Hiiii this is for my notes hehe

1. Journalize all transactions
2. prepare both the balance sheet and income statement for Sari-Sari Store Inc., as of the end of the year 1997.

The account balances in the ledger of Sari-Sari Store Inc. on December 31, 1996 were as follows: Entry Debit Credit Cash Php 3,600 Accounts Receivable 30,000 Mdse. Inventory 156,300 Land 200,000 Building 500,000 Accumulated Depreciation 100,000 Accounts Payable 48,600 Notes Payable 350,000 Capital Stock 300,000 Retained Earnings 91,300 Total Php 889,900 Php 889,900 The following transactions occurred 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 om 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. 5. The following expenses were paid for in cash: Sales Salaries Php 100,000 Supplies 50,000 Utilities 70,000 Miscellaneous 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 rm's earnings for the accounting period are paid during April of the following year