QuickBooks

Application
AE 21 – MIDTERM PROJECT
❖ On March 30, 2023, a group of
friends consists of Romeo
Asuncion, Rowena Alcaraz,
Rosendo Alagao and Rosselle
Abadilla, decided to form a
general merchandise (general
product based) business to be
owned by the four of them. They
all agreed to name the company
as ____________ Trading Company.
❖They agreed to pull in the
following capital for the
business:
1. Romeo Asuncion -
₱100,000 cash and his
vehicle which he bought 3
years ago for ₱600,000
and has a present market
value of ₱350,000.
2. Rowena Alcaraz - ₱370,000
cash, her existing 2
computer equipment
valuing a total amount of
₱80,000.
3. Rosendo Alagao -
₱250,000 cash and his
wide connections in the
industry.
4. Roselle Abadilla – her studio unit which
will be used as their office. She acquired
this property 2 years ago and had paid
₱490,000. The remaining mortgage
payable associated to this property
amounted to ₱200,000. As per appraisal
the current market value of this property
is only ₱650,000. All the partners agreed
to accept the property at its market value
and assume the liability which they will
pay directly to the Al Bahar Financing
company after all legalities are done.
❖ The partners also agreed on the
following:
1. Any profit or loss will be divided equally.
2. All of them will contribute their skills and
effort for the success of the business.
3. The partners will have the following
positions in the business:
• Romeo Asuncion – General Manager
• Rowena Alcaraz – Operation Manager
• Rosendo Alagao – Marketing Manager
• Roselle Abadilla – Finance and Admin
Manager.
The partners immediately proceeded for the
formation of the business. The following
transactions then occurred in the first month of
operation:
April 1 - The partners transferred all the assets
that they pledged to invest in the partnership.
They immediately opened a Checking Account
in BPI and deposited all their cash investments.
April 2 – Paid Atty. Helen Reyes the amount
₱12,000 for the business license and other
registration fees.
April 3 – Purchased office equipment from
Officemart LLC, ₱25,000 Cash.
April 4 – ₱120,000 worth of merchandise was
purchased from Triple 7 Corporation, terms
2/10, n/30.
April 5 – Received the bill from Lao Engineering
for office renovation amounting to ₱150,000 and
they took it up as Office Improvements to be
depreciated using straight line method for a
period of 5 years. Net/30
April 6 – Paid brochure printing and posters
amounting to ₱7,750, Seven Lakes Printing
Press
April 7 – Hired the following employees:
✓ Janice De Oro - Administrative Assistant
✓ Luisa San Jose – Cashier
✓ Juana Dela Vega – Accounting Staff
✓ Lucho Laco – Sales Staff
✓ Marino Velasco – Sales Staff
✓ Pancho Marco – Inventory Clerk
April 7 – Purchased merchandise on account from Al
Hamra Trading Company, ₱330,000, terms 3/10 n/30
April 8 - Purchased some merchandise for cash from
Lulu Hypermarket amounting to ₱27,000.
April 9 - Received a Sales Order from Green
Orchard Farm for Product A1, 2,000 pcs @ ₱250 each.
April 10 – Cash Sales to Dates and Prunes
Company, 180 pcs of Product A2 for a total
amount of ₱44,100.
April 11– Sent the order of Green Orchard Farm.
Terms 2/10 n/30
April 12 – Dates and Prunes Company returned
5 defective products and immediately
refunded the cash.
April 13 – Sales on Account to Black and Berry
Greeneries amounting to ₱120,000 for 480 pcs of
Product A3. Terms 2/15 n/30
April 14 – Paid Triple 7 corporation for the total
amount purchased on April 4.
April 15 – Paid 3 months advance rent to Suncity
Realties for a warehouse near the office,
commencing on this day, ₱60,000.
April 16 - Cash Sales to Fresh and Fairies
Plantation, Product A2 , 410 pcs. ₱102,500.
April 17 – Made another sales to Dates and
Prunes Company for Product A4, 1,000 pcs @ ₱96
per unit. Terms 3/10, n/30.
April 18 – Received Meralco Bill for the month
₱2,560 due on April 28, 2023.
April 19 – Received Telephone and Internet bill
from PLDT ₱1,850 due on Apr. 29, 2023.
April 20 – Received full payment from Green
Orchard Farm.
April 21 – Paid in full the mortgage payable
associated with the Office Unit.
April 22 – paid a one year fire insurance policy
commencing on 16-April-2023 to Perla Insurance
Company, ₱24,000
April 27 – Collected the amount due from Dates
and Prunes net of discount.
April 28 – Received full payment from Black and
Berry.
April 28 – Paid Meralco and PLDT Bills.
 April 30 – Paid the payroll as follows:
Total
Monthly Salary Salary April 7-30 Pag-ibig PhilHealth SSS Deductions Net Pay
Janice de Oro 10,000.00 8,000.00 160.00 140.00 360.00 660.00 7,340.00
Luisa San Jose 12,000.00 9,600.00 192.00 168.00 427.50 787.50 8,812.50
Juana Dela Vega 12,500.00 10,000.00 200.00 175.00 450.00 825.00 9,175.00
Lucho Laco 13,000.00 10,400.00 208.00 182.00 472.50 862.50 9,537.50
Marino Velasco 13,000.00 10,400.00 208.00 182.00 472.50 862.50 9,537.50
Pancho Marco 11,000.00 8,800.00 176.00 154.00 405.00 735.00 8,065.00
71,500.00 57,200.00 1,144.00 1,001.00 2,587.50 4,732.50 52,467.50

April 30 – Employer’s other payroll expenses were as

follow:
Pag-ibig Philhealth SSS Total
Janice de Oro 160.00 140.00 770.00 1,070.00
Luisa San Jose 192.00 168.00 912.50 1,272.50
Juana Dela Vega 200.00 175.00 960.00 1,335.00
Lucho Laco 208.00 182.00 1,107.50 1,497.50
Marino Velasco 208.00 182.00 1,107.50 1,497.50
Pancho Marco 176.00 154.00 865.00 1,195.00
1,144.00 1,001.00 5,722.50 7,867.50
Additional Information for month end adjustment:
➢ Depreciation policy:
• Straight line method of depreciation will be used with
no salvage value.
• All depreciable fixed assets except Office Unit
(Building) will be depreciated over an estimated
useful life of 5 years.
• Office Unit (Building) will be depreciated over a life of
20 years.
• Fixed assets acquired before 15th of the month will be
charged a full month depreciation on the month of
acquisition.
• Fixed assets acquired after 15th of the month will be
charged ½ month depreciation on the month of
acquisition.
➢ Ending merchandise inventory is assumed to be zero.
Required:
1. Record all the above transactions in Quickbooks.
2. Prepare all the adjusting entries necessary at month
end,April 30, 2023.
3. Export the following Reports in Excel:
a. Balance Sheet as of April 30
b. Profit and Loss Statement for the month ended April
30, 2023.
c. Ledger for the period April 1 to 30 of the following
accounts: Cash in Bank BPI, Accounts Receivable,
Sales, Purchases.