LOMA, ABIGAIL JOY C.

BSACC 1-YA-1

CHAPTER 10
FINANCIAL ACCOUNTING AND REPORTING

PROBLEM 3:

Requirement a: Journal Entries

Perpetual System Periodic System

1.)
Inventory ₱ 90,000 Purchases ₱ 90,000
Accounts payable ₱ 90,000 Accounts payable ₱ 90,000
2.)
Inventory ₱ 7,000 Freight-in ₱ 7,000
Cash ₱ 7,000 Cash ₱ 7,000
3.)
Accounts payable ₱ 2,000 Accounts payable ₱ 2,000
Inventory ₱ 2,000 Purchase returns ₱ 2,000
4.)
Accounts receivable ₱ 132,000 Accounts receivable ₱ 132,000
Sales ₱ 132,000 Sales ₱ 132,000

COGS ₱ 80,000 No entry

Inventory ₱ 80,000
5.)
Sales returns ₱ 9,000 Sales returns ₱ 9,000
Accounts Receivable ₱ 132,000 Accounts Receivable ₱ 132,000

Inventory ₱ 6,000 No entry

COGS ₱ 6,000
Requirement b:

Perpetual Inventory system:

COGS
4 ₱ 80,000 ₱ 6,000 5
₱ 74,000 end bal.

Periodic Inventory system:

Purchases (1) ₱ 90,000

Freight-in (2) ₱ 7,000
Purchases returns (3) (₱ 2,000)
Purchase discount -
Net purchase ₱ 95,000
Total goods available for sale ₱ 95,000
Ending inventory (Physical payment) (₱ 21,000)
Cost of good sold ₱ 74,000

PROBLEM 4:

Requirement a: Journal Entries

Perpetual System Periodic System
1.)
Inventory ₱ 120,000 Purchases ₱ 120,000
Accounts payable ₱ 120,000 Accounts payable ₱ 120,000
2.)
Inventory ₱ 12,000 Freight-in ₱ 12,000
Cash ₱ 12,000 Cash ₱ 12,000
3.)
Accounts payable ₱ 2,400 Accounts payable ₱ 2,400
Inventory ₱ 2,400 Purchase returns ₱ 2,400
4.)
Accounts receivable ₱ 147,600 Accounts receivable ₱ 147,600
Sales ₱ 147,6,000 Sales ₱ 147,600

COGS ₱ 98,400 No entry

Inventory ₱ 98,400
5.)
Sales returns ₱ 10,800 Sales returns ₱ 10,800
Accounts Receivable ₱ 10,800 Accounts Receivable ₱ 10,800

Inventory ₱ 7,200 No entry

COGS ₱ 7,200

Requirement b:
Perpetual Inventory system:

COGS
4 ₱ 98,400 ₱ 7,200 5
 ₱ 91,200 end bal.

Periodic Inventory system:

Beginning Inventory ₱ 6,200

Purchases (1) ₱ 120,000
Freight-in (2) ₱ 12,000
Purchases returns (3) (₱ 2,400)
Purchase discount -
Net purchase ₱ 129,60
Total goods available for sale ₱ 135,800
Ending inventory (Physical payment) (₱ 44,600)
Cost of good sold ₱ 91,200

PROBLEM 6:

Solution:

Entity A
Statement of Cost of goods sold and Gross profit
For the period ended December 31, 20x1

Net Sales:
Sales ₱ 320,000
Sales discounts (₱ 10,000)
Sales returns (₱ 8,000) ₱ 302,000
Cost of goods sold:
Beginning inventory ₱ 27,000
Purchases ₱ 145,000
Freight-in ₱ 7,000
Purchase discounts (₱ 4,000)
Purchase returns (₱ 3,000)
Total goods available for sale ₱ 172,000
Less: Ending inventory (₱ 32,000) (₱ 140,000)
Gross profit ₱ 162,000

PROBLEM 14:

1. B
2. D
3. B
4. C
5. A
6. D
7. B
8. A
9. A
10. A
11. C
12. A
13. C
14. C
15. C