ws ‘ge10 | lem #2 — grade and Cash DISCOUnt Calculations ne 1, 2019, Elen: oe M4 © Buray J. Forest Products sold merchandise with 2 P120,000 list Trade Discount Credit Terms Date Paid > ame 2/10,n/30 June 8 1/10,n/30 June 15 c - 2/10, n/30 June 11. a. 20% ¥/15,n/30 June 14 e 40% 1/30 June 28 Required: For each of the sales terms, determine the following: 1. the amount recorded as a sale, 2. the amount of cash received. d e a 4b ° ovo 74,000 fe or et) EEE ) a. gageo TROD IIT, Problem #2 i 3d for resale books on account (On May 15, 2019, the Guzon Book Distributors acquires ary rice of P108,000. sutuan Publishing the supplier, alowed 2 15% trade discount as well as credit terms of 2/10, 1/30. Guzon paid the invoice in full on May 20, 2019. Required: / Prepare the journal onwies for Guzon Book ay mays purehAst ayo : pccouns FayaHe fale 41, P00 bap naounts Pay 4, Jed. can dupa Lealinac ‘SCORE: NAME: ‘SCORE SECTION: | PROFES Problem #3 Cash Discount and Remittance Calculations For each of the following Mary Paz Abad Retailers purchases, assume that credit terms are 2/10, n/30 and that any credit memorandum was issued and known before Mary Paz Abad Retailers made the payments. Prepaid Freight Credit Purchases Shipping Terms (by seller) Memo a 12,000 FOB shipping point 1,000 3,000 b. 24,000 FOB destination 2,400 2,000 « 28,000 08 shipping point 4,000 4. 40,000 FOB shipping point 3,000 Required: 1. Determine the cash discount available. 2. Determine the cash remitted if the payment is made within the discount period. CASH OSCOUNT a 6 purchases Cwet of Cm) 9,000 43,100 X af, cash discount iw wo CASH REMITTANEMerchandising Operations | 7-49 CNAME: - 1 st0n SECTION: Sone _ Problem #4 Point of Recognition Edgel Abear Car Repairs Shop purchases a large amount of auto parts for its business. The following table summarizes selected transaction data: Order Date Shipped Date Received Amount A June 26 ly S—_P30,000 8 July 10 35 75,000 c 16 22 40,000 D 23 30 60,000 E 7 Aug. 175,000 F Aug. 3 7 50,000 Required: Determine the July total purchases under each of the following assumptions: 1. The entity recognizes purchases when orders are shipped. 2. The entity recognizes purchases when orders are received.llada | asi nancial Accounting and Reporting by ro) MINE e “SCORE: ———~ pnoFesson Problem #5 Renz Aguhob Fireworks engaged in the following purchase transactions during the month. The entity observes the policy that all returns are made one day after the goods dre received, and that all purchases are paid within the discount period. ListPrice FOBTerms freight Purchase CreitTerms Trade Charges Returns and Discount Allowances 224,000 shipping. P4000 24,009 2/10, n/30 30% 126,000 Destination 9,000 = ¥i0, n/30 20% 90,000 shipingrt. 2,000 7,000 2/10, 9/30, 5 4,000 shipping. 1.000 9,000n/30 25% 357,000 Destination 14000 24,009 3/10, n/30 20% Required 5B Using the table above, calculate the amount needed to settle each purchase. aye Ref. 2 Al purchave Diswount———— =. — ‘sales Transactions some of the sales transactions of Jefferson Triguero Distributors whose credit terms are 2/20, n/30 follow: June 1 Cash sales, P180,000. 4 Sales on account, P650,000. 7 Received returned merchandise sold on account, P90,000. 10 Collected the amount due from credit sales. Required: Prepare the journal entries. Problem #7 sold merctandise for P16,000 to Northern On June 8, 2019, Beatriz Onate Curtains sol Interiors; terms 2/10, 1/30. On June 12, P4000 worth of the merchandise was returned, ‘On June 18, Beatriz Onate Curtains received a check for the amount due Onate uses the periodic inventory system. Required: Prepare the journal entries for Beatriz Onate Curtains.rorting by Prof. WIN Ballade 7-52 | Basic Financial Accounting and Rep NAME: [sections Problem #8 Purchase Transactions Several purchase transactions of the Joey Beringuela Pharmacy are Presented below, The credit terms of the entity are 3/10, n/30. Oct. 6 Purchased merchandise for cash, P200,000; FOB shipping point. 12 Purchased merchandise on account, P700,000. 15 Returned merchandise purchased on account, P50,000, 17 Paid supplier the amount due. 19 Paid freight charges of P7,000 on merchandise acquired last Oct. 6, Required: Prepare the journal entries. Problem #9 (On Mar. 10, 2019, Rey Rabago Fruits purchased P18,000 worth of merchandise from Marcos Gener Castillo; terms 1/10, n/30, F.0.B. shipping point. On Mar. 12, Rabag® paid P360 freight on the shipment. On Mar. 15, Rabago returned P2,000 of merchandise for credit. Final payment was made to Castillo on Mar. 19. Rey Reba? Fruits uses the periodic inventory system. Required: 1. Prepare the journal entries for Rey Rabago Fruits 2. Prepare the journal entries assuming that the terms are F.0.8. destination. ' . rproblem #10 purchase Transactions using T-accounts for Cash, Accounts Payable, Purchases, Purchases Returns and Allowances, Purchases Discounts, and Transportation-In, enter the following purchase transactions. Identify each transaction with its corresponding letter. 1. Purchase of merchandise with cash: a, Merchandise is purchased for cash, 35,000. b. Merchandise listed at P50,000, subject to a trade discount of 10%, is purchased for cash. 2. Purchase of merchandise on account with credit terms: ‘a. Merchandise is purchased on account, credit terms 2/10, n/30, P40,000. b. Merchandise is purchased on account, credit terms 3/10, n/30, P28,000, ‘c. Payment is made on invoice (a) within the discount period. dd. Payment is made on invoice (b) too late to receive the cash discount. 3. Purchase of merchandise on account with return of merchandise: ‘a. Merchandise is purchased on account, credit terms 2/10, n/30, P56,000. b. Merchandise is returned for credit before payment is made, P6,000. Payment is made within the discount period. 4, Purchase of merchandise with transportation-‘n: ‘a. Merchandise is purchased on account P38,000 excluding transportation charges of P800, Terms of the sale were FOB shipping point b. payment is made for the cost of merchandise and the transportation charge.score NAME: PROFESSOR: Problem #11 Transportation Costs 1 merchandise to Pascual for P6000, terms 2/10, n/30 orcmwved the goods and Hiano’s invoice on June 17 ‘dich tlano received on June 25. Both The following are several On June 16, 2019, tlano Shipping costs were P600. Pascu: (On June 24, Pascual sent the payment to leno, iano and Pascual use the periodic invectory system arrangements regarding the shipping costs, 2. Shipping terms ore F.0.8. shipping point, freight collect. Pascual paid the shipping costs on une 17 and remitted P5,880 on June 24 Required | Prepare the entries for llano to record the sale and the cash receipt 2 Prepare the entries for Pascual to record the purchase, the payment of shipping costs, and the cash remittance / Shipping terms are F.0.8. destination, freight prepaid. Mano paid the shipping costs on June 16, Pascual remitted P5,880 on June 24. Required Prepare the entries for llano to record the sale, the payment of shipping costs, and the cash receipt. ve and the cast 2 Prepare the entries for Pascual to record the purchs tance, Shipping terms are F.0.8. shipping point, freight prepaid. tlano paid the shipping costs on June 16 and added the P600 cost to the invoice sent to remitted P6,480 on June 24. Pascual Pascual Required 1 epare te ete fr not ear esl and eight payment, and the ash 2. Prepare the entries fr Pascual to record the purchase the invoice fom lana) and the cash emitance Shipping terms are F.0.8. destination, 0sts on June 17 and deducted the P600 from the ameune (with shipping costs added to Required: 1. Prepare the enties for lano to record th rd the sale and the cash 2. Prepare the entries for Pascua to record force cash remittance. "e Burehase, the freight payment, and theMerchandising Operations | (Name: ‘SECTION: Problem #12 Journalizing Merchan ing Transactions Toribio Cayanan Tires entered into the following transactions during the month of June 2019: June 2 Purchased 1,000 tires at a cost of P600 ger tire. Terms of payment: 1/10, net 45, 4 Paid trucking firm P8,000 to ship the tires purchased on June 2. 5 Purchased 600 tires at a cost of P600 per tire. Terms of payment: 2/10, net 30. 6 Paid trucking firm P5,000 to ship the tires purchased on June 5. 7 Returned 150 of the tires purchased on June 2 because they were defective. Received a credit on open account from the seller. 11. Paid for tires purchased on June 2. 13 Sold 700 tires from those purchased on June 2. The selling price was, 900 per tire. Terms: 1/10, net 30. 22. Received cash from sale of tires on June 13. 30 Paid for tires purchased on June 5, Required: Prepare the journal entries.ind Reporting by Prof. WIN Ballad, 56 | Basic Financial Accounting a” a Problem #13 ; Journalizing Merchandising Transactions Lenore Loqueque Homewares engaged in the following transactions in October: Oct.7__ Sold merchandise on credit to Lacson Co., terms n/30, FOB shipping point, P30,00. 8 Purchased merchandise on credit from Orcajada Co., terms n/30, FOB shipping point, P60,000. 9 Paid Mendoza Co. for shipping charges on merchandise purchased ‘on Oct. 8, P2,540. 10 Purchased merchandise on credit from Ortiz Co., terms n/30, FOB shipping, P90,000. Freight prepaid by Ortiz, P6,000. 13 Purchased office supplies on credit from Isagan Co., terms n/10, 24,000. 14 Sold merchandise on credit to Pabelico Co., terms n/30, FOB shipping, P24,000. 14 Returned damaged merchandise received from Orcajada Co. on Oct. 8 for credit, P6,000. 17 Received check payment from Lacson Co. for his purchase on Oct. 7. 18 Returned a portion of the office supplies received on Oct. 13 for credit, P4,000. 19 Sold merchandise for cash, P18,000, 20. Paid Ortiz Co. for purchase of Oct. 10. a ae ora e eee from the transaction on Oct. 8 and 14. a return of merchandise, P2,000. Required: Prepare the journal entries,~ = Merchandising Operations |_7-57 | PROFESEOR: ing Transactions virginia Ruben Candles engaged in the following transactions in August 2019: ‘Aug. Sold merchandise to O. Lacierda Trading on credit, terms n/30, FOB shipping point, P21,000. 3. Purchased merchandise on credit from F, Cabellon Stores, terms 9/30, FOB shipping point, P38,000. 5 Paid SouthMin Freight for freight charges on merchandise received, P290. 6 Purchased store supplies on credit from Ipil Supplies, terms n/20, 76,360. 8 Purchased merchandise on credit from Pagadian Corp., terms n/30, FOB shipping point, P36,000. Pagadian Corp. paid P200 for freight costs. 12 Returned some of thé merchandise received on Aug. 3 for credit, 6,000. 15 Sold merchandise on credit to, Columban Stores, terms n/30, FOB shipping point, P12,000. 46 Returned some of the store supplies purchased on Aug. 6 for credit, 2,000. 17 Sold merchandise for cash, 10,000. 1g Accepted for full credit a return from O. Lacierda Trading, P2,000. 24 Paid accounts to R. Cabellon Stores. 25 Received full payment from O. Lacierda Trading, Required: Prepare the journal entries.WIN Ballada 7-58 | Basic Financial Accounting and Reporting by Prof. SCORE: | PROFESSOR: NAME: SECTION: s Noveltie: 1s engaged in the following transactions in December 2019: terms n/30, FOB Marichu Fornol Dec.7 Sold merchandise on credit to Caindec Store, shipping point, P30,000. 8 Purchased merchandise on credit from Kho Traders, FOB shipping point, P60,000. 9 Paid Dinopol Freight for shipping charges on merchandise purchased on Dec. 8, P254. 10 Purchased merchandise on credit from Magallanes Importers, terms n/30, FOB shipping point, P95,400. Freight costs of P600 terms n/30, paid by Magallanes. 13 Purchased office supplies on credit from Carlos Supplies, terms 1n/10, P24,000. 14 Sold merchandise on credit to Zosa Gifts, terms n/30, FOB shipping point, P24,000. 14 Returned damaged merchandise rec 8 for credit, P6,000. 17 Received check from Caindec Store for his purchase of Dec. 7. 18 Returned a portion of the office supplies received on Dec. 13 for credit because the wrong items were sent, P4,000. 19 Sold merchandise for cash, P18,000. 20 Paid Magallanes Importers for the purchase on Dec. 10. 21 Paid Kho Traders the balance from transactions of Dec. 8 and 14. 24 Accepted from Zosa Gifts a return of merchandise, P2,000. fed from Kho Traders on Dec. Required: Prepare the journal entries.‘Merchandising Operations | 7-59 ‘SCORE: PROFESSO! [seeions problem #16 Journalizing Sales and Purchase-Related Transactions ‘Agnes Ramos Distributors and Cammayo Retailers engaged in the following transactions during the month of May 2018: May 4 Ramos sold merchandise on account to Cammayo, P162,000. Terms: FOB destination; 2/10, n/30. Freight charges amounted to 2,000, 5 Ramos sold merchandise on account t> Cammayo, P710,000. Terms: FOB shipping point; 2/10, n/30. Freight charges amounted to P8,000. 6 _Cammayo paid freight charges on the purchase of May 5. 7 Ramos received returned merchandise from Cammayo in the ‘amount of P12,000 from the May 4 sale. 9 Ramos received payment from Cammayo for the May 4 transaction less returns and discounts. 10 Ramos paid the transportation charges on the May 4 shipment, 12 Ramos received payment from Cammayo for the May 5 transaction. 18 Ramos sold merchandise on account to Cammiayo, P250,000. Terms: 40% trade discount; FOB shipping point; 2/10, n/30. 21 Cammayo paid freight charges on the May 18 transaction, P3,000. 23 Ramos received payment from Cammayo for the amount due from the transaction of May 18. Required: 1. Prepare the journal entries for Ramos Distributors. 2. Prepare the journal entries for Cammayo Retailersyrting by Pro}. Ot mee {60 | Bosic Financial Accounting and Repo scone: ai ee PROFESSOR: problem #17 Journaling Merchanlsng Transactions Transactions forthe Mariano Lerin Bookstore for March 2019 follows: Mar.2 Purchased merchandise on credit from Digao Publishers, terms 2/10, '1/30, FOB destination, 74,000 3 ‘Sold merchandise on credit to Detoya Books Shop, shipping pont, P20,000, 5 Sold merchandise for cash, P7,000. & Purchased and received merchandise on credit from Made Easy Bookstore, terms 2/10, r/30, FOB shipping point, P42, 000, 7 Received freight bl rom Super Express from shipment received on Mar. 6, 570, 9 Sold merchanelse on credit to Recoletos Books, terms 1/10, n/30, FOB destination, 38,000. 10 Purchased merchandise from Digao Publishers, terms 2/10, n/30, FOB shipping point, 26,500, including freight costs of P50, 11 Received freight bil rom Super Expres forsale on Mar. 9, P29), 12. Paid Digao Publishers for purchase of Mar. 2. 13 Received payment in fll for Detoya Books Shop's purchase of Ma. 3 14 Paid Made Easy Bookstore hal the amount owed on the Mar. 6 purchase ’A discount i alowed on partial payment. 15. Returned faulty merchandise worth 3,000 to Digao Publishers for credit against purchase of Mar. 10. 16 Purchased office supplies from Olamit Supplies for P4780, terms n/10 17 Received payment from Recoletos Books for half ofthe purchaze of Mar 9. A discounts allowed on partial payment 18 Paid Digao Publishers in full for amount owed on purchase of Mar. 10, less return on Mar. 35. 19 Sold merchandise to Sir Ed Trading on ered, terms 2/10, 9/30. FOB shipping point, P7800. 20 ead rr sever tems of fice supplies purchase en Mat. 16 22 Issued.a credit memo to Sir Ed Trading for returned mercha 25 Pad for purchase of Mar. 16, less retuson Ma age ne 26 Paid freight entity fr feght charges for Mar ard aa 27 Received payment of amount owed by 19, les credits of Mar. 22 28 Paid Made Easy Bookstore forthe bal 31 Sold merchandise for cash, 9,739, terms 1/10,n/30, Fos Y Sit Ed Trading for purchase of Mar lance on the Mar. 6 purchase. Required: Prepare the journal entries,a Merchandising Operations | 7-61 NAME: SECTION Problem #18 The following information pertains to the Leopoldo Valde2 Schoo! Chairs: Transportation in P 172,000 Merchandise inventory, 1/1/2019 1,200,000 Merchandise inventory, 12/31/2019 1,900,000, Purchases 4,300,000, Purchases Returns and Allowances 129,000 Purchases Discounts. 215,000 Required: Prepare the cost of goods sold section of the ended Dec. 31, 2019. \come statement for the year2 | Basic Financial Accounting and Reporting by Prof WIN Ballade Problem #19 Determining Ending Merchandise Inventory On Feb. 18, 2019, a fire destroyed the merchandise inventory of Cristina Santiago Shins, The following information was available from the entity's accounting office: Cost of Goods Sold 1,260,000 Transportation In 39,600 Merchandise inventory, 1/1/2019 300,000 Purchases Discounts 26,400 Purchases Returns and Allowances 46,200 1,320,000 Purchases Required: Compute the value of the lost merchandise.‘Merchandising Operations | 7-63 problem #20 petermining the Missing Elements of the Income Statement me partial income statements of five different companies are as follows: aS net ales a 250,000 290,000 400,000 Merchandise Inventory, 1/1/2019 b 50,000 70,000} 120,000 net Cost of Purchases 80,000 e 160,000 390,000 Goods Available for Sale 110,000 160,000 h k m Merch. inventory, 1/32/2019 40000 f 30,000 70,000 on Cost of Goods Sold ¢ 140,000 230,000 '|——_380,000 Gross Profit 50000 40,000 i-—=—=—«(160,000 Required: Replace the lettered blanks with the appropriate amounts. Problem #21 the table below contains portions of the income statements of four different 1 2 —3_— 4 tegen invertor 0 12000 rc nooo Net cost of Purchases smo bao 35000 ae wom 50D ‘ Cost of Goods Sold b 90,000 so noe Gross Profit £ ce the lettered blanks withthe appropriate amounts, Required: Replainancial Accounting and Report iA | Basic Fit Problem #22 Effects of Inventory Errors Denise Javellana Flowers’ operating figures for four consecutive periods are given below: PERIOD, 1 — 2 = Beginning Inventory 50,000 40,000 30,000 46,000 Net Cost of Purchases 30,000 110,000_ 100,000 90,000 Goods Available for Sale 140,000 150,000 130,000 136,000 Ending Inventory 40,000 30,000 46,000 32,000 Cost of Goods Sold 00,000 __ 120,000 84,000 _ 104,000 Required: If the following errors were made, compute the correct cost of goods sold for each period: Period Error in Ending Inventory 1 Overstated by P4,000 2 Understated by P6,000 3 Overstated by P2,000 \ a } 4 inadjusted 606s Jo0jco0 120,000 Bioo «104,000 na Stent | 4000 4,000, L ( G0!) G00 } 20% (,00 06 you * oe ndyusted COES Joyo) 11o,0W0 Gaur Joa,a0Merchandising OperoUOrs as we ee poser 123 comprehensive Problem sted below are the Feb. 1, 2019 account balances of the Teresita Buenalor Shoes: 0 Cash 33,000 to Accounts ReceWvable 192,000 10 Merchandise inventory 413,000 to supplies 51,00 {50 Prepad Insurance 48,000 10 land 40000 170 Bulding 1,780,000 1S Accumulated Depreciation Building 350,000 180 Equipment 210,000 185 Accumulated Depreciation-Equipment 630,000 20 Accounts Payable 108,000 20 _ Salaries Payable 230 Mortgage Payable 2,600,000 310 Buenaflor, Capital 1,869,000 320 Buenafior, Withdrawals 330 Income Summary 410 Sales 420 Sales Returns and Allowances 430 Sales Discounts S10 Purchases 520 Purchases Returns and Allowances 530 Purchases Discounts 540 Transportation In 510 Salaries Expense 620 Supplies Expense 630 Insurance Expense 510 Depreciation Expense-Building 650 Depreciation Expense-Equipment 660 Transportation Out 670 Advertsing Expense 520 Interest Expense 690 Miscellaneous Expense During the month of February 2019, the following transactions occurred: Feud Collected P113,000 from customers on account. 2 paid p6a,000 of accounts due less discounts of 3% Fein resg merchandise, P170,000. Terms: FOB shipping point; 3/10, n/30. 5 si 17 1000. Terms: FOB{66 | Basic Financiol Accounting and Reporting by Prof WIN Ballade shipping point, 2/10, 0/30 Paid for advertising for the month of February, P6,000. 7 7 Sold merchandise for cash, P250,000 8 Paid the amount due from the Feb 4 transaction 9 Paid toil Freight P4,000 for delivering merchandise last Feb. 4 10 Received returns trom the Gonzales nc , 70,000, 12 Received payment from the Gonzales Inc. less returns and discounts 14 Paid P26,000 interest on the mortgage payable. 3d salaries, P51,000, 16 Sold merchandise on account to Ronzales Corp... 392.000 Terms. Fog destination, 2/10, n/30 18 Paid P4,000 freight charges on the sale of Feb. 16, 19 Acquited supplies for cash, P22,000, 20 Purchased P125,000 of merchandise from Lozada Imports on account Terms: FOB destination; 3/10, 1/30 22 Paid P7,000 miscellaneous expenses 23 Received payment from Ronzales Corp. less discounts 24 Purchased 373,000 of merchandise on account from Agustin Enterprises, Terms: FOB shipping point; 3/10, n/30. 24 Paid La Par Express P9,000 freight for delivering merchandise acquired trom ‘Agustin 25 Sold merchandise to Ronzales Corp. on account, P420,000. Terms: FOB shipping point; 2/10, n/30, 26 Received returns from Ronzales Corp., P71,000, 28 Buenalor withdrew P400,000 from the business. 28 Returned merchandise purchased from Agustin on June 24, P25,000, Required 1. Post the Feb. 1, 2029 account balances to the ledger accounts. 2. Record the transactions for the month of February in a journal and gost the transactions to the ledger. 3. Prepare the worksheet using the following information Salaries in the amount of P51,000 have accrued on Feb. 28 Insurance coverage with premiums of P2,000 has expired at month-end © Depreciation on the building and on the equipment for the month amounted 19 9,000 and P12,000, respectively. Supplies on hand at month-end amounted t8 P14,000, ©. Account of the merchandise inventory on Feb, 28, 2019 amounted to 397,000 4. Prepare an income statement and a statement of changes in equity for the mont” ended eb 28,2018, nda tlance seta oa ee eaeY 5. Prepare the adjusting and closing entries tor the month, 6. Post the adjusting and closing entries to the ledger accounts