ACCOUNTING EXAM

Company X is engaged in a trading business, an importer and a contractor and builder. The
company purchased construction equipment from Singapore worth P 1,000,000.00 purchase
price is USD 20,000 @ 50.00 purchased merchandise from Malaysia amounting to P 2,
000,000.00. Total quantity received is 5,000 units. Company X pays P 90,000.00 for custom
duties and P 300,000.00 for the VAT. Incurred additional expenses for freight and handling of P
150, 000.00 and P 75, 000.00 for miscellaneous generated sales for the month is P 997,500.00.

Company X entered into a contract of P 50, 000,000.00 for the construction of roads.
Manpower is needed for them to mobilize and the amount of expenses per month is as follows:
a) Payroll P 250,000.00
b) Supplies 15, 000.00
c) Materials 1,000,000.00
d) Rent 75,000.00
e) Miscellaneous 10, 000.00
_________
TOTAL 1,350,000.00

A certain amount for mobilization was advanced by the company from PDWH in the amount of
P 7.5M.after a month the company reported an accomplishment of 10% of the contract, this
represent the 1st billing due to voluminous requirement of construction materials the company
borrowed funds from Company Y a certain amount of P 500,000.00. Company Y is one of the
affiliated company.
Required:
1. Journal entries for the year ending December 31, 2000
2. Trial balance as of December 31, 2000