Alcera, Vincent Luigil
BSA 2-6
Assessment activities:
Make the necessary computations in good form.
1. At the beginning of 2020, Wayo Company’s assets amount to P 11,000,000 and the
liabilities amounting to P5,000,000. During the year, assets increased by P3,000,000,
while the liabilities decreased by P500,000. How much is the owner’s equity at the
end of the year?
Assets, beg. ₱ 11,000,000.00
Add: increase in assets 3,000,000.00
Less:
Liabilities, beg. ₱ 5,000,000.00
Less: decrease in liabilities 500,000.00 4,500,000.00
Owner's equity at year-end ₱ 9,500,000.00
2. The Rent Expense account had a balance of P30,000, representing five months’ rent
beginning December 1, 2020. The adjusting entry on December 31, 2020 will
include?
Rent Expense ₱ 30,000.00
Divide: months covered 5
Rent per month ₱ 6,000.00
Rent Expense ₱ 30,000.00
Less: rent used 6,000.00
Rent Unused ₱ 24,000.00
Prepaid Rent 24,000.00
Rent Expense 24,000.00
3. Phana Printing distributes a monthly sports magazine. On July 1, 2020, the entity sold
1,000 1-year subscriptions for P100 each. On December 31, 2020, the amount
reported as liability on the balance sheet and the amount reported as revenue on
the income statement are, respectively:
Price per unit ₱ 100.00
Multiply: subscriptions sold 1000
Revenue accrued ₱ 100,000.00
Divide: months covered 12
Monthly revenue accrued ₱ 8,333.33
Multiply: Period from July to December 6
Revenue Gained (reported as revenue) ₱ 50,000.00
Revenue accrued ₱ 100.00
Less: revenue gained 1000
Accrued Revenue (reported as liability) ₱ 100,000.00
4. Kit Organizers purchased an equipment costing P100,000 on July 1, 2019. The
equipment has an estimated useful life of 10 years with an estimated residual value of
P10,000. How much is the depreciation expense on December 31, 2020?
Cost price ₱ 100,000.00
Less: residual value 10,000.00
Depreciable amount ₱ 90,000.00
Divide: Useful Life 10
Depreciation for December 31, 2020 ₱ 9,000.00
5. On December 31, 2020, the end of Ming Company’s accounting period, the
company has outstanding Accounts Receivable of P400,000. The company
estimates that 5% of these receivables might not be collected. Assuming that
there is P12,000 (debit) balance for Allowance for Uncollectible Accounts, how
much is the debited Uncollectible Accounts Expense for the December 31,
2020 adjusting entry?
Outstanding receivables ₱ 400,000.00
Multiply: rate of non-collection 0.05
Estimated uncollectible amount ₱ 20,000.00
Add: Allowance for bad debts (debit) 12,000.00
Uncollectible Accounts Expense to record ₱ 32,000.00
6. On December 31, 2020, the end of Tea Company’s accounting period, the company has
outstanding Accounts Receivable of P400,000. The company estimates that 3% of these
receivables might not be collected. If there is P12,000 (credit) balance for Allowance for
Uncollectible Accounts, how much is the net realizable value of the accounts
receivable?
Outstanding receivables ₱ 400,000.00
Multiply: rate of non-collection 0.03
Estimated uncollectible amount ₱ 12,000.00
Less: Allowance for bad debts (credit) 12,000.00
Uncollectible Accounts Expense to record ₱ -
Net realizable value of accounts receivable ₱ 400,000.00
7. Beam Company has a P180,000, 10%, 120-day note receivable outstanding on
December 31. The note is dated October 1, 2020. What is the adjusting entry on
December 31, 2020?
Face value of note ₱ 180,000.00
Multiply: interest rate 0.10
Total ₱ 18,000.00
Multiply: time covered 0.33
Interest for one year ₱ 6,000.00
Divide: 4
Monthly interest ₱ 1,500.00
Multiply: months past 3
Interest paid for the year ₱ 4,500.00
Interest Receivable 4,500.00
Interest Revenue 4,500.00
