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Jenny has a bank balance of $550 at the start of the week. During the week the following transactions occur.
Day 1
She sells goods on credit for $876
Day 2
She receives a cheque for $400 from a credit customer
Day 3
She purchases office equipment with a list price of $1,000 but receives a 10% discount for paying immediately by cheque
How much does Jenny have in the bank at the end of the week?
On April 1,2020 John’s construction company purchased equipment costing 68,000 the equipment is estimated to have a nine year useful life with no salvage value calculate the amount of the adjustment at the December 31, 2020 year end
Marko Corporation has several assets for classification as biological assets. After reviewing the data gathered shown in the image, how much should Marko report as net gain from change in fair value of biological assets for the quarter? Cocoa pods kept Cows and Cocoa Trees in storage for Sheep the whole period Cost P300,000 P400,000 Carrying Value, April 1, 2020 800,000 900,000 P 200,000 Increase or (decrease) in value from price change (40,000) (50,000) 20,000 Increase or (decrease) in value from physical change 100,000 180,000 50,000
when writing out a journal entry, which is Usually the first line of information given?
- the name of the account to be credited
- the name of the account to be debited
- the narrative of the entry
- the name of the person making the journal entry
Problem Solving
BBC Company is closing its books and gathered the following items for its bank reconciliation:
a) Bank statement contains an ending balance of P290,500 on February 28, 2021, whereas the
company’s ledger shows an ending balance of P260,900
b) Bank statement contains a P100 service charge for maintaining the checking account
c) Bank statement contains interest income of P20
d) BBC issued checks of P50,000 that have not yet been cleared by the bank
e) BBC deposited P20,000 but this did not appear on the bank statement
f) BBC issued checks of P30,000 that have been cleared by the bank
g) BBC deposited P40,000 and this deposit appeared on the bank statement
h) A check for the amount of P470 issued to the office supplier was misreported in the cash payments
journal as P370.
i) A note receivable of P9,800 was collected by the bank.
j) A check of P520 deposited by the company has been charged back as NSF.
k) A monthly auto debit loan payment for P10,000 A refund of a previous bank charge P500
l) The bank has erroneously charged ABC company’s check worth P4,500 but was able to correct it
within the day as they balance and close their transactions.
Required:
1. Prepare a bank reconciliation using adjusted balance method.
2. Compute the total credit memo to be reflected on the reconciliation.
3. Compute the total debit memo to be reflected on the reconciliation.
4. Compute the total bank error.
5. Compute the total book error.
6. Compute the total outstanding checks.
7. Compute the total deposits in transit.
8. How much is the adjusted balance per book and per bank.
9. Prepare adjusting entries on the books of BBC company
1. Compute for the interest of a loan of P250,000 dated January 1, 2016 and payable on November 13, 2016 assuming the rate is 12% using the following: (20 points)
a. Actual Time-Exact Interest Method
b. Approximate Time-Exact Interest Method
c. Actual Time-Ordinary Interest Method
d. Approximate Time-Ordinary Interest Method
ABC Ltd acquires 100 per cent of RedCarpet Ltd on 1 July 2021. ABC Ltd pays the shareholders of RedCrpet Ltd the following consideration: There are also legal fees of $95,000 involves in acquiring RedCarpet Ltd.
On July 1 2021 RedCarpet Ltd’s statement of financial position shows total assets of $300,000 and liabilities of $150,000. The fair value of the assets is $400,000.
Has any goodwill been acquired and, if so, how much?
Triple Strike, owned and managed by Mr. Brian, showed owner’s equity as of January 1, 2019 as P120,000. It is estimated that at December 31, 2019, total assets will be P400,000 and total liabilities P200,000. How much should be the 2019 projected profit or loss given the following additional information? Each case is to be considered as independent from the others:
a. Brian did not make any additional investment or withdrawal.
b. Brian made a cash withdrawal of P50,000 but no additional investment.
c. Brian made an additional investment of P125,000 but no cash withdrawal.
d. Brian made an additional investment of P125,000 and a cash withdrawal of P50,000.
Triple Strike, owned and managed by Mr. Brian, showed owner’s equity as of January 1, 2019 as P120,000. It is estimated that at December 31, 2019, total assets will be P400,000 and total liabilities P200,000. How much should be the 2019 projected profit or loss given the following additional information? Each case is to be considered as independent from the others:
a. Brian did not make any additional investment or withdrawal.
b. Brian made a cash withdrawal of P50,000 but no additional investment.
c. Brian made an additional investment of P125,000 but no cash withdrawal.
d. Brian made an additional investment of P125,000 and a cash withdrawal of P50,000.
Demand function for a normal good X is given as Qdx =4–0.4Px –0.2Py +0.3Pz +0.3M
where Qdx is quantity demanded for good X, Px is price of good X, Py and Pz are
prices of related goods, and M is income. Y is good Y and Z is good Z.
