KOLEHIYO NG SUBIC

ACCOUNTING FOR PARTNESHIP AND CORPORATION

ASSIGNMENT_P1

NAME: _______________________________________ DATE: ________________ SCORE: ________

IDENTIFICATION: (10 pts)

1. An accounting concept which means that the economic life of a business is divided into artificial time periods to provide timely information to the users.
2. _________________is an annual period ending on December 31 while_______________ is a period of any twelve consecutive months.
3. Revenue and expense recognition principles state that revenue should be recognized when ______________ and expenses when __________________.
4. These are entries made at the end of the period to change current account balances to what are the correct balances for proper financial reporting.
5. ____________ is the postponement of the recognition of “an expense already paid but not yet incurred or of revenue already collected but not yet earned.”
6. ___________ are expenses such as rent or insurance that is paid in advance and which are recorded as an asset not expenses.
7. It is an expense representing costs of property, plant and equipment allocated to its estimated useful life.
8. Unearned revenue is classified as a/an ______________ account.
9. It is a summary device used by the accountant to transfer data from the unadjusted trial balance to the financial statements.
10. ______________________________is a financial statement that lists all the assets, liabilities and equity of an entity as at the end of the period. 

PROBLEM (50 pts)

Dars NoForever is the owner of Moonbucks Catering Services. During the month of March, he completed the following transactions:

March 1 Invested in the business kitchen equipment valued at P50,000 and deposited P2,000,000 in a business checking account.
2 Purchased supplies for cash. P50,200.
5 Acquired a service vehicle for P650,000 
5 Paid an insurance premiums for service vehicle amounting to P24,000.
6 Accepted reservation payments from customers amounting to P35,000 for catering services to be rendered next week.
7 Received P50,500 cash for catering services provided in a wedding event.
8 Purchased supplies for P20,600 on account from A and S Fruits and Vegetables Corp.
9 Billed a customer for catering services rendered in a Company event, P40,000.
13 Rendered catering services for reservations accepted on March 6.
18 Paid supplies purchased on March 8.
20 Paid employees a total of P39,600 as semi-month salary (for the payroll cut-off period March 1-15). 
22 Received telephone bill amounting to P2,500
23 Received P 60,500 cash for catering services provided in a company event.
26 Transferred P10,000 to a personal checking account of Noforever.

Additional Information for Adjustments

a. Kitchen equipment are estimated to have a useful life of 3 years. While Service Vehicle has an estimated useful life of 5 years and a salvage value of P20,000.
b. Supplies ledger has a balance of P70,800 before adjustment. Count of supplies at the end of the month amounted to    P15,200.
c. Employees are paid every 5 and 20 of the month. Workdays are from Mondays to Fridays.
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d. Insurance acquired is for 1 year coverage.

 Required:
 1. Record the transactions in a general journal. (14 pts) Post all the journal entries in its ledger using the T-account. (19pts)
2. Prepare the unadjusted trial balance. (7 pts)
3. Enter the necessary adjustments in the adjustments column of the worksheet. (5 pts) 
4. Journalize the adjustments. (5 pts)

DARS NOFOREVER CATERING SERVICES

WORKSHEET
MARCH 31, 2020

ACCOUNT TITLE UNADJUSTED TRIAL BALANCE   ADJUSTMENTS    ADJUSTED TRIAL BALANCE

  Debit Credit   Debit Credit   Debit Credit
Cash                
Accounts receivable                
Supplies                
Prepaid Insurance                
Kitchen Equipment                
Accumulated Depreciation-Kitchen Equipment                
Service Vehicle                
Accumulated Depreciation- Service Vehicle                
Accounts Payable                
Salaries Payable                
Noforever, Capital                
Noforever, Withdrawals                
Catering Revenues                
Salaries Expense                
Insurance Expense                
Supplies Expense                
Depreciation Expense- Kitchen Equipment                
Depreciation Expense- Service Vehicle                
Utilities Expense