Reference no: EM132781116

You invested P600,000 to "your family name" Grains with office, store and warehouse at Leganes, Iloilo. It is engaged in buying and selling rice.

• Paid AC Construction P325,000 warehouse construction, balance of 175,000 payable in 60 days
• Purchased 30 sacks of "White Rice" at Samson Trading for P1,500/sack, on account. 
• Purchased 50 sacks of "Regular Rice" at Lambunao Rice Mill for P950 per sack for cash. 
• Cash sale to CPU Dining Hall, 5 sacks "white rice" for P1,800 per sack. 
• Purchased from Calinog Grains 30 sacks of "white rice" for P1,300 per sack and 40 sacks "regular rice" at P930 per sack, for cash. 
• Sold to Mr. Andres Boni 10 sacks of "regular rice" for P1,900 per sack, cash. 
• Sold to Business Inn 20 sacks "white rice" at P1,550 per sack, cash. Paid CLC Trucking Services delivery cost for P8,500. 
• Paid taxes and licenses P15,400 to Leganes Municipal Government. 
• Purchased 100 empty sacks from Iloilo Plastic Factory, Iloilo City for a total of P1,000, cash. 
• Paid Samson Trading P45,000. 
• Sold to Iloilo Mission Hospital 40 sacks "regular rice" at P1,920/sack, cash 
• Sold to Panay Agri Retailer, 20 sacks "white rice" at P1,500 per sacks and 15 sacks "regular rice" at P1,000 per sack, cash 
• Purchased from Jaspe Rice Mill 20 sacks "regular rice" at P1,875 per sack, on account.

Inventory at the end of the period:

White Rice .......................... 15 sacks
Regular Rice ....................... 45 sacks

Use First In, First Out method of recognizing ending inventory.

Problem 1: Prepare income statement and balance sheet