В. Canto Merchandising sells facsimile, copiers and other types of office equipment. Transactions during the month of September 2016 are as follows: Sept 1 Purchased five units of copiers on account from Machina Corp at a cost of PHP8,000 per unit. Payment is due 30 days after. Borrowed from Nation Bank, PHP50,000 at 10% interest per annum due in three months. Canto issued a promissory note for this borrowing. Paid one -year insurance covering the period Sept 1, 2016 - August 31, 2017 for PHP24,000 Sept 2 Purchased 10 units of facsimile machines on cash from Tiktac Corp for a total price of PHP20,000. Sept 7 Sold three units of copiers to Jane Nay on account for a total amount PHP45,000. The terms of the sale is 2/10, n 30. Sept 10 Paid PHPS,600 for office supplies Sept 14 Collected from Jane Nay the full amount relating to September 7 sales. Sept 15 Paid PHP10,000 salaries of fice staff Sept 20 Sold on cash, two units of facsimile machines to Juan for PHP5,000 Purchesed delivery uuck wurth PHP300,000 with ari estimeled useful life u 10 years with ro residual value. Carilu paid PHP200,000ksı and balance payable 30 days after. Sept 30 1. Prepare journal entries to record the above transactions, assuming Canto uses periodic inventory system. 2. Prepare necessary adjusting entries on September 30, 2016.
В. Canto Merchandising sells facsimile, copiers and other types of office equipment. Transactions during the month of September 2016 are as follows: Sept 1 Purchased five units of copiers on account from Machina Corp at a cost of PHP8,000 per unit. Payment is due 30 days after. Borrowed from Nation Bank, PHP50,000 at 10% interest per annum due in three months. Canto issued a promissory note for this borrowing. Paid one -year insurance covering the period Sept 1, 2016 - August 31, 2017 for PHP24,000 Sept 2 Purchased 10 units of facsimile machines on cash from Tiktac Corp for a total price of PHP20,000. Sept 7 Sold three units of copiers to Jane Nay on account for a total amount PHP45,000. The terms of the sale is 2/10, n 30. Sept 10 Paid PHPS,600 for office supplies Sept 14 Collected from Jane Nay the full amount relating to September 7 sales. Sept 15 Paid PHP10,000 salaries of fice staff Sept 20 Sold on cash, two units of facsimile machines to Juan for PHP5,000 Purchesed delivery uuck wurth PHP300,000 with ari estimeled useful life u 10 years with ro residual value. Carilu paid PHP200,000ksı and balance payable 30 days after. Sept 30 1. Prepare journal entries to record the above transactions, assuming Canto uses periodic inventory system. 2. Prepare necessary adjusting entries on September 30, 2016.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:В.
Canto Merchandising sells facsimile, copiers and other types of office equipment. Transactions during the
month of September 2016 are as follows:
Sept 1
Purchased five units of copiers on account from Machina Corp at a cost of PHP8,000 per unit. Payment is due 30 days after.
Borrowed from Nation Bank, PHP50,000 at 10% interest per annum due in three months. Canto issued a promissory note for this
borrowing.
Paid one -year insurance covering the period Sept 1, 2016 – August 31, 2017 for PHP24,000
Sept 2
Purchased 10 units of facsimile machines on cash from Tiktac Corp for a total price of PHP20,000.
Sept 7
Sold three units of copiers to Jane Nay on account for a total amount PHP45,000. The terms of the sale is 2/10, n 30.
Sept 10
Paid PHP5,600 for office supplies
Sept 14
Collected from Jane Nay the full amount relating to September 7 sales.
Sept 15
Paid PHP10,000 salaries of office staff
Sept 20
Sold on cash, two units of facsimile machines to Juan for PHP5,000
Purchesed delivery lruck wurth PHP300,000 wilth arn estimated useful life uf 10 years with rnu residual value. Carito paid PHP200,000kastı
and balance payable 30 days after.
Sepi 30
1. Prepare journal entries to record the above transactions, assuming Canto uses periodic inventory system.
2. Prepare necessary adjusting entries on September 30, 2016.
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