MODULES FOR KIDS WHO BELIEVE THAT success Is Aways SELF - DIRECTED. Saint Joseph, Vicar of the Holy Spirit in fulfilling the duties of your wonderful marriage with Mary, introduce the Holy Spirit to my will in order to ignite it with God's holy love. Present my will to the Most Holy Trinity so that my desires may always be at God's disposal. Offer my Heart to God so that He may dwell it in as on a throne of love and mercy, Present the movements of my soul and all the affections of my heart to God so that through your intercession | will always be faithful to the grace and inspirations of the Holy Spirit. Amen. Name of Student: ““v _°~ Learner’s Reference Number: Grade & Section: Subject : 11- FUNDAMENTALS OF ABM1 Subject Teacher: MR. CARL LESTHER ADOR DIONISIO GRIT MODULE NO. 3 ‘ Date Received: / /2022 Date Returned: / /2022GRIT MODULE NO. 3: INTRODUCTION TO ACCOUNTING AND THE BASICS Greetings in the oneness of heart of Jesus and Mary! Good day to you young corporate professional! How are you? We are now on our last module for this school year. To enlighten us about our topic, let us explore this grit module. But before that, let us request for the guidance of our Lord throughout our discussion for this module. (Pray the Prayer of Blessed Bartolo to St. Joseph) For this module, I would like you to read and understand these blueprint-like standards, goals, and targets as these will be the bases for the success of your module completion. Learning Standards: You will understand the accounting cycle of merchandising business to include the following: journalizing of transactions using the general and special journals, namely: sales, journal, purchase journal, cash receipts journal and cash payments journal, posting to the ledger namely: general and subsidiary ledgers, preparations of trial balance; adjusting entries to include pre payments, accrual and deferral, worksheet preparation, and completing the accounting cycle of a merchandising business to prepare journal entries, post to the ledger, prepare the trial balance, worksheet, adjusting entries and complete the accounting cycle of a merchandising business. Compassion Formation: You are expected to become more productive and empowered citizen who elicits a stronger sense of creativity, problem solving, accountability, accuracy, management and organization skills, environmental literacy, _ ethics, collaboration, trustworthiness, and reliability. apg 2 212 1° ke cto tn ster Fanon, Tee ees a totenetyavaen GRIT MODULE No.3 in FUNDAMENTALS OF ABM1 | 1 } ‘kcomcormechncel wihoawiterpemasen ete ariNow, read these learning targets. These will tell you what specific knowledge and skills you need to master for the entire week. Targets: Day 1-4: © Describe the nature of transactions in a service business e Record transactions of a service business in the general journal posts transactions in the ledger prepares a trial balance © Prepare adjusting entries © Complete the accounting cycle describes the nature of transactions in a merchandising business © Record transactions of a merchandising business in the general and special journals © Post transactions in the general and subsidiary ledgers © Prepare a trial balance prepares adjusting entries e Prepare the Statement of Cost of Goods Sold and Gross Profit Kindly ask the help of your parents to produce the following: 1. Reference book 2. Pen and sheet of paper 3. Laptop or mobile phone (if available) 4. World Book Online (Usemame: OLSHCO2021 Password: olshco@2022) Iam expecting that you will be able to: 1. answer all questions and activities provided in the module in good faith; 2.study the concepts, and practice exercises in your reference book; and 3. read a lot of additional resources. It'll help. Make it a habit. I am also expecting that your parent/guardian/ or whoever is assisting you at home will (Inaasahan ko na ang iyong Conga © 221100 se al anata Spt Ford Ine ACES) Alii esr Nort prion ha mode may te reproduced copied o toner nay frm by oy mean GRIT MODULE No. 3 in FUNDAMENTALS OF ABM 1 | scree mechan sos we prac of te ora eanmagulang/tagagabay/ o kung sino man ang gumagabay sa iyo sa inyong tahanan ay): 1. provide all the materials you need for this module (maibibigay sayo ang mga kinakailangang kagamitan para sa modyul na ito), 2. assist you when you are answering the module (gabayan ka sa pagsagot sa modyul), 3. give you enough time in learning the content of the module and (bigyan ka ng sapat na oras sa iyong aralin at) 4.involve themselves in every conversation you will have (makilahok sa bawat talakayan kung kinakailangan). @.. uired video material/s: ote of Internet: /_ -None 7 a - None ___ - Kindly visit YouTube and a visit the link found on this module. _L_ - Optional, for enrichment ___- Teacher-made video Purposes ___- Minimal use is required Day 1-4 Hello dear achievers! We will now explore another learning journey in Fundamentals of Accountancy, Business and Management |. Let’s get started. ACCOUNTING FOR MERCHANDISING BUSINESS A merchandising business is one that buys and sells goods in their original form and without any further processing. Those goods are referred to as merchandise inventory (or simply, inventory). Inventory Systems a. Perpetual inventory system — under this system, the “Inventory” account is updated each time a purchase or sale is made. Thus, the “/nventory” account shows a continuing or running balance of the goods on hand. See _ SASS SS ee SSS ournonuiesssiruxanexrasor amt {5 |b. Periodic inventory system — under this system, the “/nventory” account is updated only when a physical count is performed. Thus, the amounts of inventory and cost of goods sold are determined only periodically. Beginning inventory Pxx Add: Net purchases “ x Total Goods Available for Sale (G09) Less: Ending inventory (physical count) (x) Cost of Goods Sold Pex “ “Net purchases” is computed as follows: Purchases Pxx Add: Freight-in x Less: Purchase returns (xx) Less: Purchase discounts (x) Net purchases Pax Accounts used under Periodic System * Purchases — the account used to record purchases of inventory under the periodic system. + Freight-in (Transportation-in) — the account used to record the shipping costs incurred on purchases of inventory under the periodic system. * Purchase returns — the account used to record returns of purchased goods to the supplier. * Purchase discounts — the account used to record cash discounts availed of on the purchased goods. apy © 228° eto xtra te Fanon _ Ata Anos Nout trait!" GRIT MODULE No. 3 in FUNDAMENTALS OF ABM {4 ] chcvonrmechoncl wan wept 6 OP osPerpetual system Periodic system = Physical count is performed only to check the accuracy of the ledger balances. = Physical countis necessary to determine the balances of inventory on hand and cost of goods sold. = Does not require the use of = Requires the use of the any formula to determine following formula when cost of goods sold because determining cost of goods this informationis readily sold: available from the ledger. BI xx Net purchases xx TGAS xX EI physical count) (xx) cocs 2x Perpetual system Periodic system = Physical countis performed | * Physical countis necessary only to check the accuracy to determine the balances of of the ledger balances. inventory on hand and cost of goods sold. = Does not require the use of any formula to determine cost of goods sold because this informationis readily available from the ledger. = Requires the use of the following formula when determining cost of goods sold: BI x Net purchases xx TGAS xx El (prysical count) (20%) cocs x ‘anyran © 22150 oe ato aoe! Ser Fount Ine (ACES) igs Resenea Nope erprton es mele) ereposes cope secon or mecha wie wien semitone Ae coytoh 2 tose man for 0 any meos, GRIT MODULE No.3 in FUNDAMENTALS OF ABM 1 {Gross Profit Netsales Px Less: Cost of Goods Sold (x) Gross profit Pex Nes = sein Cost of Goods Sold (xx) Gross profit oo Rent expense (xx) Depreciation expense (x) Profit=Netaales: Salaries expense, etc. Gos) LZ ins All expenses. Profit (Net profit) Prx Sales Pxx Less: Sales returns (xx) Less: Sales discounts (xx) Net sales Pxx Sales — include both cash sales and credit sales. Sales returns — the account used to goods sold but were returned by customers. Sales discounts — the account used to record cash discounts given to and taken by customers. apie 021s a ne ato raf, (= Aas anata nownes sat wenean 75887 GPT MODULE No.3 in FUNDAMENTALS OF ABM 1 ao a eeSTATEMENT OF COST OF GOODS SOLD AND GROSS PROFIT Your Bar Statement of Cost of goods sold and Gross profit For the period ended December 31, 20x1 Sales P16,660 Cost of goods sold: Beginninginventory 1,000 Add: Net purchases 4,800 Total goods available for sale 5,800 Less: Ending inventory (1,040) (4,760) Gross profit 11,900 Let's check your understanding. TRUE OR FALSE Directions: Write TRUE if the statement is true, FALSE if otherwise. Write your answer on the space provided. \rrone 1. Inventory refers to the goods that a merchandising business has purchased with the main intention of| reselling them. ww 2. The periodic inventory system is commonly used for inventories that are normally interchangeable, have relatively low value, and have a fast turnover rate. yanhsve_wi’8, Under the perpetual inventory system, increases and decreases in inventory are recorded through the purchases, freight-in, purchase returns, and purchase discounts accounts. Sew 4. Under the perpetual inventory system, cost of goods sold is debited when inventory is sold and credited when there is a sales return. Ir aa arn ners pete’ GRIT MODULE No. 3 in FUNDAMENTALS OF ABM | 7 |swe 5. Purchase returns and discounts are deducted from gross purchases when computing for net purchases. ne 6. Ending inventory is added to Total Goods Available for Sale when computing for Cost of Goods Sold. bane 7. Under the perpetual inventory system, the business does not maintain records that show the running balances of inventory on hand and cost of goods sold as at any given point of time. acd wer"8, Under the periodic inventory system, all increases and decreases in inventory, such as purchases, freight-in, purchase returns, purchase discounts, cost of goods sold, and sales returns are recorded in the Inventory account. 9. Beginning inventory /ess Net purchases Jess Ending inventory equals Cost of goods sold. ee 10. No entry is made to recognize cost of goods sold when inventory is sold under periodic inventory system. Good job! Great! This will be the end in answering our module in Fundamentals of ABM1. This is also your last module for the 4" quarter. I hope you learned a lot from it and you can apply it in real life situations. Before we end, I want you to accomplish the given activity. iG SYNTHESIS For days 1-4... I can describe the nature of transactions in a merchandising business through Wa porchonbhnny cio Luompattain Yu sellers sls rob end Syenttors Ae Lawl gerership of Ve gotdy us He eget t - ihe cna as _ Ce ee aie race tenet rororel erect’ GRIT MODULE No.3 in FUNDAMENTALS OF ABM 1 [ i: } ees aI can record transactions of a merchandising business in the general and special journal through he Bed hey rors We uverne Prom De tthe ab phy sellin ame end he cwand eAery Jeeemtig, Vir ceeantomy quant ond HuIMIG Ve_empunny ob Phe ate_ust I can post transactions in the general and subsidiary ledger through wbieiea) bemnytahiny om narbd bwedhty ibe Hen I can prepare trial balance through Ye gre oboe ee ve atl ewud the dlegng Welt oP He agin * Warp snubs I can complete the accounting cycle of a merchandising business Tenpne Vou fennial ehimnhe vee even adetuant & petmaed Wane folie shoot god lohan ge Usk Ploed I can prepare the Statement of Cost of Goods Sold and Gross Profit orally nigh uty Ye duhnony de unk uP pede sold Sa ceampe uray gk ve sy end ead Me ern pur led wilh) Ae Pets 1 LOGE = roweny verbo 4 addchionl quunhy =A een tery ony 020110 as cae toon! sem so, Siteatce ped enimed nan fareerspan nese GRIT MODULE No, 3 in FUNDAMENTALS OF ABM 1 site ormechontl wt arteprmionef te gtNote: This part is for your Consolidated Test in Fundamentals of ABMI. Please read and understand the given situations/scenarios. Answer the questions thoroughly. Thank you. Multiple Choices Directions: Choose the best answer and encircle it. 1. Expenditures for items that are expected to be used by the business for more than one year are also called @. capital expenditures. b. period costs. c. accrued expenses, d.capital. 2. The first step in the accounting cycle is @ posting to the ledger. b.journalizing. c. preparing the adjusting entries. d.analyzing events 3. Credit is on which side of an account? a. Right b. Left c. Top (d.Bottom 4, A debit may signify an increase in a. liability account. b.asset account. c. revenue account. (A.liability and revenue account. 5. Which of the following accounts is increased by a credit? a.Cash b. Accounts receivable (eT ahem rate ene me” GEE MODULE No.3 in FUNDAMENTALS OF ABM 1 {10 amie sen rene rece i(@. Accounts payable d.Owner’s drawings Instructions for the next ten (10) questions: Choose the letter corresponding to the correct account titles used in recording each of the transactions being described. 6. During the year, you started a sole proprietorship business. You invested PHP 10M cash to the business. a. Accounts receivable Owner’s drawings BiCash Owner’s capital c. Cash Investment expense d.Owner’s capital Owner’s drawings 7. The business acquires equipment for P6M cash. a. Equipment Owner’s capital b. Equipment Accounts receivable c. Owner’s capital Equipment d. Equipment Cash 8.The business recognizes depreciation of P250,000 on the equipment. a. Prepaid supplies Equipment b. Depreciation expense Accumulated depreciation @ Depreciation expense Equipment d.Equipment Accumulated depreciation 9. The business purchases inventories for P2M cash. a. Inventory Owner’s capital b. Inventory Sales (© Inventory Cash d.Cost of sales Freight out epg 0221470 then ten Fart, eater res sore creer ese" GRIT MODULE No. 3 in FUNDAMENTALS OF ABM 1 {11 korontormchonce wo wie Semen ear10. The business makes a P3M sale to a customer who orally promises to pay for the purchase price after 30 days. (@. Accounts receivable Sales b. Accounts receivable Owner’s capital ¢. Cash Sales d.Cost of sales Accounts receivable 11. The business pays P1M rent in advance. ([email protected] expense Rent payable b. Prepaid rent Accounts payable c. Prepaid rent Cash d.Rent expense Owner’s drawings 12. The business spends P1M in marketing and promoting the products. a/ Advertising expense Owner’s capital b. Advertising expense Cash c. Accounts receivable Equipment d.Accounts payable Cash 13. The business collects P3M accounts receivable from a customer. @.Cash Accounts receivable b.Cash Accounts payable c. Accounts receivable Sales d.Cash Sales 14. The business purchases inventory costing P900K on account or on credit. a. Cash Accounts payable &. Inventory Cash c. Inventory Accounts payable d.Accounts payable Owner’s capital cory 0201 rc osetia, tcwpredied opie tonamted nsnyfermertyenymeae GRIT MODULE No. 3 in FUNDAMENTALS OF ABM1 | 12 ‘hci creche ten pemison of coy15. The business pays accounts payable of P900K. a. Cash Sales b. Inventory Cash (@ Inventory Accounts payable d. Accounts payable Cash 16. Obtaining a loan results to a.an increase in asset but a decrease in liability. b.a decrease in asset but an increase in liability. c. increase in both asset and liability. (d-decrease in both asset and liability. 17. Liabilities, owners’ equity, and income are (a. decreased by credits and increased by debits. b. decreased by debits and increased by credits. c. decreased by both debits and credits d.it depends on the situation 18. The general ledger account that summarizes the detailed information in a subsidiary ledger is known as a a. summary account. b.controlling account. (c. balance sheet. d.any of these 19. If total assets is P100 while total liabilities is P80, owner’s equity must be (CaP 180 b.P120 c. P20 d.My calcu is low bat 20. A business sells goods in Year | but collects the sale price only in Year 2. According to the accrual GRIT MODULE No. 3 in FUNDAMENTALS OF ABM 121. 22. 23. 24, basis and time period concepts, the business should include the sale in its income statement in a. Year 1. 6 Year 2. c. Year 3. d.Every year Debit and debit result to (a. addition. b. deduction. c. multiplication. d.two debits. Which of the following accounts is increased by debiting it? a. Accounts payable b. Equipment ales -Accumulated depreciation At the beginning of the period, Entity A’s notes payable had a balance of P1,200. During the period, Entity A obtained an additional loan of P800 and made total payments of P500. How much is the ending balance of Entity A’s notes payable? a. 1,800 b.1,500 c. 1,200 (4.900 Which of the following is not a special journal? (a?General Journal b. Sales Journal c. Purchase Journal d. Cash Receipts Journal GRIT MODULE No. 3 in FUNDAMENTALS OF ABM 125. 26. 27. 28. A business sells goods on cash basis. This transaction is most likely recorded in which of the following special journals? Sales journal . Purchases journal c. Cash receipts journal d. Diary journal Which of the following special journal is used when a business purchases inventory on cash basis? a. Cash disbursements journal b. Purchases journal c. Inventory journal @Cash receipts journal The beginning balance of “Cash” is placed on which side of the T-account? (a)Left side ‘B Right side c. Bottom side d.Every side Imagine you are a business manager. Your company has an opportunity to venture out into a new market with a new product. However, your current resources are limited. In order to take the opportunity, you need to discontinue the production of one of your existing products. Your company’s accountant provided you with the following information to help you decide which product to discontinue. ProductA — Product B ~~ Product C Net sales (income) 5,000,000 3,500,000 2,100,000 Attributable costs (expenses) (4,800,000) (2,275,000) (630,000) enya © 02110 ste Cae Esa Ine CES, Ai = iu MODULE Ne Sn FUNDAMENTALS OF ABN [35Which product will you most likely consider to stop producing? a. Product A b. Product B c. Product C (@All them 29. If the ending balance of accounts payable is P100,000 and the total debits and credits to that account during period were P60,000 and P40,000, respectively, the beginning balance must be a.0 b. 20,000 (80,000 d. 120,000 30. A business has total assets of P640,000 and total equity of 360,000 at the beginning of the period. The business earns income of P220,000 during the period and reports profit of P80,000. There were no transactions with the owner during the period. Total liabilities increased by P40,000 by the end of the period. How much is the total assets at the end of the period? a. 560,000 (8. 440,000 c. 860,000 d. 760,000 Use the following information for the next three questions: Entity A started operation on November 1, 20x1. The following were the transactions during the month: Noy. 1, _ The business owner provides P2,000,000 cash 20x1 _as investment to the business. GRIT MODULE No. 3 in FUNDAMENTALS OF ABM I [:Noy. 5, — Entity A obtains a P500,000 loan and issues a 20x1 promissory note. Nov. 8, — Entity A acquires land costing P 1,000,000 on 20x1 cash basis. Nov. 16, Entity A renders services worth P1,200,000 on 20x1 account. Nov. 30, 20x] Entity A pays salaries expense of P280,000. 31. How much is the total assets at the end of the period? (Hint: use the basic accounting equation) a.4,320,000 b.3,840,000 @ 3,420,000 d.2,980,000 32. How much is the total liabilities at the end of the period? (a.500,000 b.520,000 c. 580,000 d.680,000 33. How much is the equity at the end of the period after taking into account income and expenses? 2,920,000 b.2,980,000 c. 3,120,000 d.3,280,000 34. On January 1, 20x1, Johnny Company acquires a building for PIOM. The building is estimated to have a useful life of 20 years. How much expense is recognized in 20x1 in relation to the building? a. 10,000,000 GRIT MODULE No.3 in FUNDAMENTALS OF ABM 1 | 17 conyian © 20211001b. 1,000,000 (¢. 500,000 d.0 35. Who invented the calculator? a. Jose Rizal b. Justin Bieber c. Taylor Swift (d;Blaise Pascal Part 2 1. The main purpose of accounting is (@.to account for money so it will not be lost. b.to provide information that is useful in making economic decisions. c. to safeguard the assets of a company. d.to provide a clear view of the industry’s econ 2. This branch of accounting focuses on catering to the information needs of external users. @ Management accounting b. Financial accounting c. Auditing d.External accounting 3. Entity A’s income statement shows a line item described as “Cost of goods sold.” Entity A is most likely a (a)service business. b. merchandising business. c. sole proprietorship business. d.partnership business. 4.Under this concept, the business is treated separately from its owners. a. Separate entity concept ® Historical cost concept mates enasatacveniaronaas, Ne ees AiRehapeenestorotprore/snse4 02 GRrT MODULE No.3 in FUNDAMENTALS OF ABM 1 (=) Seesc. Going concern d. Matching principle 5. Which of the following statements regarding owner’s capital is not valid? a. It is increased by investments to the business by the owner. b. It is increased by income earned by the business. (It is increased by distributions to the owners (drawings by owners). d. It is decreased by expenses incurred by the business. 6. Which of the following is a purpose of preparing an unadjusted trial balance? @e facilitate the preparation of the financial statements . to provide reasonable assurance that all accountable events are recorded c. to facilitate the preparation of adjusting entries d. to provide reasonable assurance that all nominal accounts are zeroed-out 7.Which of the following does not describe an advantage of a partnership over the other forms of business organizations? “Two heads are better than one.” The more the merrier.” c. Making business decisions may give rise to conflict among the partners. d.Sharing of risk. 8.Entity A has accounts receivable of P500,000 and a related allowance for bad debts of P120,000. How much is the carrying amount of the accounts receivable? a. 620,000 (6, 500,000 c. 480,000 d. 380,000 Instructions for the next twelve (12) questions: Choose the letter corresponding to the correct journal entry for each of the transactions described. GRIT MODULE No. 3 in FUNDAMENTALS OF ABM | 199. Owner’s cash investment to the business. Debit Credit ‘ay Cash Owner’s capital .Cash Owner’s drawings c. Owner’s capital Cash d.Cash Sales 10. Acquisition of equipment on cash basis. Debit Credit a.Cash Equipment b. Expense Cash (©. Equipment Cash d.Equipment Owner’s capital 11. Acquisition of inventory on cash basis Debit Credit a. Inventory Accounts payable b Expense Cash c. Inventory Cash d.Cost of sales Cash 12. Acquisition of inventory on credit. Debit Credit (ajInventory Accounts payable . Accounts payable Inventory c. Accounts payable Cash d.Cost of sales Accounts payable 13. Payment (settlement) of accounts payable Debit Credit (a. Inventory Accounts payable Cash Accounts payable c. Accounts payable = Cash d.Cost of sales Inventory 14. Sale of inventory on cash basis Debit Credit a. Inventory Sales GRIT MODULE No. 3 in FUNDAMENTALS OF ABM Ib.Cash Accounts receivable c. Cash Sales (AiCost of sales Cash 15. Sale of inventory on credit Debit Credit (@ Cost of sales Sales b.Cash Accounts receivable c¢. Cash Sales d.Accounts receivable Sales 16. Collection of accounts receivable Debit Credit a. Cost of sales Sales (BCash Accounts receivable c. Cash Sales d.Accounts receivable Sales 17. Payment of advertising expense Debit Credit a. Advertising expense Cash (b.Cash Advertising expense c. Cash Advertisement payable d.Advertising expense Accounts payable 18. Owner’s drawings (owner’s withdrawal of cash from the business) Debit Credit a. Drawings expense Cash b.Cash Owner’s drawings c. Owner’s drawings Cash (,Cash Owner’s capital 19. Recognition of depreciation Debit Credit a. Depreciation expense Cash b. Depreciation expense Equipment oprah © 202150 ee ato aot! Sater esto Ine ACES) igh ere reap GRIT MODULE No. 3 in FUNDAMENTALS OF ABM 1 | >: |c. Depreciation expense Accumulated depreciation (4-Accumulated depreciation Depreciation expense 20. Recognition of bad debts Debit Credit a. Bad debts expense Cash b.Bad debts expense Accounts receivable (©Bad debts expense Allowance for bad debts d.Allowance for bad debts Bad debts expense 21. In a worksheet, which of the following is prepared after the unadjusted trial balance? a. Adjusted trial balance columns b.Income statement columns c. Adjusting entries columns (q.Balance sheet columns 22. If total debits exceed total credits in the balance sheet columns of a worksheet, there is (a profit. b. loss. c. owner’s drawings. d.an error. 23. Adding amounts horizontally in a worksheet is called Q. Footing b.Cross-footing c. Cross-legging d.Nosing 24. Which of the following is not a correct expanded accounting equation? @ Assets = Liabilities + Equity + Income - Expenses b. Assets + Expenses = Liabilities + Equity + Income c. Assets — Liabilities = Equity + Income - Expenses d. Assets = Liabilities + Equity + Income + Expenses copyright 0 20210 Ine ACES) AN Rg Ree GRIT MODULE No. 3 in FUNDAMENTALS OF ABM 125. The financial statement that shows information on assets, liabilities and equity is the (@ balance statement. b. income sheet. c. balance sheet. d.income statement. 26. This represents the unused portion of rentals that have been paid in advance. a. Prepaid rent b.Travel expense (Rent expense d.Cost of sales 27. At the beginning of the period, Andy had a cash balance of P20,000 and a notes payable of P15,000. During the period, Andy collected P11,000 accounts receivable, paid P8,000 notes payable, and issued additional notes payable of P5,000 in exchange for cash. How much are the ending balances of cash and notes payable, respectively? Cash Notes payable a. 17,000 20,000 (b.20,000 12,000 c. 28,000 12,000 d. 36,000 20,000 28. The balance of accumulated depreciation in Entity A’s unadjusted trial balance is P100,000. If the adjustments columns in the worksheet show a debit adjustment of P20,000, how much is the balance of accumulated depreciation that is extended to the adjusted trial balance columns of the worksheet? a. 80,000 b. 100,000 120,000 d.0 Copytgh © 202110 ose ato eatin GRIT MODULE No. 3 in FUNDAMENTALS OF ABM 1 | 2329, When preparing closing entries, which of the following accounts is debited when closing to the “/ncome summary” account? (a. Depreciation expense . Owner’s drawings c. Sales d.Salaries payable 30. If the “/ncome summary” account has a credit balance after all income and expense accounts are closed, there is (a. profit. b. loss. c. owner’s drawings. d.an error. 31. Which of the following adjustments can be reversed in the next accounting period? a. Adjusting entry to take up depreciation expense (b) Adjusting entry to record bad debts expense c. Adjusting entry to record accrued interest income d.All of these 32. Which of the following is not an adjusting entry? a. An entry to take up bad debts expense at the end of the period. b. An entry to take up depreciation expense for the period. (An entry to recognize interest expense for the period. d.An entry to record the cash acquisition of equipment. 33. Entity A received a 12%, P200,000, one-year, note receivable on October 1, 20x1. Entity A uses a calendar year period. The principal and interest on the note are due on October 1, 20x2. How much is the interest income to be accrued on December 31, 20x1? a. 24,000 (b, 12,000 ppg © 22 See Cate xr Sem Fanon Ine! AIR eres Nope parte mada Moy trroasent cnr ern oy fom oy ey mens etroncormechonto abo wienpemisn of hoya GRIT MODULE No. 3 in FUNDAMENTALS OF ABM 1 | 24c. 6,000 d.0 34. Accounts are listed in the trial balance in this sequence. a. Asset, Liabilities, Equity, Expense, and Income b, Asset, Equity, Liabilities, Expense, and Income Asset, Liabilities, Equity, Income, and Expense |. Asset, Expense, Liabilities, Equity, and Income 35. At the beginning of the period, a business has a cash balance of 20,000. During the period, total cash collections and total cash payments amounted to P100,000 and P70,000, respectively. How much is the ending balance of cash? @ 10,000 b. 30,000 c. 50,000 d. 70,000 36. At the beginning of the period, a business has accounts payable of P200,000. During the period, the total debits and credits to the accounts payable account were P100,000 and P70,000, respectively. How much is the ending balance of accounts payable? a. 230,000 b. 170,000 © 370,000 d.30,000 37. At the beginning of the period, the owner’s capital account of a business has a balance of P220,000. During the period, the total debits and credits to that account were P60,000 and P70,000, respectively. How much is the ending balance of the owner’s capital account? (@, 230,000 “p.210,000 ‘copyright © 2021100 se cao Eco stem Fovdtion, GRIT MODULE No. 3 in FUNDAMENTALS OF ABM1 | 25c. 350,000 d. 90,000 38. If the ending balance of accounts receivable is 100,000 and the total debits and credits to that account during period were P60,000 and P40,000, respectively, the beginning balance must be a.0 b. 20,000 c. 80,000 (4)120,000 39. The equipment of ABC Co. has a historical cost of P500,000 and an accumulated depreciation of P120,000. How much is the carrying amount of the equipment? (a. 620,000 b.500,000 c. 480,000 d.380,000 40. Imagine you are a business manager of a manufacturing company. Your company’s manufacturing process involves four (4) stages. The first stage takes most of the manufacturing time and costs and is the bottleneck (i.e., obstacle, hindrance or handicap) in the manufacturing process. The demand for your product is high and your company can sell all that it can produce. Your predicament now is your productive capacity. You want to streamline the first stage and came up with two proposals. Each of those proposals decreases the manufacturing time but entails additional costs, such as additional investment in new machines and employment of additional personnel. Your accountant prepared the following cost analysis to help you decide which of those proposals to implement: GRIT MODULE No. 3 in FUNDAMENTALS OF ABM 1Existing set-up Proposal #1 Proposal #2 Units of production 4,000 4,400 5,300 ‘Manufacturing time (in days) 40 a ‘a Asteareble.caste 1,000,000 1,249,600 1,346,200 Sale price per unit 450 450 450 So, what is your decision? (Hint: Prepare pro-forma statements of profit for each of the proposals, including the existing set-up.) a. Implement Proposal #1 b. Implement Proposal #2 c. Retain the existing set-up d.This is too difficult for me. I’m quitting my job. Hooray! You did well on our activities. I hope you learned a lot about FABM1. But wait, I want you to assess yourself using the Self-Assessment Checklist below. Self-Assessment Checklist SKILLS I can describe the nature of transactions in a service business T can record transactions of a service business in the general journal posts transactions in the ledger prepares a trial balance _{1 can prepare adjusting entries T can complete the accounting cycle describes the nature of transactions in. a merchandising business t _ can record transactions of a merchandising business in the general and special journals |} can post transactions in the general and subsidiary ledgers [can prepare a trial balance prepares adjusting entries I can prepare the statement of cost of goods sold and gross profit -Therefore, learned well and good. -Therefore, I need more practice so I can do better next time. “Ie ony © 121190 cata atone osteo ee ee ee rete weec” GRIT MODULE No.3 in FUNDAMENTALS OF ABM1 | 27 secre mchnot wahoo prmaao ft oroIhave a question/s or clarification/s Teacher! In this GRIT module, the concept that I did not fully understand Isic WITNESSING As a witness of the oneness of heart of Jesus and Mary, I have a grace-filled accountability to ... CONNECTING WITH THE VISION AND MISSION Inspired by the oneness of heart of Jesus and Mary, this lesson helped me to develop ‘enynan © 202109 Joe ete aeolian Foundsten GRIT MODULE No. 3 in FUNDAMENTALS OF ABM 1 | 29 tector mechan thot wen pansion of he Coy‘This part is for the parent or the attending adult: Kindly write some of your observations on your child's learning/study habits this week. Include also your suggestions or if you have questions, feel free to write them on the space provided. Observations: Question (if there’s any): Suggestion/s: Cellphone number: Teacher’s Remarks Kindly consider my recommendations for your improvement in this module. I have checked the particular points that you need to address. Thank you. © I 0 “mn Required Compliance 1 | Complete all required information on the front page. 2 Do not forget to pray before and after accomplishing this module. 3 | Always read the expectations of this module from your parent Take more engaged time to read the content of the entire module 4 | with a learning disposition that is discipline-sensitive and | success-oriented | Complete all their activity/formative assessment boxes. Redo 5 | activity/formative assessment box/es on page/s 6 | Some parts are copied. Avoid doing this next time. Write all your entries legibly. As much as possible avoid too many erasures/alterations. Keep your module neat. | Use your own handwriting all throughout the module. I do not expect your parent or guardian to accomplish this module. ‘canyon © 20210 le cata cational system Found Ine (CES Align Reserved Nopatorprton efoto? . : serepevied cape ar vonmitesinonyfam cr byonymeans, GRIT MODULE No, 3 in FUNDAMENTALS OF ABM 1 | 25 ent mechan wot wien person afte coyigh9 | Be careful with your spelling. 10 Optimize the use of your reference books/suggested materials. This surely contributes to your success in this module. Your teacher has a plagiarism checker. Please make your work original. Cite your references whenever applicable or necessary. Let your parent/guardian engage in some conversation points found in this module. On learning synthesis: Rewrite your learning summary taking into consideration the attainment of stated learning competencies. On witnessing and connecting to the vision and mission: Rewrite your Christian reflection mission as an empowered Olshconian | whose values are anchored to Filial Compassion, Leadership and | Accountability, Mary inspired obedience and Enduring} Discipleship. Participate prompily in your monitoring classes through your assigned group chat and online engagement sessions. This module will be part of your portfolio which your will submit towards the end of the quarter. Keep it responsibly. Over-all Rating: Beginning-Demonstrate an initial understanding of the concepts and competencies relevant to the expected learning. Developing- Demonstrate a partial understanding of the concepts and competencies relevant to the expected learning. Proficient- Demonstrate a complete understanding of the concepts and competencies relevant to the expected learning. ‘Advance- Demonstrate a sophisticated understanding of the concepts and competencies relevant to the expected learning. Teacher’s Signature over printed name Date ‘onyigh © 202: 10 ne Cate Etscatoalsem Founin Ine ACES Align eserves. Nopotorgariane Mme nay - (entjoaues pes ertonnites nanyfonsartyaynces, GRIT MODULE No.3 in FUNDAMENTALS OF ABM 1 | 30 leant of mene thee pm hootThis module is referenced WITH PERMISSION in the Fundamentals of Accountancy, Business and Management Part 2 of MR. ZEUS VERNON B. MILLAN, a renowned CPA Reviewer and a brilliant author of many accounting books. HOME MODE REMINDERS! . Eat a balanced diet and on time. Vegetables, fish, and fruits are always the best! nv . Drink plenty of water. » . Wash your hands properly. - . Participate in household activities. Keep your room clean and orderly. w . Take time to have a little physical exercise like jogging, brisk walking, running, etc. with any member of your family. 2 . Connect with your friends and classmates. 2 . Plan your day. Balance learning, play, and prayer, and reflection time. 8. Keep safe always especially when you go out. 9. Continue to practice waste segregation. 10. Play basketball. Cook. Create artworks. Do gardening... There’s so much to do. You have all the reasons to be productive. 11. Be updated on current events. Trust only credible sources of news and information. nytt 0202470 cate txt! tem Fanon — tse or ert GRIT MODULE No, in FUNDAMENTALS OF ABM1 | 3: | ‘cron econ) wou wept fe arn ==erence te ptameahe eres nator ce tt memenamaaincssamsinan, ” ai fj f iigut ® geationtt eit § ’ yi nnd sige ED fies wants antl, tae i ' AR HAN 1S Derg Ah AE f AGH i 7 . *e . AUN PAG MEN aul rag / fa re teil? Lasel . ‘ j “aia iq | { ier ¥ ¥ ite solu aed O1 oe 1 ‘ gig Veh Yt ng ie ota gation - a eeaOrTl Hie UN Koa 1 som ul og mitt Srriit nous é vlisinanes 2zewis The quad f BA At mameme e eT Syliv sitions vizier i ’ ue 10. byibge 96 oe ° amd wins 7 AAR CAMS whee *