Bienes_Romeo Quiz #36

Candle- Light was opened on July by Maribel Lopez with a total investment if P250,000 of which P50,000 wa

Date: July
2 Purchased Scented candles from Pax Candles, P7,5000. Terms: P2,500 down balan
3 Purchased capiz shell decords from Divisoria Capiz Crafts Distribution, p10,000
4 Freight on capiz shipment paid in cash,p750
5 Cash sales amounted to p15,000.
7 Sold to Manuela Shopping Mart Costing P9,000.
Terms: 4,000 down, balance 2/5,1/10,n/30
8 Purchased office supplies from National Bookstore, P1,500. Terms COD
10 Returned part of candles purchased from Pax which were found unsatisfactory, P500
12 A customer returned merchandise and was given a cash refund of P220.
13 The accounts of Manuela was Collected.
15 Paid salaries in cash to office clerk, P 2,500 and store helper,P 3,500
17 Delivered goods to Kulasa Scents, P 14,000. Terms: CODS.
18 Paid Divisoria Capiz Crafts P5,000 less corresponding Discounts\
19 Marivic Pena, a Friend, bought goods with a list price of p5,500. Terms 1% and 2% tra
Balance 2/10,n/30/ FOB shippimg point. Freight Prepaid for Pena P500
20 Paid Pax Candles in full account
25 Collected 20% from Marivic
31 Paid 3% percentage tax on net sales.

Required

A: Journalize the above transaction completed during the month

B. Post to selected T accounts.
C. Prepare a properly classified income statement assuming the inventory at the end o

A. Journal

Date Accounts and Explanation

1-Jul Cash
Merchandise Inventory
Capital
2-Jul Purchases
Cash
Accounts Payable
3-Jul Purchases
Accounts Receivable
4-Jul Freight In
Cash
5-Jul Cash
Sales
7-Jul Cash
Accounts Receivable
 Sales
8-Jul Office Supplies Expense
Cash
10-Jul Accounts Payable
Purchases Returns and Allowances
12-Jul Sales Returns and Allowances
Cash
13-Jul Cash
Sales Discount
Accounts Receivable
15-Jul Office Salaries
Sales Salariea
Cash
17-Jul Cash
Sales
18-Jul Accounts Payable
Cash
Purchase Discount
19-Jul Accounts Receivable
Sales
Accounts Receivable
Cash
20-Jul Accounts Payable
Cash
25-Jul Cash
Accounts Receivable
31-Jul Sales Tax Expense
Cash
 if P250,000 of which P50,000 was in the form of candles and lamps and P200,000 in cash

,5000. Terms: P2,500 down balance 2/10,n/30

Crafts Distribution, p10,000

P1,500. Terms COD

were found unsatisfactory, P500
cash refund of P220.

e helper,P 3,500

ng Discounts\
e of p5,500. Terms 1% and 2% trade discount
paid for Pena P500

g the month

ssuming the inventory at the end of the month was P 43,500

B. T-Accounts

Debit Credit Purchases

200,000 7,500
50,000 10,000
250,000 17,500
7,500
2,500
5,000
10,000 Freight In
nts Receivable 10,000 750
750
750
15,000
15,000
4,000 Merchandise Inventory
5,000 50,000
 9,000
1,500
1,500
500
ses Returns and Allowances 500 Sales
220 15,000
220 9,000
4,950 14,000
50 5,336.10
nts Receivable 5,000 43,336.10
2,500
3,500
6,000 Capital
14,000 250,000
14,000
5,000
4,850
se Discount 150
5,336.10 Sales Returns and Allowances
5,336.10 220
500
500
4,500
4,500 Purchase Discount
1,167.22 150
nts Receivable 1,167.22
1,291.98
1,291.98
 Accounts Payable Sales Tax Expense
500 1,291.98
5,000 10,000
4,500 5,000
10,000 15,000
5,000

Purchase Returns and Allowance Cash

500 2,500
750
1,500
200,000 220
15,000 6,000
Sales Salaries 4,000 4,850
3,500 4,950 500
 14,000 4,500
1,167.22 1,291.98
239,117.22 22,111.98
217,005.24
Accounts Receivable
5,000
5,336.10 5,000
500 1,167
10,836.10 6,167.22
4,668.88

Office Salaries
2,500

Sales Discount
50

Office Supplies Expense

1,500
C. Income Statement

Candle Light
Income Statement
For the month ended July 31

Net Sales
Cost of Sales (Schedule 1)
Gross Profit
Selling Expenses (Schedule 2)
Administrative Expenses (Schedule 3)
Net Income

Schedules:
Sales
Less: Sales Return and Allowances 220
Sales Discount 50
Net Sales
Schedule 1:
Merchandise Inventory, July 1
Add: Net Cost of Purchases
Purchases
Add: Freight In
Total Cost of Goods Delivered
Less: Purchases Returns and Allowances 500
Purchase Discount 150
Total Goods Available for Sale
Less: Ending Inventory, July 31
Cost of Sales
Net Sales 43,066.10
Less: Cost of Sales 24,100
Gross Profit 18,966.10
Schedule 2 and 3:
Less: Operating Expenses
Selling Expenses
Sales Salaries
Administrative Expenses
Office Salaries
Office Supplies Expense
Operating Expenses
Less: Other Expenses
Sales Tax Expense
Gross Profit 18,966.10
Less: Operating Expenses 7,500.00
Other Expenses 1,291.98
Net Income 10,174.12
Light
atement
nded July 31

43,066.10
24,100
18,996.10
3,500
4,000
10,174.12

43,336.10

270
43,066.10

50,000

17,500
750
18,250

650 17,600
67,600
43,500
24,100

3,500 3,500

2,500
1,500 4,000
7,500

1,291.98