Fundamentals of Accounting and Business MNGMNT 2 and Business Math Final

ILYNE BERZAMINA
“Train up a child in the way he should

go; and when he is old, he will not
depart from it” Proverbs 22:6
Aduana, N. L. (2016).Fundamentals of Accountancy, Business Management2. C&E Publishing
Lopez, R. M. (2016-2017).Learning the Basic of Accounting.MS Lopez Printing and Publishing
2
TABLE OF CONTENTS
Page
TitlePage I
Table of Contents
First Quarter
Learning Objectives 4
W1: Review on Basic Accounting Terms (Accounting Equation) 5
W2: Accounting Equation 8
W3: Types of Major Accounts 11
W4: Accounting Cycle (Rule of Debit and Credit) 13
W5: Accounting Cycle (Journalizing) 18
W6: Accounting Cycle of a Merchndising Business 20
W7: Statement of Financial Position 23
W8: Statement of Comprehensive Income 26
W9: Statement of Comprehensive Income 29
W10: Statement of Changes in Equity 32
W11: Statement of Cash Flows 36
Second Quarter
Learning Objectives
W12: Financial Analysis (Vertical and Horizontal Analysis) 44
W13: Financila Analysis (Financial Ratios) 46
W14: Bank Forms/Business Forms 50
W15: Bank Reconciliation 52
W16: Taxation 55
W17: Practice Set 59
Bibliography 89
3
First Quarter
Learning Objectives:
o Understand the elements of the accounting equation
o Use the accounting equation to solve problems
o To be able to identify the account as assets, liabilities, capital, income or expenses and its effect
on the accounting equation
o To be able to identify business and nonbusiness transactions, enumerate the types of business
documents, recite the rules of debit and credit, and apply these in simple cases
o To be able to apply all the steps in Accounting cycle for a service type of Business; to able to
solve and analyze simple transaction.
o To be able to understand the accounting cycle of a merchandising business
o To be able to journalize transactions related to the merchandising business
o To be able to prepare a statement of cost of goods sold and gross profit
o Identify the elements of the SFP and describe each of these items for a single/sole
proprietorship business
o Prepare an SFP for a single/sole proprietorship business using the report form
o Prepare an SFP for a single/sole proprietorship business using the account form
o Identify the elements of the SCI and describe each of these items for a service business and a
merchandising business
o To be able to calculate the Cost of Good Sold of a company
o Identify the elements of the SCI and describe each of these items for a service business and a
o Prepare an SCI for a service business using the single-step approach
o Prepare an SCI for a merchandising business using the multi-step approach.
o To be able to identify the elements of SCE and prepare a statement of changes in
equity for a single, partnership and corporations forms of businesses
o To be able to identify the elements of SCF and prepare a statement of cash flows
4
HOLY CHILD COLLEGE OF DAVAO
Opus Deo Dignum
S.Y. 2019-2020
SUBJECT: Accounting 2/Business Math INSTRUCTOR:

Student’s
Time Start:
Name:
Grade Level: Time End:
Date: Quarter: 1
WORKSHEET # 1
Activity Number: 1
I. Content Standard: To solve problems applying the accounting equation
II. Objectives: To be able to

i. Understand the elements of the accounting equation
ii. Use the accounting equation to solve problems
III. Materials: Paper, pen and Calculator
IV. Procedures / Instructions: Transaction
A. At the beginning of the year, Covid Enterprise had total assets of P700,000 and
total liabilities of P500,000. Answer the following questions:
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1. If total asset increased by P150,000 during the year and total liabilities decreased by
P80,000, what is the amount of the owner’s equity at the end of the year.?
Ans. ____________________________________
2. During the year, total liabilities increased by P10,000 and owner’s equity decreased by
P70,000, what is the amount of the total assets t the end of the year?
Ans. ____________________________________
3. If total assets decreased by P90,000 and owner’s equity increased by P110,000 during
the year, what is the amount of total liabilities at the end of the year?
Ans. ____________________________________
4. During the year, total liabilities increased to P650,000 and owner’s equity increased to
P40,000, what is the amount of total assets at the end of the year?
Ans. ____________________________________
5. If total assets increased to P850,000 during the year and total liabilities decreased to
P400,000, what is the amount of owner’s equity at the end of the year?
Ans. ____________________________________
B. Computation of Unknown Accounting Values

Calculate the missing amount that relates to the financial position of an
enterprise.
1. As of the end of the period, Hotel del Luna has a total asset equal to P970,000 and total
liabilities equal to P500,000. What is the equity of Hotel del Luna as of the end of the
period? _____________________
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2. Jang Man-wol opens a hotel business and started a capital of P200,000. At the
beginning of the year, the creditors’ claims are P100,000 and the owners’ equity is 80%
of the total assets. How much is total assets at the end of the year?
________________________
3. Park Yoo-na starts a repair shop business in Korea. At the beginning of the period his
capital is P350,000 which equaled to his investment. At the end of the period, his capital
balance is P450,000 which is 60% of total assets. How much represents the total claims
from outside creditors? _______________________
C. Determination of Unknown Accounting Elements

The following relates to the financial position of the enterprise:
Case 1 Case 2 Case 3 Case

4
Assets P 175,000 P450,000 P ?
P380,000
Liabilities ? 100,000 120,000
?____
Owners Equity P 75,000 P ? P 180,000 P -0-
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Opus Deo Dignum
S.Y. 2019-2020

Student’s
Time Start:
Name:
Date: Quarter: 1
WORKSHEET # 2
Activity Number: 1
I. Content Standard: To solve problems applying the accounting equation
II. Objectives: To be able to

i. Understand the elements of the accounting equation
ii. Use the accounting equation to solve problems
IV. Procedures / Instructions:
1. Arrange the following asset, liability, and equity titles in a table: Cash; Accounts
Receivable; Office Supplies; Office Equipment; Exploration Equipment; Accounts
Payable; Lee Gon, Capital; Lee Gon, Withdrawals; Revenues; and Expenses.
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2. Use additions and subtractions to show the effects of each transaction on the
accounts in the accounting equation. Show new balances after each transaction.
Lee Gon started a new business and completed these transactions during August:
Aug. 1 Gon invested PHP48,000 cash in the business.

1 Rented office space and paid PHP800 cash for the August rent.
3 Purchased exploration equipment for PHP22,000 by paying PHP12,000
cash and agreeing to pay the balance in 3 months.
5 Purchased office supplies by paying PHP1,500 cash.
6 Completed exploration work and immediately collected PHP420 cash for
the work.
8 Purchased PHP1,350 of office equipment on credit.
15 Completed exploration work on credit in the amount of PHP8,000.
18 Purchased PHP700 of office supplies on credit.
20 Paid cash for the office equipment purchased on August 8.
24 Billed a client PHP2,400 for work completed; the balance is
due in 30 days.
28 Received PHP5,000 cash for the work completed on August 15.
30 Paid the assistant’s salary of PHP1,100 cash for this month.
30 Paid PHP340 cash for this month’s utility bill.
30 Gon withdrew PHP1,050 cash from the business for personal use.
Show your Answer on the space provided below:
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Opus Deo Dignum
S.Y. 2019-2020

Student’s Name: Time Start:
Date: Quarter: 1
WORKSHEET # 3
Activity Number: 1
I. Content Standard: To be define, identify, and classify accounts according to the

five major types
II. Objectives: To be able to identify the account as assets, liabilities, capital,

income or expenses and its effect on the accounting equation.
A. Filling the blanks. On the space provided, indicate the APPROPRIATE

ACCOUNT TITLE for the following:
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____________ 1. It is the obligations of the company payable in money, goods or
services.
____________ 2. These are non-current tangible assets.
____________ 3. These assets are identifiable, non-monetary assets without physical

substance.
____________ 4. It is the claim of the owner also known as the capital.
____________ 5. It is an expense for leased office space, equipment or assets rented

from others.
____________ 6. Examples of this are cash, account receivable and prepaid
expenses.
____________ 7. It is a written promise from the customer to pay his receivables on a
certain future date.
____________ 8. An account title to describe money either paper, or in coins and

money substitute like checks, postal money orders, bank drafts, etc.
____________ 9. An account title for financial obligation of an enterprise that

constitutes oral or verbal promise to pay.
____________ 10. Includes computers, typewriters, adding machines and the like that
are used int the store.
____________ 11. Account title for the income received from selling of goods or
commodities to customers.
____________ 12. Account title for the income received from rendering of professional
or non-professional service to clients or customers.
____________ 13. Represents the allocated portion of property and equipment over
the number of years.
____________ 14. It is the obligations of the company payable in money, goods or

services.
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B. Identifying the Current and Fixed Assets. Classify the following asset accounts on
the space provided, Write CA if Current Asset and PE if Property, Plant and Equipment.
_____1. Land ____8. Unused Office Supplies
_____2. Accounts Receivable ____9. Delivery Equipment
_____3. Building ____10. Prepaid Rental
_____4. Unexpected Insurance ____11. Advances to Employees
_____5. Cash on Hand ____12. Furniture and Fixture
_____6. Petty Cash on Hand ____13. Prepaid Rental
_____7. Accrued Income Receivable
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Opus Deo Dignum
S.Y. 2019-2020

Date: Quarter: 1
WORKSHEET # 4
Activity Number: 1
I. Content Standard: The business transactions and their analysis, to include

definition and nature of business transactions, types of source or business
documents, and the rules of debits and credits
II. Objectives: To be able to identify business and nonbusiness transactions,

enumerate the types of business documents, recite the rules of debit and credit, and
apply these in simple cases
A. The following paired transaction are related to each other’s. Determine the
value received or debit and the value parted with credit.
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Debit Credit
A. 1. E. Gevera invested cash in the business. __________ __________

2. E. Gevera withdrew cash from her business. __________ __________
B. 1. Bought supplies inventory on account from Te Co. __________ __________

2. Paid our account with Te Co. __________ __________
C. 1. Rendered services on account to M. Peñaflor Co. __________ __________

2. Collected the accounts of M. Peñaflor Co. __________ __________
D. 1. Bought a car for cash from Toyota. __________ __________

2. Sold merchandise for cash to R. Berthay & Co. __________ __________
E. 1. Received a note for the merchandise sold. __________ __________

2. Collected cash for the note received __________ __________
B. On the space provided, indicate a “check mark” as to what normal balance

the following account have.
Debit Credit
Example: Cash on Hand _______ ________
1. Account Receivable _________ ________

2. Service Income _________ ________
3. Lee Min Ho, Capital _________ ________
4. Cash In bank _________ ________
5. Land _________ ________
6. Furnitures and Fixtures _________ ________
7. Sales _________ ________
8. Taxes and Licenses _________ ________
9. Building _________ ________
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10. Note Receivable _________ ________
11. Prepaid Expenses _________ ________
12. Unearned Service Income _________ ________
13. Accounts Payable _________ ________
14. Petty cash fund _________ ________
15. Lee Min Ho, Withdrawal _________ ________
C. On the space provided, indicate a “check mark” as to the effects on the

balance of the following accounts.
Increased Decreased
Example: Cash in bank was debited _______ _________
1. Account Receivable was credited _________ _________
2. Service Income account was credited _________ ________
3. Accounts Payable was debited _________ ________
4. Sung, Sun Woo Capital was credited _________ ________
5. Salaries expense was debited _________ ________
6. Prepaid Insurance account was credited _________ ________
7. Notes Payable account was debited _________ ________
8. Sung, Sun Woo withdrawal was debited _________ ________
9. Cash Account was credited _________ ________
10. Supplies expense was debited _________ ________
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Activity Number: 2
I. Content Standard: Accounting Cycle (Depreciation, Adjusting Entries)
II. Objectives: To be able to solve problem on how to estimate depreciation

and to be able to prepare adjusting entries.
IV. Procedures / Instruction:
A. Compute the depreciation expense for the following independent cases. Use
the straight-line method of depreciation. Show your computation on the space
provided.
1.Kim Bok-joo purchased a delivery vehicle on January 1, 2016 amounting to

PHP250,000. It is estimated that the vehicle will be useful for 10 years. The vehicle can be sold
for PHP10,000 at the end of its useful life. If the accounting period being reported by Kim Bok-
joo is one (1) year from January – December 2016, how much is the depreciation expense?
2. Lee Sung-kyung purchased a delivery vehicle on April 1, 2016 amounting to PHP250,000. It

is estimated that the vehicle will be useful for 10 years. The vehicle can be sold for PHP10,000
at the end of its useful life. If the accounting period being reported by Lee Sung-kyung is one (1)
year from January-December 2016, how much is the depreciation expense?
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3. Jong-suk purchased a delivery vehicle on January 1, 2016 amounting to
PHP250,000. It is estimated that the vehicle will be useful for 10 years. The vehicle can be sold
for PHP10,000 at the end of its useful life. If the accounting period being reported by Jong-suk
is one (1) month (January 2016), how much is the depreciation expense for the month?
B. For each of the following items, write the journal entry first (if one is needed) to
record the transactions; and then the adjusting entry, if any is required, for the end of
the accounting year of Ron Car Rental Company on December 31, 2016.
1.On December 1, borrowed PHP300,000 cash from Nation Bank by issuing a

promissory note with an interest of 12% per annum payable in three months.
2. On December 1, paid rental for six months beginning December 1, 2016 to

May 31, 2017, at PHP3,000 per month. 
3.On December 31, 2016, received telephone bills for the month December
amounting to PHP5,600. The bill will be paid on January 2017. 
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Opus Deo Dignum
S.Y. 2019-2020

Date: Quarter: 1
WORKSHEET # 5
Activity Number: 1
I. Content Standard: The business transactions and their analysis, to include

definition and nature of business transactions, types of source or business
documents, and the rules of debits and credits
II. Objectives: To be able to apply all the steps in Accounting cycle for a service
type of Business; to able to solve and analyze simple transaction.
IV. Procedures / Instructions: Journalizing, Posting and preparations of Trial Balance.
Mr. Naofumi Iwatani is the owner of Shield Hero Fast Delivery Service, a cargo
forwarder that is based on Melromarc but operates within Anime World territory. The
transactions for the month of August follow.
Aug. 2 – Deposited to the Bank of Melly the amount of P400,000 as initial investments.
4 – Purchase supplies on account P5,000.
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8 – Acquired a second hand service vehicle for delivery costing P100,000, paying
P25,000 in cash and issued a note for the balance.
13 – Received a rental bill from Idol Rabier Realty for the month, P15,000.
15 – Received cash from a customer, P18,000 for delivery services.
17 – Paid utilities expense, P9,000.
20 – Billed a customer for delivery service on account, P20,000.
22 – Partially collected P15,000 of August 20 accounts.
24 – Partial payment of August 4 account, P2,000.
26 – Received cash from a customer, P15,000 for delivery services.
27 – Received a bill from Shell Station for gasoline withdrawn, P25,000.
28 – Withdrew P5,000 cash from his business for personal use.
30 – Paid salaries of Filo and Raphtalia for the month, P10,000.
31 – Billed a customer for delivery service on account, P18,000.
Required:
1. Make a journal entry for each transaction in a journal sheet.
2. Set up the following T-Accounts: Cash in Ban ; Accounts

Receivable ;Supplies Inventory; Delivery Equipment; Accounts
Payable; Notes Payable; Iwatani, Capital; Iwatani , Drawing;
Delivery Income; Utilities Expense; Rental Expense; Salaries
Expense and Gas & Oil. (Write your answer on a clean sheet of
paper)
3. Record the transactions directly into the T-accounts using the

dates to identify each transaction.
4. Prepare a Trial Balance.
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Opus Deo Dignum
S.Y. 2019-2020

Date: Quarter: 1
WORKSHEET # 6
Activity Number: 1
I. Content Standard: The Accounting Cycle of A Merchandising Company including

Journalizing of transactions using the general and special journals.
II. Objectives: To be able to understand the accounting cycle of a

merchandising business • To be able to journalize transactions related to the
merchandising business • To be able to prepare a statement of cost of goods sold
and gross profit
IV.Procedures / Instructions:
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A. On January 12, Fairy Tail Enterprise bought merchandise from My Hero
Academia Store on credit, P100,00. Term: 2/10, n/30. P20,000 cost of
merchandise was later returned. The credit memo was dated January 15.
Payment was made on January 20.
Determine the account debited and credited.
BOOK OF FAIRY TAIL ENTERPRISE BOOK OF MY HERO ACADEMIA STORE
Jan. 12 _________________________ Jan. 12 _____________________________

_________________________ _____________________________
_________________________ _____________________________
Jan. 15_________________________ Jan. 15______________________________

_________________________ ______________________________
_________________________ ______________________________
Jan. 20_________________________ Jan 20______________________________

_________________________ ______________________________
_________________________ ______________________________
B. Make debit and credit entries on the following selected transaction of Tropical
Cellphone House, owned and managed by Mr. Park Seungjo , CPA.
1.Bought merchandise on account from Gong Yoo Co. P60,000. Term 5% - 30 day.
2. Returned P5,000 cost of merchandise to Gong Yoo Co.
3. Paid the account with Gong Yoo Co. availing 5% discount.

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4. Sold merchandise on account to Song Jong-ki Supermarket, P80,000. Terms
2/10, n/30.
5. Received P10,000 cost of merchandise returned by Song Jong-ki Supermarket and

issued credit memo.
6. Collected in full the account of Song Jong-ki at a discount.
Write your answers below.
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Opus Deo Dignum
S.Y. 2019-2020

Date: Quarter: 1
WORKSHEET # 7
Activity Number: 1
I. Content Standard: The learner s demonstrates an understanding of account

titles under the assets, liabilities, and capital accounts of the Statement of
Financial Position, namely, cash, receivables, inventories, prepaid expenses,
property, plant and equipment, payables, accrued expenses, unearned income,
long-term liabilities and capital that will equip him / her in the preparation of the
SFP using the report form and account form
II. Objectives:
1. Identify the elements of the SFP and describe each of these items
for a single/sole proprietorship business
2. Prepare an SFP for a single/sole proprietorship business using the
report form
3. Prepare an SFP for a single/sole proprietorship business using the
account form
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IV.Procedures / Instructions: Compute and Answer the following questions
1.Ponyo Tutorial had current assets amounting to Php 100,000. Noncurrent assets for
the year totaled Php 76,000. How much is the company’s total assets?
2. Whisper of the Heart Company total liabilities amounted Php 10,000. Total equity had
an ending balance of Php 20,000. How much is total assets?
3.Totoro Neighborhood Service had the following accounts at year end: Cash-250,000,
Accounts Payable-70,000, Prepaid Expense-15,000. Compute for the company’s current assets.
4. Arriety’s Selling Company Accounts Receivable amounted to Php 500,000. Prepaid

Expense and Unearned Income totaled Php 30,000 and Php 10,000 respectively. Cash balance
amounted to Php 100,000 while Accounts Payable and Inventory totaled to Php 20,000 and Php
10,000 respectively. How much is the company’s current assets? Current liabilities?
5.Kikis Delivery Service Total Liabilities and Equity amounted to Php 285,000. Total noncurrent
assets ended at Php 85,000. Cash totaled Php50,000. Inventory amounted to Php100,000.
Assuming the company had no other assets, how much is Accounts Receivable?
6.Spirited Away’s Total assets amounted to Php575,000. Total equity amounted to Php
250,000. Accounts Payable amounted to Php 50,000 while Unearned Income totaled Php
85,000. Assuming there are no other current liabilities, compute for the company’s noncurrent
liabilities.
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Activity Number: 2
Howls moving Castle Merchandising provided the following accounts

appearing on its ledger as of December 31, 2019:
Cash in Bank 1,800,000

Account Receivable 2,100,000
Inventories 800,000
Office Supplies 50,000
Note Receivable 1,000,000
Accounts Payable 1,200,000
Long Term Investment 1,500,000
Trading securities 900,000
Property, plant and equipment 5,000,000
Bonds payable 4,000,000
Accrued expenses 350,000
Petty cash fund 30,000
Allowance for doubtful accounts 250,000
Accumulated depreciation 1,500,000
Patent 300,000
Prepaid advertising 70,000
Howls, Capital 7,300,000
Howls, Drawing 850,000
Advances to employees 200,000
Required: Prepare the Statement of Financial Position as of December 2019. One

in Report Form and one in an Account Form.
25
Opus Deo Dignum
S.Y. 2019-2020

Date: Quarter: 1
WORKSHEET # 8
Activity Number: 1
I. Content Standard: The learners demonstrate an understanding of the service

income and operating expenses of a service business as well as sales, contra
sales, purchases, contra purchase accounts, cost of goods sold and general
administrative and selling expenses of a merchandising business that will equip
him / her in the preparation of the SCI for both service and merchandising
businesses
II. Objectives:
1. Identify the elements of the SCI and describe each of these items
for a service business and a merchandising business
2. to be able to calculate the Cost of Good Sold of a company.
IV.Procedures / Instructions: Compute and Answer the following questions:
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1. Tanjiro Kamado Company generated revenues amounting to Php 100,000.
Expenses for the year totaled Php 76,000. How much is the company’s net income for the
year?
2. Nezuko Kamado Company salaries to sales agents amounted to Php 10,000.

Salaries of accountants amounted to Php 20,000. No other expenses were incurred. How
much is the company’s general and administrative expense?
3. Zenitsu Agatsuma Company inventory amounted to 250,000. Net purchases

amounted to 70,000. Freight In totaled 15,000. Compute for the company’s cost of goods
available for sale.
4. Inosuke Hashibira Selling Company Sales amounted to Php 500,000. Sales returns
and sales discounts amounted to Php 30,000 and Php 10,000 respectively. Purchases of the
company totaled Php 100,000 while purchase returns and purchase discounts amounted to
Php 20,000 and Php 10,000 respectively. How much is the company’s Net Sales? Net
Purchases?
5. Hashira Company’s Cost of Goods Sold amounted to Php 285,000. Net cost of
purchases totaled Php 85,000. Beginning inventory amounted to Php 250,000. Sales
amounted to Php 500,000. Compute for the company’s Ending Inventory.
6. Gross profit of Butterfly Estate amounted to Php 175,000. Beginning Inventory

totaled Php 250,000. Ending Inventory amounted to Php 50,000 while Net Cost of Purchases
totaled Php 85,000. Compute for Happy’s Net Sales.
Activity Number: 2
In each separate cases, compute the Cost of Sales:
CASE 1: Purchases P 90,000

Purchases Discounts 10,000
Merchandise Inventory, end 100,000
27
Merchandise Inventory, beg 60,000
CASE 2: Freight – In P 10,000

Purchases 120,000
Purchase Returns & Allowances 15,000
Merchandise Inventory, beg. 80,000
Merchandise Inventory , end 105,000
CASE 3: Purchase Discounts P 15,000

Purchase Returns & Allowances 25,000
Freight – In 20,000
Merchandise Inventory, beg. 215,000
Merchandise Inventory , end 230,000
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Opus Deo Dignum
S.Y. 2019-2020

Date: Quarter: 1
WORKSHEET # 9
Activity Number: 1
I. Content Standard: The learners demonstrate an understanding of the service

income and operating expenses of a service business as well as sales, contra
sales, purchases, contra purchase accounts, cost of goods sold and general
administrative and selling expenses of a merchandising business that will equip
him / her in the preparation of the SCI for both service and merchandising
businesses
II. Objectives:
1. Identify the elements of the SCI and describe each of these items
for a service business and a merchandising business
2.Prepare an SCI for a service business using the single-step

approach
3.Prepare an SCI for a merchandising business using the multi-step

approach.
29
IV.Procedures / Instructions: Prepare the required items.
Prepare a single-step Statement of Comprehensive Income using the

following:
Revenues – 20,000
Rent expense – 3,000
Salaries expense – 4,000
Utilities expense – 2,000
Write your answer below. You can use your own business name and year.
Activity Number: 2
Kimetsu no Yaiba Company provided the following information for the year
2019 as follows.
Sales 10,000,000
Sales returns and allowances 120,000
Sales discounts 80,000
Merchandise inventory, December 31 1,800,000
Merchandise inventory, January 1 2,000,000
Purchases 6,000,000
Freight in 200,000
Purchase returns and allowances 140,000
Purchase discounts 100,000
Office salaries 600,000
Sales salaries 800,000
Office supplies 150,000
Store supplies 100,000
Depreciation - building 500,000
Depreciation - office equipment 200,000
Depreciation - store equipment 300,000
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REQUIRED: Prepare a statement of comprehensive income for the year using
the multi - step approach. Write your answer below.
Activity Number: 3
Identify if the account is part of the general and administrative expenses or

selling expenses.
a. Salaries of admin personnel ______________________
b. Salaries of janitors ______________________
c. Salaries of sales agents ______________________
d. Utilities of home office ______________________
e. Rent of office building ______________________
f. Depreciation of office equipment ______________________
g. Depreciation of delivery van ______________________
h. Advertising ______________________
i. Cost of merchandise sold during the year ______________________
31
Opus Deo Dignum
S.Y. 2019-2020

Date: Quarter: 1
WORKSHEET # 10
Activity Number: 1
I. Content Standard: The learner s demonstrates an understanding of the forms of

business organization, namely, single proprietorship, partnership, and
corporation, and the structure of a SCE of a single proprietorship that will equip
him / her in the preparation of the said financial report
II. Objectives:
1. To be able to identify the elements of SCE and prepare a
statement of changes in equity for a single, partnership and
corporations forms of businesses.
IV. Procedures / Instructions: Read, analyze carefully and answer the following
questions.
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a. Toka Yada beginning owner’s equity amounted to P 500,000. Net loss for the year
totaled P 45,000. No additional investments and withdrawals for the period.
Compute for total increase in equity for the year.
________________________________________________________________
b. Ending owner’s equity of Tadaomi Karasuma amounted to P80,000. Additional

investments during the year amounted to P30,000. Withdrawals totaled P50,000.
Compute for the company’s net income for the year assuming beginning equity is
P10,000.
________________________________________________________________
c. Irina Jelavić invested an initial capital amounting P150,000 in order to put up his
janitorial services company. During the first year of operations (2016), the company
had a loss of P25,000. Because of this, Irina Jelavić invested additional capital
amounting to P50,000 in 2017. In the second year (2017), the company had a net
income of P100,000 and Irina Jelavić withdrew P20,000 for personal use. Compute
for the ending capital balance of Irina Jelavić for the year 2017.
________________________________________________________________
d. Hinata Okano invested P100,000 to start her laundry business. During the first year
of operations (2016), the company had a net income of P15,000. Hinata Okano invested
additional P100,000 to grow the business. In 2017, the business earned P50,000. As of
December 31, 2017, Hinata Okano’s capital balance is P200,000. How much is Hinata
Okano’s withdrawal?
________________________________________________________________
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Activity Number: 2
The following balances of some accounts are presented by Koro Sensei

Trading for the year ended December 31, 2019 prior to the closing income and expenses
summary account.
Cash P 125,000
Accounts Receivable 90,000
Merchandise inventory 280,000
Accounts payable 80,000
Koro Sensie, Capital 680,000
Koro Sensie, Drawing 30,000
Additional information is given that during the year Koro Sensie have an
additional investment of P250,000 and have a Net income of P128,000.
REQUIRED: Prepare the statement of changes in equity of Koro Sensie

Trading.
34
Activity Number: 3
Camilla Corporation was established in 2017. The corporation issued, 25,000,

P8 par value shares of stock at an issue price of P15 per share. On August 24,2018,
the corporation issued 5,000 new shares at an issue price of P20 per share.
The corporation reported net income of P105,000 and 89,450 in 2017 and
2018 respectively. Dividends of P 3.00 per share were declared and distributed to
shareholders on February 1, 2018.
Prepare the 2018 Statement of Changes in Equity of Camilla Corporation
35
Opus Deo Dignum
S.Y. 2019-2020

Date: Quarter: 1
WORKSHEET # 11
Activity Number: 1
I. Content Standard: The learners demonstrate an understanding of the

components and the structure of a CFS that will equip him / her in the preparation
of the said financial report.
II. Objectives:
1. To be able to identify the elements of SCf and prepare a
statement of cash flows.
IV. Procedures / Instructions
Identify which of the following transactions fall under operating, investing

and financing activities:
36
a. Cash received from customers _______________________
b. Cash paid to suppliers _______________________
c. Cash paid to employees _______________________
d. Cash paid to purchase equipment _______________________

(company does not sell equipment)
e. Cash received from sale of furniture _______________________

(company’s main line of business is not related to furniture)
f. Depreciation expense _______________________
g. Sale of goods on credit _______________________
h. Purchase of goods on credit _______________________
i. Cash received from getting a loan from a bank _______________________
j. Cash paid to owners _______________________
Activity Number: 2
My Hero Academia store had the following transactions during the year:
a. Purchase of goods. Paid cash. 100,000

b. Sale of goods. Received cash. 150,000
c. Paid utilities 30,000
d. Paid rent 10,000
e. Sold equipment for cash 100,000
f. Owner withdraws investment 10,000
Required:
1.Compute for the net cash flow generated by/used in operating activities.
2. Using the given above, compute for the net cash flow generated by/used in
investing activities.
3. Using the given above, compute for the net cash flow generated by/used in
financing activities.
4. Using the given above, prepare a Cash Flow Statement. (Direct Approach)
37
Activity Number: 3
1. The company presented the following in order to aid the accountant in

preparing the CFS:
a. Net income: P200,000
b. Depreciation expense : P 25,000
c. Gain on sale of property and equipment: P100,000
d. Decrease in trade and other receivables: P 70,000
e. Purchase of property and equipment: P200,000
f. Payment of loan from bank: P150,000
The net the cash generated/provided in financing activities
a. 175,000 b. 180,000
c. 150,000 d. 100,000
2. KATSUKI BAKUGO Company provided the following information for the

year ended December 31,2018
Cash collections from customers P6,000,000

Cash payments to suppliers 2,000,000
Cash payment to employees 800,000
Interest received 100,000
Interest payment on the bank loan 300,000
Cash dividends received 300,000
Cash dividends paid 400,000
Income tax paid 200,000
Cash payment for equipment 1,500,000
The net cash provided by operating activities for 2018 would be:
a.2,700,000 b.3,000,000
c.3,100,000 d.1,200,000
38
3. The following changes happened in some accounts of IZUKU MIDORIYA
Company as follows:
Increase in Machinery P375,000

Increase in depreciation -machinery 600,000
Increase notes payable 450,000
Increase in investment in bonds 500,000
Increase in bonds payable 300,000
Additional information:
1.The net income for the period was P 4,000,000
2.In November of the current year, the company sold the machinery costing
P375,000 with accumulated depreciation of P180,000 at a loss of P25,000.
3. In the month of December, the company purchased machinery costing

P750,000 through the issuance of a 12% note payable of P450,000 and
P300,000 cash.
The net cash flows used by investing activities would be
a.830,000 b.800,000
c.1,080,000 d.605,000
39
Second Quarter
Learning Objectives:
o perform vertical (common size)and horizontal analyses of financial statements of a

single proprietorship
o define the measurement levels, namely, liquidity, solvency, stability, and profitability
o compute and interpret financial ratios such as current ratio, working capital, gross profit
ratio, net profit ratio, receivable turnover, inventory turnover, debt-to-equity ratio, and
the like
o the learners will submit a completed accounting practice set for a merchandising
business.
o identification of the proper treatment of reconciling items in the bank reconciliation

statement
o preparation of a bank reconciliation statement
o define income and business taxation and its principles and processes and prepare the
list 1of sources of gross income from compensation and gross income from business,
and the corresponding personal and additional deductions as well as the computation of
gross taxable income and tax due.
o prepare basic business forms and documents, such as official receipts, vouchers, sales
invoice, purchase invoice, delivery receipts, purchase order, and withdrawal and
deposits slips; and complete and submit the accounting practice set for a merchandising
business
40
Opus Deo Dignum
S.Y. 2019-2020
SUBJECT:Accounting 2/Business Math INSTRUCTOR:

Date: Quarter: 2
WORKSHEET # 12
Activity Number: 1
I. Content Standard: The learners demonstrate an understanding o the methods

or tools of analysis of financial statements to include horizontal analysis, vertical
analysis, and financial ratios to test the level of liquidity, solvency, profitability,
and stability of the busines
II. Objectives:
 perform vertical (common size)and horizontal analyses of
financial statements of a single proprietorship
III.Materials: Paper, pen and Calculator
Part A. Compute and answer
I. Nanno Trading presented the following selected from its financial

statements.
41
Cash and cash equivalents 500,000
Trading Securities 1,000,000
Inventorty 2,500,000
Total Current assets 5,000,000
Total Assets 15,000,000
Trade and other payables 800,000
Total Liabilities 6,000,000
Net Sales 8,000,000
Operating Expenses 2,200,000
Income after tax 960,000
1. On a common size statement of financial position, how would the company

present the trading securities?
A. 5.05% C. 20.0%
B. 6.7% D. 25.6%
Solution:
2. Using the same data in above, how would the company present the trade and
other on a common size statement of financial position.
A. 13.3% C. 5.3%
B. 10.0% D. 4.0%
Solution:
3. Using the same data in above, how would the company present the operating
expenses on a common-size income statement?
A. 11.0% C. 25.5%
B. 14.7% D. 229.0%
Solution:
42
II. Selected items in the statement of comprehensive income of The Gifted Trading are
as follows:
Sales 3,675,000
Sales Discounts 175,000
Office Supplies 52,500
Advertising Expense 71,000
Utilities Expense 177,500
Interest Expense 35,000
The gross profit of the company is 40% of the net sales. And the applicable tax
rate for the period is 30%.
1. In the common size statement of comprehensive income, sales discounts and

allowances will have a proportional percentage of?
A. 4.75% C. 4.55%
B. 5.00% D. 95.23%
Solution:
2. Using the same data above, office supplies will appear in the common size
statement of comprehensive income as:
A. 1.43% C. 1.50%
B. 1.46% D. 2.5%
Solution:
3. Using the same data above, the proportional percentage of interest expense in
the statement of comprehensive income would be:
A. 1.00% C. 0.91%
B. 0.95% D. 1.15%
Solution:
43
3. Using the same data above, the business expects to allocate 8% proportional
components for salaries and wages in the common size statement of
comprehensive income, the absolute amount for salaries and wages would be.
A. 280,000 C. 308,000
B. 294,000 D. 176,400
Solution:
Part B. Analyzed the following data. Answer and prepared the following required ask:
I. The statement of Comprehensive Income of The Gifted Trading for the year ended
December 31,2019 is presented for you to prepare the following:
a) Common size Statement of Comprehensive Income (Vertical

Analysis).
b) Interpretation of the relationship of each item to Net Sales.
The Gifted Trading
Sales P63,000
Less: Sales Returns & Allowances 3,000
Net Sales P60,000
Less: Cost of Sales 45,000
Gross Profit 15,000
Less: Operating Expenses 12,000
Profit P 3,000
44
II. The Statement of Comprehensive income of the Bad Genius Jewelry Store is
presented below:
November December
Sales P90,000 P100,000

Less: Sales Returns & Allowances 2,000 1,000
Sales Discount -___ 500
2,000 1,500
Net Sales P88,000 P98,500

Less: Cost of Sales 50,000 45,000
Gross Profit 38,000 53,500
Less: Operating Expenses 20,000 19,000
Profit P18,000 P34,500
1.Analyzed the above comparative statement of comprehensive income using

the horizontal analysis. Show both the amount of increase /decrease and the
percent of changes.
2.Explain the significance of the changes in the amounts and percentages.

3. Evaluate the result of December operations are compared with November.
45
+

Opus Deo Dignum
S.Y. 2019-2020

Date: Quarter: 2
WORKSHEET # 13
Activity Number: 1
I. I. Content Standard: The learners demonstrate an understanding o the methods

or tools of analysis of financial statements to include horizontal analysis, vertical
analysis, and financial ratios to test the level of liquidity, solvency, profitability,
and stability of the business.
II. Objectives:
 define the measurement levels, namely, liquidity, solvency,
stability, and profitability
 compute and interpret financial ratios such as current ratio,
working capital, gross profit ratio, net profit ratio, receivable
turnover, inventory turnover, debt-to-equity ratio, and the like
46
Part A. Compute and answer.
1. The statement of Financial data of Nile’s Department Store is given below:
Current Assets:
Cash P140,000
Accounts Receivable 110,000
Notes receivable 15,000
Merchandise Inventory 230,000
Prepaid Expenses 12,000
Total P507,000
Current Liabilities:
Accounts Payable P 90,000
Accrued Expenses 40,000
Total P130,000
Required ;
1. Determine the Following:
a. Working capital
b. Current ratio
c. Acid test ratio
2. Interpret the determined current and acid test ratio.
Answers here: Show your Computations.
47
2. The following data were gathered from the records of Ulai Enterprises:
Inventories:
Beginning P80,000
Ending 60,000
Sales:
Credit P200,000
Cash Sales 50,000
Cost of Sales 210,000
Accounts Receivable:
Beginning P30,000
Ending 70,000
Assume 365 days in a year.
Required: Compute the following:
a. Receivable Turn – Over

b. Average Collection Period
c. Inventory Turn Over
d. Average Age of Inventory
Answers here: Show your Computations,
48
3. The following are the selected date of Ahava Corporation for the years ended
December 31,2018 and 2019.
2018 2019
Sales (All in account) P 1,400,000 P1,100,000

Cost of Sales 850,000 780,000
Average Inventory during the year 210,000 195,000
Average Receivable during the year 290,000 190,000
Average Investment during the year 1,200,000 1,500.000
Operating Expenses (distribution & Admin) 250,000 300,000
Required:
3. Compute the following for 2018 and 2019.
a. Gross Profit Percentage

b. Rate of Return on Sales
c. Rate of Return on Investment (ROI)
d. Inventory Turn Over
e. Accounts Receivable Turnover
Answers here: Show your Computations.
49
Opus Deo Dignum
S.Y. 2019-2020

Date: Quarter: 2
WORKSHEET # 14
Activity Number: 1
I. Content Standard: The learners demonstrate
 the purpose of business forms in accounting.

Differentiate internal and external busines forms,
 an understanding of debits and credits, journal
entries to record basic business transaction
 the types of bank accounts, basic transactions,
and documents related to bank deposits and
withdrawals
II. Objectives: At the end of this lesson, the learners will submit a completed
accounting practice set for a merchandising business.
IV. Procedures / Instructions: Follow the required items:
Requirements:
1. Identify the following and indicate on the spaces provided:
50
a. Business or bank forms to be used by AngTindahan to document the
above transactions.
b. Journal to be used to record the original entry for the respective
transactions.
2. Prepare the journal entry (debit-credit format) to record the above transactions.
The King Monarch Co. is a wholesaler of office and school supplies.

The following are the transactions of The King Monarch Co. for the first month
of its operations. All cash disbursements are made by bank check.
Date Transaction Amount Business/Bank forms Journal Journal Entry
July,01 Kim Go-eun made initial contribution to the

Dr. Cash 200,000
business by depositing money in the company’s P200,000 Deposit Slip Cash Receipts
Cr. Dy, Capital 200,000
bank account.
July,01 Purchased laptop from Computershop Inc. for
office use. Payment term: COD (Cash on Delivery). P45,000
July,02 Paid advance rental for 6 months.

30,000
July,04 Received 200 reams of bond papers (inventory)

ordered from Jude Corp. Payment terms: 2/10, 25,000
n/30.
July,07 Delivered150 rea ms of bond papers to Aurora
Company. Payment terms: 2/10, n/20. Cost of 41,250
merchandise was P18,750.
July,08 Paid the July 4 purchases

24,500
July,15 Paid salary of employee

7,000
July,16 Received payment from the July 7 sales.

40,425
July,18 Sold 20 reams of bond papers to Audrey Company.

Audrey picked up the merchandise from the store. 5,500
Payment term: 15 days.Cost of merchandise was
July,19 Received10 boxes of ballpoint pens from Mickey
Inc. Payment terms: COD 25,000
July,22 Over the counter sale of 4 boxes of ballpoint pens

to Happy Company. Payment term: Cash Cost of 22,000
merchandise was P 10,000
July,23 Received 10 calculators from Plusminus
Corporation. Payment terms: 30 days. 3,000
July,24 Sold 6 calculators to Joel Company. Joel picked up

the merchandise from the store. Payment Term: 15 3,960
days. Cost of merchandise was P1,800
July,25 Paid electricity bill.
7,400
July,26 Received 2 defective calculators from Joel

Company. Cost of defective calculators is P 600 1,320
Aduana,July,31
N. L. (2016).Fundamentals of Accountancy,
Over the counter cash withdrawal by the owner, Business Management2. C&E Publishing
Rachel Dy, for her personal expenses. 10,000
51
+

Opus Deo Dignum
S.Y. 2019-2020

Date: Quarter: 2
WORKSHEET # 15
Activity Number: 1
I. Content Standard: The learners demonstrate

 a bank reconciliation statement, its nature and
structure, and reconciling items and methods of
preparation,
II. Objectives: solve exercises and problems involving the following:

a. identification of the proper treatment of reconciling items in the
bank reconciliation statement
b. preparation of a bank reconciliation statement
IV. Procedures / Instructions: Answer and compute the following set of problem.
SET A. Identify whether the following independent transaction is a book or a

bank reconciling. In addition, determine the amount of the error and state
52
whether the amount will be added or deducted in the preparation of the bank
reconciliation (use adjusted method):
1. Brothers repair shop received P1,500 from Jane. The bookkeeper

recorded the amount as P500.
2. BDO Network Bank collected from the customer of Brother Repair Shop
the sum of P5,000 representing payment of the said customer to Brother.
No entry was made in the books of Brother.
3. 3 The bank teller deducted Check 1031 for P3,500 from the account of
Brother Repair Shop. The said check was issued by Big Brother Company
a different depositor of the bank.
4. The bookkeeper of Brother Repair Shop recorded Check No. 345 in the
Cash Disbursement Journal as P5,205. The correct amount of the check
was P5,250.
5. The deposits of Brother Repair Shop earned interest of P100 for the
month. Brother does not have knowledge of interest earned until it
receives the bank statement.
SET B: Given the below information’s, analyze each item whether it is a book
reconciling or a bank reconciling item. Then prepare a bank reconciliation
statement using Adjusted Method.
Item 1: The bank statement for August 2014 shows an ending balance of Php3,490.
Item 2: On August 31 the bank statement shows charges of Php35 for the service
charge for maintaining the checking account.
53
Item 3: On August 28 the bank statement shows a return item of Php100 plus a
related bank fee of Php10. The return item is a customer's check that was returned
because of insufficient funds.
Item 4: The bank statement shows a charge of Php80 for check printing on August 20.
Item 5: The bank statement shows that Php8 was added to the checking account on
August 31 for interest earned by the company during the month of August.
Item 6: The bank statement shows that a note receivable of Php1,000 was collected
by the bank on August 29 and was deposited into the company's account. On the
same day, the bank withdrew Php40 from the company's account as a fee for
collecting the note receivable.
Item 7: The company's Cash account at the end of August shows a balance of
Php967.
Item 8: During the month of August the company wrote checks totaling more than
Php50,000. As of August 31, Php3,021 of the checks written in August had not yet
cleared the bank and Php200 of checks written in June had not yet cleared the bank.
Item 9: The Php1,450 of cash received by the company on August 31 was recorded
on the company's books as of August 31. However, the Php1,450 of cash receipts
was deposited at the bank on the morning of September 1.
Item 10: On August 29 the company's Cash account shows cash sales of Php145.
The bank statement shows the amount deposited was actually Php154. The company
reviewed the transactions and found that Php154 was the correct amount.
Show answer here:
54
Opus Deo Dignum
S.Y. 2019-2020

Date: Quarter: 2
WORKSHEET # 16
Activity Number: 1
I. Content Standard: The learners demonstrate an understanding the sound principles of

taxation, its purpose, and preparation of forms and payment of taxes
II. Objectives: define income and business taxation and its principles and processes and
prepare the list of sources of gross income from compensation and gross income from
business, and the corresponding personal and additional deductions as well as the
computation of gross taxable income and tax due.
A. Compute the taxable due for each item. Refer on the table below.
Show your solution and label it properly.
a. Mr. Sam Milky , a minimum wage earner, works for CatGrey Co. Mr. Sam
Milky not engaged in business nor has any other source of income other than
his employment. For 2018, Mr. Sam Milky earned a total compensation income
of P 145,000.00. The taxpayer contributed to the SSS, Phil health, and HDMF
55
amounting to P6,000.00 and has received 13th month pay of P12,000.00.
Compute his taxable income and tax due for the year?
b. The following year, Mr. Sam Milky earned, aside from his basic wage,
additional pay of P155,000.00 which consists of the overtime pay
(P80,000.00), night shift differential (P30,000.00), hazard pay
(P15.000.00) and holiday pay (P15,000.00). The taxpayer contributed to the
SSS, Phil health, and HDMF amounting to P5,000.00 and has received 13th
month pay of P11,000.00. Compute his taxable income.
c. Mr. Clint Bondat , a Financial comptroller of CG Company, earned annual

compensation in 2018 of P1,500,000.00, inclusive of 13th month and other
benefits in the amount of P120,000.00 but net of mandatory contributions to
SSS and Philhealth. Aside from employment income, he owns a convenience
store, with gross sales of P2,400,000. His cost of sales and operating expenses
are P1,000,000.00 and P600,000.00, respectively, and with non-operating
income of P100,000.00. Compute his Net taxable income due using the eight
percent (8%) income tax rate on gross sale.
56
B. Compute the withholdings tax of each employee. Show your solution and label your
answer properly. Refer on the Withholding Tax Table on Compensation Income.
a. Employee A receiving daily compensation in the amount of P2,500.00, net of

mandatory contributions.
b. Employee B receiving weekly compensation in the amount of P9,500.00, net of

mandatory contributions.
c. Employee C receiving semi-monthly compensation in the amount of

P15,500.00, net of mandatory contributions.
57
Opus Deo Dignum
S.Y. 2019-2020

Date: Quarter: 2
WORKSHEET # 17
Activity Number: 1
V. Content Standard: The learners demonstrate

the preparation of an accounting practice set for a
VI. Objectives: prepare basic business forms and documents, such as official receipts,
vouchers, sales invoice, purchase invoice, delivery receipts, purchase order, and
withdrawal and deposits slips; and complete and submit the accounting practice set for
a merchandising business
IV. Procedures / Instructions: Follow the required preparation given after the
transactions.
When KIM SOO HYUN ended up his joint venture business with a friend, he thought of
going alone as a sole proprietor. With his share in merchandise inventory worth P45,000, a
savings and a loan from a bank, he can already start to engage in a business of buying ang
58
selling of car accessories and at the same offer’s installation service to his customer. He
registered his business with Department of trade and industry under the firm name of IT’S OKAY
CAR ACCESSORIEs and REPAIR.
The following are the transaction of IT’S OKAY CAR ACCESSORIEs and REPAIR. during the
month of FEBRUARY 2020.
1 - KIM SOO HYUN opened a bank account with BDO Network Bank in the
amount of P1,000,000 (1000 bill denomination) and invested merchandise
inventory valued at P45,000 to start with his business.
- Purchased store furniture and fixture for cash from SE YI JI FURNITURE
costing P150,000 plus VAT 12%. Issued check No. 48501 covered by check
Voucher No. 001
- Obtained a bank loan in the amount of P500,000 through a bank credit
memo. The principal amount of the loan was P500,000 less interest and bank
charges deducted in advance for one year, P420,000. Official receipt No.
0001 was issued.
2 – Purchased various store supplies on account from GAISANO CAPITAL
P10,000 as per Charges Sales Invoice No. 05913. VAT 12%.
3 – Purchased merchandise on account, P180, 000 plus 12% VAT from

BANAWE CAR as per Charged Invoice No. 08412, Term 2/10, n/30
4 – Received cash P16,800 from PARK KYU YOUNG for the installation of a car
accessory including VAT 12%. Issued an Official Receipt No. 0002.
- Paid P5,600 including VAT of 12% to Air 21 Express for the freight of
merchandise purchased from BANAWE CAR, Issued Check No. 48502 with
covering Check Voucher No.002.
5 – Purchased merchandise for cash P200,000 plus 12% VAT from L.A CAR
Accessories. Issued Check No. 48503 with covering Check Voucher No.003.
6 – Returns merchandise purchased from L.A CAR Accessories for not

conforming with the order, P6,500 plus 12%VAT. Issued Official Receipt No.
0003 for the refund.
- Sold merchandise for cash, P140,000 to V-MAC CAR SUPPLIES. plus 12%
VAT as per Cash Sales Invoice No. 001.
59
- Freight paid to LBC Express, P 3,920 for merchandise shipped to V-MAC
CAR SUPPLIES with 12% VAT included. Issued Check No. 48504 with
covering Check Voucher No.004.
10- Return of merchandise worth P8,960 from V-MAC CAR SUPPLIES including
12% VAT for not conforming with the order. This was being refunded by Check
No. 48505 with covering Check Voucher No.005.
11- Full payment of account with BANAWE CAR. and avail of the 2% discount,
P197,568. Issued Check No. 48506 with covering Check Voucher, No.006.
12- Paid business and taxes and licenses t the City Government of P15,000.
Issued Check No. 48507 with covering Check Voucher No.7
14- Sold merchandise on account to ELEGANT SURPLUS Corporation

amounting to P250,000 plus 12% VAT per Charged Sales Invoice No. 0001.
Terms2/10, N/30.
15 - KIM SOO HYUN hired Mrs. ILYNE BERZAMINA, CPA at the rate of P25,
000 per month.
18 -Sold merchandise an account to FCC DAVAO AUTO STATION amounting to
P210,000 plus 12% VAT as per Charge Sales Invoice No. 0002. Terms: 2/10,
N/30.
23- Received cash in the amount of P274,000 from ELEGANT SURPLUS Corp.
in full payment of its account after availing of 2% discounts of P5,000. Issued
Official Receipt No.0004.
24 – Received cash of P22,400 from PARK JIN JOO for the installation of a car
accessory which included the 12% VAT. Issued an Official Receipt No. 0005.
27- Paid rental of the building owned by KISANLU REALSTATE. amounting to

P75,000 plus 12% VAT. Issued Check No. 48508 with covering Check Voucher
No. 008.
60
- Sold merchandise on account to PRESTIGE AUTOSHOP amounting to
P302,000 plus 12% VAT as per Charge Sales Invoice No. 0003. Term: 45
days.
28 – Received cash of P130,000 representing partial collection of account from

PRESTIGE AUTOSHOP Issued Official Receipt No. 0006
– Purchased merchandise on account costing P295,000 from BACOLOD CAR
Accessory, Inc. plus 12% VAT as per Charge Sales Invoice No. 69250.
– Issued Check No.48509 with covering Check Voucher No.009 to KIM SOO
HYUN representing withdrawal from his capital investment, P30,000.
28 – Paid salaries and wages to employees for the month, P50,000. Issued
Check No. 45810 with covering Check Voucher No. 010 Payee is SHAM
DUMAGUING.
Requirements:
1. Read the transactions above and follow the instructions below.

2. Prepare the journal entry (debit-credit format) to record the above transactions.
Use only the accounts listed on the chart of accounts given below. Use your own
journal sheet for this.
3. Fill up the relevant forms based on the given instructions. Format of the forms
are provided below. Follow the numbering instructions.
4. Record the transactions in the appropriate journals. Formats are also provided
below.
5. Post the journal entries in the appropriate subsidiary ledgers and general ledger
accounts. Use your old ledger book from Grade 11.
6. Summarize the ledger accounts and list the balances on the trial balance.
7. Record the following Adjusting Entries (General Journal)
a. Estimated uncollectible accounts is 2% of the outstanding
receivable balance.
b. Store supplies Inventory revealed to have balance of P4,000.
61
c. After the P80,000 prepaid interest on bank loan, P6,670 has expired
during the month of February.
d. Furniture and Equipment has an estimated life of 5 years without
scrap value.
e. Unpaid light and water bills for the month of February.
8. Prepare the financial statements from the adjusted trial balance. (Worksheet)
a. Statement of Financial Position c. Statement of Changes in Equity
b. Statement of Comprehensive Income d. Statement of Cash Flows
9. Prepare necessary closing entries and record on the general journal and ledger.
10. Perform financial statement analysis (Vertical Analysis for both SFP and SCI
only) on the completed financial statements.
IT’S OKAY CAR ACCESSORIEs and REPAIR

CHART OF ACCOUNTS
ASSETS REVENUE
Current Assets: Sales
Cash in Bank Installation Income
Petty Cash Fund Sales Discount
Accounts Receivable Sales Return and Allowances
Allowance for Bad Debts
Merchandise Inventory COSTS
Store Supplies Inventory Purchases
Prepaid Interest Purchase Discounts
Inputa Tax Purchase Return and Allowances
Freight In
Non-Current Assets:
Store Furniture and Fixtures EXPENSES
Accumulated Depreciation Uncollectible Accounts
Depreciation Expense
LIABILITIES Rent Expense
Accounts Payable Salaries and Wages
Notes Payable Taxes and Licenses
Accrued Utilities Interest Expense
Output Tax Utilities Expense
VAT Payable Store Supplies Expense
Freight Out
OWNERS EQUITY
KIM SOO HYUN, Capital
KIM SOO HYUN, Drawing 62
63
64
65
66
67
68
69
70
71
72
PURCHASE JOURNAL
Accounts VAT Input

Charge Purchases
Date Suppliers Terms Payable Tax
Invoive No.
Cr. Dr. Cr.
73
SALES JOURNAL
Accounts VAT Input

Charge Purchases
Date Customer Terms Payable Tax
Invoive No.
Cr. Dr. Cr.
74
Cr Accounts Title Dr. Cr.
Amount
SUNDRIES
Installation VAT Output
Invoice Cash in Bank Receivable Sales Income Tax
Cr.
CASH RECEIPT JOURNAL
Cr.
Account
Dr. Cr.
O.R/Sales
No.
Customers
Date
75
CASH DISBURSEMENT JOURNAL
Check Check Cash in Accounts VAT Input Purchases
Purchases Sundries
No. Voucher Bank Payable Tax Discount
Date Payee Explanation
No. Amount
Cr. Dr. Dr. Dr. Cr. Accounts
Dr. Cr.

76
BIBLIOGRAPHY
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Fundamentals of Accounting and Business MNGMNT 2 and Business Math Final

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Fundamentals of Accounting and Business MNGMNT 2 and Business Math Final

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ILYNE BERZAMINA

“Train up a child in the way he should

Aduana, N. L. (2016).Fundamentals of Accountancy, Business Management2. C&E Publishing

Lopez, R. M. (2016-2017).Learning the Basic of Accounting.MS Lopez Printing and Publishing

Lopez, R. M. (2016-2017).Learning the Basic of Accounting.MS Lopez Printing and Publishing

Lopez, R. M. (2016-2017).Learning the Basic of Accounting.MS Lopez Printing and Publishing

SUBJECT: Accounting 2/Business Math INSTRUCTOR:

Grade Level: Time End:

I. Content Standard: To solve problems applying the accounting equation

II. Objectives: To be able to

III. Materials: Paper, pen and Calculator

IV. Procedures / Instructions: Transaction

Aduana, N. L. (2016).Fundamentals of Accountancy, Business Management2. C&E Publishing

Lopez, R. M. (2016-2017).Learning the Basic of Accounting.MS Lopez Printing and Publishing

B. Computation of Unknown Accounting Values

Aduana, N. L. (2016).Fundamentals of Accountancy, Business Management2. C&E Publishing

Lopez, R. M. (2016-2017).Learning the Basic of Accounting.MS Lopez Printing and Publishing

C. Determination of Unknown Accounting Elements

Case 1 Case 2 Case 3 Case

Aduana, N. L. (2016).Fundamentals of Accountancy, Business Management2. C&E Publishing

Lopez, R. M. (2016-2017).Learning the Basic of Accounting.MS Lopez Printing and Publishing

SUBJECT: Accounting 2/Business Math INSTRUCTOR:

Grade Level: Time End:

I. Content Standard: To solve problems applying the accounting equation

II. Objectives: To be able to

III. Materials: Paper, pen and Calculator

IV. Procedures / Instructions:

Lopez, R. M. (2016-2017).Learning the Basic of Accounting.MS Lopez Printing and Publishing

Aug. 1 Gon invested PHP48,000 cash in the business.

Show your Answer on the space provided below:

Aduana, N. L. (2016).Fundamentals of Accountancy, Business Management2. C&E Publishing

Lopez, R. M. (2016-2017).Learning the Basic of Accounting.MS Lopez Printing and Publishing

SUBJECT: Accounting 2/Business Math INSTRUCTOR:

Grade Level: Time End:

I. Content Standard: To be define, identify, and classify accounts according to the

II. Objectives: To be able to identify the account as assets, liabilities, capital,

III. Materials: Paper, pen and Calculator

IV. Procedures / Instructions:

A. Filling the blanks. On the space provided, indicate the APPROPRIATE

Aduana, N. L. (2016).Fundamentals of Accountancy, Business Management2. C&E Publishing

Lopez, R. M. (2016-2017).Learning the Basic of Accounting.MS Lopez Printing and Publishing

____________ 3. These assets are identifiable, non-monetary assets without physical

____________ 5. It is an expense for leased office space, equipment or assets rented

____________ 8. An account title to describe money either paper, or in coins and

____________ 9. An account title for financial obligation of an enterprise that

____________ 14. It is the obligations of the company payable in money, goods or

Aduana, N. L. (2016).Fundamentals of Accountancy, Business Management2. C&E Publishing

Lopez, R. M. (2016-2017).Learning the Basic of Accounting.MS Lopez Printing and Publishing

_____1. Land ____8. Unused Office Supplies

_____2. Accounts Receivable ____9. Delivery Equipment

_____3. Building ____10. Prepaid Rental

_____4. Unexpected Insurance ____11. Advances to Employees

_____5. Cash on Hand ____12. Furniture and Fixture

_____6. Petty Cash on Hand ____13. Prepaid Rental

_____7. Accrued Income Receivable

Aduana, N. L. (2016).Fundamentals of Accountancy, Business Management2. C&E Publishing

Lopez, R. M. (2016-2017).Learning the Basic of Accounting.MS Lopez Printing and Publishing

SUBJECT: Accounting 2/Business Math INSTRUCTOR:

Grade Level: Time End:

I. Content Standard: The business transactions and their analysis, to include

II. Objectives: To be able to identify business and nonbusiness transactions,

III. Materials: Paper, pen and Calculator

_1. Land 8. Unused Office Supplies

_2. Accounts Receivable 9. Delivery Equipment

_3. Building 10. Prepaid Rental

_4. Unexpected Insurance 11. Advances to Employees

_5. Cash on Hand 12. Furniture and Fixture

_6. Petty Cash on Hand 13. Prepaid Rental

A. 1. E. Gevera invested cash in the business.

B. 1. Bought supplies inventory on account from Te Co.

C. 1. Rendered services on account to M. Peñaflor Co.

D. 1. Bought a car for cash from Toyota.

E. 1. Received a note for the merchandise sold.

Example: Cash on Hand _ ______

1. Account Receivable _

Example: Cash in bank was debited _ _______

1. Account Receivable was credited _ _

2. Service Income account was credited _

3. Accounts Payable was debited _

4. Sung, Sun Woo Capital was credited _

5. Salaries expense was debited _

6. Prepaid Insurance account was credited _

7. Notes Payable account was debited _

8. Sung, Sun Woo withdrawal was debited _

9. Cash Account was credited _

10. Supplies expense was debited _