ANSWER KEY:

Quiz No. 34
Test I
1. V
2. B
3. D
4. Y
5. M (FREIGHT COLLECT)
6. P
7. E
8. Q
9. C
10.X
11.F
12.N
13.I
14.T
15.J
16.K
17.S
18.U
19.L
20.A

Test II
1. B
2. A
3. E
4. B
5. D
6. A
7. D
8. D
9. D
10.B
Quiz No.35
Test I
1. A
2. B
3. D
4. C
5. B
6. A
7. D
8. D
9. C

Test II
Income Statement
Sales Revenue (370 x P784) P290,080
Cost of Sales for the year:
Inventory, beginning P102,000
Add: Purchases 448,000
Total Goods Available for Sale 550,000
Less: Inventory, Ending 351,680 (198,320)
Gross Profit 91,760
Operating Expenses:
Rental (P5,000 x 12 months) P 60,000
Salaries 36,000
Utilities 24,000 (120,000)
NET LOSS P 28,240

Item: Imported Paint

Code No. 001
Date Received Issued Balance
Qty Unit Cost Total Qty Unit Cost Total Qty Unit Cost Total
Cost Cost Cost
Jan. 1 200 510 102,000 200 510 102,000
Apr. 15 800 560 448,000 200 510 102,000
800 560 448,000
May 31 100 510 51,000 100 510 51,000
800 560 448,000
Jun. 12 100 510 51,000
50 560 28,000 750 560 420,000
Aug. 25 120 560 67,200 630 560 352,800
Corrected Income Statement
Sales Revenue (370 x P784) P290,080
Cost of Sales for the year:
Inventory, beginning P102,000
Add: Purchases 448,000
Total Goods Available for Sale 550,000
Less: Inventory, Ending 352,800 (197,200)
Gross Profit 92,880
Operating Expenses:
Rental P 60,000
Salaries 36,000
Utilities 28,000 (124,000)
NET LOSS P 31,112

Quiz No. 36
Date Particulars F Debit Credit
July 1 Merchandise Inventory 50,000
Cash on Hand 200,000
Lopez, Capital 250,000

2 Purchases 7,500
Cash on Hand 2,500
Accounts Payable 5,000

3 Purchases 10,000
Accounts Payable 10,000

4 Freight In 750
Cash on Hand 750

5 Cash on Hand 15,000

Sales 15,000

7 Cash on Hand 4,000

Accounts Receivable 5,000
Sales 9,000
 8 Office Supplies 1,500
Cash on Hand 1,500

10 Accounts Payable 500

Purchase Returns & Allow 500

12 Sales Returns & Allowances 220

Cash on Hand 220

13 Cash on Hand 4,950

Sales Discount (P5,000 x 1%) 50
Accounts Receivable 5,000

15 Office Salaries 2,500

Sales Salaries 3,500
Cash on Hand 6,000

17 Cash on Hand 14,000

Sales 14,000

18 Accounts Payable 5,000

Purchase Discount 150
Cash on Hand 4,850
(eom is end of month term)
19 Accounts Receivable 5,836.10
Cash on Hand 500
Sales 5,336.10

20 Accounts Payable 4,500

Cash on Hand 4,500

25 Cash on Hand 1,167.22

Accounts Receivable 1,167.22

31 Percentage Tax Expense 1,291.98

Cash on Hand 1,291.98
SUBSIDIARY LEDGER
Customer: Manuela
Date Particulars Ref Debit Credit Balance
9,000 9,000
4,000 5,000
5,000 0

Custromer: Pena
Date Particulars Ref Debit Credit Balance
July 19 2/10, n/30 5,836.10 5,836.10
25 Partial Collection 1,167.22 4,668.88

Supplier: Pax
Date Particulars Ref Debit Credit Balance
July 2 2/10,n/30 5,000 5,000
10 Returns 500 4,500
20 Full Payment 4,500 0

Supplier: Capiz
Date Particulars Ref Debit Credit Balance
July 3 3% eom, FOB Shipping Pt 10,000 10,000
18 Partial Payment 5,000 5,000

T Accounts

Purchases
7/2 7,500
7/3 10,000
17,500

Freight In
7/4 750

750
 Merchandise Inventory
7/1 50,000
50,000

Sales
15,000 7/5
9,000 7/7
14,000 7/17
5,336.10 7/19
43,336.10

Purchase Discount
150 7/18
150

Sales Returns & Allowances

7/12 220
220

Purchase Returns & Allowances

500 7/10
500

Sales Salaries
7/15 3,500
3,500

Office Salaries
7/15 2,500
2,500

Office Supplies
7/8 1,500
1,500
 Percentage tax Expense
7/31 1,291.98
1,291.98

Candle-Light
Income Statement
For the Month Ended July 31, 2020

Net Sales (note 1) P43,066.10

Cost of Sales (note 2) 24,100.00
Gross Profit 18,966.10
Selling Expense (note 3) ( 4,791.98)
Administrative Expense (note 4) ( 4,000.00)
Net Income P10,174.12

Note 1: Sales P43,336.10

Sales Discount ( 50.00)
Sales Returns & Allow ( 220.00)
Net sales P43,066.10

Note 2: Merchandise Inv-July 1 P50,000.00

Purchases 17,500.00
Freight In 750.00
Purchase Discount ( 150.00)
Purchase Ret. & Allow ( 500.00)
Merchandise Inv. Jul 31 (43,500.00)
Cost of Sales P24,100.00

Note 3: Sales Salaries P 3,500.00

Percentage Tax 1,291.98
Total Selling Expense P 4,791.98

Note 4: Office Salaries P 2,500.00

Office Supplies 1,500.00
Total Administrative P 4,000.00
 Accounts Receivable
7/7 5,000.00 5,000.00 7/13
7/19 5,836.10 1,167.22 7/25
4,668.88

Accounts Payable
7/10 500.00 5,000.00 7/2
7/18 5,000.00 10,000.00 7/3
7/20 4,500.00
5,000.00