St.

Matthew Academy of Cavite

“A Christ Center School”

FRIENDLY CONVENIENCE STORE: CASH

ANSWER:
DENOMINATION NUMBER OF BILLS PESO AMOUNT
100 3 300
50 5 250
20 5 100
10 5 50
5 10 50
1 10 10
.25 25 6.25

TOTAL CASH ON HAND ₱2,306.25

CASH IN BANK ₱26,780
TOTAL CASH ₱29,086.25
CASH EQUIVALENTS ₱100,000
TOTAL CASH AND CASH EQUIVALENTS ₱129,086.25
 St. Matthew Academy of Cavite
“A Christ Center School”

FRIENDLY CONVENIENCE STORE: ACCOUNTS RECEIVABLE

ANSWER:
MARIA REYES Debit Credit
Balance P 124.00 124
September 2 bottles of cola 24
5 (P12 each)
September 1 bar of laundry soap 50
15 (P50)
October 3 1 sachet of fabric 50
softener (P50)
October 8 1 small can of 25
sardines (P25)
October 15 Payment: P200.00 200
October 25 2 bag of chips (P30 60
each)
October 30 Payment: P100.00 100
November 1 sachet of laundry 50
16 soap (P50)
November 2 kilos of rice (P44 88
22 per kilo)
November Payment: P100:00 100
30
December 1 5 sachets of shampoo 75
(P15)
December Payment: P100.00 100
15
December 1 small can of 25
22 sardines (P25)
December 2 kilo of rice (P44) 88
27
December 1 small bar of bath 20
28 soap (P20)
December 5 sachets of shampoo 75
29 (P15)
December Payment: P100.00 100
30
Net receivables 600 754
-600
₱154
 St. Matthew Academy of Cavite
“A Christ Center School”

FRIENDLY CONVENIENCE STORE: INVENTORY

MERCHANDISE COST
2 bags of candy P 60.00
10 sachets of coffee P 60.00
10 sachets of laundry P 150.00
powder
1 sack of rice (50 Kilos) P1,800.00
10 cans of sardines P 150.00
10 chocolate bars
5 notebooks P100.00
TOTAL BALANCE P 2,320.00
 St. Matthew Academy of Cavite
“A Christ Center School”

FRIENDLY CONVENIENCE STORE: PREPAYMENTS

Juana paid premium of P 2,500 for one year fire insurance in
the name of the store on October 1, 20x1. How much should prepaid
insurance be on December 31, 20x1?
Answer:

P 2, 500 (amount of Juana’s yearly fire insurance) –/ 9

(number of months unused) = P 1,8475.
 S t. M atthew Academy of Cavite
“A Christ Center School”

FRIENDLY CONVENIENCE STORE: PROPERTY, PLANT, AND EQUIPMENT

1. Equipment = cash register that cost P15,000

2. Annual depreciation = P15,000 / 5 (life span) = P3,000
3. Accumulated depreciation as of December 31, 20x1 = P3,000 x 2 = P6,000
4. Net book Value of Equipment as of December 31, 20x1 = P15,000 – P6,000 =
P9,000

ANSWER
FORMULAS:

ANNUAL DEPRECIATION = ORIGINAL COST / USEFUL LIFE

ACCUMULATED DEPRECIATION = ANNUAL DEPRECIATION X NUMBER OF YEARS

DEPRECIATED

NET BOOK VALUE = ORIGINAL COST – ACCUMULATED DEPRECIATION

Before moving to the next part (liabilities) identify the assets described
below

1. Money in the bank or money in the premises of the company - Cash on hand
2. Asset that can be used in the company’s business for many years – Long-
term assets / non-current assets
3. Unsold goods that were purchased to be sold to the company’s customers.
- Inventory
4. The company’s right to claim payments and evidenced by a promissory note
signed by the debtor. – Notes Receivable
5. The companys right to collect from the customer because delivery of
goods and services have been completed – Accounts Receivable
6. Advance payments for expenses such as cellphone loads. - Prepaid
7. A class of PPE that is not subject to depreciation – Property and Plant
 St. Matthew Academy of Cavite
8. “A Christ Center School”

FRIENDLY CONVENIENCE STORE: ACCOUNTS PAYABLE

ANSWER
1. November 25, 20x1
2. December 15, 20x1
= P1,800 x 5
= P1,800 x 5
= P9,000
= P9,000
= P9,000 / 2% (0.02)
= P180
= P9,000 – 180
= P8,820
 St. Matthew Academy of Cavite
“A Christ Center School”

FRIENDLY CONVENIENCE STORE: NOTES PAYABLE

Answer the following questions:

1. Who will record the Notes Payable? - Juana Dela Cruz
2. Who will record the Notes Receivables? - United Bank
3. Compute for the payment due on November 30, 20x1 and
December 30, 20x1
For Nov. 30, 20x1
For Dec. 30, 20x1
= (P25,000 x 6%) / 12
= (P20, 000 x 6%) / 12
= P5,000 + 125
= P5,000 + 125
= P5,125
= P5,125

4. Determine the balance of Notes Payable as of December 31,

20x1.
(combine the payments on November and December without
interest)
= P25,000 – P10,000
= P15,000
 St. Matthew Academy of Cavite
“A Christ Center School”

FRIENDLY CONVENIENCE STORE: ACCRUED EXPENSE

ANSWER
Daily Salary Rate P400.00
Number of unpaid days 4
Salaries payable, December P1,600.00
31,20x1
 St. Matthew Academy of Cavite
“A Christ Center School”

FRIENDLY CONVENIENCE STORE: UNEARNED INCOME

ANSWER
MONTHLY RENTAL RATE P500.00
REMAINIING UNUSED MONTH 3
UNEARNED RENT INCOME, DECEMBER 31, P1,500
20X1
 St. Matthew Academy of Cavite
“A Christ Center School”

FRIENDLY CONVENIENCE STORE: LONG TERM LIABILITY

Which of the two loans should be reported as long-term Liability

on the Stores calendar year 20x1 SFP?
Answer: UNIVERSAL BANK
Before moving on to the next part, identify the name of the
liability that matches the description below
1. Obligations payable after one year. – Current Liabilities
2. Obligations to pay suppliers of merchandise inventory. –
Accounts Payable
3. Unpaid expenses such as utilities and salaries. – Accrued
Expense
4. Liabilities supported by a legal document that promises to
pay a specific amount to the creditor – Promissory Note /
Notes
5. Cash deposit received from customers. – Customer deposit
 St. Matthew Academy of Cavite
“A Christ Center School”

NORMAL BALANCE

A. An asset account has a beginning balance of P 1,000.00. During

the year, the total debit and credit entries amount to P900 and
P 990, respectively. What is the ending balance of the asset.

DEBIT CREDIT
P1,000.00 P990.00
900.00
P1,900.00
990.00
P910.00

B. Assume the same beginning balance as well as the same debit and
credit entries made during the year. The account is a liability
instead of an asset. What is the ending balance of the
liability account.
DEBIT CREDIT
P990.00 P1,000.00
900.00
P1,900.00
990.00
P910.00

Discussion Questions: Before moving on to the next part, answer the

following questions:
1. What are the 2 common formats of SFP? – Account form and Report
form
2. What is the SFP format that represents assets on to the left and
liabilities and equity on the right? – Account Form
3. What is the normal balance of an asset account? - Debit
4. What is the normal balance of a liability account? - Credit
5. What is the normal balance of an equity account? - Credit