Mr. Nikola Tesla launched Tesla Supermart on December 1, 20x1 with a cash investment of $150,000. The following are additional transactions for the month: 2 Equipment valued at $20,000 was given by Mr. Tesla to his business. 3 Purchased supplies for $12,600 on credit. Used asset method to record the transaction. 4 Purchased a 100,000 service truck. A cash payment of P25,000 was provided, and the remaining was given as a promissory note, payable in six equal monthly installments. 6 Purchased goods from Einstein Enterprises $50,000, Term, 3/15, n/30. 8 For the December 6 transaction, a delivery fee of $1,500 was paid. 10 Sold and delivered merchandise on account P45,000, Term, 2/10, n/30. Cost of Merchandise P30,000. 10 Paid P900 freight for December 10 transaction. 13 Returned $7,500 worth of damaged goods to Einstein Enterprises. 15 Paid salaries to employees, totaling $15,000 16 Signed a promissory note for $30,000 for long term loan obtained from Newton Bank. 17 Received $4,500 worth of returned goods from customers on December 10. Cost of merchandise returned, $3,000. 18 Paid P7,600 of the amount owed from the purchase on December 3. 19 Purchase additional goods from Galileo Supermarket amounting to $90,000. 20 Received full customer settlement for the sale made on December 10. 21 Account paid in full to Einstein Enterprises. 22 Goods costing $20,500 was sold for P30,750. 26 Cash received in the amount of $7,500 and a promissory note in the amount of $30,000 for goods sold to a key customer. The cost of the merchandise is $25,000. 27 Mr. Tesla took a cash withdrawal of P15,000 from the business. 29 Paid P2,500 in telephone expenses. 30 Paid building rentals for the month, $7,500. 30 Paid the first installment of the note payable on Service Truck. Paid Salaries #11,300, net of the following deductions: SSS, P380; Pag-IBIG, P100; Philhealth 31 P220 he Merchandise Inventory at the end of the of the month is P60,225. ditional information for year-end adjustments. ØThe useful life of the equipment is 5 years with salvage value of $2,000 ØThe useful life of the service vehicle is 10 years with salvage value of $10,000 ØRemaining unused supplies worth $9,100.
Mr. Nikola Tesla launched Tesla Supermart on December 1, 20x1 with a cash investment of $150,000. The following are additional transactions for the month: 2 Equipment valued at $20,000 was given by Mr. Tesla to his business. 3 Purchased supplies for $12,600 on credit. Used asset method to record the transaction. 4 Purchased a 100,000 service truck. A cash payment of P25,000 was provided, and the remaining was given as a promissory note, payable in six equal monthly installments. 6 Purchased goods from Einstein Enterprises $50,000, Term, 3/15, n/30. 8 For the December 6 transaction, a delivery fee of $1,500 was paid. 10 Sold and delivered merchandise on account P45,000, Term, 2/10, n/30. Cost of Merchandise P30,000. 10 Paid P900 freight for December 10 transaction. 13 Returned $7,500 worth of damaged goods to Einstein Enterprises. 15 Paid salaries to employees, totaling $15,000 16 Signed a promissory note for $30,000 for long term loan obtained from Newton Bank. 17 Received $4,500 worth of returned goods from customers on December 10. Cost of merchandise returned, $3,000. 18 Paid P7,600 of the amount owed from the purchase on December 3. 19 Purchase additional goods from Galileo Supermarket amounting to $90,000. 20 Received full customer settlement for the sale made on December 10. 21 Account paid in full to Einstein Enterprises. 22 Goods costing $20,500 was sold for P30,750. 26 Cash received in the amount of $7,500 and a promissory note in the amount of $30,000 for goods sold to a key customer. The cost of the merchandise is $25,000. 27 Mr. Tesla took a cash withdrawal of P15,000 from the business. 29 Paid P2,500 in telephone expenses. 30 Paid building rentals for the month, $7,500. 30 Paid the first installment of the note payable on Service Truck. Paid Salaries #11,300, net of the following deductions: SSS, P380; Pag-IBIG, P100; Philhealth 31 P220 he Merchandise Inventory at the end of the of the month is P60,225. ditional information for year-end adjustments. ØThe useful life of the equipment is 5 years with salvage value of $2,000 ØThe useful life of the service vehicle is 10 years with salvage value of $10,000 ØRemaining unused supplies worth $9,100.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Mr. Nikola Tesla launched Tesla Supermart on December 1, 20x1 with a cash investment of
P150,000. The following are additional transactions for the month:
2 Equipment valued at $20,000 was given by Mr. Tesla to his business.
3 Purchased supplies for $12,600 on credit. Used asset method to record the transaction.
4
Purchased a 100,000 service truck. A cash payment of $25,000 was provided, and the
remaining was given as a promissory note, payable in six equal monthly installments.
6 Purchased goods from Einstein Enterprises 50,000, Term, 3/15, n/30.
8 For the December 6 transaction, a delivery fee of $1,500 was paid.
10
Sold and delivered merchandise on account P45,000, Term, 2/10, n/30. Cost of Merchandise,
$30,000.
10 Paid P900 freight for December 10 transaction.
13 Returned $7,500 worth of damaged goods to Einstein Enterprises.
15 Paid salaries to employees, totaling $15,000
16 Signed a promissory note for $30,000 for long term loan obtained from Newton Bank.
17
Received $4,500 worth of returned goods from customers on December 10. Cost of
merchandise returned, P3,000.
18 Paid $7,600 of the amount owed from the purchase on December 3.
19 Purchase additional goods from Galileo Supermarket amounting to $90,000.
20 Received full customer settlement for the sale made on December 10.
21 Account paid in full to Einstein Enterprises.
22 Goods costing $20,500 was sold for $30,750.
26
Cash received in the amount of $7,500 and a promissory note in the amount of $30,000 for
goods sold to a key customer. The cost of the merchandise is $25,000.
27 Mr. Tesla took a cash withdrawal of P15,000 from the business.
29 Paid P2,500 in telephone expenses.
30 Paid building rentals for the month, $7,500.
30 Paid the first installment of the note payable on Service Truck.
31
Paid Salaries $11,300, net of the following deductions: SSS, P380; Pag-IBIG, P100; Philhealth,
P220
The Merchandise Inventory at the end of the of the month is P60,225.
Additional information for year-end adjustments.
ØThe useful life of the equipment is 5 years with salvage value of $2,000
ØThe useful life of the service vehicle is 10 years with salvage value of $10,000
ØRemaining unused supplies worth $9,100.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff8481c3b-6b43-4137-9a9a-db1ab3566588%2Fb5639ed3-526c-4893-bb56-575d237c0f38%2Fvzm3e55_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Mr. Nikola Tesla launched Tesla Supermart on December 1, 20x1 with a cash investment of
P150,000. The following are additional transactions for the month:
2 Equipment valued at $20,000 was given by Mr. Tesla to his business.
3 Purchased supplies for $12,600 on credit. Used asset method to record the transaction.
4
Purchased a 100,000 service truck. A cash payment of $25,000 was provided, and the
remaining was given as a promissory note, payable in six equal monthly installments.
6 Purchased goods from Einstein Enterprises 50,000, Term, 3/15, n/30.
8 For the December 6 transaction, a delivery fee of $1,500 was paid.
10
Sold and delivered merchandise on account P45,000, Term, 2/10, n/30. Cost of Merchandise,
$30,000.
10 Paid P900 freight for December 10 transaction.
13 Returned $7,500 worth of damaged goods to Einstein Enterprises.
15 Paid salaries to employees, totaling $15,000
16 Signed a promissory note for $30,000 for long term loan obtained from Newton Bank.
17
Received $4,500 worth of returned goods from customers on December 10. Cost of
merchandise returned, P3,000.
18 Paid $7,600 of the amount owed from the purchase on December 3.
19 Purchase additional goods from Galileo Supermarket amounting to $90,000.
20 Received full customer settlement for the sale made on December 10.
21 Account paid in full to Einstein Enterprises.
22 Goods costing $20,500 was sold for $30,750.
26
Cash received in the amount of $7,500 and a promissory note in the amount of $30,000 for
goods sold to a key customer. The cost of the merchandise is $25,000.
27 Mr. Tesla took a cash withdrawal of P15,000 from the business.
29 Paid P2,500 in telephone expenses.
30 Paid building rentals for the month, $7,500.
30 Paid the first installment of the note payable on Service Truck.
31
Paid Salaries $11,300, net of the following deductions: SSS, P380; Pag-IBIG, P100; Philhealth,
P220
The Merchandise Inventory at the end of the of the month is P60,225.
Additional information for year-end adjustments.
ØThe useful life of the equipment is 5 years with salvage value of $2,000
ØThe useful life of the service vehicle is 10 years with salvage value of $10,000
ØRemaining unused supplies worth $9,100.
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