Scribd
Upload
42 views1 page

EC 1 - Acctg Cycle Part 2 Sample Problems

1. The document provides sample accounting problems for merchandising businesses, including journalizing transactions under periodic and perpetual inventory systems, completing income statements, and calculating financial statement balances. 2. Problem 1 requires preparing journal entries for a tire shop's transactions in June 2022 under periodic and perpetual inventory systems. 3. Problem 2 provides partial income statements for 5 companies and asks to fill in missing values. 4. Problem 3 gives financial information for a general merchandise store and asks to calculate gross profit, ending inventory, net income, ending capital, total assets, and cash.

Uploaded by

Chelay Escarez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
42 views1 page

EC 1 - Acctg Cycle Part 2 Sample Problems

1. The document provides sample accounting problems for merchandising businesses, including journalizing transactions under periodic and perpetual inventory systems, completing income statements, and calculating financial statement balances. 2. Problem 1 requires preparing journal entries for a tire shop's transactions in June 2022 under periodic and perpetual inventory systems. 3. Problem 2 provides partial income statements for 5 companies and asks to fill in missing values. 4. Problem 3 gives financial information for a general merchandise store and asks to calculate gross profit, ending inventory, net income, ending capital, total assets, and cash.

Uploaded by

Chelay Escarez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Accounting for Merchandising Businesses

Sample Problems:

Problem 1: Journalizing Transactions


Pozorubio Tires entered into the following transactions during the month of June 2022, its first month of operations:
 June 1 – invested cash of P500,000 to the business
 June 2 – paid rentals for store and office building, P10,000
 June 4 – purchased 1,000 tires costing P350 each, on account with payment terms of 2/10, n/30.
 June 5 – paid freight costs of P2,000 for June 4 purchase
 June 6 – returned 50 defective tires regarding June 4 purchase and received a credit memo from the supplier
 June 12 – sold 400 tires at a price of P800 per tire, on account with payment terms of 2/10, n/30.
 June 13 – paid freight costs for June 12 sale, P200
 June 14 – paid the supplier regarding June 2 purchase transaction.
 June 18 – sold 100 tires at a price of P780 on cash
 June 19 – purchased additional 200 tires at P350 each on cash.
 June 22 – received cash from customers regarding June 12 sale.
 June 27 – sold another 150 tires to Lingayen Motors at a price of P800 each, terms of 2/10, n/30.
 June 28 – paid salaries, P10,000
 June 29 – paid utilities, P12,000
 June 30 – withdrew cash for personal use, P5,000

Required: Prepare journal entries under:


 Periodic Inventory system
 Perpetual Inventory system (assume First-in-First-out)

Problem 2: Income Statement of Merchandising Businesses


The partial income statements of five different companies are as follows (all amounts are in PHP):
Company A Company B Company C Company D Company E
Net sales ? ? 250,000 290,000 400,000
Beginning ? 50,000 70,000 ? 120,000
inventory
Net cost of 80,000 ? ? 60,000 390,000
purchases
Goods available 110,000 160,000 ? ? ?
for sale
Ending inventory 40,000 ? 30,000 70,000 ?
Cost of goods sold ? 140,000 230,000 ? 380,000
Gross profit 50,000 40,000 ? 160,000 ?

Required: Supply the missing amounts.

Problem 3: Financial Statement of Merchandising Business - Comprehensive


The following information shown below were obtained on Dizon General Merchandise's financial statements for the year 2019:

Gross sales P1,330,000


Sales discounts, returns and allowances 30,000
Cost of sales 60% of net sales
Marketing expenses 120,000
Delivery expenses 10,000
Gross purchases 700,000
Purchase discounts, returns and allowances 10,000
Beginning inventory 200,000
Freight in 2,000
Ending inventory ?
Office and other expenses 100,000

In addition, the following balance sheet accounts were obtained in the company’s books:
Beginning capital P10,000
Drawings 1,000
Total liabilities 100,000
Cash ?
Trade and other receivables 100,000
Property, plant and equipment 150,000

Required: Calculate the following balances:


1. Gross profit
2. Ending inventory
3. Net income
4. Ending capital
5. Total assets
6. Cash

You might also like