Reference no: EM133178423

Question 1 - The following data was taken from the ledger account balances and supplementary data for the XYZ Company.

Merchandise inventory, beginning	Php 20,000
Merchandise inventory, ending	23,000
Purchases	215,000
Purchase discount	6,000
Purchases returns and allowances	3,000
Sales	400,000
Sales discounts	3,200
Sales returns and allowances	1,800
Freight-in	10,000

Required -

A. Computation, in proper format, of net sales.

B. Computation, in proper format, of cost of goods.

C. Computation, in proper format, of gross profit for the year ended December 31, 2016.

Question 2 - Listed below are some of the accounts relating to the income of the Leather Plus (owned by Abner Bravo) for the three month period March 31, 2016.

Sales	500,000	Merchandise Inventory, beginning	170,100
Sales Returns and Allowances	15,000	Merchandise Inventory, ending	165,000
Sales Discounts	7,800	Purchase Discounts	1,800
Purchases	302,000	Freight-in	5,000
Purchase Returns and Allowances	4,900	Rental Expense	5,000
Supplies Expense	1,200	Delivery Expense	2,100
Salaries Expense	18,000	Utilities Expense	8,000

Required -

A. Prepare a schedule of cost of goods for the three-month period ended March 31, 2016.

B. Prepare a statement of income for the period ended March 31, 2016.

C. Prepare closing entries.