Happy Convenience Store

1.

Denomination Number of Bills Amount

Php 100 3 Php 300.00
Php 50 5 250.00
Php 20 5 100.00
Php 10 5 50.00
Php 5 10 50.00
Php 1 10 10.00
Php 0.25 25 6.25
Total cash on hand Php 2,306.25
Cash in bank 26,780.00
Total cash 29,086.25
Cash Equivalents 100,000.00
Total Cash and Cash Equivalents Php 129,086.50

2.

Merchandise Cost Total

2 bags of candy P 30 per bag Php 60.00
10 sachets of coffee P 6 per sachet 60.00
10 sachets of laundry powder P 15 per sachet 150.00
1 sack of rice (50 kilos) P 1,800 per sack 1800.00
10 cans of sardines P 15 per can 150.00
4 notebooks P 25 per notebook 100.00
Merchandise Inventory as of December 31, 2019 Php 2320.00

9
3. Prepaid Insurance Expense = (Php 2500)( )
12
= Php 1,875.00

4.
 Cost of electronic cash register Php 15,000.00
Accumulated Depreciation (6,000.00)
Net book value Php 9,000.00
Sol’n:

Php 15,000
Annual Depreciation =
5 years
= Php 3,000.00

Accumulated Depreciation = (Php 3,000)(2 years)

= Php 6,000.00

5.

a. November 25, 2019

Full cost of one sack of rice Php 1,800.00

Number of sacks purchased 5
Total cost of purchase 9,000.00
Total discount (180.00)
Discounted cost to be paid Php 8,820.00
Sol’n

Total discount = (Php 9,000)(0.02)

= Php 180

b. December 15, 2019

Mrs. Coney Alvarez is liable for the full cost of Php 9,000.00 because the date exceeds the discount term.