05, PEREZ, FERNANDO III D.

AE 221 2:00-3:00 MWF

1A
2C
3C
4B
5A
6C
7D
8B
9B
10 E
11 A
12 C
13 A
14 D
15 A
16 C
17 C
18 C
19 C
20 REVENUE, 12/31/19 ₱ 1,980,000
ACCOUNTS RECEIVABLE, BEG. ₱ 415,000
ACCOUNTS RECEIVABLE, END. -₱ 550,000
REVENUE-CASH BASIS A ₱ 1,845,000

21 REVENUE, 12/31/19 ₱ 5,000,000.00

ACCOUNTS RECEIVABLE, BEG. ₱ 300,000
ACCOUNTS RECEIVABLE, END. -₱ 200,000
REVENUE-CASH BASIS D ₱ 5,100,000

22 PURCHASES, 2019 ₱ 2,500,000

ACCOUNTS PAYABLE, BEG. -₱ 600,000
ACCOUNTS PAYABLE, END. ₱ 800,000
TOTAL PURCHASES-ACCRUAL BAS C ₱ 2,700,000

23 PREPAID INSURANCE ₱ 150,000

NEW INSURANCE (500,000*9/12) ₱ 375,000
TOTAL INSURANCE EXPENSE-ACCRUAL BASI C ₱ 525,000

24 RENT INCOME ₱ 600,000

UNEARNED RENT BEG. -₱ 50,000
UNEARNED RENT END. ₱ 75,000
ACCRUED RENT INCOME, BEG ₱ 30,000
 ACCRUED RENT INCOME, END -₱ 40,000
TOTAL RENT INCOME-CASH BASIS B ₱ 615,000

25 PAYMENTS MADE ₱ 670,000

ACCRUED EXPENSE, BEG. -₱ 230,000
ACCRUED EXPENSE, END. ₱ 190,000
PREPAID EXPENSES, BEG. ₱ 120,000
OPERATING EXPENSES -₱ 690,000
PREPAID EXPENSES, END. B ₱ 60,000

26 JOURNAL ENTRY
RENT REVENUE ₱ 45,600
UNEARNED RENT ₱ 45,600

ADJUSTING ENTRY A.
UNEARNED RENT (45600*8/12) ₱ 30,400
RENT REVENUE ₱ 30,400

27 JOURNAL ENTRY
PREPAID INSURANCE 3000
CASH 3000

ADJUSTING ENTRY D
INSURANCE EXPENSE (3000*7/12) ₱ 1,750
PREPAID INSURANCE ₱ 1,750

28 SALES
ACCOUNTS RECEIVABLE, END. ₱ 200,000
ACCOUNTS RECEIVABLE, BEG. -₱ 400,000 -₱ 200,000
COST OF GOODS SOLD
ACCOUNTS PAYABLE, END. ₱ 300,000
ACCOUNTS PAYABLE, BEG. -₱ 150,000 ₱ 150,000
CASH BASIS PRETAX INCOME ₱ 600,000
NET INCOME BEFORE TAXES B ₱ 550,000

29 COLLECTION ₱ 200,000
ACCOUNTS RECEIVABLE ₱ 600,000
TOTAL SERVICE ₱ 800,000
ACCOUNTS PAYABLE -₱ 400,000
GROSS PROFIT ₱ 400,000
PARTIAL PAYMENT OF EXPENSES -₱ 100,000
TOTAL ₱ 300,000
WITHDRAWALS -₱ 60,000
TOTAL ₱ 240,000
INITAL CAPITAL ₱ 400,000
 ENDING CAPITAL A ₱ 640,000

30 COST OF EQUIPMENT ₱ 344,000

EQUIPMENT COST ₱ 379,000
COST -₱ 50,000 -₱ 329,000
COST OF EQUPMENT SOLD ₱ 15,000
CARRYING AMOUNT -9000
ACCUMULATED DEPRECIATION ₱ 6,000
ACCUMULATED DEPRECIATION 2 ₱ 153,000
ACCUMULATED DEPRECIATION 3 -₱ 128,000
DEPRECIATION EXPENSE C ₱ 31,000

31 C
32 B
33 C
34 C
35 B
36 C
37 D
38 A
39 D
40 B
41 C
42 B
43 A

44 CASH ₱ 3,500,000
ACCOUNTS RECEIVABLE
CUSTOMER'S ACCOUNT ₱ 1,400,000
ADVANCES TO OFFICERS AND EMPLOYEES ₱ 700,000
ALLOWANCE FOR DOUBTFUL ACCOUNTS -₱ 100,000
SUBSCRIPTIONS RECEIVABLE-3 MONTHS ₱ 1,000,000 ₱ 3,000,000
INVENTORY ₱ 2,800,000
PREPAID INSURANCE ₱ 200,000
TOTAL CURRENT ASSETS D ₱ 9,500,000

45 ACCOUNTS PAYABLE ₱ 19,000

BONDS PAYABLE, 2020 ₱ 34,000
DISCOUNT ON BONDS PAYABLE -₱ 2,000
DIVIDENDS PAYABLE, 2/15/20 ₱ 5,000
INCOME TAX PAYABLE ₱ 9,000
TOTAL CURRENT LIABILITIES D ₱ 65,000

46 ORDINARY SHARES ₱ 3,750,000

BORROWED FUNDS ₱ 550,000
 REVENUE ₱ 410,000
OPERATING EXPENSES -₱ 320,000
NET INCOME ₱ 90,000
CASH DIVIDEND -₱ 15,000 ₱ 75,000
TOTAL ASSETS D ₱ 4,375,000

47 ACCOUNTS PAYABLE ₱ 108,900

ADVANCES TO EMPLOYEES ₱ 4,500
UNEARNED RENT REVENUE ₱ 28,800
ESTIMATED LIABILITY UNDER WARRANTIES ₱ 25,800
BONDS PAYABLE ₱ 555,000
DISCOUNT ON BONDS PAYABLE -₱ 22,500
TOTAL LIABILITIES B ₱ 700,500

48 SHARE CAPITAL ₱ 3,000,000

COST OF ABC CO SHARES ₱ 200,000
RETAINED EARNINGS ₱ 700,000
SHARE PREMIUM ₱ 500,000
TOTAL SHAREHOLDER'S EQUITY C ₱ 4,400,000

49 BEGINNING INVENTORY ₱ 1,600,000

PURCHASES ₱ 5,300,000
PURCHASE DISCOUNTS -₱ 100,000 ₱ 5,200,000
GOODS AVAILABLE FOR SALE ₱ 6,800,000
ENDING INVENTORY -₱ 2,150,000
COST OF GOODS SOLD A ₱ 4,650,000

50 PAYMENT TO SUPPLIERS ₱ 4,900,000

ACCOUNTS PAYABLE END ₱ 750,000
ACCOUNTS PAYABLE BEG. -₱ 500,000
TOTAL PURCHASES ₱ 5,150,000
INVENTORY BEG. ₱ 2,900,000
TOTAL GOODS AVAILABLE FOR SALE ₱ 8,050,000
INVENTORY END. -₱ 2,600,000
COST OF GOODS SOLD D ₱ 5,450,000

51 TELEPHONE EXPENSE ₱ 95,000

LEGAL FEES ₱ 74,000
OFFICERS' SALARIES ₱ 115,000
TOTAL GENERAL AND ADMINISTRATIVE EXP B ₱ 284,000

52 FACE VALUE ( 2000000*.98%) ₱ 1,960,000

CASH PAID -₱ 1,860,000
GAIN ON CHANGE IN FAIR VALUE ₱ 100,000
GAIN ON SALE (1960000-1860000) ₱ 20,000
 INCOME B ₱ 120,000

53 ORDINARY SHARE ₱ 4,000,000

PREFERENCE SHARE ₱ 1,000,000
SHARE PREMIUM ₱ 1,000,000
TREASURY -₱ 200,000
TOTAL RETAINED EARNINGS A ₱ 5,800,000

54 RETAINED EARNINGS ₱ 146,000

DIVIDENDS DECLARED -₱ 14,400
NET LOSS -₱ 32,000
CASH COLLECTED A ₱ 99,600

55 ACCOUNTS RECEIVABLE-2018 ₱ 750,000

REVENUE ₱ 3,500,000
ACCOUNTS RECEIVABLE-2019 -₱ 1,010,000
CASH PAYMENTS TO SUPPLIER B ₱ 3,240,000

56 ACCOUNTS PAYABLE BEG. ₱ 34,000

PURCHASES (560000+40000-50000) ₱ 550,000
ACCOUNTS PAYABLE END. -₱ 26,000
CASH PAYABLE TO SUPPLIERS C ₱ 558,000

57 ACCOUNTS RECEIVABLE JAN 1 ₱ 230,000

ACCOUNTS RECEIVABLE DEC 31 -₱ 290,000 -₱ 60,000
ACCOUNTS PAYABLE JAN 1 ₱ 194,000
ACCOUNTS PAYABLE DEC. 31 -₱ 224,000 -₱ 30,000
PREPAID RENT JAN 1 -₱ 124,000
PREPAID RENT DEC 31 ₱ 82,000 -₱ 42,000
NET INCOME ₱ 1,500,000
NET CASH PROVIDED BY CASHFLOW E ₱ 1,368,000

58 SOLD EQUIPMENT ₱ 25,200

PURCHASE EQUIPMENT -₱ 28,000
INVESTING ACTIVITY A -₱ 2,800

59 SALES PROCEEDS C ₱ 12,000

60 D.