ARELLANO UNIVERSITY
Jose Abad Santos Campus
Basic Education Department – Senior High School
3058 Taft Avenue Pasay City
FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2
Assignment Number 3
First Semester
School Year 2020 – 2021
Name: Princess S. Condes__________ Date: September 29,2020_____________
Grade and Section: _12-ABM 1__________ Teacher: Mr. Gerald Diadid_______
I. Gas Tos had the following expense accounts for the year ended December 31, 2020.
Identify if the account is part of the GENERAL AND ADMINISTRATIVE EXPENSE or
SEELING EXPENSE. Write NOT APPLICABLE if the account is not part of these expenses.
GENERAL AND ADMINISTRATIVE EXPENSE A. Salaries of admin personnel
GENERAL AND ADMINISTRATIVE EXPENSE B. Salaries of janitors
SELLING EXPENSE. C. Salaries of sales agents
GENERAL AND ADMINISTRATIVE EXPENSE D. Utilities of home office
GENERAL AND ADMINISTRATIVE EXPENSE_E. Depreciation of office equipment
SELLING EXPENSE______________________F. Depreciation of delivery van
GENERAL AND ADMINISTRATIVE EXPENSE G. Rent of office building
SELLING EXPENSE______________________H. Advertising
NOT APPLICABLE______________________I. Cost of merchandise sold during the year
GENERAL AND ADMINISTRATIVE EXPENSE J. Depreciation expense-office building
SELLING EXPENSE______________________K. Freight out
NOT APPLICABLE. L. Freight in
GENERAL AND ADMINISTRATIVE EXPENSE M. Expenses related to company
management
GENERAL AND ADMINISTRATIVE EXPENSE_N. Salaries of non-sales people
GENERAL AND ADMINISTRATIVE EXPENSE O. Store Supplies Expense
II. STATEMENT OF COMPREHENSIVE INCOME
ENRICHMENT EXERCISES PART 1
EASY:
1. Learning is Fun Company generated revenues amounting to Php 100,000. Expenses for
the year totalled Php 76,000. How much is the company’s net income for the year? Php 24,000
2. Happy Selling Company’s salaries to sales agents amounted to Php 10,000. Salaries of
accountants amounted to Php 20,000. No other expenses were incurred. How much is the
company’s general and administrative expense? Php 30,000
MEDIUM:
1. Happy Selling’s beginning inventory amounted to 250,000. Purchases amounted to
70,000. Freight In totalled 15,000. Purchase discounts totalled 5,000 and Purchase returns
totalled 10,000.
Compute for the company’s Gross Purchases. Php 85,000
Compute for the company’s Net Purchases. Php 70,000
Compute for the company’s Cost of Goods Available for Sale. Php 320,000
2. Happy Selling’s Sales amounted to Php 500,000. Sales returns and sales discounts
amounted to Php 30,000 and Php 10,000 respectively. Purchases of the company totalled Php
100,000 while purchase returns and purchase discounts amounted to Php 20,000 and Php 10,000
respectively.
How much is the company’s Net Sales? Php 460,000
How much is the company’s Net Purchases? Php 70,000
DIFFICULT:
1. Company’s Cost of Goods Sold amounted to Php 285,000. Net purchases totalled Php 85,000.
Beginning inventory amounted to Php 250,000. Sales amounted to Php 500,000.
Compute for the company’s Cost of Goods Available for Sale. Php 335,000
Compute for the company’s Ending Inventory. Php 50,000
Compute for the company’s Gross Profit. Php 215,000
2. Gross profit of Happy Selling amounted to Php 175,000. Beginning Inventory totalled Php
250,000. Ending Inventory amounted to Php 50,000 while Net Purchases totalled Php 85,000.
Compute for the Happy’s Cost of Goods Available for Sale. Php 335,000
Compute for Happy’s Cost of Sales. Php 285,000
Compute for Happy’s Net Sales. Php 460,000
3. At the end of the first month of operations for Juan’s Service Company, the business had the
following accounts: Cash, Php19,000; Prepaid Rent, Php500; Equipment, Php5,000 and
Accounts Payable Php2,000. By the end of the month, Jackson's had earned Php20,000 of
Revenues, Php1,000 of Utilities Expenses and Php1,500 of Salaries Expenses. Calculate the
net income to be reported by the company for this first month. Php 17,500
4. During October, a sari-sari store had the following transactions involving revenue and
expenses.
Paid Php1,200 for rent
Provided services for Php2,750 in cash
Paid Php250 for telephone service
Provided services for Php1,900 on credit
Paid salaries of Php1,675 to employees
Paid Php350 for office cleaning service
Did the firm earn a net income or incur a net loss for the period? _Net Loss__ What
was the amount? _Php 2,625_____________
5. Using the following information, answer the questions below:
Net Sales – 15,000
Purchases – 2,000
Purchase returns – 200
Purchase discounts – 200
Freight in – 100
Beginning inventory – 1,000
Ending inventory – 500
Compute for the Gross Purchases. _Php 2,100_____________
Compute for the Net Purchases. __Php 1,700____________
Compute for the Cost of Goods Available for Sale. _Php 2,700_____________
Compute for the Cost of Goods Sold. _Php 2,200____________
Compute for the Gross Profit. _Php 12,800_____________
