1. Journalize these transactions. Refer to the Chart of Accounts in preparing the journal entries.

2. Prepare a ten-column worksheet (Unadjusted TB, Adjustments, Adjusted TB, Income Statement and Statement of Financial Position). Additional data are provided.

General Journal after the transactions for the month (adjustments): Date Account Titles and Explanation Reference Debit Credit 2020 July 31 Salaries Expense 132 P5,000 Salaries Payable 075 P5,000 Adjusting Entry-accruals Store Supplies Expense 137 3,200 31 Store Supplies 051 3,200 Adjusting Entry-prepayments 31 Rent Expense 133 7,500 Prepaid Rent 056 7,500 Adjusting Entry-prepayments 31 Sales 111 15,000 Unearned Sales 076 15,000 Adjusting Entry-unearned income 31 Depreciation Expense-Store Furniture 140 375 Accumulated Depreciation-Store Furniture 066 375 Adjusting Entry-depreciation 31 Doubtful Accounts Expense 145 2,400 Allowance for Doubtful Accounts 032 2,400 Adjusting Entry-doubtful accounts 31 Merchandise Inventory(end) 041 8,500 Income summary 180 8,500 to set up ending inventorySLIL I AM BDHGIA MERCHANDISING Chart of Account: Account Classication Current Asset Current Asset Current Assetcontra Account Title ICash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventorsr Prepaid Rent Store Supplies Store Furniture Accumulated DepreciationStore Furniture Accou nt Mum ber Current Asset Current Asset Current Asset NonCurrent Asset NonCurrent Assetcontra Current Liability Current Liability Current Liability Owner's Equity Revenue Cost and Expenses Cost and Expenses-contra Cost and Expenses Cost and Expenses Accounts Payable Salaries Payable Uneamed Sales Sulevman Borgia, Capital II Purchases Purchase Returns and Allowances Utilities Expense Salaries Expense M Cost and Expenses Rent Expense Cost and Expenses Taxes and Licenses Expense Cost and Expenses Cost and Expenses Cost and Expenses Cost and Expenses Store SuppliEs Expense Depreciation ExpenseStore Furniture Doubtful Accounts Expense Miscellaneous Expense Income summer's":r 1 _ On July 1, 2020, Suleyman initially invested P200,000 cash into Suleyman Borgia Merchandising. On the same date, he paid P45,000 for six month's rent on the store space, $10,000 for business licenses and permits, and $50,000 for various store furniture. He also bought $60,000 worth of office supplies with the intention to sell them at a higher price. However, the next day, the business received a $1,500 credit memo for allowance granted on the purchased merchandise. The supplies were bought from Hermogina Villaflor Store Supplies on terms, n/60. On July 6, the business bought from Rodrigo Ranario Supplies Shop $5,000 worth of supplies to be used in the store. Terms: 50% downpayment, balance n/30. Peter, a part time employee, was able to sell on July 12 some of the store's merchandise to Mr. Mano for #16,000 on terms 50% downpayment, balance 2/10, n/30. On July 24, the business sold to Mrs. Ang merchandise for P12,000 on terms 2/10, n/30. On July 30, Ms. Dy paid the business #42,000 for merchandise bought on the same day. Although Ms. Dy already paid for all the merchandise in full, she requested that some merchandise be delivered to her new business address sometime the following month. At the end of the month, the business paid utilities totalling P4,920 and miscellaneous expenses amounting to P2,710.Adjustment data: 1. Merchandise inventory as of July 31, 2020 is $8,500, based on the physical count. 2. The #5,000 salary of Peter for the month of July remains unpaid as of July 31, 2020. 3. Store supplies unused as of July 31, 2020 is $1,800, based on physical count. 4. The $45,000 rental payment is applicable for the months of July 2020 to December 2020. 5. The July 30 sale to Ms. Dy included #15,000 worth of merchandise to be delivered in August. 6. The store furniture has an estimated salvage value of #5,000 and useful life of 10 years. 7. Doubtful accounts are estimated at 12% of outstanding customer accounts