Ateneo de Zamboanga University

SENIOR HIGH SCHOOL UNIT

Fr. Eusebio Salvador, SJ Campus, La Purisima St. Zamboanga City
Accountancy, Business, and Management Program
1st Semester, S.Y 2020-2021

MIDTERM PERFORMANCE-BASED ASSESSMENT (MPBA)

ABM123 – FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2

Name: ____________________________________________ Score: ____________

SC
Grade Level & Section: ______________________________ Date: _____________

GENERAL INSTRUCTIONS:
1. You can only use either Blue or Black Pens (e.g. Uni, Panda, HBW and Faber Castell) for
this exam.
2. All answers are to be written in the separate answer sheet hereto attached.
3. Answer sheet and questionnaires are to be placed and sealed in a brown envelope and
submitted on August 28, 2020.
4. Question and clarification will be entertained during the S-Mode.

PART A – Recording Process (3 points for each correct journal entry or a total of 48 points)

1. Prepare the necessary journal entries on the books of Myser Company to record the following
transactions, assuming a periodic inventory system (you may omit explanations):
a. Myser purchased P45, 000 of merchandise on account, terms 2/10, n/30.
b. Returned P3, 000 of damaged merchandise for credit.
c. Paid for the merchandise purchased within 10 days.

2. Bell Company sold goods on account to Violet Enterprises with terms of 2/10, n/30. The goods had
a cost of P600 and a selling price of P1, 100. Both Bell and Violet use a perpetual inventory system.
Record the sale on the books of Bell and the purchase on the books of Violet.

3. SM Company sells merchandise on account for P2, 500 to NCC Company with credit terms of 3/10,
n/60. NCC Company returns P200 of merchandise that was damaged, along with a check to settle
the account within the discount period. What entry does SM Company make upon receipt of the
check and the damaged merchandise?

4. The following information is available for Pepe Carlo Company:

Debit Credit
Owner’s Capital P 50,000
Owner’s Drawings P 30,000
Sales Revenue 510,000
Sales Returns and Allowances 20,000
Sales Discounts 7,000
Cost of Goods Sold 310,000
Freight-Out 2,000
Advertising Expense 15,000
Interest Expense 19,000
Salaries and Wages Expense 55,000
Utilities Expense 18,000
Depreciation Expense 7,000
Interest Revenue 23,000

Instructions
Using the above information, prepare the closing entries for Pepe Carlo Company.

5. Prepare the necessary journal entries to record the following transactions, assuming Ella Company
uses a perpetual system.

(a) Ella sells P45, 000 of merchandise, terms 1/10, n/30. The merchandise cost P30,000.
(b) The customer in (a) returned P4, 000 of merchandise to Eustace. The merchandise returned
cost P2, 400.
(c) Ella received the balance due within the discount period.

1
PART B. FINANCIAL STATEMENT PREPARATION (Total of 20 points)

The accounts of Curtis Mathew Enterprises are listed in alphabetical order.

Accounts Payable 27,380 Purchases 273,100

Accounts Receivable 31,200 Purchase Discounts 4,670
Accumulated Depreciation - Office Equipment 9,500 Purchase Returns and Allowances 10,190
Accumulated Depreciation - Store Equipment 6,880 Salary Payable 6,120
Capital, June 30 73,720 Sales Discounts 8,350
Cash 12,320 Sales Returns and Allowances 17,900
General Expenses 75,830 Sales Revenue 531,580
Interest Expense 7,200 Selling Expenses 84,600
Interest Payable 3,000 Store Equipment 47,500
Inventory, June 1 190,060 Supplies 4,350
Inventory, June 30 187,390 Unearned Sales Revenue 9,370
Notes Payable , long-term 160,000 Drawings 11,000
Office Equipment 79,000

INSTRUCTIONS:
1. Prepare the entity’s multiple-step income statement at December 31, 2019. (10 points)
2. Prepare the income statement I single step format.(10 points)

Thank you and God Bless!

Prepared by:

BRENDA LUZ A. MOLINA

ABM 123 Instructor

Checked and Approved by:

HERBERT DEIRIO ENGR. BELINO R. ROSAGARON, JR.

ABM Department Chair Assistant Principal for Academics