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Ifesinachi started business on 1/1/99 with the following:
Building N 100,000
Stock of goods N 40,000
Motor van N 50,000
Cash N 10,000
During the month, he undertook the following transaction
5/1/99 Sold goods for cash N 5, 000
10/1/99 Sold goods on credit N 20, 000
12/1/99 Bought goods on credit N 10, 000
15/1/99 Cash sales banked N 15, 000
18/1/99 Paid cash for office stationery N 2, 000
20/1/99 Received cash from debtors for goods N 5, 000
22/1/99 Paid cash for office expenses N 1, 000
23/1/99 Paid salaries by cheque N 4, 000
24/1/99 Sold goods for cash N 7, 000
25/1/99 Sold goods on credit N 5, 000
26/1/99 Bought goods on credit N 3, 000
27/1/99 Bought goods for cash N 2, 500
28/1/99 Withdrew money from bank for owner’s use N 1, 500
29/1/99 Office cash banked N 5, 000
31/1/99 Paid electricity by cheque N1, 500
Required to record the above transactions in the appropriate books of original entry and post them to the ledger.
ABC Company
Balance Sheet
December 31, 20x3
ASSETS
Current assets:
Cash Br. 10, 000
Account receivable 52,500
Merchandise inventory 48, 000
Unexpired insurance 1, 800 Br.112, 300
Plant assets:
Equipment, fixture and other Br.37, 000
Accumulated depreciation 12, 800 24, 200
Total assets Br.136,500
LIABILITIES AND OWNERS’ EQUITY
Liabilities:
Accounts payable Br.16, 800
Accrued wages and commissions payable 4, 250 Br.21, 050
Capital:
Owners’ equity 115,450
Total liabilities and owners’ equity Br.136, 500
InInstructions:
2) Using the budget data given above and the schedules you have prepared, construct the fofollowing pro forma financial statements
a. Income statement for the first quarter of the year.
b. Cash budget including receipts, payments, and effect of financing
ABC Company
Balance Sheet
December 31, 20x3
ASSETS
Current assets:
Cash Br. 10, 000
Account receivable 52,500
Merchandise inventory 48, 000
Unexpired insurance 1, 800 Br.112, 300
Plant assets:
Equipment, fixture and other Br.37, 000
Accumulated depreciation 12, 800 24, 200
Total assets Br.136,500
LIABILITIES AND OWNERS’ EQUITY
Liabilities:
Accounts payable Br.16, 800
Accrued wages and commissions payable 4, 250 Br.21, 050
Capital:
Owners’ equity 115,450
Total liabilities and owners’ equity Br.136, 500
InInstructions:
1) Using the data given above, prepare the following detailed schedules for the first quarter of the year
a) Sales budget
b) Cash collection budget
c) Purchase budget
d) Disbursement for purchases
e) Operating expenses budget
f) Disbursement for operating expenses
Beatrice Luigi Gomez established a fashion designing service business in Cebu city on December 2021 which she named top 5 best designs set up the following ledger account using T-account and post all the journal entries?
1.Started business with cash rs . 12,00,000
2. Bought Furniture for cash rs . 100000
3. Bought Building for cash Rs. 102000
4 . Bought Good for rs. 140000 on credit from Ahmad .
5. Sold Goods for cash rs.150000
6. Paid salary for RS. 15000.
7. Paid commission for RS . 10000.
8. Received rent for RS . 4000
Recognize above business transactions .
3. Prepare to adjust entries for the following additional information:
a. Uncollectible accounts are estimated to be 3% of Total Revenue.
b. Supplies used for the year amounted to P5,000.00.
c. Rent for 1 month has expired.
d. Insurance for 1 month has expired.
e. Computer equipment has a P1,000.00 salvage value and has an estimated useful life of 3 years.
f. Service vehicle has a 5,000.00 salvage value and has an estimated useful life of 8 years.
g. Office equipment has an estimated useful life of 5 years with no salvage value.
4. Prepare closing entries.
5. Prepare a worksheet. (Unadjusted Trial Balance, Adjusting Entries, Adjusted Trial Balance, Closing Entries, Post-
closing Trial Balance)
6. Prepare the income statement, statement of changes in capital, and balance sheet.
How is the equity value of a business calculated considering only the accounts in the owner's equity section of the trial balance?
A company has issued 1200 equity shares of Rs.10each to the public and called the amount of thereon as under
With application Rs.2.50 per share
(Including premium of Rs 2)
On allotment of Rs 4.50per share
On final call Rs 5Per share
Mr Raj pawar has purchased 130 shares He failed to pay on final call and therefore his shares were forfeited these forfeited share were re issued to Mr.Ravindra Raut at an agreed price of Rs.10.50per share
Prepare and pass the necessary Journal entries
12 Performed fashion designing services for Bb. Pilipinas Organization worth P80,250, on account.
16 Received bill from National Bookstore for office supplies, P8,500. (Use Expense Method)
17 Catriona Gray paid cash for services rendered, P14,790.
22 Paid Shell Station for gasoline for service vehicle, P1,500.
24 Performed customized wedding gown designing services to Jennylyn Mercado and was billed for services
rendered, P17,500.
27 Paid Robinsons Cybergate P4,500 to apply on account.
29 Received P80,250 from Bb. Pilipinas Organization in full payment of account.
30 Billed Rabiya Mateo for services rendered, P21,600.
31 Receive and paid telephone bill, P2,300.
31 Paid salaries to employees, P31,500.
31 Beatrice withdrew cash for personal use, P18,000.
If the government levies an additional tax on lucury items the price of these items will rise how ever this will cause demand to decrease and as aresult the price will fall back down perhaps even to their original levels. Do you agree with this statement ? Explain
#339914 on Dec 2023