Professional Documents
Culture Documents
INSTRUCTIONS:
1) Assume that you will establish your own grocery store in your locality.
2) Given the transactions below, provide the dates, amounts and terms.Do not think of other transactions anymore just follow what is
provided.
3) Journalize transactions, prepare ledger, trial balance and financial statements according to the system assigned to you as either Periodic
or Perpetual.
4) Use the given template.
5) Encode it if your resources permit but you can also have it handwritten.
6) Deadline: December 11, 2020
7) Rubrics includes PUNCTUALITY:
Accounting
Transactions 10%
Process(Journalizing-Trial Balance) 40%
Financial Statements 40%
Punctuality 10%
Business Finance
Formula 10%
Process(Calculation, Ratios Format, Correctness of Answers) 40%
Analysis 40%
Punctuality 10%
Date Particulars PR DR CR
Cash 2,000
To record collection
To record purchase
Cash 1,500
To record sales
To record sales
To record expenses
To record withdrawal
Account #: 101
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Account #: 112
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Account #: 120
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Account #: 130
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Account #: 201
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Account #: 301
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Account #: 302
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Jan 31 Withdrawal 10,000 10,000
Account #: 401
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Account #: 412
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Account #: 412
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Account #: 500
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Account #: 630
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Account #: 631
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Account #: 635
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Account #: 635
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
Account #: 645
AMOUNT BALANCES
Date Remarks PR
DR CR DR CR
______________
TRIAL BALANCE
_____________________
Acct. # Acct. Title Debit Credit
__________________________
______________________________________
Sales 60,000
Salaries 5,000
Advertising 4,000
Freight-Out 1,500
_______________________
Total 490,000
_______________________________
______________________________________
ASSET
Current Asset
Cash 220,700
Accounts Receivables 0
Inventory 106,450
Prepaid Expenses 0
Non-Current Asset
Liabilities
Accounts Payable 0
Total Liabilities 0
Owner’s Equity
_______________________
FINANCIAL STATEMENT ANALYSIS, COMPUTE THE FOLLOWING RATIOS. Provide the formula and show your solution
Quick Ratio
Current Ratio
Gross Margin
Profit Margin
N et Income/(Loss ) (12,850)
= =−0.2894∨−28.94 %
Net Sales 44,400
Return on Asset (use TOTAL ASSET)
Total Liabilities 0
= =0 %
Total Capital 477,150
Total Liabilities 0
Debt Ratio = =0 %
Total Assets 477,150
Even though the business doesn’t have any loans or payables, it is struggling financially due to the fact that its expenses exceeded its gross
profit. Hence, there is a net loss. Also, there no other current assets that could be a source of funds. Having no receivables is a big factor
because it can also be a source of income.
The business currently has a markup percentage of 25%, they should reconsider to adjust their markup percentage and make it at least 50%
or more; to make the business more profitable and to have a higher income. However, adjusting the markup percentage is not just the only
thing to do, the business should also control its expenses.