Question

Journalize the following transactions of Zeus corporation:
1. The income summary account has a credit balance of P1,000,000.
2. The income summary account has a debit balance of P600,000.
3. Total Sales is amounting to P20,000,000 and total operating expenses is amounting to P1,000,000.
4. Total retained earnings, P5,000,000 of which 20% was appropriated for plant expansion.
5. Cash dividends paid, P500,000.
6. Overstatement of beginning inventory, P50,000.

Answer 1

Solution:

Journal entries are listed under the below table: