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    Bookkeeping NC III Institutional Assessment Problem

    Uploaded by

    Donalyn Bannagao
    This document provides instructions and transactions for a bookkeeping exercise using periodic and perpetual inventory methods. It includes: 1) A chart of accounts for journalizing transactions and preparing financial statements. 2) Transactions from January 2-31, 2021 for a grocery business including purchases, sales, expenses, and withdrawals. 3) Requirements to prepare journal entries, ledgers, trial balance, and four financial statements using periodic inventory accounting and assuming a January 31 inventory of P140,000. 4) The same requirements using perpetual inventory accounting, assuming a 60% markup on cost and cost is 100% of selling price.

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    Bookkeeping NC III Institutional Assessment Problem

    Uploaded by

    Donalyn Bannagao
    146 views2 pages
    This document provides instructions and transactions for a bookkeeping exercise using periodic and perpetual inventory methods. It includes: 1) A chart of accounts for journalizing transactions and preparing financial statements. 2) Transactions from January 2-31, 2021 for a grocery business including purchases, sales, expenses, and withdrawals. 3) Requirements to prepare journal entries, ledgers, trial balance, and four financial statements using periodic inventory accounting and assuming a January 31 inventory of P140,000. 4) The same requirements using perpetual inventory accounting, assuming a 60% markup on cost and cost is 100% of selling price.

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    This document provides instructions and transactions for a bookkeeping exercise using periodic and perpetual inventory methods. It includes: 1) A chart of accounts for journalizing transactions and preparing financial statements. 2) Transactions from January 2-31, 2021 for a grocery business including purchases, sales, expenses, and withdrawals. 3) Requirements to prepare journal entries, ledgers, trial balance, and four financial statements using periodic inventory accounting and assuming a January 31 inventory of P140,000. 4) The same requirements using perpetual inventory accounting, assuming a 60% markup on cost and cost is 100% of selling price.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    146 views2 pages

    Bookkeeping NC III Institutional Assessment Problem

    Uploaded by

    Donalyn Bannagao
    This document provides instructions and transactions for a bookkeeping exercise using periodic and perpetual inventory methods. It includes: 1) A chart of accounts for journalizing transactions and preparing financial statements. 2) Transactions from January 2-31, 2021 for a grocery business including purchases, sales, expenses, and withdrawals. 3) Requirements to prepare journal entries, ledgers, trial balance, and four financial statements using periodic inventory accounting and assuming a January 31 inventory of P140,000. 4) The same requirements using perpetual inventory accounting, assuming a 60% markup on cost and cost is 100% of selling price.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    CORDILLERA CAREER DEVELOPMENT COLLEGE

    College of Accountancy
    Buyagan, Poblacion, La Trinidad, Benguet

    BOOKKEEPING
    Institutional Assessment – July 12, 2021

    Instruction: Using the following chart of accounts and list of transactions, prepare the following requirements using
    Periodic method of accounting for inventories:

    A. Chart of Accounts for Journalizing purposes

    Statement of Financial Position Accounts Income Statement Accounts

    Assets Income
    Account No. Account Name Account No. Account Name
    111 Cash in Bank 411 Sales
    112 Accounts Receivable 411-A Sales Discounts
    112-A Allowance for Bad Debts 411-B Sales Returns and Allowances
    113 Merchandise Inventory
    114 Prepaid Insurance Cost of Sales & Expenses

    115 Delivery Equipment 511 Purchases


    115-A Accumulated Depreciation-D.E. 511-A Purchase Discounts
    511-B Purchase Returns & Allowances
    512 Freight In
    Liabilities
    211 Accounts Payable
    212 Notes Payable 611 Depreciation Expense
    612 Bad Debts Expense
    613 Salaries Expense
    Owner’s Equity 614 Rent Expense
    311 Jack A. Ammo, Capital 615 Freight Out
    312 Jack A. Ammo, Drawings
    313 Income Summary

    B. Chart of Accounts for Financial Reporting Purposes


    Assets Income Statement (Same accounts as above)

    Cash and Cash Equivalents


    Trade and Other Receivables
    Allowance for Bad Debts
    Inventories
    Other Current Assets
    Delivery Equipment
    Accumulated Depreciation

    Liabilities

    Trade and Other Payables


    Short-term Borrowings

    Owner’s Equity

    Jack Ammo, Capital


    Mr. Jack Ammo started his grocery business on January 2, 2021. The following are the transactions for the month of
    January, 2021:

    Jan. 2 Jack Ammo started his business by investing cash of P800,000 under the business name; Marawi Grocery.
    3 Bought merchandise on account from Maute Company P100,000 FOB Shipping point. Term: 3/10, N/30. Paid
    freight charges of P5,000. The goods were shipped today.
    4 Returned merchandise costing P5,000 to Maute Company for non- conformance to order.
    5 Bought a second hand Delivery Equipment for cash , P240,000. The vehicle will have a useful life of 5 years and
    a full month’s depreciation is provided in the month of acquisition.
    6 Bought merchandise for cash, P50,000 and availed of 2% trade discount. Paid freight charges of P4,000.
    7 Sold merchandise for cash P80,000 and gave 2% trade discount. Paid freight of P1,200.
    10 Bought merchandise on account from Hapilon Company P150,000 ,FOB Destination. Term: 2/15 , N/30. The
    merchandise arrived on January 12, 2021.
    11 Sold merchandise on account to Esnilon Company P200,000 FOB Shipping point. Term: 2/10 , N/30. The goods
    were shipped today .
    12 Received P10,000 worth of merchandise returned by Esnilon Company due to wrong specifications.
    12 Paid in full the account to Maute Company for the purchase on January 3.
    20 Collected in full the account of Esnilon Company.
    21 Paid in full the account to Hapilon Company representing the purchase on Jan. 10.
    22 Paid insurance premium on Delivery Equipment, P7,200. The insurance coverage will run for a year to start on
    February 1, 2021.
    23 Obtained a short term loan from the bank and issued a promissory note, P60,000.
    25 Mr. Jack Ammo withdrew P20,000 for family use.
    27 Bought merchandise on account from Iligan Trading P40,000. Term: 3/10; N/30
    28 Sold merchandise on account to Davao Trading P70,000. Term: 3/10; N/30
    30 Paid the following expenses, Salaries 18,000 and Rent P12,000.
    31 Recorded adjustment for depreciation and bad debts estimated at 2% of sales.

    REQUIREMENTS ( I): ( Assume an Ending Merchandise Inventory value as of Jan. 31, 2021 0f P140,000.)
    1. Prepare compound journal entries on a daily basis , on a two column general journal. All entries must be
    complete with date , short explanation and filling up of posting reference or ledger folio.
    2. Post transactions in ledgers complete with date and posting reference. Note: Use the three column format for
    your ledgers: Debit; Credit; Balance
    3. Prepare the trial balance as of January 31, 2021
    4. Prepare the financial statements as follows:
    a. Statement of Financial Position ( As of January 31, 2021)
    b. Income Statement ( For the Month ended January 31, 2021)
    c. Statement of Changes in Owner’s Equity ( do)
    d. Statement of Cash Flows ( do )
    5. Closing entries : Note Set up Ending Inventory as part of the Closing Entries.
    6. Post-Closing Trial Balance

    REQUIREMENTS (II): Same requirements above but using the Perpetual System of Inventory Accounting. Assume the
    following:

    1. The mark up is 60% of cost, or the selling price is at 160% and cost is 100%.
    2. Merchandise Inventory and Cost of sales accounts will replace purchases, freight-in , purchase discount and
    purchase returns and allowances.

    /dbay-an

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