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    Drill 2

    Uploaded by

    trexy jeane sumapig
    The document provides accounting information for Dolly Trading and Somer Merchandising for the year ended December 31, 2020. It includes statements of financial position, notes, and accounting details for assets, liabilities, and owner's equity for each company. The statements and notes were prepared based on the accounting information provided for each company.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Drill 2

    Uploaded by

    trexy jeane sumapig
    51 views6 pages
    The document provides accounting information for Dolly Trading and Somer Merchandising for the year ended December 31, 2020. It includes statements of financial position, notes, and accounting details for assets, liabilities, and owner's equity for each company. The statements and notes were prepared based on the accounting information provided for each company.

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    DRILL 2

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    The document provides accounting information for Dolly Trading and Somer Merchandising for the year ended December 31, 2020. It includes statements of financial position, notes, and accounting details for assets, liabilities, and owner's equity for each company. The statements and notes were prepared based on the accounting information provided for each company.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    51 views6 pages

    Drill 2

    Uploaded by

    trexy jeane sumapig
    The document provides accounting information for Dolly Trading and Somer Merchandising for the year ended December 31, 2020. It includes statements of financial position, notes, and accounting details for assets, liabilities, and owner's equity for each company. The statements and notes were prepared based on the accounting information provided for each company.

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    © All Rights Reserved
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    You are on page 1of 6

    Challenge yourself!

    1. Presented below are accounts of Dolly Trading for the year


    ended December 31, 2020. Prepare the statement of financial
    position. Prepare the supporting notes.

    Cash P17,500Accounts Receivable 6.000 Notes Receivable 5.000


    Merchandise Inventory 16.500 Prepaid Insurance 1.000 Office
    Supplies 500 Equipment 15.000 Accumulated Depreciation-Equipment
    4.800 Furniture & Fixture 12.000 Accumulated
    DepreciationFurniture & Fixture 4.500 Accounts Payable 10.000
    Utilities
    Payable 4.200 Dolly, Capital 50.000

    2. Presented below are accounts of Somer Merchandising for the


    year ended December 31, 2020. Prepare the statement of financial
    position. Prepare the supporting notes.

    Cash P814,400 Accounts receivable 141.400 Allowance for Bad Debts


    11.400 Notes Receivable 320.000 Accrued income 18.000 Merchandise
    Inventory 1.916.000 Prepaid Insurance 264.000 Prepaid rent 280.000
    Supplies 67.840 Land 680.000 Building 1.080.000 Accumulated
    Depreciation-Building 578.000 Equipment 826.000 Accumulated
    Depreciation-Equipment 345.000 Furniture & Fixture 20.000
    Accounts Payable 1.000.000 Notes Payable (5 years) 627.320 Accrued
    Expenses 80.000 Mortgage Payable 712.000
    Dolly Trading
    Statement of Financial Position
    For the Year Ended December 31, 2020

    Assets Notes
    Current Assets
    Cash P17,500
    Trade and Other Receivables 1 11,000
    Merchandise Inventory 16,500
    Prepaid Expenses 2 1,500
    Total Current Assets
    Non-Current Assets
    Property, Plant and Equipment 3 17,700
    Total Assets P64,200

    Liabilities
    Current Liabilities
    Trade and Other Payables 4 P14,200
    Total Liabilities
    Owner’s Equity
    Dolly, Capital 50,000
    Total Liabilities and Capital P64,200

    Note 1-Trade and Other Receivables


    Accounts Receivables P6,000
    Notes Receivables 5,000
    Total P11,000

    Notes 2-Prepaid Expenses


    Prepaid Insurance P1,000
    Office Supplies 500
    Total P1,500

    Notes 3-Property, Plant and Equipment


    Equipment P15,000
    Less: Accumulated Depreciation- 4,800 10,200
    Equipment
    Furniture and Fixtures 12,000
    Less: Accumulated Depreciation- 4,500 7,500
    Furniture and Fixtures
    Total 17,700
    Notes 4-Trade and Other Payables
    Accounts Payable P10,000
    Utilities Payable 4,200
    Total P14,200
    Somer Merchandising
    Statement of Financial Position
    For the Year Ended December 31, 2020

    Assets Notes
    Current Assets
    Cash P814,400
    Trade and Other Receivables 1 468,000
    Merchandise Inventory 1,916,000
    Prepaid Expenses 2 611,840
    Total Current Assets
    Non-Current Assets
    Property, Plant and Equipment 3 1,683,000
    Total Assets 5,493,240
    Liabilities
    Current Liabilities
    Trade and Other Payables 4 1,080,000
    Non-Current Liabilities
    Notes Payable 627,320
    Mortgage Payable 712,000
    Total Liabilities 2,419,320
    Owner’s Equity
    Somer, Capital 3,073,920
    Total Liabilities and Capital 5,493,240

    Note 1-Trade and Other Receivables


    Accounts Receivable P141,400
    Less: Allowance for Bad Debts 11,400 130,000
    Notes Receivable 320,000
    Accrued Income 18,000
    Total P468,000

    Note 2-Prepaid Expenses


    Prepaid Insurance P264,000
    Prepaid Rent 280,000
    Supplies 67,840
    Total P611,840
    Note 3-Property, Plant and Equipment
    Land P680,000
    Building 1,080,000
    Less: Accumulated Depreciation- 578,000 502,000
    Building
    Equipment 826,000
    Less: Accumulated Depreciation- 345,000 481,000
    Equipment
    Furniture and Fixtures 20,000
    Total 1,683,000

    Note 4-Trade and Other Payables


    Accounts Payable P1,000,000
    Accrued Expenses 80,000
    Total P1,080,000

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