Muntinlupa Co. reported the following events to its bookkeeper covering the month of April 2021: T1: Hired five employees who will be assigned to handle the delivery operations of the company. Each employee signed a P15,000 monthly salary contract. T2: The purchasing officer prepared a purchase order for inventory amounting to P85,000. The said PO had been mailed to the supplier on the same date. T3: Muntinlupa‘s chairman, Mr. Hini M. Atay, suffered heart attack and is feared that he will pass away. The expected loss for this to Muntinlupa is estimated at P10,000,000. T4: Billing for electricity for the month of April 2021 received on April 30, 2021 amounted to P13,600. T5: Delivered inventories to a customer with selling price of P350,000. The cost of goods sold is P300,000. How much is the net income earned in April 2021?

Muntinlupa Co. reported the following events to its bookkeeper covering the month of April 2021: T1: Hired five employees who will be assigned to handle the delivery operations of the company. Each employee signed a P15,000 monthly salary contract. T2: The purchasing officer prepared a purchase order for inventory amounting to P85,000. The said PO had been mailed to the supplier on the same date. T3: Muntinlupa‘s chairman, Mr. Hini M. Atay, suffered heart attack and is feared that he will pass away. The expected loss for this to Muntinlupa is estimated at P10,000,000. T4: Billing for electricity for the month of April 2021 received on April 30, 2021 amounted to P13,600. T5: Delivered inventories to a customer with selling price of P350,000. The cost of goods sold is P300,000. How much is the net income earned in April 2021?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 5EB: Review the following transactions and prepare any necessary journal entries for Lands Inc. A. On...

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