1.On August 13, 2021, HYBE Co.

sold BTS merchandise with selling price of ₱1,350,000 account with terms of 3/15,
n/30. Transportation costs amounted to ₱265,350. The merchandise was received by KPOPTOWN Co. on August 17,
2021. Three days after, KPOPTOWN returned defective merchandise amounting to ₱450,000. HYBE collected the
receivable on August 28, 2021. 
Requirements:
1. How much net cash did HYBE receive from KPOPTOWN if the terms are FOB Destination, freight prepaid?
__873000___
2. How much net cash did HYBE receive from KPOPTOWN if the terms are FOB Shipping Point, freight prepaid?
1138350
3. How much net cash did HYBE receive from KPOPTOWN if the terms are FOB Destination, freight collect?
_607650____
4. How much net cash did HYBE receive from KPOPTOWN if the terms are FOB Shipping Point, freight collect? 873000

PART A: Complete the missing amounts.

 
Date of
Price Terms Date of Payment Cash Discount Amount Paid
Purchase
November 2 150,000 5%, n/30 November 10  ___0__ __zero___‘ 
November 3 120,500 10%, 15%, 2/10, n/30 November 11  __none___ __142500___ 
November 7 75,000 7%, 3/15, n/30 November 23  __1844___ __90339___ 
November 12 80,750 10%, 1/10, 2/15, n/30 November 25 __0___  __zero___ 
November 15 130,000 2/15/EOM, n/60 December 3  __none___ __69750___ 
November 24 65,550 5%, 10%, 1/10, 2/15, n/30 December 6 1545 71221

November 28 58,300 1/15, n/30 December 18 2600 127400

PART A: Complete the missing amounts. (Cont'd)

Cash
Date of Purchase Price Terms Date of Payment Amount Paid
Discount
November 2 150,000 5%, n/30 November 10   ‘ 
November 3 120,500 10%, 15%, 2/10, n/30 November 11    
November 7 75,000 7%, 3/15, n/30 November 23    
November 12 80,750 10%, 1/10, 2/15, n/30 November 25    
November 15 130,000 2/15/EOM, n/60 December 3    
November 24 65,550 5%, 10%, 1/10, 2/15, n/30 December 6 _____  _____ 
November 28 58,300 1/15, n/30 December 18  _____ _____ 
 
PART B: Compute for the following:
1. Assuming the amounts are VAT-INCLUSIVE, compute for the total INPUT VAT. _____ 
2. Assuming the amounts are VAT-EXCLUSIVE, compute for the total INPUT VAT. _____ 
3. Assume an OUTPUT VAT of ₱85,000, compute for the VAT PAYABLE:
a. Purchases are VAT-INCLUSIVE. _____ 
b. Purchases are VAT-EXCLUSIVE. _____ 
Correct answer: 1121, 54924, 0,zero,none, 58300, 66584, 74574, 18416, 10426
 The following information pertains to SHINEE Company. 
Merchandise Inventory, Jan.1 68,990
Purchases 459,500
Purchase Returns and Allowances 15,530
Sales Discounts 6,933
Purchase Discounts 12,750
Sales Returns and Allowances 8,355
Freight-in 37,840
Merchandise Inventory, Dec. 31 65,523
Freight-out 13,450
 
The gross margin is 35.50% of net sales and profit is 9.50% of net sales.
 
Compute for the following:
1. Gross sales __747888___
2. Cost of goods sold __472527___
3. Gross margin ___260073__
4. Total expenses __190476___
5. Net profit/net loss __69597___
The trial balance of EXO Trading as of November 30, 2021 is as follows:

EXO TRADING

Trial Balance

November 31, 2021

Debit Credit
Cash 18,000
Accounts Receivable 66,000
Office Supplies 3,000
Prepaid Rent 150,000
Merchandise Inventory, January 1 14,000
Office Equipment 200,000
Accumulated Depreciation - Office
15,000
Equipment
Delivery Vehicle 320,000
Accounts Payable 220,000
7.50% Note Payable 100,000
EXO, Capital 449,600
Sales 423,140
 Sales returns and allowances 17,340
Sales discount 2,780
Purchases 278,500
Freight-in 12,000
Purchase returns and allowances 13,420
Purchase discount 3,200
Salaries expense 90,000
Freight-out 23,000
Utilities expense 17,800
Taxes expense 11,940
1,224,360 1,224,360

The following transactions occurred in the month of December.

Sold merchandise on account to SM Corp. amounting to ₱200,000 with terms FOB destination, freight
Dec. 2
collect 2/15, n/30. Freight charges amounted to ₱7,550.
Sold merchandise to YG Co. amounting to ₱176,500 with terms FOB shipping point, freight prepaid 1/10,
4
n/30. Freight charges amounted to ₱8,550. YG Co. issued a 7% 90-day note in exchange for the merchandise.
Purchased merchandise on credit from BLACKPINK Co., terms FOB shipping point, freight prepaid, 2/15,
5 n/30. The merchandise has a list price of ₱250,000 with trade discount of 5% and 10%. Freight costs
amounted to ₱2,534.
6 SM Corp. returned defective merchandise amounting to P45,600.
7 Purchased office supplies on credit from AESPA Inc., ₱10,000.
Purchased merchandise from ITZY Trading amounting to ₱88,000 with terms, FOB destination, freight
8
prepaid, 2/10, n/30.
10 Returned merchandise to BLACKPINK Co. amounting to ₱4,500.
Purchased merchandise from ITZY Trading with terms, FOB destination, freight collect, 1/10, n/30. The
12
merchandise has a list price of ₱100,000 with trade discount of 7.50% and 10.50%.
14 Received payment in full from YG Co.
16 Paid ₱100,000 of the account owed to BLACKPINK Co.
17 Received payment in full from SM Corp.
18 Paid in full the account owed to ITZY Trading.
22 Paid BLACKPINK Co. the remaining balance.
28 Received billing from CAGELCO and Metropolitan Water District amounting to ₱15,000.
29 EXO Trading withdrew ₱78,000.
 Additional information:
1. Unused office supplies at the end of the year amounted to ₱7,639.
2. The office equipment was acquired on January 1, 2020 with a salvage value of ₱50,000 and estimated useful life of 10 years.
3. The note payable is dated October 31, 2021 and is for 90 days due to BIGBANG Bank.
4. Accrue 3% percentage tax on December gross sales.
5. Salaries amounting to ₱25,500 was accrued at the end of the year.
6. EXO Trading pays its rent 3 years in advance starting January 1, 2020. 
7. The accounts receivable is estimated to be 90.25% collectible.
8. The delivery truck was acquired on November 28, 2021. The vehicle has an estimated useful life of 8 years and salvage value of
₱15,000.
9. Inventory count of unsold merchandise as of December 31, 2021 is valued at ₱9,500.
Required: Compute for the following:
1. Net sales for the month of December. __326047___
2. Net purchases for the month of December. __, 379982___
3. Cost of goods sold for the month of December. _____
4. Gross profit rate based on net sales for the month of December. (Round off to two decimal places. Eg. 12.54%) _____
The trial balance of EXO Trading as of November 30, 2021 is as follows:
EXO TRADING
Trial Balance
November 31, 2021
Debit Credit
Cash 18,000
Accounts Receivable 66,000
Office Supplies 3,000
Prepaid Rent 150,000
Merchandise Inventory, January 1 14,000
Office Equipment 200,000

Accumulated Depreciation - Office Equipment 15,000

Delivery Vehicle 320,000

Accounts Payable 220,000
7.50% Note Payable 100,000
EXO, Capital 449,600
Sales 423,140
Sales returns and allowances 17,340
Sales discount 2,780
Purchases 278,500
Freight-in 12,000
Purchase returns and allowances 13,420
Purchase discount 3,200
Salaries expense 90,000
Freight-out 23,000
Utilities expense 17,800
Taxes expense 11,940

1,224,360 1,224,360

The following transactions occurred in the month of December.

Dec. Sold merchandise on account to SM Corp. amounting to ₱200,000 with terms FOB destination, freight collect
 2 2/15, n/30. Freight charges amounted to ₱7,550.
Sold merchandise to YG Co. amounting to ₱176,500 with terms FOB shipping point, freight prepaid 1/10, n/30.
4
Freight charges amounted to ₱8,550. YG Co. issued a 7% 90-day note in exchange for the merchandise.
Purchased merchandise on credit from BLACKPINK Co., terms FOB shipping point, freight prepaid, 2/15,
5 n/30. The merchandise has a list price of ₱250,000 with trade discount of 5% and 10%. Freight costs amounted
to ₱2,534.
6 SM Corp. returned defective merchandise amounting to P45,600.
7 Purchased office supplies on credit from AESPA Inc., ₱10,000.
Purchased merchandise from ITZY Trading amounting to ₱88,000 with terms, FOB destination, freight
8
prepaid, 2/10, n/30.
10 Returned merchandise to BLACKPINK Co. amounting to ₱4,500.
Purchased merchandise from ITZY Trading with terms, FOB destination, freight collect, 1/10, n/30. The
12
merchandise has a list price of ₱100,000 with trade discount of 7.50% and 10.50%.
14 Received payment in full from YG Co.
16 Paid ₱100,000 of the account owed to BLACKPINK Co.
17 Received payment in full from SM Corp.
18 Paid in full the account owed to ITZY Trading.
22 Paid BLACKPINK Co. the remaining balance.
28 Received billing from CAGELCO and Metropolitan Water District amounting to ₱15,000.
29 EXO Trading withdrew ₱78,000.
Additional information:
1. Unused office supplies at the end of the year amounted to ₱7,639.
2. The office equipment was acquired on January 1, 2020 with a salvage value of ₱50,000 and estimated useful life of 10
years.
3. The note payable is dated October 31, 2021 and is for 90 days due to BIGBANG Bank.
4. Accrue 3% percentage tax on December gross sales.
5. Salaries amounting to ₱25,500 was accrued at the end of the year.
6. EXO Trading pays its rent 3 years in advance starting January 1, 2020. 
7. The accounts receivable is estimated to be 90.25% collectible.
8. The delivery truck was acquired on November 28, 2021. The vehicle has an estimated useful life of 8 years and salvage
value of ₱15,000.
9. Inventory count of unsold merchandise as of December 31, 2021 is valued at ₱9,500.
Required: Compute for the following:
1. Total net sales for 2021. ___729067__
2. Total net purchases for 2021. __653862___
3. Total operating expenses for the year. __308329___
4. Net profit/net loss for the year. __(234535)___
5. Gross profit rate based on net sales for the year. (Round off to two decimal places. Eg. 12.54%) _9.5%,9.70%
The trial balance of EXO Trading as of November 30, 2021 is as follows:
EXO TRADING
Trial Balance
November 31, 2021
 Debit Credit
Cash 18,000
Accounts Receivable 66,000
Office Supplies 3,000
Prepaid Rent 150,000
Merchandise Inventory, January 1 14,000
Office Equipment 200,000

Accumulated Depreciation - Office Equipment 15,000

Delivery Vehicle 320,000

Accounts Payable 220,000
7.50% Note Payable 100,000
EXO, Capital 449,600
Sales 423,140
Sales returns and allowances 17,340
Sales discount 2,780
Purchases 278,500
Freight-in 12,000
Purchase returns and allowances 13,420
Purchase discount 3,200
Salaries expense 90,000
Freight-out 23,000
Utilities expense 17,800
Taxes expense 11,940
1,224,360 1,224,360

The following transactions occurred in the month of December.

Dec Sold merchandise on account to SM Corp. amounting to ₱200,000 with terms FOB destination, freight collect 2/15, n/30. Freight
. 2 charges amounted to ₱7,550.
Sold merchandise to YG Co. amounting to ₱176,500 with terms FOB shipping point, freight prepaid 1/10, n/30. Freight charges
4 amounted to ₱8,550. YG Co. issued a 7% 90-day note in exchange for the merchandise.

Purchased merchandise on credit from BLACKPINK Co., terms FOB shipping point, freight prepaid, 2/15, n/30. The merchandise has
5 a list price of ₱250,000 with trade discount of 5% and 10%. Freight costs amounted to ₱2,534.

6 SM Corp. returned defective merchandise amounting to P45,600.

7 Purchased office supplies on credit from AESPA Inc., ₱10,000.

8 Purchased merchandise from ITZY Trading amounting to ₱88,000 with terms, FOB destination, freight prepaid, 2/10, n/30.

10 Returned merchandise to BLACKPINK Co. amounting to ₱4,500.

 Purchased merchandise from ITZY Trading with terms, FOB destination, freight collect, 1/10, n/30. The merchandise has a list price
12 of ₱100,000 with trade discount of 7.50% and 10.50%.

14 Received payment in full from YG Co.

16 Paid ₱100,000 of the account owed to BLACKPINK Co.
17 Received payment in full from SM Corp.
18 Paid in full the account owed to ITZY Trading.
22 Paid BLACKPINK Co. the remaining balance.
28 Received billing from CAGELCO and Metropolitan Water District amounting to ₱15,000.
29 EXO Trading withdrew ₱78,000.
Additional information:
1. Unused office supplies at the end of the year amounted to ₱7,639.
2. The office equipment was acquired on January 1, 2020 with a salvage value of ₱50,000 and estimated useful life of 10 years.
3. The note payable is dated October 31, 2021 and is for 90 days due to BIGBANG Bank.
4. Accrue 3% percentage tax on December gross sales.
5. Salaries amounting to ₱25,500 was accrued at the end of the year.
6. EXO Trading pays its rent 3 years in advance starting January 1, 2020. 
7. The accounts receivable is estimated to be 90.25% collectible.
8. The delivery truck was acquired on November 28, 2021. The vehicle has an estimated useful life of 8 years and salvage value of
₱15,000.
9. Inventory count of unsold merchandise as of December 31, 2021 is valued at ₱9,500.

Required: Compute for the following:

1. Total assets as of December 31, 2021. __520131___
2. Total liabilities as of December 31, 2021. _383066____
3. Total equity as of December 31, 2021. 137065
The following select transactions occurred during the fiscal years ending October 31, 2019 and 2020:

For the period ending October 31, 2019:

August 13 Kelly Corp purchased various office supplies in cash amounting to P30,000.

Kelly received a 3-month rental fee of P30,000 from a tenant upon occupation of a space being rented out on the
September 1
same date.

Kelly purchased an equipment in cash amounting to P35,000. This equipment is available for use on the same date.
July 10
It has a useful life of 5 years.

The entity received a 90-day promissory note from a customer for a sale of goods amounting to P10,000. The note
September 16
bears an interest of 10%.

The entity received CAGELCO electric bill covering the period September 16 to October 15 amounting to
October 15
P15,000.

October 16 The entity paid the electric bill.

Additional information

1. The remaining office supplies after a count on October 31 is P4,500.

2. The entity uses the asset method of recording prepayments and the revenue method of recording pre-collections.

For the period ending October 31, 2020:

The entity received and paid the electric bill covering the period October 16 to November 15 amounting to
November 15
P18,000.
 December 15 The entity received the payment of the customer’s promissory note including the 90-day interest.

May 6 Kelly Corp purchased various office supplies in cash amounting to P75,000.

Kelly received a 6-month rental fee of P100,000 from a tenant upon occupation of a space being rented out on the
June 1
same date.

The entity received CAGELCO electric bill covering the period September 16 to October 15 amounting to
October 15
P18,000.

October 17 The entity paid the electric bill.

Additional information

     1.  The remaining office supplies after a count on October 31 is P6,000.

    2. The electric bill for the period covering October 16 to November 15 was received and paid on November 18 amounting to P19,000.

Requirements: (6 points) This is the 1st Part of the Problem -Kelly Corp. Same problem is given for the 2nd Part for
the continuation of the requirements.
1. The fiscal year 2019 includes an accrual of income amounting to __125___.
2. The fiscal year 2019 includes total obligation of __19000___.
3. The fiscal year 2019 includes assets amounting to __37292___.
4. The fiscal year 2020 may include a reversing entry of: [Example: Supplies <single space> Expense <single
space> 2300]
                     _ Unearned Rent Revenue 10000____ Rent Revenue 10000
Interest Income 125 Interest Receivable 125
Utilities Payable 9000 Utilities Expense 9000
The following select transactions occurred during the fiscal years ending October 31, 2019 and 2020:

For the period ending October 31, 2019:

August 13 Kelly Corp purchased various office supplies in cash amounting to P30,000.
Kelly received a 3-month rental fee of P30,000 from a tenant upon occupation of a space being rented
September 1
out on the same date.
Kelly purchased an equipment in cash amounting to P35,000. This equipment is available for use on the
July 10
same date. It has a useful life of 5 years.
The entity received a 90-day promissory note from a customer for a sale of goods amounting to P10,000.
September 16
The note bears an interest of 10%.
The entity received CAGELCO electric bill covering the period September 16 to October 15 amounting
October 15
to P15,000.
October 16 The entity paid the electric bill.
Additional information
1. The remaining office supplies after a count on October 31 is P4,500.

2. The entity uses the asset method of recording prepayments and the revenue method of recording pre-collections.

For the period ending October 31, 2020:

The entity received and paid the electric bill covering the period October 16 to November 15 amounting
November 15
to P18,000.
 December 15 The entity received the payment of the customer’s promissory note including the 90-day interest.
May 6 Kelly Corp purchased various office supplies in cash amounting to P75,000.
Kelly received a 6-month rental fee of P100,000 from a tenant upon occupation of a space being rented
June 1
out on the same date.
The entity received CAGELCO electric bill covering the period September 16 to October 15 amounting
October 15
to P18,000.
October 17 The entity paid the electric bill.
Additional information
     1.  The remaining office supplies after a count on October 31 is P6,000.
    2. The electric bill for the period covering October 16 to November 15 was received and paid on November 18
amounting to P19,000.
Requirements: (5 points) This is the 2ND Part of the Problem -Kelly Corp - a continuation of requirements. You
may solve first the 1st part.
5. The fiscal year 2020 includes liability amounting to __26167___.
6. The fiscal year 2020 includes office equipment’s carrying amount of __25667___.
7. The fiscal year 2020 includes total rental revenue of __93333___.
8. The fiscal year 2020 includes total supplies expense of __73500___.
9. The entry to adjust the prepaid supplies on October 31, 2020: [Example: Supplies <single space> Expense <single
space> 2300]
        _ Supplies Expense 73500____
                           _ Unused Supplies 73500
A trial balance and additional information for adjustments appear below for Bellejeianne Auto Repair Shop after one year
of operation.
Bellejeianne Auto Repair Shop
Unadjusted Trial Balance
December 31, 2021

  Debit Credit
Cash on Hand P    25,000  
Cash in Bank 45,000  
Accounts Receivable 49,000  
12% Notes Receivable 30,000  
Prepaid insurance 15,000  
Prepaid supplies 600  
Machinery and Equipment 150,000  
Furniture and Fixtures 25,000  
Accounts Payable   P     26,000
 18% Notes Payable   50,000
Siabalquez, Capital   132,850
Siabalquez, Personal 5,000  
Repair Income   275,000
Referral Income   15,000
Salaries Expense 45,000  
Rent Expense 55,000  
Taxes and Licenses Expense 7,250  
Utilities Expense 46,750  
Interest Expense 250  
Total P  498,850 P   498,850
1. 15% of the account receivable should be recognized as doubtful of collection.
2. Insurance premium recorded as Prepaid Insurance was for six months starting October 1, 2021.
3. Supplies amounting to P450 were consumed during the period.
4. The note receivable represents a 60-day note received from the customer on November 16.
5. Unearned income from repairs represents three contracts: Kylie Services for P6,000; Aljur Shop for P5,000; and
Raval Mechanics for P3,000.
6. Machinery and equipment were acquired on April 8, 2021 with an estimated useful life of 10 years and a scrap
value of P30,000.
7. The furniture and fixtures were acquired on January 17, 2021 with an estimated useful life of 10 years and a scrap
value of P2,500.
8. The notes payable dated December 1 is for 90 days due to Banco de Siazon.
9. December gross receipts is P70,000 subject to 3% percentage tax.
Compute the adjusted balances of the following:
a. Expected credit losses from outstanding receivables. __7350___
b. Insurance expense for the year ended December 31, 2021. __7500___
c. Accrued interest income as of December 31, 2021. _450____
d. Income from repairs for the year ended December 31, 2021. __261000___
e. Depreciation for the period ended December 31, 2021. _11063____
f. Total Carrying amount/book value of property, plant and equipment, i.e., machinery and equipment and furniture
and fixtures, as of December 31, 2021. _163937____
g. Accrued interest expense as of December 31, 2021. _750____
h. Taxes and licenses for the period ending December 31, 2021. 9350
 A trial balance and additional information for adjustments appear below for Bellejeianne Auto Repair Shop after
one year of operation.
                                                           Bellejeianne Auto Repair Shop
                                                              Unadjusted Trial Balance
                                                                   December 31, 2021

  Debit Credit
Cash on Hand P    25,000  
Cash in Bank 45,000  
Accounts Receivable 49,000  
 12% Notes Receivable 30,000  
Prepaid insurance 15,000  
Prepaid supplies 600  
Machinery and Equipment 150,000  
Furniture and Fixtures 25,000  
Accounts Payable   P     26,000
18% Notes Payable   50,000
Siabalquez, Capital   132,850
Siabalquez, Personal 5,000  
Repair Income   275,000
Referral Income   15,000
Salaries Expense 45,000  
Rent Expense 55,000  
Taxes and Licenses Expense 7,250  
Utilities Expense 46,750  
Interest Expense 250  
Total P  498,850 P   498,850
1. 15% of the account receivable should be recognized as doubtful of collection.
2. Insurance premium recorded as Prepaid Insurance was for six months starting October 1, 2021.
3. Supplies amounting to P450 were consumed during the period.
4. The note receivable represents a 60-day note received from the customer on November 16.
5. Unearned income from repairs represents three contracts: Kylie Services for P6,000; Aljur Shop for P5,000; and
Raval Mechanics for P3,000.
6. Machinery and equipment were acquired on April 8, 2021 with an estimated useful life of 10 years and a scrap
value of P30,000.
7. The furniture and fixtures were acquired on January 17, 2021 with an estimated useful life of 10 years and a scrap
value of P2,500.
8. The notes payable dated December 1 is for 90 days due to Banco de Siazon.
9. December gross receipts is P70,000 subject to 3% percentage tax.
 
Requirements:
a. Compute the total income for the period ending December 31, 2021. ___276450__
b. Compute the total expenses for the period ending December 31, 2021. _ 183463____
c. Compute the profit or (loss) for the period ended December 31, 2021. __ 92987___
 A trial balance and additional information for adjustments appear below for Bellejeianne Auto Repair Shop after
one year of operation.
                                                           Bellejeianne Auto Repair Shop
                                                              Unadjusted Trial Balance
                                                                   December 31, 2021
  Debit Credit
 Cash on Hand P    25,000  
Cash in Bank 45,000  
Accounts Receivable 49,000  
12% Notes Receivable 30,000  
Prepaid insurance 15,000  
Prepaid supplies 600  
Machinery and Equipment 150,000  
Furniture and Fixtures 25,000  
Accounts Payable   P     26,000
18% Notes Payable   50,000
Siabalquez, Capital   132,850
Siabalquez, Personal 5,000  
Repair Income   275,000
Referral Income   15,000
Salaries Expense 45,000  
Rent Expense 55,000  
Taxes and Licenses Expense 7,250  
Utilities Expense 46,750  
Interest Expense 250  
Total P  498,850 P   498,850
1. 15% of the account receivable should be recognized as doubtful of collection.
2. Insurance premium recorded as Prepaid Insurance was for six months starting October 1, 2021.
3. Supplies amounting to P450 were consumed during the period.
4. The note receivable represents a 60-day note received from the customer on November 16.
5. Unearned income from repairs represents three contracts: Kylie Services for P6,000; Aljur Shop for P5,000; and
Raval Mechanics for P3,000.
6. Machinery and equipment were acquired on April 8, 2021 with an estimated useful life of 10 years and a scrap
value of P30,000.
7. The furniture and fixtures were acquired on January 17, 2021 with an estimated useful life of 10 years and a scrap
value of P2,500.
8. The notes payable dated December 1 is for 90 days due to Banco de Siazon.
9. December gross receipts is P70,000 subject to 3% percentage tax.
Requirements:
a. Compute the total current assets as of December 31, 2021. __149750___
b. Compute the total non-current assets as of December 31, 2021. __163937___
c. Compute the total current liabilities as of December 31, 2021. _92850____
d. Compute the ending balance of the equity as of December 31, 2021. _220837
A trial balance and additional information for adjustments appear below for Bellejeianne Auto Repair Shop after
one year of operation.
Bellejeianne Auto Repair Shop
 Unadjusted Trial Balance
December 31, 2021

  Debit Credit

Cash on Hand P    25,000  

Cash in Bank 45,000  

Accounts Receivable 49,000  

12% Notes Receivable 30,000  

Prepaid insurance 15,000  

Prepaid supplies 600  

Machinery and Equipment 150,000  

Furniture and Fixtures 25,000  

Accounts Payable   P     26,000

18% Notes Payable   50,000

Siabalquez, Capital   132,850

Siabalquez, Personal 5,000  

Repair Income   275,000

Referral Income   15,000

Salaries Expense 45,000  

Rent Expense 55,000  

Taxes and Licenses Expense 7,250  

Utilities Expense 46,750  

Interest Expense 250  

Total P  498,850 P   498,850

 
1. 15% of the account receivable should be recognized as doubtful of collection.
2. Insurance premium recorded as Prepaid Insurance was for six months starting October 1, 2021.
3. Supplies amounting to P450 were consumed during the period.
4. The note receivable represents a 60-day note received from the customer on November 16.
5. Unearned income from repairs represents three contracts: Kylie Services for P6,000; Aljur Shop for P5,000; and
Raval Mechanics for P3,000. 
6. Machinery and equipment were acquired on April 8, 2021 with an estimated useful life of 10 years and a scrap
value of P30,000.
7. The furniture and fixtures were acquired on January 17, 2021 with an estimated useful life of 10 years and a scrap
value of P2,500.
8. The notes payable dated December 1 is for 90 days due to Banco de Siazon.
9. December gross receipts is P70,000 subject to 3% percentage tax.
Requirements:
a. Assuming the entity will prepare the reversing entries on January 1, 2022, compute the total debits or total credits
in the general journal for the reversing journal entries. __17300___
b. Compute the 2022 opening balance of the liability from advanced collections in the previous period. _14000___
c. Compute the interest income earned in 2022 from the 12% note. _150___
d. Compute the interest expense incurred in 2022 from the 18% note. __1500___
e. Assuming there was no disposal of property, plant and equipment in 2022, compute the total depreciation in 2022.
__14250___