Reference no: EM133016890
Question - 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
Sept 30 Purchased delivery truck worth PHP300,000 with an estimated useful life of 10 years with no residual value. Canto paid PHP200,000 cash and balance payable 30 days after.
Required -
1. Make journal entries to record the above transactions, assuming Canto uses periodic inventory system and perpetual inventory system.
2. Post the journal entries to the ledger using under periodic and perpetual inventory system.
3. Make the trial balance- Periodic Inventory System
4. Make necessary adjusting entries under periodic inventory system
5. Make the statement of cost of goods sold
6. Make the income statement using multi step approach.
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