ABM 003: ACCOUNTING 2 FINAL PERFORMANCE TASK EXAM

INSTRUCTIONS:
1) Assume that you will establish your own grocery store in your locality.
2) Given the transactions below, provide the dates, amounts and terms. Do not think of other transactions
anymore just follow what is provided.
3) Journalize transactions, prepare ledger, trial balance and financial statements according to the system assigned
to you as either Periodic or Perpetual.
4) Use the given template.
5) Encode IT if your resources permit but you can also have it handwritten.
6) Deadline: December 11, 2020
7) Rubrics includes PUNCTUALITY.
Accounting
Transactions 10%
Process(Journalizing-Trial Balance) 40%
Financial Statements 40%
Punctuality 10%

Business Finance
Formula 10%
Process(Calculation, Ratios Format, Correctness of Answers) 40%
Analysis 40%
Punctuality 10%

Date Transactions Amounts Terms if

Applicable
1 Dec. 1 The owner invested cash for merchandising business ₱150,000
2 Dec. 2 The company purchased goods on accounts with discount ₱50,000 2/10, n/30
terms
3 Dec. 3 Paid the transportation of goods from the supplier ₱200
4 Dec. 4 Bought Equipment on cash ₱65,000
5 Dec. 5 Returned some items of Transaction 2 ₱25,000
6 Dec. 6 Sales on account with terms(Indicate also cost of sales if ₱35,000 2/10, n/30
perpetual)
7 Dec. 7 Paid the first purchase and took the discount ₱25,000
8 Dec. 8 The customer returned some substandard item from ₱10,000
transaction 6(Indicate also cost of sales if perpetual)
9 Dec. 9 Received cash payment from transaction 6. The customer ₱25,000
availed the discount.
10 Dec. 10 Made additional purchase on cash ₱15,000
11 Dec. 11 Sold merchandise on cash((Indicate also cost of sales if ₱20,000
perpetual)
12 Dec. 12 Paid transportation fee upon delivery of goods to a customer ₱200
13 Dec. 13 Customer who paid in cash returned goods(Indicate also cost ₱5,000
of sales if perpetual)
14 Dec. 14 Paid various expenses: ₱15,000
Salaries
Utilities
Rent
Advertising
15 Dec. 15 Owner’s Withdrew cash for personal purpose ₱10,000
16 Dec. 31 Conducted month end inventory count ₱150,000
 CHART OF ACCOUNTS
No. Accounts No. Accounts
101 Cash 413 Sales Discounts
112 Accounts Receivable 500 Cost of Sales
120 Merchandise Inventory 510 Purchases
126 Supplies 512 Purchase Returns and Allowances
130 Equipment 513 Purchase Discounts
201 Accounts Payable 516 Freight-In
202 Notes Payable 630 Salaries
301 Owner’s, Capital 631 Advertising
302 Owner’s, Drawing 635 Rent Expense
401 Sales 644 Freight-Out
412 Sales Returns and Allowances 645 Utilities Expense

PERIODIC INVENTORY SYSTEM:

JOURNALIZING
Date Particulars PR DR CR

Dec. 1 Cash 101 ₱150,000

Campo, Capital 301 ₱150,000
To record the investment of Campo
Merchandising.

2 Purchases 510 ₱50,000

Accounts Payable 201 ₱50,000
To record purchased goods on account, terms
2/10 n/30

3 Freight-In 516 ₱200

Cash 101 ₱200
To record freight on purchases.

4 Equipment 130 ₱65,000

Cash 101 ₱65,000
To record purchased equipment on cash.

5 Accounts Payable 201 ₱25,000

Purchase Return and Allowances 512 ₱25,000
To record return on purchase account.

6 Accounts Receivable 112 ₱35,000

Sales 401 ₱35,000
To record sales on account, terms 2/10 n/30

7 Accounts payable 201 ₱25,000

Cash 101 ₱24,500
 Purchase Discount 513 ₱500
To record payment on account with 2% discount.

8 Sales Return and Allowances 412 ₱10,000

Accounts Receivable 112 ₱10,000
To record refund of sales on account.

9 Cash 101 ₱24,500

Sales Discount 413 ₱500
Accounts Receivable 112 ₱25,000
To record collections from sale on account.

10 Purchases 510 ₱15,000

Cash 101 ₱15,000
To record additional purchase on cash.

11 Cash 101 ₱20,000

Sales 401 ₱20,000
To record sales on cash.

12 Freight-Out 644 ₱200

Cash 101 ₱200
To record freight on sales.

13 Sales Return and Allowances 412 ₱5,000

Cash 101 ₱5,000
To record refund of sales on cash.

14 Salaries Expense 630 ₱3,750

Utilities Expense 645 ₱3,750
Rent Expense 635 ₱3,750
Advertising Expense 631 ₱3,750
Cash 101 ₱15,000
To record the payment for Salaries Expense,
Utilities Expense, Rent Expense and Advertising
Expense.

15 Campo, Drawing 302 ₱10,000

Cash 101 ₱10,000
 To record the withdrawal of the owner for
personal use.

31 Ending Inventory 120 ₱150,000

Income Summary ₱150,000
To record ending inventory.

POSTING TO THE LEDGER

Account Title: CASH

Account #: 101
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Dec. 1 Investment 101 ₱150,000 ₱150,000
Dec. 3 Freight on Purchases 101 ₱200 ₱149,800
Dec. 4 Purchased equipment on cash 101 ₱65,000 ₱84,800
Dec. 7 Payment on account with 2% discount 101 ₱24,500 ₱60,300
Dec. 9 Collections from sales on account 101 ₱24,500 ₱84,800
Dec. 10 Additional purchase on cash 101 ₱15,000 ₱69,800
Dec. 11 Sales on cash 101 ₱20,000 ₱89,800
Dec. 12 Freight on sales 101 ₱200 ₱89,600
Dec. 13 Refund on sales on cash 101 ₱5,000 ₱84,600
Dec. 14 Payment for Salaries Expense, Utilities 101 ₱15,000 ₱69,600
Expense, Rent Expense and Advertising
Expense
Dec. 15 Withdrawal for personal use. 101 ₱10,000 ₱59,600

Account Title: ACCOUNTS RECEIVABLES

Account #: 112
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Dec. 6 Sales on account 112 ₱35,000 ₱35,000
Dec. 8 Refund of sales on account 112 ₱10,000 ₱25,000
Dec. 9 Collection from sales on account 112 ₱25,000 -0-
Account Title: MERCHANDISE INVENTORY
Account #: 120
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Account Title: EQUIPMENT
Account #: 130
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Dec. 4 Purchased equipment on cash 130 ₱65,000 ₱65,000

Account Title: ACCOUNTS PAYABLE

Account #: 201
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

Dec. 2 Purchased goods on account 201 ₱50,000 ₱50,000

Dec. 5 Return on purchase account 201 ₱25,000 ₱25,000
Dec. 7 Payment on account with 2% discount 201 ₱25,000 -0-

Account Title: CAMPO, CAPITAL

Account #: 301
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

Dec. 1 Investment 301 ₱150,000 ₱150,00

0

Account Title: CAMPO, DRAWING

Account #: 302
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Dec. 15 Withdrawal for personal use. 302 ₱10,000 ₱10,000

Account Title: SALES

Account #: 401
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

Dec. 6 Sales on account 401 ₱35,000 ₱35,000

Dec. 11 Sales on cash 401 ₱20,000 ₱55,000

Account Title: SALES RETURNS AND ALLOWANCES

Account #: 412
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Dec. 8 Refund of sales on account 412 ₱10,000 ₱10,000
Dec. 13 Refund of sales on cash 412 ₱5,000 ₱15,000

Account Title: SALES DISCOUNTS

Account #: 413
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Dec. 9 Collections from sale on account 413 ₱500 ₱500
Account Title: PURCHASES
Account #: 510
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Dec. 2 Purchased goods on account 510 ₱50,000 ₱50,000
Dec. 10 Additional purchase on cash 510 ₱15,000 ₱65,000

Account Title: PURCHASES RETURNS AND ALLOWANCES

Account #: 512
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Dec. 5 Return on purchase account 512 ₱25,000 ₱25,000

Account Title: PURCHASES DISCOUNTS

Account #: 513
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR

Dec. 7 Payment on account with 2% discount 513 ₱500 ₱500

Account Title: FREIGHT-IN

Account #: 516
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Dec. 3 Freight on purchases 516 ₱200 ₱200

Account Title: SALARIES

Account #: 630
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Dec. 14 Payment for Salaries 630 ₱3,750 ₱3,750

Account Title: ADVERTISING

Account #: 631
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Dec. 14 Payment for Advertising 631 ₱3,750 ₱3,750

Account Title: Rent Expense

Account #: 635
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Dec. 14 Payment for Rent Expense 635 ₱3,750 ₱3,750

Account Title: Freight-Out

Account #: 635
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
 Dec. 12 Freight on sales 635 ₱200 ₱200

Account Title: UTILITIES EXPENSE

Account #: 645
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Dec. 14 Payment for Utilities Expense 645 ₱3,750 ₱3,750

CAMPO MERCHANDISING SHOP

TRIAL BALANCE
For the month ended December 2020
Acct. # Acct. Title Debit Credit
 101 Cash ₱59,600
112 Accounts Receivables -0-
120 Merchandise Inventory -0-
130 Equipment ₱65,000
201 Accounts Payable -0-
301 Owner’s, Capital ₱150,000
302 Owner’s, Drawing ₱10,000
401 Sales ₱55,000
412 Sales Returns and Allowances ₱15,000
413 Sales Discounts ₱500
510 Purchases ₱65,000
512 Purchase Returns and Allowances ₱25,000
513 Purchase Discounts ₱500
516 Freight-In ₱200
630 Salaries ₱3,750
631 Advertising ₱3,750
635 Rent Expense ₱3,750
644 Freight-Out ₱200
645 Utilities Expense ₱3,750
TOTAL ₱230,500 ₱230,500

CAMPO MERCHANDISING SHOP

COST OF GOODS SOLD
For the month ended December 2020

Purchases ₱65,000
Add: Freight-In ₱200
Gross Purchases ₱65,200
Less: Purchase Returns and Allowances ₱25,000
Less: Purchase Discounts ₱500
Total Goods Available for Sale ₱39,700
Less: Inventory, End ₱150,000
COST OF SALES/COST OF GOODS SOLD (₱110,300)

CAMPO MERCHANDISING SHOP

STATEMENT OF PERFORMANCE
For the month ended December 2020

Sales ₱55,000
Less: Sales Returns and Allowances ₱15,000
Less: Sales Discounts ₱500 ₱15,500
Net Sales ₱39,500
Less: Cost of Sales (110,300)
Gross Sales ₱149,800
Less: Operating Expenses
Salaries ₱3,750
Advertising ₱3,750
Rent Expense ₱3,750
Freight-Out ₱200
Utilities Expense ₱3,750
Total Operating Expense ₱15,200
NET LOSS/PROFIT ₱134,600
 CAMPO MERCHANDISING SHOP
STATEMENT OF CHANGES IN OWNER’S EQUITY
For the month ended December 2020

Owner’s, Capital ₱150,000

Owner’s Drawing ₱10,000
Total ₱140,000
Add: Net Profit ₱134,600
Owner’s, Capital-End ₱274,600

CAMPO MERCHANDISING SHOP

STATEMENT OF FINANCIAL POSITION
For the month ended December 2020

ASSET
Current Asset
Cash ₱59,600
Accounts Receivables -0-
Inventory ₱150,000
Prepaid Expenses -0-
Total Current Asset ₱209,600
Non-Current Asset
Equipment ₱65,000
TOTAL ASSET ₱274,600

LIABILITIES AND OWNER’S EQUITY

Liabilities
Accounts Payable -0-
Total Liabilities -0-
Owner’s Equity
Owner’s, Capital-End ₱274,600
TOTAL LIABILITIES AND OE ₱274,600

CAMPO MERCHANDISING SHOP

STATEMENT OF CASH FLOW
For the month ended December 2020

Cash Flow from the Operating Activities

Cash Sales from Merchandising 20,000
Collection on Customers Account (24,500)
Refund from Merchandise Purchased -0-
Payment on Transportation (400)
Payment on Accounts -0-
Payment on Purchases (15,000)
Payment on Operating Expenses (15,000)
Refund on Merchandise Sold (5,000)
NET CASH FROM OPERATING ACTIVITIES (39,900)
Cash Flow from Investing Activities
Purchase of Equipment 65,000
NET CASH FROM INVESTING ACTIVITIES 65,000
Cash Flow from Financing Activities
Cash Investment by the Owner 150,000
 Cash Withdrawals by the Owner 10,000
NET CASH FROM FINANCING ACTIVITIES 140,000
NET INCREASE IN CASH
Cash Balance at the Beginning of the Period
Cash Balance at the End of the Period ₱59,600

Part II. Analysis

FINANCIAL STATEMENT ANALYSIS, COMPUTE THE FOLLOWING RATIOS. Provide the formula and show your solution

Quick Ratio

Quick Ratio = Cash + Accounts Receivable / Accounts Payable

= 59,600 + 0 / 0

= undetermined.
Current Ratio

Current Ratio = Current Assets / Accounts Payable

= 209,600 / 0

= undetermined.
Gross Margin

Gross Margin = Net sales – Cost of sales / Net sales

= 39,500 - 110,300 / 39,500

= -1.79:1
Profit Margin

Profit Margin = Net Income ÷ Sales

= 134,600 / 55,000

= 2.45:1

Return on Asset(use TOTAL ASSET)

Return on Asset = Net Income ÷ Total Assets

= 134,600 / 274,600

= 0.49:1
Debt to Equity Ratio

Debt to Equity Ratio = Total Liabilities÷ Total Equity

= 0 / 274,600,

= undetermined.

Debt Ratio

Debt Ratio = Total Liabilities ÷ Total Assets

= 0 / 274,600

= undetermined.
Interpretation(More than 3 sentences)

My interpretation in my quick ratio, current ratio, debt to equity ratio and debt ratio has undetermined answers because the accounts payable
and total liabilities is zero. But, in my gross margin my answer is 1.28:1, I come up with this answer by dividing my gross margin ratio to my
sales. In my profit margin ratio I divided my net income to sales and the result is 2.45:1, it gain a profit. Lastly, in my return on asset ratio, I
divided my net income and total asset to get the 0.49:1 answer.