Smash It the leading sports store in the region. It was built and operated by Mateo Tan its sole proprietor. At the beginning of the month of November, the general ledger of Smash It contained the following balances; Cash - P25,000, Inventory- P25,000, A/R- P 15,000, and Mateo, Capital - P65,000, Transactions that occurred during November are as follows: Nov 3 Purchased merchandise inventory on account from Sofia Apparel. Total cost was P 24,500, Terms: FOB Destination, 3/10, net45. The purchase is recorded net of discount. Goods ordered last November 3 arrived at the Smash It warehouse. Full payment to Sofia Apparel was made. Sold merchandise to Dan Balls and equipment worth P5,000 were sold for P 12,300. Cash was received upon payment. 14 17 Sold inventory costing P 10,000 to See Corporation on account. Mark-up on the inventory amounted to 75% of the cost of inventory sold. 18 25% of the merchandise sold last November 17 were defective. These were returned. Credit memo was issued by smash It. 23 Received full payment in settlement of obligation incurred by See Corporation last November 17. Requirements:1. Journalize the transactions in the general journal. Use perpetual inventory system 2. Prepare general ledger 3. Prepare a Trial Balance as of November 30, 2016.
Smash It the leading sports store in the region. It was built and operated by Mateo Tan its sole proprietor. At the beginning of the month of November, the general ledger of Smash It contained the following balances; Cash - P25,000, Inventory- P25,000, A/R- P 15,000, and Mateo, Capital - P65,000, Transactions that occurred during November are as follows: Nov 3 Purchased merchandise inventory on account from Sofia Apparel. Total cost was P 24,500, Terms: FOB Destination, 3/10, net45. The purchase is recorded net of discount. Goods ordered last November 3 arrived at the Smash It warehouse. Full payment to Sofia Apparel was made. Sold merchandise to Dan Balls and equipment worth P5,000 were sold for P 12,300. Cash was received upon payment. 14 17 Sold inventory costing P 10,000 to See Corporation on account. Mark-up on the inventory amounted to 75% of the cost of inventory sold. 18 25% of the merchandise sold last November 17 were defective. These were returned. Credit memo was issued by smash It. 23 Received full payment in settlement of obligation incurred by See Corporation last November 17. Requirements:1. Journalize the transactions in the general journal. Use perpetual inventory system 2. Prepare general ledger 3. Prepare a Trial Balance as of November 30, 2016.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Smash It the leading sports store in the region. It was built and operated by Mateo Tan its
sole proprietor. At the beginning of the month of November, the general ledger of Smash It
contained the following balances; Cash - P25,000, Inventory- P25,000, A/R- P 15,000, and
Mateo, Capital- P65,000, Transactions that occurred during November are as follows:
Nov 3
Purchased merchandise inventory on account from Sofia Apparel. Total cost was
P 24,500., Terms: FOB Destination, 3/10, net45. The purchase is recorded net
of discount.
Goods ordered last November 3 arrived at the Smash It warehouse.
Full payment to Sofia Apparel was made.
14
Sold merchandise to Dan Balls and equipment worth P5,000 were sold for P
12,300. Cash was received upon payment.
17
Sold inventory costing P 10,000 to See Corporation on account. Mark-up on the
inventory amounted to 75% of the cost of inventory sold.
18
25% of the merchandise sold last November 17 were defective. These were
returned. Credit memo was issued by smash It.
Received full payment in settlement of obligation incurred by See Corporation
last November 17.
23
Requirements:1. Journalize the transactions in the general journal. Use perpetual inventory
system
2. Prepare general ledger
3. Prepare a Trial Balance as of November 30, 2016.
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