Accounting 2
Accounting 2
April 2 Purchased merchandise for P50,000. Mansan purchased on account, 2/10, n/30, FOB destination
3 Mansan sold merchandise to Jagnaan for P35,000, 2/10, n/30 FOB shipping point
5 Mansan sold merchandise to Jagnaan, P710,000, FOB shipping point, 2/10, n/30
7 Mansan bought merchandise for P210,000, 2/10, n/30, FOB shipping point
8 Jagnaan returned merchandise to Mansan worth P12,000 fro m the April 4 sale.
18 Mansan sold merchandise to Jagnaan P30,000 2/10, n/30, FOB shipping point,Trade discount 20%
23 Mansan received payment from Jagnaan for the amount due from the April 18 transaction
Additional Information:
Required:
2 Purchased P24,000 of merchandise on account, FOB shipping point, terms 2/15, n/30. Trade
discount is 20%, 10% and 5%
6 Sold merchandise on account to Qulna Company, P15,000 FOB destination terms 1/10, n/eom
13 Sold 200 units of merchandise on account to Lokoe-lokoe Co. P100 each FOB destination , 1/10, n/30
14 Lokoe-lokoe Company returned ¼ of the merchandise purchased on account on7/13 from Helwa Co.
16 Qulna Company paid Helwa Co. for purchase of July 6 less discount
17 Lokoe-lokoe Co. paid Helwa Co. for purchased of July 13, less returns and discounts.
19 Sold 150 units of merchandise on account to Hanna Co. P100 each, FOB destination, terms 2/10,n/30.
24 Hanna Co. paid Helwa Co. for purchased of July 19, less discount
25 Hanna Co. found found out that 1/3 of the units purchased were defective returned items to Helwa Co.
and asked for cash refund
Add’l information:
Physical count was made at the end and Helwa Co. found P30,000 worth of inventory.
Operating expenses totalled P20,000 (Freight- out not included)
On January 15, 2018, Marikuno del Loca Forest Products purchased and sold a large amount of
finished goodsfor the business. The following table summarizes selected transaction data:
FOB Terms Freight cost Cash Paid/ Recorded Sale of Cash Discount
Received Purchases
Shipping Point 1,000
Seller 2,000
Buyer 3,000
Destination 4,000
Destination 5,000
Oct. 7 Sold merchandise on credit to Lacson Co., terms 2/10, n/30, FOB shipping point, P30,000
8 Purchased merchandise from Orcajada Co., terms n/30, FOB shipping point, P60,000
9 Paid Mendoza Co. for shipping charges on merchandise purchased on Oct. 8, P2,540
10 Purchased merchandise on cash from Ortiz Co., FOB Seller. Freight paid P6,000
13 Purchased office supplies on credit from Isagan Co., terms n/30, FOB shipping point,
P24,000
14 Sold merchandise on account to Pabelico Co., terms n/20, FOB shipping point, P24,000
21 Paid Orcajada Co. the balance from the transaction on Oct. 8 &14.
Part ll.
PROBLEM 1
ABM12-5P Company is owned by Mr. Mendoza a single proprietor. The following were the results of the operation
of the year ended December 31 2017
Salaries Expense P50,000 Cost of sales P75,000
Compute the following assuming the income tax rate is 30% of net income
PROBLEM 2
ABM12-2P Company is engaged in the manufacturing of super duper elastic rubber that can kill germs and rats.
The company provided the following balances at the end of the year:
December 21 January 1
Raw Materials 100,000 150,000
Work in Process 200,000 250,000
Finished Goods 300,000 450,000
ABM12-2P Company provided the following information for its operation for the current year.
Net Purchases P100,000 Gross Sales P300,000
Salaries Expense 30,000 Net Income (12.)??
Freight In 10,000 Freight Out 15,000
Advertising Expense 30,000 Gross Purchases 120,000
Sales Return & Allowances 50,000 Sales Discount (13.)??
Net Sales 230,000Purchase Discount 10,000
Purchase Return & Allowances (10.)?? Beginning Inventory 20,000
Ending Inventory 35,000 Cost of Good Sold (14.)??
Gross Profit (11.)?? Utilities Expense 10,000
PROBLEM 4
The Accounting Honors’ Class Batch 2012 Company ask for your help to determine its performance for
the year-ended 2016 and 2017. The following information are provided:
PROBLEM 5
ABM12-4P Company provided the following balances and transaction of its capital for the year-ended 2016 to
2018. Determine the missing amount.
Cash Equivalents
The above treasury bills are acquired by the entity for the year December 31, 2018
Receivables
Prepaid Expenses
A. Prepaid insurance acquired on June 30, 2018 worth P 120,000 good for 2 years.
B. Supplies at the beginning is P 50 000 during the year, the company purchased additional P 40,000
1) 10% is unused at year-end
2) 80% is used at year-end
Acquisition date January 1, 2018 June 31, 2015 July 31, 2016 February 1, 2018
Intangibles
Patent Trademark
Payables
1) Supplier A P 20,000
B 30,000
C (40,000)
2) The following are the notes payable of the company:
Accrued Expense
1) Employees are paid every Friday for a five-day work week ending on the prior Friday. Salaries amount to P
240,000 per week. Assume that the accounting period ends on a Wednesday
2) The following billing statements for the month of December:
PROBLEM 1
Albelda Company provided the following balances as of December 31, 2017
BPI – Current Account P 100,000 NSF Check from customer P 15,000
PNB – Savings Account 200,000 Petty Cash Fund 25,000
Traveler’s Check 20,000 Post-dated check 8,000
Time Deposit 85,000 Sinking Fund 4,000
Treasury Bills-120 Days 88,000 Bills and Coins 80,000
PROBLEM 2
Alcaraz Company opened a manufacturing plant on Jan. 1, 2017. As of the year-end the following information are
provided:
The finished goods include goods from Anapi Company, a consignor, amounting to P 20,000.
Puno Company, a consignor, exclude goods amounting to P 10,000 from the count.
PROBLEM 4
The following balances of Caringal Company are presented:
PROBLEM 5
The ABM12-13P Company is owned and managed by Mr. Mendoza. The following information are
provided:
Finished Goods include goods from a consignor worth P 20,000. Puno Company a consignor of our company, Cruz
Company, exclude goods amounting to P 10,000 from the count
C. a) On May 31 of current year, company paid P 56,000 for two years of insurance
b) Four days’ salaries of three employees are still unpaid at Dec 31. Salaries are P 10,000 each for a five-
day work week.
c) One of the company’s customers made an advance payment of P 240,000 for a 1 year contract. The
payment was made Dec. 1 of last year.
d) An investment of P 400,000 on a bond certificate was made on Sept. 30 of current year and pays 4%
annual interest and matures after 1 year.
e) Equipment costing P 588,000 with scrap value of P 80,000 and useful life of 5 years was acquired
beginning of last year.
2018 2019
PROBLEM 4
THE FOLLOWING INFORMATION ARE PROVIDED BY PADILLA COMPANY:
CASH P 210,000 MISCELLANEOUS EXPENSE P 80,000
UNEARNED REVENUE 120,000 SUPPLIES ON HAND 70,000
ACCOUNTS RECEIVABLE 320,000 PREPAID INSURANCE 160,000
ACCOUNTS PAYABLE 350,000 NOTES PAYABLE 2-YRS 230,000
INVENTORY 400,000 EQUIPMENT 450,000
ACCUM. DEPRECIATION 150,000 TRADEMARKS 150,000
NOTES RECEIVABLE 100,000 ALLOW FOR BAD DEBTS 120,000
SALARIES PAYABLE 300,000 PADILLA, CAPITAL ??
DETERMINE THE AMOUNT OF THE FOLLOWING ITEMS:
1. CURRENT ASSETS 5. NON-CURRENT LIABILITIES
2. NON-CURRENT ASSETS 6. TOTAL LIABILITIES
3. TOTAL ASSETS 7. PADILLA, CAPITAL
4. CURRENT LIABILITIES
PROBLEM 5
ABM12-3P COMPANY
STATEMENT OF COMPREHENSIVE INCOME
1. The following are various cash and other information of the Nakakainis Company for 2017:
a. Payment of interest, P 82,000
b. Proceeds from sale of land, P 79,000
c. Payment of dividends, P 121,000
d. Depreciation expense, P 24,000
e. Collections from customers, P 983,000
f. Payment of income taxes, P 154,000
g. Proceeds from issuance of ordinary share capital, P 189,000
h. Payments to suppliers and employees, P 675,000
i. Increase of inventories, P 46,000
Required: Prepare the operating activities section of Nakakainis Company’s 2017 Statement of Cash Flows using
the direct method.
2. The Always Absent Company reported the condensed profit or loss for 2016.
Sales P 1,000,000
Less: Cost of Goods Sold 580,000
___________
Gross Profit P 420,000
Less: Operating Expenses
Depreciation Expense P 80,000
Salaries Expense 120,000 200,000
Net income P 220,000
During 2016, the following changes occurred in the company’s current assets and current liabilities:
Increase in Cash P 37,000
Decrease in Accounts Receivables 50,000
Increase in Inventories 89,000
Decrease in Accounts Payable 46,000
Increase in Salaries Payable 24,000
Required: Prepare the operating activities section of the Always Absent Company for the year 2016 using a.)
indirect method and b.) direct method
3. Late Lagi’s Company’s transactions for the year ended December 31, 2016 included the following:
Purchased real estate for P 550,000 cash which was borrowed from a bank
Sold investment securities for P 500,000
Paid dividends of P 600,000
Issued 500 ordinary shares for P 250,000 cash
Purchased machinery and equipment for P 125,000
Paid P 450,000 toward a bank loan
Required: Determine the net cash used in investing activities
Determine the net cash used in financing activities
4. The following was taken from the 2016 financial statements of Pasaway Company:
Accounts Receivable January 1: P 216,000 December 31: P 304,000
Sales, all on credit: P 4,380,000
Bad debts Expense: P 10,000
Required: How much is the amount of cash collected from customers during 2016?
PROBLEM 1
ABM 12-2P Enterprises provided the following information for the year-ended December 31, 2018
Cash Paid to Supplier P 1,530,000
Interest Paid 55,000
Cash Receipt from the Disposal of Equipment 456,000
Additional Investment from Owner 250,000
Cash Receipt from Non-Trade Long-Term Borrowings 355,000
Cash Paid for the Acquisition of Building 650,000
Cash Withdrawals made by Owner 60,000
Cash Payment to Employees 120,000
Cash Paid to Utilities Companies 85,000
Cash Received from Customers 2,450,000
Cash Balance, Beginning 270,000
Requirements:
1. Net Cash Provided by Operating Activities 4. Net Increase/ Decrease in Cash
2. Net Cash Provided by Investing Activities 5. Cash Balance Ending
3. Net Cash Provided by Financing Activities
PROBLEM 2
ABM 12-6P Company provided the following information for the current year:
Cash Paid to Supplier P 500,000
Utilities Expense Paid 50,000
Cash Paid to Employees 150,000
Depreciation Expense 30,000
Accounts Receivable, Beginning 100,000
Accounts Receivable, Ending 200,000
Total Sales 1,750,000
Cash Sales 850,000
Requirements:
1. Credit Sales 3. Net Cash Provided by Operating Activities
2. Cash Collected from Customers
PROBLEM 3
ABM 12 – 4P Company provided the following information for the current year:
Cash Paid to Supplier P 500,000
Utilities Expense Paid 50,000
Cash Paid to Employees 150,000
Depreciation Expense 30,000
Accounts Receivable, Beginning 100,000
Accounts Receivable, Ending 200,000
Gross Profit 550,000
Gross Profit Ratio 25%
Cash Sales 850,000
Compute the following (1) Credit Sales, (2) Cash Collected from Customers, (3) Net Cash Provided by Operating
Activities. Assuming:
1. Gross Profit is based on Sales 2. Gross Profit is Based on Cost of Goods Sold
PROBLEM 4
ABM 12-1P Provided the following information:
Cash Paid to Supplier P 500,000
Utilities Expense Paid 50,000
Cash Paid to Employees 150,000
Depreciation Expense 30,000
Accounts Receivable, Beginning 100,000
Accounts Receivable, Ending 200,000
Total Purchase 1,750,000
Credit Purchases 850,000
Requirements:
1. Cash Purchases 3. Net Cash Provided by Operating Activities
2. Cash Paid to Suppliers
PROBLEM 5
ABM 12-5P Company provided the following information for the current year:
Cash Received from Customers P 500,000
Utilities Expense Paid 50,000
Inventory, Beginning 75,000
Inventory, Ending 110,000
Cash Paid to Employees 120,000
Depreciation Expense 30,000
Accounts Payable, Beginning 100,000
Accounts Payable, Ending 200,000
Gross Profit 550,000
Gross Profit Ratio 25%
Cash Purchases 150,000
Compute the following (1) Credit Purchases, (2) Cash Paid to Suppliers, (3) Net Cash Provided by Operating
Activities.
Assuming:
1. Gross Profit is based on Sales
2. Gross Profit is Based on Cost of Goods Sold
PROBLEM 6
ABM 12-9P Company provided the following information for the current year:
Accounts Payable, Beginning P 100,000
Utilities Expense Paid 50,000
Salaries Payable, Beginning 15,000
Salaries Expense 75,000
Account Receivable, Beginning 160,000
Cash Purchases 120,000
Account Receivable, Ending 140,000
Credit Sales 900,000
Total Purchases 750,000
Cash Sales 130,000
Accounts Payable, Ending 150,000
Salaries Payable, Ending 20,000
Requirements:
1. Cash Received from Customers 3. Cash Paid to Employees
2. Cash Paid to Suppliers 4. Net Cash Provided by Operating Activities
PROBLEM 7
ABM 12-7P Enterprises provided the following balances for the current year:
Beginning Ending
Accounts Payable P 100,000 120,000
Accounts Receivable 150,000 140,000
Allowance for Bad Debts 10,000 15,000
Prepaid Rent 75,000 50,000
Salaries Payable 15,000 60,000
Utilities Payable 75,000 40,000
Inventories 55,000 170,000
Net Income for the current year is P 735,000. What is the net cash from operations?
PROBLEM 8
The profit or loss accounts of ABM 12-1M Corporation for the year 2016 included the following:
Revenues P 8,000,000
Operating Expenses P 7,200,000
The operating expenses included depreciation of P 150,000 and intangible asset amortization of P 20,000
Changes in current asset and current liability account during 2016 were as follows:
Accounts Receivable` P 60,000 increase
Merchandise Inventory 50,000 increase
Accounts Payable 90,000 increase
Salaries and wages payable 30,000 increase
Interest Payable 5,000 increase
Income Tax Payable 25,000 increase
How much should be reported as cash generated from operating activities during 2016?