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Problem 3: Makapal Merchandising Mr. Kapal started a business called Makapal Merchandising, he is hoping and praying for the business to be successful. During the month of September he wanted to see all the transactions that has transpired. The following are the transactions that have occurred during September. Prepare a balance sheet for the as of the end of September and the income statement a. He opened a bank account in the name of the entity amounting to P15,000 b. Makapal Merchandising was granted a bank loan worth P10,000 c. The business purchases merchandise inventory for P5,500. The P5,500 was paid in cash d. The entity sold merchandise costing P600 for P1,000. The P1,000 was paid in cash c. The entity purchased more merchandise for P3,000, agreeing to pay the amount within 60 days. f. Merchandise costing P1,200 was sold for P1,850 which was all received in cash g. Merchandise costing P500 was sold for P800 with the customer agreeing to pay within 90 days h. The store acquired a five-year fire insurance policy for P500 paid in cash i. Mr. Kapal received an offer to sell his business for a total of P40,000. j. Mr. Kapal withdrew P1,500 for his personal expense k. The entity bought a tract of land which will serve as a parking lot for customers. The land costs P10,000, to be paid in cash 1. Mr. Kapal took merchandise costing P100 which could have been sold for P160 to customers m. The business paid P1,000 of its Loans Payable. n. Merchandise costing P400 was sold for P600 received in cash

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