Review Exercises Fabm

A food-retailing business started their business operation in January 1, 2023 with an initial capital
of 400,000.00. In the month of June 2023, R & R Corp had an additional investment of 250,000.00. You
are given the following account balances on the year ended 2023.
Cash 45,000.00 Sales 650,000.00
Accounts Payable 50,000.00 Sales Returns and Allowances 5,000.00
Accounts Receivable 125,000.00 Sales Discounts 12,000.00
Notes Receivable 50,000.00 Commissions Expense 25,000.00
Interest Receivable 2,500.00 Advertising Expense 5,000.00
Ending Inventories 157,500.00 Miscellaneous Expense 3,000.00
Office Supplies 7,500.00 Output Vat 3,250.00
Prepaid Rent 37,500.00 Salaries Expense-Staff & Offices 75,000.00
Input Vat 21,000.00 Advances to workers 15,000.00
Land 150,000.00 Taxes and Licenses Expense 12,000.00
R&R Drawings 62,150.00 Rent Expense 24,000.00
Purchases 250,000.00 Interest Expense 3,500.00
Purchases Returns and Allowances 2,500.00 Tax withheld 4,400.00
Purchase Discount 10,000.00 Interest Income 1,000.00
Transportation in 1,250.00 Depreciation Expense- building 10,250.00
Transportation out 2,500.00 Depreciation Expense-Furniture & FIX 7,500.00
Store Equipment 50,000.00 Insurance Expense 12,000.00
Accumulated Depreciation store equipment Notes payable 150,000.00
2,500.00
Furniture and Fixtures 50,000.00 Interest payable 9,500.00
Accumulated Depreciation-Furn & Fixtures SSS Premium Payable 35,000.00
2,500.00
Delivery Vehicle 75,000.00 Income Tax payable 10,000.00
Accumulated Depreciation-Delivery Vehicle Loans Payable 300,000.00
7,500.00
Building 500,000.00 R& R Capital 400,000.00
Accumulated Depreciation-Building Salaries Expense Sales Dept 125,000.00
25,000.00
Printing Cost (brochures) 17,500.00 Representation Expense Sales Dept 12,500.00
Beginning Inventory 73,500.00 Utilities Expense 37,500.00
Supplies Expense 8,500.00
Prepare the following financial statements,
1. SCI
2. SCOE
3. sfp
SALES 650,000.00
SALES RETURNS & ALLOWANCES - 5,000.00
SALES DISCOUNT - 12,000.00 - 17,000.00
NET SALES 633,000.00
COST OF GOODS SOLD

BEG INVTY 73,500.00
PURCHASES 250,000.00
TRANSPO IN 1,250.00
PURCH RET & ALL - 2,500.00
PURCH DISCOUNT - 10,000.00
TGAS 312,250.00
ENDING INVTY - 157,500.00 - 154,750.00
GROSS PROFIT 478,250.00
OPERATING EXP
GAE
SUPPLIES EXPENSE 8,500.00
MISCELLANEOUS EXPENSE 3,000.00
SALARIES EXPENSE OFC/STAFF 75,000.00
TAXES & LICENSES 12,000.00
RENT EXPENSE 24,000.00
INTEREST EXPENSE 3,500.00
DEPRECIATION EXPENSE F&F 10,250.00
DEPRECIATION EXPENSE DELIVERY V. 7,500.00
DEPRECIATION EXPENSE BLDG 12,000.00
UTILITIES EXPENSE 37,500.00 - 193,250.00
MTKG/SE
TRANSPO OUT 2,500.00
PRINTING COST 17,500.00
COMMISSION EXPENSE 25,000.00
ADVERTISING EXPENSE 5,000.00
REPRESENTATION ALLOWANCE 12,500.00
SALARIES EXPENSE SALES DEPT 125,000.00 - 187,500.00 - 380,750.00
INCOME FROM OPERATION 97,500.00
ADD: OTHER INCOME
INTEREST INCOME 1,000.00
NET INCOME 98,500.00
2. SCOE
BEGINNING CAPITAL 400,000.00

ADD: ADDITIONAL CAPITAL 250,000.00
NET INCOME 98,500.00
TOTAL 748,500.00
LESS: DRAWINGS - 62,150.00
ENDING CAPITAL 686,350.00
3. SFP
ASSETS
CASH 45,000.00
ACCTS RECEIVABLE 125,000.00
INTEREST RECEIVABLE 2,500.00
INVENTORY, END 157,500.00
OFFICE SUPPLIES 7,500.00
PREPAID RENT 37,500.00
INPUT VAT 21,000.00
ADVANCES TO WORKERS 15,000.00
TOTAL CURRENT ASSETS 411,000.00
NCA
NOTES RECEIVABLE 50,000.00
LAND 150,000.00
STORE EQPT 50,000.00
ACC.DEPN S/E - 2,500.00 47,500.00
F&F 50,000.00
ACC.DEPN F&F - 2,500.00 47,500.00
DELIVERY VEHICLE 75,000.00
ACC.DEPN DELIVERY VEHICLE - 7,500.00 67,500.00
BLDG 500,000.00
ACC.DEPN BLDG - 25,000.00 475,000.00
TOTAL NON CURRENT ASSETS 837,500.00
TOTAL ASSETS 1,248,500.00
LIABILITIES & OE
A/P 50,000.00
OUTPUT VAT 3,250.00
INTEREST PAYABLE 9,500.00
SSS PREM PAYABLE 35,000.00
INCOME TAX PAYABLE 10,000.00
INCOME TAX WITHHELD 4,400.00
TOTAL CL 112,150.00
LOANS PAYABLE 300,000.00
NOTES PAYABLE 150,000.00
TOTAL NCL 450,000.00
TOTAL LIABILITIES 562,150.00
R & R CAPITAL 686,350.00
TOTAL OWNERS EQUITY 686,350.00
TOTAL LIABILITIES & OE 1,248,500.00

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A food-retailing business started their business operation in January 1, 2023 with an initial capital

Prepare the following financial statements,

COST OF GOODS SOLD

BEGINNING CAPITAL 400,000.00

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