SOLUTION FOR EXAM CODE 206 (TO THE CHECKER : KINDLY CHECK IF TOTAL PTS IN THE SUM

TEST 1 2 PTS EACH

1. D 11. C
2. A 12. D
3. A 13. C
4. C 14. B
5. C 15. C
6. A 16. C
7. B 17. B
8. C 18. B
9. D 19. A
10. A 20. A

TEST II NO SOLUTION, NO POINTS 3 PTS EACH

1. B
SALES 350,000.00
LESS: SALES
ü RET & ALLOW 25,000.00
325,000.00

2. A ü
OUTPUT TAX 12% X 160,000 19,200.00
INPUT TAX 12% X 85,000 10,200.00
ü
VAT PAYABLE 9,000.00

3. B DR CR
TOTAL ü120,000.00 120,000.00
OFFICE SUPPLIES PURCHASE 1,000.00
ü
CASH DISBURSED (1,000.00)
120,000.00 120,000.00

4. A
Cash in bank in the name of Bata Billiard Hall ü 100,000.00
Office furniture & fixtures of Bata Billiard Hall 35,000.00
Billiard equipment 1,250,000.00
ü
Office supplies of billiard hall 10,000.00
1,395,000.00

Salaries Payable to Employees of the billiard hall 18,000.00

Accounts Payable arising from the repair of billiard hall 12,000.00
ü 30,000.00
5. C
SERVICE FEE 63,000.00
SALARY EXPENSE (10,000.00)
MISC. EXPENSE (7,000.00) ü
NET INCOME
ü 46,000.00
 TOTAL ASSETS 71,000.00
TOTAL LIABILITIES (5,000.00)
NET ASSETS 66,000.00
ü
6. D
CASH 138,000.00
SUPPLIES 7,000.00
TOTAL CURRENT ASSETS ü145,000.00
ü
ü
CURRENT ASSETS 145,000.00
EQUIPMENT (360K+661K) 1,021,000.00
FURNITURE 256,000.00
ü
TOTAL ASSETS 1,422,000.00

7. C
ACCOUNTS PAYABLE 52,000.00
NOTES PAYABLE 376,000.00
MORTGAGE PAYABLE (50%) 250,000.00
TOTAL CURRENT LIABILITY ü678,000.00

8. A ü
COST OF THE MACHINE 50,000.00
CASH PROCEEDS 22,000.00
GAIN ON SALE 5,000.00
BOOK VALUE 17,000.00
ACC. DEPRECIATION ü 33,000.00

9. B ü
Cash collected from customers on account 50,000.00
Revenue collected in cash 250,000.00
Operating expenses paid in cash (75,000.00)
NET CASH FLOW-OPERATING 225,000.00
ü
Cash withdrawn by the owner (25,000.00)
Cash acquired from creditor – Banco De Oro(long term loan) 100,000.00
ü
NET CASH FLOW-FINANCING 75,000.00

10. A
PALAKAD CAPITAL, END
Less: NET INCOME ü
REVENUE -CASH & ON ACCOUNT 375,000.00
EXP. ON ACCT & PAID IN CASH 170,000.00
Add: DRAWINGS
PALAKAD, CAPITAL, BEGINNING ü

11. B
ü
ADVANCE PAYMENT OF RENT -APR 2019 40,800.00
LESS: UNUSED PORTION 4 MOS X 3,400 13,600.00
 RENT EXP 27,200.00

12. A
NET SALES
LESS: COST OF SALES ü
BEG. INVENTORY 260,000.00
ADD:ü NET PURCHASES 655,000.00
TOTAL GOODS AVAILABLE FOR SALE 915,000.00
LESS: ENDING INVENTORY 255,000.00
GROSS PROFIT
ü
LESS: EXPENSES
NET LOSS
ü
To the checker: ü
Some students have to work back in computing the missing amounts using the formula above.
If they have alternative solution, pls consider it.
ü
13. C
ACCOUNTS RECEIVABLE BALANCE
ALLOW. RATE
REQUIRED ALLOW FOR BAD DEBTS
ü
LESS: CR BAL OF THE ALLOW FOR BAD DEBTS

14. D FV
A/R 100,000.00
MERCHANDISE 125,000.00
FURNITURE 93,200.00
ACCOUNTS üPAYABLE (68,000.00)
UTILITIES PAYABLE (2,500.00)
NET WORTH 247,700.00

15. C
INPUT TAX 156,895.30
DIVIDE IT BY / 12% ü
PURCHASES 1,307,460.83
ü
OUTPUT TAX 365,892.00
DIVIDE IT BY / 12%
SALES 3,049,100.00

TEST III SHORT PROBLEMS ü

A. ACID TEST RATIO = QUICK ASSETS
ü CURRENT LIABILITIES

= 324,200.00 OR 115,500 +208,700

ü202,000.00 OR 150,000 + 17,000+5,000+30,000
 = 1.60:1

ü
ROE = NET INCOME
AVE. OWNER' EQUITY

= 96,360.00
942,360.00

= 0.1023 OR 10%

TO COMPUTE NET INCOME

SERVICE FEES REVENUE 350,600.00
LESS: OPERATING EXP ü
DEPRN-FURNITURE (3,740.00)
UTILITIES (8,000.00)
RENT (65,000.00)
SALARIES (50,000.00)
SUPPLIES EXP (6,300.00)
DEPRN-EQUIP (94,000.00)
INSURNCE (27,200.00)
96,360.00

ü
TO COMPUTE AVERAGE OWNER'S EQUITY
BEG. INVTY 895,860.00
ENDING INVTY
BEG. INVTY 895,860.00
ADD NET INCOM 96,360.00
DRAWINGS (3,360.00) 988,860.00
1,884,720.00
DIVIDED BY /2
AVE. OWNER'S EQUITY 942,360.00

B. MILLET'S TRADING
BANK RECONCILIATION STATEMENT
ü
MARCH 31, 20XX

CASH BALANCE PER BOOK

LESS: BANK SERVICE CHARGE 410.00
ERROR IN RECORDING CHECK
RECORDED AS 9,300.00
SHOULD BE 3,900.00 5,400.00
ADJUSTED BALANCE PER BOOK
CASH BALANCE PER BANK ü
ADD: DEPOSIT IN TRANSIT
TOTAL
LESS: OUTSTANDING CHECKS
102 52,426.00
165 21,341.00
173 54,358.00
176 35,138.00
177 19,745.00
ADJUSTED BAL. PER BANK
ü

JOURNAL ENTRIES:
ü
BANK SERVICE CHARGE 410.00
PREPAID SUPPLIES 5,400.00
CASH IN BANK 5,810.00

TO REPLENISH THE PCF

GAOLINE & OIL 8,240.00 ü
UTILITY EXPENSE 2,750.00
DONATIONS 3,500.00
TRANSPORTATION EXPENSE 620.00
ü
REPRESENTATION EXPENSE 3,860.00
ü
MISCELLANEOUS EXPENSE 1,775.00
MILLET, WITHRAWALS ü
4,000.00
CASH IN BANK ü 24,745.00
ü
ü
HECK IF TOTAL PTS IN THE SUMMARY BELOW IS CORRECT)
TEST I 40
TEST II 45
TEST III 31
TEST IV
SJ 6
PJ 5
GJ 8
WITHHOLDIN 6
CRJ 10
CPJ 23
S. LEDGERS 14
T. ACCOUNT 6
194

( 1 pt for the letter of choice & 2 pts for the solution)

Some students will simply explain why they have chosen B

pls. consider their answer .
460,000.00

205,000.00
25,000.00
280,000.00
 885,000.00
ü

660,000.00
225,000.00
250,000.00
(25,000.00)

267,000.00
2%
5,340.00
ü
3,500.00
1,840.00

115,500 +208,700
150,000 + 17,000+5,000+30,000 1 PT
1 PT
3 PTS

3 PTS

1 PT

1 PT

457,312.00 10 PTS

5,810.00
451,502.00
 541,900.00
92,610.00
634,510.00

183,008.00
451,502.00

ü 3 PTS

ü
8 PTS

ü
SALES JOURNAL ONE PT FOR EACH TRANSACTION
PAGE 1
ACCOUNTS
RECEIVABLE OUTPUT TAX
DATE CUSTOMER INV. NO. F DR SALES CR CR
JULY 4 CEBU RESORT 334 55,440.00 49,500.00 5,940.00
17 HAPPY WORLD 335 100,800.00 90,000.00 10,800.00
25 HOLIDAY INN 336 52,360.00 46,750.00 5,610.00

208,600.00 186,250.00 22,350.00

ü ü ü

PURCHASE JOURNAL
PAGE 1

PURCHASES INPUT TAX

DATE SUPPLIER INV. NO. DR DR F
JULY 8 HONGKONG TRADING 007147 391,600.00 46,992.00
11 MINDANAO 565 107,360.00 12,883.20

498,960.00 59,875.20
ü ü

GENERAL JOURNAL PAGE 1

DATE ACCOUNTS & EXPLANATION F DR CR

JULY 8 FREIGHT-IN 1,200.00
INPUT TAX 144.00
ACCOUNTS PAYABLE 1,344.00

20 ACCOUNTS PAYABLE 3,920.00

PURCHASE RET & ALLOW 3,500.00
INPUT TAX 420.00

28 NOTES RECEIVABLE 52,360.00

ACCOUNTS RECEIVABLE 52,360.00

29 JOY, DRAWINGS 750.00

PURCHASES 750.00
 ANSWER SHEET -COMPUTATION OF WITHHOLDING TAX
GIRALD 15-Jul 31-Jul BIYA 15-Jul
SEMI-
MONTHLY SEMI-
SALARY MONTHLY
SALARY
_______ 13000 13000 7,500
SSS _______ (800.00) SSS _______
PAG-IBIG _______ (100.00) PAG-IBIG _______
PHIL HE _______ (357.50) PHIL HEALTH _______
ü 13,000 11,742.50 ü ü 7,500
TAXABLE INCOME ==== ========= TAXABLE INCOME ======

WITHHOLDING TAX ü 516.60 265.10 ü WITHHOLDING TAX = 0

PAGE 1

OUTPUT TAX
CR 6 PTS
5,940.00 ü
10,800.00 ü
5,610.00 ü

22,350.00

PAGE 1
ACCOUNTS
PAYABLE
CR 5 PTS
438,592.00 ü
120,243.20 ü

558,835.20
ü

8 PTS

ü 2 PTS

ü 2 PTS

ü 2PTS

ü 2PTS
 31-Jul

7500
(600.00)
(100.00)
(206.25)
6,593.75 ü
==========

0
CASH RECEIPTS JOURNAL ONE POINT FOR EACH TRANSACTION

CASH
DATE RECEIVED FROM EXPLANATION O.R. NO. DR
JULY 3 VARIOUS CUSTOMERS CASH SALES CRT 184,800.00
4 CEBU 20% DP 830 11,088.00
9 VARIOUS CUSTOMERS CASH SALES CRT 504,000.00
10 CEBU PARTIAL COLLTN 831 23,396.00
14 CEBU FULL COLLTN 832 22,508.96

745,792.96

CASH PAYMENT JOURNAL ONE POINT FOR EACH TRANSACTION (except

CASH
DATE PAID TO EXPLANATION VO. NO CR
JULY 1 LUZON TRADING PURCHASES 791 20,160.00
4 CEBU FREIGHT 792 2,440.00
6 DIZON ADS TAURP 793 2,128.00
11 MINDANAO 25% DP 794 30,060.80
12 HONGKONG FULL PAYMNT 795 418,006.40
15 GIRALD/BIYA SAL-7/1-7/15 796 19,983.40

22 ABENSON'S AIR CON 797 53,160.00

28 LION REALTY RENT 798 16,800.00
30 XYZ PURCHASES 799 20,000.00
30 NATIONAL SUPPLIES 800 2,016.00
31 GIRALD/BIYA SAL- 7/16-7/31 801 18,071.15

602,825.75
ü

ALTERNATIVE ENTRY IN THE CASH PAYMENT JOURNAL

22 ABENSON'S AIR CON 797 48,160.00
22 INSTALLATION 798 5,000.00
OR EACH TRANSACTION

ACCTS.
SALES RECEIVABLE SALES OUTPUT
DISCT. DR F CR CR TAX CR SUNDRY ACCOUNT
165,000.00 19,800.00
11,088.00
450,000.00 54,000.00
23,396.00
792.00 23,396.00 (95.04)

792.00 57,880.00 615,000.00 73,704.96

ü ü ü ü

OR EACH TRANSACTION (except for July 22)

PURCHASE ACCTS.
DISCOUNT PAYABLE PURCHASES INPUT TAX
CR F DR DR DR SUNDRY ACCOUNT
18,000.00 2,160.00
ACCTS REC'BLE
228.00 ADVERTISING EXP
30,060.80
19,580.00 439,936.00 (2,349.60)
SALARIES EXP
WITHHOLDING TAX PAYABLE
5,160.00 EQUIPMENT
1,800.00 RENT EXP
20,000.00
216.00 SUPPLIES
SALARIES EXP
WITHHOLDING TAX PAYABLE
SS PREMIUM PAYABLE
PHIL HEALTH PREMIUM PYBLE
PAG-IBIG PREMIUM PYBLE

19,580.00 469,996.80 38,000.00 7,214.40

ü ü ü ü

5,160.00 EQUIPMENT
EQUIPMENT
PAGE 1

F DR CR
ü 10 PTS
ü
ü
ü
ü

- -

F DR CR 23 PTS
ü
2,440.00 ü
1,900.00 ü
ü
ü
20,500.00 ü
516.60 THIS IS A COMPOUND ENTRY
48,000.00 ü ü PLS SEE ALTERNATIVE PRESENTATION
15,000.00 ü BELOW
ü
1,800.00 ü
20,500.00 ü
265.10 ü
1,400.00 ü
563.75 ü
200.00 ü

110,140.00 2,945.45
ü ü

43,000.00 ü
5,000.00 ü
CUSTOMER'S RECORD

NAME: CEBU RESORT

DATE EXPLANATION F DR CR BALANCE

JULY 4 SI 334 SJ1 55,440.00 55,440.00
4 20% DP CRJ1 11,088.00 44,352.00
4 CPJ1 2,440.00 46,792.00
9 50% PARTIAL CRJ1 23,396.00 23,396.00
13 FULL COLLECTION CRJ1 23,396.00 -

NAME: HAPPY WORLD

DATE EXPLANATION F DR CR BALANCE

JULY 17 INV 335 SJ1 100,800.00 100,800.00

NAME: HOLIDAY INN

DATE EXPLANATION F DR CR BALANCE

JULY 25 SJ1 52,360.00 52,360.00
25 GJ1 52,360.00 -

SUPPLIER'S RECORD

NAME: HONGKONG TRADING

DATE EXPLANATION F DR CR BALANCE

JULY 8 INV 007147 PJ1 438,592.00 438,592.00
8 FREIGHT GJ 1,344.00 439,936.00
12 VO.795 CPJ1 439,936.00 -

NAME: MINDANAO MERCHANDISING

DATE EXPLANATION F DR CR BALANCE

JULY 11 INV 565 PJ1 120,243.20 120,243.20
11 CPJ1 30,060.80 90,182.40
 20 GJ1 3,920.00 86,262.40

Accounts Receivable Accounts Payable

Dr Cr Dr Cr
7/4 2,440 7-25 52,360 20-Jul 3,920.00 8-Jul
208,600 57,880 469,996.80
52,360
473,916.80
211,040 110,240
BAL.
BAL. 100,800 ü
3 PTS
5 PTS

ü
ü
ü
ü
ü

1 PT
ü

2 PTS
ü
ü

3 PTS
ü
ü
ü

3 PTS
ü
ü
ü
 ü
ü

nts Payable

1,344.00
558,835.20

560,179.20

86,262.40 ü

3 PTS