Illustration:You opened a novelty store called "The Awesome Shop" onJanuary 1, 20x1. The following were the transactions during theyear:1. ProvidedP100,000 cash as initial investment.2. Obtained a P50,000 loan.3. Acquired furniture and fixtures for P80,000 cash.4. Acquired inventory on account for P60,000. (Use perpetualinventory system)5. Sold goods on cash basis for P200,000. The cost of sales isP20,000.6. Sold goods on account for P300,000. The cost of sales isP30,000.7. Paid supplies expense for P20,000 cash.8. Paid rent expense of P180,000.9. Paid utilities expense of P40,000.10. Collected P240,000 accounts receivable.11. Paid P30,000 accounts payable.12. Made total drawings of P25,000.

The journal entries are important to record regular transactions in four column book. The t-accounts…

You opened a novelty store called "The Awesome Shop" January 1, 20x1. The following were the transactions during year: 1. Provided P100,000 cash as initial investment. 2. Obtained a P50,000 loan. 3. Acquired furniture and fixtures for P80,000 cash. 4. Acquired inventory on account for P60,000. (Use perpet inventory system) 5. Sold goods on cash basis for P200,000. The cost of sales P20,000. 6. Sold goods on account for P300,000. The cost of sales P30,000. 7. Paid supplies expense for P20,000 cash. 8. Paid rent expense of P180,000. 9. Paid utilities expense of P40,000. 10. Collected P240,000 accounts receivable. 11. Paid P30.000 accounts payvable

You opened a novelty store called "The Awesome Shop" January 1, 20x1. The following were the transactions during year: 1. Provided P100,000 cash as initial investment. 2. Obtained a P50,000 loan. 3. Acquired furniture and fixtures for P80,000 cash. 4. Acquired inventory on account for P60,000. (Use perpet inventory system) 5. Sold goods on cash basis for P200,000. The cost of sales P20,000. 6. Sold goods on account for P300,000. The cost of sales P30,000. 7. Paid supplies expense for P20,000 cash. 8. Paid rent expense of P180,000. 9. Paid utilities expense of P40,000. 10. Collected P240,000 accounts receivable. 11. Paid P30.000 accounts payvable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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