Prepare the journal entry of the following merchandise transactions using periodic inventory system: Jan. 2 Invested cash to the business and set up the company’s bank account thru BDO, P1,200,000. Jan. 3 Purchased office equipment to Southbound Computer Center for business use, P50,000. Payment terms: Open account, n/30 Jan. 4 Paid 1-year annual rent in advance, P60,000. Asset method will be used. Jan. 5 Purchased the following merchandise from Rebis Co.: • 300 reams of bond paper (P300 list price per ream) • 500 pieces of ballpen (P5 list price per piece) • 100 pieces of standard calculator (P400 list price per piece) Payment terms: Trade discount on total cost of 10%, cash discount of 2/10, n/30. Jan. 6 Paid freight costs on January 5 purchase, P1,000. Jan. 7 Contract signing with her assistant, with an average salary rate of P300/day. Jan. 9 Returned 5 pieces of standard calculator to Rebis Co. due to product defects. Credit memo made by Rebis were received that day. Jan. 10 Sold the following merchandise to Jelli Anne: • 5 reams of bond paper (Invoice price, P520 per ream) • 10 pcs. of ballpen (Invoice price, P11 per pc.) • 2 pcs. Standard calculator (Invoice price, P670 per pc.) Payment terms: 2/10, eom Jan. 12 Sold the following merchandise to Chel Sea Company: • 20 reams of bond paper (P490/ream) • 50 pcs. of ballpen (P9/pc) • 10 pcs. Of calculator (P630/pc) Payment terms: COD Jan. 15 Issued a 10% simple interest note payable to Bank of P.I. to finance the January 5 purchase made, which is to be paid on February 4, 2020. The amount received is equal to the balance to be paid to Rebis Co. (Note: see transactions related to Rebis Co. to determine the cash to be received, since the purpose of this note payable financing is to avail the cash discount). Jan. 15 Paid Rebis Co. in full, using the cash obtained from issuing note payable. Jan. 15 Paid her assistant for 10 days of work. Jan. 18 Collected cash from Jelli Anne to settle her account in full.
Prepare the
Jan. 2 Invested cash to the business and set up the company’s bank account thru BDO, P1,200,000.
Jan. 3 Purchased office equipment to Southbound Computer Center for business use, P50,000. Payment terms: Open account, n/30
Jan. 4 Paid 1-year annual rent in advance, P60,000. Asset method will be used.
Jan. 5 Purchased the following merchandise from Rebis Co.:
• 300 reams of bond paper (P300 list price per ream)
• 500 pieces of ballpen (P5 list price per piece)
• 100 pieces of standard calculator (P400 list price per piece)
Payment terms: Trade discount on total cost of 10%, cash discount of 2/10, n/30.
Jan. 6 Paid freight costs on January 5 purchase, P1,000.
Jan. 7 Contract signing with her assistant, with an average salary rate of P300/day.
Jan. 9 Returned 5 pieces of standard calculator to Rebis Co. due to product defects. Credit memo made by Rebis were received that day.
Jan. 10 Sold the following merchandise to Jelli Anne:
• 5 reams of bond paper (Invoice price, P520 per ream)
• 10 pcs. of ballpen (Invoice price, P11 per pc.)
• 2 pcs. Standard calculator (Invoice price, P670 per pc.)
Payment terms: 2/10, eom
Jan. 12 Sold the following merchandise to Chel Sea Company:
• 20 reams of bond paper (P490/ream)
• 50 pcs. of ballpen (P9/pc)
• 10 pcs. Of calculator (P630/pc)
Payment terms: COD
Jan. 15 Issued a 10% simple interest note payable to Bank of P.I. to finance the January 5 purchase made, which is to be paid on February 4, 2020. The amount received is equal to the balance to be paid to Rebis Co. (Note: see transactions related to Rebis Co. to determine the cash to be received, since the purpose of this note payable financing is to avail the cash discount).
Jan. 15 Paid Rebis Co. in full, using the cash obtained from issuing note payable.
Jan. 15 Paid her assistant for 10 days of work.
Jan. 18 Collected cash from Jelli Anne to settle her account in full.
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