. Prepare the necessary journal entries for the above transactions.
Below are the transaction Marco Polo Merchandising Company for the first month of operation.
Jan 1 Mr. Polo invested P 800,000 cash and Office Equipment – P250,000 into the business to buy and sell various merchandise.
3 Purchased on account merchandise, P250,000 terms 2/10, n/30 FOB Shipping point.
4 Purchased Office supplies on account P2,500, 2/10, n/30
5 Sold for cash P 600,000;
6 Returned P5,000 worth of defective merchandise purchased on Jan 3
10 Sold on account, P320,000 to customers with credit terms: 2/10, n/30 FOB Destination.
10 Paid the freight charges on transaction made on Jan. 3, P1, 50011 Paid in 50% the purchases made on Jan. 3. No discount was allowed.
12 Made additional purchases for cash,P 150,000.
14 Borrowed from the bank P 550,000 and issued a promissory note.
15 Purchased computer equipment P65,000 on account terms 2/10, n/30
15 Paid salaries to employees – P 3.500.
16 Refunded P 5,000 to customers.
17 Sold merchandise for P 650,000. FOB Destination.
20 Paid the freight charges on Jan 10- P1, 000 and 12 – P1, 500.
20 Collected from customers on account on Jan 10.
21 Paid in full the balance due on purchases made on Jan 3.
25 Purchased merchandise on account, P 320,000 terms 2/10, n/30 FOB Shipping Point
26 Sold Merchandise, P 350,000 terms 2/10, n/30
27 Owner got P 15,500 from the business.
28 Paid thefollowing: Rent – P 4,000; Utilities- P3, 000, Advertising – P1, 500 and salaries
P4, 500.
30 Merchandise inventory at the end amounts to P150, 000
INSRUCTIONS:
1. Prepare the necessary
2.
3. Prepare the
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