Il- Problem Solving 1. The following transactions were completed by ACE Company during May of the current year. ACE Company uses a perpetual inventory system. Journalize the following transactions. May 3 Purchased merchandise on account from Prime Co., P200,000, terms FOB shipping point, 2/10, n/30, with prepaid freight of P6,000 added to the invoice. 5 Purchased merchandise on account from Nova Co., P425,000, terms FOB destination, 1/10, n/30. 6 Sold merchandise on account to K. S. Reyes Co., list price P200,000, trade dis- count 30%, terms 2/10, n/30. The cost of the merchandise sold was P56,250. 8 Purchased office supplies for cash, P7,500. 10 Paid Prime Co. on account for purchase of May 3, less discount. 13 Returned merchandise purchased on May 5 from Nova Co., P65,000. 14 Purchased merchandise for cash, P525,000. 15 Received cash on account from sale of May 6 to K. S. Reyes Co., less discount. 16 Paid Nova Co. on account for purchase of May 5, less return of May 10 and discount. 19 Sold merchandise on MasterCard credit cards, P122,500. The cost of the merchandise sold was P49,000. 22 Sold merchandise on account to King Co., P174,000, terms 2/10, n/30. The cost of the merchandise sold was P70,000. 24 Sold merchandise for cash, P217,500. The cost of the merchandise sold was P87,500. 25 Received merchandise returned by King Co. from sale on May 22, P74,000. The cost of the returned merchandise was P30,000. 31 Paid a service processing fee of P7,000 for MasterCard sales.
Il- Problem Solving 1. The following transactions were completed by ACE Company during May of the current year. ACE Company uses a perpetual inventory system. Journalize the following transactions. May 3 Purchased merchandise on account from Prime Co., P200,000, terms FOB shipping point, 2/10, n/30, with prepaid freight of P6,000 added to the invoice. 5 Purchased merchandise on account from Nova Co., P425,000, terms FOB destination, 1/10, n/30. 6 Sold merchandise on account to K. S. Reyes Co., list price P200,000, trade dis- count 30%, terms 2/10, n/30. The cost of the merchandise sold was P56,250. 8 Purchased office supplies for cash, P7,500. 10 Paid Prime Co. on account for purchase of May 3, less discount. 13 Returned merchandise purchased on May 5 from Nova Co., P65,000. 14 Purchased merchandise for cash, P525,000. 15 Received cash on account from sale of May 6 to K. S. Reyes Co., less discount. 16 Paid Nova Co. on account for purchase of May 5, less return of May 10 and discount. 19 Sold merchandise on MasterCard credit cards, P122,500. The cost of the merchandise sold was P49,000. 22 Sold merchandise on account to King Co., P174,000, terms 2/10, n/30. The cost of the merchandise sold was P70,000. 24 Sold merchandise for cash, P217,500. The cost of the merchandise sold was P87,500. 25 Received merchandise returned by King Co. from sale on May 22, P74,000. The cost of the returned merchandise was P30,000. 31 Paid a service processing fee of P7,000 for MasterCard sales.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Il- Problem Solving
1. The following transactions were completed by ACE Company during May of the current year. ACE
Company uses a perpetual inventory system. Journalize the following transactions.
May 3 Purchased merchandise on account from Prime Co., P200,000, terms FOB shipping point, 2/10,
n/30, with prepaid freight of P6,000 added to the invoice.
5 Purchased merchandise on account from Nova Co., P425,000, terms FOB destination, 1/10, n/30.
6 Sold merchandise on account to K. S. Reyes Co., list price P200,000, trade dis- count 30%, terms
2/10, n/30. The cost of the merchandise sold was P56,250.
8 Purchased office supplies for cash, P7,500.
10 Paid Prime Co. on account for purchase of May 3, less discount.
13 Returned merchandise purchased on May 5 from Nova Co., P65,000.
14 Purchased merchandise for cash, P525,000.
15 Received cash on account from sale of May 6 to K. S. Reyes Co., less discount.
16 Paid Nova Co. on account for purchase of May 5, less return of May 10 and discount.
19 Sold merchandise on MasterCard credit cards, P122,500. The cost of the merchandise sold was
P49,000.
22 Sold merchandise on account to King Co., P174,000, terms 2/10, n/30. The cost of the
merchandise sold was P70,000.
24 Sold merchandise for cash, P217,500. The cost of the merchandise sold was P87,500.
25 Received merchandise returned by King Co. from sale on May 22, P74,000. The cost of the
returned merchandise was P30,000.
31 Paid a service processing fee of P7,000 for MasterCard sales.
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