On July 1, Moonlight Lighting was opened by M. Lopez with a total investment of P 250,000 of which P 50,000 was in the form of candles and lamps and P 200,000 in cash.Succeeding transactions are as follows: Prepare the general journal DateTransactionsPurchased scented candles from Pax Candles, P 7,500. terms : P 2,500 down, balance2/10, n30Purchased shell decors from Divi Crafts distributor, P 10,000. Term: 3% eom, n/30, FOBshipping point, freight collect.July 234Freight on shell decors paid in cash P 7505Cash sales amounted to P 15,000.Sold to Manuela's Grocery goods costing P 9,000. terms: 4,000 down, balance 2/5, 1/10,n 3078Purchased office supplies from Rex bookstore P 1,500. Terms: COD10Returned part of the candles purchased from Pax which were found unsatisfactory, P500.12A customer returned merchandise and was given a cash refund of P 220.13The account of Manuela's was collected.15Paid salaries in cash to office clerk, P 2,500, and store helper, P 3,500.17Delivered goods to Kulasa Scents, P 14,000. Terms, COD18Paid Divi Crafts P 5,000 less the corresponding discount.Maria Pena, a friend, bought goods with a list price of P 5,500. terms: 1% and 2% tradediscounts, balance 2/10, n/30. FOB shipping point. Freight prepaid for Pena P 500.1920Paid Pax candles in full of account.25Collected 20% from Maria Pena31Paid 3% percentage tax on net sales.

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Description: On July 1, Moonlight Lighting was opened by M. Lopez with a total investment of P 250,000 of which P 50,000 was in the form of candles and lamps and P 200,000 in cash.Succeeding transactions are as follows: Prepare the general journal DateTransactio

July 1 Purchase Dr. 50000 Cash Dr. 200000 Capital Cr. 250000 ( being…

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On July 1, Moonlight Lighting was opened by M. Lopez with a total investment of P 250,000 of which P 50,000 was in the form of candles and lamps and P 200,000 in cash. Succeeding transactions are as follows: Prepare the general journal

On July 1, Moonlight Lighting was opened by M. Lopez with a total investment of P 250,000 of which P 50,000 was in the form of candles and lamps and P 200,000 in cash. Succeeding transactions are as follows: Prepare the general journal

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter9: Sales And Purchases

Section: Chapter Questions

Problem 9E: Williams Corporation had the following purchases for May: May 3Bought ten lawn rakes from Owens...

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

On July 1, Moonlight Lighting was opened by M. Lopez with a total investment of P 250,000 of which P 50,000 was in the form of candles and lamps and P 200,000 in cash.

Succeeding transactions are as follows:

Prepare the general journal

Date
Transactions
Purchased scented candles from Pax Candles, P 7,500. terms : P 2,500 down, balance
2/10, n30
Purchased shell decors from Divi Crafts distributor, P 10,000. Term: 3% eom, n/30, FOB
shipping point, freight collect.
July 2
3
4
Freight on shell decors paid in cash P 750
5
Cash sales amounted to P 15,000.
Sold to Manuela's Grocery goods costing P 9,000. terms: 4,000 down, balance 2/5, 1/10,
n 30
7
8
Purchased office supplies from Rex bookstore P 1,500. Terms: COD
10
Returned part of the candles purchased from Pax which were found unsatisfactory, P500.
12
A customer returned merchandise and was given a cash refund of P 220.
13
The account of Manuela's was collected.
15
Paid salaries in cash to office clerk, P 2,500, and store helper, P 3,500.
17
Delivered goods to Kulasa Scents, P 14,000. Terms, COD
18
Paid Divi Crafts P 5,000 less the corresponding discount.
Maria Pena, a friend, bought goods with a list price of P 5,500. terms: 1% and 2% trade
discounts, balance 2/10, n/30. FOB shipping point. Freight prepaid for Pena P 500.
19
20
Paid Pax candles in full of account.
25
Collected 20% from Maria Pena
31
Paid 3% percentage tax on net sales.

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