1ST PRACTICE SET on FABM2

Instruction:

1. From your respective classes, except for modular hard students, form a group of not less than 8
but not greater than 12 members and answer the practice sheet provided below in a long bond
paper (either handwritten or printed). There’s no need to submit group names to your teacher as
output will still be submitted on hand.
2. At the end page of your output, provide the summary of contribution of each member in a narrative
form. 75% of the output’s grade will come from the overall performance of the group and 25% will
be the individual contribution. Thus, any member who did not contribute will only receive 75% of
the group’s overall output grade.
3. Ensure to finish all requirements on or before December 3, 2021 and be submitted to the teacher in
a hard copy form before or during the said date. Late submission will still be accepted but will have
a demerit point of 1% each day of delay.
4. There are three other outputs that will be given after we discuss its respective topics so keep on
track of my announcements.
5. The grade for this output will be multiplied to 40% and be added to your first quarter grade in your
OED which will be 60%, to form part of your final first quarter grade, so please don’t be negligent in
this output and with the other incoming output.
6. God bless you and your group mates. For further clarifications, questions and violent reactions,
please look for your class representative and ask favour to send your message to our messenger
chat group so that everyone will be informed of the concern. Representatives should address the
concern properly.
 RDC SERVICES
CHART OF ACCOUNTS

ASSETS LIABILITIES

Current Assets Current Liabilities

1001 Cash in Bank 2001 Accounts Payable
1002 Accounts Receivable 2002 Notes Payable-ST
1102 Estimated Uncollectible Accounts 2003 Loans Payable
1003 Notes Receivable 2004 Accrued Interest Expense
1004 Inventory
1104 Purchases Non-Current Liabilities
1204 Freight-in 2005 Unearned Service Revenue
1304 Purchase Returns and Allowances 2006 Notes Payable-LT
1404 Purchase Discount
1005 Unused Office Supplies OWNER’S EQUITY
1006 Prepaid Rent Expense
1007 Prepaid Interest Expense 3001 Dela Cruz, Capital
3101 Dela Cruz, Drawing
Non-Current Assets 3201 Income and Expense Summary
1008 Furniture and Fixtures
1108 Accumulated Depreciation-F&F INCOME STATEMENT ACCOUNTS
1009 Machinery
1109 Accumulated Depreciation-Machinery 4001 Sales Revenue
1010 Building 4102 Service Revenue
1110 Accumulated Depreciation-Building 4101 Sales Return and Allowances
4201 Sales Discount

5001 Freight-out
5002 Office Supplies Expense
5003 Interest Expense
5004 Rent Expense
5005 Uncollectible Accounts Expense
5006 Depreciation Accounts-F&F
5007 Depreciation Expense-Machinery
5008 Depreciation Expense-Building
 PRACTICE SET FOR SERVICE-ORIENTED BUSINESS

On January 2, 2020, Raquelita Dela Cruz, an entrepreneur, opened up her business, RDC Services, which
specializes in providing service to different companies. The following are the transactions made during the
year:

01-02-20 Raquelita invested an amount of P950,000.

Rented a commercial space with monthly rental fee of P105,000.
01-03-20 Bought bond paper and other office supplies for regular use. Overall, he incurred P5,500.
Purchased a set of furniture consisting of a table and four chairs worth P250,000. He paid
70,000 down payment and the rest are payable monthly for 9,000.
01-10-20 Purchased machinery worth 350,000 and issued a promissory note payable within the
year, for the said purchase.
01-20-20 Raquelita paid the local government for business permit worth P5,600.
01-21-20 Raquelita rendered a service to Agapito Hampaslupa. and received P25,000 from it.
02-14-20 Raquelita rendered service to Mana Bidang Lending for P40,000 on account.
02-25-20 Received short term notes valuing P80,000 for services rendered to ABCSBN Network.
02-28-20 Received cash of P30,000 from Agapito Hampaslupa for services to be rendered on May.
03-01-20 Hired two employees with salary of P16,000 each monthly.
03-15-20 Used up all office supplies from previous purchase, so they repurchased the same office
supplies in double volume.
03-25-20 Collected the third of Mana Bidang Lending’s credit.
04-05-20 Rendered service to Carla Manalangsalang worth P60,000.
04-15-20 Paid salary of her employees for 1 ½ month.
04-20-20 Because Carla Manalangsalang liked the previous service rendered by RDC Enterprise,
Carla requested once again for their service in the future with a 95% service rate based on
the previous fee.
04-25-20 Rendered service to Angelita Manobo Shop for P15,000.
04-30-20 Acquired a commercial space building worth P2,000,000. Raquelita paid the 4 th of the price
and the rest she issued a promissory note payable for 2 years with 12% interest annually.
05-02-20 Loaned an amount of P200,000 to the bank payable for one year.
05-15-20 Rendered service to Carla Manalangsalang and received a check with an amount of the
new rate agreed by both parties. The check was immediately deposited to the bank during
the day with a 3-day clearing time. Raquelita automatically added the check deposit in his
book.
05-16-20 Received 1/3 payment of the note receivable from ABCSBN Network.
05-30-20 Paid half of the note payable issued for the purchase of machinery.
06-02-20 Maria withdraw P150,000 to celebrate her birthday.
06-06-20 Paid salaries of employees from the half part of April up to the end of May.
06-18-20 Maria collected all her short term notes notes receivable and 90% of her customer
account.
06-20-20 Maria paid 50% of all her accounts and short term-note payable balance.
06-25-20 Paid salaries of employees for the remaining months.
06-27-20 Paid the loan with 12,000 interest.
06-30-20 Raquelita entered into merchandising as well.

Additional Information:
  Monthly rental fee is worth P15,000.
 P500 worth of supplies remained unused at the end of June 30, 2020.
 Raquelita rendered service to Agapito Hampaslupa on May 24, 2020.
 Interest on bank loans has to be paid with 12% annual interest rate.
 10% of the remaining accounts receivable is deemed uncollectible.
 The acquired building has 10 years estimated useful life and 150,000 salvage value.
 Acquired machinery and furniture and fixtures has 5 years useful life with no salvage value.
 The book was not able to inform Raquelita that the check ordered from Carla Manalangsang was
marked “NSF”.

Requirements:

 Analyse transactions and prepare journal entries for each transaction.

 Use a formal account ledger to post the transactions.
 Summarize the ledger and input the figures in the unadjusted trial balance.
 Prepare adjusting journal entries.
 Prepare an adjusted trial balance.
 Prepare financial statements (Financial Position, Financial Performance, Cash Flows, Changes in
Owner’s Equity)
 Prepare closing entries.
 Prepare post-closing trial balance.
 Prepare Reversing entries if necessary.
 PRACTICE SET FOR MERCHANDISING BUSINESS

July 5 An investment was made amounting to 500,000.

July 18 Purchased merchandise from Jericho Enterprise amounting to 540,000. Half was paid and
half is payable on account.
July 25 Sidney bought merchandise worth 90,000 with invoice number 20011. Cost of inventory is
85,000
July 30 RDC rendered a service to Angelica Mae and received a promissory note with face
amount of P10,000 payable within four months.
August 10 Mark John bought merchandise of 75,800 with invoice number 20012. Cost of the goods
sold is 74,000.
August 20 Purchased merchandise from Jericho enterprises costing 85,000.
August 23 Rendered a service to Jane Marie for 23,000 on account.
August 25 Sold merchandise to Queenie worth 300,000 with invoice number 20013. The cost of the
sold inventory is 240,000.
August 30 Paid employees’ salary for 64,000 from July to August.
September 6 Hired a third employee with salary of 16,000 a month.
September 18 Raquelita withdraw 200,000 cash for personal.
September 23 Raquelita withdraw 20,000 for purchase of inventory to be sold.
September 25 Collected half of its receivable from Jane Marie.
September 30 Rendered service worth 30,000 to Sidney.
October 7 Sold merchandise to Shamil worth 210,000 with invoice number 20014. The cost of
inventory
is 192,300.
October 15 Paid half of its account balance to Jericho Enterprise.
October 28 Rendered service to Emelyn worth 180,000.
November 18 Paid all account balance to Jericho Enterprise.
November 24 Purchased 250,000 worth of merchandise from Jericho Merchandise.
December 18 Sold merchandise to Angelica worth 80,000 with invoice number 20015. Cost of the said
Sale is worth 5,000.
December 26 Collected the notes receivable from Angel Mae.
December 31 Made an inventory counting for all its merchandise transaction.

Additional Information:

 The sales amount of Angelica’s transaction on December 18 was supposed to be 8,000 but the
invoice’s amount written was 80,000. Cost value is correct.
 Amount received from Emelyn last October 28 was supposed to be a three-month service.
However, RDC wasn’t able to provide service after October 28.
 The fixed assets are still depreciable at the end of the year.

Requirements:

 Analyse transactions and prepare journal entries for each transaction.

 Use a formal account ledger to post the transactions.
 Summarize the ledger and input the figures in the unadjusted trial balance.
 Prepare adjusting journal entries.
 Prepare an adjusted trial balance.
 Prepare financial statements (Financial Position, Financial Performance, Cash Flows, Changes in
Owner’s Equity)
 Prepare closing entries.
 Prepare post-closing trial balance.
 Prepare Reversing entries if necessary.