Question

65 Problem 1-3: Journal Entries Selected transactions of the Asser Company for the month of February are as follows a. Materials p b. Materials requisitioned: P37,000 for production and P5,600 for indirect use c. The payroll after deducting 14% withholding tax, and the employees' share of 5% d and received, P64,000. SSS contribution, 0.5% Phil. Health contribution; and Pag-ibig contribution of 0.5% to P80,000. The wages due the employees were paid d. Of the total payroll, 55% was direct labor, 18% was indirect factory labor, 17% was sales salaries and 10% was administrative salaries. e. Employer's contribution for all employee categories: Phil. Health 1% Pag-ibig P2,000 f. g. Other factory overhead consisted of h. Work completed and transferred to finished j. Cash collection for accounts receivable totaled P145,000 Required: Prepare journal entries for the above transactions. Factory overhead charged to production, P44,000 and equipment, P1,200 expired insurance, and P2,500 other unpaid bills. Sales on account totaled P168.750 with a mark-up of 35% on the cost of goods P18,000 depreciation on the factory building s amounted to P103,000.

Answer 1