Midterms FAR Quiz 1

I.
PERIODIC & PERPETUAL

November Periodic Perpetual
10 Purchases 2,160,000.00 Merchandise Inventory
Accounts payable 2,160,000.00
12 Freight in 12,000.00 Merchandise Inventory

Cash 12,000.00
15 Accounts Payable 540,000.00 Accounts Payable

Purchase returns and allowances 540,000.00
20 Accounts payable 1,620,000.00 Accounts payable

Cash 1,587,600.00
Purchase discounts 32,400.00
December Periodic Perpetual

2 Accounts receivable 600,000.00 Accounts receivable
Sales 600,000.00
Cost of goods sold
3 No Entry No Entry
4 Sales returns and allowances 200,000.00 Sales returns and allowan

Accounts receivable 200,000.00
Merchandise Inventory
5 Accounts receivable 960,000.00 Accounts receivable

Sales 960,000.00
Freight out 2,000.00 Cost of goods sold

Freight out
12 Cash 388,000.00 Cash

Sales Discount 12,000.00 Sales Discount
20 Cash 958,000.00 Cash

Perpetual
Merchandise Inventory 2,160,000.00 Total goods available for sale: 1,599,600.00
Accounts Payable 2,160,000.00 Total units 15
Merchandise Inventory 12,000.00

Cash 12,000.00
Accounts Payable 540,000.00

Accounts payable 1,620,000.00

Cash 1,587,600.00
Perpetual
Sales 600,000.00
Cost of goods sold 319,920.00

No Entry
Sales returns and allowan 200,000.00



Sales 960,000.00

Freight out 2,000.00

388,000.00
Sales Discount 12,000.00
958,000.00
106,640.00
Shipping Freight Payment
Date Price Freight Terms Freight Amount Terms
Point Paid by Date
Swordsmith FOB Butterfly

Sep-01 2,700,500 10,750 Seller 2/10, n/30 Sep-12
Village Mansion
FOB
Swordsmith
Sep-05 2,100,000 Swordsmith 20,600 Seller 3/15, n/45 Sep-20
Village
Village
FOB
Swordsmith
Sep-10 1,900,250 Entertainment 20,100 Buyer 5/20, n/30 Sep-30
Village
District
FOB
Swordsmith
Sep-15 1,400,000 Swordsmith 10,225 Buyer n/30 Sep-20
Village
Village
Swordsmith FOB Infinity

Sep-30 2,300,650 10,250 Buyer 3/10, n/30 Oct-05
Village Castle
Account
Sales Sales Discount Net Sales Due to freight
Receivable
2,700,500.00 - 2,700,500.00 2,700,500.00 -
2,100,000.00 63,000.00 2,037,000.00 2,100,000.00 20,600.00
1,900,250.00 95,012.50 1,805,237.50 1,900,250.00 - 20,100.00
1,400,000.00 - 1,400,000.00 1,400,000.00 -
2,300,650.00 69,019.50 2,231,630.50 2,300,650.00 - 10,250.00

Discount Amount to be received
- 2,700,500.00
63,000.00 2,057,600.00
95,012.50 1,785,137.50
- 1,400,000.00
69,019.50 2,221,380.50
Invoice Date List Price Trade Discounts Credit Terms Date Paid
1. October 6 640,000.00 50%; 20% 2/10, EOM November 2
2. September 2 150,000.00 30%; 20% 2/10, n/30 Sep-09
3. July 7 640,000.00 20%; 10%; 5% 2/10,1/15, n/30 Jul-18
4. April 16 1,300,000.00 40%; 20% 2/10, n/30 Apr-22
5. April 27 1,800,000.00 30%; 15%; 5% 2/10, 1/15, n/30 May-10

Purchase Purchase Discounts Net Purchases Amount to be paid
256,000.00 - 256,000.00 256,000.00
84,000.00 1,680.00 82,320.00 82,320.00
437,760.00 4,377.60 433,382.40 433,382.40
624,000.00 12,480.00 611,520.00 611,520.00
1,017,450.00 10,174.50 1,007,275.50 1,007,275.50

ABC DEF GHI
Net Sales 140,000.00 182,000.00 250,000.00
Merchandise Inventory, 1/1/2023 30,000.00 50,000.00 70,000.00
Net cost of purchases 80,000.00 110,000.00 190,000.00
Goods available for sale 110,000.00 160,000.00 260,000.00
Merchandise Inventory, 1/31/2023 40,000.00 20,000.00 30,000.00
Cost of goods sold 70,000.00 140,000.00 230,000.00
Gross Profit rate based on sales 50% 8%
Gross Profit rate based on cost 30%
JKL MNO
290,000.00 600,000.00
171,000.00 120,000.00
160,000.00 390,000.00
331,000.00 510,000.00
70,000.00 10,000.00
261,000.00 500,000.00
10%
20%
I. LOSSES: On December 31, 2023, a fire at Swordsmith Village warehouse caused severe damage to its entire In
Swordsmith Village has a gross profit of 40% on cost. The records for the year ended December 31, 2023 showed begin
purchases of P24,000,000 and net sales of P15,000,000. A physical Inventory disclosed usable damaged swords which
estimated value of the swords destroyed by the fire on December 31, 2023 should be?
Net Sales: 140% 15,000,000.00 Ending Inventory BEFORE the fire: 18,285,714.29
Less: COGS 100% 10,714,285.71 Ending Inventory AFTER the fire: 1,500,000.00
Gross Profit: 40% 4,285,714.29 Destroyed by the fire: 16,785,714.29
Beginning Inventory: 5,000,000.00

Net Purchases: 24,000,000.00
TGAS: 29,000,000.00
Less: Ending Inventory 18,285,714.29
COGS: 10,714,285.71
severe damage to its entire Inventory. Based on recent history,
mber 31, 2023 showed beginning inventory of P5,000,000, net
able damaged swords which can be sold for P1,500,000. The
Date Account Title Debit Credit
1 Cash 500,000.00
E.D, Capital 500,000.00
1 Equipment 72,000.00
Cash 72,000.00
1 Prepaid Insurance 24,000.00

Cash 24,000.00
12 Purchases 30,000.00
Cash 30,000.00
14 Cash 30,000.00
Sales 30,000.00
15 Notes Receivable 24,000.00

Sales 24,000.00
20 Purchases 4,000.00
26 Accounts Receivable 34,000.00

Sales 34,000.00
27 Accounts Payable 2,000.00

Cash 2,000.00
29 Cash 20,000.00
Accounts Receivable 20,000.00
Adjusting Entries
A. Depreciation Expense 1,500.00
Accumulated Depreciation 1,500.00
B. Insurance Expense 2,000.00

Prepaid Insurance 2,000.00
C. Interest Receivable 100.00

Interest Income 100.00
D. Merchandise Inventory, End 21,000.00

Income Summary 21,000.00
E. Doubtful account expense 2,000.00

Allowance for doubtful accounts 2,000.00
F. Salaries expense 20,000.00
Salaries Payable 20,000.00
Entertainment District
Adjusted Trial Balance
December 31, 2023
Account Title Debit Credit

Cash 422,000.00
Accounts Receivable 14,000.00
Allowance for doubtful accounts 2,000.00
Notes Receivable 24,000.00
Interest Receivable 100.00
Prepaid Insurance 22,000.00
Merchandise Inventory, End 21,000.00
Equipment 72,000.00
Accumulated Depreciation 1,500.00
Salaries Payable 20,000.00
E.D, Capital 500,000.00
Sales 88,000.00
Interest Income 100.00
Purchases 34,000.00
Doubtful account expense 2,000.00
Salaries expense 20,000.00
Depreciation Expense 1,500.00
Insurance Expense 2,000.00
Income Summary 21,000.00
634,600.00 634,600.00
2 2

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I.

PERIODIC & PERPETUAL

12 Freight in 12,000.00 Merchandise Inventory

15 Accounts Payable 540,000.00 Accounts Payable

20 Accounts payable 1,620,000.00 Accounts payable

December Periodic Perpetual

Cost of goods sold

4 Sales returns and allowances 200,000.00 Sales returns and allowan

5 Accounts receivable 960,000.00 Accounts receivable

Freight out 2,000.00 Cost of goods sold

12 Cash 388,000.00 Cash

20 Cash 958,000.00 Cash

Merchandise Inventory 12,000.00

Accounts Payable 540,000.00

Accounts payable 1,620,000.00

Cost of goods sold 319,920.00

Sales returns and allowan 200,000.00

Merchandise Inventory 106,640.00

Accounts receivable 960,000.00

Cost of goods sold 426,560.00

Freight out 2,000.00

Swordsmith FOB Butterfly

Swordsmith FOB Infinity

2,700,500.00 - 2,700,500.00 2,700,500.00 -

2,100,000.00 63,000.00 2,037,000.00 2,100,000.00 20,600.00

1,900,250.00 95,012.50 1,805,237.50 1,900,250.00 - 20,100.00

1,400,000.00 - 1,400,000.00 1,400,000.00 -

2,300,650.00 69,019.50 2,231,630.50 2,300,650.00 - 10,250.00

1. October 6 640,000.00 50%; 20% 2/10, EOM November 2

2. September 2 150,000.00 30%; 20% 2/10, n/30 Sep-09

3. July 7 640,000.00 20%; 10%; 5% 2/10,1/15, n/30 Jul-18

4. April 16 1,300,000.00 40%; 20% 2/10, n/30 Apr-22

5. April 27 1,800,000.00 30%; 15%; 5% 2/10, 1/15, n/30 May-10

256,000.00 - 256,000.00 256,000.00

84,000.00 1,680.00 82,320.00 82,320.00

437,760.00 4,377.60 433,382.40 433,382.40

624,000.00 12,480.00 611,520.00 611,520.00

1,017,450.00 10,174.50 1,007,275.50 1,007,275.50

Beginning Inventory: 5,000,000.00

1 Prepaid Insurance 24,000.00

15 Notes Receivable 24,000.00

26 Accounts Receivable 34,000.00

27 Accounts Payable 2,000.00

B. Insurance Expense 2,000.00

C. Interest Receivable 100.00

D. Merchandise Inventory, End 21,000.00

E. Doubtful account expense 2,000.00

Account Title Debit Credit

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