Documente Academic
Documente Profesional
Documente Cultură
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2 MERCHANDISE INVENTORY 103 35 000
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PURCHASES 501 35 000
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3 SUPPLIES 104 700
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4 ACCOUNTS RECEIVABLE 201 25,200
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4 ACCOUNTS RECEIVABLE 102 25,200
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5 FREIGHT OUT 200
CASH 200
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6 ACCOUNTS PAYABLE – RFC SUPPLY CO. 201 300
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6 ACCOUNTS PAYABLE – RFC SUPPLY CO. 201 200
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11 ACCOUNTS PAYABLE – RFC SUPPLY CO. 201 34,700
Paid RFC
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11 ACCOUNTS PAYABLE – RFC SUPPLY CO. 201 34,700
Paid RFC
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13 CASH 101 24,696
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14 MERCHANDISE INVENTORY 103 24,500
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15 SALARIES EXPENSE 601 5,500
Paid salaries
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16 CASH 101 150,000
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17 CASH 101 2,500
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HANDOUT FOR REVIEW FOR BOOKKEEPING NCIII
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18 MERCHANDISE INVENTORY 103 54,200
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20 MERCHANDISE INVENTORY 103 700
Paid freight in
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20 FREIGHT IN 504 700
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23 CASH 101 36,400
Cash sales
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23 CASH 101 36,400
Cash sales
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26 MERCHANDISE INVENTORY 103 24,500
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HANDOUT FOR REVIEW FOR BOOKKEEPING NCIII
Partial payment
Owner’s drawing
CASH 6,400
Rent Expense
Date Items ref Balance
2016 Debit Credit Debit Credit
June 30 j-2 3,500 3,500
30 Closing Entries j-4 3,500 0
Salaries Expense
Date Items ref Balance
2016 Debit Credit Debit Credit
June 15 j-2 5,500 5,500
30 j-2 1,500 7000
30 Closing Entries j-4 7000 0
Utilities Expense
Date Items ref Balance
2016 Debit Credit Debit Credit
June 30 j-2 400 400
30 Closing Entries j-4 400 0
HANDOUT FOR REVIEW FOR BOOKKEEPING NCIII
HOLLYWOOD TRADING
PRELIMINARY TRIAL BALANCE
JUNE 30, 2016
ACCOUNT # ACCOUNT TITLES DEBIT CREDIT
101 Cash 124,390
102 Accounts Receivables 13,700
103 Merchandise Inventory 69,506
104 Supplies 700
111 Equipment 100,000
201 Accounts Payable 45,200
202 Notes Payable 150,000
301 Reyes, Capital 150,000
302 Reyes, Drawings 35,000
401 Sales 75,300
402 Sales Returns and Allowances 900
403 Sales Discount 504
501 Cost of Goods Sold 63,700
601 Advertising Expense 1,000
602 Freight-Out 200
603 Rent Expense 3,500
604 Salaries Expense 700
605 Utilities Expense 400
TOTALS P 420,500 P 420,500
HOLLYWOOD TRADING
STATEMENT OF FINANCIAL PERFROMANCE
FOR THE PERIOD ENDED: JUNE 30, 2016
Sales 75,300
Less: Sales Returns & Allowances 900
Sales Discount 504 1404
Net Sales 73,896
Less: Cost of Goods Sold 65,700
Gross Profit 10,196
Less: Operating Expense
Advertising Expense 1,000
Freight-Out 200
Rent Expense 3,500
Salaries Expense 7,000
Utilities Expense 400 12,100
Net Loss P 1,904
HOLLYWOOD TRADING
STATEMENT OF CHANGES IN OWNER’S EQUITY
FOR THE PERIOD ENDED, JUNE 30,2016
R. Reyes, Capital, June 1 P 0
Initial investment 150,000
R. Reyes, Drawings (35,000)
Net Loss (1,904)
R. Reyes, Capital, June 30 P 113,096
HANDOUT FOR REVIEW FOR BOOKKEEPING NCIII
HOLLYWOOD TRADING
STATEMENT OF FINANCIAL POSITION
FOR THE PERIOD ENDED, JUNE 30,2016
ASSETS
Current Assets
Cash P 124,390
Accounts Receivable 13,700
Merchandise Inventory 69,506
Prepaid Supplies 700
Total Current Assets P 208,296
Non-Current Assets
Equipment 100,000
TOTAL ASSETS P 308,296
LIABILITIES
Current Liabilities
Accounts Payable P 45,200
Non-Current Liabilities
Notes Payable 150,000
TOTAL LIABILITIES P 195,200
OWNER’S EQUITY
R. Reyes, Capital 113,096
TOTAL LIABILITIES & OWNER’S EQUITY P 308,296
HOLLYWOOD TRADING
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED, JUNE 30,2016
CASH FLOW FROM OPERATING ACTIVITIES
Cash Received From
Sales P 36,400
Receivables Collection 24,696
Refund from Purchases 2,500
P 63,596
Payment for
Office Supplies (700)
Freight on Sold Goods (200)
Goods Bought (89,806)
Operating Expense (11,900)
Refund to Customers (900)
Freight on Purchases (700)
Net Cash Flow from Operating Activities P ( 40,610)
CLOSING ENTRIES
Date Items ref Debit Credit
2016
JUNE 30 Sales 401 75,300
Income Summary 303 73,896
Sales Returns & Allowances 402 900
Sales Discount 403 504
HOLLYWOOD TRADING
POST-CLOSING TRIAL BALANCE
JUNE 30, 2016
DEBIT CREDIT
CASH P 124,390
ACCOUNTS RECEIVABLE 13,700
MERCHANDISE INVENTORY 69,506
SUPPLIES 700
EQUIPMENT 100,000
ACCOUNTS PAYABLE P 45,200
NOTES PAYABLE 150,000
R. REYES, CAPITAL _ 113,096 _
TOTAL P 308,296 P 308,296
PROBLEM 2
1.UCPB, a bank lent P200,000 to a customer on July 1 that required the customer to pay an annual
percentage rate (APR) of 10% on the amount of the loan. The loan is due in six months and no payment
of interest or principal is to be made until the note is due on December 31. UCPB prepares monthly
financial statements at the end of each calendar month. Provide an answer for August only.
2. On December 1, Y Insurance Co. received P2,400 from your company for the annual insurance
premium covering the twelve-month period beginning on December 1. Y Insurance Co. recorded the
P2,400 receipt as of December 1 with a debit to the current asset Cash and a credit to the current liability
Unearned Revenues. Y Insurance Co. prepares monthly financial statements at the end of each calendar
month. Provide an answer for April only.
month. At the end of the day on January 31, Y company estimated that P3,400 of the supplies were still
on hand in the supply room. The following questions pertain to the adjusting entry that should be entered
by Y company.
Requirement: Answer the questions pertaining to the adjusting entries for each of the cases. Use the
answer sheet provided for Case 2 Set 2.
Purchases
Date Items ref Balance
2016 Debit Credit Debit Credit
June 2 J1 35,000 35,000
14 J1 24,500 59,500
18 J2 54,200 113,700
26 J2 22,300 136,000
30 Closing Entries J3 136,000 0
Purchases Discounts
Date Items ref Balance
2016 Debit Credit Debit Credit
June 11 J1 694 694
30 Closing Entries J3 694 0
Salaries Expense
Date Items ref Balance
2016 Debit Credit Debit Credit
June 15 J2 5,500 5,500
30 J2 1,500 7,000
30 Closing Entries J3 7,000 0
Advertising Expense Acc # 601
Date Items ref Balance
2016 Debit Credit Debit Credit
June 30 j-2 1000 1,000
30 Closing Entries j-4 1000 0
Rent Expense
Date Items ref Balance
2016 Debit Credit Debit Credit
June 30 j-2 3,500 3,500
30 Closing Entries j-4 3,500 0
Utilities Expense
Date Items ref Balance
2016 Debit Credit Debit Credit
June 30 j-2 400 400
30 Closing Entries j-4 400 0
HOLLYWOOD TRADING
PRELIMINARY TRIAL BALANCE
JUNE 30, 2016
101 Cash 124,390
102 Accounts Receivable 13,700
103 Merchandise Inventory 30,000
104 Supplies 700
111 Equipment 10,000
201 Accounts Payable 45,200
202 Notes Payable 150,000
301 Reyes, Capital 93,390
302 Reyes, Drawings 35,000
401 Sales 75,300
402 Sales Returns & Allowances 900
403 Sales Discount 504
501 Purchases 136,000
502 Purchases Returns & Allowances 2,800
503 Purchase Discounts 694
504 Freight-In 700
601 Advertising Expense 1,000
602 Freight-Out 200
603 Rent Expense 3,500
604 Salaries Expense 7,000
605 Utilities Expense 400
TOTALS P 423,994 P 423,994
HANDOUT FOR REVIEW FOR BOOKKEEPING NCIII
HOLLYWOOD TRADING
COST OF GOODS SOLD
FOR THE PERIOD ENDED, JUNE 30, 2016
Purchases P 136,000
Less: Purchases Returns and Allowances (2,800)
Purchases Discounts (694)
Add: Freight-In 700
Net Cost of Purchases 133,206
Less: Merchandise Inventory, June 30 30,000
Cost of Goods Sold P 103,206
HOLLYWOOD TRADING
STATEMENT OF FINANCIAL PERFROMANCE
FOR THE PERIOD ENDED: JUNE 30, 2016
Sales 75,300
Less: Sales Returns & Allowances 900
Sales Discount 504 1404
Net Sales 73,896
Less: Cost of Goods Sold 103,206
Gross Profit (29,310)
Less: Operating Expense
Advertising Expense 1,000
Freight-Out 200
Rent Expense 3,500
Salaries Expense 7,000
Utilities Expense 400 (12,100)
Net Loss P 41,410
HOLLYWOOD TRADING
STATEMENT OF CHANGES IN OWNER’S EQUITY
FOR THE PERIOD ENDED, JUNE 30, 2016
Reyes, Capital, June 1 150,000
Less: Net Loss 41,410
Reyes, Drawings 35,000 76,410
Reyes, Capital, June 30 P 73,590
HOLLYWOOD TRADING
STATEMENT OF FINANCIAL POSITION
JUNE 30, 2016
ASSETS
Current Assets
Cash 124,390
Account Receivable 13,700
Merchandise Inventory 30,000
Supplies 700
Total Current Assets P 168,790
Non-Current Assets
Equipment 100,000
TOTAL ASSETS P 268,790
LIABILITIES
Current Liabilities
Accounts Payable 45,200
Non-Current Liabilities
HANDOUT FOR REVIEW FOR BOOKKEEPING NCIII
HOLLYWOOD TRADING
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED, JUNE 30,2016
CASH FLOW FROM OPERATING ACTIVITIES
Cash Received From
Sales P 36,400
Receivables Collection 24,696
Refund from Purchases 2,500
P 63,596
Payment for
Office Supplies (700)
Freight on Sold Goods (200)
Goods Bought (89,806)
Operating Expense (11,900)
Refund to Customers (900)
Freight on Purchases (700)
Net Cash Flow from Operating Activities P ( 40,610)
CLOSING ENTRIES
Date Items ref Debit Credit
2016
JUNE 30 Sales 401 75,300
Income Summary 303 73,896
Sales Returns & Allowances 402 900
Sales Discount 403 504
HOLLYWOOD TRADING
POST-CLOSING TRIAL BALANCE
JUNE 30, 2016
DEBIT CREDIT
CASH P 124,390
ACCOUNTS RECEIVABLE 13,700
MERCHANDISE INVENTORY 30,000
SUPPLIES 700
EQUIPMENT 100,000
ACCOUNTS PAYABLE P 45,200
NOTES PAYABLE 150,000
R. REYES, CAPITAL _ 73,590 _
TOTAL P 268,790 P 268,790
PROBLEM 2
1.X company borrowed P200,000 by signing a six-month note that specifies interest at an annual
percentage rate (APR) of 10%. No interest or principal payment is due until the note matures on December
31. X Company prepares financial statements at the end of each calendar month. Provide an answer for
the end of August only.
2. On December 1, X paid its insurance agent P 2,400 for the annual insurance premium covering
the twelve-month period beginning on December 1. The P2,400 payment was recorded on December 1
with a debit to the current asset Prepaid insurance and a credit to the current asset Cash. X company
prepares monthly financial statements at the end of each calendar month. Provide an answer for the
month end of February only.
Requirement: Answer the questions pertaining to the adjusting entries for each of the cases. Use the
answer sheet provided for Case 1 Set 1.