VIRTUAL BUSINESS PORTFOLIO:

THE ACCOUNTING CYCLE

In Partial Fulfillment of the

Course Requirements in FAR 1
1st Semester, AY 2022-2023

Submitted to: Mr. Francis Louie S. Regala, CPA, CMA, CTT

CSUCC Accounting Department

Submitted by: BSA 1 - Block A, Group 7

Alera, Neo Eri S.

Caingles, Jazkay M.
De Guzman, Vanessa E.
Pelipas, Princess Mae Z.
Saldia, Joel
Serrano, Carmela G.
Tastar, Albert P.

January 23, 2023

i
 ACKNOWLEDGEMENT

The students wanted to show their sincere appreciation to everyone who contributed
and provided the opportunity for them to create their virtual business portfolio. The project
was successfully submitted and presented through their wisdom, teamwork, and insights.

To our beloved and Almighty God, the students express gratitude for providing them
with the fortitude, drive, and spiritual selves to carry out their obligations and complete their
jobs via this virtual business portfolio. Through his presence, he led the students and
provided them with the knowledge and wisdom that are necessary to complete this endeavor.
Their strength comes from him, who is also their true foundation. The accomplishment of
this last evaluation would not have been feasible without him.

To their instructor, Mr. Francis Louie Sumadero Regala, CPA, CMA, and CTT, who
is a very passionate instructor of Financial Accounting and Reporting 1. He is truly the one
who is always with them to aid in every hardship and struggle that the students encounter
while doing their final assessment task. His sincerity, kindness, and understanding
personality truly give them more comfort and motivation to do their jobs as students. He has
a lot to contribute and teaches them how to make their final assessment task accurate and
more presentable. Through his presence, he made those students feel inspired and had an
influence on how to be competent. Lastly, the students are blessed to have an instructor like
Mr. Francis, who is incomparable to other instructors.

To their lovely and supportive parents, who grew them up with respect and as
valuable individuals. Through their parents’ support, the students do their best to make their
final assessment task worthy of what their parents give them. The students show their unity
to make their parents proud. Their parents' patience, understanding, and tolerance have a lot
to contribute to their final assessment tasks.

To end with, the students thank those people who give them strength and stimulate
them to overcome their hardships. The students’ suffering while doing the task made them
tough and ready for any battles in their next life journey as a student.

ii
 DEDICATION

The final assessment task was dedicated to our family, especially to our beloved
parents, who always show their support financially and emotionally. They paved the way to
reach our goals and accomplish some achievements that we wanted to have, like this business
portfolio. Without them, our tasks will not be successful.

To our Almighty God, who is always there to ask for guidance. We dedicated this
study to him as we are thankful for the blessings that he gave us.

Also, our colleagues always give advice and tips on everything related to our final
assessment task. We dedicated this study to them as a way of giving thanks.

iii
 TABLE OF CONTENTS

TITLE
ACKNOWLEDGEMENT
DEDICATION
TABLE OF CONTENTS

CHAPTER 1 – DESCRIPTIVE INFORMATION ABOUT THE BUSINESS

A. Business Name
B. Business Logo
C. Vision and Mission Statements
D. Introduction
E. Business Profile
F. About the Business

CHAPTER 2 – THE ACCOUNTING CYCLE

A. Chart of Accounts
B. List of the Different Business Transactions
C. General Journal and Special Journals
D. General Ledger, Subsidiary Ledgers, and Supporting Schedule
E. Unadjusted Trial Balance
F. 12-Column Worksheet
G. Adjusting Entries
H. Adjusted Trial Balance
I. Financial Statements
J. Closing Entries
K. Post–Closing Trial Balance
L. Reversing Entry

APPENDIX

INSIGHTS

CURRICULUM VITAE

iv
 CHAPTER 1
DESCRIPTIVE INFORMATION ABOUT THE BUSINESS

A. BUSINESS NAME
Guarantech is the name of the business chosen by group seven (7). Since we
discussed a suitable business name created in our business portfolio, we come-up an
imaginary being named Charles Calo Guaran to establish a computer center business. The
word "Guaran" comes from the owner's last name, Charles Calo Guaran, and is combined
with the word "tee" to form "guarantee" and "tech" for technology. The proprietor of
Guarantee Technology chose that name because he wants to ensure that expectations are
satisfied, including the goods and services that would deliver on time.

When Mr. Charles was still a student, he wanted to have his Computer Shop. Now
that he is a full-fledged computer engineer, he decided to build his Computer Shop to fulfill
his dream and share what he learned with others. Creating your business name is not as easy
as others think. He came up with several catchy company names, including Computer Hub,
PeshTech, Pc Magicians, and others. Up till he utters the phrase Guarantee Technology. He
combines the two words to create a shorter, more memorable Guarantech.

Guarantech stands for its purpose of providing exceptional quality computer services
as well as excellent customer service by treating customers with genuine character, valuing
their feedback, and taking into consideration their enjoyment and satisfaction with the
product and services.

B. BUSINESS LOGO
 Our group thoughtfully created and selected the business logo. The futuristic feel of
the logo represents how modern conveniences like electronic devices and faster
communication have made our lives more comfortable. We concentrate on the significance
of the logo rather than just how it looks. Each color and component of the logo has a specific
meaning. To attract the customer's attention while creating a futuristic image.

 Blue represents the future, associated with open spaces, imagination,

inspiration, loyalty, professionalism, sincerity, wisdom, confidence,
stability, intelligence, and technology. The deeper meaning of the color
relates to securing that the company will have a 100 percent guarantee that
helps what the client wants.

 Circle and Circular Lines represent the totality, excellence, fulfillment,

and cyclical motion. Additionally, they stand for strength, openness,
community, and friendship, and that is what the company stands for.

 Atom represents the wholeness of that company and signifies science and
technology since the company offers technology services and products as
indicated in the tagline - One Shop All Solution. Because the atom is the
center and source of all things, we chose it as the center of our logo
because it represents our company's environment and tagline.

I. Color System
Use the color recommended in the guidance to preserve our unified brand
identity. Spot color printing uses Pantone color values, while offset printing uses
process color values to preserve our unified identity.

Primarily Colors

Guarantech Guarantech
Distinct Black Futuristics
RGB: 0 / 0 / 0 Blue
HEX: #000000 RGB: 0 / 81 / 97
HEX: #005161

Secondary Colors
 Guarantech Guarantech Pure
Silver White
RGB: 173 / 173 / RGB: 235 / 235 /
173 235
HEX: #ADADAD HEX: #EBEBEB

Application Criteria by Color

Recommended Background

Distinct Black Silver

C. VISION AND MISSION STATEMENTS

The brand platform logically embodies the mission, vision, and brand spirit of
Guarantech Company. Each component of its platform must materialize to establish the
direction, philosophy, and company's identity. Consistent brand operations based on the
brand platform are necessary to increase brand value.

I. Vision
To be the world’s most influential agency that furnishes service
excellence and promotes standardized products concerning computers in our
society and the digital world.

II. Mission
Bringing security and flexibility to everybody by providing protection,
installation, and troubleshooting of computers for the best user experience.

III. Guarantech Brand Spirit

 A coherent brand spirit is appreciated, and the attitudes of all the
members of an organization are the foundational feelings that drive all
corporate action.

To Enhance implies a corporate philosophy that signifies the

company's personality.

D. INTRODUCTION
Technology advancement continues to help us in numerous facets of our work in
human societies. The finance, gaming, education, and healthcare sectors cater to the
consumer's preferences in the use of technology. Since the dawn of the modern period,
computer technology has yearly updates in developing futuristic innovation.

Hackers invade cyberspace regularly to collect digital footprints and assault personal
data information, potentially breaching consumers' privacy. Furthermore, because biohazards
involve many forms of technology, particularly computers, safety precautions; and
technology care must be in excellent hands.

The citizens need a shop that engages in advanced technological devices to stay in
touch in the growing digital age. Some generations impart a trend, especially in launching
cool gadgets, to satisfy their desire and preference.

Guarantech is a one-stop-shop consisting of service and merchandising-type activities

owned by Mr. Charles Calo Guaran, an early adulthood man who is a computer engineer and
aspiring business entrepreneur in the town. Due to his specialization and skills, he established
a hybrid business entity that offers computer parts and services to assist citizens in adopting
advanced technology, primarily desktop computers and other computer accessories such as
headsets, webcams, etc. Assist consumers by providing services such as cleaning the router,
repairing damage to software and hardware, installing anti-virus applications on the desktop,
and issuing computer advice, including IT consulting and customer helpdesk.

All in all, the business wanted the consumers to feel that they were in good hands and
could guarantee their expectations. Compared to other computer stores, we serve the best of
the best because we sell the most innovative devices, provide services, and offer advice to
improve our customers' digital experiences. Additionally, we stake our claim to our goal that
every person will experience digital transformation and uphold a brighter future in
technological innovation.
E. BUSINESS PROFILE
A young businessman with extensive skills in computer engineering, Mr. Charles
Calo Guaran founded the company Guarantech. He received a Cum Laude degree from the
prestigious De La Salle University-Manila Campus, where he pursued a Bachelor of Science
in Computer Engineering. At age 23, he received his diploma. He spends ten years working
for a technological firm to broaden his knowledge and experience in the industry. He
oversees the department of merchandising and also works on building high-end computers.
He gives customers advice about the best specifications the previous company can offer.
Charles Calo Guaran was a gifted and technologically astute individual. At the age of 33, he
began to think about having a computer repair service and product. After a year of planning,
preparing, and finding a location for his business, he chose his hometown, Butuan City, an
urbanized city in Agusan del Norte. He also began looking for staff or employees who had
degrees in computer-related courses, particularly in information technology, and who were
qualified for the company. He submitted his resignation when he was 34 years old to launch
his own company.

He chooses the best location to fits the company's environment since the company is
a tech service and product company. He chose an urbanized city like Butuan to build his
business, and he chose the street of Lopez, Jaena because it is one of the busiest streets in
Butuan City, making it easy to find and a big step forward for the company.

Guarantech is inspired based on his last name, Guaran, and the environment of the
business he wishes to establish, which is technology repair service and product or technology
service and product. He chose the name Guarantech to emphasize that the services employed
by the company will produce 100 percent guaranteed and that the consumers' gadgets are in
good hands. Along with operating systems, server applications, software development tools,
desktop and server administration tools, video games, and other intelligent devices, it also
sells and distributes hardware products like custom-made gaming PCs, entertainment
consoles, and other technological devices.

Additionally, the company offers various services like installation, troubleshooting,

operating system repair, and reformatting that are necessary for the client's needs and satisfy
the client's desire for their devices. The company's goal is to offer clients who require
software installation, repair, or upgrade top-notch services and products and to assist people
who require consultation, repair, and installation assistance for their devices. The company
also offers clients advice on how to maximize the capacity of their devices.
 The company seeks to satisfy customers while also assisting them in maintaining the
health of their computers or other gadgets. Personal contacts, data, images, videos,
documents for school or work, pictures and videos, papers for the user's school or job, and
more can be stored in this gadget. Guarantech receives PCs, laptops, and other devices from
customers for in-store repairs breaks down systems, removes damaged hardware, and installs
new parts. Diagnosed software problems, installed updates or new software, removed
malicious applications, disassembled the system on-site to identify problems, and made
selected fixes. took systems off-site as needed for significant repairs/rebuilds, and more,
depending on what consumers wanted to be corrected in their devices.

The company goal is to maintain a professional relationship with our dedicated

clients, employees, and society by encouraging ongoing communication to achieve the
highest standard of performance. Charles Calo Guaran wants his company to stand out from
its rivals by being more high-tech and maintaining the same high standard of quality when
providing services to clients. These guarantees that the company will offer excellent
customer service; and guaranteed that the company will succeed. The company aims to be
responsive and reliable to every customer's changing needs or concerns and to show the
utmost concern for customers' privacy. As a result, our business will assist in fixing errors
that may have occurred on your devices and extending their lifespan.

I. Business SWOT Analysis

Due to its ability to highlight a company's strengths, weaknesses,
opportunities, and threats, SWOT analysis is an effective tool for developing
strategies for starting a business.

Figure 1. Guarantech SWOT Analysis

 Guarantech Computer Parts and Services is a brand new company that aims to
be a great agency that helps customers make their lives more advanced through
computers. As a result, the company performed a SWOT analysis to determine the
level and extent of competition among enterprises operating in the current market.

The company designed this SWOT analysis to identify areas of the business
that are performing well. These areas are the critical success factors, and they give the
entity a competitive advantage. Identifying these strengths and weaknesses can assist
us in ensuring that they are maintained so that the company does not lose its
competitive advantage. Additionally, as opportunities only come around rarely, we
must be aware of them to seize them. Finally, we must be conscious of the hazards
and prepare for them. We cannot eliminate threats, but we can prepare for them. In
other words, SWOT analysis is crucial for us to assess or comprehend everything
before starting that type of business.

II. Prototype Business Building Model

Figure 2. Front View for Business Model

Figure 3. Graphic Design for Business Model

 A futuristic building invested in by the owner and reconstructed by
professional engineers and well-equipped construction workers.

Figure 4. Repairing Area for Business Model

F. ABOUT THE BUSINESS

I. Owner’s Name
Charles Calo Guaran is a 34-year-old Filipino entrepreneur born on September
18, 1987. He lives in Butuan City, Agusan del Norte, Philippines. He studied
Bachelor of Science in Computer Engineering for four (4) years and earned his
degree at the age of twenty-three (23). Since a licensure exam was unnecessary for
his degree, a week after his graduation, he applied to a tech firm and fortunately
obtained a position as a computer technician. Because of his potential and intellect, he
promotes to a higher position, which broadened his industry expertise.

After ten (10) years of working and saving in the bank, he realized that his job
alone appeared to be halfway toward his contentment in his life. He firmly believed
that he could do more. He yearned for something other than his job until he was
determined to quit his former duty at thirty-four (34). He conceptualized creating a
company that was relevant to his expertise and skills. With the money he had saved
from his previous job, he was determined to start his own business.

II. Date Started

 Charles Calo Guaran has worked in the computer industry for more than ten
(10) years and decided to resign from his post because he realizes the potential of
starting his own business, which can have a massive return on investment compared
to working for a company.

It is evident today, in the post-pandemic period, that the demand for personal
computers and other computing devices is still booming. For example, online
education continued even after schools opened; consumers still shop and buy
groceries online, and some businesses still operate remotely full-time or part-time. If
these scenarios persist, computers and computer services will become indispensable
in our daily lives.

Due to his previous employment, Mr. Guaran already had contacts and
connections with different suppliers and resource personnel. He began by gathering
information on the best-suited location for launching his business, which computer
brands were in high demand, and the tools and inventory needed. Mr. Guaran applied
for the registration and licenses of his business in compliance with Republic Act
11032, also known as the Ease of Doing Business and Efficient Government Service
Delivery Act of 2018, on the first week of December 2022, to avoid violations so that
the business could legally operate.
According to a Rappler survey, 55% of respondents indicated that December
is the busiest shopping month, with November coming in second at 24%. Only 5% of
respondents said they shop in either September or October. Since it is peak season,
countless shoppers prefer across town for Christmas shopping, which is good for
most entrepreneurs to earn more profit.

Figure 5. Statistical Data of Busiest Shopping Month

Mr. Guaran decided that the best moment to begin his firm is December 2022.
It is the month when people earn a lot of money because of customer hoarding, a peak
season, Christmas bonuses, and even a. The month when people can easily buy what
they want. Furthermore, it is a great time to look for additional employees because
many people resign at the end of the year and will start looking for new job
opportunities in the upcoming year. Mr. Charles Calo Guaran predicted that his
business would thrive by adapting to today's demands, where technology, notably
computers, has become crucial to human life, whether in education, government
agencies, or businesses and companies.

III. Business Address

The group decided to allocate the business to an urbanized area like Butuan
City as an advancement for the company since Butuan City is the capital city of
Caraga. Based on the Philippine Statistics Data for 2022, Butuan City has over
370,000+ residents; establishing a business in the central part of the city could be a
step forward. Because Lopez, Jaena Butuan City is the city's center point, thus,
businesses were located. The site has a significant benefit since it can demonstrate
that it has a sufficient population for the firm to sustain, grow, and meet the needs of
the people. It can be easily discovered and seen by a potential consumer. These
location decisions can significantly boost a company's long-term performance.

Figure 6. Satellite View Business Location.

Because there are so many competitors in the area, the company surveyed
itself to see if it could survive. However, the company has a significant advantage
over its competitor because it can provide more advanced technology and software.
The company focuses on the internal factor, so it uses SWOT analysis to know the
strengths, weaknesses, opportunities, and threats in the company. Guarantech has
unique product knowledge, a strong innovative culture, high adaptability, and
professionalism, which give it a significant advantage over other companies that
provide comparable products at reasonable prices.
 Figure 7. Default View Business Location.

IV. Composition of Employees

Guarantech is a sole proprietorship business owned and operated by Engr.

Charles C. Guaran. The highest position, along with the owner, makes business
choices and controls the company, while staff provide computer services and help
market products. The people behind Guarantech value each other's respect and
fairness. The owner and the staff of the business include the following:

General Manager
To work as a manager, the employee must:
 Must have a master's degree in Business Administration
 An expert or professional in a managerial position
 Six or more years of professional managerial experience
 Have excellent communication, interpersonal, leadership, coaching, and
conflict-resolution skills

Finance and Accounts Manager

To work as a head of finance and accounts manager, the employee must:
 A Certified Public Accountant
 Five or more years of professional finance and accounting experience
 Keep accurate records of all daily transactions
 Strong ethics with the ability to manage confidential data
 Sharp time management skills

Marketing, Sales, and Purchases Manager

To work as a head of marketing, sales, and purchases manager, the employee
must:
 have a master’s degree in Business Administration
  At least five years working in the related field
 Excellent communicator with persuasion and sales skills. You will oversee
all interactions with vendors and make sure we receive the best price
 Expertise in anticipating and reporting results as well as managing
marketing budgets
 Business, logistics, or a similar subject bachelor's degree may be
necessary
 Work together with your marketing colleagues to keep your brand's voice
and message constantly throughout all sponsored activities

Operations Manager
To work as a head of Operations manager, the employee must:
 Must have a master's degree in Business Administration
 At least five years working in the related field
 Thorough knowledge of production techniques and best practices
 Ensuring that everyone at work is well-organized and content
 Submit a performance report regularly
 Thorough familiarity with hazard legislation and safety procedures
 It may be useful to receive further payroll management training or
certification

Cashier and Bookkeeper

To work as a cashier and Bookkeeper, the employee must:
 Have an NC III in Bookkeeping
 At least 3 years experience in the related field.
 Familiar with electronic equipment, like cash registers and POS systems
 Strong communication and time management skills

Sales Clerk
To work as a sales clerk, the employee must:
 Have a high school diploma or equivalent
 Have an experience in the related field
 Have good verbal communication and interpersonal skills
 Extensive knowledge of the brand and product preferred; eagerness to
learn a plus
 Strong communication and time management skills
Operations Technician
To work as an operations technician, the employee must:
 Has a bachelor's degree in Information Technology, computer science, or
a computer-related foldability to operate on several operating systems,
such as Windows, Apple IOS, and Linux
 Excellent knowledge of software systems, including office, network, and
corporate applications
 Offering instruction to clients on how to use and maintain various
computer systems
 Be able to quickly analyze and diagnose problems, and possess a thorough
understanding of the most recent advancements in computer technology
 Figure 8. Guarantech Organizational Chart

V. Working Hours
According to the Philippine Labor Code, an employee's usual working hours
cannot exceed eight (8) hours per day. Every employee is entitled to a one-hour lunch
break every day, without fail.

Mr. Guaran, the employer, decided that the employees would work eight (8)
hours on weekdays and six (6) hours on Saturdays. Weekday work hours will begin at
8:00 a.m., end at noon restart from 1:00 p.m. to 5:00 p.m. for eight hours. Saturday's
six (6) hour shift will begin at 9:00 a.m. and end at noon, then resume at 1:00 p.m. to
4:00 p.m. for five (5) hours. On Sundays, employees are supposed to take the day off.

VI. Working Days

Employees were one of the backbones of the business operation; hence, the
business had to provide an average day of work, demonstrate ethical consideration to
have at least one day of rest, and issue additional pay for employees who worked on
their rest day.

According to the Labor Code of the Philippines 2022, under Article 91,
“Right to Weekly Rest Day”, every employer, whether operating for profit or not, is
obligated to provide each of his employees a rest period of not less than twenty-four
(24) consecutive hours after every six (6) consecutive normal work days.
 Furthermore, if the employee is willing to work on a rest day or holiday, they
shall be paid an additional compensation of at least thirty percent (30%) of the regular
wage. Unless the holiday work falls on the employee's scheduled rest day, which shall
be entitled to an additional compensation of at least fifty percent (50%) of the
employee's regular wage under Article 93, "Compensation for Rest Day, Sunday, or
Holiday Work."

The business owner decides to pay their wages every 15th of the month so that
they can enjoy their hard work and sustain the needs of their family. Guarantech
wants to prioritize the well-being of their employees to meet their basic needs, which
could improve their performance and productivity in the workplace and potentially
improve business performance.

VII. Business Form

The business form is a sole proprietorship registered by the Bureau of
Internal Revenue (BIR) and the Department of Trade and Industry (DTI).

Guaran planned this business on his own and meticulously formed his idea.
He never had difficulties planning this business, even without opinions or suggestions
from anyone. When he was in college, he dreamed about owning a computer shop.

Guaran believed that even if he had a business partner or a person ready to

engage in his firm, he would still prefer to grow a business entity as a sole
proprietorship. It is significantly easier to construct than other forms and allows him
to control an entity's resources, particularly its income.

VII. Business Type

This business is a hybrid since the proprietor engages in service and
merchandising business operations.

The businessman is a well-equipped and licensed computer engineer who

could share his knowledge with his employees. He hired several employees with
experience in the field and trained them to become competent and proficient in the
task. The employees are highly trained and would use their knowledge to provide
excellent service and advice concerning computers to their clients on behalf of the
business. Moreover, the business entity will offer to sell quality and standardized
computer parts and equipment to their existing and potential customers.
IX. Accounting System Used
The proprietor of Guarantech, Mr. Charles Calo Guaran, decided to put up a
computerized/electronic accounting system on his company's database for several
reasons. One of these is how technological advancements have led to the
development of an entirely new corporate landscape. The ease of data collection,
storage, and analysis lowers the potential for human inaccuracy and aids you in
maintaining control of your company's finances, which is another benefit. Because of
its effectiveness, dependability, accessibility, readability, current information, real-
time user interface, and automated document generation, this technology will also
benefit the organization.

Accounting benefits include the ability to readily track sales and expenses,
assure legal compliance, and provide investors, management, and the government
with access to quantitative financial data that could utilize and think critically. Both
the success of any form of business and the effectiveness of operations greatly depend
on it. Companies can handle their financial information, alongside related reports and
choices, more successfully using the above-described method.

Financial data will be more precise and up-to-date, in addition to being

professionally organized. It will also be simpler for the staff to prevent discrepancies,
which frequently result in enormous fines due to the substantial business reliability
that finance has brought about. It will consequently be able to save a sizable sum of
time and money over time. Convert your accounting system into something that can
boost your company's value and eliminate any threats it could otherwise provide. The
accountants at your organization would attest that one of the most time-consuming
aspects of the job is preparing financial figures. A manual accounting method makes
financial reporting a laborious process that necessitates collecting financial data and
then transforming the template into a BIR- compliant report format.

When he uses a modern electronic accounting system, Mr. Charles Calo

Guaran won't have to be concerned about human error, excessive hours lost on
tedious tasks, or piles of paperwork that a businessman needs to keep elsewhere; all
of that is feasible. It is not only a sensible move for small business owners; but also
incredibly beneficial for businesses in advanced stages of growth.

X. Inventory System Used

An inventory system is a mechanism that keeps track of sales, inventory, and
stock along the supply chain. The inventory systems are used by businesses to ensure
that they are fully aware of the things they have available and where they are located.
Inventory systems are classifying into two types: periodic and perpetual. The periodic
inventory system assesses inventory levels and selling prices by a periodic physical
count. The perpetual system checks inventory levels continually, updating them
whenever a product is received or sold.

The business uses a Periodic Inventory System. The company purchases and
sells computer parts such as graphics cards, processors, motherboards, hard drives,
solid-state drives, and other computer accessories at a high volume and low prices. As
a result, the inventory satisfies the criteria for employing a periodic inventory system.
In addition, the company will physically count the inventory at the end of the period
to ensure the accuracy of the inventory.

XI. Type of Sales

a) Cash Sales
Cash sales are particularly significant in the operation of the business
as it is considered a direct source of funds utilized and spent for expenses,
essentially sustaining the inventory system and paying the employee's salary.
Cash sales include bills of exchange, coins, checks, and money orders as
methods of payment. A cash sale eliminates the need for the seller to extend
credit to a customer. Therefore, there is no risk of bad debt; this is why the
owner made a rational decision to include this type of sale.

b) Credit Sales
Sales on credit are those made by customers whose postponed
payments. Customers can generate cash from their purchases and use it to
repay the seller through delayed payments. Customers can make additional
purchases with a reasonable payment delay. Credit sales are a critical
competitive weapon in several businesses where extended payment terms may
use to attract more clients.

The possibility of bad debt loss is a drawback of credit sales. The

seller must also spend money on a credit and collections division.

Despite the high risk of incorporating credit sales in the business, the
owner still approved of including it by providing conditions, evaluation, and
requiring essential requirements from the customers requesting credit, thus
lessening the risk of bad debts and losses.
1. Open Account
An open account is a type of credit sale in which the customer
verbally agrees to pay a certain amount in the future. This will debit the
accounts receivable account and credit the sales account. The owner
chooses to accept a credit sale and has agreed to give the consumer a
discount if the sum is paid quickly.

2. With Down Payment, Balance on an Open Account

A reference on an open account with a down payment is that it is a
type of credit sale in which a consumer pays a down payment for the
services or goods acquired, and the sum of the invoice is compensated
monetarily through a verbal agreement. In making consumers immediate
payments, management decided to offer discounts on customers' balances
who purchased packages or services. This transaction would lead to the
opening of accounts for cash, accounts receivable, and sales.

3. On account with Promissory Note

On account with a promissory note is a type of credit sale in which
a customer concurs to pay the amount of the service or inventories at a
later date through a written agreement that stipulates an interest rate until
the maturity date. This transaction would lead to a debit in notes
receivable and a credit in sales. The owner agreed to include this sort of
credit sale since it would provide additional cash in the form of interest
revenue; if the credit amount is unpaid on time.

4. With Down Payment, and a Promissory Note for the Balance

The agreements are the only thing separating a sale involving a
down payment and a promissory note for the remainder of the sale
involving a down payment and an unpaid amount on an open account.
Used a written contract to formalize an agreement. Because this is a
promissory note, an interest rate will be issued and calculated until
maturity. The company allows this type of credit sale as it broadens its
sources of earnings by aiding it to accrue interest if the customer didn't
pay the credit amount in full within the payment terms.

5. With Down Payment, Balance Partly Covered by a Promissory Note

and Partly on Account
 The down payment and the promissory note determine the date of
a portion of the total. It is a specific sort of credit sale that includes; both
written and verbal contracts, also in cash down payment. The consumer
makes a down payment; in this case, the balance was covered by a
promissory note, and the other half was partially covered on the account.
Sales and cash would be credited, while notes receivable and accounts
receivable would be debited. To incentivize early payment, the company
would propose an interest fee imposed during the maturity period for the
amount covered by a promissory note, as well as for the balance on an
open account.

c) Cash in Advance
Cash advances or advance payments are when the client pays the
company in full before the transaction is complete, i.e., before the company
provides the client with the product or service. To reduce credit risk for the
seller and protect against nonpayment, the seller takes advance payments. In
general, the structure of cash-in-advance transactions fully benefits the seller
and poses risks for the buyer. In the balance statements of businesses, advance
payments will record as liabilities.

The seller consented to enable the buyer to deem a contract null and
void in the event of a seller default, with the seller agreeing to reimburse the
advance payment amount to the buyer and reassert the buyer's rights to the
initial monies paid. If this transpires, until the seller completes its obligations
under the provisions of the underlying sales agreement, proper accounting is
to record the advance as a liability. It involves two journal entries. Here are
some of them:

1. Initial recordation. Debit the cash account and credit the customer
advances (liability) account.
2. Revenue recognition. Debit the customer advances (liability) account
and credit the revenue account.

It is generally best not to account for a customer advance with an

automatically reversing entry since it will reverse the amount in cash in the
following month. Since the cash paid is still in the cash account, it is often
preferred to transfer sums to revenue as items are delivered or services was
 rendered. To ensure that the status of each client advance reviewed often, it
could be necessary to add a distinct phase to the month-end closing process.

d) Debit Card Sales

A type of card sale used as payment to merchandise and services that
doesn't include any additional fees, including processing fees, to conduct a
card transaction.

e) Credit Card Sales

Unlike debit card sales, this type of card sale uses to pay for goods and
services and includes three parties: the credit card issuer, the shop, and the
client. As a result, the seller will charge an extra fee, as a processing fee, for
card transactions.

XII. VAT or Non-VAT Registered Business

The owner finally decided to comply and register his business as a VAT-
registered business after several deliberations and examinations of his business
entity whether it would register as VAT or non-VAT.

Before he decides to make his business a VAT-registered business, he

assesses and examines his business and gathers information to arrive at an ethical
decision. Through his critical analysis, he discovered that certain goods and services,
such as the sale of computer parts and equipment, computer repair and installation
services, and computer advice, would be subject to a lower value-added tax (VAT).
Hence, registering the business to VAT may claim back input tax to reduce the output
tax garnered on its cost.

Furthermore, businesses or trades with annual sales exceeding Php 3 million

(₱3,000,000.00) that engage in sales, exchanges, bartering, leasing properties or
goods, or rendering services must register for VAT. Some businesses prefer to
register for VAT as a voluntary action; on the other side, it would cause another
burden, such as administrative costs, and make the goods and services seem more
expensive.

Nevertheless, he is willing to take all the risks necessary to fully register his
business with the Bureau of Internal Revenue (BIR). Additionally, he complied with
various requirements, including those of the Department of Trade and Industry (DTI),
Barangay Permit, and Mayor's Permit to acquire certification officially conduct a
business. As a result of the legalization process, the computer business may serve
more customers and provide high-quality goods and services.

XIII. Financial Statements Forms/Presentations/Method

Financial statements are among the most crucial components typically
required when it comes to the accounting process for a business. These summarize the
different types of transactions that occurred in the company during the accounting
period. The company has produced these basic components of general-purpose
financial statements in compliance with the Philippine Financial Reporting
Standards (PFRS).

According to IAS 1 paragraph 15, the financial statements must “present

fairly” the financial position, financial performance, and cash flows of an entity. The
company truthfully presented its objectivity and integrity through its accounting
information. There are four basic components of financial statements, each of which
will be discussed individually.

a) Statement of Financial Performance

1. The business uses only the single-step income statement. It emphasized
the income and expenses in just one equation to get company's net income.
Net Income = Revenue – Expenses
2. The headings arrange in the top-left corner of the figure. The first line
states the business name, the second line states the name of the financial
statement, and the third one states the time frame of the financial
statement.
3. The proper indentation strictly used when there is a subordinate
information item.
4. The income statement’s expenses must be listed in descending order,
starting with the highest and ending with the lowest amount.
5. The chronological order applies if revenues or expenses are all the same
amount.
6. Two decimal places are applied if the recorded amounts contain a decimal.
The second position to the right of the decimal point, or the hundredth
place, is where you should attempt to round a number to two decimal
places.
7. The phrase “Less: item” is used when there is something to deduct, and
“Add: item” is used when there is something to add.
 8. The phrase Net profit or Net loss at the end of the reporting period is
written with a double underline to show the ultimate value or total of the
income statement.

b) Statement of Changes in Owner’s Equity

1. The headings are arranged in the top-left corner of the figure. The first line
states the business name, the second line states the name of the financial
statement, and the third one states the time frame of the financial
statement.
2. The statement of changes in equity is arranged in chronological order. It
starts on the first of the month, takes into account changes that took place
during the month, and ends on the final day of the month.
3. If the recorded amounts contain a decimal, the two decimal places will be
used. The second position to the right of the decimal point, or the
hundredth place, is where you should attempt to round a number to two
decimal places.
4. The phrase “Less: item” is used when there is something to deduct, and
“Add: item” is used when there is something to add.
5. The updated amount of the statement of changes in equity at the end of the
accounting period is double-ruled.

c) Statement of Cash Flows

1. The headings are arranged in the top-left corner of the figure. The first line
states the business name, the second line states the name of the financial
statement, and the third one states the time frame of the financial
statement.
2. In preparing the financial statement of cash flows, the method used is the
direct method, as it provides business operations' lists of actual cash
inflows and outflows. Also, the direct method presents more efficient and
convenient information that conforms to the International Accounting
Standards Board (IASB).
3. If the recorded amounts contain decimal numbers, two decimal places will
apply. The second position to the right of the decimal point, or the
hundredth place, is where you should attempt to round a number to two
decimal places.
4. To calculate and obtain the net cash used or net cash provided by the
business, the amount to be deducted should be placed inside open and
closed parentheses instead of using the word "less."
 5. The ending cash balance of the statement of cash flows is double-ruled.

d) Statement of Financial Position

1. Statement of financial position, also known as the balance sheet, the
headings arranged in the top-left corner of the figure. The first line states
the business name, the second line states the name of the financial
statement, and the third one indicates the date phrase "as of the end" of the
entity's reporting period.
2. The method or form used in the financial position is the report form, as it
applies the vertical format in presenting its three components, which are
the assets, liabilities, and equity accounts.
3. The proper indentation is required used when there is a subordinate
information item.
4. The amounts presented in the financial statement are precise and concise.
If the amount contains decimal numbers, only two decimal numbers
should be recorded by rounding off to its nearest hundredths.
5. The statement of financial position is arranged based on the liquidity of
these major accounts, mainly assets, liabilities, and equity. Assets and
liabilities may classify as current or non-current. They will be presented
separately and not offset in accordance with accounting standards.
6. "Less: item" is used to deduct the contra-asset accounts from their related
accounts, for instance: "Less: allowance for doubtful accounts."
7. The updated amount of the total assets will have balanced the total
liabilities plus equity and double-ruled.

XIV. Methods Used in Recording Adjustments

a) Accruals
Accruals are a means of taking into account the fact that businesses
frequently deliver their goods or services before they get paid for them.
Additionally, individuals frequently obtain goods or services after paying for
them. Expense and revenue accruals are the two kinds of accruals.

When a business receives purchases on credit and records liabilities in

its general ledger to acknowledge its debts to creditors, referred to as an
accrued expense. It is an expense incurred in accounting but not yet paid.

Income or assets (including non-cash assets) that have not yet been
received but an economic transaction has occurred are both considered
 accrued revenues. In this scenario, a business may deliver items or offer
services; but only on credit.

b) Deferrals and Prepayments

Deferrals occur when something is paid in advance but the service or
goods have not yet been rendered. It may be classified as deferred income and
expenses.

In deferred income, there are two methods of recording adjustments:

the liability and income methods. The business uses the income method as
the method of recording adjustments in this portfolio.

In deferred expense, there are two methods of recording adjustments:

the asset and expense methods. The business uses the expense method as the
method of recording adjustments in this portfolio

Since the business uses the income and expense methods in recording
adjustments for deferrals, there are adjustments at the end of the accounting
period that will be transferred into liability (the unearned portion) and asset
(the unexpired portion) accounts, respectively. Reversing entries are
applicable in this method that will be applied at the beginning of the next
accounting period.

c) Estimates
Estimates may refer to depreciation or uncollectible amounts. The
business uses its estimates to determine the exact amount to record as an
adjustment.

Depreciation could have been recorded using different methods,

including the straight line, production, diminishing balance, and accelerated
methods. The business uses the straight-line method when recording
depreciation. The fundamental function of the straight-line method is to
calculate the depreciation for each accounting period. When using the
straight-line method, salvage value will deduct from the value at which the
item is acquired to get the depreciable amount. After getting the depreciable
amount, it will be divided by the number of years for which the item could
produce an economic benefit.
 For the estimates of uncollectible amounts, there are several methods
to use, including the percentage of receivables method, the percentage of sales
method, and the aging method, but the percentage of receivables method
will be used for this portfolio.

d) Ending Inventory
The ending inventory is the total inventory recorded on hand at the end
of the accounting period to be the beginning inventory of the next period. It is
crucial to determine the ending inventory of the business to know if the
business is capable of selling some inventory in the next period. Physical
counting is essential to determining the ending inventory.

The presentation of ending inventory has two methods, including the

adjusting methods and the closing or direct exclusion method. The business
uses an adjusting method when it comes to inventory.

XV. Other Information

A. Services Provided by the Business:

1. IT Support Services
IT Support Services is one of the most popular services offered by
Guarantech to its customers since it focuses on the installation procedure
and repair of computer software and hardware to ensure that the computer
functions smoothly and without compromising critical data stored within
the computer.

i. Software Repair and Installation

Software is one of the pivotal components needed for a
computer since it is under the control of the operating system to work
more efficiently of the computer. Additionally, viruses and spyware
can cause the computer to work erroneously and potentially harm your
privacy. Hence, Guarantech wants to feel that its customers are in
good hands and have secure personal data.

 Anti-Malware and Virus Installation and Removal

Computer viruses and malware can cause the computer to
malfunction and tend to steal personal information that could erase
the entire system of the computer if not treated early. Guarantech
 teams are computer experts; thus, they must install anti-virus
software and malware to protect users' data and devices.
Customers will no longer have to deal with boring digital
experiences, resultantly the service they give.

 Anti-Spyware Installation and Removal

Hackers typically steal digital footprints in the digital world
to gain access to various sites that may contain sensitive user
information, such as banking information and social media
accounts. Guarantech offers the service of installing software tools
to perform routine checks to guarantee the safety of the computer
system and protect users’ privacy at all costs. Moreover, it blocks
malicious data to prevent unwanted spyware and scans the network
data daily for real-time protection.

 Installation of Intrusion Detection Systems (IDS)

Guarantech offers to serve customers by installing intrusion
detection systems. A system that defends against cyberspace
attacks targets the database and is programmed to assure signature
identification based on behavioral anomalies and traffic,
preventing harmful offending IPs; and warning prospective
dangers that can harm the computer's program.

ii. Hardware Repair and Installation

Aside from software, hardware is one of the pivotal
components of the computer. It could not run efficiently with software
to make computers usable for users without hardware. Furthermore,
they needed to test the software to determine the capacity of the
computer, which depends on the current status of the software to
function effectively. Guarantech ensures that consumers will be
satisfied with the outcome and performance of the service they
provide.

 Computer Repair
Repairing the damage to the computer itself would make
the performance run smoothly. Guarantech's competent employees
may be able to treat the computer; without hurting any of its
components. They meticulously examine numerous computer
 elements to ensure that no single aspect of the computer fails to
repair.

 Computer Accessories Repair

Just like the computer, computer accessories tend to break
over time due to being used. Nevertheless, guarantees never fail to
provide service for their customers. They're willing to repair
various computer accessories, including keyboards and webcams.

 Hardware Upgrades
Upgrading the hardware in your computer might enhance
the performance to experience the best functionality of the
computer experience. The Guarantech team will collaborate with
customers’ preferences to cater to their computer needs and satisfy
their desire that uplift their style.

2. Computer Maintenance Services

Computers required constant updating and tune-ups. Regular
maintenance will not only enhance the computer's speed but also improve
its lifetime. The Guarantech team offers a computer maintenance service,
including file cleanup, installing new Windows updates, and programming
that makes the computer work properly.

i. Computer Cleaning
Cleaning is a significant aspect of extending the life of a
computer. If the computer device is unclean, the computer system's
hardware will behave strangely. Guarantech offers customers the
option of cleaning their computers regularly, including the fan vents,
which pollute by dust. Overheating can damage a computer, causing it
to lose all valuable information. A clean computer would safeguard the
data saved on it.

ii. Computer Programming

Computer programming employs various applications, not just
software development or cutting-edge artificial intelligence research. It
facilitates access to banks, the smoothest supply lines, and online
experiences. Furthermore, Guarantech strives to provide a service that
enables access to a fast-paced digital environment through system
interactions and assists users in attaining realistic expectations.
iii. System Set-up Updates and Configuration
Updates would allow the older version of the system to be in
the most current state of the computer. A tool for managing complex
software systems that grant you to select more program features is also
available. As a result, the Guarantech team would install the system to
adapt to the computer system's needs.

iv. Data and Files Recovery

One of the common incidents that users have faced is
mistakenly deleting the file without assessing the importance of their
daily needs. In some cases, computer viruses tend to spread across the
digital community, which might lead to the failure of the file system.
On the brighter side, Guarantech assures that it will recover data files
that are lost unintentionally and organize files before giving them to
the users.

v. System Security Testing

Data breaches, hacks, and cyber-attacks are prevalent in the
digital world since they have lower security vulnerabilities.
Guarantech provides a service that tests the system in the computer to
prevent security risks and improve computer compatibility.
Furthermore, as a preventative precaution, a tool is necessary to
enhance security protection on the computer device.

3. Network Support Services

Communication is the universal currency threat that draws
everyone into interaction and relationship-building with oneself. Aligned
with the service, Guarantech offers through the computer that allows
sharing of information effortlessly, increasing productivity and efficiency.
Moreover, cost-effective file sharing, efficient storage, flexibility, and data
security would attain by users. As a result, massive amounts of
information must be managed and supervised as a computer functionality.

i. Computer Networking
Information transmits via numerous media and network nodes.
Communication and network services use to connect various sections
of a network connectivity router during the network connectivity
process. These are the computer networking services provided by the
Guarantech team.
  Intranet and Local Area Networking (LAN) Installation
Guarantech asserts the use of intranet and local area
networking (LAN) since it gives importance to sharing resources
that enable centralized location of the computer. Furthermore, the
network data transmission is independent of the connected devices'
rates, making it accessible for the one-speed device to send data to
another speed device. Thus, it helps the user experience digital
media.

ii. Firewalls Installation

Receiving unsolicited network traffic from malicious software
could pose a hazard to the network of the user's PC. Thus, Guarantech
insists on installing a firewall to shield computers against cyberattacks
and keep external threats from accessing the computer system.

iii. Troubleshooting
Understanding the problems and issues encountered by the
computer would allow us to eliminate harmful variables in a
systematic order. Guarantech offers a service that provides a solution
to resolve computer issues without causing more complications for the
computer.

iv. Network Security Testing

Aside from testing the security of the computer system,
Guarantech also offered network security testing to ensure that their
connectivity was unhampered by cyberspace hackers and viruses that
could potentially affect and harm the computer. Keeping your sensitive
data safe ensures the network is trustworthy and usable.

v. Network Cabling
A network cabling connection would be ideal for improving
internet connectivity. Thus, Guarantech serves to experience the best
digital experience and carrier through information data flows that are
critical for scalability.

B. Goods Provided by the Business:

 The Guanrantech company is a hybrid business establishment that
offers both servicing and merchandising activities to maximize the profit that
the company may earn. These products, including computer accessories, and
other parts related to computers, are marketed by the company for valuable
customers.

1. Computer Accessories
Computer accessories are the external parts of the computer. The
company suppliers are from the direct brand distributor somewhere in the
Philippines. The ordering and procuring of items are done separately with
a bulk discount to ensure companies' profitability. The goods offered by
the company are listed in the following:
 Keyboard
 Mouse
 WiFi Dongle
 Earphones and Headphones
 Web Camera
 RGB Fans
 Cooling Fans
 Speaker

2. Computer Hardware products

Computer hardware products are the internal part of the computer;
items were purchased and ordered from a direct distributor of the brand to
avoid any logistics markups and to obtain discounts to maximize the
company’s profit. The goods offered by the company are listed in the
following:
 Internal Hard Drives
 Solid State Drives
 Graphic Card Processor
 Mother Board
 Central Processing Units
 Thermal Paste
 CPU Fans
 CMOS battery
 RAM Card
 Power Supply
  Monitor

3. Computer-Related Devices
Computer-related devices are only related computer items that are not
directly involved with computers; these things were ordered and bought
directly from the brand's distributor. The goods offered by the company
are listed in the following:
 Flash Drive
 Switch Hubs
 CCTV
 Access point
 External Drives
 Buk Converter
 AVR
 Printer

C. Brands of each product

Guarantech company preferred to purchase these quality brands because they
wanted to ensure that every good they sell is more competitive and could reach
and satisfy the customer’s expectations. The business has trusted these brands.

Products Offered Brands

Keyboard A4 Tech Genius Asus

Mouse A4 Tech Genius Intel
Wi-Fi Dongle Intel Asus
Earphones and Headphones A4 Tech Asus Genius
Web Camera A4 Tech Genius
RGB Fans A4 Tech Asus
Cooling Fans Intel Asus
Speaker A4 Tech Genius

Table 1.1 Brands of the computer accessories products

 Products Offered Brands

Internal Hard Drives Samsung Kingstone Intel

Solid State Drives Samsung Kingstone Lenovo
Graphic Processing Unit Asus Intel Gigabyte
Mother Board Asus Bloster Intel
Central Processing Unit (CPU) AMD Intel Ryzen
CPU Fans Asus Intel Ryzen
CMOS Battery Kingstone W/B
RAM Card Kingstone Intel Lenovo
Power Supply Inplay Genius Truerate
Monitor Samsung Asus Acer

Table 1.2 Brands of the computer hardware products

Products Offered Brands

Flash Drive Kingstone CD-RKing Lenovo

Switch Hubs TP-Link Tenda-Link Comfast
CCTV HIK-Vesion
Access point Mikrotik
External Drives Kingstone Asus Lenovo
Buk Converter Allan A4tech
AVR A4tech Inplay Allan
Printer Epson HP
Thermal Paste Allan A4tech

Table 1.3 Brands of computer-related device products.

D. Price of the Services:

General Services Specific Services Distance from Service fee

the Store (Non-VAT)

I.T. Support
Services:

Software Repair Anti-Malware and Near Php 499.98

and Installation Virus Installation and
Removal
 Far Php 599.98

Anti-Spyware Near Php 499.98

Installation and
Removal
Far Php 599.98

Intrusion Detection Near Php 699.00

Systems (IDS)
Far Php 799.00

Hardware Repair Computer Repair Near Php 1,299.00

and Installation
Far Php 1,599.00

Computer Accessories Near Php 879.00

Repair
Far Php 1,079.00

Hardware Upgrades Near Php 1,789.00

Far Php 1,989.00

Computer Computer Cleaning Near Php 499.00

Maintenance
Services:
Far Php 699.00

Computer Near Php 788.00

Programming
Far Php 988.00

System Set-up Updates Near Php 1,500.00

and Configuration
Far Php 1,600.00

Data and Files Near Php 500.00

Recovery
Far Php 600.00

System Security Near Php 869.00

Testing
Far Php 969.00

Network
Support
Services:

Computer Intranet and Local Area Near Php 1,285.00

Networking Networking (LAN)
Far Php 1,485.00

Firewalls Installation Near Php 2,588.00

Far Php 2,688.00

Troubleshooting Near Php 1,400.00

Far Php 1,500.00
 Network Security Near Php 1,999.00
Testing
Far Php 2,000.00

Network Cabling Near Php 2,789.99

Far Php 2,989.99
Table 2. Pricelist of the Service being provided by Guarantech

E. Prices of the product

Products Estimated Cost/Unit Selling Price/Unit
(Non-VAT) (Non-VAT)
Wired, Wireless & Php 289.00 - 1,299.00 Php 318.00 -1,428.90
Bluetooth Keyboards
Wired, Wireless & Php 349.00 – 899.00 Php 384.00 – 989.00
Bluetooth Mouse
WIFI Dongle Php 1,749.00 - 4,999.00 Php 1,979.00 – 5,499.00

Web Camera Php 379.00 - 2,599.00 Php 417.00 – 2,858.00

Earphones & Php 49.00 – 299.00 Php 55.00 – 329.00
Headphones
RGB Fans Php 220.00 - 1,199.00 Php 242.00 – 1,319.00
Cooling Fans Php 159.00 – 498.00 Php 175.00 – 548.00
Speaker Php 99.00 - 265.00 Php 109.00 – 292.00
Internal Hard Drives Php 399.00 - 1,632.00 Php 439.00 – 1,795.00
Solid State Drives Php 625.00 - 3,099.00 Php 687.00 – 3,409.00
Graphic Card Php 238.00 - 1,188.00 Php 262.00 – 1,306.00
Processor
Mother Board Php 1,569.00 - 7,179.00 Php 1,723.00 – 7,897.00
Central Processing Php 7,880.00 - 21,946.00 Php 8,668.00 – 2,440.00
Units
CPU Fans Php 89.00 - 930.00 Php 98.00 – 1,023.00
RAM Card Php 550.00 - 2,500.00 Php 605.00 – 2,750.00
Power Supply Php 359.00 - 2,986.00 Php 395.00 – 3,285.00
CMOS Battery Php 29.00 - 89.00 Php 32-00 - 98.00
Flash Drive Php 95.00 - 269.00 Php 105.00 – 295.00
Switch Hubs Php 325.00 - 1,250.00 Php 358.00 – 1,375.00
CCTV Php 299.00 - 2,189.00 Php 330.00 – 2,408.00
Access Point Php 1,499.00 - 7,099.00 Php 1,648.00 – 7,809.00
External Drives Php 855.00 - 1,280.00 Php 940.00 – 1,408.00
Buk Converter Php 39.00 – 325.00 Php 42.00 – 356.00
AVR Php 550.00 - 2,050.00 Php 605.00 – 2,255.00
Printer Php 1,979.00 - 8,799.00 Php 2,176.00 – 9,678.00
Thermal Paste Php 35.00 – 129.00 Php 39.00 – 142.00
Monitor Php 7,899 - 9,000.00 Php 8,900 – 12,900
Table 3. Pricelist of the Product being provided by Guarantech.

F. TRADE DISCOUNTS
The products that the company offer is (100%) 100 percent authentic. All
products are from direct suppliers in the Philippines from ComputerHubby in
Cavite City and Jaytech Computer and gadgets in Davao City. The table shows the
trade discounts to customers. The business decided to have a trade discount to
engage more customers.
 Option A Option B

Products Offered Trade discount rate/Units Trade discount rate/Units

Purchased Purchased
I.D POSITION EMPLOYEES DAYS WORKED BASIC DEDUCTION
Keyboard 15 pcs., 5% 10 pcs., 3%
ES NUMBER STATUS SALARIES
Mouse 10 pcs., 5% 5 pcs., 3%

r 2022-0012 GENERAL
WiFiMANAGER
Dongle REGULAR
10 pcs., 5%15 DAYS 58,795
pcs., 3% 0

Web Camera 10 pcs., 5% 5 pcs., 3%

2022-0013 FINANCE AND REGULAR 15 DAYS 7, 200 0
RGB Fans 10 pcs., 5% 5 pcs., 3%
ACCOUNTS
MANAGER
Cooling Fans 10 pcs., 5% 5 pcs., 3%

2022-0014 Speaker
MARKETING, SALES, 10 pcs., 5%15 DAYS
REGULAR 57,pcs.,
2003% 0
AND PURCHASES
Internal Hard Drives 10 pcs., 5% 5 pcs., 3%
MANAGER
Solid State Drives 10 pcs., 5% 5 pcs., 3%
no 2022-0015 OPERATIONS REGULAR 15 DAYS 7, 200 0
Graphic
MANAGER Card Processor 10 pcs., 5% 5 pcs., 3%

Mother Board 15 pcs., 5% 10 pcs., 3%

2022-0016 CASHIER & REGULAR 15 DAYS 5, 500 0
BOOKKEEPER
Central Processing Units 20 pcs., 5% 20 pcs., 3%

CPU Fans 20 pcs., 5% 10 pcs., 3%

s 2022-0017 SALES CLERK
RAM Card REGULAR
50 pcs., 5%15 DAYS 255,pcs.,
500 3% 0

OPERATIONS
Power Supply 40 pcs., 5% 20 pcs., 3%
2022-0018 TECHNICIAN REGULAR 15 DAYS 5, 500 0
CMOS battery 10 pcs., 5% 5 pcs., 3%

Flash Drive 25 pcs., 5% 10 pcs., 3%

Switch Hubs 15 pcs., 4% 10 pcs., 2%

CCTV 10 pcs., 4% 5 pcs., 2%

Access Points 10 pcs., 4% 5 pcs., 2%

External Drives 10 pcs., 4% 5 pcs., 2%

Buk Converter 15 pcs., 4% 10 pcs., 2%

Monitor 15pcs., 4% 10 pcs., 2%

AVR 25 pcs., 5% 15 pcs., 3%

Printer 15 pcs., 4% 10 pcs., 2%

Thermal Paste 45 pcs., 5% 25 pcs., 3%

Table 4. Trade Discount of the Product.

 Table 5. Data about Employees’ Salaries
Every Fifteen Days of Each Month
 CHAPTER 2
THE ACCOUNTING CYCLE

A. CHART OF ACCOUNTS