Baguio Corporation was organized on January 3, 2017 with a capital stock fully paid up to Php 50,000. At

December 31, 2017 of the same year, the general ledger of Baguio Corporation showed the following accounts

and balances

Merchandise Inventory 21,500

Land 16,500

Building 12,000

Furniture and Fixtures 3,500

Accounts Receivable - Trade 6,200

Accounts Payable - Trade 3,400

Notes Payable - Bank 7,000

Notes Payable - Trade 5,000

Sales 18,550

Expenses paid (excluding purchases) 7,996

Your examination of the bank statement for December disclosed the following information:

Bank Balance, December 31, 2017 4,037

Bank Charges 8

Checks not returned by the bank

October 16, 2017 Check No. 1784 120

November 17, 2017 Check No. 1978 110

December 11, 2017 Check No. 2346 245

Your examination also revealed the following information: Cash received on December 31, 2017 which was

deposited January 2, 2018 amounted to 441. The cost of merchandise sold was Php 12,243.

Required:

2. Compute for the payments on purchases (5 pts)

3. Compute for the Cash Book Balance ( 5 pts)