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UNIVERSITY OF MAKATI
HIGHER SCHOOL NG UMAK
Fundamentals of Accountancy, Business, and Management Part 2

NC III REVIEW MATERIALS – Set A (PERIODIC)

TRANSACTIONS: Eat Bulaga Company provided the following transactions for

the month of April

April
1 Vic Sotto invested P45,000
3 Bought computer for P6,000
3 Bought merchandise on account from Showtime Supply Co. P6,300 terms 2/10, n /30
5 Bought office supplies on cash basis for P1,000
6 Sold Merchandise on account P15,700, FOB Destination, Terms 2/10, n/30
7 Paid 300 freight on April 6 sale
8 Received credit from Showtime Supply Co for merchandise returned P450.00
11 Paid Showtime Supply Co.
13 Collected from April 6 Customers
14 Bought merchandise on cash basis for P10,000
15 Salaries paid P1,000
16 Barrowed money form BPI Bank, signed a promissory note for P9,000
17 Received refund from a supplier on cash purchase made last April 14, 800
18 Bought Merchandise from Vice Ganda P5,700, FOB shipping point Terms 2/10, n/30
20 Paid Freight on April 18 purchase, P500
23 Sold Merchandise for P9,500
26 Bought Merchandise for cash P4,500
27 Paid Vice Ganda on the April 18 purchase, P2,000. No discount on partial payment
28 Vic sotto got cash from business, P1,300
29 Made refund to cash customer for defective merchandise, P650
30 Sold Merchandise on account 12,500, n/30
30 Paid the following: Advertising P1,000, Utilities P500, Rent P2,000, Salaries P1,000
30 Inventories 10,000

CHART OF ACCOUNTS

CODE ACCOUNT TITLE CODE ACCOUNT TITLE

ASSETS REVENUE
101 Cash 401 Sales
102 Accounts Receivable 402 Sales return and Allowances
103 Merchandise inventory 403 Sales Discount
104 Supplies EXPENSES
110 Equipment 501 Purchases
LIABILIITIES 502 Purchase return and allowances
201 Accounts Payable 503 Purchase Discount
202 Notes payable 504 Freight in
OWNER’S EQUITY
301 V. Sotto Capital 601 Freight out
302 V. Sotto Drawing 602 Rent Expense
303 Income and expense Summary 603 Salaries Expense
604 Advertising Expense
605 Utilities

PREPARED BY: CARLO MAGNO C. SANTUICO CPA, MBA

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UNIVERSITY OF MAKATI
HIGHER SCHOOL NG UMAK
Fundamentals of Accountancy, Business, and Management Part 2

I. JOURNAL ENTRIES:

DATE TRANSACTION PR DEBIT CREDIT

APRIL

PREPARED BY: CARLO MAGNO C. SANTUICO CPA, MBA

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UNIVERSITY OF MAKATI
HIGHER SCHOOL NG UMAK
Fundamentals of Accountancy, Business, and Management Part 2

DATE TRANSACTION PR DEBIT CREDIT

APRIL

PREPARED BY: CARLO MAGNO C. SANTUICO CPA, MBA

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UNIVERSITY OF MAKATI
HIGHER SCHOOL NG UMAK
Fundamentals of Accountancy, Business, and Management Part 2

II. POSTING TO THE LEDGER

CASH 101 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT DEBIT CREDIT
April

ACCOUNTS RECEIVABLE 102 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT DEBIT CREDIT
April

MERCHANDISE INVENTORY 103 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT DEBIT CREDIT
April

SUPPLIES 104 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT DEBIT CREDIT
April

PREPARED BY: CARLO MAGNO C. SANTUICO CPA, MBA

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UNIVERSITY OF MAKATI
HIGHER SCHOOL NG UMAK
Fundamentals of Accountancy, Business, and Management Part 2

EQUIPMENT 105 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT DEBIT CREDIT
April

ACCOUNTS PAYABLE 201 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT DEBIT CREDIT

NOTES PAYABLE 202 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT DEBIT CREDIT
April

V. SOTTO CAPITAL 301 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT DEBIT CREDIT
April

V. SOTTO DRAWING 302 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT DEBIT CREDIT
April

SALES 401 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT
April

SALES RETURN AND ALLOWANCES 402 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT DEBIT CREDIT
April

PREPARED BY: CARLO MAGNO C. SANTUICO CPA, MBA

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UNIVERSITY OF MAKATI
HIGHER SCHOOL NG UMAK
Fundamentals of Accountancy, Business, and Management Part 2

SALES DISCOUNT 403 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT DEBIT CREDIT
April

PURCHASES 501 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT DEBIT CREDIT
April

PURCHASE RETURN AND ALLOWANCES 502 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT DEBIT CREDIT
April

PURCHASE DISCOUNT 503 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT DEBIT CREDIT
April

FREIGHT – IN 504 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT DEBIT CREDIT
April

FREIGHT OUT - 601 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT DEBIT CREDIT
April

PREPARED BY: CARLO MAGNO C. SANTUICO CPA, MBA

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UNIVERSITY OF MAKATI
HIGHER SCHOOL NG UMAK
Fundamentals of Accountancy, Business, and Management Part 2

RENT EXPENSE 602 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT DEBIT CREDIT
April

SALARIES EXPENSE 603 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT DEBIT CREDIT
April

ADVERTISING EXPENSE 604 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT DEBIT CREDIT
April

UTILITIES 605 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT DEBIT CREDIT
April

INCOME AND EXPENSE SUMMARY 303 BALANCE

DATE EXPLANATION J.R DEBIT CREDIT DEBIT CREDIT
April

PREPARED BY: CARLO MAGNO C. SANTUICO CPA, MBA

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UNIVERSITY OF MAKATI
HIGHER SCHOOL NG UMAK
Fundamentals of Accountancy, Business, and Management Part 2

III. TRIAL BALANCE

EAT BULAGA COMPANY

TRIAL BALANCE
FOR THE MONTH END PERIOD

ACCOUNT PR DEBIT CREDIT

TOTAL

PREPARED BY: CARLO MAGNO C. SANTUICO CPA, MBA

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UNIVERSITY OF MAKATI
HIGHER SCHOOL NG UMAK
Fundamentals of Accountancy, Business, and Management Part 2

IV. FINANCIAL STATEMENTS

EAT BULAGA COMPANY

INCOME STATEMENT
FOR THE MONTH END PERIOD

PREPARED BY: CARLO MAGNO C. SANTUICO CPA, MBA

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UNIVERSITY OF MAKATI
HIGHER SCHOOL NG UMAK
Fundamentals of Accountancy, Business, and Management Part 2

EAT BULAGA COMPANY

BALANCE SHEET
FOR THE MONTH END PERIOD

PREPARED BY: CARLO MAGNO C. SANTUICO CPA, MBA

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UNIVERSITY OF MAKATI
HIGHER SCHOOL NG UMAK
Fundamentals of Accountancy, Business, and Management Part 2

EAT BULAGA COMPANY

CASH FLOW STATEMENT
FOR THE MONTH END PERIOD

PREPARED BY: CARLO MAGNO C. SANTUICO CPA, MBA

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UNIVERSITY OF MAKATI
HIGHER SCHOOL NG UMAK
Fundamentals of Accountancy, Business, and Management Part 2

CLOSING ENTRIES

DATE TRANSACTION PR DEBIT CREDIT

APRIL

PREPARED BY: CARLO MAGNO C. SANTUICO CPA, MBA

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UNIVERSITY OF MAKATI
HIGHER SCHOOL NG UMAK
Fundamentals of Accountancy, Business, and Management Part 2

PART 2- ADJUSTING ENTRIES

Give the adjusting journal entries on December 31 given the following:

1.Rent paid last July
amounted to P21,000, of
which P14,000 has already
expired. This was initially
recorded as Prepaid Rent
upon payment.
2. Supplies purchased during
the year amounted to
P2,900, of which P2,000 has
been used during the year.
The Asset Method was used
upon purchase of the
supplies
3. unearned interest has a
balance of 4,800, of which
P1,900 has already been
earned during the year. The
amount was initially credited
to Unearned Interest upon
collection

6. Last August 30, the

4. A machine costing
P950,000, with a salvage
value of P50,000 and an
estimated useful life of 15
years is depreciated on a
straight line basis
company subscribed to a
5. Utilities bill amounting to
P3,486 was received on business magazine paying
P3,240 for a three –year
December 27. The company
intends to pay it on January subscription to start in
September. This was
5 the following year
recorded to Prepaid
Subscription

DATE TRANSACTION PR DEBIT CREDIT

APRIL

PREPARED BY: CARLO MAGNO C. SANTUICO CPA, MBA