KORBEL FOUNDATION COLLEGE INC.

ACCTG 11 ACCOUNTING FOR SERVICE AND MERCHANDISING ENTITIES

(1st Term IST SEM, 2021-2022)

ASSESSMENT II

General Instructions: Read each requirement carefully. Write your answers on sheets of paper
and submit it to https://www.facebook.com/michaelangelo.mateo.50
(messenger) on or before Tuesday, November 30,2021.

Late submission will result in a total score reduction.

Problem I

Guadalupe Rosario, tax consultant, began his practice on December 1, 2021. The transactions of the
firm are as follows:

Dec. 1 Rosario invested P150,000 in the firm,

2 Paid rent for December to Recoletos Realty, P8,000,

2 Purchased supplies on account, P7,200.

3 Acquired P75,000 of the office equipment, paying P37,000 down with the

balance due in 30 days.

8 Paid 7,200 on account for supplies purchased.

14 Paid assistants’ salaries for two weeks, P6,000.

20 Performed consulting services for cash, P20,000.

28 Paid assistant’s salaries for two weeks, P6,000.

30 Billed clients for December consulting services, P48,000.

31 Rosario withdrew P12,000 from the business.

Requirements:

1. Open the following general ledger accounts, using the account numbers shown: Cash
(110); Accounts Receivable (120); Fees Receivable (130); Supplies (140); Office
Equipment (150); Accumulated Depreciation- Office Equipment (155); Accounts Payable
(210); Salaries Payable (220); Rosario, Capital (310); Rosario, Withdrawals (320); Income
Summary (330); Consulting Revenues (410); Salaries Expense (510); Supplies Expense
(520); Rent Expense (530); and Depreciation Expense (540).

2. Journalize the December transactions and post to the ledger.

3. Prepare and complete the worksheet using the following information:

a. Supplies on hand at Dec. 31 amounted to 4,700.

b. Salaries of P1,800 have accrued at month-end.
c. Depreciation is 800 for December.
d. Rosario has spent 20 hours on a tax fraud case during December. When completed
in January, his work will be billed at 500 per hour. Note: The firm uses the account
Fees Receivable to reflect the amount earned but not yet billed.

4. Prepare an income statement, a statement of changes in equity; a balance sheet and a

statement of cash flows.

5. Journalize and post adjusting and closing entries.

6. Prepare a post-closing trial balance.

7. Journalize and post the reversing entries.

 KORBEL FOUNDATION COLLEGE INC. ACCTG 11 ACCOUNTING FOR SERVICE AND MERCHANDISING ENTITIES
(1st Term IST SEM, 2021-2022)

Problem II

Listed below are the accounts taken from the December 31, 2021 adjusted trial balance of

Catherine Cordero Publishers:

Accounts Receivable P 270,000 Interest payable P 40,000

Supplies Expense 710,000 Cash 160,000

Salaries Expense 2,270,000 Repairs expense 10,000

Printing Revenues 8,130,000 Accounts payable 190,000

Prepaid Insurance 320,000 Telephone expense 20,000

Depreciation Expense 250,000 Utilities expense 80,000

Supplies 160,000 Unearned printing revenues 210,000

Salaries Payable 310,000 Interest expense 300,000

Printing Equipment 5,600,000 Cordero, Capital 340,000

Prepaid Advertising 70,000 Notes payable 2,500,000

Cordero, Withdrawals 1,500,000 Miscellaneous Expense 90,000

Allowance for Doubtful accounts 10,000 Accumulated Depreciation 80,000

Requirement:

Prepare the Worksheet, Income Statement, Statement of Changes in Equity and Statement of
Financial Position in good form.

END OF ASSESSMENT

“FOR THE GREATER GLORY OF GOD”