Name:________________________ Date:____________

Subject Teacher:________________ Score:___________

Fundamentals of Accountancy Business and Management 2

Activity 2
I. Inventory
Happy Convenience Store
Before Jimmy opened the store on January 1, 2020, He asked you to help count
the merchandise inside the store. The results of the count are given below:

Merchandise Cost
18 cans of sardines ₱ 15 per can
13 sachets of coffee ₱ 6 per sachet
4 bags of candy ₱ 35 per bag
2 sacks of rice (100 kilos) ₱ 2,000 per sack
10 sachets of shampoo ₱ 6 per sachet
5 bath soap ₱ 15 each
3 bars of laundry soap ₱ 20 per bar
5 bottles of Mineral water ₱ 15 per bottle
8 Notebooks ₱ 20 per notebook

Notes:
1. The Mineral water were on consignment from Aqua Refilling Station.
2. Of the 8 notebooks inside the store, one is used for listings of customer credit.

*Report to Jimmy Chua the balance of the merchandise inventory account of Happy
Convenience Store.

Answer:

Merchandise Cost Total

18 cans of sardines ₱ 15 per can ₱
13 sachets of coffee ₱ 6 per sachet
4 bags of candy ₱ 35 per bag
2 sacks of rice (100 kilos) ₱ 2,000 per sack
10 sachets of shampoo ₱ 6 per sachet
5 bath soap ₱ 15 each
3 bars of laundry soap ₱ 20 per bar
8 Notebooks ₱ 20 per notebook
Merchandise Inventory as of December 31, 2019 ₱

Notes:
1.
2.
 II. Prepaid Expenses

Happy Convenience Store : Prepayments

Jimmy paid premium of ₱ 3,500 for one-year fire insurance in the name of the
store on September 1, 2019. How much should prepaid insurance be on December
31, 2019?
Answer

III. Property, Plant and Equipment

Happy Convenience Store : Property, Plant and Equipment.

On January 1, 2020. Jimmy purchased an electronic cash register to be used in the
Happy Convenience Store. The cash register was purchased at a cost of ₱ 20,000.
Jimmy depreciates the cash register over six years.

Determine the following:

1. Equipment
2. Annual depreciation
3. Accumulated depreciation as of December 31, 2019.
4. Net book value of equipment as of December 31, 2019.

Answer

Cost of electronic cash register ₱

Estimated useful life (in years)
Annual depreciation ₱
Number of years depreciated
Accumulated depreciation ₱
Net book value ₱