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2.0assessment Exam Problem 2

The document provides information for two accounting problems. Problem 2 details transactions for Andrik Trading Co. throughout June 2017 including purchases, sales, returns, expenses paid, and inventory. Requirements include preparing journal entries, financial statements, and adjusting entries. Problem 3 lists 10 adjusting transactions at December 31, 2017 including supplies inventory, prepaid insurance, notes payable, vehicle depreciation, rent expense, equipment depreciation, accrued salaries, property taxes, and estimated uncollectible accounts.

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Joe Honey Cañas Carbajosa
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229 views3 pages

2.0assessment Exam Problem 2

The document provides information for two accounting problems. Problem 2 details transactions for Andrik Trading Co. throughout June 2017 including purchases, sales, returns, expenses paid, and inventory. Requirements include preparing journal entries, financial statements, and adjusting entries. Problem 3 lists 10 adjusting transactions at December 31, 2017 including supplies inventory, prepaid insurance, notes payable, vehicle depreciation, rent expense, equipment depreciation, accrued salaries, property taxes, and estimated uncollectible accounts.

Uploaded by

Joe Honey Cañas Carbajosa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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SAINT COLUMBAN COLLEGE

College of Business Education


2nd Semester S.Y. 2021-2022

BOKKEEPING TRAINING ASSESSMENT

Name: ____________________________ Section: ____________ Date: ________________

PROBLEM 2 (PERPERTUAL INVENTORY SYSTEM)


Andrik Cruz opened a merchandising business with a trade name, Andrik
Trading Co. Operations began on June 1, 2017 and the following transactions were
completed during the month:

June 1 - Withdrew P500,000 from a personal savings account and used it to open a
new bank account in the name of Andrik Trading Co.
1 - Invested the following assets:
Furniture and Fixtures P400,000
Supplies 50,000
1 - Acquired equipment costing P500,000. A payment of P200,000 in cash was
made and a 12%-note was issued for the remainder, payable in six equal
monthly installments plus interest on the outstanding balance.
3 - Cash purchases, P150,000.
4 - Some of the goods purchased for P14,000 on June 3rd are returned to the
supplier for being defective. The latter refunds the corresponding
amount.
5 - Cash Sales, P240,000. Cost of goods sold on cash sales is 60% on sales
price.
6 - A customer of June 5th returns some of the items bought for P20,000. This
amount is refunded to him.
7 - Goods bought from WID Corp for P100,000. Terms: P20,000 cash; balance on
account, terms, 4/10, n/30.
8 - Pays the freight bill for the sale of merchandise on June 5th, P2,000.
9 - Paid rent for the month, P7,150.
10 - Pays the freight bill for the purchases of June 7th, P3,000.
11 - The light and water bills are paid, P1,000.
12 - Paid advertising for the month, P3,000.
14 - Goods costing P70,000 are sold on account to Content Trading Co. for
P120,000. Term: 3/20, n/30.
15 - The payroll for June 1-15 is paid, P52,000.
17 - The balance of the account with WID Corp is paid in full.
18 - Content Trading Co. pays its account in full.
18 - Goods costing P20,000 are sold on account to Rio Mazo for P50,000, Term:
2/10, n/30.
21 - Rio Mazo complains that some of the goods delivered to her were
defective. Accordingly, account is reduced by P10,000.
22 - Purchase goods costing P200,000 on account from ABC Corp. Term: 3/10,
n/30.
24 - Some of the goods bought on June 22nd are defective. Upon informing the
supplier of such defects, the latter reduces the amount due to him by
P40,000.
28 - Purchases on account, P150,000.
28 - Rio Mazo pays her account.
30 - Goods costing P60,000 are sold on account to Gloria Garcia for P110,000.
30 - Paid the account in with ABC Corp in full.
30 - Paid the first installment of the note plus the interest.
30 - Paid the following expenses:
Taxes and Licenses -------------------- P 4,000

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Salaries ----------------------------- 52,000
Miscellaneous ----------------------- 3,000
Additional Information on January 31, 2018.
 Merchandise Inventory, per physical count P 263,000

Requirements:
1. Prepare journal entries using a 2-column general journal using Perpetual
Inventory System.
2. Post the journal entries in the General Ledger.
3. Prepare a Trial Balance
4. Prepare the following Financial Statements:
 Income Statement
 Statement of Financial Position (Balance Sheet)
 Statement of Changes in Owner’s Equity
 Statement of Cash Flows
5. Prepare closing entries in the General Journal.
6. Prepare Post-Closing Trial Balance.

PROBLEM 3 – ADJUSTING ENTRIES


Instruction: Assuming a calendar year accounting period, prepare adjusting entries
on the following independent transactions on December 31, 2017.

1. The Supplies Inventory account showed a beginning balance of P21,740. Purchases


during the year were P45,260. The ending inventory revealed supplies on hand of
P13,970.
2. Paid P24,000 for a 1-year fire insurance policy to commence on September 1. The
amount of premium paid was debited to Prepaid Insurance.
3. Borrowed P100,000 by issuing a 1-year note with 7% annual interest to Century
Savings Bank on October 1, 2017.
4. Paid P160,000 cash to purchase a delivery van on January 1. The van was
expected to have a 3-year life and a P10,000 salvage value. Depreciation is
computed on a straight-line basis.
5. Paid P78,000 cash in advance on September 1, 2017 for a 1-year lease on office
space. The amount paid was debited to Rent Expense.
6. Acquired Office Equipment costing P352,800 on April 1, 2017. The equipment is
expected to last 5 years after which it will be worthless.
7. Assume that Dec. 31 is a Friday and that the company pays its employees a total
of P87,500 on Saturday.
8. In December2017, a real property tax assessment for P16,000 on land owned
during 2017 was received from the city. The taxes, which are unpaid and
unrecorded, are already due but the company intends to pay them on February
2018.
9. Accounts Receivable Balance at the end of the year is P500,000. Estimated
Uncollectible Accounts had a balance of P10,000 before adjustment. The account
should be brought-up to 5% of the outstanding receivable account.
10. Using the same information in Item #9 but instead, aging of accounts
receivable is used to estimate the uncollectible account as follows:
Age of Receivable Outstanding Probability of
Balance Collectability
1-60 days P 200,000 99%
61-120 days 150,000 98%
121 – 180 days 90,000 97%
180 days and over 60,000 95%
Total P 500,000
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