Partnership and Corporation Solman 2011 Chapter 1

CHAPTER 1
Review of the Accounting Process

E 1-1
1. a.
Unearned Rent
Rent Revenue
P270,000 x 6/18 = P90,000
90,000
90,000
No reversing entry
b.
Insurance Expense
Prepaid Insurance
P90,000 x 3/24 = P11,250
11,250
11,250
No reversing entry
2.
a.
b.
E 1-2
1. a.
b.
c.
d.
e.
Rent Revenue
Unearned Rent
P270,000 x 12/18 = P180,000
180,000
Unearned Rent
Rent Revenue
180,000
180,000
180,000
Prepaid Insurance
Insurance Expense
P90,000 x 21/24 = P78,750
78,750
Insurance Expense
Prepaid Insurance
78,750
Interest Expense
Interest Payable
P2,000,000 x 6% x 10/12 = P100,000
78,750
78,750
100,000
100,000
Prepaid Insurance
Insurance Expense
P72,000 x 30/36 = P60,000
60,000
Prepaid Rent
Rent Expense
P360,000 x 8/12 = P240,000
240,000
Uncollectible Accounts Expense

Allowance for Uncollectible Accounts
Salary Expense
Salaries Payable
P150,000 x 2/5 = P60,000
60,000
240,000
6,000
6,000
60,000
60,000
Chapter 2 Suggested Answers (APC-2011)
f.
g.
h.
i.
2.
Depreciation Expense Office Equipment

Accumulated Depreciation Office Equipment
P480,000 5 =P96,000 +
P120,000 5 x 9/12 = P18,000
Supplies on Hand
Supplies Expense
Rental Revenue
Unearned Rent
P60,000 x 4/6 P40,000
114,000
114,000
3,500
3,500
40,000
40,000
Income Summary
Merchandise Inventory
100,000
Income Summary
120,000
100,000
120,000
a, b, c, e, g & h
E 1-3
1. a.
Income Summary
Inventory, beg.
Inventory, end
Income Summary
b.
2.
page 2
Inventory, end
Purchases Returns
Cost of Goods Sold
Purchases
Freight-in
Inventory, beg.
50,000
50,000
140,000
140,000
140,000
20,000
2,000,000
2,100,000
10,000
50,000
Approach 2
a. Sales
Interest Revenue
Income Summary
5,000,000
25,000
b.
Income Summary
Cost of Goods Sold
Administrative Expense
Sales Returns
Sales Discounts
Selling Expenses
Interest Expense
2,980,000
Income Summary
Castro, Capital
2,045,000
c.
5,025,000
2,000,000
500,000
5,000
10,000
450,000
15,000
2,0450,000
d.
page 3
Castro, Capital
Castro, Drawing
500,000
500,000
E 1-4
1. Allowance for Uncollectible Accounts
2. Rent Expense
3. Office Supplies Expense
4. Salaries Payable
5. Prepaid Insurance
6. Interest Revenue
7. Interest Payable
8. Unearned Rent
9. Accumulated Depreciation
10. Income Summary
E 1-5
1.
2.
3.
4.
5.
A
A
A
A
B
6.
7.
8.
9.
10.
B or C
A
C
A
B
11.
12.
13.
14.
15.
B
A
A
A
C
16.
17.
18.
19.
20.
B
A
C
B
B
P 1-1
1.
a.
Prepaid Insurance
Insurance Expense
P72,000 x 33/36 = P66,000
66,000
Insurance Expense
Prepaid Insurance
66,000
Unearned Rent
Rent Revenue
P135,000 x 2/9
30,000
66,000
66,000
30,000
no reversing entry
c.
Supplies Expense
Supplies
P12,000 P3,000 = P9,000
9,000
9,000
no reversing entry
d.
Depreciation Expense
Accumulated Depreciation
P150,000/10 x 9/12) = P11,250
no reversing entry
11,250
11,250
e.
Uncollectible Accounts Expense

Allowance for Uncollectible Accounts
page 4
7,500
7,500
no reversing entry
f.
g.
h.
Interest Receivable
Interest Revenue
P50,000 x 12% x 30/360 = P500
500
Interest Revenue
Interest Receivable
500
500
500
Salary Expense
Salaries Payable
15,000
Salaries Payable
Salary Expense
15,000
Income Summary
15,000
15,000
120,000
120,000
P 1-2
a.
b.
c.
d.
e.
f.
Income Summary
40,000
Income Summary
50,000
40,000
50,000
Sales
Purchase Returns & Allowance
Income Summary
1,900,000
30,000
Income Summary
Sales Returns and Allowance
Purchases
Freight-in
Supplies Expense
Insurance Expense
Salary Expense
Office Expense
1,343,000
Income Summary
Olson, Capital
Olson, Capital
Olson, Drawing
1,930,000
50,000
1,000,000
40,000
6,000
9,000
180,000
8,000
50,000
597,000
597,000
60,000
60,000
page 5
P 1-3
Adjusting
Entry
a.
b.
c.
d.
e.
f.
g.
P 1-4
1. a.
b.
c.
d.
Revenue
NE
+
NE
NE
NE
+
NE
Income Statement
Expenses
Net Income
+
NE
+
+
+
+
NE
+
+
-
Commissions Receivable
Commissions Income
Rent Expense
Prepaid Rent
Office Supplies Expense
Office Supplies
Accumulated Depreciation
Statement of Financial Position

Assets
Liabilities
Capital
NE
+
+
NE
+
NE
NE
NE
NE
+
NE
+
7,200
7,200
36,000
36,000
6,600
6,600
2,400
2,400
e.
f.
g.
2.
a.
b.
c.
d.
Salaries Expense
Salaries Payable
4,800
Unearned Commissions
Commissions Income
8,000
Interest Expense
Interest Payable
1,200
4,800
8,000
1,200
Income Summary
Salaries Expense
Rent Expense
Office Supplies Expense
Interest Expense
111,000
Commissions Income
Income Summary
175,200
64,800
36,000
6,600
2,400
1,200
175,200
Income Summary
Valdez, Capital
64,200
Valdez, Capital
Valdez, Drawing
32,000
64,200
32,000
page 6
3.
Net Income = P64,200
P 1-5
1.
Insurance Expense
Prepaid Insurance
2.
3.
4.
30,000
30,000

Depreciation Expense Automobile
Accumulated Depreciation Office Equipment
Accumulated Depreciation - Automobile
75,000
260,000
75,000
260,000
Unearned Management Fees

Management Fees Earned
P120,000 x 4/6 = P80,000
80,000
Prepaid Advertising
Advertising Expense
P100,000 x 2/5 = P40,000
40,000
Multiple Choice
1.
C
2.
C
3.
C
4.
5.
6.
80,000
40,000
D
B
D
7.
8.
9.
D
B
C
10.
11.
12.
TM 1
1.
2.
3.
4.
5.
T
F
T
F
F
6.
7.
8.
9.
10.
T
F
F
T
T
11.
12.
13.
14.
15.
F
F
F
F
T
16.
17.
18.
19.
20.
F
T
F
F
T
TM 2
1.
2.
3.
4.
5.
D
D
C
B
A
6.
7.
8.
9.
10.
B
C
C
B
A
11.
12.
13.
14.
15.
B
A
D
C
C
16.
17.
18.
19.
20.
B
C
C
B
C
TM 3
1.
2.
3.
4.
5.
B
C
C
C
B
6.
7.
8.
9.
10.
D
C
C
A
C
11.
12.
13.
14.
15.
A
C
A
C
C
16.
17.
18.
19.
20.
A
D
A
C
D
TM4
1.
C
2.
C
3.
E
TM 5
1.
2.
3.
4.
O
B
H
N
4.
5.
6.
D
B
A
6.
7.
8.
9.
7.
8.
9.
F
E
A
I
A
C
D
11.
12.
13.
14.
10.
11.
12.
P
T
M
G
D
A
E
16.
17.
18.
19.
21.
22.
23.
24.
25.
13. B
14. A
15. A
T
T
T
F
T
21.
22.
23.
24.
25.
13.
14.
15.
Q
V
W
S
B
A
B
B
C
A
D
B
A
A
A
5.
10.
page 7
15.
20.

Partnership and Corporation Solman 2011 Chapter 1

Încărcat de

Informații document

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Partnership and Corporation Solman 2011 Chapter 1

Încărcat de

Drepturi de autor:

Formate disponibile

CHAPTER 1

Review of the Accounting Process

Uncollectible Accounts Expense

Chapter 2 Suggested Answers (APC-2011)

Depreciation Expense Office Equipment

Chapter 2 Suggested Answers (APC-2011)

Chapter 2 Suggested Answers (APC-2011)

Uncollectible Accounts Expense

Chapter 2 Suggested Answers (APC-2011)

Statement of Financial Position

Chapter 2 Suggested Answers (APC-2011)

Depreciation Expense Office Equipment

Unearned Management Fees

Chapter 2 Suggested Answers (APC-2011)

S-ar putea să vă placă și