Bagabag National High School

Bagabag, Nueva Vizcaya

Business Finance

PRACTICE SET:
1. Using the following (scrambled) accounts, prepare a balance sheet for
ABC, a retail company, for the year ending in December 31, 2014.
Assume that these are the only Balance Sheet Accounts.

Accounts Payable 39,000

Accrued Expenses 8,000
Accumulated Depreciation 51,000
Additional Paid-In Capital 86,000
Allowance for Doubtful Accounts 2,000
Cash 23,000
Common Stock (PHP0.20 par) 45,000
Current Portion of L.T. Debt 6,000
Gross Accounts Receivable 40,000
Gross Fixed Assets 486,000
Inventories 54,000
Long-Term Debt 210,000
Net Accounts Receivable 38,000
Net Fixed Assets 435,000
Retained Earnings 138,000
Short-Term Bank Loan (Notes 18,000
Payable)

2. Prepare a multi-step income statement for the retail company, ABC, for
the year ending December 31, 2014 given the information below:

Advertising expenditures 68,000

Beginning inventory 256,000
Depreciation 78,000
Ending inventory 248,000
Gross Sales 3,210,000
Interest expense 64,000
Lease payments 52,000
Management salaries 240,000
Materials purchases 2,425,000
R&D expenditures 35,000
Repairs and maintenance costs 22,000
Returns and allowances 48,000
Taxes 51,000