BKP Chapter 4-Problem 12 Activity Test 21

BKP NCIII-Batch 1: Problem 12
The following transactions were completed during January of this year:
1 Danilo Cabulay deposited P832, 000 in a bank account for the purpose of
buying Metro Sails, a business offering the use of small sailboats to the public at a
large indoor pool with a fan system that provides wind.
2 Bought Metro Sails for a total price of P2, 133,000. The assets include
sailboats, P208, 000; fan system, P85, 000; pool structure, P 1,440, 000; land, P400,
000. Paid P644, 000down, and signed a mortgage note for the balance.
3 Received and paid bill for newspaper advertising, P14, 800.
3 Received and paid bill for property insurance for the year, P10, 800.
3 Bought additional boats from TY Manufacturing Co. for P65, 200, paying P32,
000 down, with the remainder due in thirty days.
3 Signed contract with a vending machine service to lease them space for their
vending machines. The rental income agreed upon is 10% of the sales generated from
their machines, with the estimated total rental income payable in advance. Received
estimated cash payment for January, P3, 500.
3 Received bill from Quick Printing for promotional handouts, P 3, 680.
3 Signed a contract for leasing sailboats from Eulogio Boat Co. and paid rental fee
for January, P6, 320.
5 Paid cash for miscellaneous expenses, P924.40.
8 Received P26, 325 cash as rent for the use of the boats.
9 Bought additional fans on account from Pabustan Pool Supply, P8, 360.
15 Paid salaries to employee for the period ending January 15, P42, 000.
16 Paid the bill for the promotional handouts already recorded on January 3.
16 Cabuhay withdrew cash for personal use. P10, 520.
16 Bought additional sails from Narvaez Products, Inc., P8, 540; payment due in
thirty days.
16 Received 30, 430 cash for the use of the boats.
19 Paid cash for miscellaneous expenses, P426.40
20 Paid cash to TY Manufacturing Co., as partial payment on account, P4, 800.
22 Received P50, 820 cash for boat rentals.
23 Received a reduction in the outstanding bill from TY Manufacturing Co., for a
boat received in a damaged condition, P4, 520.
24 Received and paid telephone bill, P840.
29 Paid Salaries for period ending January 29, P46, 520.
30 Paid cash to Pabustan Pool Supply to apply on account, P4, 180.
30 Received and paid electric bill, P14, 200.
30 Made an installment payment on the mortgage, P18, 800. Of this amount P6,
800 represents reduction in the principal, and the remainder is interest.
30 Received and paid water bill, P 4, 320.
30 Bought additional boats from Santos and Sons for P48, 520, paying P4, 520
down, with the remainder due in thirty days.
30 Cabulay withdrew cash for personal use, P11, 560.
30 Received P46, 320 in cash for boat rentals.
30 Sales from vending machines for the month amounted to P53, 200.
Required:
1. Establish the following accounts and account numbers in a ledger.
Account Code Account Title

110 Cash
120 Accounts Receivable
130 Prepaid Insurance
140 Land
150 Pool Structure
155 Accumulated Depreciation-Pool Structure
160 Fan System
165 Accumulated Depreciation-Fan System
170 Sailboats
175 Accumulated Depreciation-Sailboats
210 Accounts Payable
220 Salaries Payable
230 Interest Payable
240 Mortgage Payable
310 Cabulay, Capital
320 Cabulay, Withdrawals
330 Income Summary
410 Boat Rental Revenues
420 Concession Revenues
510 Boat Rental Expense
520 Advertising Expense
530 Salaries Expense
540 Insurance Expense
550 Utilities Expense
560 Depreciation Expense-Pool Structure
570 Depreciation Expense-Fan System
580 Depreciation Expense-Sailboats
590 Interest Expense
2. Journalize the transactions.
3. Post the transactions to the ledger accounts.
4. Prepare an unadjusted trial balance in the worksheet.
5. Complete the work sheet using the following information:
a. Insurance expired during the month, P900.

b. Depreciation of fan system for the month, P1 630.
c. Depreciation of pool structure for the month, P6, 000.
d. Depreciation of sailboats for the month, P 8, 040.
e. Salaries accrued as at June 30, P6, 960.
6. Prepare an income statement, statement of changes in equity, statement of financial

position and statement of cash flows.

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BKP NCIII-Batch 1: Problem 12

The following transactions were completed during January of this year:

1. Establish the following accounts and account numbers in a ledger.

Account Code Account Title

2. Journalize the transactions.

3. Post the transactions to the ledger accounts.

4. Prepare an unadjusted trial balance in the worksheet.

5. Complete the work sheet using the following information:

a. Insurance expired during the month, P900.

6. Prepare an income statement, statement of changes in equity, statement of financial

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