ABC Bookstore Co.

2016
January
4 - The partners make the following investments
Alpha P1,000,000 Cash
Bravo P1,000,000 Cash
Charlie Land with FMV of P1,000,000 and Building with FMV of P500,000

4 Paid P50,000 to City of Iloilo for Business permits and licenses

Paid P15,000 to National bookstore for office supplies
Paid P24,000 to PNB Gen for a 2-year coverage building insurance
Paid P10,000 to Cipher for advertising materials

4 Purchased the following on account

From Concept Computers Iloilo City:
Computer set for office use (1-23-001) P40,000
Printer (1-23-002) P5,000

From Imperial Appliance Iloilo City:

Aircon (for office use)(1-23-003) - P30,000

From Carlos Trading:

Cash Register (1-24-001) - P20,000

4 Purchased inventory from Rebrex Publishing Company:

Item Number No. of Cost Total Selling
Title Author Pieces Price
Fundamentals of Accounting Aliling 5-1-001 200 300 P60,000 375
Basic Accounting 2 Palma 5-1-002 200 350 P70,000 425
Financial Accounting 1 Valix 5-1-003 200 400 P80,000 475
Financial Accounting 2 Valix 5-1-004 200 400 P80,000 475
Financial Accounting 3 Valix 5-1-005 200 400 P80,000 475
Auditing and Assurance Services Cabrera 5-1-006 200 425 P85,000 525
Income Taxation Reyes 5-1-007 200 375 P75,000 450
Cost Accounting Guerrero 5-1-008 200 400 P80,000 475

5 Sold the following books for cash:

Customer Address Title No. of Pieces
Jeanette Kim Agnas Iloilo City Auditing and Assurance Services 10
Jeanette Kim Agnas Iloilo City Income Taxation 10
Naomi Alfon Iloilo City Financial Accounting 1 5
Marr Kenneth Apostol Iloilo City Financial Accounting 2 3
Kim Bronda Iloilo City Financial Accounting 3 10

5 Sold the following books on account:

Customer Address Title No. of Pieces
Zendy Cabrera Iloilo City Fundamentals of Accounting 30
Mary Cachuela Iloilo City Basic Accounting 2 30
Maireen Cartago Iloilo City Cost Accounting 10
Keith Lorie Catalonia Iloilo City Financial Accounting 1 25
Xavrianne Ciudadano Iloilo City Financial Accounting 2 25
Ian Dela Cruz Iloilo City Advanced Accounting 10

10 Collected 50% of receivables from January 5 sales.

15 Collected from Zendy Cabrera, Mary Cachuela and Maireen Cartago the
balances on their account.
19 Paid to Rebrex 50% of the balance
30 Incurred the following expenses
Electricity - P20,000
Water - P2,000
30 Office supplies on hand 12,000
30 Make adjustments to Insurance:
Allowance for bad debts equal to 5% of Accounts Receivable
Building will be depreciated using straight-line method for a useful life of 10
years
Office equipment and Furniture and Fixtures have useful life of 3 years