Math Problem Solver

Selected transactions of G. Calma Trading during the first 15 days of January 2011 were as follows:

Cash sales of merchandise P 50,000

Sales of merchandise on account 15,000

Store supplies purchased on account 2,500

Purchase of merchandise for cash 40,000

Purchase of merchandise on account 20,000

Freight paid on merchandise purchased 1,800

Purchase discounts enjoyed 3,900

Wages paid for the period 10,000

Defective merchandise returned by customer, sold on account 1,300

Returned defective merchandise purchased for cash 1,000

Transactions during the second half of the month:

Cash sales 105,000

Sales on account 27,000

Freight paid on cash sales 1,400

Purchases:

1. P 35,000, terms 2/10, n/30 (paid within discount period)

2. P 8,000, terms 10 – 10%, 5/5, n/30(paid within discount period)

3. P 9,000, terms 1/10, n/30 (paid beyond discount period)

4. P 12,000 cash purchases, FOB destination (freight, P 1,200)

Wages paid for the second half of the month 10,000

Unpaid wages at the end of month 1,800

Utilities expense for the month (unpaid) 1,800

Interest earned on deposits 1,200

Additional information:

Merchandise inventory at the beginning of the month 8,000

Merchandise inventory at the end of the month 42,000

Store supplies on hand at the end of the month 900

REQUIRED:

Prepare a multi-step income statement for the period ended January 31, 2011.