MODULE 3

Assessment Activities
1. 11,000,000 - 5,000,000 = 6,000,000
+ 3,000,000 - -500,000
14,000,000 - 4,500,000 = 9,500,000

2.PREPAID RENT 24,000

RENT EXPENSE 24,000

3. 1,000 X 100 = 100,000 / 12 X 6 = 500,000

SALES 50,000
UNEARNED SALES 50,000

4. (100,000 - 10,000) / 10 = 9,000 PER YR

9,000 / 12 X 6 = 4,500
DEP. EXPENSE = 4,500

5. (400,000 X 5%) + 12,000 = 32,000

6. 4,200

7. 180,000 x 10% x 91/120 x 120/360 = 4,550

8. 1,000,000 - 300,000 = COGS = 700,000

COGAS - COGS = ENDING INVENTORY
1,300,000 - 700,000 = 600,000

9. SALES = 200,000; C0GS = 80,000; GROSS PROFIT = 120,000

SALARY EXPENSE = 50,000; UTILITIES EXP = 25,000; 0P EXPENSE = 75,000
INTEREST REVENUEW = 110,000
GROSS PROFIT - OPERATING EXPENSES + OTHER INCOME = INCOME BEFORE TAX
120,000 - 75,000 + 110,000 = 155,000cr
INCOME SUMMARY 155,000
CAPITAL ACCOUNT 155,000

10. (100,000 - 10,000)/10 = DEPRECIATION PER YR

90,000 / 10 = 9,000
9,000 X 6 = 54,000 = DEPRECIATION FOR THE YEAREND
54,000 / 12 = 4,500

11. (400,000 X 3%) = REQUIRED ALLOWAN FOR UNCOLLECTIBLE ACCOUNTS = 12,000

12,000 - 12,000 = 0
400,000 - 12,000 = 388,000 = NET REALIZABLE ACCOUNTS RECEIVABLE

11. NET SALES = SALES - SALES RETURNS AND ALLOWANCE = 974,250 - 12,750 = 961,500
NET PURCHASES = PURCHASES - PURCHASE RETURNS AND ALLOWANCES - PURCHASE
DISSCOUNT + FREIGHT IN
528,700 - 7,450 - 3,550 + 7,400 = 525,100
COGS = NET PURCHASES + BEG. INVENTORY - ENDING INVENTORY = 525,100 + 56,500 -
45,500 = 536,100
GROSS PROFIT = NET SALES - COGS = 961,500 - 536,100 = 425,500
PROFIT/LOSS = GROSS PROFIT - (GENERAL AND ADMIN. EXPENSE + SELLING EXPENSE)
536,100 - (95,300 + 120,125) = 425,500 - 215,425 = 210,075
FRAME MERCHANDISING HAS PROFITED FROM ITS NORMAL OPERATING BUSINESS FOR THE
YEAREND DEC. 31,2020
NO LOSS. A PROFIT OF P210,075

12. SALES = 50,000

SALES RETURNS AND ALLOWANCES = 5,000
NET SALES = 50,000 - 5,000 = 45,000