I need help . Full answer and Solution please

PLAYING THE ACCOUNTING EQUATION

1. Naruto Uzumaki is an owner of Konoha Enterprises, a sole proprietorship. The company's total assets is PhP726,000. The total liability is 1/3 of total equity. How much is total liability? How much is total equity? What is the accounting equation expressed in monetary form?

2. Sasuke Uchiha has total assets of PhP324,500. If liability is 32% of total assets, how much is total equity? Ho w much is total liability?

3. Itachi Uchiha's economic obligations amount to PhP120,000 and its residual interest amounts to PhP195,000. What is the amount of its total economic resources?

4. If the economic resources of HashiAkamarua Senju amount to PhP1,120,000 and its economic obligations amount to PhP880,000, What would its residual interest be?

5. If total owner's equity of Gaarah Company is thrice the total liability, which is 25% of total economic resources, what would be the owner's equity and liability of the company if total assets is PhP730,000?

6. Sakura Haruno's liability is 2/5 of its total equity. Its assets amount to PhP1,265,000. If total non-current liability is 35% of total liability, how much is total liability, total current assets, and total equity which is 5% higher to non-current assets?

7. Shikamaru Nara Company provided the following information:

1/1/2021 12/31/2021

Current assets 240,000 ?

Property, Plant and Equipment 1,600,000 1,700,000

Current liabilities ? 130,000

Noncurrent liabilities 580,000 ?

All assets and liabilities are reported at year end. Current Assets minus Current Liability is P92,000 and remained unchanged from 2020 to 2021. Net income in 2021 was P64,000. No dividends/equity transactions were declared/happened during 2021 and there were no other changes in Equity. What amount should be reported as noncurrent liabilities on December 31,2021?

a.340,000

b.432,000

c.580,000

d.616,000

BASIC JOURNAL ENTRIES

8. The entry to record payment for salaries amounting to P 10,000.

a. Cash P 10,000

Salaries Payable P 10,000

b. Cash P 10,000

Salaries Expense P10,000

c. Salaries Payable P 10,000

Cash P 10,000

d. Salaries Expense P 10,000

Cash P10,000

9. Performed professional services for cash P 38,000.

a. Service Revenue P 38,000

Cash P38,000

b. Cash P 38,000

Service Revenue P 38,000

c. Accounts Receivable P 38,000

Service Revenue P38,000

d. Service Revenue P 38,000

Accounts Receivable P 38,000

10. Bought office equipment on account P 8,640.

a. Office equipment P 8,640

Accounts Payable P 8,640

b. Accounts Payable P 8,640

Office Equipment P 8,640

c. Office Equipment P 8,640

Accounts Receivable P 8,640

d. Accounts Receivable P 8,640

Office Equipment P 8,640

11. Recording a single transaction in the double-entry accounting records may

a. Decrease the balance on a liability account by a given amount and decrease the balance on an asset account by the same amount.

b. Decrease the balance on an asset account by a given amount and increase the balance on liability account by the same amount.

c. Increase the balance on an asset account by a given amount and decrease the balance on a liability account by the same amount.

d. Increase the balance on one asset account by a given amount and increase the balance on another asset account by the same amount.

12. The purchase of supplies for cash will

a. Decrease cash and increase accounts payable

b. Decrease cash and increase capital

c. Increase supplies and decrease cash

d. Increase supplies expense and increase accounts payable

13. The company collected in full an account receivable. Considering this transaction alone,

a. Equity will increase

b. Total assets will decrease

c. Total assets will increase

d. Total assets will remain the same

BASIC ADJUSTING OF ENTRIES

14. The Supplies on Hand account balance of Hinata Hyuga at the beginning of the period was P6,600. Supplies totaling P12,825 were purchased during the period and debited to Supplies on Hand. A physical count shows P3,825 of Supplies on Hand at the end of the period. The proper journal entry at the end of the period

a.	debits Supplies on Hand and credits Supplies Expense for P9,000.
b.	debits Supplies Expense and credits Supplies on Hand for P12,825.
c.	debits Supplies on Hand and credits Supplies Expense for P15,600.
d.	debits Supplies Expense and credits Supplies on Hand for P15,600.

15. Kakashi Hatake received P12,000 from a tenant on December 1 for four months' rent of an office. This rent was for December, January, February, and March. If Kakashi debited Cash and credited Unearned Rental Income for P12,000 on December 1, what necessary adjustment would be made on December 31?

a.	Unearned Rental Income ............. 3,000 Rental Income .................... 3,000
b.	Rental Income ...................... 3,000 Unearned Rental Income ........... 3,000
c.	Unearned Rental Income ............. 9,000 Rental Income .................... 9,000
d.	Rental Income ...................... 9,000 Unearned Rental Income ........... 9,000

16. Captain Yamato Company paid P12,960 for a four-year insurance policy on September 1 and recorded the P12,960 as a debit to Prepaid Insurance and a credit to Cash. What adjusting entry should C. Yamato make on December 31, the end of the accounting period?

a.	Prepaid Insurance .................. 810 Insurance Expense ................ 810
b.	Insurance Expense .................. 1,080 Prepaid Insurance ................ 1,080
c.	Insurance Expense .................. 3,240 Prepaid Insurance ................ 3,240
d.	Prepaid Insurance .................. 11,880 Insurance Expense ................ 11,880

ACCOUNTING THEORITICAL CHALLENGE - ACCOUNTING BASIC CONCEPTS

Identify the term/s being described from the choices provided below.

_________________17. State the accounting equation.

_________________18. This step in the accounting cycle aims to provide a listing to verify the equality of debits and credits in the ledger

_________________19. This is a branch of accounting that provides general-purpose financial statements.

_________________20. The Father of Accounting.

_________________21. They are interested in information which enables them to assess the ability of the enterprise to provide remuneration, retirement benefits and employment opportunities.

A = L + OE	Employees	Manufacturing Company
Auditing	Credit	Merchandising Company
Debit	Trial Balance	Accounting
Euclid	A = L + OC + AI - W	Accountancy
Fra Luca Pacioli	Work Sheet Preparation	Eboy

ACCOUNTING THEORITICAL CHALLENGE - NORMAL BALANCE

State the normal balances of the following accounts. Put a check mark () for your answer on the space provided.

ACCOUNTS	DEBIT	CREDIT
22. Cash
23. Unearned Service Revenue
24. Account Payables
25. Accumulated Depreciation
26. Prepaid Expenses

ACCOUNTING THEORITICAL CHALLENGE - ELEMENTS OF FINANCIAL STATEMENTS

Identify the corresponding typical account title used, a of the following business elements. Put (x) for your answer on the space provided.

ACCOUNTS	ASSET	LIABILITY	EQUITY	REVENUE	EXPENSE
27. Deferred Expense
28. E, Drawings
29. Deferred Revenue
30. Accrued Income
31. Accrued Expense

ACCOUNTING THEORITICAL CHALLENGE - BUSINESS ACTIVITIES

Classify business activities as to operating, investing, or financing. Put an ( x ) for your answer on the space provided.

ACTIVITIES	FINANCING	INVESTING	FINANCING
32. Sold an equipment for cash
33. Paid utilities expense
34. Invested 10,000 cash to start business operation
35. Acquired land for cash
36. Collect 15,000 from accounts

MULTIPLE CHOICE QUESTIONS

____37. On June 30, a company paid P3,600 for insurance premiums for the current year and debited the amount to Prepaid Insurance. At December 31, the bookkeeper forgot to record the amount expired. The omission has the following effect on the financial statements prepared December 31:

a.	overstates owners' equity.
b.	overstates assets.
c.	understate net income
d.	both (a) and (b)

____38. An accrued expense can be described as an amount

a.	paid and matched with earnings for the current period.
b.	paid and not matched with earnings for the current period.
c.	not paid and not matched with earnings for the current period.
d.	not paid and matched with earnings for the current period.

____39. The premium on a two-year insurance policy expiring on June 30, 2013, was paid in total on July 1, 2011. The original payment was debited to the insurance expense account. The appropriate journal entry has been recorded on December 31, 2011. The balance in the prepaid asset account on December 31, 2011, should be

a.	the same as the original payment.
b.	higher than if the original payment had been initially debited to an asset account.
c.	lower than if the original payment had been initially debited to an asset account.
d.	the same as it would have been if the original payment had been initially debited to an asset account.

____40. An adjusting entry will not take the format of which one of the following entries?

a.	A debit to an expense account and a credit to an asset account.
b.	A debit to an expense account and a credit to a revenue account.
c.	A debit to an asset account and a credit to a revenue account.
d.	A debit to a liability account and a credit to a revenue account.

____41. An example of an adjusting entry involving a deferred revenue is

a.	Cash ............................... xxx Unearned Rental Revenue .......... xxx
b.	Rental Revenue ..................... xxx Cash ............................. xxx
c.	Unearned Rental Revenue ............ xxx Rental Revenue ................... xxx
d.	Accounts Receivable ................ xxx Sales ............................ xxx

____42. If an expense has been incurred but not yet recorded, then the end-of-period adjusting entry would involve

a.	a liability account and an asset account.
b.	an asset and an expense account
c.	a liability account and an expense account.
d.	a receivable account and a revenue account

____43. Failure to record depreciation expense at the end of an accounting period results in

a. understated income. b. understate assets c. overstate expenses d. overstate assets

INTENSE APPLICATION OF DEBIT AND CREDIT ART

The trial balance (debit & credit) of Dai-Maghinugak does not balance.

Dai-Maghinugak Company

Trial Balance

June 30, 2017

Particulars	Debit	Credit
Cash	Php.2,699.00
Accounts Receivable	7,600.00
Supplies	600.00
Equipment	8,300.00
Accounts Payable		9,766.00
E, Capital		1,952.00
E, Drawing	1,500.00
Service Revenue		15,200.00
Wages Expenses	3,800.00
Repair Expenses	1,600.00
Total	Php.26,099.00	26,918.00

An examination of ledger and journal reveals the following:

1. Each of the above listed accounts has a normal balance per general ledger.

2. Cash of Php.270 received from a customer on account was debited to cash Php.720 and credited to accounts receivable the Php.720.

3. A Withdrawal of Php.300 by the owner was posted as a credit to E, Drawing, Php.300 and credit to cash Php.300.

4. A debit of Php.300 was not posted to wages expenses.

5. The purchase of an equipment on account for Php.700 was recorded as a debit to Repairs expense and a credit to accounts payable for Php.700.

6. Services were performed on account for a customer, Php.620, for which the accounts receivable was debited Php.620 and service revenue was credited Php.62.

7. A payment on account for Php.225 was credited to cash for Php.225 and credited to Accounts Payable for Php.252.

44. In Dai-Maghinugak Inc. which is true?

a. Only Capital and Equipment did not change.

b. Drawings will be added twice by the amount omitted.

c. In the corrected trial balance, capital balance will be Php.1,652.

d. Equipment and supplies account will not change.

e. All the following are true.

45. In Dai-Maghinugak Inc. which is true?

a. In error 2, the journal entry is correct, but the posting is incorrect.

b. In error 4, journalizing and posting is done with incorrect amount.

c. In error 7, the journal entry is not balanced by Php.477.

d. In error 2, slide is committed.

e. None of the above is true

46. In Dai-Maghinugak Inc. which is false?

a. Capital and Supplies amount did not change.

b. Service Revenue corrected amount is Php.15,758 debit.

c. To correct Repair Expense, Php.700 is deducted.

d. Transposition is committed in recording the collection of the Receivables.

e. Both b and c

47. In Dai-Maghinugak Inc. which is true?

a. The correct equal amount of the trial balance is the original amount of debit.

b. There is insufficient data to balance the trial balance.

c. The Net Income for the period is Php.10,578.

d. Wages Expense is adjusted by Php.300 debit entry.

e. Both b and d.

48. In Dai-Maghinugak Inc. which is true?

a. Wages Expense is adjusted by Php.300 credit.

b. Repair expense is adjusted by Php.700 debit.

c. The original total expense is Php.5,000.

d. The total expense is adjusted by Php.400 net credit.

e. None of the above

49. Which reconstruction statement is correct?

a. The correct cash balance is adjusted by debit of Php.450.

b. The correct balance of permanent accrual accounts is Php.9,289 for receivables and Php.8,050 for payables.

c. To correct the drawing account, the journal entry includes debit to E, Drawing of Php.700.

d. E, Capital of Php.1,952 remained unchanged.

e. Both D and B are false.

50. Which reconstruction statement is correct?

a. The correct balance of equipment account is Php.700 lower than the original price.

b. Correct trial balance is impossible.

c. Correct Net asset is Php.10,610.

d. After all corrections, correct trial balance total asset is Php.700 lower than the original trial balance.

e. Correct trial balance can be reconstructed if sir eboy would extend us an hour to finalize our answers.

51. Which reconstruction statement is correct?

I. Current asset after all corrections is Php.10,499.

II. The reconstructed accounting equation can be expressed as Php.19,899 = Php.9,289 + Php.10,610.

III. After all corrections, the accounting equation expressed in amount is Php.19,899 = Php.9,766 + Php.10,133.

IV. Total corrected amount for expenses is Php.5,000 from Php.5,400.

a. I and II

b. II Only

c. II and IV Only

d. III and IV

e. All of the following are correct statements

52. Which reconstruction statement is correct?

I. After all corrections, total decrease in E, Capital is Php.7,000.

II. Service Revenue is increased by Php.558.

III. After all corrections, total increased in E, Capital is Php.14,642.

IV. After all corrections, the net decrease in equity is Php.8,658.

a. I and II

b. II Only

c. II and IV Only

d. III and IV

e. All of the following are correct statements

53. What is the total debit in trial balance after all corrections?

a. Php.27,000.00

b. 26,000.00

c. 26,008.00

d. 27,001.00

e. None of the above, because it is a 5-digit number with 4 inverse demonic number that even our accounting instructor would not dare to write.

COMPLETING THE ACCOUNTING CYCLE

1 - 100.	Presented below are the transactions of Bulastog Company owned by Mr. Bukayo: 2015 Aug. 1 Mr. Bukayo invested P650,000 in the business. 3 Paid for the three months' rent, P60,000. 4 Purchased equipment from Ginunawan Merchandising P110,000 paying 10%, and the balance after 10 days. 5 Made some repair service worth P30,000. 8 Bought supplies for the shop of Tinuktok, P14,000 on credit. 10 Performed repair service to Kinaluhkoh Company P15,000 on account. 14 Paid Ginunawan Merchandising in full. 16 Mr. Bukayo withdrew P75,000 cash for personal use. 17 Paid workers salaries for the month P18,000. 19 Received payment in advance for services to be rendered on September 30,2015, P35,000. 25 Acquired furniture and fixtures P65,000 on account.
1 - 15.	Prepare the chart of accounts using the following account titles. 110 Cash, 120 Accounts Receivable, 130 Prepaid Rent, 140 Supplies, 150 Equipment, 160 Furniture and Fixtures, 210 Accounts Payable, 220 Unearned Repair Service Revenue, 310 Bukayo, Capital, 320 Bukayo, Withdrawal, 410 Repair Service Revenue, 510 Salaries Expense
16 - 40.	Analyze and record business transactions using the journal.
41 - 52.	Post the recorded transactions in the ledger.
53 - 55.	Check the equality of debit and credit final totals through trial balance.
56 - 66.	Analyze the adjustments and prepare the journal entries. a. The equipment is estimated to last for 10 years with a residual value of P20,000. b. One-month rent has expired. c. Supplies used is worth P3,000. d. Ten percent (10%) of the accounts receivable is uncollectible.
67 - 75.	Have a worksheet.
76 - 90.	Prepare the financial statements Statement of Financial Performance Statement of Changes in Equity Statement of Financial Position
91 - 98.	Prepare the closing and reversing entrie(s).
99 - 100.	Post the closing entries in the ledger and prepare the Post-Closing Trial Balance.

MIND TWISTING BASIC ACCOUNTING PROBLEM

Presented below is an incomplete December 31, 2017, Statement of Financial Position of Anime Corporation.

Assets	Liability and Shareholders' Equity
Cash	Php.25,000.00	Trade Accounts Payable	Php. ?
Accounts Receivable (Net)	?	Income Tax Payable	25,000.00
Inventory	?	Long Term Debt	?
Property Plant and Equipment	294,000.00	Common Stock	300,000.00
		Retained Earnings	?
Total	Php.432,000.00	Total	Php.?

Additional Information:

1. If we are going to divide the total current assets by total current liabilities, the answer is 1.5.

2. Total Liability divided by Total Shareholders' Equity is .8

3. If we are going to divide total sales by total ending inventory the answer is 15.

4. However, if we are going to divide total Cost of Sales by total ending inventory the answer is 10.5.

5. The Sales deducted by Cost of Sales for 2017 is PhP315,000.00

Answer the following questions hereinbelow and show your solution.

1. What is the total Trade Accounts Payable of Anime?

2. What is the total Retained Earnings?

3. How much is the total Inventory?

4. How much is the balance of Accounts Receivable?

5. What is the total long-term debt?

JOURNALIZING OF ENTRIES

TRANSACTIONS FOR JANUARY 2020.

Jan. 2 Purchased a one-year insurance policy for P2,280. Use Prepaid Insurance account.

4 Purchased supplies for cash, P1,100.

5 Collected a total of P210 on account from credit customers during the first week of January.

7 Sold services for P3,070 in cash and P1,530 on credit during the first week of January. (Use a compound entry.)

9 Returned some supplies that were damaged. Received a cash refund of P100.

11 Paid advertising on the local radio station during the month, P560.

14 Collected a total of P300 on account from credit customers during the second week of January.

14 Sold services for P3,560 in cash and P1,790 on credit during the second week of January. (Use a compound entry.)

15 Paid P125 for maintenance work on the pool.

18 Purchased supplies on account from Ryan Inc., P800.

21 Collected a total of P750 on account from credit customers during the third week of January.

21 Sold services for P3,280 in cash and P1,620 on credit during the third week of January. (Use a compound entry).

23 Paid P250 for an advertisement in the local newspaper.

25 Received the monthly telephone bill and paid it for P110 cash.

26 Paid P5,000 to Alecx Inc. as a payment on account.

28 Collected a total of P970 on account from credit customers during the fourth week of January.

28 Sold services for P3,450 in cash and P1,750 on credit during the fourth week of January. (Use compound entry.)

30 Paid P170 for cleaning service for the month. (Classify this transaction as maintenance).

31 Paid P385 for the monthly bill for utilities. (Classify this transaction as maintenance)

31 Paid the monthly salaries of the employees. P10,100.

31 Sold services for P700 in cash and P350 on credit on January 30 and 31. (Use a compound entry.)

BASIC ACCOUNTING MISCELLANEOUS TEST

A. The fundamental accounting equation for several businesses is shown below. Supply the missing amounts.

ASSETS LIABILITIES OWNER'S EQUITY

1. P60,000 P 18,000 P ___________

2. P102,000 P __________ P 78,000

3. P_________ P 3,900 P 36,000

4. P_________ P99,000 (P9,000)

5. P23,000 P39,000 P____________

B. Supply the missing basic element of the results of operations:

REVENUES EXPENSES NET INCOME (LOSS)

1. P 790,000 P____________ P260,000

2. 4,200,000 P ___________ 640,000

3. 4,700,000 960,000 __________

4. __________ 5,600,000 920,000

5. __________ 6,800,000 ( 720,000 )

C. Analyze the following transactions. For each transaction, indicate the increase (+), the decrease (-), or no change (o) in the assets (A), liabilities (L), and owner's equity (OE) by placing the appropriate sign(s) in the appropriate column(s). More than one sign may be placed in the A, L, or OE column for a given transaction.

A L OE

1. Purchased supplies on account. (use asset method) _____ _____ _____
2. Charged customers for services sold on account. _____ _____ _____
3. Returned supplies purchased on account and not yet paid for. _____ _____ _____
4. Paid cash to owner for personal use. _____ _____ _____
5. Received cash from cash customers. _____ _____ _____
6. Paid cash for rent on building. (use expense method) _____ _____ _____
7. Collected on account receivable in full. _____ _____ _____
8. Received cash from owner as an additional investment. _____ _____ _____
9. Paid cash for supplies.(use expense method) _____ _____ _____
10. Paid cash to creditors on account. _____ _____ _____
11. Acquired equipment, paying 50% down, the balance due in 30 days. _____ _____ _____

12. Received electric bills to be paid next accounting period. _____ _____ _____

13. Paid salaries of employees. _____ _____ _____

14. Rendered services to clients, collected 50%, the balance due in 30 days. _____ _____ _____

15. Received cash for services to be rendered next accounting period. _____ _____ _____

D. Rules of debit and credit. Supply the missing word(s) for each statement.

1. Asset accounts normally have ___________ balances. An increase in asset is recorded as a __________while decrease in asset is recorded as a _____________.

2. Liability accounts normally have ____________balances. An increase in liability is recorded by a ____________and a decrease is entered as a ____________.

3. The owner's capital account normally has a _______________balance. This account increases on the ____________side and decreases on the _______________side.

4. Income accounts normally have _______________balances. These accounts increase on the ____________side and decrease on the ______________side.

5. Expense accounts normally have ___________balances. These accounts increase on the ______________side and decrease on the _____________side.

ACCOUNTING TERMINOLOGIES/JARGONS

PART I Match the following terms with the numbered statements below. Write only the letter corresponding to your answer on the space provided before the numbered statements.

a. Post-closing trial balance

b. Closing entries

c. Double-entry accounting

d. Prepaid expenses

e. Account statements

f. Credit

g. Business documents

h. Real accounts

i. Trial balance

j. Accrued expenses

k. Adjusting entries

l. Work sheet

m. Posting

n. General purpose financial

statements

o. General ledger

p. Contra account

q. Accrual accounting

r. Transactions

s. Debit

1. Accounts that are not closed to a zero balance at the end of each period.

2. A system of recording transactions in a way that maintains the equality of the accounting equation.

3. Exchanges of goods or services between entities.

4. Expenditures recorded on the books for goods and services not to be received or used up currently.

5. A system of accounting in which revenues and expenses are recorded as they are earned and incurred, not necessarily when cash is received or paid.

6. A book or computer printout of accounts that includes all asset, liability, owners' equity, revenue, and expense accounts.

7. The process of classifying and grouping similar transactions in common accounts by transferring amounts from the journal to the ledger.

8. Entries required at the end of each accounting period to update the accounts as necessary and to fully recognize, on an accrual basis, revenues and expenses for the period.

9. A listing of all account balances that provides a means of testing whether total debits equal total credits for all accounts.

10. A columnar schedule used to summarize accounting data; often used to facilitate the preparation of the financial statements.

11. An entry on the right side of an account.

12. A listing of all real account balances after the closing process has been completed.

13. Expenses that have been incurred for which payment is not to be made until a subsequent period.

14. An entry on the left side of the account.

15. Entries that reduce all nominal accounts to a zero balance at the end of each accounting period.

PART II. Match the following terms with the numbered statements below. Write only the letter corresponding to your answer on the space provided before the numbered statements.

A. Accounting Equation

B. Accrual Basis

C. Adjusting Entries

D. Assets

E. Balance Sheet

F. Book Value

G. Cash Basis

H. Chart of Accounts

I. Closing Entries

J. Contra-Account

K. Deferral

L. Depreciation

M. Double-entry accounting

N. Drawings

O. Expenses

P. Financing Activities

Q. General Journal

R. Income Statement

S. Investing activities

T. Journalizing

U. Ledger

V. Liabilities

W. Net Income

X. Operating Activities

Y. Owner's Equity

Z. Posting

AA. Prepaid Expenses

BB. Reversing Entries

CC. Statement of Cash Flow

DD. Statement of Changes in Owner's Equity

EE. Trial Balance

FF. Worksheet

1. The accounting method in which revenues are reported in the period in which they are earned, and expenses are reported in the period in which they are incurred.

2. The difference between the accumulated depreciation account and the related property and equipment account.

3. The allocation of the cost of property and equipment to expense over its useful life.

4. A working paper often used by accountants to summarize adjusting entries.

5. The entry required at the end of an accounting period to bring the accounts up to date and to ensure the proper matching of income and expenses.

6. A postponement of the recognition of an expense already paid, or of revenues already received in advance.

7. An account which is offset against another account.

8. The resources owned by a business.

9. The rights of creditors represented by debts of the business.

10. The form of balance sheet in which the liabilities and owner's equity sections are listed below rather than to the right of the assets section.

11. The financial statement that summarizes the financial position of a company on a particular date (usually the end of the accounting period).

12. The financial statement that summarizes the results of a company's operations for a period of time.

13. The excess of the revenue over the expenses incurred.

14. The process of recording a transaction in the journal.

15. The process by which the data in the journal entry is transferred to the appropriate accounts.

16. Assets or services consumed in the process of generating revenue.

17. The amount of withdrawals made by the owner of a sole proprietorship.

18. The residual claim against the assets of the business after the total liabilities are deducted.

19. A system for recording transactions, based on recording increases and decreases in accounts so that debits always equal credits.

20. A summary of the cash receipts and cash payments for a specified period of time, such as a month or a year.

21. A summary of the changes in the owner's equity that have occurred during a specific period of time, such as a month or a year.

22. Activities that include obtaining resources from and returning resources to owners as well as obtaining resources through borrowings and repayments of the amounts borrowed.

23. Activities that include the acquisition and disposition of property, plant and equipment and other long-term assets and debt and equity instruments of other enterprises that are not considered cash equivalents or held for dealing or trading purposes.

24. Principal revenue-producing activities of an enterprise and include delivering or producing goods for sale and providing service.

25. These entries set the balances of the nominal accounts back to zero to enable the company to measure the net income of the next period.

JOURNALIZING, POSTING AND TRIAL BALANCE PREPARATION

Iruka-sensei established a small business, Iruka-Konoha Training and Academy Center, to teach individuals how to use spreadsheet analysis, word processing, and other techniques on microcomputers. The following were the transactions for the first month of operations.

June 1 - Cruz began by transferring the following assets to the business: (use compound entry)

Cash - P184,000 Furniture - P62,000 Microcomputer - P146,000

1 - Paid the first month's rent on a small storefront, P5,600.

2 - Purchased computer software on credit, P15,000.

5 - Paid for an advertisement in the local newspaper, P2,000.

5 - Received enrollment applications from five students for a five-day course to start next week.

Each student will pay P4,000 if he or she actually begins the course to start next week.

10- Paid wages to a part-time helper, P3,000.

12-Received cash payments from three of the students enrolled on June 5, P12,000.

12-Billed the other two other students enrolled on June 5, who attended but did not pay in cash,P8,000.

16-Received payment from one student billed on June 12, P4,000.

17-Received cash from five students who enrolled for the second batch' sessions, P20,000.

20-Billed two students who enrolled for the second batch, P8000.

20-Collected from one student billed on June 12.

25-Paid utility bill for the current month, P2,200.

26-Made a payment on the software purchased on June 2, P5,000.

28-Purchased a second hand microcomputer for cash, P94,000.

30-The owner withdrew cash for personal use, P5,000.

Required:

1. Record the transactions in the General Journal using the following accounts: Cash; Accounts Receivable; Software; Furniture; Microcomputers; Accounts Payable; Cruz, Capital; Cruz, Drawings; Tuition Revenue; Wages Expense; Utility Expense; Rent Expense; and Advertising Expense.

2. Post the transactions in the General Ledger.

3. Have a trial balance using the current year.

FINANCIAL TRANSACTION WORKSHEET PREPARATION

Naruto Uzumaki started Uzumaki's Car Repairs Service on June 1 of the current year. During June, Uzumaki completed the following transactions:

a. Invested cash in the business, P600,000.

b. Bought a service vehicle from Sasuke Motors for P250,000, paying P100,000 in cash, with the balance due in thirty days.

c. Bought repair equipment on account from Sakura Company, P18,000.

d. Paid rent of repair shop for the month, P5,800.

e. Paid cash for insurance on service vehicle for the year, P5,750.

f. Received cash for repair services done on client's car, P21,750.

g. Bought supplies for cash, P4,730.

h. Billed customers on account for services performed, P8,500.

i. Paid cash for utilities, P960.

j. Received bill for gasoline used by the service vehicle during the month, P3,270.

k. Receipts from cash customers, P17,550.

l. Uzumaki withdrew cash for personal use, P10,000.

m. Paid salaries to employees, P20,500.

n. Received cash from credit customers, P3,500.

o. Made partial payment of an account on the purchase of service vehicle 100,000.

Required: Record the transactions for the month of June using a financial transaction worksheet. Use the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Prepaid Rent, Repair Equipment, Service Vehicle, Accounts Payable, and Uzumaki, Capital. If the owner's equity account is affected by a transaction, identify it as revenue, expense, investment or withdrawal.

Show that the accounting equation is satisfied after taking into consideration each of the following transactions in the books of Jiraiya-sama.

a. Started business with capital 1,00,000

b. Bought furniture 25,000

c. Bought goods for cash 20,000

d. Bought goods from Tsunade on Credit 5,000

e. Sold goods for cash for 15,000

f. Sold goods to Oruchimaru on credit 8,000

g. Paid cash to Tsunade 4,000

h. Received cash from Oruchimaru 5,000

i. Paid Cash into Bank 25,000

j. Withdrawn from bank 10,000

Following are the accounting transactions relating to Goku's business. Use the accounting equation to show their effect on his assets, liabilities and capital.

a. Commenced business with a Capital of 50,000

b. Bought Machinery for cash 10,000

c. Purchased goods for cash 15,000

d. Purchased goods from Gohan on credit 5,000

e. Sold goods for cash 10,000

f. Paid to Gohan 2,000

g. Sold goods to Goten on credit 3,000

h. Paid into Bank 6,000

i. Paid to Gohan by cheque 1,000

j. Received from Goten a cheque for 2,000

What are the two elements/accounts effected by the following transactions.

Also state the nature/kind/type of the elements

a. Paid Cash into Bank 25,000

b. Withdrawn from bank 5,000

c. Paid to Akamaru by Cheque 3,500

d. Received a cheque from Rock Lee 2,700

e. Purchased Machinery and paid by cheque 12,000

f. Salary paid by cheque 4,500

g. Commission received by Cheque 7,200

h. Withdrawn from bank for office expenses 5,000

i. Withdrawn from bank for personal use 3,000

j. Advertisement expenses paid by cheque 5,000

BASIC FINANCIAL PERFORMANCE PROBLEMS

Boruto Uzumaki Company provided the following information for the current year:

Sales 50,000,000

Cost of goods sold 30,000,000

Distribution costs 5,000,000

General and administrative expenses 4,000,000

Interest expense 2,000,000

Gain in early extinguishment of long-term debt 500,000

Correction of inventory error, net of income tax-credit 1,000,000

Investment income - equity method 3,000,000

Gain on expropriation 2,000,000

Income tax expense 5,000,000

Dividends declared 2,500,000

What is the net income?

a. 9,000,000

b. 8,000,000

c. 9,500,000

d. 7,000,000

Sarada Uchiha Company provided the following information for the current year:

Sales 7,000,000

Sales returns and allowances 100,000

Cost of goods sold 2,800,000

Utilities expense 1,000,000

Interest revenue 150,000

Income tax expense 800,000

Casualty loss due to earthquake 50,000

Finance cost 200,000

Salaries expense 600,000

Loss on sale of investments 50,000

What amount should be reported as income from continuing operations?

a. 1,550,000

b. 1,600,000

c. 2,350,000

d. 1,400,000

Mitsuki Company provided the following information for the current year:

Uncollectible accounts expense 2,000,000

Freight out 3,500,000

Cost of sales 40,000,000

Loss on sale of equipment 1,500,000

Loss from typhoon 3,000,000

Sales 90,000,000

Interest income 4,000,000

Administrative expenses 10,000,000

Finished goods inventory, January 1 60,000,000

Sales commissions 7,000,000

Finished goods inventory, January 31 55,000,000

Income tax rate 30%

What amount should be reported as income from continuing operations?

a. 30,000,000

b. 19,500,000

c. 27,000,000

d. 18,900,000