Contabilidad Financiera

Manual Fase 1:
Financial Accouting
1
Financial Accounting
Manual

2
 Index

The accounting process

Actividad 2.2 Practice 1 ……………. 3

Evidencia 2 Practice 2 …………....... 7

Evidencia 2 Practice 3 ……………… 17

Evidencia 2 Practice 4 ………………. 26

Financial statements

Actividad 3.1 Practice 1……………… 35

Actividad 3.2 Practice 2 ……………… 37

Evidencia 3 Practice 3………………... 39

Evidencia 3 Practice 4………………. 42

Evidencia 3 Practice 5………………. 45

Financial Ratios

Actividad 4.1 Practice 1……………… 48

Actividad 4.2 Practice 2 ……………… 51

Evidencia 4 Practice 3………………... 53

Evidencia 4 Practice 4………………. 54

3
 Evidencia 4 Practice 5………………. 55

Final Project
PIA Final Project …………..……… 54

Actividad 2.2
Práctica contable de IVA

I. For the following practices, prepare:

⬧ Journal entries
⬧ Plus VAT

Practice 1. The following are MX Company´s beginning balances in May 2021:

Assets Liabilities and Owners´ equity

Cash $ 20,000 Accounts payable $ 300,000
Banks 200,000 Paid-in Capital 458,000
Merchandise Inventory 438,000
Computer Equipment 100,000

$ 758,000 $ 758,000

Transactions of MX Company in May 2021:

1. May 1st – MX Company sold merchandise for $290,000, plus VAT, and the customer
guaranteed the payment with a note, including a 10% interest. The cost of goods sold
was $93,000.
2. May 3rd – Purchase of equipment for $40,000, plus VAT,50% was paid with a check
and the rest on account.
3. May 4th – Purchase of merchandise for $100,000, plus VAT, 50% was paid with
checks and for the rest the company issued a note, including a 10% interest.
4. May 5th – Sale of merchandise in cash for $480,000, plus VAT. The cost of this
merchandise was the 30% of the sale.
5. May 5th – From the previous sale, the company paid with a check for shipping costs
a total of $20,000, plus VAT.
6. May 6th – Sale of merchandise on credit for $300,400, plus VAT. The cost of goods
sold was $100,000.
7. May 8th - The company purchased merchandise for inventory on credit. The total was
$40,000, plus VAT.

4
 8. May 8th – From the previous purchase, the
company paid in cash shipping costs for $2,000 plus VAT.
9. May 10 – The company made a deposit in its bank account for $400,000.
th

10. May 12th – From the purchase on May 8th, we returned merchandise for $4,200.
11. May 18th –The company purchased merchandise for inventory for $200,000, plus
VAT, and paid with a check. The supplier gave a discount of 10%
12. May 22nd – The company sold merchandise on credit for $30,890, plus VAT and gave
a 10% discount. The cost of this merchandise was $10,293.
13. May 31st - The general expenses accrued in the month were: In the administrative
department $197,000, plus VAT and in the sales department $200,800, plus VAT.
14. May 31st - Depreciation of fixed assets in the month: $3,000.
15. May 31st - Income taxes accrued 30%

5
Entry
Date Account title and Description Debit Credit
no.

6
 Evidencia 2

Reporte de prácticas contables del análisis de operaciones, bajo el método

de inventarios perpetuos.

I. For the following practices 2,3,4, prepare:

⬧ Journal entries
⬧ Plus VAT
⬧ T Accounts
⬧ Trial Balance

7
 Practice 2. The following are the beginning balances of
Leading Technology Company in March 2021:

Assets Liabilities and Owners´ equity

Cash $ 4,000 Accounts payable $ 260,000
Banks 100,000 Sundry Creditors 80,000
Merchandise Inventory 370,000 Paid-in Capital 214,000
Computer Equipment 80,000

$ 554,000 $ 554,000

Events in the month:

1. March 3rd - Leading Technology Company sold merchandise on credit for

$122,100, plus VAT. The cost of this merchandise was $40,000.
2. March 4th – The company purchased furniture on credit for $2,000, plus VAT.
3. March 5th – Purchase of merchandise on account for $15,000, plus VAT.
4. March 6th – Purchase of equipment for $20,000, plus VAT, paid with a check.
5. March 7th – From the purchase of merchandise on March 5th the company returned
$3,000.
6. March 10th – The company sold merchandise in cash for $300,000, plus VAT. The
cost was the 35% of the sale.
7. March 11th – From the previous sale, the customer returned merchandise for
$10,000 and our company paid the refund with a check. The cost of goods sold was
the 35% of the sale.
8. March 11th – From the previous sale, the company paid shipping costs with a check
for $15,000, plus VAT.
9. March 15th – The company sold merchandise for $100,000, plus VAT; the customer
guaranteed the payment with a note. The cost of this merchandise was $30,500.
10. March 18th – Sale of merchandise for $100,170, plus VAT. The customer promised
to pay with a note, including a 10% interest. The cost of this merchandise was
$30,380.
11. March 20th – Salaries accrued in the month: For the administrative personnel
$180,000 and for the sales manager $40,000.
12. March 22nd – Administrative expenses accrued $20,000, plus VAT.
13. March 25th – The company made a deposit in its bank account for $295,000.
14. March 27th – The company sold merchandise in cash for $20,000, plus VAT and
gave a 10% discount. The cost of goods sold was $5,000.
15. March 28th – The company purchased merchandise for $208,000, plus VAT and
paid 50% with a check and for the rest we issued a note, including a 10% interest.
16. March 28th – The company purchased merchandise for $50,000, plus VAT. We
guaranteed the payment with a note.
17. March 29th – Purchase of merchandise for $30,000, plus VAT, paid with a check.
18. March 30th – Purchase of a computer for $20,000, plus VAT. The payment was
made with a check.
8
 19. March 31st – Depreciation of
fixed assets in the month: $1,500.
20. March 31 – Income taxes accrued 30%
st

9
 General Journal

10
Entry
Date Account title and Description Debit Credit
no.

11
Entry
Date Account title and Description Debit Credit
no.

12
Entry
Date Account title and Description Debit Credit
no.

13
Entry
Date Account title and Description Debit Credit
no.

14
T accounts

15
16
17
 Trial Balance

Account activity Ending balances

Account title
Debit Credit Debit Credit

18
 Equal amounts

General Manager Accountant

Practice 3. X Mart Company has the following beginning balances in November

2021:

Assets Liabilities and Owners´ equity

Cash $ 20,830 Accounts payable $ 220,000
Banks 220,687 Notes payable 100,000
Merchandise Inventory 400,200 Paid-in Capital 561,717
Equipment 200,000
Computer Equipment 40,000

$ 881,717 $ 881,717

Events in the month:

1. November 1st – X Mart Company purchased merchandise on credit for $10,000,

plus VAT.
2. November 2nd – From the previous purchase, we returned merchandise for $1,000.
3. November 3rd – The company purchased merchandise for $8,000, plus VAT which
was paid with a check. This merchandise had a 10% discount.
4. November 5th – Sale of merchandise for $246,000, plus VAT which was guaranteed
with a note, including a 10% interest. The cost of the merchandise was $98,400.
5. November 6th – The company sold merchandise in cash for $400,000, plus VAT and
gave a 10% discount. The cost of the merchandise was $100,800.
6. November 7th – Sale of merchandise in cash for $220,000, plus VAT. The cost of
goods sold was the 30% of the sale.

19
 7. November 10th – Deposit in the bank
account for $550,000.
8. November 13 – From the sale on November 7th, the customer returned
th

merchandise for $40,000. The refund was paid with a check. The cost of this
merchandise was the 30% of the sale.
9. November 18th – The company purchased merchandise for $500,000, plus VAT and
paid the 50% with a check and the rest on account.
10. November 21st – From the sale on November 7th, the company paid shipping costs
with a check, for a total of $10,000, plus VAT.
11. November 23rd – Purchase of equipment for $10,000, plus VAT and furniture for
$20,000 plus VAT, both purchases were on credit.
12. November 24th – Expenses of the administrative department accrued in the month:
$30,000, plus VAT.
13. November 25th – Salaried accrued for the sales personnel: $100,000.
14. November 30th – Depreciation expense in the month: $1,500.
15. November 30th – Income tax expense accrued 30%

General Journal

20
Entry
Date Account title and Description Debit Credit
no.

21
Entry
Date Account title and Description Debit Credit
no.

22
Entry
Date Account title and Description Debit Credit
no.

23
Entry
Date Account title and Description Debit Credit
no.

24
T accounts

25
26
27
 Trial Balance

Account activity Ending balances

Account title
Debit Credit Debit Credit

28
 Equal amounts

General Manager Accountant

Practice 4. ABC Electronics Company has the following beginning balances in

September 2021:

Assets Liabilities and Owners´ equity

Cash $ 6,000 Accounts payable $ 80,000
Banks 500,000 Notes payable 10,000
Merchandise Inventory 90,000 Sundry Creditors 110,000
Equipment 100,000 Paid-in Capital 616,000
Computer Equipment 120,000

$816,000 $ 816,000

Events in the month:

1. September 1st. Purchase of merchandise on credit for $200,000, plus VAT.

2. September 2nd. The company sold merchandise for $300,000, plus VAT; 50% of the
sale was made on credit and the rest in cash. The cost of goods sold was the 30% of
the sale.
3. September 3rd. From the previous sale, the customer returned merchandise for
$10,000. The company paid the refund with a check. The cost of the products was
the 30% of the sale.
4. September 6th. From the purchase of merchandise on September 1st, we returned
$20,000 to the supplier.
5. September 10th. The company purchased merchandise inventory for $220,000, plus
VAT; 60% was paid with a check and 40% was guaranteed with a note.

29
 6. September 12th. From the sale on
September 2nd, we paid shipping costs with a check for $15,000,
plus VAT.
7. September 15th. The company sold merchandise for $390,000, plus VAT. The
customer guaranteed the payment with a note, including a 10% interest. The cost of
goods sold was $120,000.
8. September 20th. The company purchased new equipment for $60,000, plus VAT and
computer equipment for $40,000. Both purchases were made on account (credit)
9. September 25th. We made a deposit in our bank account for $135,000.
10. September 28th. The total of expenses accrued for the electricity and telephone bill
in the administrative department was $40,000, plus VAT, and the total of salaries
accrued in the sales department was $73,800.
11. September 30th. Depreciation of fixed assets in the month: $2,600.
12. September 30th. Income taxes accrued 30%

General Journal

30
Entry
Date Account title and Description Debit Credit
no.

31
Entry
Date Account title and Description Debit Credit
no.

32
Entry
Date Account title and Description Debit Credit
no.

33
Entry
Date Account title and Description Debit Credit
no.

34
T accounts

35
36
37
 Trial Balance

Account activity Ending balances

Account title
Debit Credit Debit Credit

38
 Equal amounts

General Manager Accountant

Actividad 3.1
Ejercicio práctico de Balance general

With Trial balance prepare Balance sheet

39
 Garry Company
Trial balance
For the month of March 2021
Account Activity Ending balances
Account Debit Credit Debit Credit
Cash $247,420 $201,000 $46,420
Banks 1,200,000 151,200 1,048,800
Accounts receivable 377,220 377,220
Notes receivable 322,300 322,300
Merchandise Inventory 605,400 310,008 295,392
Equipment 50,000 50,000
Computer equipment 30,400 30,400
Furniture 18,000 18,000
Office Supplies Inventory 1,000 1,000
Prepaid Rent 80,000 20,000 60,000
Accounts payable 3,000 192,600 $189,600
Sundry creditors 38,000 38,000
Notes payable 131,000 131,000
Expenses payable 27,000 27,000
Salaries payable 143,400 143,400
Interest payable 50,000 50,000
Long-term debt 500,000 500,000
Paid-in Capital 780,000 780,000
Cost of goods sold 306,388 4,200 302,188
Administrative expenses 131,000 131,000
Selling expenses 60,400 60,400
Interest expense 61,000 61,000
Sales revenue 20,000 914,020 894,020
Interest income 29,300 29,300
Accumulated depreciation 21,800 21,800
Equal amounts $3,513,528 $3,513,528 $2,804,120 $2,804,120

40
41
General Manager Accountant
 Actividad 3.2
Ejercicio práctico de Estado de resultado

With trial balance prepare Income Satement

Garry Company
Trial balance
For the month of March 2021
Account Activity Ending balances
Account Debit Credit Debit Credit
Cash $247,420 $201,000 $46,420
Banks 1,200,000 151,200 1,048,800
Accounts receivable 377,220 377,220
Notes receivable 322,300 322,300
Merchandise Inventory 605,400 310,008 295,392
Equipment 50,000 50,000
Computer equipment 30,400 30,400
Furniture 18,000 18,000
Office Supplies Inventory 1,000 1,000
Prepaid Rent 80,000 20,000 60,000
Accounts payable 3,000 192,600 $189,600
Sundry creditors 38,000 38,000
Notes payable 131,000 131,000
Expenses payable 27,000 27,000
Salaries payable 143,400 143,400
Interest payable 50,000 50,000
Long-term debt 500,000 500,000
Paid-in Capital 780,000 780,000
Cost of goods sold 306,388 4,200 302,188
Administrative expenses 131,000 131,000
Selling expenses 60,400 60,400
Interest expense 61,000 61,000
Sales revenue 20,000 914,020 894,020
Interest income 29,300 29,300
Accumulated depreciation 21,800 21,800
Equal amounts $3,513,528 $3,513,528 $2,804,120 $2,804,120

42
 Income Statement

General Manager Accountant

43
 Evidencia 3
Reporte de Estados financieros: Balance General y Estado de Resultados

I. With the Trial Balance 1,2,3, prepare practice 3, 4, 5.

⬧ Income Statement
⬧ Balance Sheet

Practice 3
1. Trial Balance

MX Company
Trial balance
For the month of May 2021
Account Activity Ending balances
Account Debit Credit Debit Credit
Cash $500,000 $402,000 $98,000
Banks 600,000 270,000 330,000
Accounts receivable 328,201 328,201
Notes receivable 319,000 319,000
Merchandise Inventory 780,000 371,493 408,507
Equipment 40,000 40,000
Computer Equipment 100,000 100,000
Accounts payable 4,200 340,000 335,800
Notes payable 55,000 55,000
Sundry creditors 20,000 20,000
Expenses payable 397,800 397,800
Paid-in Capital 458,000 458,000
Cost of goods sold 347,293 347,293
Administrative expenses 200,000 200,000
Selling expenses 220,800 220,800
Interest expense 5,000 5,000
Sales revenue 3,089 1,101,290 1,098,201
Interest income 29,000 29,000
Accumulated depreciation 3,000 3,000
Equal amounts $3,447,583 $3,447,583 $2,396,801 $2,396,801

44
 Income Statement

General Manager Accountant

45
46
General Manager Accountant
 Evidencia 3
Practice 4
2. Trial Balance

Prepare

⬧ Income Statement
⬧ Balance Sheet

ABC Electronics Company

Trial balance
For the month of September 2021
Account Activity Ending balances
Account Debit Credit Debit Credit
Cash $156,000 $135,000 $21,000
Banks 635,000 157,000 478,000
Accounts receivable 150,000 150,000
Notes receivable 429,000 429,000
Merchandise Inventory 513,000 230,000 283,000
Equipment 160,000 160,000
Computer Equipment 160,000 160,000
Accounts payable 20,000 280,000 260,000
Notes payable 98,000 98,000
Sundry creditors 210,000 210,000
Expenses payable 40,000 40,000
Salaries payable 73,800 73,800
Paid-in Capital 616,000 616,000
Cost of goods sold 210,000 3,000 207,000
Administrative expenses 42,600 42,600
Selling expenses 88,800 88,800
Sales revenue 10,000 690,000 680,000
Interest income 39,000 39,000
Accumulated depreciation 2,600 2,600
Equal amounts $2,574,400 $2,574,400 $2,019,400 $2,019,400

47
 Income Statement

General Manager Accountant

48
49
General Manager Accountant
 Evidencia 3
Practice 5
3. Trial Balance

Prepare

⬧ Income Statement
⬧ Balance Sheet

Leading Technology Company

Trial balance
For the month of March 2021
Account Activity Ending balances
Account Debit Credit Debit Credit
Cash $322,000 $295,000 $27,000
Banks 395,000 199,000 196,000
Accounts Receivable 122,100 122,100
Merchandise Inventory 676,500 213,880 462,620
Notes Receivable 210,187 210,187
Equipment 20,000 20,000
Computer Equipment 100,000 100,000
Furniture 2,000 2,000
Accounts Payable 3,000 275,000 $272,000
Notes Payable 164,400 164,400
Salaries Payable 220,000 220,000
Sundry Creditors 82,000 82,000
Expenses Payable 20,000 20,000
Paid-in Capital 214,000 214,000
Cost of goods sold 210,880 3,500 207,380
Administrative expenses 201,500 201,500
Selling expenses 55,000 55,000
Interest Expense 10,400 10,400
Sales Revenue 12,000 642,270 630,270
Interest Income 10,017 10,017
Accumulated depreciation 1,500 1,500
Equal amounts $2,340,567 $2,340,567 $1,614,187 $1,614,187

50
 Income Statement

General Manager Accountant

51
52
General Manager Accountant
 Actividad 4.1
Reporte práctico de razones financieras

Practice 1
Calculate the financial ratios of profitability, liquidity and leverage for ABQ Company;
Financial ratios required:

⬧ Return on Investment
⬧ Return on Equity
⬧ Working Capital
⬧ Current Ratio
⬧ Acid-test Ratio
⬧ Debt Ratio
⬧ Debt/Equity Ratio

53
 ABQ Company
Comparative Balance Sheets
At April 30th. and March 31st. 2021

April 30th. March 31st.

Assets
Current Assets
Cash $ 20,000 $ 16,000
Accounts receivable 100,800 120,000
Notes receivable 40,000 30,000
Merchandise Inventory 300,000 200,000
Total of current assets $ 460,800 $ 366,000
Fixed Assets
Equipment 80,000 60,000
Furniture 20,000 30,000
Computer equipment 90,000 84,000
Less: Accumulated depreciation 80,000 74,000
Total of fixed assets $ 110,000 $ 100,000
Deferred charges
Office supplies $ 3,200 $ 2,000
Prepaid Rent $ 226,000 $ 200,000
Total of deferred charges $ 229,200 $ 202,000
Total of Assets $ 800,000 $ 668,000
Liabilities
Current Liabilities
Accounts payable $ 20,000 $ 4,000
Bank loan 100,000 80,000
Salaries payable 26,000 96,000
Expenses payable 3,000 2,000
Interest payable 2,000 10,000
Taxes payable 23,000 26,000
Total of current liabilities $ 174,000 $ 218,000
Long-term debt $ 300,000 $ 200,000
Total of Liabilities $ 474,000 $ 418,000
Owners´equity
Common stock $ 236,000 $ 180,000
Retained Earnings 90,000 70,000
Total of Owners´equity $ 326,000 $ 250,000
Total of Liabilities plus Owners´equity $ 800,000 $ 668,000

Manager´s signature Accountant´s signature

Income Statement Information

Net Income $ 200,000

54
55
4.2 Práctica de análisis de razones
Practice 2

Hartford, Inc.
Comparative Balance Sheets
At December 31st, 2021 and 2020

2021 2020
Assets
Current Assets
Cash $ 53,000 $ 88,000
Accounts receivable 50,000 73,000
Merchandise Inventory 56,000 49,000
Total of current assets $ 159,000 $ 210,000
Fixed Assets
Land $ 40,000 $ 40,000
Buildings 200,000 140,000
Equipment 60,000 22,000
Less: Accumulated depreciation 168,000 123,000
Total of fixed assets $ 132,000 $ 79,000
Total of Assets $ 291,000 $ 289,000
Liabilities
Current Liabilities
Accounts payable $ 23,000 $ 29,000
Bank loan 32,000 27,000
Notes payable 48,000 36,000
Total of current liabilities $ 103,000 $ 92,000
Long-term debt $ 85,000 $ 110,000
Total of Liabilities $ 188,000 $ 202,000
Owners´equity
Common stock $ 40,000 $ 30,000
Retained Earnings 63,000 57,000
Total of Owners´equity $ 103,000 $ 87,000
Total of Liabilities plus Owners´equity $ 291,000 $ 289,000

Manager´s signature Accountant´s signature

Income statement information

Net Income $ 9,000

56
Evidencia 4
Evidencia 4 Reporte escrito de razones financieras

Practice 3,4,5
With Comparative Balance Sheet

Calculate the financial ratios of profitability, liquidity and leverage for Hoeman, Inc; Millco,
Inc; Harris, Inc.
Write down the formula, calculation and answer for each ratio.

Financial ratios required:

⬧ Return on Investment
⬧ Return on Equity
⬧ Working Capital
⬧ Current Ratio
⬧ Acid-test Ratio
⬧ Debt Ratio
⬧ Debt/Equity Ratio

57
Practice 3

Hoeman, Inc.
Comparative Balance Sheets
At December 31st, 2014 and 2021

2021 2020
Assets
Current Assets
Cash $ 52,000 $ 46,000
Accounts receivable 124,000 134,000
Merchandise Inventory 156,000 176,000
Total of current assets $ 332,000 $ 356,000
Fixed Assets
Land $ 140,000 $ 140,000
Buildings 415,000 290,000
Less: Accumulated depreciation 120,000 105,000
Total of fixed assets $ 435,000 $ 325,000
Total of Assets $ 767,000 $ 681,000
Liabilities
Current Liabilities
Accounts payable $ 167,000 $ 197,000
Notes payable 155,000 124,000
Total of current liabilities $ 322,000 $ 321,000
Long-term debt $ 192,000 $ 139,000
Total of Liabilities $ 514,000 $ 460,000
Owners´equity
Common stock $ 50,000 $ 45,000
Retained Earnings 203,000 176,000
Total of Owners´equity $ 253,000 $ 221,000
Total of Liabilities plus Owners´equity $ 767,000 $ 681,000

Manager´s signature Accountant´s signature

Income statement information

Net Income $ 94,000

58
Practice 4

59
 Millco, Inc.
Comparative Balance Sheets
At February 28th and January 31st. 2021

February 28th January 31st.

Assets
Current Assets
Cash $ 42,000 $ 37,000
Accounts receivable 64,000 53,000
Notes receivable 30,000 32,000
Merchandise Inventory 81,000 98,000
Total of current assets $ 217,000 $ 220,000
Fixed Assets
Machinery 166,000 152,000
Less: Accumulated depreciation 24,000 21,000
Total of fixed assets $ 142,000 $ 131,000
Deferred charges
Office supplies $ 1,000 $ 800
Prepaid Rent $ 20,000 $ 10,000
Total of deferred charges $ 21,000 $ 10,800
Total of Assets $ 380,000 $ 361,800
Liabilities
Current Liabilities
Accounts payable $ 37,000 $ 41,000
Short-term debt 44,000 44,000
Salaries payable 21,000 26,000
Expenses payable 38,000 40,000
Interest payable 4,000 8,000
Taxes payable 9,000 5,200
Total of current liabilities $ 153,000 $ 164,200
Long-term debt $ 33,000 $ 46,000
Total of Liabilities $ 186,000 $ 210,200
Owners´equity
Common stock $ 104,000 $ 87,600
Retained Earnings:
Beginning balance 64,000 43,000
Net Income for the month 36,000 29,000
Dividends 10,000 8,000
Ending balance $ 90,000 $ 64,000
Total of Owners´equity $ 194,000 $ 151,600
Total of Liabilities plus Owners´equity $ 380,000 $ 361,800

Manager´s signature Accountant´s signature

Income statement information

Net Income $ 36,000

60
 Practice 5

Harris, Inc.
Comparative Balance Sheet
At December 31st, 2021 and 2020

2021 2020
Assets
Current Assets
Cash $ 6,000 $ 15,000
Accounts receivable 67,000 61,000
Merchandise Inventory 46,000 76,000
Total of current assets $ 119,000 $ 152,000
Fixed Assets
Land $ 27,000 $ 34,000
Buildings 208,000 118,000
Less: Accumulated depreciation 101,000 72,000
Total of fixed assets $ 134,000 $ 80,000
Total of Assets $ 253,000 $ 232,000
Liabilities
Current Liabilities
Accounts payable $ 61,000 $ 58,000
Short-term debt 12,000 16,000
Notes payable 24,000 33,000
Total of current liabilities $ 97,000 $ 107,000
Long-term debt $ 65,000 $ 50,000
Total of Liabilities $ 162,000 $ 157,000
Owners´equity
Common stock $ 28,000 $ 20,000
Retained Earnings 63,000 55,000
Total of Owners´equity $ 91,000 $ 75,000
Total of Liabilities plus Owners´equity $ 253,000 $ 232,000

Manager´s signature Accountant´s signature

Income statement information

Net Income $ 13,000

61
 Accounting
Final Project

62
 FINAL PROJECT

Requirement

Value

Some of the transactions have missing amounts. Write down an amount of

1 -
your choice for each of them, based on the list that will be provided by the
professor.

2 Write down the journal entries for each of the 58 transactions. 5 points

3 Prepare the T Accounts for each of the accounts used in the journal entries. 3 points

4 Prepare the Trial Balance for April 2021. 3 points

5 Prepare the Income Statement for the month. 3 points

6 Prepare a Balance Sheet at April 30th 2021. 3 points

7 Calculate the following financial ratios: Return on Investment, Return on 3 points

Equity, Working Capital, Current Ratio, Acid-test Ratio, Debt Ratio and
Debt/Equity Ratio

8 Write down, in 1 page, your interpretation of the financial ratios and a 3 points
report of the financial situation of the company.

Prepare Word, Pdf of Word, Excel

5 points
9

Prepare Presentation Power Point

10 2 points

63
Total 30 points
Information to fill in the spaces in the list of transactions for a Merchandising
Company:

64
 Transaction number Range of amounts

1 $30,800 - $40,800

$30,000 - $40,000
2

$85,000 - $90,000
3

$40,000 - $42,100
5

$200,000 - $215,000
6

$350,000 - $380,000
7

$38,000 - $40,000
9

$450,000 - $480,000
10

$28,000 - $30,000
12

$295,000 - $300,000
22

$430,000 – 450,000
34

$800 - $1,000
40

$930,000 – $950,000
50

$200,000 - $210,000
53

Merchandising $300,000 - $320,000 Company

54

Name of the Company: _____________________________________________

65
 Beginning balances in April 2021:

Assets Liabilities and Owners´ equity

Cash $ 50,000 Accounts payable $ 500,000
Banks 300,000 Paid-in Capital 850,000
Merchandise Inventory 800,000
Equipment 200,000
$ 1,350,000 $ 1,350,000

1. April 1st – The company sold merchandise in cash for $__________, plus VAT. The
cost was $10,000.
2. April 2nd - The company purchased new equipment for $__________; plus VAT, the
payment was made with a check.
3. April 2nd - The company purchased merchandise for $__________, plus VAT, and
paid with a check.
4. April 2nd. From the previous purchase, the company paid for shipping costs with a
check a total of $5,000, plus VAT.
5. April 3rd - The company bought 2 new computers for a total of $__________, plus
VAT, the payment was made with a check.
6. April 3rd – Sale of merchandise in cash for a total of $__________, plus VAT
The cost of the products was $60,000.
7. April 4th – Sale of merchandise on credit for a total of $__________, plus VAT. The
cost was $180,000.
8. April 5th - The company purchase8d new furniture on credit for $10,000, plus VAT.
9. April 6th - Purchase of merchandise for inventory on credit for a total of
$__________, plus VAT.
10. April 7th - The company sold merchandise on credit for a total of $__________, plus
VAT. The cost of the products was $210,000.
11. April 8th – From the sale on April 1st, the customer returned merchandise for $3,000.
The amount was refunded with a check. The cost of this merchandise was $900.
12. April 9th - The company purchased equipment on account and the total was
$__________, plus VAT.
13. April 10th - Purchase of office supplies for inventory, paid with a check. The total
was $3,500, plus VAT.

April 10th – Sale of merchandise in cash for $100,000, plus VAT. The cost of goods sold
was $30,000.
14. April 11th - Purchase of equipment for a total of $10,000, the payment was made with
a check, plus VAT.
15. April 12th – The company made a deposit in its bank account for $200,000.

66
 16. April 13th - The company
purchased merchandise for inventory for a total of $51,340 plus
VAT, and paid with checks.
17. April 13th - Sale of merchandise for a total of $388,000, plus VAT. The sale was
made 50% in cash and 50% on account =credit. Cost of goods sold $160,000.
18. April 14th - Sale of merchandise in cash for a total of $300,500, plus VAT. The cost
of this merchandise was $100,000.
19. April 14th - Sale of merchandise on credit for a total of $200,350, plus VAT. Cost of
goods sold $100,800.
20. April 15th – The company sold products in cash for $100,610, plus VAT, and gave a
10% discount. The cost of those products was $30,600.
21. April 16th - Purchase of merchandise for $__________, 50% was paid in cash and
50% of the purchase was on account =credit, plus VAT.
22. April 16th - Administrative expenses accrued in the month (Electricity and water):
$90,000, plus VAT.
23. April 16th - The company must pay the wages of 4 employees who work in the
administrative department. The total is $120,000. Salaries
24. April 16th – The total amount of wages accrued of the sales department is $40,000.
Salaries
25. April 16th – Total amount of commissions that must be paid to sales personnel:
$100,000. Salaries
26. April 17th – The company purchased merchandise for $20,200 and paid with a check,
plus VAT. The supplier gave a 10% discount.
27. April 17th - Payment in advance of the rent of a warehouse for $60,000 in cash, plus
VAT
28. April 17th – From the sale on April 10th, the customer returned merchandise for a total
of $20,000. The cost of this merchandise was $6,000.
29. April 17th – Purchase of merchandise for $40,000, plus VAT, guaranteed with notes.
30. April 17th – From the previous purchase, the company paid for shipping costs a total
of $2,600 plus VAT, in cash.
31. April 18th – The company made a deposit in its bank account for $400,000.
32. April 18th - The company lent $3,000 to an employee. loan
33. April 18th - Sale of merchandise for $__________. plus VAT. The customer
guaranteed the payment with notes. The cost of goods sold was$200,700.
34. April 19th – The company borrowed $40,000 from the bank and has to pay back in 8
months.
35. April 19th – Purchases of merchandise for inventory on credit for a total of $20,800.
plus VAT.
36. April 19th - The company sold merchandise for $234,000, plus VAT, and the customer
issued notes for this amount, including a 12% interest. The cost of the merchandise
was $95,800.
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 37. April 20th – From the purchase on
credit yesterday, we returned merchandise for $3,500.
38. April 20 – Purchase of merchandise for $200,000, plus VAT. The 50% of this
th

amount was paid with a check and for the other 50% we issued a note, including a
10% interest.
39. April 20th - Telephone service expense accrued in the administrative department for
a total of $__________, plus VAT and in the sales department $2,000, plus VAT.
40. April 20th – Sale of merchandise for $88,000, 80% in cash and 20% on account, plus
VAT. The cost of goods sold was the 40% of the sale.
41. April 21st – Purchase of computer equipment for $40,300, plus VAT. which was paid
with a check.
42. April 21st – Purchase of furniture for $180,300, plus VAT. The payment was made
with a check.
43. April 21st – The company returned merchandise to the supplier for $20,000 and for
this amount we received a check.
44. April 22nd - The company borrowed $800,000 from a bank, which was deposited in
the company´s bank account. The debt matures in 2 years. Interest payable $80,000.
45. April 23rd – Equipment was purchased for $300,450; plus VAT, 50% was paid with
a check, and for the rest we issued a note.
46. April 24th – Equipment was purchased on credit for a total of $50,000, plus VAT.
47. April 24th – The company sold merchandise in cash for a total of $900,000, plus VAT.
The cost of this merchandise was the 30% of the sale.
48. April 24th – The company paid shipping costs from the previous sale. The amount
was $40,000 plus VAT, and was paid with a check.
49. April 25th – The company collected accounts receivable for $__________. This
amount was deposited in the company´s bank account.
50. April 25th – The company made a deposit in its bank account for $940,000.
51. April 26th – Purchase of equipment for $1,000,000 and furniture for $290,000; plus
VAT, the company paid with checks.
52. April 27th – Advertising expense for $__________ plus VAT, was paid with a check.
53. April 27th – From the sale on April 24th, the customer returned $__________; this
amount was refunded with a check.
54. April 28th – Purchases of merchandise for inventory for $700,000; plus VAT, 30%
was paid with a check and the rest on account. =credit
55. April 29th – Payment of accounts payable for $320,890; $120,890 in cash and the rest
with a check.
56. April 30th - Depreciation of fixed assets in the month: $133,596.
57. April 30th - Income taxes accrued 30%

General Journal

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Date Account title and Description Debit Credit
no.

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Date Account title and Description Debit Credit
no.

70
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Date Account title and Description Debit Credit
no.

71
Entry
Date Account title and Description Debit Credit
no.

72
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Date Account title and Description Debit Credit
no.

73
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Date Account title and Description Debit Credit
no.

74
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Date Account title and Description Debit Credit
no.

75
Entry
Date Account title and Description Debit Credit
no.

76
Entry
Date Account title and Description Debit Credit
no.

77
Entry
Date Account title and Description Debit Credit
no.

78
Entry
Date Account title and Description Debit Credit
no.

79
Entry
Date Account title and Description Debit Credit
no.

80
T accounts

81
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90
91
 Trial Balance
Account title Account activity Ending balances

92
 Debit Credit Debit Credit

Equal amounts

General Manager Accountant

93
 Income Statement

General Manager Accountant

94
95
Financial Ratios

96
Financial Report of ________________________________

97
98