PROBLEM 5

Comprehensive problem

1) CASH NOTE RECEIVABLE

45,000 360,000

P45,000 P360,000

ACCUMULATED DEPRECIATION- BUILDING

254,000

P254,000

UNEARNED COSULTING REVENUES

450,000

P450,000

REPAIR EXPENSE
116,000

P116,000

2) DATE ACCOUNT TITLE AMOUNT

2023
December, 31 Office Supplies expense P42, 000
Office supplies P42,000
To record the expense portion
December, 31 Unearned consulting revenues P150,000
Consulting revenues P150,000
To recognize the earned portion
December, 31 Depreciation expense P161,000
Accumulated depreciation-bldg P38,000
Accumulated depreciation-eqpt P123,000
To record depreciation of building and equipment
December, 31 Salaries expense P14,000
Accrued salaries expense P14,000
To recognize unpaid salaries
December, 31 Interest receivable P32,000
Interest income P32,000
 To recognize accrued interest on notes receivable

3) Lea May Santiago Information System

Adjusted Trial Balance
December 31, 2023

Accounts Debit Credit

Cash 45,000
Notes receivable 360,000
Accounts receivable 156,000
Office supplies 21,000

Land 300,000
Building 1,590,000
Accumulated depreciation- building 2 92000
Equipment 2,150,000
Accumulated depreciation- equipment 7 35000
Accounts payable 213,000
Unearned consulting revenues 300 000
Santiago, capital,1/1/2023 2, 655,000
Santiago, withdrawal 600,000
Consulting revenues 2, 258,000
Salaries expense 889,000
Repairs expense 116,000
Miscellaneous expense 37,000
Office Supplies expense 42,000
Depreciation expense 161,000
Accrued salaries payable 14,000
Interest income 32,000
Interest receivable 32,000
TOTAL P6,499,000 P6,499,000
 OFFICE SUPPLIES LAND BUILDING
63,000 300,000 1,500,OOO

P63,000 P300,000 P1,500,000

EQUIPMENT ACCUMULATED DEPRECIATION- EQUIPMENT

2,150, 000 612,000

P2,150,000 P612,000

SANTIAGO, CAPITAL SANTIAGO, DRAWING SALARIES EXPENSE

2,655, 000 2, 108,000 875,000

P2,655,00 P2,108,000 P875,000

MISCELLANEOUS EXPENSE
37,000

P37,000
 4) Lea May Information System
Income Statement
For the year ended December 31, 2023

Revenues
Consulting revenues P2,258,000
Interest income 32,000
TOTAL REVENUE
Expenses
Salaries expense P889,000
Repairs expense 116,000

Miscellaneous expense 37,000

Office Supplies expense 42,000
Depreciation expense 161,000

TOTAL EXPENSE

2, 655,000 NET INCOME

2, 258,000

P6,499,000
 Lea May Information System
Statement of owners Equity
For the year ended December 31, 2023

P2,258,000 Santiago, Capital, 1/1/2023 P2,655.000

P2,290,000 Profit of the period P1,045,000

TOTAL P3,700,000
Santriago, Drawings 600,000

Santiago, Capital, 12/31/2023 P3,100,000

P1,245,000

P1,045,000
 Lea May Information System
Balance Sheet
December 31, 2023

Assets

Current Assets
P3,700,000 Cash P45,000
Notes receivable 360 000
Accounts receivable 156,000
Interest receivable 32,000
P3,100,000 Office supplies 21,000
Total Current Assets 614,000

Non-Current Assets
Land P300,000
Building 1, 590,000
Accumulated Depreciation-Bldg 2 920 000
Equipment 2, 150,000
Accumulated Depreciation-Eqpt 735,000
Total Non-Current Assets 3, 013,000

TOTAL ASSETS P3,627,000

Liabilities

Accounts payable P213,000

Unearned consulting revenues 300 000
Accrued salaries payable 14,000
527,000
Total Current liabilities
Equity
Santiago, Capital P3,100,000

TOTAL LIABILITIES AND EQUITY P3,627,000

PROBLEM 7

1) CHART OF ACCOUNTS 2) Journalizing

110 Cash Date

120 Accounts receivable 2023
130 Fees receivable December, 1

140 supplies
150 Office equipment
155 Accumulated Depreciation December, 2
210 Accounts payable
220 Salaries payable
310 Detoya, Capital December, 2
320 Detoya, Withdrawals
330 Income summary
410 Consulting revenues December, 3
510 Salaries expense

520 Supplies expense

530 Rent expense December, 8
540 Depreciation expense

December, 14

December, 20

December, 28

December, 30

December,31
 Posting to ledger

Account title Post Ref. Amount 110

Date
Cash 110 P150,000.00 Dec. 1

Detoya, Capital 310 P150,000.00 Dec.2

Investment of Detoya Dec.3
Rent expense 530 P8,000.00 Dec.8
Cash 110 P8,000.00 Dec.14
Payment of rent Dec.20
Supplies 140 P7,200.00 Dec.28
Accounts payable 210 P7,200.00 Dec.31
Purchase of supplies on account
Office equipment 150 P75,000.00
Cash 110 P37,000.00
Accounts payable 210 P38,000.00
Acquisition of office equipment 120
Accounts payable 210 P7,200.00 Date
Cash 110 P7,200.00 Dec. 30
Payment of supplies
Salaries expense 510 P6,000.00 140
Cash 110 P6,000.00 Date
Payment of salaries Dec.2
Cash 110 P20,000.00
Consulting revenues 410 P20,000.00 150
Received from a customer Date
Salaries expense 510 P6,000.00 Dec.3
Cash 110 P6,000.00
Payment of salaries 210
Accounts receivable 120 P48,000.00 Date
Consulting revenues 410 P48,000.00 Dec.2
Billing for client Dec.3
Detoya, Withdrawals 320 P12,000.00 Dec.4
Cash 110 P12,000.00
Withdrawals of Detoya

310
Date
Dec.1

320
Date
Dec. 31

410
Date
Dec.20
Dec.30

530
Date
Dec.2

510
Date
Dec.14
Dec.28
 3)

Cash ACCOUNT TITLE

Description Debit Credit
Investment of Detoya P150,000 CASH
ACCOUNTS RECEIVABLE
Payment of rent P8,000 FEES RECEIVABLE
Acquisition of office equipment 37,000 SUPPLIES
Payment of supplies 7,200 OFFICE SUPPLIES
Payment of salaries 6,000 ACCUMULATED DEPRECIATION
Received from customer 20,000 ACCOUNTS PAYABLE
Payment of salaries 6,000 SALARIES PAYABLE
Withdrawals of Detoya 12,000 DETOYA, CAPITAL
P170,000 P76,2000 DETOYA, WITHDRAWAL
P93,000 INCOME SUMMARY
CONSULTING REVENUES
SALARIES EXPENSE
Accounts receivable SUPPLIES EXPENSE
Description Debit Credit RENT EXPENSE
Billing for clients P48,000 DEPRECIATION EXPENSE
TOTAL
Supplies PROFIT
Description Debit Credit GRAND TOTAL
Payment of supplies on account P7,200

Office equipment
Description Debit Credit
Acquisition ofoffice equipment P75,000

Accounts payable
Description Debit Credit
Purchae of supplies on account P7,200
Acquisition of office equipment 38,000
Payment of supplies P7,200
P7,200 P45,200
P38,000

Detoya, Capital
Description Debit Credit
Investment of owner P150,000

Detoya, Withdrawal
 Description Debit Credit
Withdrawal of detoya P12,000

Consulting revenues
Description Debit Credit
Received from customer P20,000
Billing form customer 48,000
P68,000

Rent Expense
Description Debit Credit
Payment of rent P8,000

Salaries Expense
Description Debit Credit
Payment of salaries P6,000
Payment of salaries 6,000
P12,000
 EDGAR DETOYA
WORKSHEET
DECEMBER 31, 2023
NO. TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALANCE INCOME STATEMENT
DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
110 P93,000 P93,000
120 48,000 48,000
130 P10,000 10,000
140 7,200 P2,500 4,700
150 75,000 75,000
155 800 P800
210 P38,000 38,000
220 1,800 1,800
310 150,000 150,000
320 12,000 12,000
330
410 68,000 10,000 78,000 P78,000
510 12,000 1,800 13,800 P13,000
520 2,500 2,500 2,500
530 8,000 8,000 8,000
540 800 800 800
P256,000 P256,000 P15,000 P15,000 P268,600 P268,00 P25,000 P78,000
P52,900
P78,000 P78,000
 4) EDGAR DETOYA
INCOME STATEMENT
BALANCE SHEET FOR THE MONTH ENDED DECEMBER 31,2023
DEBIT CREDIT
P93,000 REVENUE
48,000 Consulting Revenues
10,000
4,700 EXPENSES
75,000 Salaries Expense
P800 Supplies Expense
38,000 Rent Expense
1,800 Depreciation Expense
150,000
12,000 Total Expense

PROFIT

P243,000 P190,000
P52,900
P243,000 P243,000
 EDGAR DETOYA
STATEMNT OF CHANGES IN EQUITY
DED DECEMBER 31,2023 FOR THE MONTH ENDED DECEMBER 31,2023

Detoya, Capital,12/1/2023 P150,000

P78,000 Profit 52,000
Total P202,900
Less: Detoya, Withdrawal 12,000
P13,000
2,500 Detoya, Capital,12/31/2023 P190,900
8,000
800

25,100

P52,900
 EDGAR DETOYA EDGAR DETOYA
BALANCE SHEET STATEMENT OF CASH
DECEMBER 31,2023 FOR THE MONTH ENDED DEC

ASSETS Cash flow from Operating ac

Current Assets
Cash P93,000
Accounts Receivable 48,000
Fees Receivable 10,000 Net cash from Operating
Supplies 4,700
Cash flow from Investing acti
Total current Assets P156,500

Non-Current Assets Net cash from Investing a

Office supplies 75,000
Accumulated Dept. 800 Cash flow from Financing acti

Total Non-Current Assets 74,200

Net cash from Financing a
TOTAL ASSETS P230,700

LIABILITIES

Current liabilities
Accounts payable P38,000
Salaries payable 1,800

Total Current liabilities 39,800

EQUITY

Detoya, Capital 190,900

TOTAL LIABILITIES AND EQUITY P230,700

 EDGAR DETOYA
STATEMENT OF CASH FLOW 5) ADJUSTING ENTRIES
FOR THE MONTH ENDED DECEMBER 31,2023
DATE(2023)
Cash flow from Operating activities Dec. 31
Received from customer P20,000
Payment of salaries 12,000
payment rent 8,000 31
Net cash from Operating activities 0

Cash flow from Investing activities 31

Acquisition of equipment 37,000
Payment of supplies 7,200
Net cash from Investing activities 44,200 31

Cash flow from Financing activities

Investment of owner 150,000
Withdrawal of owner 12,00o
Net cash from Financing activities 138,000

NET CASH FLOW P93,800

) ADJUSTING ENTRIES CLOSING ENTRIES

ACCOUNT TITLE PR NO DEBIT CREDIT DATE(2023)

Supplies Expense 520 P2,500 Dec. 31
Supplies 140 P2,500
To record supplies on hand at dec 31
Salaries Expense 510 1,800 31
Salaries payable 220 1,800
To record accrued salaries
Depreciation Expense 540 800
Accumulated depreciation 155 800
To record depreciation expense
Fees receivable 130 10,000 31
Consulting revenues 410 10,000
To record detoya spend 20 hours
31
LOSING ENTRIES 6) POST CLOSING TRIAL BALANCE

ACCOUNT TITLE PR NO DEBIT CREDIT

Consulting revenue 410 P78,000
Income summary 330 78,000
To close income accounts
Income summary 330 25,000 CASH
Salaries expense 510 13,000 ACCOUNTS RECEIVABL
Supplies expense 520 2,500 FEES RECEIVABLE
Rent expense 530 8,000 SUPPLIES
Depreciation expense 540 800 OFFICE EQUIPMENT
To close expense account ACCUMULATED DEPRE
Income summary 330 52,900 ACCOUNTS PAYABLE
Detoya, Capital 310 52,900 SALARIES PAYABLE
To close profit to capital accounts DETOYA, CAPITAL
Detoya, Capital 310 12,000
Detoya, Withdrawal 320 12,000
To close withdrawal accounts
IAL BALANCE 7) REVERSING ENTRIES

EDGAR DETOYA DATE ACCOUNT TITLE

POST-CLOSING TRIAL BALANCE Jan. 1 Salaries payable
DECEMBER 31,2023 Salaries expense
to record salaries payable
P93,000 1 Consulting revenues
ACCOUNTS RECEIVABLE 48,000 Fees receivable
FEES RECEIVABLE 10,000 to recordconsulting revenue
4,700
OFFICE EQUIPMENT 75,000
ACCUMULATED DEPRECIATION P800
ACCOUNTS PAYABLE 38,000
SALARIES PAYABLE 1,800
DETOYA, CAPITAL 190,000
TOTAL P231,000 P231,000
PR.NO DEBIT CREDIT
220 P1,800
510 P1,800

410 10,000
130 10,000
PROBLEM 22

1) February 1, 2023 account balances

GENERAL LEDGER

110 CASH 120 ACCOUNTS RECEIVABLE 130 MERCHANDISE INV

feb.1 P33,000 feb.1 P192,000 feb.1

140 SUPPLIES 150 PREPAID INSURANCE 160 LAND

feb.1 P51,000 feb.1 P48,000 feb.1 P460,000

170 BUILDING 175 ACCUMULATED DEPRECIATION-BUILDING 210 ACCOUNTS PAYABLE

feb.1 P1,750,000 P350,000 feb.1

230 MORTGAGE PAYABLE 310 BUENAFLOR, CAPITAL

P2,600,00 feb.1 P1,569,000 feb.1

180 EQUIPMENT 185 ACCUMULATED DEPRECIATION- EQUIPMENT

feb.1 P2,310,000 P630,000 feb.1
 2) GENERAL JOURNAL

DATE(2023) ACCOUNT TITLE

130 MERCHANDISE INVENTORY feb. 1 Cash

P413,000 Accounts receivable
collection from customer on account
2 Accounts receivable
160 LAND Purchase discounts
Cash
paid ccount due less 3 percent
4 Purchases
Accounts payable
ACCOUNTS PAYABLE purchase merchandise on account
P108,000 feb.1 5 Accounts receivable
Sales
sold merchandise on account
7 Advertising expense
Cash
paid advertising expense
7 Cash
Sales

sold merchandise for cash

8 Account payable
Purchase discounts
Cash
paid the amount due from feb 4
9 Transportation in
Cash
paid ilo ilo freight in for delivering
10 Sales return/allowances
Accounts receivable
received retuen from Gonzales corp

12 Sales
Cash
Accounts receivable
receive payment from Gonzalez inc.
14 Intrest expense
Cash
payment of interest
15 Salaries expense
Cash
paid salaries
16 Accounts receivable
Sales
sold merchandise
18 Transporatation out
Cash
paid freight charge
19 Supplies
Cash
acquired supplies for cash
20 Purchase
Accounts payable
purchase merchandise on account
22 Miscellaneous expense
Cash
paid miscellaneous expense
24 Transportation in
Cash
paid la paz express for delivery
24 Purchase
Accounts payable
purchase merchandise on account
25 Accounts receivable
Sales
sold merchandise to ginzales corp
26 Sales return/allowances
Accounts receivable
received returns from rozales
28 Buenaflor, withdrawal
Cash
Buenaflor, withdrawal
28 Accounts payable
Purchase return/allowances
returned merchandise purchase
 LEDGER

POST REF. DEBIT CREDIT 110

DATE
Feb.1
110 P113,000.00 1
120 P113,00.00 2
7
120 64,000 7
530 1,920 8
110 62,080 9
12
510 170,000 14
210 170,000 15
18
120 270,000 19
410 270,000 22
23
670 6,000 24
110 6,000 28

110 250,000 120

410 250,000 DATE
1
1
210 170,000 5
530 5,100 10
110 164,000 12
16
540 4,000 23
110 4,000 25
26
420
120 70,000 140
70,000 DATE
feb.1
410 4,000 feb. 19
110 196,000
120 200,000
DATE
feb.1
680 26,000 2
110 26,000 4
8
610 51,000 20
110 51,000 24
28
120 392,000
410 392,000
320
660 4,000 DATE
110 4,000 feb. 28

140 21,000 410

110 21,000 DATE
feb. 5
510 125,000 7
210 125,000 16
25
690 7,000
110 7,000 420
DATE
540 9,000 feb. 10
110 9,000 26

510 373,000
210 373,000 430
DATE
120 420,000 feb. 12
410 420,000 23

420 71,000
120 71,000 510
DATE
320 400,000 feb. 4
110 400,000 20
24
210 25,000
520 25,000
520
DATE
feb. 28

530
DATE
feb. 2
8

540
DATE
feb. 9
24

610
DATE
feb. 15

660
DATE
feb. 18

670
DATE
feb. 7

680
DATE
feb. 14

690
DATE
feb. 22
 3) WORKSHEET

CASH
DESCRIPTION DEBIT CREDIT
Beginning balane P33,000
Collection from customer on account P113,000
Paid accounts due less discounts 3% P62,080
Paid for advertisingfor the month 6000
Sold merchandise for cash 250000
Paid the amount due from feb 4 164000
paid ilo ilo freight for delivering 4000
Received payment from the gonzales 196000
Payment of interest on the mortgage 26000
paid salaries 51000
paid freight charges on the sale 4000
Acquired supplies for cash 21000
paid miscellaneous expense 7000
received payment from the ronzales 384160
paid la paz express 9000
Buenaflor, withdrawal 400000
P221,180
ACCOUNTS RECEIVABLE
DESCRIPTION DEBIT CREDIT
Beginning balance P192,000
Collection from a customer P113,000
Sold merchandise on account P270,000
Received returns from the Gonzales inc. 70000
received payment from the Gonzales inc 200000
Sold merchandise on account 392000
Received payment from the ronzales corp 392000
Sold merchandise to Ronzales corp 420000
received returns from the ronzales inc. 71000
P428,000
SUPPLIES
DESCRIPTION DEBIT CREDIT
Beginning balance P51,000
Acquired supplies for cash P21,000
P72,000
ACCOUNTS PAYABLE
DESCRIPTION DEBIT CREDIT
P180,000
Paid accounts less discount of 3% P64,000
Purchase merchandise P170,000
Paid the amount due from feb 4 170000
Purchase merchandise from lozada 125000
Purchase merchandise on account 373000
Returned merchandise purchased 25000
P517,000

BUENAFLOR, WITHDRAWALS
DESCRIPTION DEBIT CREDIT
Buenaflor withdrawal P400,000

SALES
DESCRIPTION DEBIT CREDIT
Sold merchandise on account P270,000
Sold merchandise for cash 250,000
Sold merchandise on account 392,000
Sold merchandise to ronzales corp. 420,000
P1,332,000
SALES RETURN/ ALOWANCES
DESCRIPTION DEBIT CREDIT
Gonzales inc returened merchandise P70,000
Receivedreturns from the ronzales 71,000
P141,000

SALES DISCOUNT
DESCRIPTION DEBIT CREDIT
Received payment from the gonzales inc P4,000
Received payment from the ronzales corp 7,840
P11,840

PURCHASE
DESCRIPTION DEBIT CREDIT
Purchased merchandise on account P170,000
Purchased merchandise from lozada 125,000
Purchased merchandise on account 373,000
P668,000

PURCHASED RETURN/ ALLOWANCES

DESCRIPTION DEBIT CREDIT
Returned merchandise purchased P25,000

PURCHASED DISCOUNTS
DESCRIPTION DEBIT CREDIT
Paid accounts due less discount 3% P1,920
Paid the amount due from feb4 5,100
P7,020
TRANSPORTATION IN
DESCRIPTION DEBIT CREDIT
Paid iloilo freight for delivery P4,000
Paid la paz express 9,000
P13,000
SALARIES EXPENES
DESCRIPTION DEBIT CREDIT
Paid salaries P51,000

TRANSPORTATION OUT
DESCRIPTION DEBIT CREDIT
Paid freight charges P4,000

ADVERTISING EXPENSE
DESCRIPTION DEBIT CREDIT
Paid for advertising P6,000

INTEREST EXPENSE
DESCRIPTION DEBIT CREDIT
Payment of interest on the mortgage P26,000

MISCELLANEOUS EXPENSE
DESCRIPTION DEBIT CREDIT
Paid miscellaneous expense P7,000
 TERESITA, BUENAFLOR SHOES
3) WORKSHEET WORKSHEET
FEBRUARY 1, 2023
ACCOUNT TITLE NO TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALANCE
DEBIT CREDIT DEBIT CREDIT DEBIT

CASH 110 P221,180 P221,180

ACCOUNTS RECEIVABLE 120 428,000 428,000
MERCHANDISE INVENTORY 130 413,000 413,000
SUPPLIES 140 72,000 P58,000 14,000
PREPAID INSURANCE 140 48,000 2,000 46,000
LAND 150 460,000 460,000
BUILDING 160 1, 750,000 1, 750,000
ACCUMULATED DEPRECIATION- BUILDING 170 P350,000 9,000
EQUIPMENT 175 2 310,000 2, 310,000
ACCUMULATED DEPRECIATION- EQUIPMENT 180 630,000 12,000
ACCOUNTS PAYABLE 185 517,000
SALARIES PAYABLE 210 51,000
MORTGAGE PAYABLE 220 2 600,000
BUENAFLOR, CAPITAL 230 1 569,000
BUENAFLOR, WITHDRAWAL 310 400,000 400,000
INCOME SUMMARY 320
SALES 330 1 332,000
SALES RETURN/ ALLOWANCES 410 141,000 141,000

SALES DISCOUNTS 420 11,840 11,840

PURCHASE 430 668,000 668,000
PURCHASE RETURN/ ALLOWANCES 510 25,000
PURCHASE DISCOUNTS 520 7,020
TRANSPORTATION IN 530 13,000 13,000
SALARIES EXPENSE 610 51,000 51,000 102,000
SUPPLIES EXPENSE 620 58,000 58,000
INSURANCE EXPENSE 630 2,000 2,000
DEPRECIATION EXPENSE- BUILDING 640 9,000 9,000
DEPRECIATION EXPENSE-EQUIPMENT 650 12,000 12,000
TRANSPORTATION OUT 660 4,000 4,000

ADVERTISING EXPENSE 670 6,000 6,000

INTEREST EXPENSE 680 26,000 26,000
MISCELLANEOUS EXPENSE 690 7,000 7,000
TOTAL P7,030,000P7, 030,00P132,000 P132,000 P7, 102,000P7, 102,000
PROFIT
GRAND TOTAL
 4)

ADJUSTED TRIAL BALANCE INCOME STAMENT BALANCE SHEET

CREDIT DEBIT CREDIT DEBIT CREDIT

P221,180
428,000
P413,000 P397,000 397,000
14,000
46,000
460,000
1, 750,000 1 750,000
P359,000 P359,000
2, 310,000 2, 310,000
642,000 642,000
517,000 517,000
51,000 51,000
2, 600,000 2, 600,000
1, 569,000 1, 569, 000
400,000

1 332,000 1 332,000
141,000

11,840
668,000
25,000 25,000
7,020 7,020
13,000
102,000
58,000
2,000
9,000
12,000
4,000

6,000
26,000
7,000
P7, 102,000P7, 102,000 P1, 472,000 P1 761,020 P6, 026,180 P5, 738,000
P288,180 P288,180
P1 761,020 P1 761,020 P6, 026,180P6, 026,180
 TERESITA BUENAFLOR SHOES
INCOME STATEMENT
FOR THE YEAR ENDED FEBRUARY 28, 2023

NET SALES
SALES P1, 332,000
LESS:SALES DISCOUNTS P11,840
SALES RETURN/ ALLOWANCES 141,000 152,840
NET SALES P1, 179, 160

COST OF SALES
MERCHANDISE INVENTORY 2/1/2023 P413,000
PURCHASE P668,000
LESS: PURCHASE DISCOUNTS P7,020
PURCHASE RETURN/ALLOWANCES 25,000 32,020
NET PURCHASE 635,980
TRANSPORTATION IN 13,000
NET COST OF PURCHASE P648,980
TOTAL COST OF GOODS AVAILABLE FOR SALE P1,061,980
MERCHANDISE INVENTORY 2/31/2023 397,000
COST OF SALE P664,980

GROSS PROFIT P514,180

OPERATING EXPENSE
SELLING E
TRANSPOTRATION OUT P4,000
ADVERTISING EXPENSE 6,000
TOTAL SELLING EXPENSE P10,000
ADMINISTRATIVE EXPENSE
SALARIES EXPENSE P102,000
SUPPLIES EXPENSE 58,000
INSURANCE EXPENSE 2,000

DEPRECIATION EXPENSE- BUILDING 9,000

DEPRECIATION EXPENSE- EQUIPMENT 12,000
TOTAL ADMINISTRATIVE EXPENSE P183,000
TOTAL OPERATING EXPENSE P193,000
OPERATING PROFIT 321,180
OTHER EXPENSE
INTEREST EXPENSE P26,000
MISCELLANEOUS EXPENSE 7,000
TOTAL OTHER EXPENSE P33,000
PROFIT P288,180
 TERESITA BUENAFLOR SHOES
STATEMENT OF CHANGES IN OWNERS EQUITY
FOR THE MONTH ENDED FEBRUARY 28,2023

BUENAFLOR, CAPITAL,2/1/2023 P1,569,000

ADD: PROFIT 288,180
TOTAL P1,857,180

LESS:BUENAFLOR WITHDRAWAL P400,000

BUENAFLOR,CAPITAL2/28/2023 P1,457,180
 TERESITA BUENAFLOR SHOES
BALANCE SHEET
FEBRUARY 28, 2023

ASSETS

CURRENT ASSETS
CASH P221,180
ACCOUNTS RECEIVABLE 428,000
MERCHANDISE INVENTORY 397,000
SUPPLIES 14,000
PRE PAID INSURANCE 46,000
TOTAL CURRENT ASSETS P1,106,180

NON-CURRENT ASSETS
LAND P460,000
BUILDING P1,750,000
ACCUMULATED DEPRECIATION-BLDG 359,000 P1,391,000
EQUIPMENT 2 310,000
ACCUMULATED DEPRECIATION-EQPT 642,000 P1,668,000
TOTAL NON-CURRENT ASSETS P3, 519,000

TOTAL ASSETS P4, 625,180

LIABILITIES AND OWNERS EQUITY

CURRENT LIABILITIES
ACCOUNTS PAYABLE P517,000
SALARIES PAYABLE 51,000
TOTAL CURRENT LIABILITIES P568,000

NON-CURRENT LIABILITIES
MORTGAGE PAYABLE P2,600,000

TOTAL LIABILITIES P3,168,000

OWNERS EQUITY
BUENAFLOR, CAPITAL,2/28/2023 P1.457,180
TOTAL LIABILITIES AND EQUITY P4,625,180
 5) ADJUSTING ENTRIES

DATE(2023 ACCOUNT TITLE PR.NO

feb. 28 Salaries expense 610

Salaries payable 220

To record accrued salaries
28 Insurance expense 630
Pre-paid insurance 150
To record Prepaid insurance
28 Depreciation expense 640
Accumulated depreciation-Bldg 175
to record Depreciation expense
28 Depreciation expense 650
P1,106,180 Accumulated depreciation-Eqpt 185
to record Depreciation expense
28 Supplies Expense 620
Supplies 140
to record Supplies expense
28 Merchandise inventory, 2/28/2023 130
Income summary 330
To record merchandise inventory
P3, 519,000

P4, 625,180

P2,600,000

P3,168,000

P1.457,180
P4,625,180
 CLOSING ENTRIES

DEBIT CREDIT DATE(2023) ACCOUNT TITLE PR.NO

P51,000 feb. 28 Merchandise inventory 130

P51,000 Sales 410

Purchased returns and allowances 520
P2,000 Purchased Discounts 530
P2,000 Income summary 330
To close income accounts
P9,000 28 Income summary 330
P9,000 Merchandising inventory 130
Sales return/allowances 420
P12,000 Sales Discounts 430
P12,000 Purchased 510
Transportation in 540
P58,000 Salaries expense 610
P58,000 Supplies expense 620
Insurance expense 630
P397,000 Depreciation expense-bldg 640
P397,000 Depreciation expense-eqpt 650
Transportation out 660
Advertising expense 670

Interest expense 680

Miscellaneous expense 690
to close expense accounts
28 Income summary 330
Buenaflor, Capital 310
to close profit to capital account
28 Buenaflor, Capital 310
Buenaflor, Withdrawal 320
to close withdrawal accounts
 6) LEDGER ADJUSTING ENTRIES

DEBIT CREDIT
P397,000 610 SALARIES EXPENSE 220 SALARIES PAYABLE

1 332,000 feb.28 P51,000 P51,000

25,000
7,200
P1 761,000
630 INSURANCE EXPENSE 150 Pre paid insurance
P1 472,00 feb.28 P2,000 P2,000
P413,000
141,000
11,840 640 DEPRECIATION EXPENSE- BUILD 175 ACCUMULATED DEPRECIATIO
668,000 feb.28 P12,000
13,000
102,000
58,000
2,000 650 DEPRECIATION EXPENSE-EQUIPMENT 620
9,000 feb.28 P12,000 feb.28
12,000
4,000
6,000

26,000 185 ACCUMULATED DEPRECIATION-EQUIPMEN 140

7,000 P12,000 feb.28

P288,180
P288,180
130 MERCHANDISE INVENTORY 330 INCOME SUMMARY
P400,000 feb.28 P397,000
P400,000
 LEDGER CLOSING ENTRIES

420 SALES RETURN/ALLOWANCES

P141,000 feb.28

feb.28

410 SALES
feb.28 P1,332,000

feb.28

520 PURCHASED RETURN/ALLOWANCES

ACCUMULATED DEPRECIATION- BUILDING feb.28 P25,000
P12,000 feb.28

530 PURCHASED DISCOUNTS

SUPPLIES EXPENSE feb.28 P7,200
P58,000

510 PURCHASED

SUPPLIES P668,000 feb.28

P58,000 feb.28

430 SALES DISCOUNT

INCOME SUMMARY P11,840 feb.28
P397,000 feb.28
 130 MERCHANDISE INVENTORY 330 INCOME SUMMARY 640
feb.28 P397,000 P413,000 feb.28 feb.28 P1 472,000P1 761,000

P288,180
P16,000 P577,180

650
310 BUENAFLOR, CAPITAL
610 SALARIES EXPENSE feb.28 P400,000 P288,180
P102,000 feb.28
P112,000
540

620 SUPPLIES EXPENSE 320 BUENAFLOR WITHDRAWAL

P58,000 feb.28 P400,000 feb.28

660

630 INSURANCE EXPENSE 680 INTEREST EXPENSE

P2,000 feb.28 P26,000 feb.28

670 ADVERTISING EXPENSE MISCELLANEOUS EXPENSE

P6,000 feb.28 P7,000 feb.28
DEPRECIATION EXPENSE-BUILDING
P9,000 feb.28

DEPRECIATION EXPENSE-EQUIPMENT
P12,000 feb.28

TRANSPORTATION IN
P13,800 feb.28

TRANSPORTATION OUT
P4,000 feb.28
PROBLEM NO 3

1) OPENNING JOURNAL IN THE BOOKS OF THE PARTNERSHIP 2)

DATE ACCOUNT TITLE DEBIT CREDIT

Jan.1 Cash P36,000
Accounts receivable 150,000
Inventory 460,000
Equpment 124,000
Allowance for uncollectible accounts P10,000
Accounts payable 30,000
Espanol, Capital 730,000
to record investment of espanol

Jan.1 Cash P730,000

Selisana, Capital P730,000
to record the investment of selisana
 FISH R US
STATEMENT OF FINANCIAL POSITION
JANUARY 1 2024

ASSETS

Cash P766,000
Accounts receivable P150,000
Allowance for uncollectible accounts 10,000 140,000
Inventory 460,000
Equipment 124,000
Total Assets P1,490,000
LIABILITIES

Accounts payable P30,000

Espanol, Capital 730,000
Selisana, Capital 730,000
P1,490,00
PROBLEM 6

1) PROFIT: P1,500,000

CALAMBA BRILLANTES TOTAL

Contributions P2OO,000.00 P300,000.00 P500,000.00
A. profit 1:1
P750,000.00 P750,000.00 P1,500,000

1,500,000

2
750000

B. profit4:6 P600,000.00 P900,000.00 P1,500,000

1,500,000 1,500,000
X 200,000 X 300,000
3.00E+11 4.50E+11
/500,000 /500,000
600,000 900,000

C.profit 2:1 P1,000,000.00 P500,000.00 P1,500,000

2:1=3
200/3=66.66666
1 500,000X66.66%
1,000,000
100/3=33.33333
1 500,000X33.33%
500,000

D. interest 10% P20,000.00 P30,000.00 P50,000

1 500,000X10%
20,000
1 500,000X10%
30,000

Remainder 3:2 P870,000.00 P580,000.00 1 450,000

20,000+30,000
50,000
1 500,000-50,000
1 450,000 1 450,000
x60% x40%
870,000 580,000

TOTAL PROFIT P890,000.00 P610,000.00 P1 500,000

E. Interest 10% P20,000.00 P30,000.00 P50,000

Salary allowances P340,000.00 P170,000.00 P510,000
Remainder 1:1 P470,000.00 P470,000.00 P940,000
TOTAL PROFIT P830,000.00 P670,000.00 P1 500,000
20,000+340,000
360,000
30,000+170,000
200,000
360,000+200,000
560,000
1 500,000-560,000
940,000
X50%
470,000

F.Interest 10% P20,000.00 P30,000.00 P50,000

Salary allowances P340,000.00 P170,000.00 P510,000
Bonus 20% P198,000.00 P198,000
Remainder 1:1 P371,000.00 P371,00.00 P742,000
TOTAL PROFIT P929,000.00 P571,000.00 P1 500,000
2) PROFIT P660,000

CALAMBA BRILLANTES TOTAL

Contributions P200,000.00 P300,000.00 P500,000
A. profit 1:1
P330,000.00 P330,000.00 P660,000

B.profit 4:6 P264,000.00 P396,000.00 P660,000

C. profit 2:1 P440,000.00 P220,000.00 P660,000

D.Interest 10% P20,000.00 P30,000.00 P50,000

Remainder 3:2 P366,000.00 P244,000.00 P610,000
TOTAL PROFIT P386,000.00 P274,000.00 P660,000

E.Interest 10% P20,000.00 P30,000.00 P50,000

Salary P340,000.00 P170,000.00 P510,000
Remainder 1:1 P50,000.00 P50,000.00 P100,000
TOTAL PROFIT P410,000.00 P250,000.00 P660,00

F. Interest 10% P20,000.00 P30,000.00 P50,000

Salary P340,000.00 P170,000.00 P510,000
Bonus 20% P198,000.00
Remainder 1:1 P490,000.00 P490,000.00 P98,000
TOTAL PROFIT P509,000.00 P151,000.00 P660,000
PROBLEM 15

T CAYAAN CORPORATION
1) BALANCE SHEET
SHAREHOLDERS EQUITY
DECEMBER 31,2022

SHAREHOLDERS EQUITY
Share Capital
6% preference shares, P200par, 3,0000 shares authorized,
issued and outstanding
Ordinary shares, No par,P20 stated value; 300,000 shares
authorized, issued and outstanding
Sharepremium- Preference P10,000
Donated Capital P400,000
Total Share Capital
Retained earnings- Unappropriated
TOTAL SHAREHOLDERS EQUITY
P600,000

P6,000,000

P50,000
P6,650,000
P500,000
P7,150,000
PROBLEM 9

MARISSA BABILONIA HEALTH STORE

INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31,2023

NET SALES
Sales P9, 810,000
Less: Sales Discount 140,000
Sales Return/Allowances 260,000
Net sales P9, 410,000

COST OF SALES
Merchandise Inventory, 1/1/2023 P1, 160,000
Purchases P6, 710,000
Less: Purchases Discount 180,000
Purchase Return/Allowances 250,000
Net Purchase 6, 280,000
Transportation In 100,000
Net cost of Purchases 6, 380,000
Goods available for sale 7, 540,000
Merchandise Inventory,12/31,2023 1, ,040,000
Cost of Sale 6, 500,00
GROSS PROFIT P2, 910,000

OPERATING EXPENSES
Selling Expense
Salaries Expense- selling P960,000
Selling supplies 70,000
Advertising Expense 150,000
Depreciation Expense- store equipment 140,000
Transportation out 260,000
Total Selling Expense P1, 580,000

Administrative Expense
Salaries Expense- General P1, 130,000
Office supplies expense 430,000
Miscellaneous expense 90,000
Depreciation expense- equipment 110,000
Total Administrative Expense 1, 760,000
TOTAL OPERATING EXPENSE P3, 340,000
Operating Profit 430,000
Finance Cost
NET LOSS P(430,000)
P2, 910,000

P3, 340,000

P(430,000)
PROBLEM N0.4

PAPA DISTRIBUTION
CASH RECEIPTS JOURNAL

DATE OR.NO DESCRIPTION DEBIT

CASH SALES DISCOUNTS
June.1 1 Borrowed from V.Epiritu Bank P60,000.00
June.4 2 Sales P62,000.00
June.7 3 Collection from D. Sandoval P28,130.00 P870.00
June.10 4 Collection from D.Mallari stores P21,340.00 P660.00
June.18 5 Sales P33,000.00
June.20 6 Collection from R.Reyes P26,000.00
TOTAL P230,470.00 P1,530.00

TOTAL DEBITS P232,000.00

PAPA DISTRIBUTION
CASH PAYMENT JOURNAL

DATE CHECK NO. DESCRIPTION DEBIT

INVENTORY ACCOUNTS PAYABLE
June.2 71 Inventory P47,000
June.6 72 Paid an invoice to Y.Filamor Comp. P28,000.00
June.12 73 Paid freight charges
June.14 74 Paid for advertising
June.15 75 Paid salaries
June.19 76 Paid an invoice to C. Gonzaga Comp. P29,000.00
June.23 77 Inventory P23,000
June.26 78 Paid past due to D.Ramos P32,000.00
June.28 79 V. Abueulencia Withdrawal

TOTAL P675.00 P70,000 P89,000.00

TOTAL DEBITS P205,000.00
DISTRIBUTION
ECEIPTS JOURNAL

CREDIT OTHER ACCOUNTS

ACCOUNTS RECEIVABLE SALES NOTES PAYABLE
P60,000.00
P62,000.00
P29,000,00
P22,000.00
P33,000.00
P26,000.00
P77,000.00 P95,000.00 P60,000.00

TOTAL CREDITS P232,000.00

DISTRIBUTION
MENT JOURNAL

CREDIT
OTHER EXPENSES INVENTORY CASH RECEIPT
P47,000.00
P560.00 P27,000.00
P1,000.00 P1,000.00
P3,000.00 P3,000.00
P12,000.00 P12,000.00
P580.00 P28,000.00
P23,000.00
P32,000.00
P30,000.00 P30,000.00

P46,000.00 P1,140.00 P203,860.00

TOTAL CREDITS P205,000.00
PROBLEM NO 2

1) Items that are manufacturing overhead 2)

SCHE
Amortization of patents
Depreciation expense- Factory Building
Depreciation expense- Factory Equipment Manufacturing Overhead
Factory Insurance
Factory Suprvision
Factory supplies expense
Indirect labor
Property taxes factory

Repairs and maintenanced factory expense

TOTAL MANUFACTURING OV
 GODOFREDO CADELINA 3)
SCHEDULE OF MANUFACTURING OVERHEAD
DECEMBER 31,2023

Manufacturing Overhead

Amortization of patents P16,000.00

Depreciation expense -Factory building 133,000
Depreciation expense -Factory equipment 78,000
Factory Insurance expense 62,000

Factory supervision 74,000

Factory Supplies expense 21,000
Factory Utilities 115,000
Indirect Labor 26,000
Property Taxes factory 14,000
Repairs and maintenanced factory expense 31,000

TOTAL MANUFACTURING OVERHEAD P570,000.00

 GODOFREDO CADELINA CORPORATION 4)
STATEMENT OF COST OF GOODS MANUFACTURED
FOR THE YEAR ENDED DECEMBER 31, 2023

Direct Material Sales

Raw material Inventory, 1/1/2023 P60,000 Cost of goods sold
Purchase 313,000
Raw material available for use P373,000
Raw material inventory, 12/31/2023 78,000 P295,000
Direct labor 250,000

Manufacturing Overhead 570,000 Gross profit

Total manufacturing overhead P1,115,000 Operating expense
Work in process,1/1/2023 8,000
Cost of goods put into process 1, 123,000
Work into process,12/31/2023 9,000
Cost of goods manufactured P1, 114,000

PROFIT
 GODOFREDO CADELINA CORPORATION
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2023

P1,630,000
Cost of goods sold
Finished goods, 1/1/2023 P15,000
Cost of goods manufactured 1, 114,000
Total goods available for sale 1. 129,000
Finished goods, 12/31/2023 12,000
P1,117,000
Gross profit 573,000
Operating expense
Advertising expense P85,000
Uncollectible accounts expense 28,000
Depreciation expense- off.eqpt 37,000
Salaries expense 150,000
Interest expense 25,000
P325,000
P188,000
PROBLEM 10

RAMON WOO MILK PRODUCT

INCOME STATEMENT
FOR THE MONTH ENDED JUNE 31,2023

NET SALES
Sales P731,000
Less: Sales Return/Allowances P18,030
Sales Discount P10,400 P28,430
Net Sales P702,570

COST OF SALES
Inventory,1/1/2023 P69,000
Purchase P364,350
Less:Purchse Return/Allowances P3,400
Purchase Discount P1,990 P5,390
Net purchase P358,610
Net Cost of Purchase P358,610
Goods available for sale P427,000
Less:Inventory,6/30/2023 P65,520
Cost of Sales P362,440

GROSS PROFIT P340,130

OPERATING EXPENSE
Selling Expense P132,900
Interest expense P5,400
General Expense P116,700
Total administrative expense P122,100
Total Operating Expense P255,000
OPERATING PROFIT P85,130
Finance Cost
PROFIT P85,130
COST OF GOODS SOLD

Inventory,1/1/2023 P69,350
Purchase P364,000
Less:Purchase Discount P1,990
Purchse Return/Allowances P3,400 P5,390
Net Purchase P358,610
Net Cost of Purchases P358,610
Goods available for Sale P427,960
Less: Inventory,6/30/2023 P65,520
Cost of goods Sold P362,440