1998. The company was forced to hire additional workers during the peak season. 7. The company declared on November 10, 1997 a cash dividend of Php 100,000 to its stockholders which is to be paid on February 1, 1998. 8. Depreciation for the year was estimated at Php 10,000. 9. The company issued additional stocks amounting to Php 30,000 at par value but which were bought for Php 50,000. 10. The company belongs to the 35% government tax bracket. Taxes on a firm's earnings for the accounting period are paid during April of the following year. Requirements: Journalize all transactions. Prepare the Balance Sheet and Income Statement for Sari-Sari Store Ince, as of the end of the year 1997.

Answer rating: 100% (QA)

step by step explanation The first step is to journalize the transactions 1 Sales totaled Php 815000 ... View the full answer