THANKS IN ADVANCE

MODULE TEST 1. Selected transactions of G. Calma Trading during the first 15 days of January 2011 were as follows: (50 points) Cash sales of merchandise Php50,000 Sales of merchandise on account 15,000 Store supplies purchased on account 2,500 Purchased of merchandise for cash 40,000 Purchased of merchandise on account 20,000 Freight paid on merchandise purchased 1,800 Purchase discounts enjoyed 3,900 Wages paid for the period 10,000 Defective merchandise returned by Customer, sold on account 1,300 Returned defective merchandise purchased for cash 1,000 Transactions during the second half of the month: Cash sales 105,000 Sales on account 27,000 Freight paid on cash sales 1,400 Purchases: a Php35,000, terms 2/10, n/30 (paid within discount period) Php8,000, terms 10 - 10%, 5/5, n/30 (paid within discount period) c) Php9,000, terms 1/10, n/30 (paid beyond discount period) Php12,000 cash purchases, FOB destination (freight, Php1,200) Wages paid for the second half of the month 10,000 Unpaid wages at the end of month 1,800 Utilities expense for the month (unpaid) 1,800 Interest earned on deposits 1,200Additional information: Merchandise inventory at the beginning of the month 8,000 Merchandise inventory at the end of the month 42,000 Store supplies on hand at the end of the month 900 REQUIRED: Prepare a multi-step income statement for the period ended January 31, 2011