Institutional Assessment

The account balances of the C. Castro Company as at Dec.
1, 2017 are listed below:
110 Cash 214,000

120 Accounts Receivable 338,000
130 Merchandise Inventory 426,000
140 Office Supplies 31,000
150 Prepaid Insurance 48,000
160 Land 370,000
170 Building 900,000
175 Accumulated Depreciation - Building 250,000
180 Equipment 800,000
185 Accumulated Depreciation - Equipment 200,000
210 Accounts Payable 172,000
230 Mortgage Payable 1,200,000
310 Castro, Capital 1,305,000
3,127,000 3,127,000
-
The following transactions occurred during the month of December 2017
Dec-01 Settled accounts payable of P115,000 less 2% discount.

3 Collected accounts receivable of P180,000 less 3% discount.
4 Sold merchandise on account to A. Plural Supplies, P210,000.
Terms : FOB destination: 3/10, n/30.
5 Received returns from A. Plural Supplies, P25,000
7 Purchased merchandise from Naga Products P232,000
Terms : FOB shipping point: 2/10, n/30.
9 Returned goods to Naga Products, P12,000 acquired last Dec. 7
10 Paid monthly interest on mortgage payable P8,000.
11 Received payment from A. Plural Supplies for the amount due.
12 Paid freight charges on the Dec. 4 shipment P13,000.
13 Paid Naga Products for the merchandise purchased on Dec. 7 less
returns and discounts.
14 Sold merchandise to Ruiz Shoppers P330,000
Terms: FOB Shipping point: 3/10, n/30.
14 Paid freight charges of P6,000 for the merchandise acquired from
Naga Products last Dec. 7
15 Paid Salaries, P74,000
18 Purchased merchandise on account from Oquendo Trading, P113,000.
18 Acquired office supplies for cash P9,000
19 Received payment from Ruiz Shoppers for the Dec. 14 transactions less discounts
20 Returned P8,000 of the merchandise purchased on Dec.18 from Oquendo Trading.
21 Paid representation expense P3,000
23 Sold merchandise to Pimentel Shop P242,000; Terms FOB shipping point 3/10,n/30
24 Paid Oquendo Trading for merchandise purchased on December 18 less
26 Paid P9,000 for representation expense.
28 Paid freight charges on the merchandise purchased from Oquendo Trading
on December 18 P4,000.
29 Purchased merchandise on account from Nueva Wholesale Company
P540,000. Terms: 30% trade discount FOB destination 3/10,n/30.
29 Received from Pimentel returned merchandise in the amount of
P18,000 from the sale of December 23.
30 Paid P19,000 for repairs on the equipment.
31 Mr. C. Castro withdrew P170,000 from the business.
Required:
1 Post the Dec, 1, 2017 account balances to the ledger accounts. Refer to the
following list of accounts in addition to the accounts in the trial balance:
Salaries Payable (220); Castro, withdrawals (320); Income Summary (330);
Sales (410); Sales Returns and Allowances (420); Sales Discounts (430);
Purchases (510); Purchase Discount (530) Purchase Returns and Allowances (520);
Transportation In (540); Salaries Expense (610); Office Supplies Expense (620);
Insurance Expense (630); Depreciation Expense-Building (640);
Depreciation Expense - Equipment (650); Transportation Out (660);
Representation Expense (670); Repairs Expense (680); and
Interest Expense (690);
2 Record the transactions for the month of December in a journal and

post the transactions to the ledgers.
3 Prepare the worksheet using the following information:

a. Salaries in the amount of P73,000 have accrued on Dec. 31
b. Insurance coverage with the premiums of P2,000 has expired
at month-end.
c. Depreciation on the building and on the equipment for the month
amounted to P3,000 and P4,500 respectively.
d. Office Supplies on hand at month-end amounted to P7,000.
e. Account of the inventory amounted to P653,000 on Dec 31 2017.
4 Prepare AdjustedTrial Balance
5 Prepare an income statement and a statement of changes in equity
for the month ended Dec 31, 2017 and a balance sheet as at Dec 31,2017.
6 Prepare the adjusting and closing entries for the month.
7 Post the adjusting and closing entries to the ledger accounts.
8 Prepare Post - Closing Trial Balance
Qorban Institute of Technology Training and Assessment Center, Inc.
Valderosa Street, Isabela City Proper, Isabela City, Zamboanga Peninsula
INSTITUTIONAL ASSESSMENT - BOOKKEEPING NCIII
The account balances of the Orro Company as at Dec. 1, 2017 are listed below:
110 Cash 214,000

160 Land 370,000
310 Orro, Capital 1,305,000
3,127,000 3,127,000
-

31 Orro withdrew P170,000 from the business.
Required:
Salaries Payable (220); Orro, withdrawals (320); Income Summary (330);
Depreciation Expense - Equipment (650); Transportation out (660);


at month-end.
Qorban Institute of Technology Training and Assessment Center, Inc.
Valderosa Street, Isabela City Proper, Isabela City, Zamboanga Peninsula
INSTITUTIONAL ASSESSMENT - BOOKKEEPING NCIII
The account balances of the Orro Company as at Dec. 1, 2017 are listed below:
110 Cash 214,000

160 Land 370,000
310 Orro, Capital 1,305,000
3,127,000 3,127,000
-

31 Orro withdrew P170,000 from the business.
Required:
Salaries Payable (220); Orro, withdrawals (320); Income Summary (330);
Depreciation Expense - Equipment (650); Transportation out (660);


at month-end.
Journal Entries
Dec-01 Accounts Payable 115,000.00

Purchase Discount 2,300.00
Cash 112,700.00
To record payment made to supplies with 2% discount.
3 Cash 174,600.00
Sales Discount 5,400.00
Accounts Receivable 180,000.00
To record collection of account with 3% discount.
4 Accounts Receivable 210,000.00

Sales 210,000.00
To record sales of merchandise on account.
5 Sales Returns and Allowances 25,000.00

To record returns of merchandise sold.
7 Purchases 232,000.00
Accounts Payable 232,000.00
To record purchased merchandise from Naga Products.
9 Accounts Payable 12,000.00

Purchase Returns & Allowances 12,000.00
To record returned goods to Naga Products.
10 Interest Expense 8,000.00

Cash 8,000.00
To record payment of Interest on mortgage
11 Cash 179,450.00
To record collection of payment from A. Plural
12 Transportation Out 13,000.00

Cash 13,000.00
To record payment of freight

Purchase discount 4,400.00
Cash 215,600.00
To record payment of account to Naga Products.
Sale 330,000.00
To record sales of merchandise on account.
14 Transportation In 6,000.00
Cash 6,000.00
To record sales of meerchandise on account.
15 Salaries Expense 74,000.00

Cash 74,000.00
To record payment of salaries.
18 Purchases 113,000.00
To record merchandise purchased on account.
18 Office Supplies 9,000.00

Cash 9,000.00
To record merchandise purchased on account
19 Cash 320,100.00
To record collection.

Purchase Returns and Allowances 8,000.00
To record returned merchandise
21 Representation Expense 3,000.00

Cash 3,000.00
To record payment of representation expense.

Sales 242,000.00
To record sales of merchandise to Pimental shop.

Cash 102,900.00
To record payment of Account
26 Representation Expense 9,000.00

Cash 9,000.00
To record representation expense.
28 Transportation In 4,000.00
Cash 4,000.00
To record payment of freight
29 Purchases 378,000.00
To record merchandise purchased on account with 30% trade discount
List Price 540,000.00

Trade Discount 30% 162,000.00
Invoice Price 378,000.00
29 Sales Returns and Allowaces 18,000.00

30 Repairs Expense 19,000.00

Cash 19,000.00
To record payment of repairs made.
31 Orro, withdrawal 170,000.00

Cash 170,000.00
To record withdrawal of Orro Capital
CASH Code:
Date Ref Debit Credit Balance
Beg. Balance 214,000.00
Dec-01 112,700.00 101,300.00
3 174,600.00 275,900.00
10 8,000.00 267,900.00
11 179,450.00 447,350.00
12 13,000.00 434,350.00
13 215,600.00 218,750.00
14 6,000.00 212,750.00
15 74,000.00 138,750.00
18 9,000.00 129,750.00
19 320,100.00 449,850.00
21 3,000.00 446,850.00
24 102,900.00 343,950.00
9,000.00 334,950.00
4,000.00 330,950.00
30 19,000.00 311,950.00
31 170,000.00 141,950.00
ACCOUNTS RECEIVABLE Code:

Beg Bal 338,000.00
Dec-03 180,000.00 158,000.00
4 210,000.00 368,000.00
5 25,000.00 343,000.00
11 185,000.00 158,000.00
14 330,000.00 488,000.00
19 330,000.00 158,000.00
23 242,000.00 400,000.00
29 18,000.00 382,000.00
OFFICE SUPPLIES Code:

Beg Bal 31,000.00
Dec-18 9,000.00 40,000.00
4 AJE 33,000.00 7,000.00
PREPAID INSURANCE Code:

Beg Bal 48,000.00
Dec-31 AJE 2,000.00 46,000.00
MERCHANDISE INVENTORY Code:

Beg 426,000.00
Dec-31 CE 426,000.00 -
Dec-31 653,000.00
LAND Code:
Beg 370,000.00
BUILDING Code:
Beg Bal 900,000.00
ACC. DEPRECIATION - BUILDING Code:

Beg Bal - 250,000.00
Dec-31 AJE 3,000.00 - 253,000.00
EQUIPMENT Code:
Beg Balance 800,000.00
ACC. DEPRECIATION - EQUIPMENT Code:

Beg Bal - 200,000.00
Dec-31 AJE 4,500.00 - 204,500.00
ACCOUNTS PAYABLE Code:

Beg Bal - 172,000.00
Dec-01 115,000.00 - 57,000.00
7 232,000.00 - 289,000.00
9 12,000.00 - 277,000.00
13 220,000.00 - 57,000.00
20 8,000.00 - 49,000.00
24 105,000.00 56,000.00
18 113,000.00 - 57,000.00
29 378,000.00 - 435,000.00
SALARIES PAYABLE Code:

Dec-31 AJE 73,000.00 - 73,000.00
MORTGAGE PAYABLE Code:

Dec-31 1,200,000.00 - 1,200,000.00
ORRO, CAPITAL Code:

Beg - 1,305,000.00
550 - 1,304,450.00
Dec-31 170,000.00 - 1,134,450.00
ORRO, WITHDRAWAL Code:

Dec-31 170,000.00 170,000.00
31 CE 170,000.00 0.00
INCOME SUMMARY Code:

Dec-31 CE 1,464,350.00 1,464,350.00
31 CE 810,800.00 653,550.00
31 CE 550.00 653,000.00
Dec-31 AJE - 653,000.00 -
SALES Code:
Dec-04 210,000.00 - 210,000.00
14 330,000.00 - 540,000.00
23 242,000.00 - 782,000.00
31 CE 782,000.00 -
SALES RETURNS AND ALLOWANCES Code:

Dec-05 25,000.00 25,000.00
29 18,000.00 43,000.00
31 43,000.00 -
SALES DISCOUNT Code:

Dec-01 5,400.00 5,400.00
11 5,550.00 10,950.00
19 9,900.00 20,850.00
31 CE 20,850.00 -
PURCHASES Code:
Dec-07 232,000.00 232,000.00
18 113,000.00 345,000.00
29 378,000.00 723,000.00
31 723,000.00 -
PURCHASES RETURNS & ALLOWANCES Code:

Dec-09 12,000.00 12,000.00
Dec-20 8,000.00 20,000.00
Dec 31 CE 20,000.00 -
PURCHASE DISCOUNT Code:

Dec-01 2,300.00 - 2,300.00
28 4,400.00 - 6,700.00
29 2,100.00 - 8,800.00
31 CE 8,800.00 -
TRANSPORTATION IN Code:
Dec-14 6,000.00 6,000.00
28 4,000.00 10,000.00
31 10,000.00 -
SALARIES EXPENSE Code:

Dec-15 74,000.00 74,000.00
31 AJE 73,000.00 147,000.00
31 CE 147,000.00 -
OFFICE SUPPLIES EXPENSE Code:

Dec-31 AJE 33,000.00 33,000.00
31 CE 33,000.00 -
INSURANCE EXPENSE Code:

Dec-31 AJE 2,000.00 2,000.00
31 CE 2,000.00 -
DEPRECIATION EXPENSE-BUILDING Code:

Dec-31 AJE 3,000.00 3,000.00
31 CE 3,000.00 -
-
DEPRECIATION EXPENSE-EQUIPMENT Code:

Dec-31 AJE 4,500.00 4,500.00
31 CE 4,500.00 -
TRANSPORTATION OUT Code:

Dec-12 13,000.00 13,000.00
31 13,000.00 -
REPRESENTATION EXPENSE Code:

Dec-21 3,000.00 3,000.00
26 9,000.00 12,000.00
31 CE 12,000.00 -
REPAIRS EXPENSE Code:

Dec-30 19,000.00 19,000.00
31 CE 19,000.00 -
INTEREST EXPENSE Code:

Dec-10 8,000.00 8,000.00
31 CE 8,000.00 -
Adjusting Enteries
a. Salaries Expense 73,000.00

Accrued Salaries 73,000.00
To record accrued salaries
b. Insurance expense 2,000.00

Prepaid Insurance 2,000.00
To record expired isurance end of the month.
c. Depreciaton Expense-Building 3,000.00

Depreciaton Expense-Equipment 4,500.00 3,000.00
Accumuluated Depreciation - Building 4,500.00
Accumulated Depreciation - Equipment
To record depreciation of Building and Equipment
d. Office Supplies Expense 33,000.00

Office Supplies 33,000.00
To record supplies used
e. Merchandise Inventory 653,000.00

Income Summary 653,000.00
To record inventory, end
ORRO COMPANAY
Trial Balance
For the year ended December 31, 2017
Account Debit Credit

Cash 141,950.00
Merchandise Inventory, Beg 426,000.00
Land 370,000.00
Building 900,000.00
Accumulated Depreciation - Building 253,000.00
Equipment 800,000.00
Accumulated Depreciation - Equipment 204,500.00
Mortgage Payable 1,200,000.00
Salaries Payable 73,000.00
Orro, Capital 1,305,000.00
Orro, Withdrawal 170,000.00
Sales 782,000.00
Sales Reurns anad Allowances 43,000.00
Purchases 723,000.00
Purchase Reurns and Allowances 20,000.00
Transportation In 10,000.00
Salaries Expense 147,000.00
Office Supplies Expense 33,000.00
Insurance Expense 2,000.00
Depreciation Expense - Building 3,000.00
Depreciation Expense - Equipment 4,500.00
Transportation Out 13,000.00
Representation Expense 12,000.00
Repairs Expense 19,000.00
Interest Expense 8,000.00
TOTAL 4,281,300.00 4,281,300.00
-
ORRO COMPANAY
Income Statement
Sales 782,000.00
Less: Sales Returns and Allowances 43,000.00
Sales Discount 20,850.00 63,850.00
Net Sales 718,150.00
COST OF GOODS SOLD
Merchandising Inventory, Beg 426,000.00
Less: Purchase Returns and Allowances 20,000.00
Purchase Discount 8,800.00 28,800.00
Sub-total 694,200.00
Add: Freight In (Transportation In) 10,000.00
Net Purchases 704,200.00
Goods Available for Sale 1,130,200.00
Less: Merchandise Inventory, End 653,000.00
COST OF GOODS SOLD 477,200.00
GROSS PROFIT/MARGIN 240,950.00
LESS: OPERATING AND ADMINISTRATIVE COSTS
Salaries Expense 147,000.00
Depreciation Expense - Building 3,000.00
Depreciation Expense - Equipment 4,500.00
Transportation out 13,000.00
Interest Expense 8,000.00 241,500.00
NET PROFIT (LOSS) - 550.00
ORRO COMPANAY
Balance Sheet
As of December 31, 2017
CURRENT ASSETS
CASH 141,950.00
Merchandise Inventory 653,000.00
TOTAL CURRENT ASSETS 1,229,950.00
NON-CURRENT ASSETS
Land 370,000.00
Building 900,000.00
Less: Depreciation - 253,000.00
Less: Depreciation - 204,500.00
TOTAL NON-CURRENT ASSETS 1,612,500.00

TOTAL ASSETS 2,842,450.00
LIABILITIES AND OWNER'S EQUITY
CURRENT LIABILITIES
TOTAL CURRENT LIABILITIES 508,000.00
NON-CURRENT LIABILITIES
TOTAL NON-CURRENT LIABILITIES 1,200,000.00
TOTAL LIABLITIES 1,708,000.00
OWNER'S EQUITY
TOTAL LIABILITIES AND OWNER'S EQUITY 2,842,450.00

-
ORRO COMPANAY
Statement of Owner's Equity
Beg. Balance Orro, Capital 1,305,000.00

Less: Net Loss 550.00
Sub-total 1,304,450.00
Less: Orro withdrawal 170,000.00
Orro, Capital End 1,134,450.00
ORRO COMPANY
Cash Flow Statement
Cash Flow for Operating Activities

Inflow/Receipts
Collection from customers 674,150.00
Outflow/Payments
Payment of Accounts - 431,200.00
Interest - 8,000.00
Freight - 23,000.00
Repairs - 19,000.00
Representation - 12,000.00
Salaries - 74,000.00
Office Supplies - 9,000.00 - 576,200.00
Net Cash Flow for Operating Activities 97,950.00
Cash for Investing Activities

Inflow/Receipts -
Outflow/Payments -
Net Cash flow for Investing Activities -
Cash fllow for Financing Activities

Inflow / Receipts
Outflow / Payment
Withdrawal of Capital - 170,000.00 - 170,000.00
Net decrease of Cash - 72,050.00
Add: Cash Beg. Balance 214,000.00
Cash Balance, Dec. 31, 2017 141,950.00
Closing Entries
1 Income Summary 1,464,350.00

Transportation In 10,000.00
Sales Returns and Allowances 43,000.00
Salaries 147,000.00
Depreciation - Building 3,000.00
Depreciation - Equipment 4,500.00
Transportation Out 13,000.00
Interest Expense 8,000.00
Merchandise Inventory 426,000.00
To close nominal accounts with debit balances and delete merchadise inventory beginning.
2 Sales 782,000.00
Purchase Returns and Allowances 20,000.00
Invome Summary 810,000.00
To closse nominal accounts with credit balances
3 Orro Capital 550.00

Income Summary 550.00
To close net loss to capital
4 Orro Capital 170,000.00

Orro, withdrawal 170,000.00
To close Orro withdrawal.
ORRO COMPANAY
Post-Closing Trial Balance
Account Debit Credit

Cash 141,950.00
Merchandise Inventory, Beg 653,000.00
Land 370,000.00
Building 900,000.00
Accumulated Depreciation - Building 253,000.00
Accumulated Depreciation - Equipment 204,500.00
TOTAL 3,299,950.00 3,299,950.00
-

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Institutional Assessment

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The account balances of the C. Castro Company as at Dec.

1, 2017 are listed below:

110 Cash 214,000

Dec-01 Settled accounts payable of P115,000 less 2% discount.

2 Record the transactions for the month of December in a journal and

3 Prepare the worksheet using the following information: