UM Digos College

Department of Accounting Education

Roxas Extension, Digos City

ACCBP 100 – SECOND EXAM

I. Problem Solving. In a clean paper, answer the problem below. Avoid erasures as much as possible. The
criteria for checking is shown below.

Rey Ocampo Bookstore engaged into the following transactions during July 2020:

July 1 Ocampo began business by placing P350,000 in the business.

1 Bought book shelves for P75,000, paying cash of P20,000 and the balance on account.
2 Purchased merchandise on credit from Digao Publishers, terms 2/10, n/30, FOB Destination, P50,000.
2 Paid rent for the month, P10,000.
3 Sold merchandise for cash, P7,000.
5 Sold merchandise on credit to Velasco Books Shop, terms 1/10, n/30, FOB Shipping point, P34,000.
6 Purchased and received merchandise on credit from Expressions Bookstore, terms 2/10, n/30, FOB
Shipping point, P42,000.
7 Received freight bill from Super Express from shipment received on July 6, P500.
9 Sold merchandise on credit to Recoletos Bookstore, terms 1/10, n/30, FOB destination, P38,000.
10 Purchased merchandise from Digao Publishers, terms 2/10, n/30, FOB shipping point, P26,500,
including freight costs of P500.
11 Received freight bill from Super Express for sale on July 9, P350.
11 Paid Digao Publishers for purchase of July 2.
13 Received payment in full for Velasco Books Shop’s purchase of July 5.
14 Paid Expressions Bookstore half the amount owed on July 6 purchase. A discount is allowed on partial
payment.
15 Returned faulty merchandise worth P3,000 to Digao Publishers for credit against purchase of July 10.
16 Purchased office supplies from Olamit Supplies for P4,750, terms n/10.
17 Received payment from Recoletos Bookstore of the purchase of July 9.
18 Paid Digao Publishers in full for amount owed on purchase of July 10, less return on July 15.
19 Sold merchandise to Sir Ed Trading on credit, terms 2/10, n/30, FOB shipping point, P7,800.
20 Returned for credit several items of office supplies purchased on July 16, P1,280.
22 Issued credit memo to Sir Ed Trading for returned merchandise, P1,800.
25 Paid for purchase of July 16, less returns on July 20.
26 Paid freight company for freight charges for July 7 and 11.
27 Received payment of amount owed by Sir Ed Trading for purchase of July 19, less credits of July 22.
28 Paid Expressions Bookstore for the balance on July 6 purchase.

Required:
a. Prepare journal entries for Rey Ocampo Bookstore.
b. Establish a ledger account for each account and post amounts on appropriate accounts.
c. Prepare a trial balance.

Criteria 5 points 4 points 3 points 2 points Weight

Completeness 0-2 missing 3-5 missing 6-9 missing More than 10
items items items missing items 2 x _____
Presentation 0-2 erasures 3-5 erasures 6-9 erasures and More than 10
(erasure and and follows and follows does not follow erasures and
format) proper format proper format proper format does not follow
proper format 1 x _____
Accuracy 0-2 mistakes 3-5 mistakes 6-9 mistakes More than 10
mistakes 3 x _____

TOTAL 30 POINTS

"Cheating is easy… Try something more challenging… like being faithful and honest. "