Activity #2: Sophia Grant opened a shoe store on the month of August 2012.

The following
were selected transactions from the first month of operation. Prepare the journal entry.

2012
August 1 – Invested Php400,000 cash and Php350,000 worth of merchandise to start her
business.
3 – Purchased merchandise from Payton Shoes Inc. worth Php500,000. Terms: 2/10,
n/30.
8 – Purchased merchandise for cash, Php750,000 and received a 15% trade discount.
9 – Returned Php50,000 worth of defective merchandise to Payton Shoes Inc. and
received a credit memo.
12 – Paid in full the amount due to Payton Shoes Inc.
15 – Purchased additional merchandise for cash, Php300,000.
17 – Purchased Php600,000 merchandise from Pioneer Shoes. Terms: 50% down and
the balance is on account. Terms: 3/10, n/45.
20 – Received a refund, Php10,000 for the defective merchandise returned from August
15 purchase.
24 – Purchased equipment from J. Travis Co., Php50,000. Terms: 2/10, n/20.
26 – Paid the amount due to Pioneer Shoes.
29 – Paid J. Travis Co. in full.