Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

101 102 103 104 105 106 107 108 201 202 203 301 401 402 501 Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Prepaid

image text in transcribedimage text in transcribed

101 102 103 104 105 106 107 108 201 202 203 301 401 402 501 Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Prepaid Rent Store Supplies Store Furniture Accumulated Depreciation - Store Furniture Accounts Payable Salaries Payable Unearned sales Maria Lopez, Capital Sales Sales Return and Allowances Cost of Goods Sold Utilities Expense Salaries Expense Rent Expense Taxes and Licenses Expense Store Supplies Expense Depreciation Expense - Store Furniture Doubtful Accounts Expense Miscellaneous Expense Income Summary 502 503 504 505 506 507 508 509 510 Journalize the following transactions of Maria Merchandising. Then prepare income and balance sheet statements July 1 On July 01, 2020, Maria initially invested P450,000 cash into Maria Merchandising. On the same date, she paid P60,000 for six months rent on the store space, P15,000 for business licenses and permits, and P85,000 for various store furniture. She also bought P85,000 worth of office supplies on account with the intention to sell them at a higher price. The company paid 500 for the shipping fee. FOB Terms: FOB Shipping Point, Freight Collect. July 2 However, the next day, the business received a P3,000 credit memo for allowance granted on the purchased merchandise. The supplies were bought from 123 Supplies Store on terms n/60. July 8 On July 8, the business bought from 45 Supplies Shop P10,000 worth of supplies to be used in the store on terms 50% downpayment, balance n/30. July 15 Francisco, a part time employee, was able to sell on July 15 some of the store's merchandise to Mr. Sam for P17,000 on terms 50% downpayment, balance 2/10, n/30. FOB Terms: FOB Destination, Freight Collect. July 26 On July 26, the business sold to Mrs. Aslani merchandise for P25,000 on terms 2/10, n/30. July 30 On July 30, Mr. Boom paid the business P36,000 for merchandise bought on the same day. Although Mr. Boom already paid all the merchandise in full, he requested that some merchandise be delivered to his new business address sometime next month. July 31 At the end of the month, the business paid utilities totaling P6,500 and miscellaneous expenses amounting to P4,510. Adjustment data are as follows: a. Merchandise inventory as of July 31, 2020, is P10,500, based on physical count. This excludes the amount of inventory to be delivered to Mr. Boom (July 30). b. The P5,000 salary of Francisco for the month of July remains unpaid as of July 31, 2020. Notes: -Use Perpetual Inventory System -To determine the cost of goods sold in each sales transaction the gross profit will be 30% based on cost. -Use the chart of accounts provided. Question: Is there any missing merchandise inventory? Justify your answer 101 102 103 104 105 106 107 108 201 202 203 301 401 402 501 Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Prepaid Rent Store Supplies Store Furniture Accumulated Depreciation - Store Furniture Accounts Payable Salaries Payable Unearned sales Maria Lopez, Capital Sales Sales Return and Allowances Cost of Goods Sold Utilities Expense Salaries Expense Rent Expense Taxes and Licenses Expense Store Supplies Expense Depreciation Expense - Store Furniture Doubtful Accounts Expense Miscellaneous Expense Income Summary 502 503 504 505 506 507 508 509 510 Journalize the following transactions of Maria Merchandising. Then prepare income and balance sheet statements July 1 On July 01, 2020, Maria initially invested P450,000 cash into Maria Merchandising. On the same date, she paid P60,000 for six months rent on the store space, P15,000 for business licenses and permits, and P85,000 for various store furniture. She also bought P85,000 worth of office supplies on account with the intention to sell them at a higher price. The company paid 500 for the shipping fee. FOB Terms: FOB Shipping Point, Freight Collect. July 2 However, the next day, the business received a P3,000 credit memo for allowance granted on the purchased merchandise. The supplies were bought from 123 Supplies Store on terms n/60. July 8 On July 8, the business bought from 45 Supplies Shop P10,000 worth of supplies to be used in the store on terms 50% downpayment, balance n/30. July 15 Francisco, a part time employee, was able to sell on July 15 some of the store's merchandise to Mr. Sam for P17,000 on terms 50% downpayment, balance 2/10, n/30. FOB Terms: FOB Destination, Freight Collect. July 26 On July 26, the business sold to Mrs. Aslani merchandise for P25,000 on terms 2/10, n/30. July 30 On July 30, Mr. Boom paid the business P36,000 for merchandise bought on the same day. Although Mr. Boom already paid all the merchandise in full, he requested that some merchandise be delivered to his new business address sometime next month. July 31 At the end of the month, the business paid utilities totaling P6,500 and miscellaneous expenses amounting to P4,510. Adjustment data are as follows: a. Merchandise inventory as of July 31, 2020, is P10,500, based on physical count. This excludes the amount of inventory to be delivered to Mr. Boom (July 30). b. The P5,000 salary of Francisco for the month of July remains unpaid as of July 31, 2020. Notes: -Use Perpetual Inventory System -To determine the cost of goods sold in each sales transaction the gross profit will be 30% based on cost. -Use the chart of accounts provided. Question: Is there any missing merchandise inventory? Justify your

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial & Managerial Accounting For Undergraduates

Authors: Jason Wallace, James Nelson, Karen Christensen, Theodore Hobson, Scott L. Matthews

2nd Edition

161853310X, 9781618533104

More Books

Students also viewed these Accounting questions