Prepare the Income Statement t June 2 Commenced business with a capital of 1,000,000June 4 Purchased 2,000 vape at a cost of Php 250.00 per vape.June 5 Paid trucking firm Php 6,000.00 to ship the vapespurchased.June 7 Purchased 800 vapes at a cost of Php 250.00 per vapeJune 8 Paid trucking firm Php 5,000.00 to ship the vapespurchased.June 9 Sold 1,100 vapes purchased on June 4June 10 Bought office supplies worth 50,000June 12 Paid for the tires purchased on June 4June 14 Purchased Office Supplies for cash, P 3,600June 15 Sold 500 tires from those purchased on June 2. Theselling price was Php 250.00per tire.June 18 Bought furniture for the shop and paid cash 12,000June 19 Received cash from sale of tires on June 7.June 22 withdrew P 8,000 cash for personal useJune 25 Paid for vapes purchased on June 5.June 28 Purchased machinery for cash 15,000

Answered: Image /qna-images/answer/a291255f-c154-4923-8a7f-c1159a25da47.jpg

Answered: Prepare the Income Statement t

Business

Accounting

Prepare the Income Statement t

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5EA: Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following...

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Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following transactions: Paid shipping of $1,000 Paid installation fees of $2,000 Pays annual maintenance cost of $200 Received a 5% discount on $25,000 sales price Determine the acquisition cost of the equipment.
Capstone Consulting Services acquired land 5 years ago for $200,000. Capstone recently signed an agreement to sell the land for $375,000. In accordance with the sales agreenwnt, the buyer transferred $375,000 to Capstone’s bank account on February 20. How would elements of the accounting equation be affected by the sale?
Garcia Co. owns equipment that costs $76,800, with accumulated depreciation of $40,800. Garcia sells the equipment for cash. Record the journal entry for the sale of the equipment if Garcia were to sell the equipment for the following amounts: A. $47,000 cash B. $36,000 cash C. $31,000 cash
June 2 Commenced business with a capital of 1,000,000 June 4 Purchased 2,000 vape at a cost of Php 250.00 per vape. June 5 Paid trucking firm Php 6,000.00 to ship the vapes purchased. June 7 Purchased 800 vapes at a cost of Php 250.00 per vape June 8 Paid trucking firm Php 5,000.00 to ship the vapes purchased. June 9 Sold 1,100 vapes purchased on June 4 June 10 Bought office supplies worth 50,000 June 12 Paid for the tires purchased on June 4 June 14 Purchased Office Supplies for cash, P 3,600 June 15 Sold 500 tires from those purchased on June 2. The selling price was Php 250.00 per tire. June 18 Bought furniture for the shop and paid cash 12,000 June 19 Received cash from sale of tires on June 7. June 22 withdrew P 8,000 cash for personal use June 25 Paid for vapes purchased on June 5. June 28 Purchased machinery for cash 15,000 Required: Post the journal enirues to the individual T accounts with corresponding account numbers.
1. The business is a trading business. For the period it purchased goods for sale valued of Php 100,000. The goods were all sold for a total price of Php 120,000. For the sale only 10% was received as down payment at the end of the year 30% are still collection. How much is the business income? 2. The business was put up from a cash of Php 200,000 the initial capital of the owner. Then, Php 40,000 of the cash was used to purchase an equipment to be used in business. The purchase of equipment resulted in a liability of Php 20,000. How much are the total assets of the business.
Siargao company recently acquired two items of equipment. A. Acquired a press at an invoice price of Php3,000,000 net of 5% cash discount which was taken. Cost of freight and insurance during the shipment were Php50,000 and installation cost amounted to Php200,000 B. Acquired a welding machine at an invoice price of Php2,000,000 subject to a 10% cash discount which was not taken and a 5% rebate which was also not taken. Additional welding supplies were acquired at a cost of Php100,000. What is the total increase in the equipment account as a result of these transactions?
The following transactions has transpired during 2021: a. Furniture & fixtures was purchased on credit for Php50,000. b. Merchandise costing Php202,560 was bought, 50% was paid in cash and the remaining on account. c. Sold merchandise for Php150,000. The company maintains a mark-up of 60% based on cost. d. Utility bills for the year is Php5,368. Additional Information: e. The following fixed assets are as follows: Initial Cost Accumulated Depreciation (as of Dec. 31, 2020) Estimated Useful Life Residual Value Building & Equipment 84,800 16,000 5 yrs. 4,800 Furniture & Fixtures 50,000 0 5 yrs. 1,000 All fixed assets are depreciated using straight line method. f. Unexpired insurance at the end of the year is Php14,000. g. Wages of employees worth Php2,500 was paid in cash. This includes the wages from last year. h. Last year, Dazzle Corporation received an offer from local business owner to rent the unused portion of its land.…
J.K. Builders was incorporated on July 1. Received $70,000 cash invested by owners and issued common stock. Bought an unused field from a local farmer by paying $60,000 cash. As a construction site for smaller projects, it is estimated to be worth $65,000 to J.K. Builders. A lumber supplier delivered lumber supplies to J.K. Builders for future use. The lumber supplies would have normally sold for $10,000, but the supplier gave J.K. Builders a 10 percent discount. J.K. Builders has not yet received the $9,000 bill from the supplier. Borrowed $25,000 from the bank with a plan to use the funds to build a small workshop in August. The loan must be repaid in two years. One of the owners sold $10,000 worth of his common stock to another shareholder for $11,000. Prepare journal entries for the above transactions from the first month of business. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Jerome Garcia started a new business and completed these transactions during August: Aug. 1 Garcia invested PHP48,000 cash in the business. 1 Rented office space and paid PHP800 cash for the August rent. 3 Purchased exploration equipment for PHP22,000 by paying PHP12,000 cash and agreeing to pay the balance in 3 months. 5 Purchased office supplies by paying PHP1,500 cash. 6 Completed exploration work and immediately collected PHP420 cash for the work. 8 Purchased PHP1,350 of office equipment on credit. 15 Completed exploration work on credit in the amount ofPHP8,000. 18 Purchased PHP700 of office supplies on credit. 20 Paid cash for the office equipment purchased on August 8. 24 Billed a client PHP2,400 for work completed; the balance is due in 30 days. 28 Received PHP5,000 cash for the work completed on August 15. 30 Paid the assistant’s salary of PHP1,100 cash for this month. 30 Paid PHP340 cash for this month’s utility bill. 30 Garcia withdrew PHP1,050 cash from the business for…
Jerome Garcia started a new business and completed these transactions during August: Aug. 1 Garcia invested PHP48,000 cash in the business. 1 Rented office space and paid PHP800 cash for the August rent. 3 Purchased exploration equipment for PHP22,000 by paying PHP12,000 cash and agreeing to pay the balance in 3 months. 5 Purchased office supplies by paying PHP1,500 cash. 6 Completed exploration work and immediately collected PHP420 cash for the work. 8 Purchased PHP1,350 of office equipment on credit. 15 Completed exploration work on credit in the amount of PHP8,000. 18 Purchased PHP700 of office supplies on credit. 20 Paid cash for the office equipment purchased on August 8. 24 Billed a client PHP2,400 for work completed; the balance is due in 30 days. 28 Received PHP5,000 cash for the work completed on August 15. 30 Paid the assistant’s salary of PHP1,100 cash for this month. 30 Paid PHP340 cash for this month’s utility bill. 30 Garcia withdrew PHP1,050 cash from the…
Prepare journal entries to the following transactionsfor the year 2020.Sept. 1 Paul Barney invested Php 150, 000 in Barney repair ShopSept 3 Purchased equipment worth Php 80,000 on account.Sept. 12 Paid Php 25, 000 for the equipment purchased dated Sept. 3, 2020.Sept. 15 Rendered service amounting to Php 45,000.Sept. 17 Paid salaries to employees, Php16,000
Tristar Production Company began operations on September 1, 2016. Listed below are a number of transactions that occurred during its first four months of operations. 1. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $100,000 in cash for the property. According to appraisals, the land had a fair value of $75,000 and the building had a fair value of $45,000. 2. On September 1, Tristar signed a $40,000 noninterest-bearing note to purchase equipment. The $40,000 payment is due on September 1, 2017. Assume that 8% is a reasonable interest rate. 3. On September 15, a truck was donated to the corporation. Similar trucks were selling for $2,500. 4. On September 18, the company paid its lawyer $3,000 for organizing the corporation. 5. On October 10, Tristar purchased equipment for cash. The purchase price was $15,000 and $500 in freight charges also were paid. 6. On December 2, Tristar acquired various items of office…