Reference no: EM133189029

Question - During December, the following transaction occurred in AA Boutique:

1: AA made an initial cash investment of P 100,000.00 per official receipt no. Issued Check No. 123301 for P 28,000.00 for store equipment bought from REMAX

2: Purchased P 14,224.00 worth of merchandise on account from E. Fashions, invoice no. 15329, terms 2/10, n30 Issued check no. 123302 to PHILAM Life for P 2,400.00 insurance premium for one-year effective December 1. (Asset method should be used) Issued check no. 123303 to for cash purchases of merchandise per invoice no. 7788, amounting to P 2,408.00

3: Issued check no. 123304 to PAN AD for advertisement amounting to P800.00

Sold P 3,528.00 worth of merchandise on account to M, Santos per invoice no. 0001, terms 2/10, n30

Bought office equipment on credit from IT Computer Co. amounting to P33,600.00 per invoice no. 4133, terms n/15

4: Issued check no. 123305 to X. Realty for P 3,000.00 store rental for December

Issued check no. 123306 to City of Manila amounting to P 600.00 for payment of business permit and license to operate

5: Sold P 2,016.00 worth of merchandise on account to S. Layman per invoice no. 0002, terms 2/10, n/30

Issued check no. 123307 for P 2,352.00 for supplies purchased from CUNANAN for cash. (Asset method should be used)

6: Purchased P 20,742.40 worth of merchandise on account from P. Jeans invoice no. 20413, terms 2/10, n/30

Cash sales for the week with OR No. 002 amounting to P 5,880.00 (invoice no. 001-06)

8: Sold P 3,628.80 worth of merchandise on account to A. Gilman per invoice no. 0003, terms 2/10, n/30

Issued check no. 123308 for P 600.00 miscellaneous expenses incurred

9: Issued check no. 123309 for cash purchases of merchandise per invoice no. 2546, P 3,645.60

10: Sold P 3,696.00 worth of merchandise on account to D, Marcelo per invoice no. 0004, terms 2/10, n/30

Issued check no. 123310 to E. Fashions amounting to P 13,970.00 in full payment of invoice no. 15329 of December 2.

11: Received check for P 3,465.00 from M, Santos in full payment of invoice no. 0001 dated December 3, OR no. issued 002

12: Sold P 2,598.40 worth of merchandise on account to P, Carmel per invoice no. 0005, terms n/30

13: Cash sales for the week P 7,000.00 with OR No. 003 (invoice no. 007-12)

Issued check no. 123311 amounting to P 4,200.00 for December 1-15 salaries

15: Received check amounting to P 1,980.00 from S, Layman in full payment of invoice no. 0002 dated December 5. OR No. issued 005.

Sold P 3,920.00 worth of merchandise on account to A, Gilman per invoice no. 0006, terms n/15

16: Issued check no. 123312 for P 20,372.00 to P. Jeans in full payment of invoice no. 20413 dated December 6

Purchased P 15,114.40 worth of merchandise on account for M. Creations with invoice no. 31522, terms n/30

17: Received credit memo #421 from M. Creations for merchandise returns amounting to P 672.00 inclusive of VAT

Received check amounting to P 3,564.00 from A. Gilman in full payment of invoice no. 0003 dated December 8. Issued OR No. 006

18: Sold P 2,576.00 worth of merchandise on account to S. Layman per invoice no. 0007, terms 2/10, n/30

Issued a 12%, 30-day promissory note to IT Computer Co. to extend its account on December 3

20: Received check amounting to P 3,630.00 from D. Marcelo in full payment of invoice no. 0004 dated December 10 per OR No. 007

Issued check no. 123313 to SE. Shipping Lines for transportation costs on merchandise purchased P 900.00

21: Cash sales for the week P 7,694.40 with OR No. 008 (invoice no. 013-16)

Sold P 4,144.00 worth of merchandise on account to P. Carmel per invoice no. 0008, terms 2/10, n/30

22: Issued check no. 123314 for cash purchases of merchandise per invoice no. 6515 amounting to P 6,165.60

23: Issued credit memo no. 001 to P. Carmel for defective merchandise returned P 560.00

Sold P 1,904.00 worth of merchandise on account to D. Marcelo per invoice no. 0009, terms 2/10, n/30

24: Issued check no. 123315 for P 6,000.00 as personal expense of owner

26: Sold P 2,184.00 worth of merchandise on account to M, Santos per invoice no. 0010, terms 2/10, n/30

27: Cash sales for the week P 5,947.20 with OR No. 009 (invoice no. 017-21)

28: Purchased P 19,297.60 worth of merchandise on account from R. Designs Co. with invoice no. 33217, terms 2/10, n/30

Issued check no. 123316 for utilities expense amounting to P 750.00

29: Issued check no. 123317 for salaries covering December 16-31 amounting to P 4,200.00

30: Received a 12%, 60-day promissory note from A. Gilman to extend its account last December 15

Purchased P 15,344.00 worth of merchandise on account from E. Fashions with invoice no. 15375, terms, 2/10, n/30

31: Sold P 3,304.00 worth of merchandise on account to A. Gilman per invoice no. 0011, terms 2/10, n/30

Required -

1. Record the transactions in the Special Journals (Sales, Purchases, Cash Receipts, Cash Disbursements) and of those to General Journal.

2. Post to balances to General and Subsidiary Ledger.

3. Prepare schedule of accounts receivable and accounts payable.

4. Prepare the Trial Balance.