Mr$.$ Nikola Tesla launched Tesla Supermart on December $1,20$x$1$ 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 is$₱60,225.$

Additional information for year$-$end adjustments.

$Ø$ The useful life of the equipment is $5$ years with salvage value of $₱2,000$

$Ø$ The useful life of the service vehicle is $10$ years with salvage value of $₱10,000$

$Ø$ 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

Answer rating: 100% (QA)

Journal Entries for December December 1 Cash investment by Mr Tesla plaintext Copy code Debit Cash 110 150000 Credit Tesla Capital 310 150000 December 2 Equipment provided by Mr Tesla plaintext Copy c... View the full answer