Exercise 1: The following are the transactions of Alice Trading during the month of July 2020:
1. Alice began a general merchandising business by investing P500,000 cash per OR#0001.
2. Purchased store equipment from Fely Commercial for P50,000. Term: 1/10, n/30.
3. Paid rent for the store space to Nards, P10,000. Issued Check No.2001.
4. Purchased merchandise from Rose Trading for P56,300. Term: 1/15, n/30.
5. Purchased merchandise for cash from Nora, P80,000. Issued Check No.2002.
6. Received a credit memo for P4,300 for defective merchandise returned to Rose Trading.
7. Sold merchandise to Gold for P15,000. Term: 2/10, n/30. Invoice No.01.
8. Sold merchandise to Silver for P28,000. Term: 2/10, n/30. Invoice No.02.
9. Issued a credit memo to Silver for defective merchandise returned, P5,000.
10. Paid Fely Commercial in full. Issued Check No.2003.
11. Collected the amount from Gold in full. Issued OR#0002.
12. Sold merchandise to Diamond for P50,000. Term: 2/10, n/30. Invoice No.03.
13. Paid Rose Trading in full. Issued Check No.2004.
14. Purchased merchandise from Fely Commercial for P24,000. Term: 1/10, n/30.
15. Collected the amount from Silver in full. Issued OR#0003.
16. Received a credit memo for P4,000 from Fely Commercial for the allowance due to damages in merchandise.
17. Cash sales for P100,000. Issued OR#0004.
18. Purchased merchandise from Rose Trading for P80,000. Term: 1/15, n/30.
19. Sold merchandise to Gold for P50,000. Term: 2/10, n/30. Invoice No.04.
20. Received P20,000 from Diamond as partial payment of her account. Issued OR#0005.
21. Paid the salaries of employees for the month, P30,000. Issued Check No.2005.
22. Paid utilities expense, P3,000. Issued Check No.2006.