50.1K

Verified Solution

Link Copied!

Prepare Income statement with Notes


October 2021

1 Issued a check for P44,000 to Properties Management, Inc. for the October rent.

2 Signed a three-month radio advertising contract with Cable Station for P51,000 and issued a check to pay the full amount.

3 Received P20,678 from Erin Quinn, a credit customer, in full payment of her account amounting to P21,100. The customer paid in full within the discount period.

4 Issued a check for P76,734 to A. Fashion Statement, a creditor, as full payment of its account with a balance of P78,300. The full payment was within the discount period.

5 Sold merchandise on account to Alex Wilder for P30,000, on terms 2/10, 1/15, n/30. Trade discounts of 20% and 10% were given to Alex Wilder. Paid freight of P500.

6 Bought for cash store supplies worth P10,500 from ABC Supply.

8 Received the amount of P16,830 from Miguel Diaz, a credit customer, in payment of his account with a balance of P17,000. The customer paid in full within the discount period.

9 Received a cash refund from ABC Supply for returning defective store supplies worth P1,500.

10 Issued a credit memo to Alex Wilder amounting to P6,000 for defective merchandise returned by him.

13 Sold merchandise on account to Jane Hopper for P20,500 on terms 2/10, n/30.

14 Purchased merchandise on account from Unique Styles for P48,200 on terms 2/15, n/30. Paid freight of P1,000.

15 Sold merchandise for cash, P318,000.

16 Purchased merchandise from A. Fashion Statement for P70,000 on terms 20% down payment, balance 2/10, n/30. Paid freight of P2,000.

17 Cady Heron withdrew the following for personal use: P20,000 cash; store supplies, P2,000; and merchandise worth P10,000.

18 Received credit memo amounting to P7,000 from Unique Styles as a price reduction for merchandise delivered with wrong specifications.

19 Received P5,000 from Jane Hopper as partial payment of her account.

20 Collected the account of Alex Wilder in full.

21 Issued a check for P15,000 as partial payment of account with Unique Styles.

23 Collected the account of Jane Hopper in full.

25 Issued a check for P10,000 to A-Plus Janitors for October janitorial services.

26 Paid in full account with A. Fashion Statement.

28 Issued a check for P50,000 to Classy Trends representing partial settlement of account.

29 Paid in full account with Unique Styles.

30 Paid the salaries of the store manager and two store assistants, P48,000.

31 Sold merchandise for cash, P160,400

Answer & Explanation Solved by verified expert

See Answer