The following selected transactions were completed by Lim Supply Co., during March of the current year: Mar 03 Purchased merchandise on account from Velcro Co., list price P30,000, trade discount 20%, 2/10, n/30, FOB Destination, Freight Prepaid, P500. Mar 04 Sold merchandise for cash, P10,200. The cost of the merchandise sold was P6,000. Mar 05 Purchased merchandise on account from Summit Co., P7,500, terms 2/10, n/30, FOB Shipping Point, Freight Collect, P200. Mar 06 Returned P4,000 of merchandise purchased on Mar 3 from Velcro Co. Mar 11 Sold merchandise on account to Bowles Co., list price P2,250, trade discount 20%, terms 1/10, n/30. FOB Destination, Freight Prepaid, P250. The cost of the merchandise sold was P1,050. Mar 13 Paid Velcro Co. on account for purchase of March 03. Mar 14 Sold merchandise on account to Hardigree Co., P4,200, terms 1/10, n/30. The cost of the merchandise sold was P1,850. Mar 19 Received cash on account from sale of March 11 to Bowles Co., Mar 20 Received merchandise returned by Hardigree Co. from sale on March 14, P1,100. The cost of the returned merchandise was P600. Mar 22 Paid Summit Co., on account for purchase of March 05. Mar 27 Received cash on account from sale of March 14 to Hardigree Co., Additional Information: Requirements: 1. Journalize the transactions Inventory, Beginning is P1,000 Inventory, End is P19,250.
The following selected transactions were completed by Lim Supply Co., during March of the current year: Mar 03 Purchased merchandise on account from Velcro Co., list price P30,000, trade discount 20%, 2/10, n/30, FOB Destination, Freight Prepaid, P500. Mar 04 Sold merchandise for cash, P10,200. The cost of the merchandise sold was P6,000. Mar 05 Purchased merchandise on account from Summit Co., P7,500, terms 2/10, n/30, FOB Shipping Point, Freight Collect, P200. Mar 06 Returned P4,000 of merchandise purchased on Mar 3 from Velcro Co. Mar 11 Sold merchandise on account to Bowles Co., list price P2,250, trade discount 20%, terms 1/10, n/30. FOB Destination, Freight Prepaid, P250. The cost of the merchandise sold was P1,050. Mar 13 Paid Velcro Co. on account for purchase of March 03. Mar 14 Sold merchandise on account to Hardigree Co., P4,200, terms 1/10, n/30. The cost of the merchandise sold was P1,850. Mar 19 Received cash on account from sale of March 11 to Bowles Co., Mar 20 Received merchandise returned by Hardigree Co. from sale on March 14, P1,100. The cost of the returned merchandise was P600. Mar 22 Paid Summit Co., on account for purchase of March 05. Mar 27 Received cash on account from sale of March 14 to Hardigree Co., Additional Information: Requirements: 1. Journalize the transactions Inventory, Beginning is P1,000 Inventory, End is P19,250.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 2. C.
The following selected transactions were completed by Lim Supply Co., during March of the current
year:
Mar 03
Purchased merchandise on account from Velcro Co., list price P30,000, trade
discount 20%, 2/10, n/30, FOB Destination, Freight Prepaid, P500.
Mar 04
Sold merchandise for cash, P10,200. The cost of the merchandise sold was
P6,000.
Mar 05
Purchased merchandise on account from Summit Co., P7,500, terms 2/10, n/30,
FOB Shipping Point, Freight Collect, P200.
Mar 06
Returned P4,000 of merchandise purchased on Mar 3 from Velcro Co.
Mar 11
Sold merchandise on account to Bowles Co., list price P2,250, trade discount 20%,
terms 1/10, n/30. FOB Destination, Freight Prepaid, P250. The cost of the
merchandise sold was P1,050.
Mar 13
Paid Velcro Co. on account for purchase of March 03.
Mar 14
Sold merchandise on account to Hardigree Co., P4,200, terms 1/10, n/30.
The cost of the merchandise sold was P1,850.
Mar 19
Received cash on account from sale of March 11 to Bowles Co.,
Mar 20
Received merchandise returned by Hardigree Co. from sale on March 14, P1,100.
The cost of the returned merchandise was P600.
Mar 22
Paid Summit Co., on account for purchase of March 05.
Mar 27
Received cash on account from sale of March 14 to Hardigree Co.,
Additional Information:
Requirements:
1. Journalize the transactions
2. Prepare a Statement of Comprehensive Income.
3. Prepare Closing Entries
Using the following inventory systems:
a. Periodic Inventory System
Inventory, Beginning is P1,000
Inventory, End is P19,250.
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