Professional Documents
Culture Documents
st
1 sem AY 2018-2019
The trial balance of Mariana Bookstore, owned by Mr. Woo, on October 31, 2018
Transaction for the Mariana Bookstore for the month of November 2018:
Nov 2 Purchased merchandise on credit from Digos Publishers, term 2/10 n/30, FOB destination,
P74,000
3 Sold merchandise on credit to De Joya Bookshop, terms 1/10 n/30, FOB shipping point, P10,000
6 Purchased and received merchandise on credit from Mumuso Bookstore, terms 2/10 n/30 FOB
shipping point, P42,000
7 Received Freight Bill from Super Go from shipment received on Mar 6, P570
9 sold merchandise on credit to Rico Books, terms 1/10 n/30, FOB destination P38,000
10 Purchased merchandise on from Dimo Publishers, terms 2/10 n/30 FOB shipping point, P26,500
including freight costs P500
14 Paid Mumuso Bookstore half the amount owed on the Mar 6 purchase. A discount is allowed on
partial payment
15 Returned faulty merchandise worth P3000 to Dimo Publishers for credit against purchase of Mar 10
16 Purchased office supplies from Olamit Supplies for P4780 terms n/10
17 Received payment from Rico Books for half of the purchase of Mar 10, A discount is allowed on
partial payment
18 Paid Dimo Publishers in full for the amount owed on purchase of Mar 10, less return on Mar 15
19 Sold merchandise to Mamu Sir Trading on credit, terms 2/10 n/30, FOB shipping point P7800
20 Returned for credit several items of office supplies purchased on Mar 16, P1280
27 Received payment of amount owed by Mamu Sir for purchase of Mar 19, less credits of Mar 22
a. Salaries payable as of October 31 was paid on December 1, 2018. Salaries of P21,000 have
accrued as at Dec. 31,2018.
b. Depreciation on the office equipment and store equipment amounted to P15,000 and 20,000,
respectively.
c. Rental payments for the year is P120,000, half is allocated for General expenses and the other
half is for selling expense. 3/4 of the total amount was already recorded as of October 31.
d. Supplies consumed during the year amounted to P3,100
e. Mr Woo, already paid a cumulative amount of 12,300 for the last 3 quarters. He received 30,000
dividends from domestic corporation.
f. His external auditor is Lopez, Ayala and Co. Headed by partner Mrs. Tina Maan with Lic. No.
1234, TIN 123-456-789-000 BIR Accreditation Number 02-232345-123 Issue Date 1/12/18 Expiry
1/12/21
g. Mr. Woo is married with 2 daughters, X who is 18 and Y an 11 year old. His wife is a plain
housewife.
REQUIRED: Assuming the only transactions for the year are the ones provided above,
a. Prepare journal entries
b. Prepare a worksheet (from unadjusted trial balance to balance sheet column)
c. Prepare financial statements (except notes to financial statements)
d. Fill-up the BIR Form 1701, use the BIR 2303 for other information needed (CERTIFICATE
OF REGISTRATION- Info provided are non-factual)
e. Compute for the income tax due and payable if this is taxable year 2017. Compute in a
separate sheet of paper. (COMPUTATIONS ONLY)
f. Using the data above, except letter e, what will be the income tax due and payable if
the following data are provided: Compute in a separate sheet of paper(COMPUTATIONS
ONLY)
Income from employment, net of CWT 180,000
CWT for compensation 12,000
Rental Income, net of withholding 250,000
Interest income on personal loan 6,000
Royalty income 90,000
Lotto winnings 150,000