PIMPUM POM Company is a merchandising business its company business transactions

started January 1, 2015 and ending January 31, 2015 a one month transactions. Analyze the
following business transactions and prepare the complete accounting cycle reports

Use the following account title or chart of accounts: Cash, Accounts Receivable, Prepaid
Insurance, Prepaid Rent, Office Supplies, Merchandise Inventory, Furniture and Fixtures,
Equipment, Accounts Payable, Notes Payable, Pimpum Pom, Capital, Retained Earnings
Sales, Purchases, Sales Retums and Allowances, Purchase Returns and Allowances, Bed
Debts, Allowance for Bad Debts, Salaries Expense, Rent Expense, Utilities Expense,
Commission Expense, Organization Expense and Advertising Expense.

Jan. 1- The owner invested Php700,000.00 cash in the company's bank account.

Jan.3- Paid P10,000.00 to City Hall for the mayor's permit. Prepaid rent P150,000.00.

Jan.5- Purchase office supplies on account P8,500.00. Prepaid insurance P120,000.00

Jan.7-Purchased equipment for P75,000.00, paying P15,000.00 cash and issuing a note
payable for the remaining.

Jan. 10- Purchased furniture and fixtures on account amounting to P100,000.00.

Jan. 13- Received cash sales from various customers P300,000.00.

Jan. 15- Billed various customers on account for P200,000.00.

Jan 17- Borrowed P2,000,000.00 from the bank signing a note payable.

Jan. 20- Collected from various customers partial payment of P100,000.00 recorded on
Jan. 15.

Jan. 21- Merchandise Inventory beginning P150,000.00.

Jan.22- Bad debts P5,000.00.Sales Returns P7,000.00, Purchase returns P5,000.00.

Jan. 23-Rent Expense P5,000.00, Utilities Expense P10,000.00.

Jan. 24-Salaries expense P25,000.00., Commission expense P20,000.00

Jan. 27-Organization Expense P10,000.00, Advertising Expense P15,000.00.

Adjustments:

Jan. 31-Rent Expense 10,000.00, Insurance expense P20,000.00.

Jan. 31-Office supplies used P2,000.00.

Merchandise Inventory End P130,000.00.