Republic of the Philippines

University of Cabuyao
(Pamantasan ng Cabuyao)
College of Business, Accountancy and Administration
Katapatan Mutual Homes, Brgy. Banay-banay, City of Cabuyao, Laguna, Phillippines 4025

Financial Accounting and Reporting, Part 1

S.Y. 2023-2024, 1st Semester

PRACTICE QUESTIONS 1

The following account balances appear in the trial balance of Shiftee Company:

SHIFTEE COMPANY
Trial Balance
December 31, 2021

Cash 40,500
Accounts Receivable 15,000
Allowance for Bad Debts 1,000
Office Supplies 7,200
Land 175,000
Building 800,000
Delivery Equipment 250,000
Kitchen Equipment 175,000
Office Equipment 120,000
Accounts Payable 8,900
Notes Payable 15,000
Noh More, Capital ?
Noh More, Drawing 25,000
Service Income 435,000
Salaries and Wages 60,000
Food Supplies Used 120,000
Insurance Expense 35,000
Interest Expense 10,000

Adjustments Data:

a. Allowance for Bad Debts should be increased to 15% of accounts receivables.

b. Office supplies on hand Php 3,000.
c. Fixed assets shall be depreciated at 10% per annum using double declining balance method.
Building was acquired on January 1 of this year with residual value of Php 50,000; Delivery
equipment was purchased on October 1 of this year with residual value of Php 10,000; kitchen
equipment was purchased on August 15 of this year with residual value of Php 5,000; and office
equipment was bought on November 1 of this year with no residual value.
d. Accrued interest on notes payable Php 600.
e. Accrued salaries and wages is Php 5,000.
f. Insurance expense account is a five- year insurance policy paid on January 1 of this year.
g. Food supplies unused, Php 20,000.

Requirements:

1. Adjusting Entries
2. Adjusted Trial Balance
3. Income Statement
 Republic of the Philippines
University of Cabuyao
(Pamantasan ng Cabuyao)
College of Business, Accountancy and Administration
Katapatan Mutual Homes, Brgy. Banay-banay, City of Cabuyao, Laguna, Phillippines 4025

4. Balance Sheet