1. The Sunflower Wholesale Company began operations on August 1, 2015. The following transactions took place during the month of August. a. Owners invested P50,000 cash in the corporation in exchange for 5,000 shares of equity capital. b. Equipment was purchased for P20,000 cash. c. On the first day of August, P6,000 rent on a building was paid for the months of August and September d. Merchandise costing P38,000 was purchased on account. (The company uses the perpetual inventory system.) e. P30,000 was borrowed from a local bank, and a note payable was signed. f. Credit sales for the month were P40,000. The cost of merchandise sold was P22,000 g. P15,000 was collected on account from customers. h. P20,000 was paid on account to suppliers of merchandise. i. Salaries of 7,000 were paid to employees for August. j. A bill for P2,000 was received from local utility company for the month of August. k. P20,000 cash was loaned to another company, evidenced by a note receivable. 1. The corporation paid its shareholders a cash dividend of P1,000.

1. The Sunflower Wholesale Company began operations on August 1, 2015. The following transactions took place during the month of August. a. Owners invested P50,000 cash in the corporation in exchange for 5,000 shares of equity capital. b. Equipment was purchased for P20,000 cash. c. On the first day of August, P6,000 rent on a building was paid for the months of August and September d. Merchandise costing P38,000 was purchased on account. (The company uses the perpetual inventory system.) e. P30,000 was borrowed from a local bank, and a note payable was signed. f. Credit sales for the month were P40,000. The cost of merchandise sold was P22,000 g. P15,000 was collected on account from customers. h. P20,000 was paid on account to suppliers of merchandise. i. Salaries of 7,000 were paid to employees for August. j. A bill for P2,000 was received from local utility company for the month of August. k. P20,000 cash was loaned to another company, evidenced by a note receivable. 1. The corporation paid its shareholders a cash dividend of P1,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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