(2). Pillow n Stitch Enterprise is a retailer of head and neck pillows. On April 30, 2019, the company had the following inventories for head and neck pillows: Head Pillows Neck Pillows Purchase Date # of Box # of Boxes # of Units per Box Cost Per Unit Purchase Date # of Units per Box Cost Per Unit April 10 5 10 80.00 April 3 8 15 50.00 April 15 10 10 85.00 April 12 16 15 55.00 April 24 20 10 70.00 April 20 25 15 60.00 Additional Information: Pillow 'n Stitch always sells merchandise only by box, never per unit. Pillow n Stitch always sells head pillows with a mark-up of 50% on cost and a 30% markup on cost for neck pillows. - The company uses FIFO, Perpetual Inventory System. The following transactions took place in May, 2019: 1- Purchased from Lilo 20 boxes with 10 units per box of head pillows at P80.00 each and 75 units of neck pillows at P55 each. Each box of neck pillow has 15 units. Terms: 2/10, 1/20. n/30. FOB Shipping Point. 4- Pillow paid a total of P1,000 for transportation costs associated with the May 1 transaction with a breakdown of P150 for transporting the neck pillows and P850 for transporting the head pillows. 6- Sold to Minnie 70 units of head pillows and 180 units of neck pillows. Terms: 1/10, n/60, FOB Destination Point. 9- Pillow paid for the transportation cost worth P1,500 for May 6 Transaction. 10- Paid Lilo for purchases made on May 1. 13- The owner, Mr. Pillow, invested 1 box of neck pillows with 15 units each box, list price of P75, and market value of P70. 16- Received payment from Minnie. 18- Purchased from Donald 28 boxes with 10 units per box of head pillows at P75 each and 17 boxes of neck pillows with 15 units per box at P65 each. Since Pillow paid immediately, Donald granted a 4% trade discount. Terms: FOB Shipping Point. 19- Sold to Mickey 28 boxes of head pillows and 41 boxes of neck pillows, 3/6, n/15, FOB Shipping Point. 20- Returned to Donald 20pcs of head pillow and 2 boxes of neck pillows. 23- Purchased on credit from Daisy 5 boxes with 10 units per box of head pillows at P70 each and 20 boxes of neck pillows with 15 units per box at P70 each, FOB Shipping Point. Pillow asked Daisy to pay for the transportation costs on this day of P100 for the head pillows and P420 for the neck pillows. 26- Sold to Pluto 95 units of head pillows and 67 units of neck pillows. Terms: 3/10,n30. FOB Destination Point Required: 1. Journalize the transactions for May 2019. For owner's capital, use "Pillow, Capital. Show in table form the inventories for the Cost of Goods Available for Sale (COGAS) and Cost of Goods Sold (COGS) similar to the class exercise. (60pts) 2. Prepare the multi-step income statement for Pillow 'n Stitch Enterprise the month of May 2019 given the following Expenses (20pts): a. Rent Expense = P4,500.00 b. Delivery Expense P500.00 c. Interest Revenue = P15,000.00 d. Tax Expense = 20% Note: Do NOT categorize the Operating Expenses anymore as Selling Expenses and General & Administrative Expenses. (2). Pillow n Stitch Enterprise is a retailer of head and neck pillows. On April 30, 2019, the company had the following inventories for head and neck pillows: Head Pillows Neck Pillows Purchase Date # of Box # of Boxes # of Units per Box Cost Per Unit Purchase Date # of Units per Box Cost Per Unit April 10 5 10 80.00 April 3 8 15 50.00 April 15 10 10 85.00 April 12 16 15 55.00 April 24 20 10 70.00 April 20 25 15 60.00 Additional Information: Pillow 'n Stitch always sells merchandise only by box, never per unit. Pillow n Stitch always sells head pillows with a mark-up of 50% on cost and a 30% markup on cost for neck pillows. - The company uses FIFO, Perpetual Inventory System. The following transactions took place in May, 2019: 1- Purchased from Lilo 20 boxes with 10 units per box of head pillows at P80.00 each and 75 units of neck pillows at P55 each. Each box of neck pillow has 15 units. Terms: 2/10, 1/20. n/30. FOB Shipping Point. 4- Pillow paid a total of P1,000 for transportation costs associated with the May 1 transaction with a breakdown of P150 for transporting the neck pillows and P850 for transporting the head pillows. 6- Sold to Minnie 70 units of head pillows and 180 units of neck pillows. Terms: 1/10, n/60, FOB Destination Point. 9- Pillow paid for the transportation cost worth P1,500 for May 6 Transaction. 10- Paid Lilo for purchases made on May 1. 13- The owner, Mr. Pillow, invested 1 box of neck pillows with 15 units each box, list price of P75, and market value of P70. 16- Received payment from Minnie. 18- Purchased from Donald 28 boxes with 10 units per box of head pillows at P75 each and 17 boxes of neck pillows with 15 units per box at P65 each. Since Pillow paid immediately, Donald granted a 4% trade discount. Terms: FOB Shipping Point. 19- Sold to Mickey 28 boxes of head pillows and 41 boxes of neck pillows, 3/6, n/15, FOB Shipping Point. 20- Returned to Donald 20pcs of head pillow and 2 boxes of neck pillows. 23- Purchased on credit from Daisy 5 boxes with 10 units per box of head pillows at P70 each and 20 boxes of neck pillows with 15 units per box at P70 each, FOB Shipping Point. Pillow asked Daisy to pay for the transportation costs on this day of P100 for the head pillows and P420 for the neck pillows. 26- Sold to Pluto 95 units of head pillows and 67 units of neck pillows. Terms: 3/10,n30. FOB Destination Point Required: 1. Journalize the transactions for May 2019. For owner's capital, use "Pillow, Capital. Show in table form the inventories for the Cost of Goods Available for Sale (COGAS) and Cost of Goods Sold (COGS) similar to the class exercise. (60pts) 2. Prepare the multi-step income statement for Pillow 'n Stitch Enterprise the month of May 2019 given the following Expenses (20pts): a. Rent Expense = P4,500.00 b. Delivery Expense P500.00 c. Interest Revenue = P15,000.00 d. Tax Expense = 20% Note: Do NOT categorize the Operating Expenses anymore as Selling Expenses and General & Administrative Expenses