Reference no: EM132992074

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 Machine Corp at a cost of P8,000 per unit payment is due 30 days after.

Borrowed from Nation Bank, Php50,000 a 10% interest per nun 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 : PHP24.000.

Sept 2 Purchased 10 units of facsimile machines on cash from Tiktac Corp for a total price of PHP20,000.

Sept7 Sold three units of copies to Jane Nay an 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 remaining to September 7 sales.

Sept 15 Paid 10.000 salaries of staff.

Sept 20 Sold on cash, two units of facsimile machines to Juan for PHP5,000.

Sept 30 Purchased delivery truck worth P300,000 with an estimated useful life of 10 years with no residual value. Canto paid 200,000 cash and the balance payable 30 days.

Requirements -

1. Prepare the journal entries for the above transaction using the periodic and perpetual inventory system.

2. Post the journal entries to the general ledger under the periodic and perpetual inventory system.

3. Prepare the Trial Balance - periodic inventory system.

4. Prepare the necessary adjusting entries under the periodic inventory system.

5. Prepare the statement of cost of goods sold.

6. Prepare the income statement (Statement of Comprehensive Income - Multi-step approach).