Reference no: EM132923918

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. 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 are 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. Instructions: Prepare journal entries, T-accounts and trial balance to record the above transactions, assuming Canto uses periodic inventory system.