CORDILLERA CAREER DEVELOPMENT COLLEGE

College of Accountancy
Buyagan, Poblacion, La Trinidad, Benguet

Acctg 150
Final Exams

I. Journalizing of transactions: (Total Points for Journalizing @ 2 points

each=52 points)

The following selected transactions were taken from the records of the Bob Rio Grocery
for the month of November, 2021:

Nov. 2 Purchased merchandise on account from Supplier A with a list price of

P30,000. Terms: 5; 4/10; n/30 and FOB shipping point.

Nov. 3 Paid freight for the purchase on Nov. 2 in the amount of P3,000. This was
paid to ABC Trucking for the transportation cost from Manila to La Trinidad.

Nov. 5 Returned merchandise to Supplier A due to damage, with a cost of P1,000 after
deducting trade discount.

Nov. 6 Sold merchandise to Customer C on account with a cost of P5,000. All sales are
marked up at 50% of the cost. Terms, 3/10, n/30.

Nov. 7 Paid freight P500. for the sale to Customer C on November 6, term of sale is
FOB destination.

Nov.8 Received merchandise returned by Customer C from the sale on Nov. 6.

Selling price is P600, cost is P400.

Nov. 9 Paid in full the purchase on Nov. 2 from supplier A.

Nov.12 Collected in full from Customer C pertaining to the sale made on Nov. 6.

Nov. 15 The owner Mr. Bob Rio, withdrew cash in the amount of P2,000 for personal
use.

Nov. 20 Paid rent expense for the month P5,000.

Nov. 24 Cash sale to Customer D , selling price P6,000, cost is P4,000.

Nov. 30 Cash purchase of merchandise from Supplier B costing P8,000.

REQUIRED: Prepare complete Journal Entries to record the above transactions using
the periodic method and perpetual method of inventory accounting. Write your journal
entries in comparative form, meaning, periodic method on the left column, and
perpetual method at the right column of your answer sheet.

II. Adjusting Journal Entries ( Total Points for Adjusting Entries = 37 points)

1. The balance in the Prepaid Rent account before adjustment at the end of the year is
P15,000, which represents three months' rent paid on December 1. The adjusting entry
required on December 31 is ? ( 3 points)

2. The Unearned Rent account has a balance of P40,000. If P3,000 of the P40,000 is
unearned at the end of the accounting period, the adjusting entry at the end of the
accounting period is? (3 points)
3. A company purchases a one-year insurance policy on June 1 for P840 and uses the
expense approach in recording pre-payments. The adjusting entry on December 31 is?
( 3 points)

4. ABC company issued a 12%, P500,000, one-year, note payable on July 1, 2021. The
principal and interest are due on July 1, 2022. What adjusting entry is needed on
December 31, 2021 to take up accrued interest? ( 3 points)

5. ABC Co. has an equipment with a historical cost of P1,000,000 acquired on January
1, of the current year ( 2021). The equipment was estimated to have a 5-year useful
life. What is the adjusting entry to take up the annual depreciation expense on
December 31, 2021? (3 points)

Presented below is the unadjusted trial balance of ABC Store on December 31,2020
Cash 25,000
Prepaid insurance 14,000
Prepaid rent 36,000
Equipment 50,000
Accumulated Depreciation 5,000
Accounts payable 15,000
Accrued Salaries payable 0
Bob, Capital 45,000
Sales 60,000
Insurance expense 0
Salaries expense 0
Rent expense 0
Depreciation expense 0
Total P125,000 P125,000

The following needed a necessary adjustments at the end of December 31,2020:

A. A business pays monthly salaries of P15,000 on the first day of the following month.
The last day of accounting period is December 31, 2020.
B. The balance in the prepaid insurance account before adjustment at the end of the
year December 31, 2020 is P14,000. Of the amount, the unexpired portion is P5,000.
C. On July 1, 2020, the business paid P36,000 for 1 year rent starting July 1, 2020.
D. The estimated depreciation on the equipment for the year is 10% annually. The
Equipment was acquired on January 1, 2019.

Required: Prepare the following:

6. The adjusting entry of transaction A ( 3 points)

7. The adjusting entry of transaction B ( 3 points)

8. The adjusting entry of transaction C (3 points)

9. The adjusting entry of transaction D ( 3 points)

10. The adjusted trial balance of ABC Store on December 31, 2020. ( 10 points)

 Proceed to Test III

III. Closing Entries

The following data is taken from adjusted trial balance of ABC Store on December 31,
2020, except the setting up of the Ending Merchandise Inventory which was physically
counted on December 31,2020 at P30,000.

Debit Credit
Cash P10,000
Accounts receivable 20,000
Prepaid rent 6,000
Merchandise Inventory, (Jan 1, beg) 10,000
Building 120,000
Accumulated Depreciation 12,000
Accounts payable 10,000
Salaries payable 11,500
Loans payable 20,000
Jack Ammo, Capital 75,000
Jack Ammo, Drawings 5,000
Sales 95,500
Sales discounts 2,000
Sales returns & allowances 3,000
Purchases 40,000
Freight In 4,000
Purchase Discounts 2,000
Purchase Returns & Allowances 3,000
Salaries expense 4,500
Rent expense 2,000
Depreciation expense 2,500 ---------
P229,000 P229,000

Required:

a. Prepare the closing entries as follows: (Total points: 3+7+3+4+3= 20 pts)

1. Income accounts (sales, etc.) ( 3 points)

2. Cost of goods sold accounts, including the setting up of the Merchandise
Inventory ending of P30,000 and closing the Beginning Merchandise Inventory of
P10,000 . ( 7 points)
3. Expenses ( 3 points)
4. Income Summary account ( 4 points)
5. Drawing accounts ( 3 points)

b. Prepare Post closing trial balance on December 31, 2020. ( 10 points)

Grand total No. of Points= 120 Points

- Good Luck –

/dbay-an