Documente Academic
Documente Profesional
Documente Cultură
7
8
9
10
15
16
17
18
24
26
28
Debit
500,000
40,000
Credit
540,000
14,553
1,746
16,299
8,000
960
8,960
500
50
550
7,840
7,000
840
784
700
84
22,400
20,000
2,400
7,000
350
6,650
6,720
6,000
720
4,480
4,480
1,000
120
1,120
3,292.80
60.00
7.20
3,360
7,840
7,840
22,400
20,000
2,400
Page 1 of 35
Proposed answers
30
31
Accounts Payable
Cash on Hand
Utilities
Utilities Payable
Salaries
W/T Payable
SS Premium Payable
PH Premium Payable
Pag-ibig Premium Payable
Cash
Name: Octo
Date
Particulars
1/10,n/30
10
Returns
30
Full Payment
3,000
7,000
Debit
350
210
105
140
6,195
Credit
16,008.30
Balance
16,008.30
15,444.00
0
564.30
15,444.00
F
Debit
Credit
8,800
Balance
8,800
4,400
Credit
Balance
7,700
7,700
0
4,400
Re
f
2/10,n/30
Full Collection
Debit
7,700
15,515
3,000
Ref
Name: Villar
Date
Particulars
1/7
2/10,n/30
17
Partial payment
1/9
26
15,515
Ref
Debit
6,600
Credit
3,300
1/10
17
30
Balance
6,600
3,300
Accounts Payable
564.30 1/14
16,008.30
4,400
7
8,800.00
15,444 Balance 4,400
Trial Balance
Debit
75200
Credit
Adjustments
Income Statement
Debit
Credit
Debit
Credit
Balance Sheet
Debit
75200
Credit
Page 2 of 35
Proposed answers
Cash On Bank
Accounts Receivable
Allowance for DA
Notes Receivable
Merch. Invty., 7/1
Prep. Store Ins.
Store Furn. & Fixtures
Accum. Depn.
Office Furn. & Fix.
Accum. Depn.
Accounts Payable
Notes Payable
Unearned Commission
Withholding Tax Payable
SS & EC Payable
Philhealth Payable
Pag-ibig Payable
Alfonso, Capital
Alfonso, Personal
Sales
Sales Ret. & Allowances
Sales Discount
Purchases
Freight In
Purch. Ret. & Allow.
Purchase Discount
Advertising Expense
Salary Expense
Sales
Salary Expense
Office
Rent Expense
Utilities Expense
Taxes Expense
Interest Expense
SS & EC Expense
Philhealth Expense
Pag-ibig Expense
Interest Income
Totals
Adjustments:
Bad Debts
Interest Receivable
Insurance Expense
Depn. Store Furn. & Fix.
Depn.-Off.Furn. & Fix.
Accrued Salaries
Prepaid Advertising
Interest Payable
Commission Income
Merch. Invty. End
Income & Exp. Sum.
Taxes Payable
Totals
Net Income
TOTALS
487288
112000
4800
89500
6300
16000
15000
30000
5020
2880
242000
6000
9000
60000
4000
a)
1600
c)
3150
500
d)
2100
900
54000
180000
2400
490
522
100
200
521900
e)
3,000
h)
487288
112000
89500
15000
5020
2880
242000
6000
3000
2000
550
f)
300
8700
60550
33400
33400
96800
42400
12000
600
6424
1200
2400
96800
42400
13437
2400
6424
1200
2400
1354900
j)
g)
3150
16000
800
583200
e)
4800
1437
1800
3000
1354900
b)
a)
b)
c)
d)
e)
1600
20
3150
2100
3000
f)
300
i) 67125
81882
20
583200
550
g)
h)
1800
800
i) 67125
j) 1437
80445
3900
54000
180000
1600
490
522
100
200
521900
3020
20
3150
2100
3000
300
800
67125
622961
36184
659145
2600
3000
2000
1600
e)
30000
5600
550
1800
67125
659145
810883
659145
810883
Kenneth Toyland
Page 3 of 35
1437
774699
36184
810883
Proposed answers
Post Closing Trial Balance
June 30, 2005
Cash On Hand
Cash In Bank
Accounts Receivable
Allowance for Bad Debts
Notes Receivable
Merchandise Inventory
Prepaid Insurance
Store Furniture & Fixtures
Accumulated Depreciation - Store Furniture & Fix.
Office Furniture & Fixtures
Accumulated Depreciation Office Furniture & Fix.
Interest Receivable
Prepaid Advertising
Accounts Payable
Notes Payable
Salaries Payable
Interest Payable
Unearned Commission
W/Tax Payable
SS & EC Payable
PH Payable
Pag-ibig Payable
Alfonso, Capital
Closing Entries:
Income & Expense Summary
Purchases
Merchandise Inventory, June 1
Rent Expense
Taxes
Salary Expense - Office
Salary Expense - Sales
Depreciation Expense - Store Furniture & Fixtures
Depreciation Expense - Office Furniture & Fixtures
Freight In
Advertising Expense
Sales Returns & Allowances
Doubtful Accounts Expense
Sales Discount
Insurance Expense - Sales
Utilities Expense
Interest Expense
Debit
75,200
487,288
112,000
Credit
5,600
4,800
67,125
3,150
16,000
2,600
15,000
3,900
20
300
______
780,883
54,000
180,000
550
1,800
1,600
490
522
100
200
528,084
780,883
622,961
242,000
89,500
96,800
13,437
33,400
60,550
3,000
2,100
6,000
8,700
5,020
1,600
2,880
3,150
42,400
2,400
Page 4 of 35
Proposed answers
SS & EC
Pag-ibig
PhilHealth
Sales
Merchandise Inventory, June 30
Purchase Returns & Allowances
Purchase Discount
Interest Income
Commission Income
Income & Expense Summary
Alfonso, Capital
Income & Expense Summary
Alfonso, Capital
Alfonso, Personal
Reversing Entries:
Advertising Expense
Prepaid Advertising
Interest Payable
Interest Expense
Interest Income
Interest Receivable
Taxes Payable
Taxes Expense
6,424
2,400
1,200
583,200
67,125
3,000
2,000
3,020
800
659,145
36,184
30,000
36,184
30,000
300
300
1,800
1,800
20
20
1,437
1,437
Venture A
Total revenues
P2,000,000
Total expenses
950,000
Net Income
P1,050,000
Return on Owners Equity:
Operating Ratio:
1,050,000 / 10,500,000
10% 1,050,000 / 2,000,000 52,5%
650,000 / 5,500,000
11.82% 650,000 / 1,500,000 43.3%
b.
Cash from Customers
Disbursements for expenses
Cash inflow
Venture A
P1,750,000
800,000
P 950,000
Venture B
P1,500,000
850,000
P 650,000
Venture B
P500,000
200,000
P300,000
Proposed answers
Date
May 25
June 4
28
Explanation
SI
SI
Full coll. Of May 31 bal.
Debit
2,500
Debit
3,750
2,240
Debit
1,450
6,160
Debit
2,550
Debit
14,300
Debit
492.80
Debit
1,540
Credit
1,450
Credit
2,500
Credit
3,750
Credit
1,500
Credit
14,300
Balance
1,450
7,610
6,160
Balance
2,500
0
Balance
3,750
0
2,240
Balance
2,550
1,050
Balance
14,300
0
Credit
2,450
2,464
Balance
2,450
4,914
4,421.20
Credit
2,400
3,080
Balance
2,400
5,480
3,940
Proposed answers
Terms: 2/15, n/30
Date
May 31
June 15
Explanation
PI
Full payment
Debit
2,500
Credit
2,500
Balance
2,500
-
JOURNAL ENTRIES:
DATE
June 1
4
5
7
8
9
10
12
14
15
18
PARTICULARS
Purchases
Input Tax
Cash On Hand
Accounts Payable
Purchases
Input Tax
Cash On Hand
Advances to Employees
Cash On Hand
Accounts Receivable
Sales
Output Tax
Gas & Oil
Input tax
Cash On Hand
Notes Receivable
Sales
Output Tax
Cash In Bank
Accounts Receivable
Cash In Bank
Accounts Receivable
Cash In Bank
Sales
Output Tax
Repairs and Maintenance
Cash On Hand
Sales Returns & Allowances
Output Tax
Notes Receivable
Accounts Payable
Cash On Hand
Purchases
Input Tax
Accounts Payable
Cash On Hand
DEBIT
2,200
264
CREDIT
492.80
1,971.20
2,850
342
3,192
150
150
6,160
5,500
660
300
36
336
15,680
14,000
1,680
3,750
3,750
1,500
1,500
14,000
12,500
1,500
500
500
300
36
336
2,500
2,500
2,750
330
1,540
1,540
Page 7 of 35
Proposed answers
20
21
23
25
28
30
Purchases
Input Tax
Cash On Hand
Notes Receivable
Accounts Receivable
Cash In Bank
Notes Receivable
Interest Income
Accounts Receivable
Sales
Output Tax
Cash In Bank
Accounts Receivable
Notes Payable
Interest Expense
Cash In Bank
Rent Expense
Utilities Expense
Cash On Hand
Cash In Bank
Sales
Output Tax
Salaries Expense
Withholding Taxes Payable
SSS& PH: Premiums Payable
Pag-ibig Payable
Advances to Employees
Cash on Hand
Output Tax
Input Tax
VAT Payable
4,000
480
4,480
2,500
2,500
15,459.08
15,344
115.08
2,240
2,000
240
1,450
1,450
150,000
3,375
153,375
3,000
850
3,850
13,440
12,000
1,440
5,000
300
200
100
150
4,250
21,284
7,952
13,332
TRIAL BALANCE
AB Meat Mart
Trial Balance
As of June 30, 2007
Cash On Hand
Cash In Bank
Accounts Receivable
Notes Receivable
Merchandise Inventory
Prepaid Supplies
Furniture & Equipment
Delivery Jeep
P 53,709.20
50,958.08
9,450.00
2,500.00
173,800.00
1,500.00
17,655.00
215,200.00
Page 8 of 35
Proposed answers
Accounts Payable
Withholding Taxes Payable
SSS, PH Payable
HDMF Payable
A. Barzaga, Capital
A. Barzaga, Drawing
Sales
Sales Discount
Sales returns & Allowances
Purchases
Freight In
Purchase Discount
Purchase Returns & Allowances
Utility Expense
Gas & Oil
Salary Expense
Repairs and Maintenance
Taxes & Licenses
Rent Expense
Commission Expense
SS & PH Premium Expense
HDMF Premium Expense
Interest Income
Interest Expense
VAT Payable
Totals
P 8,361.20
3,290.00
2,900.00
1,297.00
471,148.00
20,000.00
304,650.00
3,500.00
2,800.00
76,010.00
1,105.00
1,550.00
3,000.00
2,660.00
300.00
64,850.00
4,255.00
3,000.00
78,000.00
14,500.00
8,516
2,000
115.08
3,375.00
_________
P809,643.28
13,221.00
P809,643.28
INCOME STATEMENT
AB Meat Mart
Income Statement
For six months ended June 30, 2007
Net Sales (note 1)
Cost of Sales (note 2)
Gross Income
Less Operating Expenses:
Selling Expenses (note 3)
General Expenses (note 4)
Operating Loss
Interest Income
Interest Expense
Net Loss
P298,350.00
185,500.00
P112,850.00
P123,072.32
55,008.68
(
115.08
3,375.00)
178,081.00
65,231.00
3,259.92
P68,490.92
Page 9 of 35
Proposed answers
Note 1: Sales
Less: Sales Returns & Allowances
Sales Discount
Net Sales
Note 2: Cost of Goods Sold
Merchandise Inventory Beginning
Add: Net Purchases
Purchases
Add Freight In
Totals
Less: Purchase Discount
Purch. Ret. & Allow.
Total Goods Available for Sale
Less Merchandise Inventory End
Note 3: Selling Expenses:
Rent
Commission Expense
Salaries
Utilities
Gas & Oil
Repairs and Maintenance
SS & PH
HDMF
Total
Note 4: Rent
Note 4: Utilities
Salaries
Taxes & Licenses
SS & PH
HDMF
304,650.00
2,800
3,500
6,300.00
298,350.00
173,800
76,010
1,105
77,115
1,550
3,000
4,550
72,565
246,365
60,865
P185,500
P52,000.00
14,500.00
43,233.33
1,773.33
300.00
4,255.00
5,677.33
1,333.33
P123,072.32
P26,000.00
886.67
21,616.67
3,000.00
2,838.67
666.67
P55,008.68
CAPITAL STATEMENT:
AB Meat Mart
Capital Statement
For six months ended June 30, 2007
Barzaga Capital Jan. 1
Less: Drawings
Net Loss
Barzaga Capital June 30
471
(20,0
(68,490
P 382,65
BALANCE SHEET:
Page 10 of 35
Proposed answers
AB Meat Mart
Balance Sheet
As of June 30, 2007
Assets
Current Assets:
Cash (note 1)
Trade & Other Receivables
Merchandise Inventory
Prepaid Supplies
Fixed Assets (note 3)
Total
P104,667..28
11,950.00
60,685.00
1,500.00
178,982.28
232,855.00
P411,837.28
P 29,180.20
382,657.08
P411,837.28
P 17,655
215,200
P232,855
P 8,361.20
13,332.00
3,290.00
2,900.00
1,297.00
P27,883..20
P6,160
2,240
1,050
P9,450
P4,421.20
3,940.00
P8,361.20
Debit
Credit
Closing Entries:
Sales
Sales Returns
403,320
4,050
Page 11 of 35
Proposed answers
Income & Expense S
399,270
344,840.83
50,400.00
Purch Returns
3,420.00
Purchases
190,600.00
Delivery Expense
6,250.00
Rent Expense
70,020.00
Salaries
63,000.00
Office Expense
3,240.00
Bad Debts
967.50
Depreciation
2,033.33
Supplies
1,050.00
Interest Expense
10,500.00
51,000.00
54,429.17
Javier, Capital
54,429.17
Javier Capital
14,400
Javier Drawings
Account Titles
Cash
Accts Receivable
Allowance for Bad Debts
Mdse Invty Jan 1
Supplies
Office Furn & Fix
Accum Depn
Accts Payable
Loans Payable
Javier Capital
Javier Drawing
Sales
Sales Returns
Purchases
Purch Returns
Delivery Expense
Rent Expense
Salaries
Office Expense
Totals
Bad Debts
Depreciation
Supplies Expense
14,400
Trial Balance
Debit
Credit
313,490
Adjustments
Debit
Credit
35,350
Adjusted
Trial Balance
Debit
Credit
313,490
35,350
800
a) 967.50
51,000
2,650
37,000
c) 1,050.00
4,300
D
31
3
1,767.50
51,000
1,600
37,000
b) 2,033.33
51,000
3
6,333.33
15,710
200,000
163,500
15,710
200,000
163,500
14,400
14,400
403,320
1
403,320
4,050
190,600
4,050
190,600
3,420
6,250
70,020
63,000
3,240
791,050
Income Statement
Debit
Credit
403,320
4,050
190,600
3,420
3,420
6,250
70,020
63,000
3,240
6,250
70,020
63,000
3,240
967.50
2,033.3
3
1,050.0
967.50
2,033.3
3
1,050.0
791,050
a) 967.50
b) 2,033.33
c) 1,050.00
Page 12 of 35
Proposed answers
Interest Expense
Interest Payable
Merchandise Invty Dec 31
d) 10,500.00
14,550.83
Net Income
0
10,500.00
d) 10,500.00
14,550.83
0
10,500.00
10,500.00
804,550.83
804,550.83
402,710.83
54,429.17
457,140
Page 13 of 35
50,400
457,140
5
45
457,140
45
Proposed answers
PROBLEM 6: Financial Statement Analysis
2007
P9,000
46,700/37,700= 1.24:1
37,000/37,700= .98:1
Working Capital
Current Ratio
Acid Test Ratio
2006
P3,630
36,300/32,670= 1.11:1
27,800/32,670= .86:1
Cr Card Receivable
Accts Receivable
Credit card collection is
more efficient
Inventories
Turnover
21,472/6,600 = 3.25 times
Collection Period
2.82 days
13.22 days
Holding Period
110.77 days
b)
c)
d)
e)
f)
g)
h)
i)
Particulars
Land
Cash
Carmelo, Capital
Debit
300,000
250,000
550,000
Resort
Cash
108,000
Cash
Mortgage Payable
300,000
Resort Improvements
Cash
285,400
Equipment
Cash
Notes Payable
Furniture & Fixtures
Cash
108,000
300,000
285,400
48,000
12,000
36,000
120,000
120,000
Linen
Cash
7,894
Supplies
Accounts Payable
4,200
Vending Purchases
Credit
7,894
4,200
540
Page 14 of 35
Proposed answers
Cash
j)
k)
l)
m)
n)
o)
540
Cash
Credit Card Receivable
Room Sales Revenue
84,303
4,437
88,740
Cash
Vending Sales Revenue
8,800
8,800
Wages
W/Tax Payable
SS Premium Payable
Pag-ibig Premium Payable
PH Premium Payable
Cash
Accounts Payable
Cash
31,200
1,560
936
624
312
27,768
3,200
3,200
Insurance Expense
Cash
4,200
4,200
Mortgage Payable
Interest Expense
Cash
15,000
2,000
17,000
b)
a)
c)
j)
k)
Cash
b) 108,000
d) 285,400
e)
12,000
f) 120,000
g)
7,894
i)
540
l)
27,768
m)
3,200
n)
4,200
o)
17,000
250,000
300,000
84,303
8,800
g
)
i)
Linen Purchases
7,894
Vending Purchases
540
h
)
Supplies
4,200
Land
a)
300,000
Land
a
)
300,0
00
b
)
108,0
00
d
)
Resort Improvements
285,4
00
e
)
Equipments
48,00
0
Resort
Page 15 of 35
Proposed answers
Accounts Payable
m 3,200 h 4,200
)
)
f
)
Notes Payable
e 36,00
)
0
n
)
o
)
Mortgage Payable
15,00 c 300,0
0
)
00
Carmelo Capital
a
)
l)
31,20
0
SS Premium Payable
l)
935
550,0
00
W/Tax Payable
l) 1,560
Pag-ibig Premium Payable
l)
624
o)
Cash
Linen Purchases
Vending Purchases
Credit Card Receivable
Supplies
Trial Balance
Debit
Credit
57,10
1
7,894
540
4,437
Furnishings
4,200
300,0
00
393,4
00
48,00
0
120,0
00
Prepaid Insurance
4,200
Land
Building
Equipment
Notes Payable
Mortgage Payable
Accounts Payable
Withholding Tax Payable
SS & EC Payable
Philhealth Payable
Pag-ibig Payable
Carmelo, Capital
312
36,00
0
285,0
00
1,000
1,560
936
624
312
550,0
Adjustments
Debit
Credit
Income
Statement
Debit
Credit
Balance Sheet
Debit
Credit
57,10
1
7,894
540
8)
533
3)
350
4,437
3,667
300,0
00
393,4
00
48,00
0
120,0
00
3,850
36,00
0
285,0
00
1,000
1,560
936
624
312
550,0
Page 16 of 35
Proposed answers
Vending Sales
Room Sales
31,20
0
Wages
Interest Expense
2,000
972,9
72
00
8,800
88,74
0
______
_
972,9
72
00
8,800
2)
4,160
4)
360
35,36
0
88,740
2,360
1)
7,220
Linen Inventory
7,220
2)
4,160
Wages Payable
4,160
3)
350
Insurance Expense
350
4)
360
Interest Payable
Depreciation Equipment
Accumulated Depreciation
Equipment
Depreciation Furniture
Accumulated Depreciation
Furniture
Depreciation Building
Accumulated Depreciation
Building
360
5)
375
375
5)
375
375
6)
1,177
1,177
6)
1,177
1,177
7)
1,464
1,464
7)
1,464
1,464
8)
533
Supplies Expense
Totals
8,419
Net Income
8,419
533
50,05
3
54,70
7
104,7
60
104,760
104,760
937,6
75
54,70
7
937,6
75
Merchandise Inventory
Cash In Bank
Cash On Hand
Lopez Capital
200,000
400,000
100,000
700,000
Purchases
Input Tax
Freight In
Accounts Payable
358,400
43,276.80
2,240
Purchases
Input Tax
Accounts Payable
38,032
4,564
Freight In
Input Tax
Cash On Hand
25,000
25,000
403,916.80
42,596
1,286
154
1,440
Page 17 of 35
Proposed answers
6
11
Accounts Receivable
Sales
Output Tax
8,960
Accounts Payable
Purchase Ret. & Allow.
Input Tax
1,800
Accounts Payable
Cash In Bank
Purchase Discount
Input Tax
8,000
960
1,584
216
403,916.80
395,888.60
7,168
860
14
Cash In Bank
Sales
Output Tax
15,680
15
Salaries
Withholding Tax Payable
Cash On Hand
14,000
16
Accounts Payable
Purchase Discount
Input Tax
Cash In Bank
40,796
17
Cash In Bank
Accounts Receivable
16,800
19
11,000
1,320
20
Accounts Receivable
Sales
Cash On Hand
Output Tax
35,056
21
Cash In Bank
Sales
Output Tax
9,520
Sales Returns
Output Tax
Accounts Receivable
4,200
504
Service Charge
Cash In Bank
1,125
Utility Expense
5,650
24
364
44
40,388
8,960
Cash In Bank
Sales
Output Tax
23
700
13,300
8,960
18
22
14,000
1,680
15,000
1,800
12,320
30,000
1,300
3,756
8,500
1,020
4,704
1,125
Page 18 of 35
Proposed answers
Cash On Hand
25
Salaries
Withholding Tax Payable
SS Premium Payable
PH Premium Payable
Pag-ibig Payable
Cash On Hand
14,000
28
Rent Expense
Cash In Bank
12,500
30
1/7
1/11
1/16
5,650
700
840
420
560
11,480
12,500
Merchandise Inventory
Income Summary
553,000
Accounts Payable
1,800.00
1/3 403,916.80
403,916.80
1/4 42,596.00
40,796.00
1/6
1/20
553,000
Accounts Receivable
8,960
1/17
35,056
1/22
8,960
4,704
Balance 30,352
Supplier's Subsidiary Ledgers:
Hong Kong
Date
Particulars
Jan. 3 2/10, n/30
11 full payment
Folks Wear
Date
Particulars
Jan. 4 2/10, 1/15, n/30
7 returns
16
paid in full
Sari
Date
1/6
17
Robinson
Date
1/20
22
Debit
Credit
403,916.8
0
Balance
403,916.
80
0
Credit
Balance
42,596
40,796
Debit
8,960
Credit
Balance
8,960
0
Debit
35,056
Credit
403,916.8
0
F
Debit
1,800
40,796
Particulars
2/10, n/30
full collection
Particulars
2/10, n/30
returns
8,960
4,704
Balance
35,056
30,352
Page 19 of 35
Proposed answers
PROBLEM 9: Completion of the Accounting Process
Credo's Auto Supply
Worksheet
For the year ended Dec. 31, 2007
Account Title
Cash On Hand
Cash In Bank
Accounts Receivable
Supplies
Merch. Invty.
Prepaid Interest
Store Equipment
Furniture & Fixtures
Accounts Payable
Loans Payable
Credo, Capital
Credo, Personal
Sales
Sales Discount
Purchases
Purchase Discounts
Salaries
Utilities Expense
Rent Expense
Supplies Expense
Dep.Exp.-Store Equip.
Trial Balance
Debit
Credit
14750
375275
64000
1900
165300
6000
115000
59000
7500
100000
444472
5
32500
897000
16800
310000
880
91600
89980
10800
0
145010
5
Adjustments
Debit
Prepaid Rent
Salaries Payable
1400
4)
1000
16800
310000
6)
450
7)
3500
_______
5)
36000
Debit
Income Statement
Credit
165300
189768
Balance Sheet
Debit
14750
375275
64000
500
189768
5000
115000
59000
Credit
75000
100000
444725
32500
897000
880
16800
310000
92050
92050
93480
93480
72000
72000
1400
1400
8250
8250
897000
880
145010
5
1)
1400
2)
8250
2)
8250
3)
11800
Acc.Depn.-Office Furn.
Interest Expense
1)
Acc.Dep-Store Equip.
DepnExp.-Office Furn.
Credit
8250
11800
3)
11800
4)
1000
5)
36000
11800
11800
1000
11800
1000
36000
6)
8250
36000
450
450
Page 20 of 35
Proposed answers
Utilities Payable
62400
450
7)
3500
62400
3500
1474105
1474105
3500
772080
315568
108764
8
1087648
891793
1087648
891793
576225
315568
891793
Page 21 of 35
Proposed answers
Credo's Auto Supply
Post Closing Trial Balance
Dec. 31, 2007
Cash On Hand
Cash In Bank
Accounts Receivable
Supplies Inventory
Merchandise Inventory
Prepaid Interest
Prepaid Rent
Store Equipment
Accumulated Depreciation - Store Equipment
Furniture & Fixtures
Accumulated Depreciation - Furniture &
Fixtures
Accounts Payable
Loans Payable
Salaries Payable
Utilities Payable
Credo, Capital
Debit
14,750
375,275
64,000
500
189,768
5,000
36,000
115,000
59,000
Credit
8,250
11,800
______
859,293
7,500
100,000
450
3,500
727,793
859,293
P880,200
284,652
595,548
(225,410)
( 53,570)
316,568
1,000
315568
897,000
16,800
880,200
Note 1:
Gross Sales
Less Sales Discount
Net Sales
Note 2:
Note 3:
Note 4:
165,300
309,120
474,420
189,768
284,652
54,000
70,110
92,050
1,000
8,250
225,410
18,000
23,370
400
Page 22 of 35
Proposed answers
Depreciation Office
11,800
53,570
P444,725
315,568
( 32,500)
727,793
Particulars
Merchandise Inventory
Cash on Hand
Lopez, Capital
Debit
50,000
200,000
250,000
Purchases
Cash on Hand
Accounts Payable
7,500
Purchases
Accounts Payable
10,000
Freight In
Cash on Hand
Cash on Hand
Accounts Receivable
Sales
4,000
5,000
Supplies
Cash on Hand
1,500
15,000
Accounts Payable
Purchase Returns & Allow
500
12
220
17
9,000
500
220
Cash on Hand
Sales Discount
Accounts Receivable
4,950
50
Office Salaries
Sales Salaries
Cash on Hand
2,500
3,500
Cash on Hand
15,000
1,500
10
15
10,000
750
Cash on Hand
Sales
13
2,500
5,000
750
Credit
5,000
6,000
14,000
Page 23 of 35
Proposed answers
Sales
18
Accounts Payable
Purchase Discount
Cash on Hand
19
Accounts Receivable
Cash on Hand
Sales
20
Accounts Payable
Cash on Hand
25
Cash on Hand
Accounts Receivable
31
Office Salaries
Sales Salaries
Store Rent
Store Utilities
Cash on Hand
Office Supplies Expense
Office Supplies
14,000
5,000
5,836.10
4,500
150
4,850
500
5,336.10
4,500
1,167.22
1,167.22
2,500
3,500
5,000
3,000
14,000
500
500
Particulars
Professional Fees Revenue
Income & Expense Summary
Debit
276,300
163,865
112,435
3)
4)
Margallo, Capital
Margallo, Drawing
2)
Reversing Entries:
Salaries Payable
Salaries
Interest Payable
Interest Expense
Supplies Expense
Credit
276,300
96,100
12,000
37,800
7,200
7,125
80
3,560
112,435
19,000
12,000
19,000
12,000
80
80
5,000
Page 24 of 35
Proposed answers
Supplies
Ac
ct.
No
.
Account
Titles
Cash
Accounts
receivable
Prepaid rent
Equipment
Trial
Balance
Supplies
Utilities
Totals
Rent
Depreciation
Adjustment
s
186
000
71
200
19
200
177
500
Accum deprn
Accounts
payable
Notes
payable
Margallo,
capital
Margallo,
drawings
Professional
fees
Salaries
5,000
a)
7200
5
500
18
000
12
000
300
000
190
00
Balance
Sheet
186
000
71
200
12
000
177
500
12
625
180
00
120
00
300
000
126
25
180
00
120
00
19
000
19
000
276
300
841
00
170
00
378
00
611
800
Income
Statement
186
000
71
200
12
000
177
500
b)
7125
276
300
C)
1200
0
2763
00
96
100
961
00
12
000
37
800
120
00
378
00
7
200
7
125
72
00
71
25
611
800
a)
7200
b)
7125
Salaries
payable
Interest
expense
Interst
payable
Bad debts
Adjusted
Trial
Balance
c)
1200
0
d)
80
12
000
80
d)80
e)
3560
3496
80
80
35
60
3
560
80
35
60
e)35
60
f)
5000
349
12
000
3
560
50
00
634
634
1638
2763
Page 25 of 35
Proposed answers
65
Net income
Totals
565
565
65
1124
35
2763
00
00
2763
00
112
435
470
700
Page 26 of 35
Proposed answers
PROBLEM 12: RECORDING & POSTING TRANSACTIONS
July 1
2
5
6
7
8
10
12
14
15
18
20
22
23
28
29
30
Merchandise
Equipment
Reyes, Capital
Accounts Payable
Cash In Bank
Cash On Hand
Reyes, Capital
Input Tax
Purchases
Accounts Payable
Freight In
Input Tax
Cash On Hand
Input Tax
Furniture & Fixtures
Notes Payable
Cash In Bank
Accounts Payable
Cash In Bank
Accounts Receivable
Cash On Hand
Sales
Output Tax
Accounts Receivable
Sales
Output Tax
Purchases
Input Tax
Cash In Bank
Cash On Hand
Purchase Returns
Input Tax
Reyes, Drawing
Cash On Hand
Notes Receivable
Accounts Receivable
Cash On Hand
Accounts Receivable
Accounts Payable
Cash In Bank
Purchases
Input Tax
Notes Payable
Cash On Hand
Accounts Receivable
Accounts Receivable
Sales
Output Tax
Cash On Hand
Cash In Bank
Sales
Output Tax
Cash On Hand
80,000
150,000
200,000
50,000
224,000
6,000
250,000
2,400
20,000
1,250
150
22,400
1,400
1,056
8,800
4,856
5,000
5,000
5,000
9,800
9,800
17,500
2,100
7,280
35,000
4,200
6,500
780
39,200
2,520
2,250
270
5,000
5,000
9,800
9,800
2,427
2,427
17,400
13,000
1,560
17,400
14,560
4,853
44,800
31,360
24,640
9,800
4,853
40,000
4,800
50,000
6,000
Page 27 of 35
Proposed answers
31
Notes Receivable
Interest Income
Input Tax
Freight Out
Cash On Hand
Salaries
W/Tax Payable
SS Payable
PH Payable
HDMF Payable
Cash On Hand
Service Charge
Cash In Bank
9,783.67
16.33
30
250
280
15,000
750
450
225
300
13,275
739.20
Debit
18,250
Credit
9,125
9,125
739.20
Balance
18,250
9,125
0
Debit
Credit
60,000
Balance
60,000
0
Name: Sherwin
Terms: 4,500 down payment, balance 2/10, 1/15, n/30
Date
Explanation
F
Debit
Credit
Balance
July 5 PI
22,000
22,000
7 Partial
5,000
17,000
22 payment
17,00
0
Full payment
Customer: A. Dimaano
Date
Explanation
July 12 n/30
22 partial
23 full collection
Customer: Universal Bank
Terms: 2/10, n/30
Date
Explanation
July 28
Debit
17,150
Debit
22,000
Credit
Balance
5,716.67
11,433.33
Credit
17,150
11,433.33
0
Balance
22,000
Page 28 of 35
Proposed answers
Page 29 of 35
Proposed answers
PROBLEM 13: COMPLETION OF THE ACCOUNTING CYCLE
a) and b)
Account Titles
Cash In Bank
Cash On Hand
Accounts Receivable
Allowance for Bad Debts
Prepaid Insurance
Leasehold Improvements
Accumulated Depn- LhI
Furniture & Fixtures
Accum. Depn. Furn. & Fix
Accounts Payable
Notes Payable
Advance from Client
SS & EC P)rem Pay
PH Prem Pay
HDMF Prem Pay
WT Payble
Jasmin, Capital
Jasmin, Personal
Parking Fees
Interest Income
Rent
Office Supplies Expense
Salaries
Utilities
Taxes
HDMF
PhilHealth
SS & EC
Salaries Payable
Office Supplies
Depn. Exp.- Leasehold Im.
Interest Expense
Interest Payable
Insurance Expense
Depn Exp-Furn & Fix
Bad Debts
Taxes Pay
Total
Net Income
Adjustments
3,000
g)
a)
4,800
504,000
42,000
5,800
3,600
d) 50,400
30,000
3,000
35,000
400,000
15,000
534
176
200
1,516
144,500
f)
c)
4,000
7,500
J)1,150.60
175.00
200.00
85,500
869,157
14,000
180,000
8,000
186,000
96,000
18,000
2,200
1,926
12,657
a)
c)
7,500
b)
1,400
4,000
i) 5,814
j) 200.00
175.00
1,150.60
a)
4,000
b)
1,400
d) 50,400
h) 14,000
h)
e)
f)
g)
1,528,083
1,528,083
14,000
3,600
4,000
5,800
97,884.6
i)5,814
97,884.60
Income Statement
Balance
200,000
23,000
176,000
8,800
1,200
504,000
92,400
30,000
7,000
35,000
400,000
7,500
1,684.6
351
400
1,516
144,500
`
85,500
876,657
14,000
180,000
6,600
190,000
96,000
23,814
2,400
2,101
13,807.6
4,000
1,400
50,400
14,000
14,000
3,600
4,000
5,800
5,814
592,522.6
298,134.4
890,657
890,657
890657
1,021,100
298134.4
1,021,100
Page 30 of 35
Proposed answers
c)
Total Assets
434,600
827,400.00
Current Liabilities:
Accounts Payable
35,000
Notes Payable
400,000
Unearned Rent
7,500
Taxes
5,814
Salaries Payable
4,000
Interest Payable
14,000
Taxes Payable
5,814
SS and EC
1,684.60
PH
351.00
HDMF
400.000
W/Tax
1,516.00
Total
Jasmin, Capital
Total Liab. & Owner's Equity
470,265.60
357,134.40
827,400.00
d)
Maria Jasmin, Realtor
Income Statement
For the year ended Dec. 31, 2008
Revenue:
Expenses:
Rent Income
Interest Income
Total
Taxes
Salaries
Utilities
Rent
Depreciation Leasehold Imp.
Depreciation - Furniture
Interest Expense
Office Supplies
Bad Debts
Insurance
HDMF
PH
SS and EC
P876,657
14,000
P890,657
23,814
190,000
96,000
180,000
50,400
4,000
14,000
6,600
5,800
3,600
2,400
2,101
13,807.60
592,522.60
P 298,134.40
Net Income
Maria Jasmin, Realtor
Capital Statement
For the year ended Dec. 31, 2008
Jasmin, Capital Jan. 1
Net Income
Jasmin, Personal
Jasmin, Capital Dec. 31
P144,500
298,134.40
( 85,500)
P357,134.40
Page 31 of 35
Proposed answers
PROBLEM 14: RECORDING & POSTING TRANSACTIONS
Sept. 5
8
10
14
15
16
17
24
25
29
30
31
Purchases
Input Tax
Accounts Payable
Freight In
Input Tax
Cash
Accounts Payable
Cash
Accounts Receivable
Sales
Output Tax
Accounts Payable
Cash
Purchase Discount
Input Tax
Freight Out
Input Tax
Cash
Sales returns & Allowances
Output Tax
Accounts Receivable
Cash
Sales Discount
Input Tax
Accounts Receivable
Furniture & Fixtures
Input Tax
Cash
Accounts Payable
Cash
Accounts Receivable
Sales
Output Tax
120,000
14,400
134,400
5,500
660
6,160
67,200
67,200
69,440
62,000
7,440
67,200
64,512
2,400
288
1,500
180
1,680
2,350
282
2,632
65,472
1,193
143
66,808
90,500
10,860
45,250
45,250
25,000
39,400
57,500
6,900
Freight Out
Input Tax
Cash
Accounts Payable
Cash
Furniture & Fixtures
Input Tax
500
60
560
45,250
44,236.40
905
108.60
F
Debit
Credit
134,400
Balance
134,400
67,200
0
Credit
45,250
Balance
45,250
0
67,200
67,200
F
Debit
45,250
Page 32 of 35
Proposed answers
Customer: Ramos
Date
5/29
Particulars
2/10, n/30
Debit
39,400
Credit
Balance
39,400
Customer: Danilo
Date
5/14
17
24
Particulars
2/10, n/30
CM
Full collection
Debit
69,440
Credit
Balance
69,440
66,808
0
2,632
66,808
May 10
15
31
Accounts Payable
67,200
5/5
67,200
25
45,250
134,400
45,250
5/14
29
Balance
Accounts Receivable
69,440
5/17
39,400
24
39,400
2,632
66,808
Page 33 of 35
Proposed answers
PROBLEM 15: COMPLETION OF THE ACCOUNTING CYCLE
Account Titles
Cash
Accounts Recble
Allow for Bad Debts
Prepaid Supplies
Library
Accum Depn-Library
Office Furn & Fix
Acum Depn Office furn & Fix
Loans Payable
Accounts Payable
Rubio, Capital
Rubio Personal
Medical Fees Earned
Salaries
Rent
Taxes
Utilities
Interest Expense
Totals
Rent Payable
Depreciation-Library
Depreciation-Furn & Fix
Unearned Medical Fees
Supplies Used
Taxes Payable
Interest Payable
Utilities Payable
Bad Debts
Totals
Net Income
Trial Balance
356,500
205,000
Adjustments
7,550
Income Statement
h) 2,700
d) 8,750
11,500
155,000
15,500
Balance
356,500
205,000
10,250
2,750
155,000
b)15,500
31,000
96,000
96,000
2,000
200,000
18,000
180,650
b) 9,200
11,200
200,000
18,000
180,650
42,000
42,000
729,000
72,000
110,000
9,.000
c) 12,500
716,500
72,000
120,000
18,220
a)10,000
e) 2,500
i) 6,720
g) 6,000
f) 6,000
75,700
20,000
81,700
26,000
a) 10,000
b)15,500
b) 9,200
10,000
15,500
9,200
c) 12,500
d) 8,750
12,500
8,750
e) 2,500
i) 6,720
f) 6,000
g) 6,000
1,152,700
1,152,700
h) 2,700
79,870
79,870
9,220
6,000
6,000
2,700
354,070
362,430
716,500
716,500
716,500
857,250
362,430
857,250
Page 34 of 35
Proposed answers
Page 35 of 35