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2021 FAR Straight Problem - Hyc2

Mr. Jose Calves operates a realty office. His accountant prepared an unadjusted trial balance as of December 31, 2020 showing assets of $544,450, liabilities of $544,450. Additional information is provided regarding adjusting entries needed for supplies used, prepaid insurance, depreciation on equipment, rent payable, accrued fees earned and unearned fees. The required tasks include preparing adjusting entries, a 10-column worksheet, financial statements and ratios, closing entries, a post-closing trial balance and reversing entries.

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Mariecris Batas
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260 views2 pages

2021 FAR Straight Problem - Hyc2

Mr. Jose Calves operates a realty office. His accountant prepared an unadjusted trial balance as of December 31, 2020 showing assets of $544,450, liabilities of $544,450. Additional information is provided regarding adjusting entries needed for supplies used, prepaid insurance, depreciation on equipment, rent payable, accrued fees earned and unearned fees. The required tasks include preparing adjusting entries, a 10-column worksheet, financial statements and ratios, closing entries, a post-closing trial balance and reversing entries.

Uploaded by

Mariecris Batas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Mr. Jose Calves operates a realty office in its third year.

His accountant prepared the following unadjusted


trial balance as of December 31, 2020:

Jose Calves Realty


Trial Balance
December 31, 2020

Code Account Title Debit Credit


100 Cash P30,250.00
101 Accounts Receivable 50,000.00
102 Notes Receivable 20,000.00
103 Accrued Interest Income 0.00
104 Office Supplies 0.00
105 Prepaid Insurance 0.00
106 Office Equipment 91,600.00
107 Accumulated Depreciation P18,320.00
200 Accounts Payable 9,250.00
201 Accrued Expenses 0.00
202 Unearned Fees 12,500.00
300 Jose Calves, Capital 64,880.00
301 Jose Calves, Drawing 40,400.00
400 Fees Earned 439,500.00
500 Salary Expense 215,500.00
501 Rent Expense 55,000.00
502 Utilities Expense 16,500.00
503 Insurance Expense 7,200.00
504 Supplies Expense 5,400.00
505 Depreciation Expense 0.00
506 Miscellaneous Expense 12,600.00
401 Interest Income 0.00
1000 Income summary 0.00
Totals P544,450.00 P544,450.00

The data needed to determine the year-end adjustments are as follows:


1. Office supplies used during the year was P4,153.
2. One-year insurance premium was paid on April 1 of the current year.
3. Office equipment has a useful life of 10 years without salvage value.
4. Equal monthly rental for December was due but not yet paid.
5. Accrued fees earned but not yet collected, P13,218.
6. Unpaid salaries and wages on December 31 was P4,400.
7. Unearned fees as at December 31 was P5,674.
8. The 60-day, 12% Note Receivable will be accrued starting December 1.
Required:
1. Prepare the adjusting entries in 2 column worksheet. (16 pts)
2. Prepare the 10-column worksheet. (40 pts)
3. Prepare the Statement of Financial Performance (10 pts), Statement of Financial Position (15 pts),
and Statement of Changes in Owner’s Equity (5 pts).
4. Compute for the following:
a. Current Ratio (2 pts)
b. Acid Test Ratio (2 pts)
c. Rate of Return on Total Assets (2 pts)
d. Rate of Return on Equity (2 pts)
5. Prepare the Closing entries (4 pts)
6. Prepare the Post Closing Trial Balance. (6 pts)
7. Prepare the reversing entries. (12 pts)

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