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    Merchandising Problem For Assessment

    Uploaded by

    Glend Lourd Ybanez
    1. Alice Garcia invested cash and equipment totaling $1 million in her business on January 1, 2016. The business engaged in multiple sales, purchases, returns and other transactions throughout 2016. 2. The document provides accounting entries for the business for each transaction from January to March 2016 relating to inventory, sales, purchases, returns, expenses and depreciation. 3. The document also provides entries relating to rent and insurance payments, payroll accrual, and unearned rental income for management control purposes from May 2016 to May 2017.

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    Merchandising Problem For Assessment

    Uploaded by

    Glend Lourd Ybanez
    101 views1 page
    1. Alice Garcia invested cash and equipment totaling $1 million in her business on January 1, 2016. The business engaged in multiple sales, purchases, returns and other transactions throughout 2016. 2. The document provides accounting entries for the business for each transaction from January to March 2016 relating to inventory, sales, purchases, returns, expenses and depreciation. 3. The document also provides entries relating to rent and insurance payments, payroll accrual, and unearned rental income for management control purposes from May 2016 to May 2017.

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    Merchandising-Problem-for-Assessment

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    1. Alice Garcia invested cash and equipment totaling $1 million in her business on January 1, 2016. The business engaged in multiple sales, purchases, returns and other transactions throughout 2016. 2. The document provides accounting entries for the business for each transaction from January to March 2016 relating to inventory, sales, purchases, returns, expenses and depreciation. 3. The document also provides entries relating to rent and insurance payments, payroll accrual, and unearned rental income for management control purposes from May 2016 to May 2017.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    101 views1 page

    Merchandising Problem For Assessment

    Uploaded by

    Glend Lourd Ybanez
    1. Alice Garcia invested cash and equipment totaling $1 million in her business on January 1, 2016. The business engaged in multiple sales, purchases, returns and other transactions throughout 2016. 2. The document provides accounting entries for the business for each transaction from January to March 2016 relating to inventory, sales, purchases, returns, expenses and depreciation. 3. The document also provides entries relating to rent and insurance payments, payroll accrual, and unearned rental income for management control purposes from May 2016 to May 2017.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 1

    PROBLEM (BOTH) INVENTORY SYSTEM

    1)      Alice Garcia owned an enterprise and she invests the following to the business at the beginning
    of the year January 1, 2016.
    a)      Cash amount of P500,000
    b)      Transportation equipment of P300,000
    c)      Office Furniture & Fixtures amounting to P100,000
    d)      Stocks for sale with the cost of P500,000
    2)      Sold merchandise on account costing P50,000 for P75,000, terms were 2/10, n/30. (Jan 10, 2016)
    3)      Customer returned merchandise costing P3000 that had been sold on account for P6500
    (part of Jan 10, 2016) ; (Jan 12, 2016)
    4)      Received payment from customer for merchandise sold above (Jan20, 2016)
    5)      Purchased on account merchandise for resale for P20,000; terms were 3/10, n/30
    (purchase recorded at invoice price) (January 30, 2016)
    6)      Paid P700 freight on the P20,000 purchases; terms were FOB shipping point, freight collect.
    (Feb 15, 2016)
    7)      Returned merchandise costing P800 (part of the Feb 15 purchases) (Feb 18, 2016)
    8)      Paid for the merchandise purchased, refer to No.5 ( Feb 20, 2016)
    9)      Sold 1000 pcs. of merchandise for cash of PhP135,000 with a unit cost of PhP90 (March 3, 2016)
    10)  Received 50 pcs. of merchandise returned from costumer (refer to Mar 3 sales)
    amounting to P6,750.00 (March 5, 2016)
    11)  Purchased 500 pcs. of merchandise in cash amounting to P7,500 (March 10, 2016)
    12)  Returned 30 pcs of merchandise (refer to March 10 sales) ; (March 12, 2016)
    13)  Paid electric bill for the month of Jan – Mar 2016, P7,000 (March 15, 2016)
    14) Paid water bill for the months of Jan – March 2016, PhP 1,500 (Mar 20, 2016)
    15) Paid salaries for the months of Jan – March 2016, P30,000 (March 25, 2016)
    16) Purchase supplies with a total of P5,000.00 (March 26, 2016)
    17) Paid transportation exp for the 3 months period totaling P2,000 (March 31, 2016)
    18) The owner withdrew P50,000 for his personal use. (March 31, 2016)
    19) Allocate depreciation for the three months period with a useful life, using a straight line method
    for the following: (March 31, 2106)
    Transpo Equipt - 10 years (300,000/120 mos.x 3 mos) 7,500
    Office Furniture - 5 years (100,000/60 mos. X 3 mos) 5,000
    20)  To adjust the ending perpetual inventory balance for the shrinkage during the year.

    Note: Actual Year-end physical inventory is P310,500 (Perpetual)


    Actual Year-end physical inventory is P150,500 (Periodic)

    MNGT CONTROL SYSTEM:


    1)  The owner rented a space for P5,000/per month. He made an advance payment for the year P50,000
    P50,000 starting May 2016 – Feb 2017.
    Prepare the adjusting entry in December 2016 if he recorded the payment by:
    Prepaid Rent - PhP50,000
    Cash ----------------- PhP50,000
    2)    The owner paid an insurance for P20,000 for July 2016-June 2017 on June 30, 2016.
    Prepare the adjusting entry in December 2016 if he recorded the payment by:
    Insurance Expense - PhP20,000
    Cash -----------------------PhP20,000
    3)    The lessor received an advance payment of rental for P30,000 for Aug 2016 – May 2017.
    Adjust in December 2016, if the lessor recorded the said transaction:
    Cash ------- PhP30,000
    Unearned Rent Income --------PhP30,000
    4)    To record the payroll for Dec 31, 2016 of P35,000 paid in January 3, 2017.
    5)    To record rental income due for December 2016 amount to P20,000 but not yet collected

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