R and R Trading Corporation

 Purchased goods worth P800,000 on account from supplier on January 12, 2018.

 Paid rent on warehouse for P15, 000 on February 18, 2018.

 Sold worth of goods to outside parties on February 22, 2017 costing P800,000
for P1,000,000 on account.

 Paid P10, 000 for advertising on February 28, 2018

 Purchased goods worth from supplier for P400,000 cash on March 4, 2018.

 Sold worth of goods to outside parties on March 15, 2018 costing P500,000 for
P650,000 cash.

 Paid electricity bill to VECO for P7,000 on March 31, 2018

 Paid salaries for P25, 000 on April 30, 2018.

 Declared and paid dividends to its shareholders, P20,000 on December 31, 2018.
 R and R Trading Corporation Journal Entries
Date Accounts Debit Credit
Jan 12 Inventory 800,000
Accounts Payable 800,000

Feb 18 Rent Expense 15,000

Cash 15,000

Feb 22 Accounts Receivable 1,000,000

Sales 1,000,000

Cost of Goods Sold 500,000

Inventory 500,000

Feb 28 Advertising Expense 10,000

Cash 10,000

Mar 4 Inventory 400,000

Cash 400,000

Mar 15 Cash 650,000

Sales 650,000

Cost of Goods Sold 500,000

Inventory 500,000

Mar 31 Utilities Expense 7,000

Cash 7,000

Apr 30 Salaries Expense 25,000

Cash 25,000

Dec 31 Retained Earnings 20,000

Cash 20,000

R and R Trading Corporation

 Balance Sheet
December 31, 2018
Assets  
   
Cash P 15 133 000  
Accounts Receivable 1 400 000  
Inventories 250 000  
Delivery Truck 225 000  
Accumulated Depreciation- Delivery Truck (25 000)  
Equipment 297 000  
Accumulated Depreciation- Equipment (3 000)  
  P 17 277 000  
   
Liabilities  
Accounts Payable P 1 100 000  
Owner's Equity  
Common stock P 5 000 000  
Share Premium 10 000 000  
Retained Earnings 1 177 000  
Total Liabilities and Owner's Equity   P 17 277 000    

R and R Trading Corporation

Income Statement
For the Year Ended December 31, 2017
Sales P 1 650 000
Cost of Goods Sold (1 000 000)
Gross Profit 650 000
Depreciation Expense (28 000)
Salaries Expense (25 000)
Utilities Expense (7 000)
Rent Expense (15 000)
Advertising Expense (10 000)
Net Income P 565 000