453154322 Encantadia Practice set PDF

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Encantadia Company Statement of Financial Position As of December 31, 2018 ASSETS Current Assets Note Cash and Cash Equivalents 1 ₱ 1,930,000.00 Financial Asset @ Fair Value 2 ₱ 500,000.00 Trade and Other Receivables 3 ₱ 4,250,000.00 Merchandise Inventory ₱ 600,000.00 Prepayments 4 ₱ 50,000.00 Total Current Assets Non-Current Assets Property, Plant and Equipment, n 5 ₱ 5,500,000.00 Long-term Investments 6 ₱ 2,600,000.00 Intangible Asset 7 ₱ 285,000.00 Investment Property 8 ₱ 1,000,000.00 Other Non-Current Asset 9 ₱ 80,000.00 Total Non-Current Assets TOTAL ASSETS LIABILITIES AND SHAREHOLDER'S EQUITY Liabilities Current Liabilities Trade and Other Payables 10 ₱ 1,502,500.00 Provisions 11 ₱ 100,000.00 Loans Payable- Short Term ₱ 300,000.00 Bonds Payable- Current Portion ₱ 1,000,000.00 Total Current Liabilities Non-Current Liabilities Bonds Payable- Non-Current Portion ₱ 9,000,000.00 Bonds Payable- 5 year term ₱ 1,000,000.00 Deferred Tax Liability ₱ 700,000.00 Total Non-Current Liabilities Total Liabilities Shareholder's Equity Share Capital ₱ 1,800,000.00 Reserves 12 ₱ 700,000.00 Retained Earnings ₱ 692,500.00 Total Shareholder's Equity TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY

₱ 7,330,000.00

₱ 9,465,000.00 ₱16,795,000.00

₱ 2,902,500.00

₱10,700,000.00 ₱13,602,500.00

₱ 3,192,500.00 ₱16,795,000.00

Net Sales Cost of Goods Sold Gross Profit Other Income Total Income Operating Expenses Distribution Administrative NET INCOME

Encantadia Company Income Statement For the Year Ended December 31, 2018 Note 13 ₱ 3,588,000.00 14 -₱ 2,420,000.00 ₱ 1,168,000.00 15 ₱ 200,000.00 ₱ 1,368,000.00 16 17

₱ ₱

469,000.00 956,500.00 -₱ -₱

1,425,500.00 57,500.00

Notes to Financial Statements Note 1 - Cash and Cash Equivalents Cash in Bank - Savings Cash in Bank- Current Petty Cash Fund Treasury Bills Total

₱ 300,000.00 ₱ 1,000,000.00 ₱ 30,000.00 ₱ 600,000.00 ₱ 1,930,000.00

Note 2- Financial Asset @ Fair Value Trading Securities Total

₱ ₱

500,000.00 500,000.00

₱

300,000.00

Note 3- Trade and Other Receivables Claim Receivable Accounts Receivable ### Allowance for Doubtful Accounts -₱ 200,000.00 Subscription Receivable Advances of officers & employees Advances to Suppliers Interest Receivables Note Receivables Total

₱ 1,600,000.00 ₱ 250,000.00 ₱ 100,000.00 ₱ 450,000.00 ₱ 250,000.00 ₱ 1,300,000.00 ₱4,250,000.00

Note 4- Prepayments Unused Supplies Prepaid Advertising Total

₱ ₱ ₱

20,000.00 30,000.00 50,000.00

Note 5- Property, Plant and Equipment Land Building ### Acc. Depreciation- Bldg -₱ 300,000.00 Furniture & Fixtures ₱ 900,000.00 Acc. Depreciation- F&F -₱ 200,000.00 Delivery Truck ### Acc. Depreciation- Delivery Truck -₱ 300,000.00 Total

₱ 1,500,000.00 ₱5,500,000.00

Note 6- Long-Term Investments Sinking Fund Time Deposit Advances to Affiliates Total

₱ 1,200,000.00 ₱ 400,000.00 ₱ 1,000,000.00 ₱2,600,000.00

₱ 1,400,000.00 ₱ 1,900,000.00 ₱

700,000.00

Note 7- Intangible Asset Patent Amortization Total

₱ -₱ ₱

300,000.00 15,000.00 285,000.00

Note 8- Investment Property Land held for speculation Total

₱ 1,000,000.00 ₱1,000,000.00

Note 9- Other Non-Current Asset Long-Term Refundable Deposit Total

₱ ₱

Note 10- Trade and Other Payables Accounts Payable Accrued Expenses Warranty Liability SSS/ PHIC/ HDMF Payable VAT Payable Estimated Premium Liability Salaries Payable Advances from customers Total

₱ 350,000.00 ₱ 62,500.00 ₱ 40,000.00 ₱ 60,000.00 ₱ 100,000.00 ₱ 90,000.00 ₱ 600,000.00 ₱ 200,000.00 ₱1,502,500.00

Note 11- Provisions Estimated Liability for Lawsuit Total

₱ ₱

100,000.00 100,000.00

Note 12-Reserves Share Premium Retained Earnings- Appropriated Total

₱ ₱ ₱

500,000.00 200,000.00 700,000.00

Note 13- Net Sales Gross Sales Sales Discounts Sales Returns Net Sales

80,000.00 80,000.00

₱ 3,688,000.00 -₱ 40,000.00 -₱ 60,000.00 ₱3,588,000.00

Note 14- Cost of Goods Sold Beg. Inventory ₱ 900,000.00 Purchases ### Purchase Returns -₱ 70,000.00 Purchase Discounts -₱ 30,000.00 Net Purchases ### Freight-in ₱ 20,000.00 ₱ 2,120,000.00 Goods Available for Sale ₱3,020,000.00 Ending Inventory -₱ 600,000.00 Total Cost of Goods Sold ₱2,420,000.00 Note 15- Other Income Rent Income Interest Income Total

₱ ₱ ₱

50,000.00 150,000.00 200,000.00

Note 16- Distribution Expenses Delivery Expenses Sales Salaries Store Supplies Expense Advertising Expense Total

₱ ₱ ₱ ₱ ₱

6,000.00 430,000.00 3,000.00 30,000.00 469,000.00

Note 17- Administrative Expenses Office Salaries Expense Depreciation Expense Light & Water Expense Taxes & Licenses Office Supplies Expense Rent Expense Amortization Total

₱ ₱ ₱ ₱ ₱ ₱ ₱ ₱

120,000.00 800,000.00 4,000.00 3,000.00 2,000.00 12,500.00 15,000.00 956,500.00

Encantadia Company Statement of Changes in Equity For the Year Ended December 31, 2018 Share Capital Reserves ₱ 1,800,000.00 ₱ 500,000.00 resulting from overstatement of beginning inventory resulting from overstatement of purchases resulting from overstatement of rent income from unrecorded accrued income from unrecorded salaries

Balances, beg. Correction of error Correction of error Correction of error Correction of error Correction of error Net Loss Retained Earning Appropriated Balances, end

₱ ₱ ₱ 1,800,000.00 ₱

200,000.00 700,000.00

Retained Earnings ₱ 1,000,000.00 -₱ 100,000.00 ₱ 300,000.00 -₱ 50,000.00 ₱ 100,000.00 -₱ 300,000.00 -₱ 57,500.00 -₱ 200,000.00 ₱ 692,500.00

Encantadia Company Statement of Cash Flows For the Year Ended December 31, 2018 perating Activitie Net loss Depreciation Amortization Incease in FA @ Fair Value Increase Trade and Other Receivables Decrease Merchandise Inventory Increase Prepaid Expenses Increase Trade and Other Payables Increase Current Provisions NET CASH USED IN OPERATING ACTIVITIES Investing Activities Increase in PPE Increase Long Term Investments Increase Intangible Assets Increase Other Noncurrent Assets NET CASH USED IN INVESTING ACTIVITIES Financing Activities Increase Short Term Borrowing Increase Bonds Payable Decrease Bonds Payable Increase Deffered Tax Liability Increase Share Capital Increase Reserves NET CASH PROVIDED BY FINANCING ACTIVITIES ENDING CASH BALANCE

-

57,500.00 800,000.00 15,000.00 500,000.00 - 4,150,000.00 400,000.00 100,000.00 1,372,500.00 230,000.00

- 5,500,000.00 - 2,600,000.00 300,000.00 - 1,180,000.00

300,000.00 11,000,000.00 - 1,000,000.00 700,000.00 1,800,000.00 700,000.00

- 1,990,000.00

- 9,580,000.00

13,500,000.00 ###

Account Titles Cash in Bank- Savings Cash in Bank- Current Petty Cash Fund Trading Securities Treasury Bills Accounts Receivable Allowance for Doubtful Accounts Advances of Officers and Employees Advances to Suppliers Advances to Affiliates Notes Receivables Claims Recivable Interest Receivable Subscription Receivable Merchandise Inventory Unused Supplies Prepaid Advertising 3 years Time Deposit- BPI Long Term Refundable Deposit Sinking Fund- for 5 year term bonds Land Land held for Speculation Accumulated Deprn. Building Building Furniture and Fixtures Accumulated Deprn. F&F Delivery truck Accumulated Deprn. Delivery Truck Patent Accounts Payable Advances from Customers Loans Payable Accrued Expenses Estimated Liability for Lawsuit Warranty Liability Estimated Premiums Liability SSS/ PHIC Payable VAT PAYABLE Deffered Tax Liability Bonds Payable due annually 1,000,000 Bond Payable 5 year term Bonds Ordinary Shares Par 100 Share Premium

Encantadia Company Worksheet December 31, 2018 Trial Balance Adjustments Dr. Cr. Dr. 300,000 1,000,000 30,000 500,000 600,000 e. 2,000,000 200,000 100,000 i. 400,000 50,000 1,000,000 1,100,000 e. 200,000 300,000 l. 250,000 250,000 1,000,000 g. 20,000 60,000 c. 400,000 80,000 1,200,000 1,400,000 1,000,000 300,000 2,200,000 900,000 200,000 1,800,000 300,000 300,000 d. 350,000 a 300,000 50,000 c., j. 100,000 40,000 90,000 60,000 100,000 700,000 10,000,000 1,000,000 1,800,000 500,000

Cr.

200,000

100,000 30,000

15,000 200,000 612,500

Retained Earnings- appropriated Retained Earnings- Unappropriated Sales Sales Return Sales Discount Purchases Purchase Returns Purchase Discounts Freight In Rent Income Interest Income Office Supplies Expense Store Supplies Expense Delivery Expense Sales Salaries Office Salaries Light and Water Expense Advertising Expense Rent Expense Taxes and Licences Amortization Expense Depreciation Expense TOTAL Net Income (Loss)

200,000 800,000 g/j/k 3,888,000 a. 60,000 40,000 2,300,000

450,000 i/l 200,000

400,000

i.

300,000 i

400,000

l.

k. 100,000 l.

50,000 250,000

j.

600,000 j.

300,000

c c.

30,000 12,500

d.

15,000

70,000 30,000 20,000

2,000 3,000 6,000 130,000 120,000 4,000

3,000 800,000 21,078,000

21,078,000

2,557,500

2,557,500

ADJUSTING ENTRIES Adjusted Trial Balnce Dr. Cr. 300,000 1,000,000 30,000 500,000 600,000 1,800,000 200,000 100,000 450,000 1,000,000 1,300,000 300,000 250,000 250,000 900,000 20,000 30,000 400,000 80,000 1,200,000 1,400,000 1,000,000 300,000 2,200,000 900,000 200,000 1,800,000 300,000 285,000 350,000 200,000 300,000 662,500 100,000 40,000 90,000 60,000 100,000 700,000 10,000,000 1,000,000 1,800,000 500,000

a. Sales

200,000 Advances from customers

200,000

b. NO ENTRY c. Advertising expense 30,000 Prepaid advertising Rent expense

12,500 Accrued expense

d. Amortization expense Patent

30,000

12,500

15,000 15,000

e.Notes receivable 200,000 Accounts receivable

200,000

f. NO ENTRY g. Retained earnings -Unappropriated 100,000 Merchandise Inventory - beg.

100,000

h. NO ENTRY i. Purchases

300,000 Retained earnings- Unappropriated

Advances to suppliers Purchases j. Sales salaries

400,000 400,000

600,000 Accrued expense

Retained earnings-Unappro. Sales salaries k. Retained earnings -Unappro. Rent Income

600,000

300,000 300,000 50,000 50,000

l. Interest income 100,000 Retained earnings

100,000

Interest receivable 250,000 Interest income

250,000

300,000

200,000 750,000 3,688,000 60,000 40,000 2,200,000 70,000 30,000 20,000 50,000 150,000 2,000 3,000 6,000 430,000 120,000 4,000 30,000 12,500 3,000 15,000 800,000 21,840,500

21,840,500

Account Titles

Encantadia Company Worksheet December 31, 2018 Trial Balance Adjustments Dr. Cr. Dr.

Cr.

Adjusted Trial Balnce Dr. Cr....