TRADE INC

Trial Balance
February 1, 2020

110 Cash P 36, 960

120 Accounts Receivable 215 040
130 Merchandise Inventory 462,560
140 Supplies 57,120
150 Prepaid Insurance 53,760
160 Land 515,200
170 Building 1,960,000
175 Accumulated Depreciation- Building P 392,000
180 Equipment 2,587,200
185 Accumulated Depreciation-Equipment 705,600
210 Accounts Payable 120,960
220 Salaries Payable
230 VAT Payable
240 Mortgage Payable 2,912,000
310 RESSE E. LER, Capital 1,757,280
320 RESSE E. LER, Withdrawals
330 Income Summary
410 Sales
420 Sales Returns and Allowances
430 Sales Discounts
510 Purchases
520 Purchase Returns and Allowances
530 Purchase discounts
540 Transportation In
610 Salaries Expense
620 Supplies Expense
630 Insurance Expense
640 Depreciation Expense- Building
650 depreciation Expense-Equipment
660 Transportation Out
670 Advertising Expense
680 Internet Expense
690 Miscellaneous Expense
5,887,840 5,887,840

During the month of February 2020, the following transactions occurred:

Feb 1 Collected P 126 560 from customers on account issuing O.R. no. 138323.
2 Paid P 71 680 of accounts due. This account is subject for a 3% discount with Check No. 59140.
4 Purchased merchandise, P 190 400. Term: FOB Shipping point; 3/10, n30 and received S.I. no.
46903.
5 Sold merchandise on account to Teenda Enterprises P 302 400. Term: FOB Shipping point; 2/10,
n30. S.I. 104136.
7 Paid for advertising for the month of February, P 6, 720. Check No. 59141.
Sold Merchandise for cash to various customers. C.I. 2009129.
8 Paid the amount due from the Feb. 4 transaction. Check No. 59142.
9 Paid Send-to-all Delivery Services for freight of delivering merchandise last Feb.4., P 4, 480. Check
No 59143.
10 Received returns from the Teenda Enterprise, P 78, 400. Issued Credit Memo No. 201201
12 Received full payment form Teenda Enterprise. Issued O.R. no. 138324.
14 Paid P 29, 120 interest on mortgage payable.
15 Paid salaries of P 50 000.
 16 Sold Merchandise on account to Reith Tyler Retailing, P 439, 040. Terms: FOB destination; 2/10,
n30. Issued S.I. no. 104137.
18 Paid P 4 80 freight charges on the sale of Feb. 16. Check No. 59144.
19 Acquired supplies for cash, P 23, 520. Check No. 59145.
20 Purchased P 140 000 worth of merchandise from Pali Tan and Co. on account. Terms: FOB
destination; 3/10, n30. S.I. 51379.
22 Paid P 7,840 miscellaneous expense. Check No. 59146.
23 Received payment form Reith Tyler Retailing.
24 Purchased P 417, 760 worth of merchandise on account from Comp. La Han Wholesale. Terms: FOB
Shipping Point; 3/10, n30. S.I. 91228
Paid Send-to-all Delivery Services for freight for delivering merchandise acquired from Comp. La
Han Wholesale. Check No 59147., P10 080.
25 Sold merchandise to Reith Tyler Retailing on account, P 470 400. Terms: FOB shipping point; 2/10,
n30. S.I. 104138.
26 Received returns from Reith Tyler Retailing worth P 79 520. Issued Credit Memo No. 201202
28 Trade Inc. withdrew P 400 000 from the business.
Returned merchandise purchased from Comp. La Han Wholesale on Feb. 24, 2020, P 28 000. Issued
Debit Memo No. 403046.

Additional information:
 Salaries in the amount of P 51 000 have accrued on February 28.
 Insurance coverage with premiums of P 2 240 has expired at month-end.
 The building has a salvage value of P 280 000 with 25 years of estimated usefulness.
 The equipment has an annual depreciation of P 161 280 annually.
 Supplies on hand at month end amounted to P 15 680.
 A count of merchandise inventory on Feb. 28, 2020 is P 444 640.