entered into the following transactions in May 2010: May 1- The Western Wear Company was organized as a corporation. The stockholders purchased stock at par for the following assets in the business: Php462,000 cash, Php168,000 merchandise, and Php105,000 land. May 1- Paid rent on administrative offices for May, Php25,200. May 5- The company purchased merchandise from Carl Company on account, Php189,000; terms 2/10, n/30. Freight terms were FOB shipping point, freight collect. May 8- Cash of Php8,400 was paid to a trucking company for delivery of the merchandise purchased May 5. May 14- The company sold merchandise on account, Php315,000; terms 2/10, n/30 May 15- Paid Carl Company the amount due on the purchase of May 5. May 16- Of the merchandise sold May 14, Php13,860 was returned for credit. May 19- Salaries for services received were paid for May as follows: office employees, Php16,800; salespersons, Php33,600. May 24- The company collected the amount due on Php126,000 of the accounts receivable arising from the sale of May 14. May 25- The company purchased merchandise on account from Bond Company, Php151,200; terms 2/10, n/30. Freight terms were FOB shipping point, freight collect. May 27- Of the merchandise purchased May 25, Php25,200 was returned to the vendor. May 28- A trucking company was paid Php2,100 for delivery to The Western Wear Company of the goods purchased May 25. May 29- The company sold merchandise on open account, Php15,120; terms 2/10, n/30. May 30- Cash sales were Php74,088. May 30- Cash of Php100,800 was received from the sale of May 14. May 31- Paid Bond Company for the merchandise purchased on May 25, taking into consideration the merchandise returned on May 27. REQUIRED • Journalize the following transactions.
entered into the following transactions in May 2010: May 1- The Western Wear Company was organized as a corporation. The stockholders purchased stock at par for the following assets in the business: Php462,000 cash, Php168,000 merchandise, and Php105,000 land. May 1- Paid rent on administrative offices for May, Php25,200. May 5- The company purchased merchandise from Carl Company on account, Php189,000; terms 2/10, n/30. Freight terms were FOB shipping point, freight collect. May 8- Cash of Php8,400 was paid to a trucking company for delivery of the merchandise purchased May 5. May 14- The company sold merchandise on account, Php315,000; terms 2/10, n/30 May 15- Paid Carl Company the amount due on the purchase of May 5. May 16- Of the merchandise sold May 14, Php13,860 was returned for credit. May 19- Salaries for services received were paid for May as follows: office employees, Php16,800; salespersons, Php33,600. May 24- The company collected the amount due on Php126,000 of the accounts receivable arising from the sale of May 14. May 25- The company purchased merchandise on account from Bond Company, Php151,200; terms 2/10, n/30. Freight terms were FOB shipping point, freight collect. May 27- Of the merchandise purchased May 25, Php25,200 was returned to the vendor. May 28- A trucking company was paid Php2,100 for delivery to The Western Wear Company of the goods purchased May 25. May 29- The company sold merchandise on open account, Php15,120; terms 2/10, n/30. May 30- Cash sales were Php74,088. May 30- Cash of Php100,800 was received from the sale of May 14. May 31- Paid Bond Company for the merchandise purchased on May 25, taking into consideration the merchandise returned on May 27. REQUIRED • Journalize the following transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
REQUIRED:
Journalize the following transactions.
Transcribed Image Text:The Western Wear Company, a wholesaler of western wear clothing, sells to retailers. The company
entered into the following transactions in May 2010:
May 1- The Western Wear Company was organized as a corporation. The stockholders purchased stock
at par for the following assets in the business: Php462,000 cash, Php168,000 merchandise, and
Php105,000 land.
May 1- Paid rent on administrative offices for May, Php25,200.
May 5- The company purchased merchandise from Carl Company on account, Php189,000; terms 2/10,
n/30. Freight terms were FOB shipping point, freight collect.
May 8- Cash of Php8,400 was paid to a trucking company for delivery of the merchandise purchased
May 5.
May 14- The company sold merchandise on account, Php315,000; terms 2/10, n/30
May 15- Paid Carl Company the amount due on the purchase of May 5.
May 16- Of the merchandise sold May 14, Php13,860 was returned for credit.
May 19- Salaries for services received were paid for May as follows: office employees, Php16,800;
salespersons, Php33,600.
May 24- The company collected the amount due on Php126,000 of the accounts receivable arising from
the sale of May 14.
May 25- The company purchased merchandise on account from Bond Company, Php151,200; terms
2/10, n/30. Freight terms were FOB shipping point, freight collect.
May 27- Of the merchandise purchased May 25, Php25,200 was returned to the vendor.
May 28- A trucking company was paid Php2,100 for delivery to The Western Wear Company of the
goods purchased May 25.
May 29- The company sold merchandise on open account, Php15,120; terms 2/10, n/30.
May 30- Cash sales were Php74,088.
May 30- Cash of Php100,800 was received from the sale of May 14.
May 31- Paid Bond Company for the merchandise purchased on May 25, taking into consideration the
merchandise returned on May 27.
REQUIRED
• Journalize the following transactions.
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