ACCTG 1/11/101 FINAL EXAMINATION

Instructor: Michael John V. Dayondon

Name: _______________________________
Section:__________Score:_____
Test I Problem Solving: Show your solutions all in good forms. Focus on your
own business. Huwag maging Daniel Padilla.

PROBLEM 1
At the end of November, Bonggo Business Inc. consisted of 50 vehicles purchased at P150,000
each and has a standard selling price of P230,000. During the month of December, the following
merchandising transactions occurred:

Dec. 2
Purchased 10 vehicles on account for P1,500,000 from Auto-Auto Company, terms 2/10, n/30.
Dec. 3
Paid freight costs of P50,000 on vehicles purchased from Auto-Auto Company.
Dec. 5
Sold 20 vehicles on account to Megalodon Whale Trading for P230,000 each, terms n/30.
Dec. 9
Received P300,000 credit for 2 unrepairable vehicles returned to Auto-Auto Company.
Dec. 11
Paid outstanding liability to Auto-Auto Company.
Dec. 14
Received full payment from Megalodon Whale Trading.
Dec. 18
Sold 15 vehicles on account to Moon Trading Grocery, P3,450,000, terms n/60.
Dec. 19
Purchased 5 vehicles on account for P150,000 each from General Truckers Co., terms, 1/10,
n/30.
Dec. 24
Received payment worth 70% of outstanding collectibles from Moon Trading Grocery.
Dec. 30
Paid General Truckers Co. in full.

Requirements:
1. Prepare for Journal Entries using Periodic Inventory Method.
2. Prepare for Cost of Goods Sold Computation
3. Compute for the Remaining Vehicles as of the end of December.

Problem 2
Data related to COGS, an expense account, are presented below.
Purchase Discount 2,000.00 Freight-In 7,000.00
Beginning Inventory 100,000.00 Freight-Out 5,000.00
Ending Inventory 70,000.00 Sales 212,500.00
Purchase Rets. & Allow. 10,000.00 Purchases 60,000.00

Determine the following:

1. Cost of Goods Available for Sales
2. Net Purchases
3. Cost of Goods Sold
4. Cost of Goods Purchased
5. Net Sales
Problem 3
Presented below is the financial information of Papasakaya Hardware for the year 2021, 2022,
and 2023. Fill in the missing amounts.
2021 2022 2023
Beginning Inventory 100,000 ? 80,000
Purchases ? 320,000 240,000
Purchase Rets. & Allow. 6,000 ? 24,000
Purchase Discounts 4,000 8,000 ?
Net Purchases ? 300,000 ?
Freight-In 5,000 ? 20,000
Cost of Goods Purchased ? 315,000 ?
Cost of Goods Available for Sale ? 365,000 300,000
Ending Inventory 50,000 80,000 ?
Cost of Goods Sold 105,000 ? 205,000

Problem 4
Presented below is the financial data of UntaMakapasa Veterinary Supplies related to the
Statement of Financial Performance for the year 2019, 2020, 2021, and 2022. Determine the
missing amounts.
2019 2020 2021 2022
Net Sales ? 200,000 180,000 320,000
Cost of Goods Sold 60,000 ? 120,000 ?
Gross Profit ? 90,000 ? ?
Operating Expenses 30,000 ? 40,000 60,000
Net Income/ (Net Loss) 10,000 40,000 ? 90,000

Test II Multiple Choice Questions: Encircle your best choice. Select only one
answer among the choices. Do not collect and collect before you select. Ano ka
artista?

1. When comparing a retail business to a service business, the financial statement that changes
the least is the
a. Balance Sheet
b. Income Statement
c. Statement of Changes in Owner’s Equity
d. Statement of Cash Flow

2. Which account is not classified as selling expense?

a. Sales Salaries
b. Transportation-out
c. Sales Discount
d. Advertising Expense

3. If the buyer is to pay the transportation costs of delivering merchandise, delivery terms are
a. FOB Shipping Point
b. FOB Destination
c. FOB n/30
d. FOB Buyer

4. A sales invoice included the following information: Merchandise Price, P4,000; Transportation,
P300; terms 1/10, n/eom, FOB Shipping Point. Assuming that a credit for merchandise
returned of P600 is granted prior to payment, that the transportation is prepaid by the seller,
and that the invoice is paid within the discount period, what is the amount of cash received by
the seller?
a. P3,366
b. P3,400
c. P3,666
d. P3,950

5. A retailer purchases merchandise with a catalog list price of P10,000. The retailer receives a
25% trade discount and credit terms of 2/10, n/30. What amount should the retailer debit to
the Merchandise Inventory account?
a. P7,500
b. P10,000
c. P9,800
d. P7,350