Tesda NC III Bookkeeping Reviewer 1 PDF

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Accounting problems...

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Reviewer Materials for Perpetual and Periodical Accounting Cycle Additional Guides and Tips for TESDA NC III Bookkeeping.

-Accounting Tutorial

Therefore, I tell you, whatever you ask in prayer, believe that you have received it, and it will be yours. -Mark 11:24 ESV

Heavenly Father, please be with this student as he/she go where they do not know. As they seek to grow in knowledge, show and give him/her to find your light and graciousness. As they start to conquer the world, I pray that he/she start to conquer your kingdom too. Give them struggles for this will be their strengths and will use to fight all the hindrances along the way to you and to your kingdom. Take he/she deeper that his/her feet could ever wander and let his/her will be made stronger in the presence of our Lord Jesus, Our Savior. Always bring him/her to where he/she belong. To your hands, heart and kingdom.

Amen

SOLE PROPRIETORSHIP ACCOUNTING TRANSACTIONS

(MOCK EXAM)

Completing the Accounting Cycle from Journal Entries to Post closing Trial balance with a provided worksheet and answer keys.

On December 1, Mark Rivera began an AUTO REPAIR SHOP, Rivera’s Quality Automotive. The following transactions occurred during December: December 1

Rivera contributed PHP 200,000.00 cash to the business in exchange of shares of common stocks.

December 1

Purchased PHP 12,000.00 of computer equipment paid thru cash.

December 1

Paid a 3 months insurance policy starting December 1,2020, PHP 9,000.00

December 5

Purchased Office Supplies on account, PHP 5,800.00

December 8

Borrowed PHP 80,000.00 from the bank for business use. Rivera prepared and signed promissory notes payable to bank under the name of his business.

December 9

Paid advertising expenses for only PHP 1,580.00

December 10

Paid half of the supplies on account

December 13

Rivera’s Quality Automotive paid registration and licensing fees for the business, PHP 10,800.00

December 16

The company acquired tables, chairs, shelves, and other fixtures for a total of PHP 30,000.00 The entire amount was paid in cash.

December 17

The company acquired service equipment for PHP 16,000.00 The company paid a 50% down payment and the balance will be paid after 60 days.

December 17

The company received PHP 10,900.00 for services rendered.

December 17

Rendered services on account, PHP 78,000.00. As per agreement with the Rapid Automotive, the amount is to be collected after 10 days

December 19

Mr. Rivera invested an additional PHP 53,200.00 into the business

December 20

Rendered services to a big corporation on December 20. As per agreement, the PHP 33,400.00 amount due will be collected after 30 days

December 21

Paid in full the supplies on account

December 21

The owner withdrew cash due to an emergency need. Mr. Rivera withdrew PHP 60,000.00 from the company.

December 22

Paid rent for December, PHP 1,500.00

December 23

Paid salaries to its employees, PHP 3,500.00

December 27

Collected from the Rapid Automotive full amount.

December 28

Paid the bank 30% of loan payable

Rivera's Quality Automotive Chart of Accounts 101 102 103 104 105 106 107 108 109 201 202 203 204 205 301 302 303 401 601 602 603 604 605 606 607 608 609

Cash Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated Depreciation - Equipment Furniture and Fixtures Service Equipment Accumulated Depreciation - Service Equipment Accounts Payable Notes Payable Interest Payable Loan Payable Unearned Revenue Capital Withdrawal Income Summary Account Service Revenue Salaries Expense Rent Expense Utilities Expense Supplies Expense Insurance Expense Taxes and Licenses Advertising Expenses Depreciation Expense – Computer Equipment Depreciation Expense – Service Equipment

ADJUSTMENT DATA: A. B. C. D.

Office Supplies used during the month, PHP 3,800.00 Depreciation of the computer for the month, PHP 2,400.00 Depreciation of the service equipment for the month, PHP 3,200.00 One-month insurance was expired.

REQUIREMENTS: 1. 2. 3. 4. 5.

Prepare the journal entries and post to the T-Accounts Prepare unadjusted trial balance Prepare the adjusting journal entries and post to the T-Accounts Prepare adjusted trial balance Prepare the Financial Statements: (Income Statements, Statement of Owner’s Equity, Balance Sheet) 6. Prepare the closing entries and post to the T- Accounts 7. Prepare post-closing trial balance

PREPARE JOURNAL ENTRIES: JOURNAL ENTRIES Sr No.

Particulars

DR Amount (in PHP)

CR Amount (in PHP)

JOURNAL ENTRIES: JOURNAL ENTRIES Sr No.

Particulars

DR Amount (in PHP)

CR Amount (in PHP)

JOURNAL ENTRIES: JOURNAL ENTRIES Sr No.

Particulars

DR Amount (in PHP)

CR Amount (in PHP)

Cash

TOTAL

Accounts Receivable

TOTAL

Balance:

TOTAL Balance:

Office Supplies

TOTAL Balance:

TOTAL

TOTAL

Prepaid Insurance

TOTAL Balance:

TOTAL

Service Equipment

TOTAL

TOTAL

Balance:

Accumulated Depreciation - Service Equipment

TOTAL Balance:

Accounts Payable

TOTAL Balance:

TOTAL

TOTAL

Notes Payable

TOTAL Balance:

TOTAL

Loan Payable

TOTAL

TOTAL

Balance:

Unearned Revenue

TOTAL Balance:

Capital

TOTAL Balance:

TOTAL

Withdrawal

TOTAL

TOTAL Balance:

TOTAL

Income Summary Account

TOTAL

TOTAL

Balance:

Service Revenue

TOTAL Balance:

Salaries Expense

TOTAL Balance:

TOTAL

TOTAL

Rent Expense

TOTAL Balance:

TOTAL

Utilities Expense

TOTAL

TOTAL

Balance:

Supplies Expense

TOTAL Balance:

Insurance Expense

TOTAL Balance:

TOTAL

TOTAL

Taxes and Licences

TOTAL Balance:

TOTAL

Depreciation Expense - Computer Equipment

TOTAL Balance:

TOTAL

Depreciation Expense - Service Equipment

TOTAL Balance:

TOTAL

RIVERA’S QUALITY AUTOMOTIVE UNADJUSTED TRIAL BALANCE DECEMBER 31,2020

RIVERA’S QUALITY AUTOMOTIVE ADJUSTED TRIAL BALANCE DECEMBER 31,2020

RIVERA’S QUALITY AUTOMOTIVE INCOME STATEMENT DECEMBER 31,2020

RIVERA’S QUALITY AUTOMOTIVE STATEMENT OF ACCOUNT DECEMBER 31,2020

RIVERA’S QUALITY AUTOMOTIVE CASH FLOW DECEMBER 31,2020

RIVERA’S QUALITY AUTOMOTIVE BALANCE SHEET DECEMBER 31,2020

RIVERA’S QUALITY AUTOMOTIVE POST CLOSING TRIAL BALANCE DECEMBER 31,2020

SOLE PROPRIETORSHIP ACCOUNTING TRANSACTIONS

(ANSWER KEYS)

ADJUSTMENT DATA: E. Office Supplies used during the month, PHP 3,800.00 F. Depreciation of the computer for the month, PHP 2,400.00 G. Depreciation of the service equipment for the month, PHP 3,200.00 H. One-month insurance was expired. REQUIREMENTS: 8. 9. 10. 11. 12.

Prepare the journal entries and post to the T-Accounts Prepare unadjusted trial balance Prepare the adjusting journal entries and post to the T-Accounts Prepare adjusted trial balance Prepare the Financial Statements: (Income Statements, Statement of Owner’s Equity, Balance Sheet) 13. Prepare the closing entries and post to the T- Accounts 14. Prepare post-closing trial balance

PREPARE JOURNAL ENTRIES: JOURNAL ENTRIES Sr No. 101 301 105 101

101 103 201 101 204 607 101 201 101 606 101 107 101 108 101 201

Particulars CASH RIVERA, CAPITAL To record the investment of the owner COMPUTER EQUIPMENT CASH To record purchased computer equipment PREPAID INSURANCE CASH To record availed insurance OFFICE SUPPLIES ACCOUNTS PAYABLE To record bought office supplies on account CASH LOANS PAYABLE To record loans payable ADVERTISING EXPENSE CASH To record the payment for advertising ACCOUNTS PAYABLE CASH To record the payment for office supplies in half TAX AND LICENSES CASH To record the payment for the registration of licenses FURNITURE AND FIXTURES CASH To record bought furniture and fixtures SERVICE EQUIPMENT CASH ACCOUNTS PAYABLE To record bought service equipment on cash and on account

DR Amount (in PHP)

CR Amount (in PHP)

200,000.00 200,000.00 12,000.00 12,000.00 9,000.00 9,000.00 5,800.00 5,800.00 80,000.00 80,000.00 1,580.00 1,580.00 2,900.00 2,900.00 10,800.00 10,800.00 30,000.00 30,000.00 16,000.00 8,000.00 8,000.00

JOURNAL ENTRIES: JOURNAL ENTRIES Sr No. 101 401 102 401 101 301 102 401 201 101 302 101

101

101 101

101

Particulars CASH SERVICE REVENUE To record rendered services received on cash ACCOUNTS RECEIVABLE SERVICE REVENUE To record rendered services received on AR CASH RIVERA’S CAPITAL To record additional investment of owner ACCOUNTS RECEIVABLE SERVICE REVENUE To record rendered services received on AR ACCOUNTS PAYABLE CASH To record full payment on supplies RIVERA’S WITHDRAWAL CASH To record withdrawal of owner RENT EXPENSES CASH To record payment of rent SALARIES EXPENSES CASH To record payment of salaries of employees CASH ACCOUNTS RECEIVABLE To record the cash received from Rapid Customer LOAN PAYABLE CASH To record payment of loan 30%

JOURNAL ENTRIES:

DR Amount (in PHP)

CR Amount (in PHP)

10,900.00 10,900.00 78,000.00 78,000.00 53,200.00 53,200.00 33,400.00 33,400.00 2,900.00 2,900.00 60,000.00 60,000.00 1,500.00 1,500.00 3,500.00 3,500.00 78,000.00 78,000.00 24,000.00 24,000.00

JOURNAL ENTRIES Sr No.

Particulars

DR Amount (in PHP)

CR Amount (in PHP)

ADJUSTING ENTRIES SUPPLIES EXPENSE OFFICE SUPPLIES

3,800.00 3,800.00

To adjust office supplies DEPRECIATION EXPENSE – COMPUTER

2,400.00

ACCUMULATED DEPRECIATION - COMPUTER To record depreciation of computer equipment

2,400.00

DEPRECIATION EXPENSE – SERVICE EQUIPMENT ACCUMULATED DEPRECIATION – SERVICE EQUIPMENT To record depreciation of service equipment

3,200.00

INSURANCE EXPENSE PREPAID INSURANCE To recognize 1-month insurance

3,000.00

3,200.00

3,000.00

CLOSING ENTRIES SERVICE REVENUE

122,300.00

INCOME SUMMARY ACCOUNT To closed revenue INCOME SUMMARY AMOUNT SALARIES EXPENSE

122,300.00 29,780.00 3,500.00

RENT EXPENSE

1,500.00

TAX EXPENSE

10,800.00

ADVERTISING EXPENSE INSURANCE EXPENSE

1,580.00 3,000.00

DEPRECIATION EXPENSE - COMP. EQUIPMENT

2,400.00

DEPRECIATION EXPENSE - SERVICE EQUIPMENT To closed expenses

3,200.00

INCOME SUMMARY ACCOUNT

92,520.00

RIVERA, CAPITAL To closed income summary account RIVERA, CAPITAL WITHDRAWAL To closed withdrawal

92,520.00 60,000.00 60,000.00

Cash Capital 200,000

Computer 12,000

Loans 80,000

Insurance 9,000

Revenue 10,900

Supplies 2,900

Capital 53,200 Revenue 78,000

Tax 10,800 Furnitures 30,000 Equipment 8,000 Withdrawal 60,000 Salaries 3,500 Loan 24,000 Advertising 1,580 Supplies 2,900 Rent 1,500

TOTAL 422,100 Balance: 255,920

TOTAL 166,180

Supplies 5,800

TOTAL 5,800.00 Balance: 2,000.00

Accounts Receivable Revenue 78,000 Revenue 33,400 Revenue 78,000

TOTAL 111,400

TOTAL 78,000

Balance: 33,400

Office Supplies Adjustment 3,800

TOTAL 3,800

Prepaid Insurance Adjustment Insurance 9,000 3,000

TOTAL 9,000 Balance: 6,000

TOTAL 3,000

Service Equipment Service 16,000

TOTAL 16,000 Balance: 16,000.00

TOTAL

Accumulated Depreciation - Service Equipment Adjustment 3,200

TOTAL

TOTAL 3,200

Balance:

3,200.00

Computer Equipment

Accumulated Depreciation - Equipment Adjustment 2,400.00

Computer 12,000

TOTAL 12,000 Balance: 12,000

TOTAL

TOTAL

TOTAL 2,400

Balance

2,400.00

Accounts Payable AP 5,800 AP 2,900 AP 2,900

TOTAL 5,800 Balance:

LP 24,000

Notes Payable

AP 8,000

TOTAL 13,800 8,000.00

TOTAL

TOTAL

Balance:

Loan Payable LP 80,000

Unearned Revenue

TOTAL 24,000

TOTAL 80,000

TOTAL

Balance:

56,000.00

Balance:

TOTAL

Capital

Withdrawal

Capital 200,000 Capital 53,200 ISA 92,520.00

Withdrawal 60,000

ISA 60,000.00

TOTAL 60,000

Withdrawal 60,000

TOTAL 60,000.00

TOTAL 345,720.

TOTAL 60,000

Balance:

285,720.00

Balance: 0.00

Expenses 29,780

Income Summary Account Revenue 122,300.00

Capital 92,520

TOTAL 122,300 Balance: 0.00

TOTAL 122,300

Service Revenue Revenue ISA 122,300.00 10,900 Revenue 78,000 Revenue 33,400

TOTAL 122,300

TOTAL 122,300

Balance:

0.00

Salaries 3,500

TOTAL 3,500

Salaries Expense ISA 3,500.00

TOTAL 3,500

Balance: 0.00

Rent 1,500

Balance:

TOTAL 1,500.00

TOTAL 1,500.00 Balance: 0.00

Utilities Expense

TOTAL

Rent Expense ISA 1,500.00

TOTAL

Supplies Expense Adjustment 3,800.00

ISA 3,800.00

TOTAL 3,800

TOTAL 3,800.00

Balance: 0.00

Insurance Expense

Taxes and Licenses

Adjustment 3,000.00

ISA 3,000.00

TAX 10,800

ISA 10,800

TOTAL 3,000.00

TOTAL 3,000.00

TOTAL 10,800

TOTAL 10,800

Balance: 0.00

Balance: 0.00

Depreciation Expense - Computer Equipment Adjustment 2,400 ISA 2,400

Depreciation Expense - Service Equipment Adjustment 3,200 ISA 3,200

TOTAL 2,400.00

TOTAL 3,200

Balance: 0.00

TOTAL 2,400

Balance: 0.00

TOTAL 3,200

Furniture and Fixtures Furnitures 30,000

Advertising Expenses Advertising 1,580 1,580

TOTAL 30,000.00

TOTAL 1,580

TOTAL 1,580

Balance: 0.00

0.00

Balance: 30,000.00

TOTAL

RIVERA’S QUALITY AUTOMOTIVE UNADJUSTED TRIAL BALANCE DECEMBER 31, 2020

101

Cash

PHP 255,920.00

102

Accounts Receivable

PHP 33,400.00

103

Office Supplies

PHP 5,800.00

104

Prepaid Insurance

PHP 9,000.00

105

Computer Equipment

PHP 12,000.00

107

Furniture and Fixtures

PHP 30,000.00

108

Service Equipment

PHP 16,000.00

201

Accounts Payable

PHP 8,000.00

204

Loan Payable

PHP 56,000.00

301

Capital

PHP 253,200.00

302

Withdrawal

401

Service Revenue

601

Salaries Expense

PHP 3,500.00

602

Rent Expense

PHP 1,500.00

606

Taxes and Licenses

PHP 10,800.00

607

Advertising Expenses

PHP 1,580.00

PHP 60,000.00 PHP 122,300.00

TOTAL TRIAL BALANCE PHP 439,500.00

PHP 439,500.00

RIVERA’S QUALITY AUTOMOTIVE ADJUSTED TRIAL BALANCE DECEMBER 31,2020 101

Cash

PHP 255,920.00

102

Accounts Receivable

PHP 33,400.00

103

Office Supplies

PHP 2,000.00

104

Prepaid Insurance

PHP 6,000.00

105

Computer Equipment

PHP 12,000.00

106

Accumulated Depre - Computer Equipment

107

Furniture and Fixtures

PHP 30,000.00

108

Service Equipment

PHP 16,000.00

109

Accumulated Depre - Service Equipment

PHP 3,200

201

Accounts Payable

PHP 8,000.00

204

Loan Payable

PHP 56,000.00

301

Capital

PHP 253,200.00

302

Withdrawal

401

Service Revenue

601

Salaries Expense

PHP 3,500.00

602

Rent Expense

PHP 1,500.00

606

Taxes and Licenses

PHP 10,800.00

607

Advertising Expenses

PHP 1,580.00

604

Supplies Expenses

PHP 3,800.00

605

Insurance Expenses

PHP 3,000.00

607

Depreciation Exp – Computer

PHP 2,400.00

608

Depreciation Exp – Service PHP 3,200.00 TOTAL TRIAL BALANCE PHP 445,100.00

PHP 2,400.00

PHP 60,000.00 PHP 122,300.00

PHP 445,100.00

RIVERA’S QUALITY AUTOMOTIVE INCOME STATEMENT DECEMBER 31,2020 REVENUES Service Revenue

PHP 122,300.00

TOTAL REVENUES

PHP 122,300.00

EXPENSES Salaries Expense

(PHP 3,500.00)

Rent Expense

(PHP 1,500.00)

Taxes and Licenses

(PHP 10,800.00)

Advertising Expenses

(PHP 1,580.00)

Supplies Expenses

(PHP 3,800.00)

Insurance Expenses

(PHP 3,000.00)

Depreciation Exp – Computer

(PHP 2,400.00)

Depreciation Exp – Service

(PHP 3,200.00)

TOTAL EXPENSES

NET INCOME

(PHP 29,780.00)

PHP 92,520.00

RIVERA’S QUALITY AUTOMOTIVE STATEMENT OF ACCOUNT DECEMBER 31,2020

Mark Rivera, Capital December 1, ...