Parisian Store is engaged in selling furniture on credit term of 2/10, n/30.

Prepare journal
entries for May.

5 Received furniture from Ang’s Furniture Mart P134,400. Terms: 2/10, n/30.
FOB Shipping Point, Freight Collect. Cash was paid for the freight, P6,160.
10 Paid half of the amount owing to Ang’s Furniture.
14 Sold to Danilo’s Apartelle furniture worth P69,440 in account. FOB
Destination.
15 Paid Ang’s Furniture the account that is due.
16 Paid for shipment of furniture to Danilo’s Apartelle, P1,680.
17 P2,632 worth of furniture was returned for credit by Danilo’s Apartelle.
24 Danilo’s Apartelle paid its account in full.
25 Purchased furniture from Hill Furnishings, P101,360. Terms: 50% down,
balance 2/10, n/30. FOB Shipping Point, P5,600 Freight Collect.
29 Sold furniture to Mr. Ramos of Ayala Alabang P64,400. Terms: Down
payment of P25,000, balance on account. FOB Destination, Freight Prepaid
P560..

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31 Paid Hill Furnishing the account that is due.

er as
co
eH w
The data for August are given below for Pretty Carpets. (INVENTORY END= P195,000)

o.
1 Pretty Carpets of Cebu was organized with the owner Vic Feria investing
rs e
P550,000 cash and P100,000 worth of merchandise. P300,000 was
ou urc
immediately deposited with BDO.
3 Carpets were purchased for P135,000 including freight of P2,500. Issued a
check for this.
o

10 Sold merchandise to Rustan’s of Manila, P92,000. Terms: 2/10, n/30. FOB

aC s

Shipping Point, P2,000 freight prepaid was included in the invoice.

vi y re

12 The company sold goods on account to Robinson’s Cebu, P72,000 2/EOM,

n/30.
16 P2,900 worth of goods were returned by Rustan’s for credit.
20 Salaries paid: office employees P9,500 and salesmen P26,000 less 5%
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withholding tax.
22 Collected in full the account of Rustan’s.
ar stu

24 The company returned merchandise purchased on June 3 and was given a

cash refund of P8,000.
26 Purchased goods from Bess Carpets, P105,000. Terms: 2/10, n/30, FOB
Shipping Point.
is

27 Paid freight of P3,000 on the Bess shipment.

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28 Robinson’s paid its account in full.

28 Paid Bess Carpet P55,000.
29 Cash sales, P54,000 including P14,000 on credit cards. Cash deposited with
BDO.
sh

30 Issued a check for store rent P15,000.

BDO’s bank statement showed the bank charge of 3% for the month.
31 Paid for salaries less withholding tax. Additional deductions were made for
3% SSS, 1.5% Philhealth and 2% Pag-ibig premiums.
Paid in cash for utilities, P6,000 (one-fourth is considered administrative).

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 The following information were taken from the books of Aqua-Land Sport Store which sells all kinds
of swimming gears:

Sales Returns & Allowances 4,000 Purchase Discount 6,000

Freight In 8,000 Communication Expense 45,000
Commission Expense 30,000 Sales 386,000
Purchase Returns & Allowances 7,500 Purchases 112,000
Merchandise Inventory, Dec 31 95,000 Sales Discount 25,000
Transportation Out 11,000 Rent Expense 120,000
Merchandise Inventory, Jan 1 78,500 Sales Salaries Expense 91,300
Pag-ibig Premium Expense 1,826 Taxes & Licenses 10,170
SS & EC Premium Expense 3,088 Depreciation Expense 16,500
Phil Health Premium Expense 1,200 Loss from Sale of Land 43,000
Required: Prepare an Income Statement using the multi-step form. Rent and
Communications Expenses are 25% allocated to General and Administrative Expenses.

m
er as
Rio Florendo opened a hardware store on July 1, 2015. After three years of operation the

co
accounts of Your Hardware, including the owner’s additional cash investment of P60,000 on

eH w
August 1, 2018 appears as follows:

o.
Accounts Receivable
Accounts Payable rs e P 43,750
16,950
Office Equipment
Purchases
P 48,680
364,000
ou urc
Accum. Depn. – Store Equipment 22,450 R. Florendo, Drawings 49,000
Purchase Discount 1,900 Notes Payable 45,000
Accum. Depn – Office Equipment 16,000 Purchase Returns 3,400
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R. Florendo, Capital 127,460

aC s

Cash 57,890 Sales 719,800

vi y re

Office Salaries Expense 20,000 Sales Discount 10,400

Store Utilities Expense 30,600 Sales Returns 18,030
Bad Debts 15,000 Freight Out 22,000
Interest Expense 5,400 Advertising Expense 40,000
ed d

Interest Payable 1,100 Sales Commission 40,000

ar stu

Inventory, July 1, 2018 69,350 Office Supplies Used 2,300

Inventory, June 30, 2019 81,520 Store Equipment 68,000
Sales Salaries Expense 19,000 Store Supplies Used 9,160
is

Depreciation Expense–Office Equipt. 6,500 Depreciation Expense-Store Equipt. 15,000

Th
sh

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