AE 25 Module 1 Lesson 1

TANAUAN CITY COLLEGE
Tanauan city, Batangas
DRESS RIGHT CLOTHING ENTERPRISE

Trial Balance
September 30. 2019
Unadjusted Trial Balance Adjusting Adjusted Trial Balance
Post Account Title Debits Credits Debits Credits Debits Credits
Ref.
100 Cash on Hand 69,500 0 0 69,500
110 Account Receivables 2,000 0 0 2,000
115 Allowance for Uncollectible Accounts 0 500 - 500
112 Interest Receivable 200 0 200
125 Supplies 2,000 0 800 1,200
130 Prepaid Rent 24,000 0 2,000 22,000
140 Inventories 38,000 0 - 38,000
150 Furnitures & Fixtures 12,000 0 - 12,000
155 Accumulated Depreciation - Fur & Fix 200 - 200
210 Account Payables 35,000 0 - - 35,000
220 Notes Payable 40,000 0 - - 40,000
230 Unearned Rent Revenue 1,000 250 - 750
240 Interest Revenue 0 200 200
230 Salaries Payable 5,500 5,500
240 Interest Payable 0 333 - 333
400 Sales Revenue 38,500 38,500
300 Owner's Equity 60,000 60,000
410 Rent Revenue 0 250 - 250
600 Retained Earnings - -
500 Cost of Goods Sold 22,000 22,000
510 Salaries Expense 5,000 5,500 10,500
520 Supplies Expense 800 - 800
530 Rent Expense 2,000 2,000
550 Interest Expense - 333 - 333
560 Bad Debts Expense 500 - 500
540 Depreciation Expense 200 200
TOTALS 174,500 174,500
TOTALS 9,783 9,783
TOTALS 181,233 181,233
Tanauan City, Batangas
Subject :FUNDAMENTALS OF ACCOUNTING Ramon R. Enriquez, CPA,CIA,MBA

Time : 9:00am - 12:00pm Wed & Thurs Professor- AY 2019-2020
page 2
MIDTERM EXAMINATION- 10/03/2019
continuation
8.) TGM established a Petty Cash Fund for Php10,000 from Cash for various small expenses
on Sept. 14
9.) The payroll master distibuted sales salaries for all employees in the amount of Php
75,100.50 for 1/2 month salary on Sept. 16
10.) The purchaser has ordered and was delivered various goods and merchandise for Php 55,500
from SM Lipa, payable after 15 days.
11.) The purchaser had requested cash from the cashier for Php 1,000 as transportation
allowance in going to San Pablo City to pick up printed bags and packaging materials
for the mall last Sept. 17
12.) On Sept. 18, electric bill for Php1,700.50 was paid to Batelec and telephone bill for
Php 2,300.10.
13.) Sept. 19, Aling Puring store settled its account by paying Php 40,470
14.) On Sept. 30, the accountant made an accrual entry for the unpaid salaries of 1/2 month
pay for Php 75,500.50
15.) To anticipate unpaid sales on account non payment, a bad debts is set aside in the amount
of Php 5,850.
Review you answers

*********Good Luck**********

GENERAL LEDGER ACCOUNTS

CASH ON HAND 100
Debit Credit
Sept 1 GJ 1 60,000 24,000 Sept 1 GJ 1
Sept 1 GJ 1 40,000 12,000 Sept 1 GJ 1
Sept 9 GJ 1 35,000 2,000 Sept 1 GJ 6
Sept 16 GJ 1 1,000 25,000 Sept 20 GJ 6
Sept 25 GJ 1 1,500 5,000 Sept 20 GJ 6
137,500 68,000
Balance 69,500
ACCOUNT RECEIVABLE 110

Sept 9 GJ 1 3,500 1,500 Sept 25 GJ 1
Balance 2,000
SUPPLIES 125
Sept 6 GJ 1 2,000
ACCOUNT PAYABLES 210

Sept 20 GJ 2 25,000 60,000 Sept 3 GJ 1
Balance 35,000
UNEARNED RENT REVENUE 230

1,000 Sept 16 GJ 2
OWNER'S EQUITY 300

60,000 Sept 1 GJ 1
SALARIES 510
Sept 20 GJ 2 5,000
SALES REVENUE 400

35,000 Sept 3 GJ 1
3,500 Sept 9 GJ 1
Balance 38,500
PREPAID RENT 130

Sept 1 GJ 1 24,000
INVENTORIES 140
Sept 3 GJ 1 60,000 20,000 Sept 9 GJ 1
2,000 Sept 9 GJ 2
Balance 38,000 22,000
FURNITURES & FIXTURES 150

Sept 1 GJ 1 12,000
NOTE PAYABLES 220

40,000 Sept 1 GJ 1
COST OF GOODS SOLD 500

Sept 9 GJ 1 20,000
Sept 9 GJ 2 2,000
Balance 22,000
RETAINED EARNINGS 600



page 1
GENERAL JOURNAL (GJ)
Date Account Title and Explanation Post Ref. Debit Credit
2019
Sept. 1 Cash on Hand 100 60,000
Owner's Equity 300 60,000
to record initial capital of the
owner

Notes Payable 220 40,000
to record borrowing of cash and
issuing promissory note
Sept. 1 Prepaid Rent 130 24,000

Cash on Hand 100 24,000
to record payment of rent for
one (1) year in advance
Sept. 1 Furnitures & Fixtures 150 12,000

to record Purchase of several tables
chairs, cabinets
Sept. 3 Inventories 140 60,000

Account Payables 100 60,000
to record purchase of merchandise
inventory on account

Sales Revenue 400 35,000
to record cash sales
Sept. 6 Supplies 125 2,000

to record puchase of supplies
Sept. 9 Account Receivables 110 3,500
Sales Revenue 400 3,500
to record credit sale or sale on account
page 2
Sept. 9 Cost of Goods Sold 500 20,000

Inventory 140 20,000
to record the cost of cash sales
account
Sept. 9 Cost of Goods Sold 500 2,000

Inventory 140 2,000
to record the cost of credit sales or on
account

Unearned Rent Revenue 230 1,000
to record the receipt of rent in advance
Sept. 20 Account Payables 210 25,000

to record payment of account s payables
Sept. 20 Salaries Expense 510 5,000

to record payment of salaries for first
half of the month

Account Receivable 110 1,500
to record receipt of collection
Adjusting Entries:
Adjusting Entries are necessary for three (3) situations:
1. Prepayments sometimes referred as deferrals
2. Accruals
3. Estimates
page 3
Adjusting Entries as of September 30. 2019 Post

Ref. Debit Credit
1. Sept. 30 Supplies Expense 520 800
Supplies 125 800
to record supplies used for the period
2. Sept. 30 Depreciation Expense 540 200

Accumulated Depreciation - Fur. & Fix. 155 200
to record reduction of asset with useful life of
5 years, 5 years=60 monts
(12,000/60)
3. Sept. 30 Unearned Rent Revenue 230 250

Rent Revenue 410 250
to record 1/2 of one month's subrent or sublease
for 1,000 for 2 months (receive payment for 1/2 of one
month that is 500/2)
4. Sept. 30 Rent Expense 530 2,000

Prepaid Rent 130 2,000
to record one month rent (24,000/12)
5. Sept. 30 Salaries Expense 510 5,500

Salaries Payable 230 5,500
6. Sept. 30 Interest Receivable 200

Interest Revenue 200
to interest not yet received (30,000 X 8% X 1/12)
7. Sept. 30 Bad Debts Expense 560 500

Allowance for Uncollectible accounts 115 500
8. Sept. 30 Interest Expense 550 333

Interest Payable 240 333
to record interest fron borrowed fund of 40,000
with 10% interest (40,000 X 10% X 1/12 = 333)

page 1
MIDTERM EXAMINATION- 10/03/2019
Directions:
Read the questions intelligently and analyze;
Put all your answers on the separate yellow sheet paper;
Review your answes before submission
A. Give the meaning or your understanding of the following Accounting terms;

1. Accounting 6. Debit and Credit
2. Bookkeeping 7. Asset
3.Double -entry bookkeeping system 8. Liabilities
4. Chart of Account 9. Equity or Capital
5. Source Documents
B. Enumerate the Ten (10) accounting cycles or processes.
C. What are the six (6) original Book of Accounts
D. Journalize the following financial transactions;

1.) On Sept. 1. Tanauan Great Mall has invested Php 500,000 to open up a general
merchandise business.
2.) Last Sept. 2. Tanauan Great Mall had purchased and installed several store equipment for
a total of Php 125,000, such as cash register, cooler, candies and bread compartments.
3.) Assorted merchandise was bought from Victory mall worth Php 45,500 in cash last Sept. 5
4.) On Sept. 8, the purchaser of TGM was able to negotiate from Waltermart, a credit line
by carting assorted goods worth Php 200,000 on account, payable with the term
of 10%/100 days term.
5.)At the end of the day on Sept. 9, the sales clerk punched the key that registered a total of
Php 37,500 as cash sales for the day.
Another sales clerk, reported sales on account of Php 42,600 from Aling Pureng store
for a term of 5%/30 days.
6.) A Insurance for one (1) year was concluded for Php 12,000 starting Oct. 1,2019 to
Sept. 30, 2020
7.) Sept. 10, cash sales was registered on the cash register machine a total of Php 22,300

Notes -10/3/2019
Current Assests - cash and other assets which are reasonably expected to be
realized in cash or sold or consumed within one year or the normal
operating cycle of a business.
Permanent Investments - are assets acquired with the intention of being held or owned
for a relatively long period of time because of the tme that may be earned on
them or a certain business advantage
Unlike fixed tangible assets, permanent investments are not used directly in the
operations of the business.
ex. Shares of stocks of another corporation.
buying a piece of land for future use.
Plant, Property and Equipment - assets more or less permanent in nature, used in operations
and not intended for sale.
ex. Land, buildings, machineries, furnitures & fixtures
Fixed asset is an obsolete classification
Intangible Assets - assets having no physical existence.which are permanent in nature,

which are valuable, because of rights and privileges which they confer on the
owner,
ex. Goodwill, organization costs, patent, copyright
Contra Asset Accounts - certain accounts with credit balances were shown as deductions
from related asset accounts in the balance sheet
ex. Allowance for doubtful accounts and accumulated depreciaton
álthough they have credit balances, they are neither liability, nor capital nor
income account.
also known as valuation accounts, asset - minus, or asset-offset accounts.
Deferred Charges - costs which are chargeable against income of future periods
ex. Organizaton costs, debt discounts, prepaid expenses pertaining to periods
beyond 12 months.
Arrangement and Classification of Liabilities

Liabilities are arranged in the order in which they will be paid
Current Liabilities
Long-Term Liabilities
Deferred Credits and other Liabilities
Other Liabilities
Examples of Long Term Liabilities

bonds payable, mortgage payables, loan from affiliated companies, long term
indebtednes

Notes - 10/9/2019
A. STATEMENT OF CASH FLOWS

- The Statement of Cash Flows is also a change Statement,disclosing the events that caused
cash to change the period.
- it is to summarize the transactions that caused cash to change during the period,
-the statement classifies all transactions affecting cash into one of three categories;
1) operating actitivities - are inflows and outflows of cash related to the
transactions entering into the determination of net income.
2) investment activities-activities involve the acquisition and sale.

like long term assets used in business, nonoperating investment asset.
3) financing activities- involve cash inflows and outflows with creditors and
owners.
Illustration DRESS RIGHT CLOTHING ENTERPRISE

Statement of Cash Flows
For the Month of September, 2019
Cash Flows from Operating Activities
Cash Flows:
From customers 36,500
From rent 1,000
Cash outflows;
For rent - 24,000
For supplies - 2,000
To supplier of merchandise - 25,000
To employees - 5,000
Net cash used by operating activities - 18,500
Cash Flows from Investing Activities

Purchase of furnitures & fixtures - 12,000
Cash Flows from Financing Activities

Additional investment 60,000
Increase in notes payable 40,000
Net cash provided by financing activities 100,000
NET INCREASE IN CASH 69,500.00
TANAUAN CITY COLLEGE page 2

Notes 2 10/14/2019
LONG TERM CONTRACT

- earning process occurs over long time period
- it is when revenue and related expenses should be recognized on a long -term projecs
encompassing more than a single accounting period.
Two (2 )Methods of Revenue Recognition in Long Term Contract

1. Completed Contract Method - recornizing the revenue at the point of delivery.
ex, when a construction project is completed or finished, that is the time revenue is
realized.
2. Percentage of Completion Method - recognize a portion of the estimated profit or

income on each period to date.
Progres to date depends on three (3) factors;
1. The costs incurrred to date;
2. The most recent estimate of the total project cost;
3. The most recent gross profit estmate.
SERVICE SALES
-sales or revenue are earned by providing services to their customers.
- timing of revenues and drelated expenses recognition for services rendered on the
nature and timing of the services being provided,
Service Performance Method

A. Completed Performance Method;
-services require the seller to perform several different activities spread out over
defferent reporting period.
- all revenue and costs are deferred until this final activity has been performed.
ex. A moving company will pack, load transport and deliver housesold goods for
fee or moving offices.
B. Proportional Performance Method;

-this method is analogous to the percentage of completion method for logn term
contract
-recognizes revenue based on proportinal performance of each activities beyond
one accounting period.
ex. Payment of 2 year membership fee
C. Specific Perforance Method

- service performed are not identical from one accounting period to the nest
- any systematic and rational method that reasonable relates revenue recognition
to performance could be used.
- service revenue is earned upon performing a single activity.
ex. Doctor earned fee after completion of surgery.

Notes 4- 10/31/2019
Two (2) groups of Merchandise Inventory in an accounting period;

1. Merchandising Inventory - beginning
-these are the unsold merchandise or goods unsold in the previous year of
operation.
2. Merchandising Inventory - end
-these are the unsold merchandise or goods unsold at the current period of
operation and eventually be the beginning inventory of the next accounting
period.
Types of Inventory
1. Merchandise Inventory - consist of assets that a retail or wholesale companies purchase
of goods that manufacturers produce for sale, usually merchandising companies.
2. Manufacturing Inventories - consist of a) Raw Materials b) Work In Process c) Finished

Goods
-manufacturing companies actually produce or manufacture for goods they sell
to wholesalers, retailers, or other manufacturers.
Raw Materials - cost of components or parts that will become finished producsts or goods.
Work in Process - refers to the products not yet finished, which includes cost of raw
materials,cost of labor (payroll) and an allocated portion of other manufacturing
costs , called manufaturing overhead .
Once the work in process is complete, will be transferred to Finished Goods.
Merchandising Accounts;
1. Sales
2. Sales Returns and Allowances
3. Sales Discounts
4. Revenue from Sales os Net Sales
5. Gross Profit from Sales
6.Purchases
7. Purchase Returns and Allowances
8. Purchase Discount
9. Freight In
10. Freight Out
11. Cost of Goods Sold

Notes 3 -10/30/2019
NATURE OF MERCHANDISING
Merchandising or Trading Concern - a business organization that deals with buying and selling of goods.
-Merchandising concerns revenue by selling goods or mechandise on wholesale or retail basis,
Merchandise refers to goods or commodities bought by the business for resale at a certain amount of
profit.
Two (2) Methods of accounting for merchandise;

1. Under Perpertual Inventory Method, the cost of goods sold and ending inventory may be
determined from the accounting records without a physical counting of goods. It requires a
maintenance of records called "Stock Cards'' which shows a running balance increases & decreases
2. Under Periodic Inventory Method, the cost of goods sold and the ending inventory is determined
by physically accounting the items and multiplying the number of items counted by its costs.
Terms of Purchase:
1. On Cash Basis The buyer pays cash for the amount of merchandise purchased
Example;
On October 1, 2019, Cardo bought merchandise worth Php50,000 and paid in cash;
journal entry;
Date Account Title & Explanation Debit Credit
Oct. 01, 2019 Purchases 50,000
Cash 50,000
2. On Credit Basis - The buyer received the merchandise but the payment is on a specific date.
Example;
On October 1, 2019, Cardo bought merchandise worth Php50,000 on account.
Accounts Payable 50,000
3. On Credit Basis supported by a Promissory Note

The buyer received the merchandise but the payment is made through a signed
promissory note.
Example;
On October 1, 2019, Cardo bought merchandise worth Php50,000 and issued a promissory note.
Notes Payable 50,000

Notes - 10/14/2019
2 Two kind of DISCOUNTS
1. CASH DISCOUNT - is certain percentage of the purchase price to the buyer if it pays
within the specified period of time.
A Cash Discount on partial payments if all partial payments taken together or paid all.
2. TRADE DISCOUNT - a deduction fro the catalog or list price granted to the purchaser of goods.
PURCHASE OF ASSETS OTHER THAN MERCHANDISE

chairs, tables, office supplies, cabinets, computers, typewriters, racks and other goods not
for sale in the ordinary course of business.
A.REAL ESTATE SALES

is the sales of lots to builders, sales of homes or buildings, and parcels of lands which normally
on an installment basis, with small downpayent and long payments periods,normally 20 to
25 years to pay
Realization principle maybe not be satisfied at the date of sale, so revenue and cost may not be
postposed.
profit shoiuld be recognized either at the point of delivery, by the percentage of completion
or by installment sales method.
B. FRANCHISE SALES
In the franchise agreeent, the Franchisor grants to Franchisee the right to sell the franchisor products
for a specified period of time.
FEES TO BE PAID TO FRANCHISOR

1. Initial Franchise Fees - in addition to the right to use its name and sell its products might include
assistance in finding a place/location constructing fascilities and training employees.
2, Continuing Franchise Fees - fees to be paid for adverting, promotions and other services provided
over the life of franchising agreement.
Examples of Franchise: Jollibee Foods Corp., Mercury Drug, Max's
C. INSTALLMENT SALES - revenues and costs recognized when payments are received.
Ex.. Buying of house and lots, vehicles like jeep, van, delivery trucks machineries.etc.
D. LOCAL SALES- delivering goods and services of local sources or origin
Ex. Sari sari stores, markets goods & services
E. EXPORT SALES-delivering goods and services to other countries.
Ex. Wiring harness of Yazaki Torres. garments., coconur oil, sugar, chocolate bars, copper
page 1
products

practice set for General Journal
Journalize the following transactions;
Oct. 1 Donald Ronald invested Php 20,000 cash and merchandise worth Php530,000 to start
thae .business
Oct. 2 Received merchandise from Saturn Trading worth Php19,700 . Terms: 2/10, n/60
Oct. 5 Purchased store equipment on credit from Alruz Hardware. Terms :n/10, EOM
Php25,500.
Oct. 10 Issued check to Saturn Trading in payment of its account.
Oct. 11 Received a Php1,500 credit memo from Alruz Hardware for unsatisfactory store
equipment purhased on Oct. 5.
Oct. 13 Sold Php55,000 merchandise on credit to W. Navarro per Invoice No. 101.
Oct. 14 Purchased additional merchandise from Alphabet Trading for Php27,700
Terms; 2/10, n/60.
Oct. 15 Cash Sales, Php32,650
Oct. 16 Sold Php18,950 merchandise on credit to R. Fernandez per Invoice No. 102.
Oct. 17 Sold merhandise on credit to M. Mendez, Invoice No. 103 for Php27,500
Oct. 20 Received Php 8,000 from R. Fernandez in partial settlement of his accounts.
Oct. 23 Received Php 15,000 from M. Mendez in partial settlement of his accounts.
Oct. 26 Cash Sales, Php30,000
Oct. 27 Received M. Mendez the balance of his accout.
Oct. 30 Paid the following expenses for the month.
Utility bill Php2.500
Rent of the store Php13,000
Salaries of Employees Php18,900
Insurance Php3,300
Oct. 31 Donald shipped to Cebu merchandise worth Php100,000 and paid Php 28,000
for shipping cost to WGA Shipping Lines, which includes Php3,500 insurance.

Notes 6 - 11/06/2019
TERM OF SHIPMENT
1. FOB Shipping Point - FOB means Free on Board

This means the Seller pays for the transportation expenses of the merchandise up to shipping
point. If the term is FOB Shipping Point, the title to the ownership of the goods is already
transferred to the buyer from the point of shipment.
Illustration:
Assuming Cebu is the shipping point and Manila is te point of Destination.
CEBU MANILA
Seller pays Title of commodities passes to the Buyer
2. FOB Destination - The freight is shouldered by the Seller up to the point of Destinaton. If the term of
the title to the goods remains with the Seller until goods are received by te Buyer.
CEBU MANILA
Seller pays Title to the goods passes to the Buyer upon actual receipts of
goods.
3. Freight Collect
The Freight Collect is charge on the shipment of goods is not yet paid. The common carrier
collects such payment from the Buyer.
4. Freight Prepaid
The Freight charge on the shipment goods is already paid by the Seller.

Notes 5 - 11/06/2019
NATURE OF EXPENSES
Cost of Goods Sold include purchase price of the goods and the expenses incurred in transporting
the goods bought.
Expenses are costs of operating the business such as rent, of store, salaries of employees, supplies
used and other costs in carrying out the different business activities.
Cost of Goods Sold and the Expenses are both deductions from the proprietorship or owner's
account. When these expenses are paid in cash, there is corresponding decrease in asset,
cash otherwise an increase in liability.
ACCOUNTING FOR FREIGHT

1 Freight In or Transportation In, account is carge if payment is made for the transportation of
goods purchased. The amount is part of the cost of goods puchased.
Example; Alpha Trading paid Php15,000 for the shipment of merchandise bought.
Journal Entry;
Date Freight In 15,000
Cash 15,000
2 Freight Out or Transportation Out, account is charge if payment is made for the transportation
of goods sold. Unlike Freight In, this amount is an operating the business.
Example; Beta Enterprise sold merchandise to N'"Joy Bakery and paid for the delivery of flour sold for
Php17,500.
Journal Entry;
Date Freight Out 17,500
Cash 17,500
OTHER EXPENSES
Freight on Assets purchased and additional expenses incurred related to its acquisition such as
insurance, custom duties, trucking and other incidental , including installaion costs should be
treated as part of the asset.

page 1
MIDTERM GRADE COMPU
Test PRACTICE MID TERM MID TERM
STUDENT NAME JOURNAL EXAM GRADE
1 AGUILON, Velgie 85 95 80 85
2 ALBUERO, Leslie 85 90 80 84
3 AREVALO, Erika 88 90 88 89
5 BAJAMUNDI, John Cedric 88 90 80 85
6 CAPANGPANGAN, Pamel 88 95 80 86
7 CASTILLO, Mary Faith 92 90 85 88
8 CASTRO, Donnalyn 87 90 85 87
9 CONDESA,Maranne Elizabeth 93 90 90 91
10 CUARTO CRUZ, Jayson 88 90 90 90
11 DELA ROSA,Krisell 90 90 80 85
12 DIMAANDAL, Reynold 90 90 85 88
13 FAJARDO, Darlene Joyce 88 90 90 90
14 FURIO, Christian 90 90 85 88
15 GUBALA,Rennevel 83 90 82 84
16 HAGOS, Mariden 85 95 90 90
17 JANIOLA, Jeneviev 90 95 93 93
18 LAGO, Marvin 90 90 78 84
19 LAGUITAN, Alaiza Marie 87 90 80 85
20 LOZADA, Hazel 89 90 82 86
21 LUMACANG, Ud 85 90 78 83
22 MACAPUNDAG, Neive Ann 88 90 85 87
23 MAGINANG, John Kenneth 90 90 83 87
24 MAGINANG, Justine Kaye 90 90 80 85
25 MAGSINO, Lemuel 88 90 88 89
26 MALABANAN, Kristel 90 95 90 92
27 MALABANAN, Ronnalissa Joy 85 90 88 88
29 MENDOZA, Erica 0 90 0 0
page 2
Test PRACTICE MID TERM MID TERM

JOURNAL EXAM GRADE
30 MERCADO, Jesselle 85 90 85 87
31 MONTILLA, John Dexter 85 80 80 82
32 MORTEL, Michelle 90 90 85 88
33 MUNOZ, Cedierick 90 95 80 87
34 NAVARRO, Edmor 85 90 78 83
35 NILO, Patricia Jhane 93 90 88 90
36 ORBANEJA, Christian 90 95 82 88
37 ORBANEJA, Jerald 89 90 80 85
38 PATARAY, Derick 87 90 85 87
39 PEDERNAL, Cielo 85 90 90 89
40 PEREZ, Maricel P. 85 90 82 85
41 PIAMONTE, Edward Joseph T. 92 95 80 87
42 PRESENTACION, Rea I. 88 95 88 90
43 PURDUNZALAN, Rommel C. 90 85 85 87
44 REBLORA,Yrene, C. 88 95 88 90
45 RETANAN, Rogelio R. 85 90 85 87
46 ROSALES, Cherry Ann F. 88 80 80 82
47 SAN PEDRO, Christian Mark L. 89 90 80 85
48 SANCHEZ, Margilyn 90 90 88 89
49 SORETA, Jyalettte G. 90 90 80 85
50 UNERA, Rissa Mae . 87 85 80 83
51 VERGARA, Leslie Q. 87 95 85 88
52 VERGARA, Leslie, Queen Aubrey 89 90 82 86


Post Closing Trial Balance
Sept. 30. 2019
Account Title Debits Credits
Cash 69,500
Accounts Receivable 2,000
Allowance for Uncollectible Accounts 500
Supplies 1,200
Prepaid Rent 22,000
Inventory 38,000
Furnitures& Fixtures 12,000
Accumulated Depreciation - Furnitures & Fixtures 200
Accounts Payable 35,000
Notes Payable 40,000
Unearned rent revenue 750
Salaries payable 5,500
Interest payable 333
Owner's Capital 60,000
Retained Earnings 2,417
TOTALS 144,700 144,700
T ANAUAN CITY COLLEGE
The CLOSING PROCESS - 10/10/2109

At the end of any interim period the accounting processing is now complete. An interim reporting
period is any period when financial statements are produced other than the end of the
fiscal year.
End of the fiscal year, two (2) final steps are necessary, 1)Closing the temporary accounts & 2)Preparing
Post-Closing Trial Balance.
The Closing processs serves a dual (two) purposes;

1) the temporary accounts (revenues and expenses ) are reduced to zero balances, ready to
measures activity in the upcoming accounting period;
2) these temporary account balances are closed (transferred ) to Retained Earnings to reflect
the changes that have occurred in that account during the period.
Often in intermediate step is to close revenue and expenses to Income Summary, then
Income Summary is closed to Retained Earnings.
Illustration;
1)To close the Sept. 30 Dr. Cr.
Revenue accounts Sales Revenue 38,500
to Income Summary Rent Revenue 250
Income Summary 38,750
to transfer revenue account balances to income aummary
2) To close the expenses Sept. 30

accounts to Income Income Summary 36,333
Summary Cost of Goods Sold 22,000
Salaries expense 10,500
Supplies expense 800
Rent expense 2,000
Depreciation expense 200
Interest expense 333
Bad Debt expense 500
to transfer the expense balances account to Income Summary
Debit Income Summary Credit

Expenses 36,333 38,750 Revenue
2,417 Net Credit Balance
Sep-30 Income Summary 2,417

Cost of Goods Sold 2,417
to transfer income summary to Retained Earnings

Notes - 10/9/2019
STATEMENT OF OWNER'S EQUITY

-Statement of Owner's Equity is also a change statement
- it discloses the sources of changes in the various permanent owner's equity
accounts that occurred during the period

Statement of Owner's Equity
For the Month of September, 2019
Total
Owner Retained Owner's
Equity Earnings Equity
Balance of Sept. 1 owner's equity 0 0 0

Additional Investment 60,000 0 60,000
Net Income for September 2,417 2,417
Balance of Sept. 30 owner's equity 60,000 2,417 62,417

Notes -10/2/2019
ACCOUNTING EQUATION is ASSET IS EQUAL TO LIABILITIES & EQUITY

ASSET = LIABILITIES + EQUITY
1. General Ledger is a collection of storage areas, called Accounts which used to keep track of
increases and decreases in the financial position elements.
2. Asset increases are entered on the debit side of accounts and decreases are entered on the
credit side.
3. Liabiity and Equity accounts increases are credit and decreases are debits.
4. Permanent Accounts represent the basic financial position elements of accounting equation
5. Temporary Accounts keep track of the changes in the retained earnings component of
Stockholder's Equity or Owner's Equity.
6. Each Event or transaction has a dual effect on the accounting equation
7. Double - Entry system - debit side means left side of an account and credit means right side
of an account.
8. Equity is a residual amount, or the owner's interest after deducting liabilities

Equity is;
Owner's Equity for Sole or Single proprietorship;
Partner's Equity for partnership;
Stockholder's Equity for corporations;
Member's Equity for cooperatives or membership organizations;
9. Arrangement and Classification of Assets

Assets are usually arranged according to their promixidty to cash (those nearest to
cash be listed first)
Proper classification requires that assets of similar nature shoud be grouped together.
Basic groupings
Current Assets
Permanent Invesments
Plant, Property & Equipment or Fixed Tangible Assets
Intangible Assets
Other Assets

Notes
EXPENSES - payment for the cost of securing or getting revenues or income

- are gross outflows incurred in generating revenues
NATURE OF EXPENSES
Cost of Goods Sold include the puchase price of the goods and the
expenses in transportating the goods bought
Expenses are costs of operating the business such as rent of store, salaries
of employees, supplies used and other costs used on carrying out the
different business activities.
Cost of Goods Sold and Expenses are both deductions from the
owner's/proprietor account. When expenses are paid in cash, there is a
corresponding decrease in asset, otherwise increase in liability.
Examples or nature of Expenses

1. Salaries expense 11. Medical expense
2. Rent expense 12. Advertising expense
3. Insurance expense 13. Office supplies
4. Utilities expense 14. Store supplies
( electric,water, phone) 15. Repairs & Mainenance
5. Depreciation expense 16. Commission
6. Interest expense 17. Freight Out
7. Bad Debt expense 17. Subcriptions/Periodicals
8. Transportation expense 18. Membership fees
9. Travelling expense 19. Losses
10. Gas & Oil 20. Bank Charges
21. Depreciation
22. Amortization
Subject : REGULATORY FRAMEWORK & LEGAL ISSUES Ramon R. Enriquez, CPA,CIA,MBA
Time : 9:00pm - 12:00pm every Saturday Professor- AY 2019-2020
KEY TERMS - part 2
RESPONSIBILITY - using one's property (both intanglble and tangible) in a manner that does
not unduly infringe on the freedom of others.
BANKRUPTCY - a situation where a firm does not the money or fund to pay its debts or
liabilities.
TORT - a behavior, either intentional or negligent , that harms another person.
ETHICAL ISSUES when a company does business in foreign countries, it encounters different
cultures. Those cultural differences may have different standards of right
and wrong behavior. Those cultures may create unique expectations and
negotiations.There may even be occasion when a business leader from one
country is asked to do something that is considered unethical back home
but perfectly acceptable in the country where the request is made.
Subject : REGULATORY FRAMEWORK & LEGAL ISSUES Ramon R. Enriquez, CPA,CIA,MBA
Time : 9:00pm - 12;00pm every Saturday College Professor- AY 2019-2020
KEY TERMS - part 1
EFFICIENCY - a measure of the relationship between inputs and outputs.
EFFECTIVENESS - a measure of the degree to which a business achieves its goals.
INTEGRATED ASSESSMENT - the simultaneous measurement of variables in different

parts of an organization.
DYNAMIC MEASUREMENTS - measure that include some time element, often comparing
results in different time periods.
PROFIT - total revenues minus total expenses. Summaring all sales or revenues, then
deducting all costs and expenses, considering the total sales or revenues is
higher than the total costs and expenses.
LOSS - opposite of Profit. (Total Costs & Expenses are more than Revenue or Sales.
RETURN ON EQUITY - the amount of profit the firm makes for each Peso it invests. ( ROE )
EARNINGS PER SHARE - earnings or profit the firm earned and to be distributed among its
shareholders.
INDUSTRYWIDE REGULATION - a situation where the government controls the entry of firms
into an industry , the prices they charge, how they operate, and even their exit
from the industry.
MERGER - the joining together of two firms to become a single firm.
ACQUISITION - purchase or buying out of one fIrm by another firm. Sometimes, it occurs
between two firms that compete with one another.
PRICE FIXING - a situaton where rival fims agree to charge the same price for their competing
products.
FREEDOM -the power to make one's own decision or choice without interference from other.
PROPERTY RIGHTS - the freedom to possess and regulate the use of tangible items ( such
land, buildings and intangible items such as a copyrighted piece of music
or a patented invention.
RISK TAKING - the willingness to undertake action without knowing what the result will be.
Subject : REGULATORY FRAMEWORKS & LEGAL ISSUES Ramon R. Enriquez, CPA,CIA,MBA

Time : 9:00am - 12:00pm Saturday Professor- AY 2019-2020
Notes - 03/28/2020 Part 2
GLOBAL COMPETITION and the LEGAL ENVIRONMENT
One of the major issues raised by the globalization of the Philippne economy is the
differences between the legal environment in the Phlippine and other countries. The
basic question is whether or not government regulations in the Philippines may it make
overly difficult for foreign firms to compete. If they do, then the business may find it
necessary to move production fascilities to other countries with less costly legal environ-
ments.The company's top executives may agonize over such a decision because it may do
to Philippine workers,who will lose their jobs and the Philppine communities that will
lose valuable taxpayer and comminity supporter.But in some cases, a failure to move will
mean a loss of competitiveness. One competitiveness is lost, the Phillipine plants will
to close anyway.
One side argues that,within limits, a though legal environment can be a source of compe-
titive advantage not disadvantages.It is argued, first, tough standards will face the firm
to make continous efforts to improve its operations to meet the standards. On the other
sides, with legal environment with full of regulations and these becomes less affordable
to many business. What social good has been served the unbounded litigations that
inflates prices of some highly tradable products, meaning added costs will be added pass
on to consumers.
It may be more expensive in the short run to operate in the Philippine business environ-
ment, on the other hand, the firm that is committed to keeping jobs in the Philippines
can often find a way to do it. ( like BDOs & China Bank.)
Test Case: (Levi Strauss) Takes the High Road
Levi Strauss is known not only for Jeans business but also for its strong sense of corporate
social responsibility. The founding Strauss family surely gets credit on both scores.
In 1980, the company management began to fear that its long-run orientation and
to social responsibility would lead to takeover attempt by outside speculators.
The CEO that time was Robert Haas, a descendant of the founding family and man with
deep commitment to perpertuating the principles which business was operating.
In 1985, Haas, preempted the potential spececulators by taking the company private,
With the control of the stock assurred, Haas and his management team proceeded to
set strict high standards for the working environment. They carefully examined working
conditions in all of their foreign facilities and took corrective actions whenever they
found failures to meet company's standards.
Keeping jobs in the Philippines was an important element of the company's strategy.
Like, Jollibee Foods Corp., our leading food retail business. Hiring undergrate students
so they can earn money to finish studies. Better students who graduated can apply for
other positions at any of its branches or to its subsidairies. (Greenwich, Red Ribbons, &
Double Dragon Properties Corp,) a partnership between Tony Tan Caktiong of Jollibee
& Edgar Injap Sia II of Mang Inasal . Raising Maiden Bond amounting to Php15 Billion to
finance construction of million square meters of leasable properties.
One way to diffuse competiton is Partnership.
CPA,CIA,MBA
Subject : REGULATORY FRAMEWORK & LEGAL ISSUES Ramon R. Enriquez, CPA, CIA,MBA
Time : 9:00am - 12:00pm every Saturday Professor- AY 2019-2020
ASSESSMENT TEST & QUIZ - May 16, 2020
For instruction, see your reminders to Financial Market test.
Questions/Problems;
1. Discuss, Explain or Elaborate what you understand about procedures on "Competitive Bidding &
Negotiated Bidding" particularly on our government system of Bids & Contract.
2. Why is Cooperative not exempt from paying Value Added Tax (VAT)? , Explain
3. Beginnng year 2022, what will be the required Minimum Capital Requirement as mandated by
our Amended Insurance Code to all insurance companies?
4. Can Social Security System (SSS) blame the mining regulator of our government regarding the
closure of Padcal Mines of Philex Mining, where expected PhP 173.5 million cash dividend
every quarter on its investment cannot be received.
5. What's the opportuity lost on the part of the Public, if the Backdoor Listings Rules will not be
reviewed or amended by the Philippine Stock Exchange (PSE).
6. Our manpower labor business is handled by our regulator,Department of Labor and Employment
(DOLE). From this try to define some manpower terms such as;
a. Unemployment
b. Underemployment
c. Overseas Employment (both land-based and sea-based)
e. Contractualization
f. Outsourcing
7. What are issues that Securities and Exchange Commission wants to ease the Bank Secrecy Law
8. Identify some favorable results on the unification of Philippine Stock Exchange ,Inc.(PSE) and the
Philippine Dealings Systems Holdings Corp. (PDS).
9. Give your opinions on the issue of "Cease and Desist Order" to the operation of ABS CBN by the
National Telecommunication Commission (NTC).due to expiration of its "Franchise"
Give your attention to our subject "Regulatory Frameworks & Legal Issues in Business"
when making your update on this current issue.
profile page 2
Teaching Experiences;
At present:
Tanauan City College, Tanauan City (TCC) -College Professor
Dalubhasaan ng Lungsod ng San Pablo, San Pablo City (DLSP) -College Professor
Former:
Marcelino Fule Memorial College (MFMC) -College Professor
Alaminos, Laguna
Technological Institute of the Philippines (TIP) -College Professor
Aurora Blvd.,Quezon City
National College of Business and Arts (NCBA) -College Instructor
Commonwealth Ave., Quezon City
Guzman Institute of Technology -College Instructor
Quiapo, Manila
St. Paul Learning School (SPLS) Senior HS Instructor
Alaminos, Laguna
University of Petroleum and Minerals (UPM) Petroleum Acctg.
Dammam, Saudi Arabia Instructor
Non Teaching Experiences;

At present:
Enriquez, Reyes & Co, CPAs President & CEO
Makati,Manila,Batangas & San Pablo City
Former:
Platinum Plans Philippines,Inc. Phil. Asst. Vice Pres. for Audit
Marcelino Fule Memorial College Phil. Finance Officer
Monterey Farms Corp. (MFC) Phil. Internal Auditor
San Miguel Corp. (Magnolia Div,) Phil. Gen. Acctg. Supervisor
Commission on Audit (COA) Phil. COA State Auditor
Westwood One,Inc. USA Tax Acountant
Smiland Paint Co. USA Production Controller
Arabian American Oil Co. (ARAMCO) Saudi Arabia Project Cost Supervisor
(Northern Area Projects)
Carlos Valdez & Co.CPAs Phil. Junior Auditor
Children: Dra. Ma. Althea - Associate Professor

University of the Philippines (UP), Diliman, Q.C.
Archibald - Asst. Manager, Software Engineering
Accenture, Inc. (Manila,New York, Germany)
Dra. Wedneday Ann - Family Medicine Doctor
Kaiser Permenante Hospital, Los Angeles, CA,USA
Ramon Josua - Facilities Maintenance
Yazaki Torres Manucturing Inc., Makiling,Calamba City
MARY CRISLYN AUSTRIA
EMAIL marycrislynaustria@gmail.com
PERSONAL PROFILE
Personal Data:
Name: RAMON REYES ENRIQUEZ
Address: #24 Porche Ave. Village East, Antipolo City
#251 P. Carandang St. Tanauan City
#73 D. Fandino St., Alaminos Laguna
Date/Place
of Birth: Feb. 22, Lucena City,Quezon
Status: Divorced
Parent: both deceased
Education:
Doctorate: Doctor in Business Administration (DBA) (on line) since 2018
University of Redlands, Redlands,California,USA
Masteral: Master in Business Administration (MBA)
De La Salle University (DLSU), Taft Ave. Manila
College: Bachelor of Science in Business Administration (BSBA) -Major in Accounting
Bachelor of Arts (BA) - Major in Economics
University of Santo Tomas (UST), Espania, Manila
Secondary: Ateneo de San Pablo (AdeSP)
San Pablo City, Laguma
Elementary: De La Salle School
Lipa City, Batangas
Others: BS Political Science (winter class)

Los Angeles City College, LA,CA,USA
Bachelor of Laws, 3rd year
Jose Rizal University (JRU)
Membership:
Philippine Institute of CPAs (PICPA)
American Institute of CPAs,(AICPA) San Francisco Chapter, CA,USA
Institute of Internal Auditor (IIA)
Past President, Rotary Club of Alaminos
Treasurer, Rotary Club of Pasig Sunrise,Pasig City
Accredited Practitioner at;

Bureau of Internal Revenue (BIR)
Securities and Exchange Commisson (SEC)
Bangko Sentral ng Pilipinas (BSP)
Phil. Construction Accreditation Board (PCAB)
Cooperative Development Authority (CDA)
SUMMARY of ON LINE NOTES/DATA/LECTURES DISCUSSED & SENT

Note Series TOPICS DATE
Note 1 Modern Business 03/07/2020 Lectures
- Government Income (Revenues)
-Ways Government Supports Business
- Bureau of Internal Revenue (BIR), Bureau of Customs (BOC)
Note 2 Regulations of Employee Relations 03/14/2020 via email

Note p.1 3 Rules and Industry Standards 03/21/2020 via emai
-Regulated Monopoly
Note p.2 4 Regulations of Consumer Relations 03/28/2020 via email
Note p.1 5 Regulations of Environmental Issues 03/28/2020 via emai
Note p.2 6 Global Competition and the Legal Environment 03/28/2020 via emai
7 KEY TERMS 03/28/2020 via email
8 MID TERM EXAMINATION 04/04/2020 via email
Note 9 Legal Issues on some Business Sectors 04/18/2020 via email
Note 10 Legal Issues on some Business Sectors 04/25/2020 via email
Note 11 Review of Consumer Act 05/02/2020 via email

12 Backdoor Listing Rules 05/02/2020 via email
13 Franchise of ABS-CBN 05/06/2020 via email

14 Updating Labor Laws and Structures 05/09/2020 via email
15 NGCP defends PEDC Acquisition 05/16/2020 via email

16 Confirmation of Commerciality by Department of Energy(DOE) 05/16/2020 via email
17 Voluntary Delisting of Stocks (Chemrez Technologies, Inc.) 05/16/2020 via email
18 ASSESSMENT TEST & QUIZ 05/16/2020 via email
corrected copy 5/21/2020

SEC imposes tougher rules on Credit Lending Firms May 23,2020 Part 2
The Securities and Exchange Commission(SEC) has imposed stricter rules on more than 4,000 credit
lending companies, known as Lending Investors in the country. The new rules require all lending
companies to have paid up capital of at least Php500,000 and to register with the SEC as Corporation.
SEC also ordered these companies to limit their business activities only to granting of direct loans
to consumers. Lending companies should stay away from other credit transactions. SEC also set certain
conditions that will govern the operations of these companies where only capital funds and retained
earnings are to be used for these firms' direct lending business. The rules are in accordance with the
provisions of the Financing Company Act of 1998.
Lending companies are companies, banks, savings and loan associations, pawnshops, cooperatives
and credit units which are engaged prinarily in the business of extending direct loans to consumers.
Lending investors are also required under the rule to secure a Certificate of Authority from the SEC
to operate as lending investors and to be renewed annually.
SEC issued stricter rules and regulations on lending investors due to the proliferation of ""mom and
pop grocer"" type of credit firms that take advantage of the economic crisis and the dire need for credit.
Registration of these firms with the SEC would ensure greater control and supervision on their
activities.
SUGGESTED QUESTIONS ON OBLIGATIONS & CONTRACTS
for Qualifying Examination
1 What are the (5) five sources or basis where Obligations arise from?
2 Identify or Enumerate the six (6) different kind of Obligations.
3 What are ways to Extinguish an Obligation? ( give six (6) ways)
4 How is Obligation maybe modified?
5 Explain the meaning of "Remission of Debt"
6 There is No Contract unless three (3) essential requisites has been concurred and what
are those?
7 Who are the individuals that cannot give consent to a contract?
8 Can you identify or enumerate at least five (5) Void or Inexistent Contracts.
9 In the Object of Contracts, all things which are not outside the commerce of men maybe
the object of a Contract. Cite a thing or things that are outside the commerce
of men.
10 What do you understand in the meaning of " ImpossibleThings or Services"
Prepared and Suggested by;
Ramon R. Enriquez, CPA,CIA,MBA

06/18/2020
July 03.2020
Dr. JOEVELL P. JOVELLANO

VPAA
Tanauan City College
Thru: PROF. USOP M. KASAN

Program Head
BS Management Accounting
Sir Joevell,
Good morning, I hope you and your family are in good condition even at the presence of crisis.
Sir , I sent this letter to present my appeal for consideration regarding my legitimate pay from
from March 17 when classes were suspended till today. When no classes were held, I
dutifully sent notes/lectures/data to all my students thru the gmail of Ms. Crislyn Austria,
the class mayor/president. I had given them the necessary mid term and final exams, even
test and quizzes and subject summary for both Financial Market and Regulatory Frameworks
and Legal Issues in Business. The grading sheets were submitted before the deadline.
I used alternative method of sending my notes thru messenger, instead of the blended/canvass
as requested by most of my class.
Sir, again I hope this will meet your approval and recommendation for payment of my legitimate
unpaid salaries, considering I am not remissed on my teaching obligations on those period.
Thank you very much!
Respectfully yours,
RAMON R. ENRIQUEZ
College Instructor
7/03/2020
BUSINESS TAXATION
(Notes/Lectures/Explanations)
ESTATE TAX
- estate tax is imposed on the transfer of the decedents estate to his heirs and
beneficiaries and it is based on the fair market value of the net estate at the time
of the decedent's death.
Gross Estate- the value of gross estate of the decedent is determined by including the value
of his death of all property, real or tangible or intangible wherever it is situated.
In the case of nonresident alien only that part of the gross estate which is situated
in the Philippines shall be included in the taxable estate.
Gross Estate includes property including under any of the following categories
subject to certain conditions;
1) Decedent's interest to the extent of interest therein at the time of decedent's
death;
2) Transfers in contemplation of death;
3) Revocable transfers;
4) Property passing under general power of appontment;
5) Proceeds of life insurance;
6) Prior interests;
7) The capital of a surviving spouse is not included in decedent's gross estate.
Net Estate - net estate is arrived at by deducting from the fair market value of the decedent's
gross estate the total amount of allowable deductions.
Deductions
1) For citizens of the Philippines
A. Expenses, losses, indebtedness and taxes including
1) Funeral expensess equal to 5% of the gross state but no exceeding Php50,000.
2) Judicial expenses of the testamentary or intestate proceeding,
3) Claims against dthe estate.
4) Claims of deceased against insolvent persons, under certain conditions
5) Unpaid mortgages in favor of the estate under certain conditions;
B. Value of property previously taxed, under cerain conditions;

C. Transfers to or for dthe use of the Philippine Government or any political
subdivision thereof exclusuvely for public purpose.
D. Net Share of the surviving spouse in the conjugal partnership property.
AE 24 STRATEGIC BUSINESS ANALYSIS
TO ANGELICA T OSUNA angelicaosuna082799@gmail.com BSA 3B

THRISHA MAE L. NAGERA thrishamaen@gmail.com BSA 3B
JAMES BRYAN F. SALAZAR franciabryan6@gmail.com BSA 3B
JHONYCO B. SABIT jhonycosabit4321@mail.com BSAIS 3B
DANICA R. MANIMTIM danicamanimtim@gmail.com BSAIS 3B
MODULE 1 Lesson 4
MODULE 1 Lesson 5
MODULE 1 Lesson 6
MODULE 1 Lesson 7
MODULE 2 Lesson 1
MODULE 2 Lesson 2
MODULE 2 Lesson 3
AE 20 ACCOUNTING INFORMATION SYSTEM
MODULE 1 Lesson 1
MODULE 1 Lesson 2
MODULE 1 Lesson 3
MODULE 2 Lesson 1
To: James Edward
Iam sending to you thru your email six (6) pages of notes on AE 24 Strategic Business Analysis.
Please disseminate them to your classmates on BSAIS 3B, AE 24. Advise them to read and
study it since the coverage of your prelim exam will be coming from it.
Asking for a favor from you. Thanks a lot. Regards to everybody.
Ramon R. Enriquez,CPA.CIA.MBA
Course Instructor
10/20/2020
REGULATORS PREPAREDNESS May 23,2020 Part 1
Regulators brace for more work in scrutinizing financial reports. Corporate Regulators and
accounting firms seem to have prepared for the International Accounting Standards (IAS). But
whether there are enough manpower and resources to ensure compliance with stricter accounting
rules is another question.
The responsibility of enforcing the (IAS) rests on three (3) Regulatory bodies. Banko Sentral ng
Pilipinas (BSP) is in charge for banks and quasi- banking entities. The Insurance Commission (IC) takes
care of insurance companies. Practically the rest fall under the Securities and Exchange Commisson
(SEC). The SEC mainly covers listed firms on the stock exchange, public companies, securities brokers
and dealers, financing companies, pre-need firms and firms with secondary licenses. Except for
insurance companies and pre-need firns as well as small and medium enterprises (SMEs) all were
given June 2, to submit IAS compliant financial statements.
So far, there are 413,000 registered companies, there were 83 auditing firms and 314 External
Auditors accredited by SEC. The number of accredited auditors should at least be 1,000 to service
all companies. Enriquez, Reyes & Co.,CPAS is one the SEC accredited auditing firm and Ramon R.
Enriquez, as its President & CEO, is an accredited SEC External Auditor.
For sure, amount of paperwork needed to comply with (IAS) made life more difficult for auditors
and accountants. And this was complicated even more by the fact that accounting standards and Tax
rules are misalinged. Banks faced stricter auditing and prudential regulations. With IAS, more
disclosures will empower stakeholders in making relevant decisions. With IAS, companies are giving
more data/informations and greater public accountability in showing the companies' true worth
or value.
The globalization of financial markets has created the need for consistency in accounting standards
and approaches worldwide.
While companies are burdened to comply with the new accounting rules, the state or government
firms seem not to be worried. At the onset, the commission Audit (COA), the Government body
tasked to monitor government 's finances and examination of its reportorial requirements. COA has
has announced before that government owned and controlled corporations (GOCC) are exempt from
fully implementing the International Accounting Standards (IAS). COA has evaluated the IAS and
concluded that the new system is not entirely applicable to the public sector because of existing .
Accounting and Budgeting policies of the Government.
The audit commission has yet to finalize which provisions of the iAS will be adopted and which ones
will not apply to government agencies.
NGCP defends PEDC Acquisition - May 16, 2020
The National Grid Corp. of the Philippines (NGCP) the operator of country's power
transmission highway reiterated long time ago that the acquisiton of Panay Energy Devep-
ment Corp. (PEDC) is part of its mandate as the entiy in charge of the country's transmission
assets.
NGCP stand by its position that the purchase of facllities of PEDC is really borne out of the
fact that the Energy Regulatory commission (ERC) own definition, these facilities are transmi-
ssion related. They performed transmission functions and because they are transmission in
nature, NGCP believes that they should be under its control,
Some groups have opposed NGCP's acquisition saying that the puchase of PEDC's transmis-
ion assets is a by product of corporate greed and not public service a nd that its runs counter
to the true intent of the Electric Power Industry Reform Act of 2001 (EPIRA).
DOE approved First Phase of PUERTO GALLERA project
The Department of Enegy (DOE) has issued a confirmation of commerciality (COC) to Phil-
lippine Hybrid Energy Systems, Inc. for the first phase of a 16-megawatt wind project in Puerto
Gallera, Oriental Mindoro.
The project will be developed in three (3 phases with a total of 48 Megawatt for a project
cost o PhP 6 billion. It is also the first company to be granted COC to a project located in the
missionary area not covered by the feed-in tariff.
CHEMREZ mulls VOLUNTARY DELISTING
Chemrez Technologies, Inc.is willing to voluntary delist from the Philippine Stock Exchange
(PSE) ths year if it is no longer able to comply with the mnimum public float upon the comple-
tion of the tender offer by its parent company D & L Industries, Inc.
If as result of the tender offer, the ownership falls below requirement of ten (10) percent
public ownership , it will initiate voluntary delisting rather than wait for the Philippine
Stock Exchange to institute involuntary listings of its stocks. Philippine Stock Exchange (PSE)
is the only country's stock market. It has no intention to turn the company into a "listed shell
entity".
Note ; Pls, don't hesitate to ask Crislyn or email me if you have clarification, question, and
further explanations on topics I have sent to Crislyn and forwarded to you, thanks!
AMENDMENT to BANK SECRECY LAW (Part 2 - May 9, 2020)
The Securities and Exchange Commission (SEC) had endorsed a bill that will ease the bank
secrecy rules to allow securities fraud investigation. Lifting bank secrecy is necessary for the
Philippine to become a signatory to an international agreement.
This legislation is needed that would consist of lifting the bank secrecy law in the aspect
secuties investigation. This amandment could be made then to RA 8799 or the Securities and
Exchange Code, which already lays out SEC powers to probe investment scams, that is to allow
access to bank records during securities fraud investigations.
SEC Chairman I argued what if a country outside is doing investigation and they would like
information from us, and what if that information is concerning a bank account that we cannot
give them. That also prevents us from asking their help because how wll they help us is we do
not help them.
The Department of Finance which oversees SEC has also been pushing for amendments to
RA 1405 or the Bank Secrecy Law to allow tax authorities to look into bank records during tax
investigations. A bill submitted by the Bureau of Internal Revenue (BIR) also for this matter.
UNIFICATION of PHILIPPINE STOCK EXCANGE, Inc, and PHILIPPINE DEALING

SYSTEMS HOLDINGs Corp.
The Philippne Stock Exchange, Inc. (PSE) is operating the local bourse (stock market) and
the Philippine Dealings |systems Holdings Corp. (PDS) operates the country's secondary
market platform had a move to unified the rwo regulators.
The unification will bring about favorable results to the investing public by lessening the
cost of nvesting in the capital market. And at the same time it will not result into monopoly.
The merger would provide a more competitive landscape for the Philippine Capital Markets.
UPDATING LABOR LAWS and STRUCTURE (Part 1 - May 9, 2020)
The Labor Deparment continues to operate on outdated structures and an overhaul is very
much needed if the government would want to improve its scorecard in terms of contributing
to reducing unemployment and underemployment and protecting overseas employment.
Several labor issues remain unresolved like the government has continued to be ambivalent
towards employent tenure issues particularly, " contractualization" or keeping workers in a
contractual state and outsourcing .
Employers have been finding ways and getting away with it, to circumvent a stipulation in the
law that requires new hires serving for six (6) months to be given permanent status in the
companies,
The Department of Labor (DOLE) will have to do its job of amending this decades old provision
which is no longer attuned to current conditions and it is not being enforced effectively. For
DOLE to just look the other way hoping that there is nothing controversial that will result from
this inaction is disservice to both employee and employer.
In the same way, questions on outsourcing have to be resolved. Similar to the questionable
contractual labor arrangements, workers are left feeling cheated after working for small
""outsourcing"" companies that are protected by law from not implementing permanency rules.
In these outsourcing firms, workers serve for a lifetime without securityof tenure and getting
only a minimum or slightly above minimum wages. When these workers retire, they receive
barely enough to subsist on their old age even they receive a pension from SSS.
The issues are tricky with both parties, workers and employees taking positions of a long, long
pole, meaning they cannot agree in common, they just take each own position. While global
trends even in the affluent economies recornize contractual and outsourcing work as acceptable
parameters of employment, the Philippine government has managed to avoid taking a stand on
these,
Labor Day is not just about pronouncements on giving workers their just compensation,
whether it is in the form of higher minimum wage or an additional packcage of non-wage
benefits.There is also a problem of underemployment where both skilled and unskilled workers
are getting paid less then they need to live in a humane manner.
The government should nor neglect the milion of million Filipinos working overseas. Many
deserve better protection not just from abusive employers, but also substandard working
conditions. And when they come back, from overseas employment, they should also be able to
find that they can comfortably live off their hard-earned savings
A lot of work needs to be done as the governent is still sorely lacking a definitive policy as
the frameworks towards how it plans to reduce unemployment that continues to badger the
the society and the economy.
Time : 9:00ampm - 12:00pm every Saturday Professor- AY 2019-2020
FRANCHISES- May 06, 2020
Our last class session on Regulatory Frameworks and Legal Issues in Business, before classes
suspension, I told you about the expiration of ABS CBN franchise in operating broadcasting
activities due on May 4, 2020, just in time the Congress is on vacation and not in session.
May 5, 2020 came and National Telecommunication Commission (NTC) gave the the order
to cease and desist order for ABS CBN in their broadcasting business, including their radio
operations like DZMM 630. For those who are present in my class that time,you'll better know
and understand what Iam saying. This real case is the wide eyes opener and lucky for you that
this happened when you are taking the subject at this semester and sorry for those absent.
Any comments, suggestions, threats are just opinions, what is important are the legal issues
that will be discussed or accepted by the Supreme Court, the highest body of our judicial
system. Remember NTC is the regulatory body and Congress will be the one to give the franchise.
Again, a good example in business and political subjects.

Hi Crislyn,
How are your now?, how's everybody in your classes? Well, I hope things are getting better for
all out there.
Regarding your mid term examination, I authorize you to make the correction of all their exam
test papers. In all of they have 10 questions, weighing 10 points each, thereby 100% is the total
highest score. Check them and put your best assessment of their answers and tally all and put
their total final mid term exam results. Remember these exam results, I''ll give the mid term
grade, once you have sent all their names with corresponding exam results. For those who
have not submitted their test papers leave them, just write their names, a month is too much
to comply. I don't subscribed to mass promotion, it makes them lazy and easy going.
Pls send the list to my email or messenger and as usual additional favors from you.
Thanks!
Sir Mon R. Enriquez

5/05/2020
CECION TRADING
BARANGAY 11, ALAMINOS, LAGUNA
(In Phiippine Peso)
NET FINANCING CONTRACTING CAPACITY (NFCC)
A.
1. TOTAL ASSETS 9,000,029.15
2. CURRENT ASSETS 8,193,270.45
3. TOTAL LIABILITIES 6,535,897.00
4. CURRENT LIABILITES 6,035,897.00
5. NET WORTH (1-3) 2,464,132.15
6 NET WORKING CAPTAL 2,157,373.45
B. The Net Financial Contracting Capacity (NFCC) based on the above data is computed as follows;
NFCC = ( Current Assets - Current Liabilities ) minus the value of all outstanding works undergoing
contracts including awarded contract yet to be started..
XK = 10 for the contrast duration of one year or less. 15 for more that one (1) year up to two(2)
years and 20 for more that two (2) years.
NFCC = 10 (8,193,270.45 - 6,035,897) - 0.00 = 2,157,373.45
Prepared by;
JEMMERSON R. TICZON
Owner/Manager
CECION TRADING
CECION TRADING
STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2018
(In Philippine Peso)
Cash Flows from Operating Activities;

Cash received from Customers 453,486.00
Capital 2,500,000.00
Tax Credit - Income tax - 2,270.45
Increase in Accrued taxes payable 24,348.35
Account payables and other liabilities 5,769,148.65
Purchases - 2,858,931.50
Personal Withdrawal - 30,000.00
Cash payment for Operating Activities:

Motor vehicle - 707,000.00
Furniture & Fixtures - 129,000.00
Cash Payments for Operating Expenses

Salaries and allowances 911,332.35
Telephone, Postage & Telegram 56,270.00
Transportation and Travel 4,999.70
Taxes and Licenses 33,179.00
Depreciation 133,000.00
Total Operating Expenses - 1,138,781.05
Net Increase in Cash and Cash Equivalents 3,881,000.00

Add: Cash and Cash Equivalents - beginning of the year -
Cash and Cash Equivalents - at the end of the year 3,881,000.00
CECION TRADING
INCOME STATEMENT
For the Year Ended December 31, 2018
SALES 2,227,045.00
COST OF SALES
Merchandise Inventory - beginning 55,200.00
Add; Purchases 2,858,931.50
Goods Available for Sale 2,914,131.50
Less: Merhandise Inventory - end 1,800,000.00
Total Cost of Sales 1,114,131.50
GROSS MARGIN 1,112,913.50
OPERATING EXPENSES
Salaries & Allowances 911,332.35
Telephone,Postage & Telegram 56,270.00
Transportation &Travel 5,000.00
Taxes & L:icenses 13,179.00
Depreciation 133,000.00
Total Operating Expenses 1,118,781.35
NET LOSS - 5,867.85

CECION TRADING
BALANCE SHEET
December 31, 2018
ASSETS
Current Assets:
Cash on Hand and in Banks 3,881,000.00
Account Receivab;es 2,510,000.00
Inventories 1,800,000.00
Tax Credit receivables - Income Tax 2,270.45
Total Current Assets 8,193,270.45
Property and Equipment - at Cost

Motor Vehicles 707,000.00
Furnitures & Fixtures 129,000.00
Other Equipments 13,220.00
Total 849,220.00
Less: Accumulated Depreciation - 42,461.30
Total Property and Equipment - net 806,758.70
TOTAL ASSETS 9,000,029.15
LIABILITIES & PROPRIETOR'S EQUITY

Current Liabilities
Account Payables 5,769,148.65
Accrued Taxes Payables 24,348.35
Miscellaneous Payables 242,400.00
Total Current Liabilities 6,035,897.00
Long Term Liabilities

Loans Payables 500,000.00
Total Liabilities 6,535,897.00
Proprietor's Equity
Jemmerson R. Ticson, Capital 2,500,000.00
Less: Net Loss - 5,867.85
Personal Withdrawal - 30,000.00
Personal Equity - Net 2,464,132.15
TOTAL LIABILITIES & PROPRIETOR'S EQUITY 9,000,029.15

-
On Line Notes/Data/Lectures - 5/02/2020
REVIEW of CONSUMER ACT
Non-government organization Philippine Metrology Standards Testing and Quality, Inc. (PhilMSTQ)
is calling for the review of the Consumer Act of the Philippines to remove the development of product
quality standards in the hands of government and leave it to the private sector instead, to allow local
firms to become more competitive.
The Consumer Act needs to be revised noting that develoipments standards for the quality of
products should be handled by the private sector.
When you regulate quality, you constrict the private sector from innovation or changes. Leaving
the development of standards on whether the products can perform the function it should serve or
not the private sector is even more important now as the country is a member of Association of South-
east Asian Nations for Economic Community, Asian Economic Community is almost there and we have
to operate in a global market.
Backdoor Listing Rules
The Philippine Stock Exchange (PSE) has granted the public more time to comment on the planned
tightening of backdoor listing rules.
The Securities and Exchange Commission defines backdoor listing as a process of taking over and
reorganized listed, but otherwise dormant corporations without going through the requirements for
registration. And cheaper and faster to achieve listing status.
The main changes proposed by PSE are requirement on public offering and the expanded definition
of backdoor listing. PSE is planning to mandate that listed via backdoor to conduct a pubic offering
before it will be allowed to conduct a private fundraising exercise including private placements
and swaps.
Recent backdoor listings in the local bourse includes brandy maker Emperador Inc. (through Touch
Solutions, Inc.),a local unit of Macau casino giant Melco Crown International Ltd. (through Manchester
International Holdings Unlimited Corp. LT Group Inc, of magnate Lucio Tan (through Tanduay Holdings
Inc.) that raised Php16.2 billion, Php37.7 billion, and Php15.1 billion, respectively via private share
sales.
The review aims to clarify the circumstances that trigger the application of backdoor listings and the
clamor from the market to give the public an opportunity to participate in fund raising initiatives of a
company that is backdoor listed.
Currently there are no restrictions or requirements in the subsequent modes of fundraising activities
for a listed company that underwent backdoor listing.
Note: dormant means silent, not moving, not active
On Line Notes/Data/Lectures - 4/25/2020

LEGAL ISSUES on SOME SECTORS of our BUSINESS (continuation)
4. SELLING to COOPERATIVES
Are sales to a Cooperative, duly registered with the Cooperative Development Authority
(CDA) uder Republic Act. No. 6938, known as the Cooperative Code of the Philippines, exempt
from the (VAT) Value Added Tax payment.?
Sales to Cooperatives, whether or not these are registered with the CDA, are subject to VAT
This is because VAT Is a statutory liability of the seller of goods and services. In the absence of
any showing that the seller is exempt from the tax, the sale cannot be exempted from the
the imposition of VAT.
VAT is an Indirect Tax and the amount of tax may be shifted to and passed on the buyer
transferee or lesse of the goods, properties or services.Therefore, since cooperatives do not
enjoy exemption from indirect taxes, they are liable to shoulder the burden of the passed on
VAT on their purchases of goods and services where tax forms part of acquisition.
5. SSS Hopeful of Continuous Padcal Operation

The Social Security System (SSS), the state owned pension fund for private employees, said
it is hopeful the government would finally lift the suspension order on Philex Mining Corp.'s
Padcal Mine operations in Benguet.
SSS which has over Php 18 Billion in investments in Philex Mining is being deprived of some
of Php 173.5 million in potential cash dividend every quarter that the Padcal gold and copper
mine is closed. We are hopeful that authorities will grant continuance of its operations in Padcal
mines.
The government has ordered the closing of the Padcal Mine because of tailings pond overflow
caused by heavy rains. SSS holds around one Billion shares in Philex and this is the pension
fund of private employees.
Issue: Can SSS run against Philex Mining to recover its loss cash dividend or witdraw its
investments?
6. INSURANCE COMMISSION (41 Insurers Compliant with Php 550 Million Capital Requirement)
The Insurance Commission reported that 41 local insurance companies have already complied
with the required minimum capital requirements of Php550 Million.
Under the amended Insurance Code, existing insurer must have a net worth of Php500
million by December 2016, increase this by Php350 million by December 2019 and further by
Php400 million by December, 2022.
New players or new insurance companies requires to have a paid up capital of Php 1 Billion.
The bulk or 24 out of 27 existing life- insurance companies in the country had complied.
Of the 66 authorized non-life insurances, 13 have met so far the Php550 Million minimum
capital requirement.
Issue: What will happen if some insurance companies cannot comply the minimum capital?
Subject : REGULATORY FRAMEWORKS & LEGAL Ramon R. Enriquez, CPA,CIA,MBA
Notes/Data/ On line Lectures - 4/18/2020
LEGAL ISSUES on SOME SECTORS of our BUSINESS
1. Power Sector Assets and Liabilities Management (PSALM) Corp. Officer in Charge Lourdes S.
Alzona has been formally named chief executive at the state firm, a move to resolve the
leadeship vacuum there following the suspension of her predecessor, Emmnuel R. Ledesma.
The Governance Commission for GOCCs, through a representative had declined to
comment on the matter. Sources alleged the main reason for the suspension was PSALM's
decision to change the mode of procurement for the rehabilitation works in the Agus Hydro-
power plant. PSALM board of directors, accused Ledesma of switching from competitive bidding
to a negotiated bidding for the rehabilitation of a unit of ther Agus 6 Hydropower plan.
Is it justifiable to change the mode or the manner of bidding just by the order of an executive
specially when it comes to government contract.?
Alzona is a CPA, a Business Administration graduate from Philippine Women's

University and has 33 years of public service of which 20 years at NAPOCOR.
2. Local manufacturers want more electric vehicles (EVs) plying the country roads and replace
aging jeepneys and tricycles.
With new franchises being granted by LTFRB (Land Transportation Franchising and Regulatory
Board.) only to alternative fueled vehicles, (EVs) are the top viable options.
With the growing concern for environmental protection and with the impending implementation
of eco friendly Euro 4 compliance for diesel engines, push for electric vehicles for mass public
transport is gainng momemtum.
E-jeepney fleets are now running in Makati City, Alabang, Bacoor, Quezon City. The call of
transport groups and the government to help put the mainstream in the use of e-jeepney and
e-trikes.
If the government regulatory body make it mandatory for the use of e-jeepney and e-trikes, can
all operators or owners have the financial means to follow?
3. The private sector winner of a project to expand and operate the Light Rail Transit (LRT) Line 1
In talks with the government on a potential increase of train fares ahead of its planned
takeover next month.
Ayala Corp. and Metro Pacific Investments Corp. were on the informing the government to
resume operations of LRT 1 by September. One of the issues to be taken up was the existing
trains fare which is only 90% of what is committed as a requirement of the contract.
Can the two (2) companies will still resume operation even if the remaining 10% will not be
granted?
Subject: REGULATORY FRAMEWORKS & LEGAL ISSUES Ramon R. Enriquez, CPA,CIA,MBA
Notes/Data/ On line Lectures - 03/28/2020

REGULATION of ENVIRONMENTAL ISSUES - Part 1
Many parts of the country suffered air and water pollution. These problems became serious that the
government stepped in with regulations that reduced and raised the quality of the nation's
air and water.Once the public became aware of government ability to protect the environ-
ment particularly our Dept. of Environment and Natural Resources (DENR), other environ-
mental issues arose. Among those greatest concern to business are issues of mining,
geothermal power operations, solid waste disposal and protecting endangered species.
Three (3) areas of environmental regulations such 1)air 2) water pollutions 3) toxic subtances affect
substancial number of businesses. DENR is the government support by issuing various laws
regulations, guidelines in operating their businesses if our environment and natural
resources will be affected.
Ex. LTO requires all motor vehicles before registration must pass "smoking test". This is one
way to reduce or eliminating the emission of contaminants into the air and water or food.
ZONING
Zoning regulations are normally the purview of city and local governments. These regulations
are legal restrictions where the business or one of its units can be located. Cities and towns
typically reserve many locations for private homes and row houses or other nonbusiness uses.
They often designate areas as high-density residentail, light commercial, shopping centers or
manufacturing, among others. The logic is compelling, A busines of a significant size operating
in a residential neighborhood can damage the physical and psychologial appeal to the neigh-
borhood. Even small business operating out of a home have potential to upset the neighbors.
Zoning ordinances or regulations provide sense of order in a community but thay do not limit
how a business can operate.
Ex. First Philippine Industrial Park (FPIP) at Sto Tomas/Tanauan City. Where various multina-
tional companies are located and operating.
Another is the Light and Science Park at Sto Tomas, Lima Technopark at Malvar Batangas
Bataan Export Processing Zone. These companies are mandated to be there, to put
distances with community .
Although the government needs taxes/licenses as source of revenue, our citizens must be
protected also by government regulations and frameworks in their conducts.
CITY/TOWN LICENSES & PERMITS

Many cities/towns of one form or another requires taxes or fees in addition to those collected
by the national government, which may cause additional burden on some businesses.
Ex. Mayors and business permits/fees paid on their businesses although these taxes/fees
discourage business sometimes opposites occurs. A large or big businesses are considering
moving into a city may be able to negotiate favorable concessions from the city government
Ex. Hiring of employees/workers from that particular city/town as part of the concessions.
Dear Crislyn,
Please remind everybody that their Mid Year Examination will cover all notes /lectures since day one
(1) of our classes both Financial Market and Regulatory Framework.
Therefore they have few more days to arrange or copy/file the notes I've sent, including some
discussions we have done before the lock down.
Thanks again, I hope this will not be added burden on you. Regards to all!
Sincerely,
Sir Mon R. Enriquez

4/04/2020

Notes - 03/21/2020 Part 2

REGULATION of CONSUMER RELATIONS
If consumers were all-knowing and all businesses were totally committed to providing information
there will be little need for consumer legislations, however that consumers do not always
have adequate knowledge. Thus there are situations where legal protection may be justified.
Some laws or regulations help assure products received needed informations about product
they buy. Others, help assure products safety. Still others guard against business using
deceptive or unfair practices. These regulations really address the responsibilities that
business should have toward its customers.
Highlights of Consumer Protection;

1. Food and Drug Administration (FDA)
* Charge to set and enforce standards for safety, purity, production cleanliness,efficacy and
labelling of food products.
2. National Traffic and Motor Vehicle safety
* Charge to gives both natonal and local traffic safety offices authority to set and enforce
standards for motor vehicle registration , safety and fuel economy. (smoke belching)
3. Fair Packaging and Labeling;
* Requires the manufacturers to clearly state the contents of a package in a prominent
place and use a unit of measurements appropriate to the product.
4. Truth-in-Lending Act;
* Applies to consumers credit loans: requires the lender to disclose the amount of the
finance charges, and the annual percentage of interest.
note; all banks should display this informatons, most probably at banks lobby.
5. Consumer Product Safety;
* A commision is charge to set consumer product safety standards, ban hazardous consumer
products and requires manfacturers to report defects and danger in their products
Consumer protection is also provided by the agencies regulating specific industries.

National Telecommuniction Commission (NTC)
- regulates the communication industry
Civil Aviation Board (CAD)

- regulates the civil aviation industry
Garments and Textile Board (GTB)

- regulates the operation of our garment & textile industry
ex. Customs Bonded Warehouse (CBW)
References: Central Bank of the Phil. (CB), Dept. of Trade & Industry (DTI), Dept. of Transportation &
Communication

Notes - 03/21/2020 Part 1
RULES and INDUSTRY STANDARDS
Industry Standards can promote investment by encouraging product standards, process standards
or other rules of competition for a given industry.
The industry and the government are working together to develop standard that is
acceptable to both industry like television. computer and internet.
The establishment of clear sets of rules and guidelines, coupled with their fair enforcement
provides structure and frameworks for every industry. These standards are desinged to
protect consumers and also to give manufacturers opportunities to develop new products
that are safe and competitive.
ex. The packaging sacks or plastic for rice, cane sugar, wheat flour, as well as cement, animal
feeds must bear the exact weight, the composition and corresponding calories,proteins
minerals, vitamins so that consumers be well infomed. Our Department of Trade
Industry (DTI) through Philippine Standard Commission as the watch dog, consumer
goods must indicate mnufactured date and expiration date.
There is however, a danger with rules. Sometimes they are written in a way that helps some
companies in an industry more than others and may even be harm to certain companies and
by encouraging government to write rules in their favor. This puts potential new competitor
at a disadvantage.
PROTECTING COMPETITION
One important aspect of framework is regulation of Monopolies
Some cases monopoly power hinders consumers while in others monopoly power harms competition
among businesses.
Monopoly - a single firm or company gaining too large a share of the market or it may involve several
firms or companies trying to eliminate or at least cripple a potential rival.
Regulated Monopoly - a single firm or companies performing alone on certain industry or business.
Like electricity,MERALCO cannot just raise charges without government approval,
Like using call/test message, charges by Globe or Smart or TNT, is controlled by the govt.
Even water usage, certain rates must be observed, even transportation fares also must
be the same even though transporting companies are different.(JAC Liner, DMMTB.
N de la Rosa Liner, Raymond Transportation, Superlines,MRT, LRT.jeepney. Tricycles,etc.)
References: Dept of Trade & industry (DTI), Dept. of Transportation and Communications

Notes - 03/14/2020
REGULATION of EMPLOYEE RELATIONS
Over the decades, the Government has developed an extensive array of laws and regulations to
support (frameworks) to effect companies' relations with their employees.
Three (3) broad categories on this relationship:

1 Discrimination
2 Working Conditions & Compensation
3 Unionization
Benefits:
Compensation really consists of two (2) areas;
1)benefits and (2)pay (salary and wages)
Benefits consist of security of tenure , safety and health insurance coverage, pension, paid
holidays and vacations sick leaves, 13th month pay,employee services such as
counselling and child care child care.
Benefits are more relevant for those employee that match to their specific needs,
Many business demonstrate their commitment to empoyee's growth and develoment through
support of education and training. Training is an investment in people to help assure that
business will have the skills and backgrounds that it needs.
Sexual Harassment constitute a form of sex discrimination.

Sexual harasssment occurs when hiring, promotion, or benefits are contingent upon sexual favors.
Sexual harassment emcompasses the presence of a hostile environment like unwelcome comments,
conducts and behaviors that are offensive.
Minimum Wage Law - government support by mandating that all employers must pay their workers
the minimum wage and pay and pay higher wages for ovetime work.
Collective Bargaining - the process through which company and union representatives work together
to negotiate a labor agreement.
Union - employees and workers group themselves to represent them to the management.
References: Labor Code of the Philippines. National Labor Commission (NLRC), Employers
Confederation of the Philippine (ECOP)

NOTES - 10/10/2019
REVENUES - sources of income or receipts or money values received

'- are gross inflows resulting from providing goods or services to customers
Examples or nature of revenues;

1. Sales income 12. Contracts(long term &short term)
2. Rent Income 13. Leasing
3. Interest Income 14. Taxes
4. Salaries & Wages 15. Plane Fares
5. Commission Income 16. Boat Fares/Tickets
6. Parking Fees 17. Bus/Jeep/Tricycle Fares
7. Brokers'Fees 18. Gates Receipts
8. Service Fees (catering, funeral) 19. Cinema Tickets
9. Tuition Fees 20. Winnings
10. Dividends 21. Miscellaneous Income
11. Tuition Fees
Other Sources o Income are such as Interest on Notes on Hand or Notes Receivables,
Rent from Tenants, commission from sale of items other than owned by the busines.
Methods of Recording Income

1) Income Method
2) Liability Method
Ex. On Oct. 30. the owner received Php 10,000 for two (2) months of the tenant who is
occupying a space at his property.
Income Method Liability Method
Sept. 30 Cash 10,000 Cash 10,000

Rent Inome 10,000 Unearned Income 10,000
COURSE IDENTIFICATION
Course Title BUSINESS LAWS Course Code ACCT12
Course Credit 3 Hours per Week 3
Course PreRequisite NONE Course Co-Requisite NONE
Curriculum BSMA Semester 1st Semester AY 2019-2020
Course Description This course introduces the student to the country's various business ànd its applicable laws
as a guide to its implementation and regulations
Student Outcomes 1. Articulate a clear understanding of the meaning and interpretation of laws in running its
(SOs) addressed by particular business
the Course 2. Articulate a clear understanding and interpretation of a business laws by issuing rules,
guidelines or circulars in its implemetation
3. Distinguish what are current or latest laws being implemented from deleted or repeal
laws to avoid misapplication
4. Orient the the students that laws are made to direct citizens to the right and proper
procedures in conducting a particular business and activities
Performance Indicators * All discussion questions are answered completely with examples
* Responses are with basis of possible references or sources
* Each topic discussed with relevance and with in depth analysis
* Responses to classmates are positive and leading to expanded discussion
Course Intended Learning At the end of this course, the students should be able to:
Outcomes ( CILO) 1. Analysis and understand various laws and regulations
2. Identify the different kinds of Business laws
3. Identify the forms of Business with each correspodning applicable laws & regulations
4. Understand purposes or justifications these laws are needed for this kind of business
Module Teaching-learning Activities Time Frame Learning Outcomes Assessment/Evaluation
Subject Matter/Topic (TLA) Hours Weeks
Introduction, Definitions, 1 Orientation 3 1 The student to be expected 1. Lectures

and what are these business 2 Definition to know and undestand 2. Group Discussions
laws 3 Classroom Discussion Business laws 3. Hand outs
Different kinds of Business/ 1. Lectures, 3 2 To identify what kind of 1. Lectures/Hand outs

Industries 2. Business Laws discussion laws to be applied to a 2. Recitation
3. Studying implementing laws particular business 3. Class discussions
4. Citing business law
Laws,codes ,regulations,circulars 1. Lectures, 3 3 To identify what kind of 1. Lectures/Hand outs

arising from a specific 2. Business Laws discussion laws to be applied to a 2. Recitation
business 3. Studying implementing particular business 3. Citing articles
rules & regulations 4. Class discussions
General Banking Act 1. Lectures, 3 4 To identify what kind of 1. Lectures/Hand outs

Bank Secrecy Law 2. Business Laws discussion laws to be applied to a 2. Recitation
Anti Money Laundering Act 3. Studying implementing particular business 3. Citing articles
Rural Bank Act rules & regulations 4. Class discussions
Laws & regulations on Investment 1. Lectures, 3 5 To identify what kind of 1. Lectures/Hand outs
Pawnshop,Financing 2. Business Laws discussion laws to be applied to a 2. Recitation
3. Studying implementing particular business 3. Citing articles
Laws & regulations on organizing 1. Lectures, 3 6 To identify what kind of 1. Lectures/Hand outs
Sole Proprietorship,Partneship 2. Business Laws discussion laws to be applied to a 2. Recitation
3. Studying implementing particular business 3. Groups organization
Corporation Code 1. Lectures, 3 7 To identify what kind of 1. Lectures/Hand outs

Securities & Exchange Commission 2. Articles discussion laws to be applied to a 2. Recitation
Government Owned and Controlled 3. Studying celebrated cases particular business 3. Class discussion
Corp. (GOCC) 4. Test
MID TERM ASSESSMENT
Laws on Transportation and 1. Lectures, 3 9 To identify what kind of 1. Sample of contract

Communication 2. Articles discussion laws to be applied to a 2. Class discussion
Land Transportation Commission 3. Studying celebrated cases particular business 3. Class reaction survey
Land Transportation Franchising 4. Q & A portion
Regulatory Board
National Telecomunication Comm. 1. Lectures, 3 10 To identify what kind of 1. Lectures/Hand outs

Philippine Postal Office 2. Articles discussion laws to be applied to a 2. Recitation
3. Studying celebrated cases particular business 3. Groups discussion
4. Q & A portion
Maritime Law 1. Lectures, 3 11 To identify what kind of 1. Lectures/Hand outs

Bottomry 2. Articles discussion laws to be applied to a 2. Recitation
4. Q & A portion
Insurance Law 1. Lectures, 3 12 To identify what kind of 1. Lectures/Hand outs

Reinsurrance 2. Articles discussion laws to be applied to a 2. Recitation
Fidelity and Guaranty 3. Studying celebrated cases particular business 3. Groups discussion
Philippine Deposit Insurance Corp 4. Q & A portion
Civil Aviation Authority 1. Lectures, 3 13 To identify what kind of 1. Lectures/Hand outs

Civil Aerounatics Board 2. Articles discussion regulations to be applied to a 2. Recitation
4. Q & A portion
Agriculture & AgrarianLaw 3 14

(Agri-Agra Law)
EPIRA - Electric Power Industry 3 15

Reform Act
National Grid Corp. of the Phil.
National Electrification
Administration
3 16
3 17 1. Lectures/Hand outs
2. Recitation
3. Groups discussion
4. Review
FINAL ASSESSMENT
BACHELOR OF SCIENCE IN Course Code: ACCT10 Prepared by:

MANAGEMENT ACCOUNTING Course Title: BUSINESS LAWS
First Semester A.Y. 2019-2020 Rev. No.
Date Revised: Ramon R. Enriquez, CPA,CIA,MBA
Faculty
Checked by:
Approved by:
Dean/Program Head
DR. JOEVELL P. JOVELLANO
VPAA
Course Title OBLIGATIONS & CONTRACTS Course Code ACCT10
Curriculum BSMA Semester 1st Semester AY 2019-2020
Course Description This course introduces the student to the various obligations and contracts of not only as individual,
but as a partner or a member of business organization like corporation
Student Outcomes 1. Articulate a clear understanding of the meaning Obligation and Contracts
(SOs) addressed by 2. Enumerate various sources of obligation
the Course 3. The nature and effect of Obligations
4. Explain the different kinds of Obligations
5.Articulate how Obligations can be extinguish
6. Enumerate the essential requisites of contracts
7. Identify the form of Conracts,its interpretation and reformation
* Responses are with basis if possible references or sources
Outcomes ( CILO) 1. Analysis and understand various source of obligations and contracts
2. Identify the different kinds of Obligations
3. Identify the forms of Contracts. Reformationand interpretation

and meaning of Obligations 2 Definition to know and undestand 2. Group Discussions
General Provisions 3 Classroom Discussion Obligations 3. Hand outs
Different kinds of Obligations
Obligations arising from Law 1. Lectures, 3 2 To identify what kind of 1. Lectures/Hand outs
Obligations arising from 2. Articles discussion obligation to be applied 2. Recitation
Contracts 3. Studying celebrated cases To analyze cases what arises 3. Class discussions
Obligations arising from obligations 4. Citing articles
Quasi-contracts
Obligations arising from 1. Lectures, 3 3 To identify what kind of 1. Lectures/Hand outs

Quasi-delicts 2. Articles discussion obligation to be applied 2. Recitation
Obligations arising from acts 3. Studying celebrated cases To analyze cases what arises 3. Citing articles
or omissions punished by obligations 4. Class discussions
law
Extinguishment of Obligation 1. Lectures, 3 4 To expound what articles 1. Lectures/Hand outs

Kind of Extinguishment 2. Articles discussion are about 2. Recitation
By Payment or Performance 3. Studying celebrated cases Identify what obligations fall 3. Citing articles
By the loss of the thing due this situation 4. Class discussions
By the condonation, or
remission
By the confusion, or merger 1. Lectures, 3 5 To identify what kind of 1. Lectures/Hand outs

of the rights of creditor 2. Articles discussion obligation to be applied 2. Recitation
and debtor 3. Studying celebrated cases To analyze cases what arises 3. Citing articles
obligations 4. Class discussions
By Novation 1. Lectures, 3 6 To identify what kind of 1. Lectures/Hand outs
By Compensation 2. Articles discussion obligations to be applied 2. Recitation
3. Studying celebrated cases 3. Citing articles
4. Q & A portion
Natural Obligations 1. Lectures, 3 7 To understand natural and 1. Lectures/Hand outs

Kinds of Natural Obligations 2. Articles discussion legal obligations 2. Recitation
3. Studying celebrated cases 3. Groups discussions
4. Q & A portion
MIDTERM ASSESSMENT
Definition/Explanation of 1. Lectures, 9 To identify what kind of 1. Sample of contract

Contract 2. Articles discussion conracts to be applied 2. Class discussion
General Provisions 3. Studying celebrated cases To analyze cases what arises 3. Class reaction survey
these contracts 4. Q & A portion
Essentials Requisites of 1. Lectures, 3 10 To identify what kind of 1. Lectures/Hand outs

Contracts 2. Articles discussion conracts to be applied 2. Recitation
General Provisions 3. Studying celebrated cases To analyze cases what arises 3. Q & A portion
these contracts
Cause of Contracts 1.Lectures 3 11 To identify what kind of 1. Lectures/Hand outs

Forms of Contract 2. Articles discussion conracts to be applied 2. Recitation
3. Analysis of celebrated cases To analyze cases what arises 3. Groups organization
these contracts
Reformation of Instruments 1. Lectures 3 12 To learn what are needed to 1. Lectures/Hand outs

3. Class discussions have entered into contracts 2. Recitation
To study rules in perfecting 3. Groups discussions
a contract 4. Test
Interpretation of Contracts 1. Members presentation 3 13 To learn what are needed to 1. Lectures/Hand outs
2.Particpation & cooperation have entered into contracts 2. Group Discussions
3. Class discussions To study rules in perfecting 3. Q & A
a contract
Rescissible Contracts 1. Lectures 3 14 To learn/analyze what are 1. Lectures/Hand outs

Voidable Contracts 2. Models presentation various forms of conracts 2. Group Discussions
3. Class discussions To differentiate each form 3. Citing examples
4.Particpation & cooperation with each other 4. Recitation
Unenforceable Contracts 1. Lectures 3 15 To learn what are needed to 1. Lectures/Hand outs

Void or Inexistent Contracts 2. Models presentation have entered into contracts 2. Quiz
3. Class discussions To study rules in perfecting 3. Q & A
4.Particpation & cooperation a contract 4. Group Interaction
Illegal Contracts 1. Lectures 3 16 To identify what contracts are 1. Lectures/Hand outs

Marriage as a social contract 2. Cases presentation applicable to such cases 3. Citing examples
3. Class discussions To study rules in perfecting 3. Class reaction survey
4.Particpation & cooperation this kind contract 4. Test
Class reaction survey 2. Cases presentation 3 17 To identify what contracts are 1. Lectures/Hand outs
Final Thoughts 3. Class discussions applicable to such cases 2. Q & A
4.Participation & Opinions To study rules in perfecting 3. Recitation
this kind contract 3. Class discussion
4. Group Interaction
FINAL ASSESSMENT
BACHELOR OF SCIENCE IN Course Code: ACCT10 Prepared by:

MANAGEMENT ACCOUNTING Course Title: OBLIGATIONS & CONTRACTS
Faculty
Checked by:
Approved by:
Dean/Program Head
VPAA
Course Title FUNDAMENTALS OF ACCOUNTING Course Code BACC01
Curriculum BS Entrep Semester 1st Semester AY 2019-2020
Course Description This course introduces the student to the basic and fundamentals of accounting, theories, equation and
application to its kind of business organization or its set up .
The role of Accounting in every business whether profitable or non-profitable business.
Student Outcomes 1. Articulate a clear understanding of the basic accounting principles

(SOs) addressed by 2. Explain and differentiate basic accounting versus bookkeeping
the Course 3. Identify other accounting subjects other than the fundamentals.
4. Enumerate the accounting cycles or processes to come up with;
5. Reports by presenting Financial statements
* Responses are with basis if possible references or sources
Outcomes ( CILO) 1. Analysis and understand various source documents of the business
2. Prepare journal entries based on the source documents using the chart of accounts
3. With the Chart of Accounts to identify which accounts to used in prepararing the journal entries
4. Post journal entries to applicable ledger accounts
5. After postings to each ledger accounts, summarize and prepare unadjusted Trial Balance
6. Prepare adjusting entries for accounts to be adjusted post to General Ledger and prepare
adjusted Trial Balance
7. Extract from adjusted Trial Balance, the Income Statment and Balance Sheet.
8. Closing Entries


Equation of Accounting 2 Definition to know and understand 2. Group Discussions
Bokkeeping 3 Classroom Discussion Fundamental of Accounting 3. Hand outs
Accounting Cycles 1. Lectures, 6 2 To identify what classification/ 1. Lectures/Hand outs

(10) Accouning Cycles (Process) 2. Application of theories categories an account belongs 2. Recitation
3. Models presentation To analyze source documents 3. Class discussions
leading to journalization 4. Citing examples
Debit and Credit 1. Lectures 6 3 To learn debit and credit of 1. Lectures/Hand outs
Single Entry Bookkeeping 2. Application of theories accounts 2. Recitation
Double Enry Bookkeeping 3. Class discussions To differentiate single and 3. Class discussions
double entry enty of accounts 4. Citing examples
Chart of Accounts 1. Lectures 6 4 To enumerate the ten (10) 1. Lectures/Hand outs

Account classification, its 2. Application of theories Accounting (process) 2. Recitation
categories 3. Class discussions 3. Class discussions
Assets, Liabilities, Equity 4. Citing examples
Revenue & Expenses
Different Journals 1. Lectures/sample journals 6 5 To learn how different jounals 1. Lectures/Hand outs
General Journal 2. Models presentation are used and its role on the 2. Recitation
Sales Journal 3. Class discussions accounting cycles 3. Groups organization
Purchase Journal 4. Practice set
Cash Receipt Book (journal) To learn how accounting 5. Test
Cash Disbursemdnt Book (journal) transactions be journalized
General Ledger 1. Lectures 6 6 To learn how different jounals 1. Lectures/Hand outs

Accounts/Transactions that 2. Models presentation are used and its role on the 2. Recitation
need adjustments 3. Class discussions accounting cycles 3. Groups organization
4. Practice set
Preparation of Unadjusted Trial 1. Lectures 6 7 To learn how different accounts 1. Lectures/Hand outs
Balance 2. Models presentation used need for adjustment to 2. Recitation
Adjusting Entries 3. Class discussions reflect accounting period 3. Groups organization
Prepayments, Accruals, Estimates 4. Practice set
MID TERM ASSESSMENT
Group Reports on their 1. Group Presentation 6 9 To show to class how journals 1. Practice set presentation
Practice sets 2. Specific journals discussion are prepared 2. Class discussion
Submission of Practice Set 3. Class discussions 3. Class reaction survey
from all groups and its members 4. Q & A portion
General Ledger 1. Lectures 6 10 To learn ledgers are used and 1. Lectures/Hand outs
Postings of Accounts 2. Models presentation its role in the accounting 2. Recitation
3. Class discussions process 3. Groups organization
4. Q & A portion
Postings of Journal Entries 1. Lectures 6 11 To learn and analyze adjusting 1. Lectures/Hand outs
with no journals (Adjusting 2. Models presentation entries for postings 2. Recitation
Entries) 3. Class discussions 3. Groups organization
4. Q & A portion
Summarization of all 1. Lectures 6 12 To summarizes postings 1. Lectures/Hand outs

posting to General Ledgers 2. Models presentation on the general ledgers 2. Recitation
3. Class discussions
1. Members presentation 6 13 To learn how various journals 1. Lectures/Hand outs

2.Particpation & cooperation are used and prepared 2. Test
3. Q & A
Preparation of unadjusted Trial 1. Lectures 6 14 To learn how to reflect balances 4. Practice set
Balance 2. Models presentation of all accounts on the general 5. Recitaton
3. Class discussions ledger to the trial balance
4.Particpation & cooperation
Record Adjusting Entries 1. Lectures 6 15 To learn how adjusting entries 1. Lectures/Hand outs
Postings to General Ledger 2. Models presentation are posted to respective 2. Quiz
Prepare Adjusted Trial Balance 3. Class discussions General Ledgers 3. Q & A
Extraction of Financial Statements 4.Particpation & cooperation 4. Practice set
5. Recitation
1. Illustration/Lectures 6 16 To learn how balances of all 1. Lectures/Hand outs

2. Preparation of Financial accounts on the General Ledger 2. Quiz
Statemets be assembled to prepare 3. Q & A
3. Class discussions Income Statements 4. Group discussion
Preparation of Income Statement 1. Illustration/Lectures 6 17 To prepare how balances of all 1. Lectures/Hand outs
(Statement of Financial Operation) 2. Preparation of Income accounts on the General Ledger 2. Review
Preparation of Balance Sheet Statement be assembled to compose 3. Q & A
(Statement of Financial Condition) 3. Class discussions Balance Sheet 4. Group discussion
FINAL ASSESSMENT
BACHELOR OF SCIENCE IN Course Code: BACC01 Prepared by:

ENTREPRENEURSHIP Course Title: FUNDAMENTALS OF ACCOUNTING
Faculty
Checked by:
Approved by:
Dean/Program Head

VPAA
Week Dates Hours
Week 1 Aug. 7 & 8, 2019 6
Aug. 10, 2019 6
Week 2 Aug. 14 & 15, 2019 6

Aug. 17, 2019 6
Week 3 Aug. 21 & 22, 2019 6

Aug. 24, 2019 6
Week 4 Aug. 28 & 29, 2019 6

Aug. 31, 2019 6
Week 5 Sept. 04 & 05, 2019 6

Sept. 07, 2019 6
Week 6 Sept. 11 & 12, 2019 6

Sept. 14, 2019 6
Week 7 Sept. 18 & 19, 2019 6

Sept. 21, 2019 6
Week 8 Sept. 25 & 26, 2019 6

Sept. 28, 2019 6
Week 9 Sept. 25 & 26, 2019 6

Sept. 28, 2019 6
Week 10 Oct. 02 & 03, 2019 6

Oct. 05, 2019 6
Week 11 Oct. 09 & 10, 2019 6

Oct. 12, 2019 6
Week 12 Oct. 16 & 17, 2019 6

Oct. 19, 2019 6
Week 13 Oct. 23 & 24, 2019 6

Oct. 26, 2019 6
Week 14 Oct. 30 & 31, 2019 6

Nov. 02, 2019 6
Week 15 Nov. 06 & 07, 2019 6

Nov. 09, 2019 6
Week 16 Nov. 13 & 14, 2019 6
Nov. 16, 2019 6
Week 17 Nov. 20 & 21, 2019 6

Nov. 23, 2019 6
Week 18 Nov. 27 & 28, 2019 6

Nov. 30, 2019 6
Week 19 Dec. 04 & 05, 2019 6

Dec.. 07, 2019 6
Week 20 Dec. 11 & 12, 2019 6

Dec.. 14, 2019 6
Wk 1 Introduction to Fundamentals & Basic Accounting
Understanding between Bookkeeping and Accounting
Accounting Equation
Debit and Credit
Wk 2 Understanding Chart of Accounts (purpose and usage)

Account classificataion
Different Accounting Periods
Calendar Year, Fiscal Year and Interim Periods
Wk 3 Identification and Understanding the ten (10) Accounting Cycles or process.

Explanation of each accounting cycles.
Wk 4 Meaning of Source Documents.

Transactions Analysis
Wk 5 Journalization (preparation, )
Forms of Business Organization( in accordance to kind of business áccounting
journals)
Wk 6 Different Journals
st General Journal, Sales Journal, Purchase Journal, Cash Receipt Book (journal)
Cash Disbursement Book (journal)
Special Journals
Wk 7 General Ledger
Subsidiary Ledgers
Wk 8 Transactions that need adjustments

Transactions that no journals can be used or to be recorded.
Wk 9 Postings toGeneral Ledger

Accruals, Prepayment, Advances, Cash Basis, Estimates
Wk 10 Preparation of Unadjusted Trial Balance

Posting of Adjusting Entries
Wk 11 Preparation of Adjusted Trial Balance

Postings from General Ledger
Wk 13 Extracting the Income Statement

Extracting the Balance Sheet
Wk 14 Statement of Cash Flows
Statement of Shareholders"Equity
Wk 15 The Closing Process

AE 25 Module 1 Lesson 1

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

AE 25 Module 1 Lesson 1

Uploaded by

Copyright:

Available Formats

TANAUAN CITY COLLEGE

Tanauan city, Batangas

DRESS RIGHT CLOTHING ENTERPRISE

Subject :FUNDAMENTALS OF ACCOUNTING Ramon R. Enriquez, CPA,CIA,MBA

Review you answers

Subject :FUNDAMENTALS OF ACCOUNTING Ramon R. Enriquez, CPA,CIA,MBA

DRESS RIGHT CLOTHING ENTERPRISE

GENERAL LEDGER ACCOUNTS

ACCOUNT RECEIVABLE 110

ACCOUNT PAYABLES 210

UNEARNED RENT REVENUE 230

OWNER'S EQUITY 300

SALES REVENUE 400

PREPAID RENT 130

FURNITURES & FIXTURES 150

NOTE PAYABLES 220

COST OF GOODS SOLD 500

RETAINED EARNINGS 600

Subject :FUNDAMENTALS OF ACCOUNTING Ramon R. Enriquez, CPA,CIA,MBA

DRESS RIGHT CLOTHING ENTERPRISE

Sept. 1 Cash on Hand 100 40,000

Sept. 1 Prepaid Rent 130 24,000

Sept. 1 Furnitures & Fixtures 150 12,000

Sept. 3 Inventories 140 60,000

Sept. 3 Cash on Hand 100 35,000

Sept. 6 Supplies 125 2,000

Sept. 9 Cost of Goods Sold 500 20,000

Sept. 9 Cost of Goods Sold 500 2,000

Sept. 16 Cash on Hand 100 1,000

Sept. 20 Account Payables 210 25,000

Sept. 20 Salaries Expense 510 5,000

Sept. 25 Cash on Hand 100 1,500

1. Prepayments sometimes referred as deferrals

Adjusting Entries as of September 30. 2019 Post

2. Sept. 30 Depreciation Expense 540 200

3. Sept. 30 Unearned Rent Revenue 230 250

4. Sept. 30 Rent Expense 530 2,000

5. Sept. 30 Salaries Expense 510 5,500

6. Sept. 30 Interest Receivable 200

7. Sept. 30 Bad Debts Expense 560 500

8. Sept. 30 Interest Expense 550 333

Subject :FUNDAMENTALS OF ACCOUNTING Ramon R. Enriquez, CPA,CIA,MBA

A. Give the meaning or your understanding of the following Accounting terms;

B. Enumerate the Ten (10) accounting cycles or processes.

C. What are the six (6) original Book of Accounts

D. Journalize the following financial transactions;

Subject :FUNDAMENTALS OF ACCOUNTING Ramon R. Enriquez, CPA,CIA,MBA

Intangible Assets - assets having no physical existence.which are permanent in nature,

Arrangement and Classification of Liabilities

Examples of Long Term Liabilities

Subject :FUNDAMENTALS OF ACCOUNTING Ramon R. Enriquez, CPA,CIA,MBA

A. STATEMENT OF CASH FLOWS

2) investment activities-activities involve the acquisition and sale.

Illustration DRESS RIGHT CLOTHING ENTERPRISE

Cash Flows from Investing Activities

Cash Flows from Financing Activities

Subject :FUNDAMENTALS OF ACCOUNTING Ramon R. Enriquez, CPA,CIA,MBA

LONG TERM CONTRACT

Two (2 )Methods of Revenue Recognition in Long Term Contract

2. Percentage of Completion Method - recognize a portion of the estimated profit or

Service Performance Method

B. Proportional Performance Method;

C. Specific Perforance Method

Subject :FUNDAMENTALS OF ACCOUNTING Ramon R. Enriquez, CPA,CIA,MBA