Fundamentals of Accountancy, Business and Management - II

September Examinations

Name:___________________________ Score:______
Subject Teacher: Kathlene Jao Date:_______

GENERAL DIRECTIONS : No erasures are allowed, make sure your penmanship is legible and
easy to read. Answer to the best of your knowledge, use the correct account names for each problem.
The template will be given at the last page, supplement the information in the template if you find it
lacking and you could also erase or delete information or account names that are not necessary for
your problem. Answer each on a separate sheet of paper, THIS EXAM IS A HANDWRITTEN
ONE, NO DOC AND EXCEL FILE ALLOWED.

1. On June 1, Nate Luna formed a law firm and showed the following balances on June 30:

Cash P. 120,000 Personal Withdrawals P. 33,000

Accounts Receivable 150,000 Consulting Fees earned 250,000

Office Supplies 22,500 Rent Expense 25,500

Car 360,000 Salaries Expense 60,000

Office Equipment 280,000 Telephone Expense 7,200

Accounts Payable 75,000 Advertising Expenses 6,800

Owner Investment 800,000 Furniture and Fixtures 60,000

Required :
1. Prepare an income statement. 10Pts
2. If there will be a 2% depreciation on the non-current assets what will be
the net income. 5pts
3. After getting the net income in number 1, add it to the owner's investment
and cash with the new balance, create a Statement of Financial Position.
10pts
 2. Lucky One Company owned by Felice has the following balances for December 31:

Accounts receivable 1,200,000 Prepaid expenses 700,000

Cash 8,800,000 Delivery Truck 10,000,000

Inventory 600,000 Notes Payable 1,750,000

Equipment and 2,100,000 Accounts Payable - 5,220,000

furniture Truck

Accumulated 600,000 Accounts Payable - 1,250,000

depreciation Equipment

Patent 100,000 Loans Payable 5,950,000

Owners Investment 9,770,000 Withdrawal, Felice 1,040,000

Required:
1. Prepare a Statement of Financial Position. 10pts
2. The company earned 322,500 as revenue and the following expenses were also
incurred during the month. Prepare an Income statement for the following
transactions of Lucky One Company. 10pts
a. Rent Expense 50,000
b. Electric Bill 10,500
c. Water Bill 500
d. Internet Bill 2,500
e. Wages and Salaries 35,500
f. Advertising Expense 15,000
g. Delivery Expense 8,000
Sample Template:

ABC COMPANY
Income Statement
For the Year Ended 2021

Net Sales
Less:Cost of Sales
Operating Income -
Other Income
Gross Profit -
Less: General Expenses
Selling Expenses
Administrative Expenses
Interest Expense -
Net Income after tax -

ABC COMPANY
Statement of Financial Position
For the Year Ended 2021

Current Assets:
Cash on Hand
Cash in Banks
Short-term bank deposits
Trade Accounts Receivable
Current Claims Receivable
Other current receivables
Allowance for doubtful accounts
Advances to employees
Inventories
Unused office supplies
Insurance and other prepayments
Prepaid Rental
Other current assets
Non Current Assets:
Intangible Assets
Investment Properties
Building
Accumulated Depreciation - Building
Equipment
Accumulated Depreciation - Equipment
Land
Land Improvements
Accumulated Depreciation - Land Improvements
Other Noncurrent Assets
TOTAL ASSETS
Current Liabilities:
Trade Payables
Accrued Liabilities
Income Tax Payable
Interest Payable
Unearned Revenue
Short-term Debt
Other Current Liabilities
Non Current Liabilities:
Notes Payable - Long-term
Other Noncurrent Liabilities
TOTAL LIABILITIES
OWNERS EQUITY
A, Capital 2021
TOTAL EQUITY

“The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge.”

― Daniel J. Boorstin

Prepared by: Kathlene Jao Approved By: Marian O. Cadiz

Subject Teacher Principal