Reference no: EM132599395

Question 1: Prepare a income statement

Jan 15. Invested PHP2,000,000.00 cash, printing equipment worth PHP200,000.00, a computer with built in editing software worth PHP150,000.00, and a second - hand vehicle worth PHP300,000.00 to start the business. Paid PHP5,000.00 for all the necessary business permits and PHP5,000.00 for office supplies (direct expense);

Feb 1. Purchased 2,000 shirts of various sizes from the supplier, UNIKLOW, on account. Each shirt costs PHP200.00.

Mar 15. Purchased PHP100,000.00 worth of printing supplies as direct expense to be used for operations. Paid 50% of the purchase in cash and the remaining on account.

Mar 30. Sold 1,200 shirts to customers at PHP500.00 each shirt. 400 of those shirts were sold via credit card sales. The rest were sold through cash transactions.

Apr 15. Purchased another 2,000.00 shirts of various sizes from UNIKLOW at the same cost as the previous transaction. Paid 50% of the amount in cash while the remaining is charged on account.

Apr 30. Sold 1,600 shirts to customers at PHP500.00 each shirt. 800 of those shirts were sold via credit card sales. The rest were paid by customers in cash.

May 15. Paid 35% of the pending account with UNIKLOW. Also paid salaries to the graphic artist at PHP7.00 per shirt sold and P6,000.00 to the store clerk.

Jun 1. Received 40% of the pending account of customers with YAWAS in cash.

Jun 15. Sold the remaining shirts at a discounted price of PHP450.00 per shirt.

Jun 30. Recorded 10% depreciation of each depreciable asset.