FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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XYZ Corporation is authorized to issue 150,000 ordinary shares with par of P150. On June 1 eight incorporators have subscribed to 40,000 shares (5,000 shares each), each of them paying an equal amount for a total sum of P2,000,000. Immediately, P1,500,000 was paid to a contractor for the renovation of the office and store which is expected to be done by the 16th of June. It was decided that full month's
June 2 - 2100 shares were issued for P480,000. On the same day, the firm bought P850,000-vehicle.
June 3 - P20,000 worth of supplies were purchased
June 4 - Merchandise worth P520,000 was purchased on credit from V Goods.
June 5 - The receivable on subscription from 5 of the incorporators was fully paid.
June 10 - Goods worth P270,000 were sold for 50% mark-up. The firm received 80% of the total price, the balance will be settled in 30 days.
June 12 - Several office equipment were purchased for a total sum of P1,760,000.
June 15 - P18,000 was paid for year's insurance cover.
June 16 - Three employees with a monthly rate of P12,000 each were paid their salaries. Salary is credited to employees' bank accounts a day after the 15th and end of the month.
June 18 - Sold 150,000 worth of merchandise, extending an outright 10% discount as a policy for cash sales, receiving a check for the entire amount.
June 20 - A summary of fuel receipts amounted to P2,755.
June 25 - The firm received P750,000 worth of merchandise from V.Goods, while issuing a check for the June 4 purchase. V.Goods agreed to receive payment for the second delivery 10 days after the end of the month.
June 26 - Sold P250,000 worth of goods for cash
June 30 - Received utility bills amounting to P15,000, due day is July 10.
Required:
1) Record the transactions until June 30
2) Prepare the
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