Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Mr. Nikola Tesla launched Tesla Supermart on December 1, 20x1 with a cash investment of 150,000. The following are additional transactions for the month: 2
Mr. Nikola Tesla launched Tesla Supermart on December 1, 20x1 with a cash investment of 150,000. The following are additional transactions for the month:
2 | Equipment valued at 20,000 was given by Mr. Tesla to his business. | |
3 | Purchased supplies for 12,600 on credit. Used asset method to record the transaction. | |
4 | Purchased a 100,000 service truck. A cash payment of 25,000 was provided, and the remaining was given as a promissory note, payable in six equal monthly installments. | |
6 | Purchased goods from Einstein Enterprises 50,000, Term, 3/15, n/30. | |
8 | For the December 6 transaction, a delivery fee of 1,500 was paid. | |
10 | Sold and delivered merchandise on account 45,000, Term, 2/10, n/30. Cost of Merchandise, 30,000. | |
10 | Paid 900 freight for December 10 transaction. | |
13 | Returned 7,500 worth of damaged goods to Einstein Enterprises. | |
15 | Paid salaries to employees, totaling 15,000 | |
16 | Signed a promissory note for 30,000 for long term loan obtained from Newton Bank. | |
17 | Received 4,500 worth of returned goods from customers on December 10. Cost of merchandise returned, 3,000. | |
18 | Paid 7,600 of the amount owed from the purchase on December 3. | |
19 | Purchase additional goods from Galileo Supermarket amounting to 90,000. | |
20 | Received full customer settlement for the sale made on December 10. | |
21 | Account paid in full to Einstein Enterprises. | |
22 | Goods costing 20,500 was sold for 30,750. | |
26 | Cash received in the amount of 7,500 and a promissory note in the amount of 30,000 for goods sold to a key customer. The cost of the merchandise is 25,000. | |
27 | Mr. Tesla took a cash withdrawal of 15,000 from the business. | |
29 | Paid 2,500 in telephone expenses. | |
30 | Paid building rentals for the month, 7,500. | |
30 | Paid the first installment of the note payable on Service Truck. | |
31 | Paid Salaries 11,300, net of the following deductions: SSS, 380; Pag-IBIG, 100; Philhealth, 220 | |
The Merchandise Inventory at the end of the of the month is60,225. | ||
Additional information for year-end adjustments. | ||
The useful life of the equipment is 5 years with salvage value of 2,000 | ||
The useful life of the service vehicle is 10 years with salvage value of 10,000 | ||
Remaining unused supplies worth 9,100. | ||
Chart of Accounts | ||
Acct No. | Account Titles | |
110 | Cash | |
120 | Accounts Receivable | |
130 | Notes Receivable | |
140 | Supplies | |
150 | Merchandise Inventory | |
160 | Equipment | |
170 | Accumulated Depreciation - Equipment | |
180 | Service Vehicle | |
190 | Accumulated Depreciation - Service Vehicle | |
210 | Accounts Payable | |
220 | SSS Payable | |
230 | Pag-IBIG Payable | |
240 | Phihealth Payable | |
250 | Notes Payable | |
310 | Tesla, Capital | |
320 | Tesla, Drawings | |
410 | Sales | |
420 | Sales Returns & Allowances | |
430 | Sales Discount | |
510 | Purchases | |
520 | Purchase Returns & Allowances | |
530 | Purchase Discount | |
540 | Freight In | |
610 | Freight Out | |
620 | Salaries Expense | |
630 | Rent Expense | |
640 | Telephone Expense | |
650 | Supplies Expense | |
660 | Depreciation Expense | |
700 | Income Summary |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started