Quiz no.

1
A.
1. C 7. H 13. G 19. V
2. L 8. I 14. R 20. Z
3. X 9. A 15. T
4. E 10. O 16. N
5. Q 11. P 17. B
6. D 12. K 18. F
B. C.
1. b 4. b, c 7. b, c 1. d 4. a
2. a, b 5. a, b, c 8. a,b 2. f 5. b
3. a 6. c 3. c 6. c

Quiz no. 2
A.
1. Language 6. Equity/Net Worth 11. Solvency 16. Venetian Model
2. Partners 7. Computer 12. Managerial reports 17. liquidity
3. Investor 8. Journal 13. Computer 18. Employees
4. Profit 9. Revenues 14.Computer 19. Efficiency
5. Income Statement 10. Statement of Cash Flows 15. Internal Control 20. Statement of Financial
Position

B. C.
1. F 6. C 1. G 6. A
2. D 2. E
3. B 3. F
4. E 4. B
5. A 5. D

Quiz no. 3
A. B. C.
1. I 1. E Income Statement
2. E 2. B Revenues P12,000 Cash Inflow (25+50+12) P87,000
3. G 3. D Expenses 9,000 Cash Outflow (15+9) 24,000
4. D 4. A Net Income P 3,000 P63,000
5. K 5. C Paid Capital P25,000 Cash & Equipment (63+15) 78,000
6. B Net Income 3,000 Liabilities 50,000
7. F Paid Capital P28,000 Networth P28,000
8. H
Quiz no. 4
A. B. C. D.
1. B 1. C 1. B 1. D
2. E 2. F 2. G 2. A
3. C 3. D 3. A 3. B
4. H 4. E 4. F 4. E
5. A 5. B 5. H 5. C
6. F 6. G 6. G
7. A
Quiz no. 5
A. C. D. B.
1. Accountant 6. Regulatory Bodies 1. F 1. B 1. B
2. Ethics 7. Social Responsibility 2. G 2. D 2. C
3. Accountancy Act 8. Accounting Principles 3. C 3. A 3. A
4. PICPA 9. Ethics 4. D 4. C 4. C
10.Gen Accepted Accounting 5. E 5. C 5. A
Principle 6. B 6. B
E. 1. Is it legal? Anything that violates law or company policy is illegal.
2. Does it hurt any stakeholder? Is it a benefit accruing to the owner of the business. Remember free products, discounts,
rebates are properties of the business.
3. If you are uncomfortable because it diminishes your reputation, then accepting it for personal use is wrong.
4. What if you own the business? Will you tolerate this kind of practice? If you say no I will not tolerate this, then it is
wrong.
5. If you are comfortable telling your boss or the owner about this “gift” then it is ethical. If you prefer to hide your action
then you know its wrong and you probably should not accept it.

Quiz no. 6
A. B.
1. G 6. F 1. E 6. C
2. C 7. B 2. B 7. K
3. D 8. H 3. F 8. A
4. A 4. H 9. D
5. A 5. J
129
C.
1. Yes. Cost and Going Concern & Objectivity Principles
2. Yes, Business entity
3. No, Business Entity
4. No, Accrual Principle
5. No, Revenue Recognition
6. No, Expense Recognition & Going Concern Principles
7. No, Business Entity
8. No, Monetary Principles & Unit of Measures

Quiz no. 7
A.
a. owner invested P1,500,000 cash and P30,000 furnitures
b. bought 4 cars on account P800,000
c. purchased supplies for P5,000
d. made a partial payment of account, P300,000
e. owner withdrew one car, P200,000
f. issued a note for the balance of its account, P500,000

B.
1. A
2. C
3. A
4. A
5. C
6. C
7. B
C. SUPER BILLIARD HALL
BALANCE SHEET
DECEMBER 31, 2009

ASSETS
Cash P 100,000
Office Supplies 10,000
Office Furniture & Fixture 35,000
Billiard Equipment 1,250,000
TOTALS P1,395,000
LIABILITIES AND OWNER’S EQUITY
Accounts Payable 12,000
Salaries Payable 18,000
Basa, Capital 1,365,000
TOTALS P1,395,000

Quiz no. 8
A B
1. ASSETS 1. A
2. OWBER’S EQUITY (NET WORTH) 2. B
3. LIABILITIES 3. A/B
4. STATEMENT OF FINANCIAL POSITION 4. A
5. STOCKHOLDER’S EQUITY 5. C
6. ACCOUNT 6. D
7. TRANSACTION
8. DOUBLE ENTRY BOOKKEEPING
9. ACCOUNTING EQUATION
10. MONEY

C. ADVANCE FURNITURE NOTES ACCTS. QUITA,

CASH RENTAL CAR & FIXTURE EQUIPMENT PAYABLE PAYABLE CAPITAL
500,000 500,000
(250,000) 250,000
500,000 500,000
(250,000) 250,000
(100,000) 100,000
(50,000) (50,000)
(200,000) 400,000 200,000
(100,000) (100,000)
50,000 250,000 400,000 250,000 100,000 500,000 100,000 450,000

Assets = Liabilities = Owner’s Equity

P 1,050,000 P 600,000 P 450,000

130
Quiz no. 9
Owner’s
ASSETS Liabilities Equity
CASH SUPPLIES EQUIPT FURN & LEASEHOLD ACCOUNTS NOTES SISON,
IMPROVEME
Fix NT PAYABLE PAYABLE CAPITAL
1 100,000 500,000 600,000
5 ( 10,000) 20,000 10,000
6
7 (1,500) (1,500)
8 ( 5,000) 5,000
9
10
17 100,000 100,000
19 (50,000) 50,000
24 (75,000) 75,000
60,000 5,000 575,000 18,500 50,000 8,500 100,000 600,000

SISON’S ENT CLINIC

STATEMENT OF FINANCIAL POSITION
MAY 24, ___

ASSETS
Cash P 60,000
Supplies 5,000
Equipment 575,000
Furniture 18,500
Leasehold Improvements 50,000
TOTALS P708,500
LIABILITIES AND OWNER’S EQUITY
Accounts Payable 8,500
Notes Payable 100,000
Sison, Capital 600,000
TOTALS 708,500

Quiz no. 10

A. 1. T 2. F 3. T 4. F 5. F

B.
A S S E T S LIABILITIES OWNER’S
EQUITY
ACCTS NOTES ADVANCES ANGELO ANGELO
DATE CASH FURN & EQUIPT SUPPLIES PAYABLE PAYABL FR CLIENTS CAPITAL DRAWING
Fix . E
May 4 1,000,000 1,000,000
5 100,000 100,000
6 (5,000) 5,000
10 240,000 240,000
15 40,000 40,000
20 (14,000) 28,000 14,000
27 (7,000) (7,000)
30 50,000 50,000
31 (40,000) (40,000)

1,084,000 240,000 68,000 5,000 7,000 200,000 50,000 1,140,0000

Quiz no. 11
A. 1. B 7. D C. 1. A
2 D 8. A 2. B
3 D 9. A 3. C
4 C 10. B 4. A
5 B
6 A
B. 1. Assets P 905,000
Liabilities 175,000
Owner’s Equity P 730,000
2 Beginning P 500,000
Ending 730,000
Net Income 230,000
3 Beginning P 500,000
Drawings 10,000
Ending 490,000
Owner’s Equity 730,000
Net Income P 240,000

131
 4 Capital Jan. 1 P 500,000
Additional Investment 150,000
Drawing (10,000)
640,000
Capital Dec 31 P 730,000
Net Income P 90,000
C.
1. Revenues (250,000+125,000) P375,000
2. Expenses (125,000+75,000) 200,000
P175,000
Capital Beginning 520,000
Net Income 175,000
Drawings (25,000)
Additional Investment 150,000
3. P820,000

Collections 300,000
Expenses paid 175,000
4. Cash flow from operation P125,000
5. P225,000

Quiz no. 12
A.
1. H 6. G 11. E
2. A 7. F 12. C
3. D 8. C
4. E 9. E
5. H 10. B
B.
1. False 6. True
2. True 7. False
3. False 8. True
4. True 9. True
5. True 10. True
C.
1. Building 6. Professional/ Service Fees
2. Cash 7. Mortgage Payable
3. Inventory 8. Insurance
4. Utilities Payable 9. Accumulated Depreciation
5. Tuition Fee 10. Marketable Securities

D.
Net Owner’s
Income Cash Equity
Lovely invested P50,000 in cash and P100,000 in bicycles. 50,000 150,000
Borrowed from bank P250,000 cash. 250,000
Bought toy cars P200,000, 20% is on account. (160,000)
Rental fees billed to customers, P60,000, of which 1/6 was still
uncollected. 60,000 50,000
Total expenses amounted to P42,000 but the light bill of P8,000
was still unpaid. (42,000) ( 34,000)
Purchased supplies P2,000, of which one half was unpaid and 1/5
was still unused on May 31. ( 1,600) ( 1,000)
Wages earned by the workers P18,000, of which P3,500 was still
unpaid. (18,000) ( 14,500)
Lovely made a cash withdrawal of P5,000. ( 5,000) ( 5,000)
Paid the account due on the toy cars. _______ ( 40,000)
Net Income (1 ,600) ( 1,600)
Net cash inflow (outflow) 95,500 ______
Anonas, Capital May 31, 2009 143,400

E.
Operating Investing Financing
Activity Activity Activity
1. Lovely invested P50,000 in cash. 50,000
2. Borrowed cash from bank, P250,000 250,000
3. Bought toy cars P200,000, 20% was on account. (160,000)
4. Rental fees billed to customers, P60,000, of which
1/6 was still uncollected. 50,000
5. Total expenses amounted to P42,000 but the light
bill of P8,000 was still unpaid. (34,000)

132
 6. Purchased supplies, P2,000,1/2 is unpaid and 1/5
was on hand at the end of the quarter. ( 1,000)
7. Wages earned by the workers, P18,000 of which
P3,500 was still unpaid. (14,500)
8. Lovely made a cash withdrawal of P5,000. ( 5,000)
9. Paid the account due on the toy cars. _________ ( 40,000) ________
Net cash inflow (outflow) P 500 P(200,000) P295,000

Quiz no. 13
A. Professional Fees 350,000
Rent 90,000
Salaries 48,000
Utilities 18,000
Supplies 8,000 164,000
Net Income 186,000

Investment P 20,000
Revenue (350,000 – 50,000) 300,000
Utilities (15,000)
Supplies (15,000)
Rent (90,000)
Salaries (48,000)
Cash P 152,000

ASSETS LIABILITIES & OWNER’S EQUITY

Cash P 152,000 Utilities Payable P 3,000
Accounts Receivable 50,000 Accounts Payable 60,000
Supplies 7,000 Del Rio, Capital 266,000
Furniture 10,000
Equipment 110,000 ______
Total P 329,000 Total P 329,000

B. 1. Revenues: P300,000
2. Expenses: a) Rent 90,000
b) Salaries 48,000
c) Utilities 15,000
d) Supplies 15,000

C. A Clinic B Grocery
Owner’s Capital, Jan. 1, 2010 P 40,000 P 80,000
Add Net Income 30,000 75,000
Addt’l Investment 0 50,000
Total 70,000 205,000
Less Drawings 10,000 95,000
Owner’s Capital, Dec. 31, 2010 P 60,000 P110,000
C Spa D Salon
Owner’s Capital, Jan. 1, 2010 P440,000 P 80,000
Addt’l Investment 0 60,000
Total 440,000 140,000
Less Drawings 50,000 ( 5,000)
Net Loss 20,000 ( 50,000)
Owner’s Capital, Dec. 31, 2010 P370,000 P 85,000
Assets (85,000+100,000) P185,000

Quiz no. 14
Cash Accounts Notes Medical Medical Furniture Accounts Biola, Changes
Receivable Receivable Supplies Equipment & Fixtures Payable Capital In Capital
150,000 1,500,000 1,650,000 Investment
100,000 100,000
(125,000) 125,000
215,000 95,000 310,000 Treatment Fees
175,000 175,000 Investment
(20,000) ( 20,000) Salaries
47,500 (47,500)
95,000 30,000 125,000 Treatment Fees
(50,000) (50,000)
47,500 (47,500)
( 5,000) ( 5,000) Biloa, Drawing
100,000 50,000 150,000 Treatment Fees
(20,000) ( 5,000) Utilities
( 15,000) Rent
(20,000) ( 20,000) Salaries
( 3,500) ( 3,500) Utilities
(75,000) ( 75,000) Med Sup Used
133
 411,500 30,000 50,000 50,000 1,675,000 100,000 50,000 2,266,500
B. FOREVER YOUNG
INCOME STATEMENT
FOR THE MONTH ENDED APRIL 30, 2010

Treatment Fees Revenue P 585,000

Less Expenses:
Salaries P 40,000
Rent 15,000
Medical Supplies 75,000
Utilities 8,500 138,500
Net Income P 446,500
FOREVER YOUNG
STATEMENT OF CHANGES IN CAPITAL
FOR THE MONTH ENDED APRIL 30, 2010
Biola, Capital, April 1 P 1,650,000
Additional Investment 175,000
Net Income 446,500
Biola, Drawing ( 5,000)
Biola, Capital April 30 P 2,266,500

FOREVER YOUNG
STATEMENT OF FINANCIAL POSITION
FOR THE MONTH ENDED APRIL 30, 2010
Assets Liabilities & Owner’s Equity
Cash P 411,500 Accounts Payable P 50,000
Accounts Receivable 30,000 Biola, Capital 2,266,500
Notes Receivable 50,000
Medical Supplies 50,000
Medical Equipment 1,675,000
Furniture & Fixtures 100,000 Total ________
Totals P 2,316,500 P 2,316,500
ROE (446,500/2,266,500)=19.70% certainly more attractive than the bank’s prime rate of 5%.
FOREVER YOUNG
STATEMENT OF CASH FLOWS
FOR THE MONTH ENDED APRIL 30, 2010
Cash flow from operating activities:
Cash received from patients P 505,000
Cash paid for expenses (188,500)
Net cash inflow P 316,500
Cash flow from investing activities:
Acquisition of furniture ( 50,000)
Cash flow from financing activities:
Investment of Biola P 150,000
Biola’s drawing ( 5,000)
Net cash inflow 145,000
Cash balance, April 30 P 411,500

QUIZ 15 A.
ACCOUNT OFFICE FURN ACCOUNTS NOTES LOPEZ, CHANGES
CASH RECEIVABLE SUPPLIES & EQUIPMENT PAYABLE PAYABL CAPITAL IN CAPITAL
FIXTURES E
500,000 175,000 675,000 Investment
(40,000) 80,000 40,000
(15,000) (15,000) Advertising
(15,000) 15,000
350,000 350,000
52,550 52,550 Tax Fees
(20,000) (20,000)
150,000 150,000 Consultancy Fees
30,000 30,000 Consultancy Fees
(75,000) (75,000) Salaries
( 15,000) ( 15,000) Drawings
110,000 110,000 Audit &
Accounting Fees
(350,000) (350,000)
32,000 32,000

250,000 250,000 Consultancy Fees

15,000 (15,000)
(50,000) ` (45,000) Rent
(5,000) Utilities
(12,500) ( 12,500) Supplies
(2,000) (2,000)

134
 247,550 265,000 2,500 205,000 430,000 50,000 1,100,050
LOPEZ CONSULTANCY SERVICES
INCOME STATEMENT
FOR THE MONTH ENDED MARCH 31, 2010
Tax P 52,550
Acctg. & Auditing 110,000
Consultancy 430,000 P 592,550
Rent P 45,000
Salaries 75,000
Supplies 12,500
Advertising 15,000
Utilities 5,000 P 152,500
Net Income P 440,052
LOPEZ CONSULTANCY SERVICES
STATEMENT OF CHANGES IN CAPITAL
FOR THE MONTH ENDED MARCH 31, 2010
Lopez, Capital, March 1 P 675,000
Net Income 440,050
Drawings ( 15,000)
Lopez, Capital, March 31 P 1,100,050

LOPEZ CONSULTANCY SERVICES

STATEMENT OF CASH FLOWS
FOR THE MONTH ENDED MARCH 31, 2010
ASSETS LIABILITIES & OWNER’S EQUITY
Cash P 247,550 Accounts Payable P 50,000
Accounts Receivable 265,000 Lopez, Capital 1,100,050
Office Supplies 2,500
Furniture & Fixtures 205,000
Equipment 430,000 _______
Total P 1,150,050 Total P 1,145,050

LOPEZ CONSULTANCY SERVICES

CASH FLOW STATEMENT
FOR THE MONTH ENDED MARCH 31, 2010
Cash flow from operating activities:
Cash received from clients P 327,550
Cash paid for expenses ( 155,000) P 172,550
Cash flow from investing activities:
Acquisition of equipment ( 410,000)
Cash flow from financing activities:
Cash investment 500,000
Cash withdrawn by owner ( 15,000) 485,000
Net cash flow P 247,550

Quiz no. 16
I. 1. M 6. J 11. A 16. L
2. C 7. S 12. F 17. R
3. N 8. H 13. L 18. W
4. V 9. E 14. P 19. O
5. B 10. G 15. T 20. D
II. 1. B 6. C 11. C
2. C 7. A 12. D
3. B 8. B 13. B
4. B 9. C 14. B
5. D 10. D

Quiz no. 17
Value Effect
Affected
Account Name Increase Decrease Debit Credit
a. Notes Receivable Asset 15,000 15,000
Rent Income Owner’s Equity 15,000 15,000
b. Cash Asset 5,500 5,500
Salary Expense Owner’s Equity 5,500 5,500
c. Cash Asset 100,000 100,000
Accounts Payable Liabilities 100,000 100,000
d. Accts Receivable Asset 17,500 17,500

135
 Rental Income Owner’s Equity 17,500 17,500
e. Cash Assets 17,500 17,500
Accts Receivable Assets 17,500 17,500
f. Office Equipment Assets 35,000 35,000
Accounts Payable Liabilities 35,000 35,000

DATE ACCOUNTS & EXPLANATION F DEBIT CREDIT

4/4 Notes Receivable 15,000
Rent Income 15,000
15 Salary Expense 5,500
Cash 5,500
16 Accounts Receivable 17,500
17,500
Rent Income
28 17,500
Cash
17,500
Accounts Receivable
30 35,000
Office Equipment
35,000
Accounts Payable

Quiz no. 18
A.
1. Samson invested P50,000 cash in a business venture.
2. Bought supplies on account P3,000.
3. Bought equipment P40,000, paid P20,000 and issued a note for the balance.
4. Billed a client P60,000 for professional service rendered.
5. Paid P1,500 for the account.
6. Received P20,000 cash and P80,000 in account for professional service rendered.
7. Paid utility expenses P25,000.
8. Supplies used up P2,000.
9. Collected from the account client P30,000.

B. WILFREDO BALTAZAR, PR CONSULTANT

TRIAL BALANCE
DECEMBER 31, 2010
Cash P 49,480
Accounts receivable 20,000
Supplies on hand 2,500
Equipment 63,020
Accumulated depreciation 10,000
Furniture & fixtures 20,000
Accumulated depreciation 5,000
Accounts payable 3,000
Utilities payable 6,500
Baltazar, capital 127,000
Baltazar, drawing 12,000
Professional fees 73,000
Rent expense 8,000
Advertising 15,000
Depreciation 15,000
Salaries 10,000
Supplies used 6,000
Taxes & licenses 3,500
Totals 224,500 224,500

Quiz no. 19
CASH ACCOUNTS RECEIVABLE
4 /1 100,000 4 / 5 15,000 4/18 28,000 4/26 28,000
11 150,000 10 75,000
26 28,000 20 50,000
27 122,500 26 18,000
28 82,000
30 45,000
115,500

LEASEHOLD IMPROVEMENT FURNITURE & FIXTURE

4/10 125,000 4/1 20,000
OFFICE EQUIPMENT NOTES PAYABLE
4/1 50,000 4/20 50,000 4/10 50,000
CARPIO, CAPITAL BEACH RESORT FEES REVENUE
4/1 170,000 4/11 150,000
18 28,000

136
 27 122,500

ADVERTISING EXPENSE SALARIES EXPENSE

4/5 15,000 4/28 82,000
30 20,000

RENTAL EXPENSE UTILITIES EXPENSE

4/30 25,000 4/26 18,000

BLUE LAGOON
TRIAL BALANCE
April 30, 2010
Accounts Debit Credit
Cash P115,500
Leasehold improvements 125,000
Office equipment 50,000
Furniture & Fixtures 20,000
Carpio, Capital 170,000
Beach Resort Revenues 300,500
Advertising 35,000
Rent expense 25,000
Salaries 82,000
Utilities 18,000 ______
Totals 470,500 470,500

Quiz no. 20
GENERAL JOURNAL
DATE ACCOUNTS & EXPLANATION F DEBIT CREDIT
Jan 3 Cash P 50,000
Medical Equipment 30,000
Dantes, Capital 80,000

5 Furniture & Fixtures 15,000

Accounts Payable 15,000

10 Medical Supplies 5,000

Cash 5,000

14 Cash 6,000
Accounts Receivable 32,500
Medical Fees Revenue 38,500

15 Salaries 9,500
Cash 9,500

16 Medical Equipment 200,000

Notes Payable 200,000

17 Cash 27,500
Accounts Receivable 27,500

18 Dantes, Drawings 750

Medical Supplies 750

20 Accounts Receivable 15,000

Medical Fees Revenue 15,000

22 Accounts Payable 5,000

Cash 5,000

24 Cash 12,000
Medical Fees Revenue 12,000

25 Notes Payable 50,000

Cash 50,000

28 Cash 15,000
Accounts Receivable 15,000
Medical Fees 30,000

29 Utilities 2,000

137
 Rent 8,000
Salaries 9,500
Cash 19,500
30 Supplies Expense 3,000
Medical Supplies 3,000

Subsidiary Ledger
Patient: Miles
Date Particulars F Debit Credit Balance
Jan 14 On Account 15,000 15,000
17 Partial Collection 10,000 5,000
Patient: Francis
Date Particulars F Debit Credit Balance
Jan 14 On Account 17,500 17,500
17 Full Collection 17,500
Patient: Tan
Date Particulars F Debit Credit Balance
Jan 20 On Account 15,000 15,000
Patient: John
Date Particulars F Debit Credit Balance
Jan 28 30 Days 15,000 15,000

Supplier: Furniture Canvas

Date Particulars F Debit Credit Balance
Jan 5 On account 15,000 15,000
22 Partial 5,000 10,000

General Ledger
Accounts Receivable Acct. no. 2
Date Particulars F Debit Date Particulars F Credit
Jan 14 32,500 Jan. 17 27,500
20 15,000
28 35,000 15,000
Accounts Payable Acct. no. 11
Date Particulars F Debit Date Particulars F Credit
Jan 22 5,000 Jan 5 P10,000 15,000

Schedule of Accounts Receivable

Miles Pangilinan P 5,000
L Tan 15,000
John Cojuangco 15,000
Totals P 35,000
Quiz no. 21
I. a. Y b. Y c. Y d. Y e. Y f. Y

II. JP GOLF RANGE

TRIAL BALANCE
June 30, 2012
ACCOUNTS DEBIT CREDIT
Cash (21,500+27,000) P 48,500
Accounts Receivable (12,000-2,000) 10,000
Notes Receivable 15,000
Furniture & Fixtures (10,000-500) 9,500
Office Equipment 33,100
Office Supplies 500
Accounts Payable (25,750-13,000) 12,750
Notes Payable 50,250
Margallo, Capital (72,800+1,000) 73,800
Margallo, Personal (6,000+1,000) 7,000
Membership Fees Revenues (127,300-2,000) 125,300
Interest Income 3,000
Supplies Expense 15,000
Rent 40,000
Salaries 60,000
Utilities (25,000+1,500) 26,500 ______
Totals P265,100 P265,100

138
Quiz no. 22
I. 1. R 2. P 3. G 4. C 5. K
6. J 7. L 8. Q 9. F 10. I
11. U 12. B 13. A 14. M 15. S 16. O
II. 1.B 2. A 3. B 4. B 5. A
6. A 7. D 8. C 9. D 10. D

Quiz no. 23 ?
DAILY MACHINE WORKS
PAYROLL SHEET
FOR THE PERIOD ________________
GROSS WITHHOLDING Net
NAME EARNINGS TAX SS Philhealth HDMF Earnings Signature
Waldo Po 4,000 43.30 266.70 100.00 100.00 3,490.00
Baldo Fiero 4,500 91.01 300.00 112.50 100.00 3,896.49
Claudio Reyes 3,500 425.09 233.30 87.50 100.00 2,654.11
Nando Pura 3,500 79.08 233.30 87.50 100.00 3,000.12
Peter Garcia 3,000 52.08 200.00 75.00 100.00 2,572.92
18,500 690.56 1,233.30 462.50 500.00 15,613.64
8,000- 466.70= 7,53.33/2= (3,766.65-3,542)10% = 22.47+20.83 = 43.30
9,000- 512.50= 8,487.50/2= (4,243.75-3,542)10% = 70.18+20.83 = 91.01
7,000- 420.80= 6,579.82/2= (3,289.60-2,917)20% = 70.92+354.17 = 425.09
7,000- 420.80=6,579.82/2= (3,289.60-1,708)5% = 79.08+0 = 79.08
6,000- 375.00= 5,625.00/2= (2,812.50- 2,500)10%= 31.25+20.83=52.08

Employer’s Share:
SS EC PH HDMF
565.30 10.00 100.00 100
636.00 10.00 112.50 100
494.70 10.00 87.50 100
494.70 10.00 87.50 100
424.00 10.00 75.00 100
2614.70 50.00 462.50 500

Apr 15 Payroll 18,500

W/Tax Payable 690.56
Cash in Bank 17,809.44

Apr 30 Payroll 18,500

W/Tax Payable 690.56
SS & EC Payable 1,233.30
PH Payable 462.50
HDMF Payable 500.00
Cash in Bank 15,613.64

SS & EC Premium Expense 2,664.70

PH Premium Expense 462.50
HDMF Premium Expense 500.00
SS & EC Premium Payable 2,627.20
PH Premium Payable 462.50
HDMF Premium Payable 740.00

Quiz no. 24
A.
1. Jacquie Mendez
2. South East Asia Bank
3. November 1, 2010
4. P135,000
5. 1,635,000

A B C D
Jan. 20 30 days 60 days Sept. 1
P12.50 P66.67 July 19 9%
P5,012.50 P10,066.67 P15,250 P225

Good Service:
5/1 Cash in Bank 1,500,000
Notes Payable 1,500,000
11/1 Notes Payable 1,500,000
139
 Interest Expense 135,000
Cash in Bank 1,635,000

If Discounted:
5/1 Cash in Bank 1,365,000
Interest Expense 135,000
Notes Payable 1,500,000
11/1 Notes Payable 1,500,000
Cash In Bank 1,500,000

B.
Cebu:
Equipment 5,000
Notes Payable 5,000
Notes Payable 5,000
Interest Expense 12.50
Cash 5,012.50

Alpha:
Notes Receivable 5,000
Sales 5,000
Cash 5,012.50
Notes Receivable 5,000
Interest income 12.50

Quiz no. 25
DATE ACCOUNTS & EXPLANATION F DEBIT CREDIT
Jan. 1 Cash on Hand 75,000
Cash in Bank 850,000
Trucks 2,800,000
Notes Payable 1,000,000
Carpio, Capital 2,725,000

3 Registration Fees 2,000

Cash on Hand 2,000

Insurance Expense 5,000

Cash in Bank 5,000

4 Garage 150,000
Cash in Bank 150,000

9 Gas & oil 5,000

Cash on Hand 5,000

11 Cash in Bank 5,000

Accounts Receivable 5,000
Rental Fees Revenue 10,000

14 Cash on Hand 55,000

Rental Fees Revenue 55,000

15 Accounts Receivable 50,000

Rental Fees Revenue 50,000

Notes Payable 83,333

Interest Expense 11,667
Cash 95,000
16 Salaries Expense 12,000
Withholding Taxes Payable 375.64
Cash on Hand 11,624.36

18 Notes Receivable 5,000

Accounts Receivable 5,000

19 Gas & Oil 8,000

Accounts Payable 8,000

20 Cash in Bank 15,000

140
 Accounts Receivable 15,000

22 Cash on Hand 22,500

Rental Fees Revenue 22,500

23 Accounts Payable 8,000

Cash on Hand 8,000

27 Utilities Expense 6,950

Utilities Payable 6,950

28 Cash on Hand 10,017

Notes Receivable 10,000
Interest Income 17

29 Notes Payable 50,000

Interest Expense 7,000
Cash in Bank 57,000

30 Salaries Expense 12,000

WH Taxes Payable 375.64
SS Premium Payable 800.10
PH Premium Payable 300.00
HDMF Premium Payable 300.00
Cash on Hand 10,224.26

31 SS Premium Expense 1,695.90

EC Premium Expense 30.00
PH Premium Expense 300.00
HDMF Premium Expense 300.00
SS Premium Payable 1,695.90
EC Premium Payable 30.00
PH Premium Payable 300.00
HDMF Premium Payable 300.00

HC CARS AND TRUCKS FOR HIRE

PAYROLL SHEET
FOR THE PERIOD Jan 1 to 15, 2010
Gross Withholding Net
Names Position Earnings Tax SS Philhealth HDMF Earnings Signature
Raul Driver 4,000 166.17 3,833.83
Bert Driver 4,000 166.17 3,833.83
Noel Driver 4,000 43.30 3,956.70
12,000 375.64 11,624.36
8,000-466.70/2= (3,766.65-3,333)15% = 62.00+104.17 = 166.17
8,000-466.70/2= (3,766.65-3,542)10% = 22.47+20.83 = 43.30

HC CARS AND TRUCKS FOR HIRE

PAYROLL SHEET
FOR THE PERIOD Jan 1 to 15, 2010
Names Position Gross Withholding SS Philhealth HDMF Net Signature
Earnings Tax Earnings
Raul Driver 4,000 166.17 266.70 100 100 3,367.13
Bert Driver 4,000 166.17 266.70 100 100 3,367.13
Noel Driver 4,000 43.30 266.70 100 100 3,490.00
12,000 375.64 800.10 300 300 10,224.26

Prepare a schedule of Employer’s share for SSS, Medicare, And EC and HDMF contributions.
Names SS EC Philhealth HDMF TOTAL
Raul 565.30 10 100 100 775.30
Bert 565.30 10 100 100 775.30
Noel 565.30 10 100 100 775.30
1,695.90 30 300 300 2,325.90

Quiz no. 26
A. 1. C 2. E 3. A 4. B 5. D
B. 1. B 2. E 3. A 4. D 5. C 6. A
C. 1. E 2. D 3. A 4. B 5. F 6. C

141
TEST II.
1. Complete worksheet.
2. Journalize and post adjustments.
3. Adjusted Trial Balance
4. Prepare financial statement.
5. Journalize and post closing entries.
6. Prepare a post closing trial balance.

TEST III.
Date Particulars Debit Credit
a) Bad debts 6,000
Allowance for bad debts 6,000
b) Interest receivable 750
Interest income 750
c) Supplies Expense 500
Unused supplies 500
d) Depreciation-furniture & fixtures 5,333
Accum Depn-furniture & fixtures 5,333
e) Utilities Expense 8,500
Utilities payable 8,500

Quiz no. 27
TEST I.
A. An adjustment for royalty income.
Unearned Royalty Fees 10,500
Royalty Fees Revenue 10,500

B. An adjustment for accrued income

Accrued Royalty Fees 11,000
Royalty Fees Revenue 11,000
TEST II
Date Particulars Debit Credit
1) Insurance Expense 75,000
Prepaid Insurance 75,000
2) Salaries Expense 5,000
Salaries Payable 5,000
3) Unearned Rent 430,000
Rent Income 430,000
4) Depreciation Expense 14,000
Accumulated Deprn 14,000
5) Prepaid Advertising 9,000
Advertising Expense 9,000

Give the effects of failing to recognize the adjusting entries in Test II by using O if overstated, U if understated, N if there
is no effect.

REVENUES EXPENSES ASSETS LIABILITIES OWNER’S EQUITY

a. N U O N O
b. N U N U O
c. U N N O U
d. N U O N O
e. N O U N U

Quiz no. 28
1. D 9. D
2. B 10. B
3. A 11. A
4. A 12. D
5. D 13. D
6. B 14. D
7. C 15. B
8. B 16. A

142
Quiz no. 29
Date Particulars Debit Credit
Dec. 31 1) Professional Fees Revenue 276,300
Income & Expense Summary 276,300

2) Income & Expense Summary 163,865

Salaries 96,100
Supplies 12,000
Utilities 37,800
Rent 7,200
Depreciation 7,125
Interest 80
Bad Debts 3,560

3) Income & Expense Summary 112,435

Margallo, Capital 112,435

4) Margallo, Capital 19,000

Margallo, Drawing 19,000

Reversing Enries:
Salaries Payable 12,000
Salaries 12,000

Interest Payable 80
Interest Expense 80

Supplies Expense 5,000

Supplies 5,000

Adjusted
Account Titles Trial Balance Adjustments Trial Balance Income Statement Fin Position
Cash 186000 186000 186000
Accounts receivable 71200 71200 71200
Prepaid rent 19200 a) 7200 12000 12000
Equipment 177500 177500 177500
Accum deprn 5500 b) 7125 12625 12625
Accounts payable 18000 18000 18000
Notes payable 12000 12000 12000
Margallo, capital 300000 300000 19000
Margallo, drawings 19000 19000
Professional fees 276300 276300 276300
Salaries 84100 C) 12000 96100 96100
Supplies 17000 f) 5000 12000 12000
Utilities 37800 37800 37800
Totals 611800 611800
Rent a) 7200 7200 7200
Depreciation b) 7125 7125 7125
Salaries payable c) 12000 12000 12000
Interest expense d) 80 80 80 80
Interst payable d)80 80
Bad debts e) 3560 3560 3560 3560
Allow for bad debts e)3560 3560
Supplies f) 5000 5000
Totals 34965 34965 634565 634565 163865 276300
Net income 112435 11243
5
Totals 276300 276300 47070
0

Quiz no. 30
1. Helen Yu, Realtor
Income Statement
For the year ended Dec. 31, 2010
Revenues (Note 1) P2,977,190

Less: Depreciation (Note 2) P1,293,500

Insurance 49,000
Repairs 152,500
Salaries 118,750
Supplies 21,420
Utilities 175,500
Bad Debts 5,000
Promotions 112,040
Taxes & Licenses 150,000 2,077,710
Operating Income 899,480
Gain on Sales of Land 18,780
Net Income P 918,260

143
 Note 1 Revenues:
Rental Fees Revenues P1,627,190
Parking Fees Revenue 1,350,000
Total Revenues P2,977,190
Note 2 Depreciation:
Furniture P 32,500
Building 1,250,000
Office Equipment 11,000
P1,293,500

Helen Yu Realtor
Capital Statement
For the year ended Dec. 31, 2010
Yu, Capital Jan. 1, 2008 (16,500,000-1,222,500) P15,277,500
Drawings ( 20,000)
Net Income 918,260
Yu, Capital, Dec. 31, 2008 16,175,760

2. Helen Yu Realtor
Statement of Financial Position
Dec. 31, 2010
Assets
Current Assets
Cash (Note 3) P2,292,825
Trade Other Receivables (Note 4) 792,500
Prepaid Exp. (Note 5) 62,630
Total Current Assets P3,147955
Non-Current Assets:
Property, Plant & Equipment 13,122,340
Total Assets 16,270,295

Liabilities & Owner’s Equity

Trade and other Payable (Note 7) P 94,535
Yu, Capital 16,175,760
Total Liabilities & Owner’s Equity P16,270,295

Note 3: Cash On Hand 592,825

Cash In Bank 1,700,000
2,292,825
Note 4: Accounts Receivable P525,000
Notes Receivable 275,000
Allowance for Bad Debts ( 7,500)
792,500
Note 5: Prepaid Supplies P12,130
Prepaid Insurance 50,500
P62,630

Note 6: Land P1,300,000

Office Equipment P122,500
Accum. Depn. ( 32,250) 90,250
Furniture & Fixtures 580,840
Accum. Depn. ( 98,750) 482,090
Building P15,000,000
Accum. Depn. 3,750,000 11,250,000
P13,122,340
Note 7: Taxes Payable 41,535
Utilities Payable 53,000
94,535
3. Operating Ratio:899,480 /2,977,190 = 30.21%
Profit Ratio: 918,260 / 2,977,190 = 30.84%
Return on Equity: 918,260 / 15,726,630 = 5.84%
No, with an ROE of 5.84% only.

4.
Cash flow from operating activities:
Revenues (2,977,190 – 425,000 + 75,000) P2,627,190
Expenses Insurance (49,000 + 15,000) ( 64,000)
Repairs (152,500)
144
 Salaries (118,750)
Supplies (21,420 – 500) ( 20,920)
Utilities (175,500 + 10,000) (185,500)
Promotions (112,040)
Taxes (150,000-50,000) (100,000) 1,873,480
Cash flow from investing activities:
Proceeds from sale of land (200,000 + 18,780) 218,780
Cash flow from financing activities:
Drawings ( 20,000)
Increase (decrease) in cash flow for the year 2,072,260
Add Cash balance, Dec. 31, 2008 220,565
Cash balance, Dec. 31, 2009 2,292,825

Quiz no. 31
A. FANTASY LAND
Statement of Financial Position
DECEMBER 31, 2009
Assets
Current Assets:
Cash P 37,880
Notes Receivable 15,400
Accounts Receivable 14,900
Supplies 1,500 P 69,680
Property, Plant & Equipment
Land P 178,000
Building 5,108,640
Office Furniture 105,650
Play Equipment 544,800 5,987,090
Total Assets P 6,006,770
Liabilities & Owner’s Equity
Current Liabilities
Accounts Payable P 95,400
Notes Payable 2,987,000 P 3,082,400
Owner’s Equity
Bautista, Capital 2,924,370
Total Liabilities & Owner’s Equity P 6,066,770
B.
1. ENTITY PRINCIPLE 2. EXCHANGE PRICE 3. ENTITY PRINCIPLE
4. COST PRINCIPLE 5. ENTITY PRINCIPLE 4. EXPENSE RECOGNITION PRICIPLE

Quiz no. 32
1. GOOD COMPANY
Worksheet (partial)
For the month ended April 30, 2012

Adjusted Trial Income Financial

Balance Statement Position
Account Titles Debit Credit Debit Credit Debit Credit
Cash 13,752 13,752
Accounts Receivable 7,840 7,840
Prepaid Rent 2,280 2,280
Equipment 23,050 23,050
Accumulated Depreciation 4,921 4,921
Notes Payable 5,700 5,700
Accounts Payable 5,672 5,672
Interest Payable 57 57
Go, Capital 30,960 *30,572
Go, Drawings 3,650
Service Revenue 15,590 15,590
Salaries Expense 10,840 10,840
Rent Expense 760 760
Depreciation Expense 671 671
Interest Expense 57 57
Net Income 3,262
Totals P62,900 P62,900 P15,598 P15,590 P46,922 P46,922
*30,960 + 3,262 – 3,650= 30,572

145
 2.
Trial Balance Adjustments Adjusted
Account Titles Debit Credit Debit Credit Trial Balance
Accounts Receivable 25,000 9,000 34,000
Prepaid Insurance 26,000 6,000 20,000
Supplies 7,000 5,000 2,000
Accumulated Depreciation 12,000 10,000 22,000
Salaries Payable 5,000 5,000
Service Revenue 88,000 9,000 97,000
Insurance Expense 6,000 6,000
Depreciation Expense 10,000 10,000
Supplies Expense 5,000 5,000
Salaries Expense 44,000 5,000 49,000

3.
Date Particulars Debit Credit
June 30 1) Service Revenue 7,640
Income & Expense Summary 7,640

2) Income & Expense Summary 5,050

Salaries 1,650
Representation 350
Supplies 3,050

3) Income & Expense Summary 2,590

Kimy, Capital 2,590

4) Kimy, Capital 2,000

Kimy, Drawing 2,000

Kimy, Capital – 6/30/12 P5,590.00

Quiz no. 33
Date Particulars Debit Credit
Dec. 31 a) Supplies Inventory 1,000
Supplies 1,000
b) Depreciation – Car 30,000
Accumulated Depn. – Car 30,000
c) Insurance Expense 3,125 3,125
Prepaid Insurance
d) Interest Receivable 195
Interest Income 195
e) Salaries Expense 3,200
Salaries Payable 3,200
f) Placement Income 30,000
Unearned Placement Income 30,000
g) Bad Debts 3,500
Allowance for Bad Debts 3,500
Cash Accounts Receivable
80,000 12/31 Bal. 80,000 30,000 12/31/ Bal. 30,000
1/1 bal 80,000 1/1/ Bal. 30,000
Allowance Notes Receivable
12/31 Bal 5,000 1,500 6,500 12/31 Bal. 30,000
AE 3,500 1/1 Bal. 6,500
1/1 Bal. 5,000
Interest Receivable Prepaid Insurance
AE 195 12/31 1,000 3,750 AE 3,125
1/1 Bal. 195 1/1 Bal. 625 12/31 Bal. 625
Supplies Inventory Car
AE 1,000 12/31 Bal. 1,000 365,000 12/31 365,000
1/1 Bal. 1,000 1/1 Bal. 365,000
Accumulated Depreciation Accounts Payable
12/31 52,500 22,500 12/31 Bal. 25,000 25,000
AE 30,000 1/1 Bal. 25,000
146
 1/1 Bal. 52,500
Notes Payable Salaries Payable
12/31 15,000 15,000 12/31 3,200 AE 3,200
1/1 Bal. 15,000 1/1 Bal. 25,000

Unearned Placement Income Laredo, Capital

12/31 Bal. 30,000 AE 30,000 12/31 CE 35,000 334,050
1/1 Bal. 30,000 Bal. 352,620 12/31 CE 53,570
1/1 Bal. 352,620
Laredo, Personal Placement Income
35,000 12/31 CE 35,000 AE 30,000 380,000
CE 350,000

Gas & Oil Salaries

11,500 CE 11,500 168,000 CE 171,200
AE 3,200

Supplies Bad Debts

2,500 AE 1,000 AE 3,500 CE 3,500
CE 1,500

Depreciation Rent
AE 30,000 CE 30,000 76,500 CE 76,500

Insurance Interest Income

AE 3,125 CE 3,125 12/31 CE 2,695 2,500
AE 195
Interest Expense
1,800 CE 1,800

Laredo Placement Agency

Income Statement
For the year ended Dec. 31, 2011
Revenues:
Placement Income P350,000
Interest Income 2,695 P352,695
Expenses:
Salaries P171,200
Rent 76,500
Depreciation 30,000
Gas & Oil 11,500
Bad Debts 3,500
Insurance 3,125
Supplies 1,500
Interest Expense 1,800 299,125
Net Income P 53,570

Laredo Placement Agency

Capital Statement
For the year ended Dec. 31, 2011
Laredo, Capital Jan. 1 P 334,050
Net Income 53,570
Laredo Personnal ( 35,000)
Laredo Capital, Dec. 31 P 352,620

Laredo Placement Agency

Statement of Financial Position
December 31, 2011
ASSETS
147
 Current Assets:
Cash P80,000
Trade and other receivables 31,695
Prepaid Expense (note 2) 1,625 P113,320
Property, Plant & Equipment:
Cars P365,000
Accumulated Depreciation 52,500 312,500
Total Assets P425,820
LIABILITIES & OWNER EQUITY
Current Liabilities:
Trade and other payables(note 3) P 73,200
Laredo Capital 352,620
Total Liabilities & Owners Equity P425,820

Note 1: Accounts Receivable P30,000

Less Allow for Bad Debts 5,000
Notes Receivable P 6,500
Interest Receivable 195
Total P31,695
Note 2: Prepaid Insurance P 625
Supplies 1,000
Totals P 1,625
Note 3: Accounts Payable P25,000
Notes Payable 15,000
Salaries Payable 3,200
Unearned Placement Income 30,000
Totals P73,200

Date Particulars F Debit Credit

Dec. 31 Closing Entries:
Placement Income 350,000
Interest Income 2,695
Income & Expense Summary 352,695
Income & Expense Summary 299,125
Salaries 171,200
Gas & Oil 11,500
Rent 76,500
Depreciation 30,000
Bad Debts 3,500
Insurance 3,125
Supplies 1,500
Interest 1,800
Income & expense Summary 53,570
Laredo Capital 53,570
Laredo, Capital 35,000
Laredo, Personal 35,000

Laredo Placement Agency

Post Closing Trial Balance
Dec. 31, 2009
Cash P80,000
Accounts Receivable 30,000
Allowance for Bad Debts 5,000
Notes Receivable 6,500
Interest Receivable 195
Prepaid Insurance 625
Supplies 1,000
Car 365,000
Accumulated Depreciation 52,500
Accounts Payable 25,000
Notes Payable 15,000
Salaries Payable 3,200
Unearned Placement Income 30,000
Laredo, Capital _______ 352,620
Totals P483,320 P483,320

Date Particulars F Debit Credit

Jan. 1, 2009 Supplies Expense 1,000
Supplies Inventory 1,000
Interest Income 195
Interest Receivable 195

148
 Salaries Payable 3,200
Salaries Expense 3,200
Unearned Placement Income 30,000
Placement Income 30,000

Quiz no. 34
Test I.

1. V 6. P 11. F 16. K
2. B 7. E 12. N 17. S
3. D 8. Q 13. R 18. U
4. Y 9. C 14. T 19. L
5. O 10. X 15. J 20. A

Test II.
1. B 2. A 3. E 4. B 5. D
6. A 7. D 8. D 9. D 10. B

Quiz no. 35
Test I.
1. A 2. B 3. D 4. C 5. B
6. A 7. D 8. D 9. C
Test II. Sales revenue earned for the year:
Import paint (364 x 700) 254,800
Local paint (260 x 1,600) 416,000
Total 670,800

Cost of sales for the year:

Inventory, Beg-Imported (250x200) 50,000
Local (150x500) 75,000
Total 125,000
Purchases-Imported (280x800) 224,000
Local (200x1,500) 300,000
Less Purchase Discount (4x1,500) 6,000 518,000
Total 643,000
Less Inventory-End Imported (280x300) 84,000
Local (196x400) 78,400 162,400
Total Cost of Sales P480,600
Operating Expense for the year:
Rent P 60,000
Salaries 36,000
Utilities 24,000
Total P120,000
Gross Profit and Net Income:
Total Sales Revenue P 670,800
Less Cost of Sales 480,600
Gross Profit 190,200
Less Operating Expense 120,000
Net Income P 70,200
Quiz no. 36
Date Particulars F Debit Credit
July 1 Merchandise Inventory 50,000
Cash on Hand 200,000
Lopez, Capital 250,000
2 Purchases 7,500
Cash on Hand 2,500
Accounts Payable 5,000
3 Purchases 10,000
Accounts Payable 10,000
4 Freight In 750
Cash on Hand 750
5 Cash on Hand 15,000
Sales 15,000
7 Cash on Hand 4,000
Accounts Receivable 5,000
Sales 9,000
8 Supplies 1,500
Cash on Hand 1,500
10 Accounts Payable 500
149
 Purchase Returns & Allow 500
12 Sales Returns & Allow 220
Cash on Hand 220
13 Cash on Hand 4,950
Sales Discount 50
Accounts Receivable 5,000
15 Office Salaries 2,500
Sales Salaries 3,500
Cash on Hand 6,000
17 Cash on Hand 14,000
Sales 14,000
18 Accounts Payable 5,000
Purchase Discount 150
Cash on Hand 4,850
19 Accounts Receivable 5,836.10
Cash on Hand 500
Sales 5,336.10

20 Accounts Payable 4,500

Cash on Hand 4,500

25 Cash on Hand 1,167.22

Accounts Receivable 1,167.22

30 Taxes Expense 1,292

Taxes Payable 1,292

Subsidiary Ledger
Customer: Manuela
Date Particulars Ref Debit Credit Balance
July 7 2/5,1/10,n/30 9,000 9,000
Down Payment 4,000 5,000
13 Full Collection 5,000 0
Customer: Pena
Date Particulars Ref Debit Credit Balance
July 19 2/10,n/30 5,836.10 5,836.10
25 Partial Collection 1,167.22 4,668.88
Supplier: Pax
Date Particulars Ref Debit Credit Balance
July 2 2/10,n/30 5,000 5,000
10 Returns 500 4,500
20 Full Payment 4,500 0
Supplier: Capiz
Date Particulars Ref Debit Credit Balance
July 3 3% comm., FOB Ship Pt 10,000 10,000
18 Partial Payment 5,000 5,000

T Accounts
Purchases Freight In
7/2 7,500
3 10,000 7/4 750

Merchandise Inventory Sales

7/1 50,000 7/5 15,000
7 9,000
17 14,000
19 5,336.10

Purchase Discount Sales Returns & Allowances

7/18 150 7/12 220
Purchase Returns & Allowances Sales Salaries
7/10 500 7/15 3,500
31 3,500

150
 Store Rent Office Salaries
7/31 5,000 7/15 2,500
31 2,500

Store Utilities Office Supplies Expense

7/31 3,000 7/31 500

Candle-Light
Income Statement
For the month ended July 31, 2010

Net Sales (note 1) P43,066.10

Cost of Sales (note 2) 24,100.00
Gross Profit 18,966.10
Selling Expenses (note 3) ( 15,000.00)
Administrative Expenses (note 4) ( 5,500.00)
Net Income P 11,533.90

Note 1: Sales P 43,336.10

Sales Discount ( 50.00)
Sales Returns & Allow ( 220.00)
Net Sales P 43,066.10

Note 2: Mdse Invty July 1 P 50,000

Purchases 17,500
Freight In 750
Purchase Discount ( 150)
Purchase Returns & Allow ( 500)
Mdse Invty July 31, (43,500)
Cost of Sales P 24,100

Note 3: Sales Salaries P 7,000

Store Rent 5,000
Store Utilities 3,000
Total Selling Expenses P 15,000

Note 4: Office Salaries P 5,000

Office Supplies & Expense 500
Total Administrative P 5,500

Accounts Receivable Accounts Payable

7/7 5,000.00 7/13 5,000.00 7/10 500 7/2 5,000
19 5,836.10 25 1,167.22 18 5,000 3 10,000
20 4,500
4,668.88 5,500
Quiz no. 37
A. Apr 5 Merchandise Inventory 20,000
Accounts Payable 20,000

6 Merchandise Inventory 700

Cash 700

7 Equipment 29,000
Accounts Payable 29,000

8 Accounts Payable 3,000

Merchandise Inventory 3,000

15 Accounts Payable 17,000

Cash 17,000

20 Cash 7,500
Sales 7,500

Cost of Sales 6,000

Merchandise Inventory 6,000

21 Freight Out 500

Cash 500

151
 22 Accounts Receivable 5,000
Sales 5,000

Cost of Sales 4,000

Merchandise Inventory 4,000

25 Sales Returns and Alowances 1,000

Accounts Receivable 1,000

Merchandise Inventory 800

Cost of Sales 800

B. Mercy Co Leonard
6/10 Merchadise Invty 8,000 Accounts Receivable 8,000
Accounts Payable 8,000 Sales 8,000

Merchandise Invty 400

Cash 400
6/19 Accounts Payable 8,000 Cash 7,840
Merchadise Invty 160 Sales Returns 160
Cash 7,840 Accounts Receivable 8,000

Quiz no. 38
Date Accounts & Explanation Debit Credit
Jan 1 Cash on Hand 500,000
Merchandise Inventory 40,000
Mison, Capital 540,000

4 Purchases 16,299
Input Tax 956
Accounts Payable 18,255

7 Purchases 8,000
Input Tax 960
Accounts Payable 8,960
8 Freight In 500
Input Tax 60
Cash on Hand 560
9 Accounts Receivable 7,840
Sales 7,000
Output Tax 840
10 Accounts Payable 784
Purchase Return 700
Input Tax 84
15 Cash on Hand 22,400
Sales 20,000
Output Tax 2,400
Salaries 7,000
Withholding Tax 350
Cash on Hand 6,650
16 Accounts Receivable 6,720
Sales 6,000
Output Tax 720
17 Accounts Payable 4,480
Cash on Hand 4,480
18 Sales Returns 1,000
Output Tax 120
Cash on Hand 1,120
24 Cash on Hand 3,292.80
Sales Discount 60.00
Output Tax 7.20
Accounts Receivable 3,360
26 Cash on Hand 7,840
Accounts Receivable 7,840
28 Cash on Hand 22,400
Sales 20,000
Output Tax 2,400
30 Accounts Payable 17,471
Cash on Hand 17,471
31 Utilities 3,000
Utilities Payable 3,000

152
 Salaries 7,000
W/T Payable 350
SS Premium Payable 420
PH Premium Payable 210
Pag-ibig Premium Payable 280
Cash 5,740
Name: Octo
Date Particulars Ref Debit Credit Balance
¼ 1/10,n/30 18,255
10 Returns 784 17,471
30 Full Payment 17,471 0
Name: Villar
Date Particulars F Debit Credit Balance
1/7 2/10,n/30 8,960
17 Partial payment 4,480 4,480

Name: That’s
Date Particulars Ref Debit Credit Balance
1/9 2/10,n/30 7,840 7,840
26 Full Collection 7,840 0
Name: Music
Date Particulars Ref Debit Credit Balance
1/16 2/10,n/30 6,720 6,720
24 Partial collection 3,360 3,360

Accounts Receivable Accounts Payable

1/9 7,840 1/24 3,360 1/10 784 1/14 18,255
16 6,720 26 7,840 17 4,480 7 8,960
Balance 3,360 30 17,471 Balance 4,480

Quiz no. 39
1. E 2. C 3. B 5. B 6. D
7. A 8. B 9. C 10. B 11. D
12. D 13. B 14. A 15. D 16. C 17. D

QUIZ no. 40 SALES JOURNAL

ACCOUNTS CASH OUTPUT
DATE CUSTOMER'S INV. F RECEIVABLE SALES SALES TAX
NAME NO. DEBIT DEBIT CREDIT CREDIT
Apr 1 David's 428 8,960 8,000 960
3 Jessie 429 3,920 3,500 420
6 Ricky 430 2,464 2,200 264
8 Cash Sales 431 3,696 3,300 396
29 Jessie 432 2,240 2,000 240

17,584 3,696 19,000 2,280

CASH RECEIPTS JOURNAL

SALES ACCTS CASH
Date RECEIVED EXPLANATION O.R. CASH DISC F RECBL SALES SUNDRY CREDIT
\ FROM NO. DEBIT DEBIT E CREDI ACCOUNT
April CREDIT T
4 Hair Straightening Full collection 231 2,587.34 47 2,640.00 Output Tax ( 5.66)
6 Ricky Down payment 232 1232.00 1,232.00
8 Cash customer Cash sales Crt 3,696.00 3,696
9 Woodmark Sale of supplies 233 250.00 Supplies 250.00
10 David's Partial collection 234 4,200.00 4,200.00
12 Jessie Full collection 235 3,841.60 70 3,920.00 Output Tax ( 8.40)
15 Ricky Full collection 236 1,182.72 44 1,232.00 Output Tax ( 5.28)

16,989.6 161 13,224 3,696 (19.34)

6
250.00

GENERAL JOURNAL
April 5 Sales Returns 500
Output Tax 60
Accounts Receivable 560

30 Notes Receivable 4,200

Accounts Receivable 4,200

GENERAL LEDGER
Date Particulars F Debit Date Particulars F Credit
April 1 Balance 2,640 April 5 GJ 550

153
 30 SJ 16,775 30 CRJ 12,815
GJ 3,850
Balance 2,200
19,415 19,415

Customer’s Cards:
Name: Hair Strengthening
Date Explanation Ref Debit Credit Balance
Mar. 27 2/10, n/30 Inv. 0111 SJ3 2,640 2,640
Apr. 4 Full collection CRJ4 2,640 0

Name: David’s
Date Explanation Ref Debit Credit Balance
Apr. 1 2/10, n/30 SJ4 8,960 8,960
5 CM3 GJ 560 8,400
10 Partial collection CRJ4 4,200 4,200
30 15 day, 12% note GJ 4,200 0
Name: Jessie
Date Explanation Ref Debit Credit Balance
Apr. 3 2/10, n/30 SJ4 3,920 3,920
12 Full collection CRJ4 3,920 0
29 2/10, n/30 SJ4 2,240 2,240

Name: Ricky
Date Explanation Ref Debit Credit Balance
Apr. 6 2/10, n/30 SJ4 2,464 2,464
Down CRJ4 1,232 1,232
15 Full collection CRJ4 1,232 0
Quiz no. 41
PURCHASES JOURNAL
CASH ACCTS
DATE PURCHASED FROM INV. PURCHASES INPUT TAX PURCHASE F PAYABLE
NO. Debit Debit Credit Credit
Dec 2 San Pedro Orchard 42 8,000 960 8,960
4 Ms. Cojuangco 12515 5,000 600 5,600
16 West Farms 102 7,500 900 8,400

20,500 2,460 8,960 14,000

GENERAL JOURNAL
DATE ACCOUNTS & EXPLANATIONS DEBIT CREDIT
Dec 7 Furniture & Fixtures 15,000
Input Tax 1,800
Accounts Payable 16,800
14 Accounts Payable 560
Purchase Returns 500
Input Tax 60
16 Accounts Payable 8,400
Notes Payable 8,400

GENERAL LEDGER for ACCOUNTS PAYABLE

Date Particulars F Debit Date Particulars F Credit
Dec 14 GJ 550 Dec 7 16,500
16 GJ 8,250 31 13,750
31 CDJ 21,450

CASH DISBURSEMENTS JOURNAL

PURCH ACCTS CASH
DATE PAID TO EXPLANATION VO. CASH DISCT F PAYBLE PURCH SUNDRY Debit Credit
Dec No. CREDIT CREDIT DEBIT DEBIT ACCOUNT
2 San Pedro Cash purchases 21 8,960 8,960
3 DVO CityHall Taxes & licenses 22 2,000 Taxes &Lic 2,000
6 DVForwarder Freight in 23 1,120 Freight In 1,000

154
 Input Tax 120
9 Corona Cash purchases 24 2,800 Supplies 2,500
Input Tax 300
15 Employees Salaries 25 5,700 Salaries 6,000
WH Tax Pay 300
17 Ideas In full of acct 26 16,464 16,800 Furn & Fix 300
Input Tax 36
25 Customer Cash refund 27 224 Sales 200
Returns
Output Tax 24
28 Ms Cojuangco Full payment 28 5,040 5,040
30 Employees Salaries 29 4,920 Salaries 6,000
WT Payble 300
SS Payble 360
PH Payble 180
Pag-ibig Pay 240
31 West Farms Paid note 30 8,463 Notes Payble 8,400
Interest Exp 63
55,691 21,840 8,960 26,60 1,716
7

SUPPLIERS' CARDS
Name:Ms Cojuanco

Date Explanation Ref Debit Credit Balance

Dec 4 2/10,n/30 Inv 12515 PJ12 5,600 5,600
14 CM GJ 5,60 5,040
28 Full payment CD12 5,040 0

Name:Ideas

Date Explanation Ref Debit Credit Balance

Dec 7 2/15,n/30 Inv 711 GJ 16,800 16,800
17 Paid in full CD12 16,800 0

Name:West Farms

Date Explanation Ref Debit Credit Balance

Dec 16 Inv 102 PJ12 8,400 8,400
15 day, 18% note GJ 8,400 0

Quiz no. 42
Sales Journal
ACCOUNTS CASH SALES
DATE CUSTOMER INV. NO. F RECEIVABLE SALES CREDIT
DEBIT DEBIT
Aug 7 Greenland 1001 30,000 30,000
14 Cash Sales CRT 20,000 20,000
20 Oakland 1002 18,000 18,000
48,000 20,000 68,000

Purchase Journal
CASH ACCOUNTS
DATE SUPPLIER INV. PURCHASES PURCHASES F PAYABLE
NO. DEBIT CREDIT CREDIT
Aug. 3 Rustic 47,500 47,500
6 Babyland 50,000 50,000
10 Jasmin 15,000 15,000
112,500 97,500 15,000

General Journal
DATE ACCOUNTS & EXPLANATION DEBIT CREDIT
Aug 5 Equipment 80,000
Accounts Payable 80,000
18 Accounts Payable 1,000
Purchase Returns 1,000
Cash Receipts Journal
SALES ACCTS CASH
RECEIVED EXPLANATION O.R. CASH DISCT F RECBLE SALES SUNDRY CREDIT
FROM NO. DEBIT CREDIT CREDIT CREDIT ACCOUNT
8/ 1 Marvin investment 300,000 Marvin Captl 300,000
14 Cash customers Cash sales CRT 80,000 80,000

155
25 Oakland collection O1 17,640 360 18,000
397,640 360 18,000 80,000 300,000

Cash Disbursements Journal

PURCH ACCTS CASH

PAID TO EXPLANATIONS VO. CASH DISCT F PAYBLE PURCH SUNDRY Debit Credit
No. CREDI CREDIT DEBIT DEBIT ACCOUNT
T
8/3 Rustic Cash purchase 101 45,000 45,000
6 Babyland Cash purchase 102 50,000 50,000
17 Aboitiz Freight paid 103 3,000 Freight In 3,000
21 Customer Cash refund 104 2,000 Sales Ret 2,000
22 Jasmin Paid in full 105 14,000 14,000
30 Employees salaries 106 4,150 Salaries 5,000
Witholding 250
SSPremPay 300
HDMF 200
PhilHealth 100
31 BIR percentagetax 107 2,029.1 Taxes 2,029.14
4

Quiz no. 43 SALES JOURNAL

ACCOUNTS CASH OUTPUT
DATE CUSTOMER’S INV. F RECEIVABLE SALES SALES TAX
NAME NO. DEBIT DEBIT CREDIT CREDIT
Jul 8 Mona’s 001 4,000 3,571 429
17 Cash Sales 9,750 8,705 1,045
18 Lea’s 002 14,000 12,500 1,500
29 Brenda’s 003 7,500 6,696 804

25,500 9,750 22,768 2,732

CASH RECIEPTS JOURNAL

SALES ACCTS CASH
RECEIVE EXPLANATION O.R. CASH DISCT F RECBLE SALES SUNDRY CREDIT
July D FROM NO. DEBIT CREDIT CREDIT CREDIT ACCOUNT
1 C Poras Investment 1 25,000 Poras, Captl 25,00
8 Mona’s Down 2 1,000 / 1,000
14 Nova Store rent 3 1,500 Rent Income 1,500
17 Customer Cash Sales Crt 9,750 9,750
18 Lea’s Down 4 4,000 / 4,000
20 Mona’s Full Collection 5 2,940 53.57 / 3,000 Output tax (6.43)
28 Lea’s Note Collection 6 10,055,56 Notes Recble 10,000
29 Brenda’s Down 7 3,750 / 3,750 Interest 55.56
income

58,975.56 71.43 12,750 9,750 36546.99

PURCHASE JOURNAL
CASH ACCOUNTS
DATE PURCHASED INV. NO PURCHASES INPUT TAX PURCHASE PAYABLE
FROM Debit debit Credit Credit
July 5 Chic’s 123 4,286 514 4,800
20 Fashion 1718 8,929 1,071 10,000
25 Fanny 509 3,125 375 3,500

16,340 1,960 3,500 14,800

Cash Disbursement Journal

PURCH ACCTS CASH
July PAID TO EXPLANATION VO. CASH DISCT F PAYBLE PURCH SUNDRY Debit Credit
No. CREDIT CREDIT DEBIT DEBIT ACCOUNT
4 Tondo Cash purchase 101 1,500.00 Supplies 1,339
Input Tax 161
6 Freight Co Paid for freight 102 200.00 Freight In 179
Input Tax 21
11 Store clerk Advances 103 150.00 Advances 150
12 Chic’s Full payment 104 4,756.71 42.86 / 4,800 Input Tax .43
15 Store clerks Payroll 105 3,400.00 Salaries 3,900
Witholding 350.00
156
 Advances 150.00
24 High Build Display cabinets 106 2,500 Furniture 2,500
25 Fanny Cash purchase 106 3,500.00 3,500
30 Lessor rent 107 3,000.00 Rent Exp 3,000
31 Store clerks Payroll 108 3,043.00 Salaries 3,900
Witholding 350.00
SS Payble 234.00
PH Payble 117.00
Pagibig Pay 156.00

19,549.7 42.86 4,800 3,500 12,65 1,357.4

1 0 3

GENERAL JOURNAL
DATE PARTICULARS DEBIT CREDIT
July 1 Furniture & Fixtures 15,00
Merchandise Inventory 20,000
Poras,Capital 35,00
18 Notes Receivable 10,000
Accounts Receivable 10,000
31 SS Premium Expense 234
PH Premium Expense 117
Pag-Ibig Premium Expense 156
SS Premium Payable 234
PH Premium Payable 117
Pag-Ibig Premium Payable 156
Utilities Expense 750
Utilities Payable 750
Supplier’s Name:Chic’s

Date Explanation Ref Debit Credit Balance

July 8 1/10,n/30 Inv 123 PJ 4,800 4,800
12 Full payment CDJ 4,800 0

Supplier’s Name: Fashion

Date Explanation Ref Debit Credit Balance

July 20 2/10,n/30 PJ 10,000 10,000

Customer: Mona

Date Explanation Ref Debit Credit Balance

July 10 2/10,n/30 SJ 4,000 4,000
25% down CRJ 1,000 3,000
20 Full collection CRJ 3,000 0

Customer: Lea’s

Date Explanation Ref Debit Credit Balance

July 18 2/10,n/30 SJ 14,000 14,000
P4,000 down CRJ 4,000 10,000
10 day 20% note GJ 10,000 0

Customer: Brenda
Date Explanation Ref Debit Credit Balance
July 29 2/10,n/30 SJ 7,500 7,500
50% down CRJ 3,750 3,750

GENERAL LEDGER for ACCOUNTS PAYABLE

Date Particulars F Debit Date Particulars F Credit
July 31 CDJ 4,800 July 31 PJ 14,800
Bal 10,000

GENERAL LEDGER for ACCOUNTS RECEIVABLE

Date Particulars F Debit Date Particulars F Credit
July 31 SJ 25,500 July 18 GJ 10,000
31 CRJ 12,750

157
 Bal 3,750

Quiz no. 44:

A. Nam Mayo
a) 6,000
b) 28,000
c) 2,520
d) 10,480
e) 105,000
Gross Profit 33.33% 41.50%
Profit Margin 12.48% 15.00%
Mayo Co is more profitable
f) 58,500
g) 3,000
h) 23,500

B.
Net Sales 785,000
Cost of Sales 486,000
Gross Profit 299,000
Net Income 130,000
Operating Expenses 169,000

Quiz no. 45:

1.A 6.B 11.B
2.A 7.B 12.A
3.C 8.B 13.B
4.D 9.B 14.D
5.A 10.D 15.E

Quiz no. 46:

SHOPWISE MART
SIX COLUMN WORKSHEET
DECEMBER 31, 2009
Adjusted Trial
Trial Balance Adjustments Balance
Debit Credit Debit Credit Debit Credit
Cash 2 2
Accounts Receivable 10 10
Allowance for Bad Debts 1 b) 1 2
Merchandise Inventory, Jan. 1 6 6
Office Supplies Inventory 4 a) 3 1
Store Furniture & Fixtures 7 7
Accumulated Depreciation 3 e) .7 3.7
Accounts Payable 3 3
Santos, Capital 26 26
Santos, Personal 5 5
Sales 42 42
Sales Returns 2 2
Purchases 19 19
Freight In 2 2
Purchase Discount 3 3
Advertising 3 3
Store Rent 7 c) 2 5
Sales Salaries 11 d) 1 12
Totals 78 78

Supplies a) 3 3
Bad Debts b) 1 1
Prepaid Rent c) 2 2
Accrued Sales salaries d) 1 1
Depreciation e) .7 .7
Merchandise Inventory, End f) 12 f) 12 12 12
Totals 19.7 19.7 92.7 92.7

Prepare the closing entries and reversing entries without explanations.

Date Accounts and Explanations Debit Credit
CE No. 1 Sales 42
Sales Returns 2
Income and Expenses Summary 40
158
 2 Purchase Discount 3
Merchandise Inventory, End 12
Income & Expense Summary 30.7
Purchases 19
Freight In 2
Advertising 3
Store Rent 5
Sales Salaries 12
Supplies 3
Bad Debts 1
Depreciation .7

3 Income and Expense Summary 9.3

Santos, Capital 9.3

4 Santos, Capital 5
Santos Personal 5

RE 1 Rent Expense 2
Prepaid Rent 2

Accrued Sa laries 1
Sales Salaries Expense 1

QUIZ No. 47
A.
P 750,000 Not yet due 1% 7,500
200,000 1-30 days past due 2 4,000
220,000 31-60 days past due 5 11,000
60,000 61-90 days past due 30 18,000
30,000 Over 90 days 60 18,000
P1,260,000 P58,500

Date Accounts and Explanation F Debit Credit

Dec. 31 Bad Debs Expense 13,500
Allowance for Doubtful Accounts 13,500

Allowance for Doubtful Accounts 20,000

Accounts Receivable 20,000

Accounts Receivable (1,260,000 – 20,000) 1,240,000

Less: Allowance for Doubtful Accounts (58,500 – 20,000) 38,500
Net Realizable 1,201,500

B.
AE 1 Depreciation-Delivery Truck 9,000
Depreciation Store Equipment 3,600
Depreciation Office Equipment 900
Accum Depreciation- Delivery Truck 9,000
Accum Depreciation- Store Equipment 3,600
Accum Depreciation- Office Equipment 900

2 Rent Expense 48,200

Prepaid Rent 48,200

Banez Grocery
Income Statement
For Six Months Ended June 30, 2010
Sales (410 + 330) P740,000
Less Cost of Sales
Merchandise Inventory Beg P150,000
Purchases (156 + 50) 206,000
Merchandise Inventory, End (87,500) (268,500)
159
 Gross Profit P471,500
Less Selling (60,000 + 32,133) P92,133
Depreciation-Store Equipment 3,600
Depreciation-Delivery Truck 9,000
104,733
Administrative (45,000 + 16,067) 61,067
Depreciation-Office Equipment 900
61,967 166,700
Net Income P304,800
Banez Grocery
Capital Statement
For Six Months Ended June 30, 2010
Banez Capital, Jan 1 P650,000
Net Income 304,800
Banez Capital, Dec 31 P954,800

Banez Grocery
Balance Sheet
June 30, 2010
Current assets
Cash P 102,600
Accts Receivable 330,000
Merchandise Inventory 87,500
Prepaid Rent 48,200 P568,3000
Fixed Assets
Delivery Truck P 300,000
Accum Depn 9,000 P 291,000
Store Equipment 120,000
Accum Depn 3,600 116,400
Office Equipment 30,000
Accum Depn 900 29,100 436,500
Total Assets P1,004,800
Current Liabilities
Accounts Payable P 50,000
Owner’s Equity
Banez Capital 954,800
Total Liabilities & Owner’s Equity P1,004,800

Gross Profit % = 63.72%

ROS = 41.19%
ROA = 304.8/827.4 = 36.84%
ROE = 304.8/802.4 = 37.99%

Operating Efficiency = VG
ROS = VG
ROA = VG
ROE = VG

Quiz no. 48
Automatrix
Income Statement
For the year ended June 30, 2010
Net Sales (note 1) P1,243,500
Cost of Sales (note 2) 452,500
Gross Profit 791,000
Rent Income 3,700
Selling Expense (note 3) ( 106,000)
General Expense (note 4) ( 316,800)
Net Operating Income 371,900
Interest Expense ( 67,500)
Net Income P 304,400

Note 1: Sales P1,257,500

Sales Returns & Allow ( 14,000)
Net Sales P1,243,500

Note 2: Merchandise Inventory Beginning P137,500

Purchases 500,000
Freight In 5,000
Purchase Discount ( 15,000)
Merchandise Inventory End (175,000)
Cost of Sales P452,000

160
 Note 3: Salaries & Wages P 40,500
Depreciation 20,000
Store Rent 40,000
Store Supplies 5,500
Selling Expenses P 106,000

Note 4: Office Salaries 130,000

Taxes & License 77,500
Insurance 55,000
Depreciation 25,000
Office Rent 20,000
Bad Debts 2,800
Office Supplies 6,500
Total General Expenses P 316,800

Automatrix
Statement of Financial Position
June 30, 2010
Assets Liabilities & Owner’s Equity
Current Assets: P369,000 Current Liabilities
Cash (Note 1) Trade & Other Payables (Note 4) P 80,900
Accounts Receivable P38,000 Note Payable due 2012 140,000
Allowance 4,800 33,200 Total Liabilities 220,900
Merch. Invty. 175,000 Gates, Capital 734,800
Prepaid Expenses (Note 2) 60,000
Total 637,200
Plant, Property & Equipt. Note 3 318,500 ______
Total Assets P955,700 Total Liabilities & Owner’s Equity P955,700

Note 1 - Cash On Hand P 60,000

Cash In Bank 309,000
P369,000
Note 2 - Supplies P 6,000
Prepaid Insurance 54,000
P60,000
Note 3 - Office Furniture & Equipment P214,500
Accumulated Depreciation 49,000 P165,500
Store Furniture & Equipment P209,000
Accumulated Depreciation 56,000 153,000
P318,500
Note 4 - VAT Payable P54,500
Accounts Payable 26,400
P80,900

Automatrix
Capital Statement
For the year ended June 30, 2010
Gates, Capital July 1, 2009 P540,400
Additional Investment 250,000
Net Income 304,400
Drawings (110,000)
Gates, Capital, June 30, 2010 P734,800
Profitability Ratios
ROS (304,400/1,243,500) = 24.48%
ROA (304,400/623,050*) = 48.86%
ROE (304,400/512,600*) = 59.39%
*(290,400+955,700)/2 = 623,050
(290,400+734,800)/2 = 512,600

Quiz No 49
Date Accounts and Explanation F Debit Credit
Dec. 31 Closing Entries:
Sales 403,320
Sales Returns 4,050
Income & Expense S 399,270

161
Income & Expense S 355,474.50
Mdse Invty End 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 1,867
Supplies 1,050.00
Interest Expense 21,000
Mdse Invty Beg 51,000.00

Income and Expense S 44,095.50

Javier, Capital 44,095.50

Javier Capital 14,400

Javier Drawings 14,400

162
 Adjusted
Trial Balance Adjustments Trial Balance Income Statement Balance Sheet
Account Titles Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash 313,490 313,490 313,490
Accts Receivable 35,350 35,350 35,350
Allowance for Bad Debts 800 a) 967.50 1,767.50 1,767.50
Mdse Invty Jan 1 51,000 51,000 51,000
Supplies 2,650 c) 1,050.00 1,600 1,600
Office Furn & Fix 37,000 37,000 37,000
Accum Depn 4,300 b) 1,867 6,167 6,167
Accts Payable 15,710 15,710 15,710
Loans Payable 200,000 200,000 200,000
Javier Capital 163,500 163,500 163,500
Javier Drawing 14,400 14,400 14,400
Sales 403,320 403,320 403,320
Sales Returns 4,050 4,050 4,050
Purchases 190,600 190,600 190,600
Purch Returns 3,420 3,420 3,420
Delivery Expense 6,250 6,250 6,250
Rent Expense 70,020 70,020 70,020
Salaries 63,000 63,000 63,000
Office Expense 3,240 3,240 3,240
Totals 791,050 791,050
Bad Debts a) 967.50 967.50 967.50
Depreciation b) 1,867 1,867 1,867
Supplies Expense c) 1,050.00 1,050.00 1,050.00
Interest Expense d) 34,000 21,000 21,000
Interest Payable d) 21,000 21,000 21,000
Merchandise Invty Dec 31 50,400 50,400
24,884.50 24,884.50 804,550.83 804,550.83 413,044.50 457,140 452,240 397,810.83
Net Income 44,095.50 54,429.17
457,140 457,140 452,240 452,240

Arthur’s Trading

163
 Income Statement
For the year ended Dec 31, 2010

Sales P 403,320
Less Sales Returns 4,050
Net Sales P399,270

Cost of Sales
Mdse Invty Beg P51,000
Purchases 190,600
Purchase Returns ( 3,420)
Total Goods Available for Sale 238,180
Mdse Invty End 50,400 (187,780)
Gross Profit 211,490
Operating Expenses
Selling- Rent P52,515
Delivery 6,250
Salaries 42,000
Supplies 787.50 (101,552.50)

Administrative- Depreciation P 1,867.00

Bad Debts 967.50
Rent 17,685.00
Office 3,240.00
Supplies 262.50
Salaries 21,000 (45,022.00)
Operating Income 64,915.50
Interest Expense (21,000.00)
Net Income P 43,915.50

164
 Arthur’s Trading
Capital Statement
For the year ended Dec 31, 2010

Capital, Jan 1 P163,500.00

Net Income 44,095.50
Drawings ( 14,400.00)
Capital Dec 31 P203,529.17

Arthur’s Trading
Statement of Financial Position
Dec 31, 2010
ASSETS
Current Assets
Cash P313,490.00
Accts Receivable P35,350
Less Allowance 1,767.50 33,582.50
Merchandise Inventory 50,400.00
Supplies 1,600.00
Total P399,072.50
Fixed Assets:
Furniture & Fixtures P 37,000
Less Accumulated Depreciation 6,333.33
Total 30,666.67
Total Assets P429,739.17
TOTAL LIABILITIES & OWNER’S EQUITY
Current Liabilities
Accounts Payable P15,710.00
Interest Payable 21,000.00
Total P36,710.00
Loans Payable 200,000,00
Total Liabilities 236,710.00
Javier, Capital 193,195.50
Total Liabilities & Owner’s Equity P429,905.50

165
Quiz No 50
1. J 2. G 3. E 4. A 5. H
6. M 7. C 8. I 9. D 10. F
11. L 12. K 13. N 14. B
B.
1. Return On Sales = Net Income/Net Sales 2. Asset Turnover = Revenue/Average Total Assets
3. Ret On Assets = Net Income/Average Total 4. Receivable TO = Credit Sales/Average
Assets Receivables
5.Times Interest Earned = Operating 6. Equity Ratio = Owner’s Equity/Total Assets
Income/Interest
7. Gross Profit Ratio = Gross Profit/Net Sales 8. Ret On Equity = Net Income/Ave Owner’s
Equity
C.
1. Liquidity = Receivable Turnover
2. Profitability = Return on Sales, Return on Assets, Gross Profit Rate, Return on Equity
3. Solvency = Times Interest Earned, Equity Ratio
4. Quality Use of Assets = Asset Turnover, Receivable Turnover, Inventory Turnover

Quiz No. 51

a. Return on Sales=186.2/780,000= 23.87%

b. Return On Equity= 186.2/ (410.3 + 396 ) = 46.19%
2
c. Return On Assets= 186.2 / 672 + 735.8 ) = 26.45%
2
d. Current Ratio= 280.5 / 193.5 = 1.45:1
e. Recble Turnover= 780 / (106.2 +93.8) = 7.8 times
2
f. Average Collection = 360/7.8= 46.15 days
g. Inventory Turnover= 440/ (116.4 +64) = 4.88 times

h. Days in Inventory= 360/4.88= 73.77 days

i. Times Interest Earned= 196.12/9.92= 19.77 times
j. Asset Turnover= 780/ (735.8+672)= 1.11 times

166
 2
k. Debt Ratio= 325.5/735.8= 44%
l. Current Cash Debt Coverage= 41/193.5= .21:1
m. Cash Debt Coverage= 41/325.5= .13:1

Quiz No 52
A.
1. D 2. B 3. C 4. B 5. D 6. D
7. C 8. D 9. B 10. B 11. A 12 B

13. Current Ratio= 44.7/130.5= 34.25%

14. Acid Test= 19.5/130.5= 14.94%
15. 2006= Receivable TO= 4,100/515= 7.96 x Collection Period= 360/7.96= 45.23 days
2007= Receivable TO= 4,800/550= 8.73 x Collection Period= 360/8.73= 41.24 days
16. 2006= Inventory TO= 837 + 4661- 960= 4,538/905= 5.01 x Holding Period= 360/5.01= 71.86
2007= Inventory TO= 960 + 4640 – 1020= 4580/990= 4.63 x Holding Period= 360/4.63= 77.75
17. Asset TO= 13,181.2/ (5,721.44+6503) = 2.167
2
18. Profit Margin Ratio= 490.2/13,181.2= 3.72%

B.
1D 2. B 3. C 4. B 5. D
6. D 7. C 8. D 9. B

C. 6 + 200 – 50 = 156,000
D. 22,000-5,500-7,500= 9,000
E. 951.8 + 154.1- 206= 899.9
F. 168 + 1,134 – 277= 1,025
G. 75- 6.6-4.4= 64
300/150= 2 300-200 = 100 Free Cash Flow
H. 165+180-100= 245,000 without investment + 70,000 investment
= 315,000 owner’s capital end of 2009.

100,000 drawings-70,000 investment= 30,000 cash used for financing

Quiz No. 53

167
 Cash Flow Statement

Cash from operating activities

Net Income P35,500
Depreciation* 15,500
Increase in Accounts Payable 14,000
Gain from sale (1,500)
Increase in accounts receivable (24,000)
Decrease in Tax Payable (1,000)
Increase in merchandise inventory (7,000) P31,500
Cash from investing activities
Proceeds from Sale 10,000
Cash from financing activities
Payment of liabilities (6,000)
Cash Drawings of owner (27,000)
Investment of owner** 2,500 (30,500)
Increase in Cash 11,000
Cash balance Jan 1 20,000
Cash balance Dec 31 P31,000

Free Cash Flow 31,500-6,000-27,000 = (1,500)

Current Cash Debt Coverage Ratio = 31,500/ 1.067:1
(23+36/2) =
Cash Debt Coverage Ratio = 31,500 (63+56/2) = .3467:1

*Accum Depn 2009 24,000 ** Capital 2009 P52,000

Less accum depn for equipment sold ( 9,500) Net income for 2009 35,500
14,500 Cash drawings in 2009 (27,000)
Accum depn 2009 30,000 60,500
Depreciation provision 15,500 Capital end of 2009 63,000
Investment P 2,500

168
Quiz no.54
A. 1. F 2. T 3. T 4. F 5. F
6. F 7. F 8. T 9. F 10. T

B 1. C 2. B 3. A 4. C 5. D
6. B 7. B 8. A 9. D 10. B

Quiz no.55
A.
Balance per Bank P73,350
Deposit In Transit 4,158
Outstanding Check (7,731)
Adjusted balance per bank P69,777

Balance per Books P63,675

Add Proceeds from note- Principal P6,475
Interest 50 6,525

Less Bank Service Charge P 45

Customer’s NSF check 378 ( 423)
Adjusted balance per books P69,777

Cash In Bank 6,525

Notes Receivable 6,475
Interest Income 50

Service Charge 45
Accounts Receivable 378
Cash In Bank 423

B.
Balance per Bank P20,380
Add Deposit In Transit 1,570
Error in charging us for the check of Nutriban 7,000
Less Outstanding Check (9,977)
Adjusted balance per bank P18,973

169
Balance per Books P5,990
Add Proceeds from note- Principal P15,000
Interest 120 15,120

Error in recording company check as P 435

Should be 345 90
Less: Bank Service Charges ( 60)
Less: Customer’s NSF check (2,167)
Adjusted balance per books P18,973

Cash In Bank 15,120

Notes Receivable 15,000
Interest Income 120

Service Charge 60
Accounts Receivable 2,167
Cash In Bank 2,227

Cash In Bank 90
Accounts Payable 90

Quiz No 56
Date Particulars Debit Credit
Aug 31 Petty Cash Fund 1,000
Cash In Bank 1,000

Sept 5 Purchases 72
Supplies 384
Advances 160
Communication 80
Cash In Bank 696
Sept 6 Petty Cash Find 1,000
Cash In Bank 1,000
150
Sept 14 Freight Out

170
 Supplies 300
Perez, Drawings 500
Miscellaneous 200
Representation 500
Cash In Bank 1,650

PETTY CASH BOOK

Petty Cash Fund DISTRIBUTION OF PAYMENTS
Date Explanation PCV No. Receipt Payment Freight In Freight Out Supplies SUNDRY
Account Title Amount
Aug 31 PCF established 1,000
Sept 2 Employee 1 160 Advances 160
3 Post Office 2 80 80
4 Lopez 3 68 Transportation 68
4 Alemar’s 4 _________ 384 384
1,000 692 464 228
Balance _________ 308
Balance forwarded 308
5 Replenished 5 692
6 PCF increased 6 1,000
7 Ms Perez 7 500 Perez Drawing 500
8 Employees 8 200 Miscellaneous 200
10 Times 9 150 150
11 Max 10 500 Representation 500
12 Alemar’s 11 _________ 300 300
2,000 1,650 150 300 1,200
Balance _________ 350
Balance forwarded 350
14 Replenishment 12 1,650

171
 Quiz 57 VOUCHER REGISTER
Vouchers Purchas
Payment Payable es Salaries Sundry
Date Payee Explanation Vo Date Chk No. Credit Debit Account Debit
1/ 1 Drake 2/10,n/30 10 Jan 5 42303 22,400 Equipment
2 LBC Freight 11 Jan 2 42301 1,250 Freight
3 Matson Down payment 12 Jan 3 42302 3,000 6,000
Matson 2/10, n/30 13 cancelled 3,000
6 East 30 -day, 16% note 14 Jan 6 42304 20,267 NotesPayble 20,000
Int Expense 267
9 Print Ads Advertising 15 Jan 9 42305 3,000 Advertising 3,000
15 Employees Payroll 16 Jan 15 42306 11,728.52 12,000 Withholding (271.48)
Tax Pay*
17 Zenith 2/10,n/30 17 16,150 16,150
80,795.52 22,150 12,000 46645.50

Employee 1: 6,000-200-75-120= 5605/2=2802.50-2083=719.5 x 15%=107.93+104.17=212.10

Employee 2: 6,000-200-75-120=5605/2=2802.50-2417=385.5 x 10%=38.55+20.83= 59.38

CHECK REGISTER
Cash In Purchase Vouchers
Date Payee Chk. No. Vo. No. Bank Discount Payable
Credit Credit Debit
Jan 2 LBC 42301 111,250 1,250
3 Matson 2 123,000 3,000
5 Drake 3 10
21,952 21,952
6 East 4 14
20.267 20.267
9 Print Ads 5 163,000 3,000
15 Employees 6 16
11,728.52 11,728.52
61,197.52 61,197.52
GENERAL JOURNAL

Date Particulars F Debit Credit

Jan 5 Vouchers Payable 418
Equipment 418

12 Vouchers Payable 250

Purchase Returns 250

19 Vouchers Payable 250

Purchase Returns 250

24 Vouchers Payable 2,750

 Notes Payable 2,750

VOUCHERS PAYABLE LEDGER

Date Particulars F Debit Date Particulars F Credit

Jan 5 GJ 448 Jan 31 15,900 VR 80,793.02
12 GJ 250
19 GJ 250
24 GJ 2,750
31 CR 61,195.02

Zenith account (16,150-250)= P15,900 refer to voucher register and general journal for the return.

Quiz no. 58:

A.
1. Service 6. Direct cost
2. Cost of Goods Manufactured 7. Distribution cost
3. Work In Process Inventory 8. Direct Labor
4. Direct Materials 9. Administrative
5. Product Cost/Factory Cost 10. Periodic method

B. a. S f. A
b. A g. M
c. DM h. M
d. M i. A
e. DL j. A

C.
Raw Materials Used:
Raw Materials Inventory, beg. P 58,400
Add: Purchases 297,600
Raw Materials Available for Use 356,000
Less: Raw Materials, end 67,200 288,800
Direct Labor 184,200
Factory Overhead:
Depreciation Expense, Machinery 54,100
Supplies Expense 17,700
Insurance expense 10,700
Indirect labor expense 46,900
Supervisory Salaries, Factory 32,700
Property Tax Expense, Factory 16,500 178,600
Total Manufacturing Cost P651,600
Add: WIP Beg. 98,400
Less: WIP End ( 96,400)
Cost of Goods Sold P653,600
QUIZ No. 59
1) Materials Inventory, Jan. 1, 2010 P 596,950
Add: Materials Purchases 1,525,330
Total Materials Available for use P2,122,280
Less: Materials Inventory, March 31, 2010 514,030
Raw Materials Used P1,608,250

2) Raw Materials Used P1,608,250

Direct Labor 146,310
Manufacturing Expenses:
Depreciation - Plant & Equipt. P14,230
Equipt. Repairs Expense – Factory 1,290
Plant Supervisor’s Salaries 18,750
Insurance Expense -Plant & Equipment 1,040
Utilities Expense – Plant 3,420
Indirect Labor 15,000
Manufacturing Supplies Expense 3,760
Small Tools Expense 800 58,290
Total Mfg. Costs P1,812,850

3) Total Mfg. Costs P1,812,850

Add: Work In Process Inventory, Jan. 1, 2010 829,840
Total Work In Process 2,642,690
Less: Work In Process, Inventory March 31, 2010 815,560
Cost of Goods Manufactured P1,827,130 / 50,000
Unit Cost 36.54

5) Cost of Goods Manufactured P1,827,130

Add: Finished Goods Inventory, Jan. 1, 2010 675,010
Total Goods Available for Sale P2,502,140
Less: Finished Goods Inventory, March 31, 2010 702,840
Cost of Goods Sold (49,242 units were sold @ P36.54) P1,799,300

4) 36.54 x 2= Selling Price P 73.08

QUIZ 60
a) Materials Inventory, Jan. 1, 2010 P 268,000
Add; Materials Purchased 1,946, 700
Total Materials Available for Use P2,214,700
Less: Materials Inventory, March 31, 2007 167,000
Raw Materials Used P2,047,700
Direct Labor 2,125,800
Factory Overhead 764,000
Cost of Goods Manufactured P4,937,500
Units mftd (200 unsold+12,400 sold= total available 12,600-100 beg) 12,500
Unit cost P395

b) No of Finished Goods Sold 12,400

Add: Finished Goods Inventory, March 31 2010 200
Finished Goods Available for Sale 12,600
Less: Finished Goods Inventory, Jan. 1, 2010 100
 Number of Units Manufactured 12,500
Cost of Goods Manufactured P4,937,500
Divide by Units Manufactured 12,500
Unit Cost P395
c) Finished Goods Inventory, Jan. 1, 2010 (100) P43,000
Add: Cost of Goods Manufactured 4,937,500
Cost of Finished Goods Ava for sale P4,980,500
Less: Finished Goods Inventory, March31, 2010 (200 x 395) 79,000
Cost of Goods Sold P4,901,500

e) Sales (395 + 200% x 12,300) + (43,000 x 200%) P9,803,000

Less Cost of Goods Sold 4,901,500
Gross Profit P4,901,500
Less: Operating Expenses
Marketing Expense 516,000
Gen. & Admin. Exp. 461,000 977,000
Net Income P3,924,500
QUIZ 61
a. Journal Entries:
1) Raw Material Purchases 125,000
` Accounts Payable 125,000

2) Freight In 3,000
Cash 3,000

3) Factory Supplies 500

Cash 500

4) Direct Labor 25,000

Indirect Labor 8,000
Indirect Labor – Selling 10,000
Indirect Labor – Administrative 17,000
SSS Payable (P60,000 x 3%) 1,800
Med. Payable (P60,000 x 2% 1,200
HDMF 1,200
W/T Payable (P60,000 x 5%) 3,000
Cash 52,800

5) SS Premium Expense - Mfg. 1,650

SS Premium Expense – Selling 500
SS Premium Expense – Administrative 850
SS Premium Payable 3,000

MCR Premium Expense – Manufacturing 660

MCR Premium Expense – Selling 200
MCR Premium Expense – Administrative 340
MCR Premiums Payable 1,200

HDMF – Manufacturing 660

HDMF – Selling 200
 HDMF – Administrative 340
HDMF Payable 1,200
6) Factory Heat, Light & Power 15,000
Utility Expense 12,000
Prepaid Factory Insurance 5,000
Prepaid Rent 24,000
Machine Repairs 10,000
Cash 66,000

7) Accounts Receivable 300,000

Sales 300,000
8) Commission Expense 7,500
Cash 7,500
9) Adjusting entries:
Bad debts Expense 5,000
Allowance for Bad Debts 5,000

Depreciation – Machinery 8,000

Accumulated Depreciation - Machinery 8,000

Factory Insurance 2,000

Prepaid Factory Insurance 2,000

Factory Supplies Expense 2,000

Factory Supplies 2,000

Depreciation - Delivery Truck 3,000

Accumulated Depreciation - Delivery Truck 3,000

Rent-Manufacturing 10,000
Rent- Selling 6,000
Rent-Administrative 4,000
Prepaid Rent 20,000

Utility Expense-Manufacturing 6,000

Utility Expense- Selling 3,600
Utility Expense-Administrative 2,400
Utility Expense 12,000

Matis Corp.
Cost of Goods Sold Statement
for the year ended Dec. 31, 2010
Raw Materials, Jan. 1 P 12,000
Add: Raw Materials Purchases P125,000
Add: Freight In 3,000 128,000
Total Materials Available for Use P140,000
Less: Raw Materials, Dec. 31 10,000
Raw Materials Used P130,000
Direct Labor 25,000
Manufacturing Expenses:
 Factory Supplies Expense P 2,000
Indirect Labor 8,000
Factory Heat, Light & Power 15,000
Utility Expense 6,000
Rent Expense 10,000
Depreciation Expense – Machinery 8,000
SS Premium Expense 1,650
MCR Premium Expense 660
HDMF Premium Expense 660
Factory Insurance 2,000 53,970
Total Mfg. Cost 208,970
Add: Work In Process, Jan. 1 15,000
Total Work Placed In Process 223,970
Less: Work In Process, Dec. 31 12,000
Cost of Goods Manufactured 211,970
Add: Finished Goods Inventory, Jan. 1 20,000
Cost of Goods Available for Sale 231,970
Less: Finished Goods Inventory, Dec. 31 25,000
Cost of Goods Sold 206,970
Matis Corp.
Income Statement
For the year ended Dec. 31, 2010
Sales P300,000
Less: Cost of Goods Sold 206,970
Gross Profit P 93,030
Less: Operating Expenses:
Selling Expenses
Salaries P10,000
Utility Expense 3,600
Rent Expense 6,000
Commission Expense 7,500
SS Premium Expense 500
MCR Premium Expense 200
HDMF 200
EC Premium Expense 100
Depreciation - Delivery Truck 3,000 31,100
Administrative Expense
Salaries P17,000
Utility Expense 2,400
Rent Expense 4,000
SS Premium Expense 850
MCR Premium Expense 340
HDMF 340
EC Premium Expense 170
Bad Debts Expense 5,000 30,100 61,200
Net Income P31,830