Accounting Answers

A. Below are the accounts of Bright Review Center. Prepare a Statement of Changes in Equity for August 31, 2021.

a. Additional Investment - 510,612

b. Maningning, Capital, 8/1/2020 - 1,369,246

c. Maningning, Withdrawals - 24,500

d. Net Income - 456,789

A. Solve the missing element: (Preparation of SCE of a single proprietorship)

1. Beginning Capital

a. 100,000

b. 70,000

c. 160,000

d. 500,000

e. ?

2. Additional Investment

a. 50,000

b. 150,000

c. 40,000

d. ?

e. 76,000

3. Withdrawals

a. 14,000

b. ?

c. 20,000

d. 150,000

e. 240,000

4. Net Income(Loss)

a. 170,000

b. (40,000)

c. ?

d. 400,000

e. 500,000

5. Ending Capital

a. ?

b. 155,000

c. 210,000

d. 850,000

e. 526,000

The value of inventory on 31 may 2021, using the first-In-first-Out (FIFO) Method is

The correct balance of R. Roman's account is

The Debtors List given below was extracted from the books of Sippy Stores on 31 March 2020, before some errors were discovered: The following errors must now be taken into account to correct the debtors list: 1. A credit sale of goods for R640 to H. Hammond was erroneously posted to his account as R460. 2. A credit invoice issued to G. Fritz for goods sold was erroneously recorded in his account as sales returns, R600. 3. Interest charged at 12% p.a. on R. Roman’s account that was overdue for three months was not posted to his account. 1.7 The correct balance of H. Hammond’s account is _________. (3) A R2 040 B R1 220 C R1 580 D 1480

2020, latter half 2020, latter half

Gross purchases ₱280,000 

Purchase returns and discounts 16% of the overall value 

Beginning inventory Value of last semester’s ending inventory

Ending inventory 30% lower than the beginning inventory 

Gross profit 60% based on cost of goods sold

Distribution expenses 10% of net sales 

Administrative expenses 15% of gross profit 

Income tax expense 30% of net income before taxes

Other comprehensive income 200% of income tax expense 

Net income ? (6)

Cost of goods sold ? (7)

Other comprehensive income ? (8)

Comprehensive income ? (9)

Income tax expenses ? (10)

2020, first half 2020, first half

Gross purchases P350,000

Purchase returns and discounts 8% of the overall purchases value

Beginning inventory P82,000

Ending inventory 30% higher than the beginning inventory

Net sales P910,000

Distribution expenses 25% of cost of goods sold

Administrative expenses 15% of gross profit

Income tax expense 20% of net income before taxes

Net income ? (1)

Cost of goods sold ? (2)

Gross profit ? (3)

Distribution expenses ? (4)

Income tax expenses ? (5)

find and fill the missing items.

2020, first half 2020, first half

Gross purchases P350,000

Purchase returns and discounts 8% of the overall purchases value

Beginning inventory P82,000

Ending inventory 30% higher than the beginning inventory

Net sales P910,000

Distribution expenses 25% of cost of goods sold

Administrative expenses 15% of gross profit

Income tax expense 20% of net income before taxes

Net income ? (1)

Cost of goods sold ? (2)

Gross profit ? (3)

Distribution expenses ? (4)

Income tax expenses ? (5)