Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 22 views

    Exercises - Chapter 3

    Uploaded by

    Galang, Princess T.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Exercises - Chapter 3

    Uploaded by

    Galang, Princess T.
    22 views5 pages

    Original Title

    Exercises- Chapter 3

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    22 views5 pages

    Exercises - Chapter 3

    Uploaded by

    Galang, Princess T.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    EXERCISE 1

    (TRUE or FALSE)

    Name: Year and Section:

    Date: Score:

    Write TRUE if the statement is correct or FALSE if it is incorrect.

    _________________1. Decrease in assets may also result in decrease in liabilities

    _________________2. Liabilities is said to be as a residual claim against asset

    _________________3. Accounts Receivable represents claims for payment of debts collectible from other
    person

    _________________4. Loss from operations will be having no effect on owner’s equity

    _________________5. No liability is to be reported as current if payable beyond one year from the
    Statement of Financial Position date

    _________________6. Unsold Inventories are current assets

    _________________7. A personal drawing of the owner is a reduction of the owner’s equity in the
    business

    _________________8. The used up portion of a prepayment is an expense while the unused portion is an
    asset

    _________________9. The used portion of supplies bought during the period is called Prepaid Supplies

    _________________10. The terms receivable and prepaid connote an asset, while the terms payable and
    unearned connote a liability

    _________________11. If a receivable is collected, there will be an increase in total assets

    _________________12. Increases in asset mean increases in liabilities and/or increases in capital

    _________________13. Creditors have priority of claims against the business assets

    _________________14. Bad debts are considered uncollectible receivables

    _________________ 15. Allowance for Bad Debts and Accumulated Depreciation are considered contra
    asset accounts

    ACCTG 101- FINANCIAL ACCOUNTING AND REPORTING (FUNDAMENTALS) 1|P age


    EXERCISE 2

    Preparation of Financial Statements of a Service Business

    Name: Year and Section:

    Date: Score:

    The following are the ledger balances of “MUKBANG SERVICES” as of October 31, 2020

    ACCOUNT TITLE DEBIT CREDIT

    Foodie, Capital 3,014,130


    Notes Payable 751,521
    Building 1,219,668
    Accounts Payable 410,669
    Allowance for Bad Debts 63,910
    Prepaid Rent 774,811
    Cash 2,690,551
    Income from Services 1,941,900
    Promotional Expense 211,800
    Accounts Receivable 689,441
    Land 813, 800
    SSS Payable 89,445
    Bonds Payable 158,119
    Salaries Expense 154,889
    Office Supplies 68,390
    Equipment 180,552
    Interest Payable 256,894
    Accumulated Depreciation- 21,731
    Equipment
    Mortgage Payable 731,865
    Accumulated Depreciation- 451,821
    Building
    Miscellaneous Expense 361,885
    Bad Debts Expense 90,775
    Notes Receivable 190,338
    Salaries Payable 450,885
    Loans Payable ( Non- Current) 331,900
    Foodie, Personal 1,227,890

    ACCTG 101- FINANCIAL ACCOUNTING AND REPORTING (FUNDAMENTALS) 2|P age


    Required:

    Prepare the following Statements:

    1. Income Statement
    2. Statement of Owners’ Equity
    3. Statement of Financial Position

    ACCTG 101- FINANCIAL ACCOUNTING AND REPORTING (FUNDAMENTALS) 3|P age


    EXERCISE 3

    Preparation of Financial Statements of a Merchandising Business

    Name: Year and Section:

    Date: Score:

    Account No. Account Title Debit Credit

    10 Cash 1,441,800

    11 Accounts Receivable 450,221

    21 Furniture & Fixtures 54,988

    30 Accounts Payable 845,005

    50 Corona, Capital 1,545,056

    51 Corona, Withdrawal 210,773

    60 Sales 989,559

    61 Sales Discount 54,500

    62 Sales Returns and 88,900


    Allowances

    71 Purchases 645,009

    72 Freight In 14,800

    73 Purchase Discount 40,764

    74 Purchase Returns and 34,890


    Allowances

    75 Salaries Expense 190,400

    76 Utilities Expense 56,500

    77 Advertising Expense 90,300

    78 Freight Out 71,774

    ACCTG 101- FINANCIAL ACCOUNTING AND REPORTING (FUNDAMENTALS) 4|P age


    79 Office Supplies Expense 85,309

    TOTAL 3,455,274 3,455,274

    Required:

    Prepare the following Statements of Corona Merchandising Company as of January 2021

    4. Statement of Cost of Goods Sold


    5. Income Statement
    6. Statement of Owners’ Equity
    7. Statement of Financial Position

    “Life is not about finding yourself; life is about creating yourself- George Bernard
    Shaw.

    ACCTG 101- FINANCIAL ACCOUNTING AND REPORTING (FUNDAMENTALS) 5|P age

    You might also like