Test II: Problem Solving: Prepare the requirements of the problem.
Problem 1: Comprehensive Problem
Read the comprehensive problem carefully and use the following information to complete the
requirements below.
Listed below are the February 1, 2021 account balances of the Teresita Garzon Shoes:
110
120
130
140
150
160
170
175
180
185
210
220
230
310
320
330
410
420
430
510
520
530
540
610
620
630
640
650
660
670
680
690
Cash
P
Account Receivables
Merchandise Inventory
Supplies
Prepaid Insurance
Land
Building
Accumulated Depreciation-Building
Equipment
Accumulated Depreciation-Equipment
Accounts Payable
Salaries Payable
Mortgage Payable
Garzon, Capital
Garzon, Withdrawals
Income Summary
Sales
Sales Return and Allowances
Sales Discounts
Purchases
Purchase Return and Allowances
Purchase Discounts
Transportation In
Salaries Expense
Supplies Expense
Insurance Expense
Depreciation Expense- Building
Depreciation Expense- Equipment
Transportation Out
Advertising Expense
Interest Expense
Miscellaneous Expense
33,000.00
192,000.00
413,000.00
51,000.00
48,000.00
460,000.00
1,750,000.00
P
350,000.00
2,310,000.00
630,000.00
108,000.00
2,600,000.00
1,569,000.00
P 5,257,000.00
P 5,257,000.00
During the month of February 2021, the following transaction occurred:
Feb
1
2
4
Collected P113,000.00 from customers on account
Paid P64,000.00 of accounts due less discounts of 3%
Purchased merchandise, P170,000.00. Terms: FOB sipping point; 3/10, n/30
5
7
7
8
9
10
12
14
15
16
18
19
20
22
23
24
24
25
26
28
28
Sold merchandise on account to Gonzales Inc., P270,000.00. Terms: FOB
shipping point; 2/10, n/30
Paid for advertising for the month of February, P6,000.00
Sold merchandise for cash, P250,000.00
Paid the amount due from the Feb. 4 transaction
Paid Iloilo Freight P4,000.00 for delivering merchandise last Feb 4
Received returns from the Gonzales Inc., P70,000.00
Received payment from the Gonzales Inc. less return and discounts
Paid P26,000.00 interest on the mortgage payable
Paid salaries, P51,000.00
Sold merchandise on account to Ronzales Corp., P392,000.00. Terms: FOB
destination; 2/10, n/30
Paid P4,000.00 freight charges on the sale of Feb 16
Acquired supplies for cash, P21,000.00
Purchase P125,000.00 of merchandise from Lozada Imports on account. Terms:
FOB Destination; 3/10, n/30
Paid P7,000.00 miscellaneous expense
Received payment from Ronzales Corp. less discounts
Purchase P373,000.00 of merchandise on account from Augustin Enterprises.
Terms: FOB shipping point; 3/10, n/30
Paid La Paz Express P9,000.00 freight for delivering merchandise acquired from
Agustin
Sold merchandise to Ronzales Corp. on account, P420,000.00. Terms : FOB
shipping point; 2/10, n/30
Received returns from Ronzales Corp., P71,000.00
Garzon withdrew P400,000.00 from the business
Return merchandise purchased from Agustin on June 24, P25,000.00
Additional Information on Feb.29
a. Salaries in the amount of P51,000.00 have accrued on Feb 29.
b. Insurance coverage with premiums of P2,000.00 has expired at month end
c. Depreciation on the building and on the equipment for the month amounted to P9,000 and
P12,000, respectively
d. Supplies on hand at month-end amounted to P14,000.00
e. A count of the merchandise inventory on Feb 29, 2021 amounted to P397,000.00
Requirements. Provide the following:
1.
2.
3.
4.
Prepare the Worksheet
Prepare the Adjusted Trial Balance
Prepare an Income Statement, Statement of Changes in Equity and Balance Sheet
Prepare the Adjusting and Closing Entries for the month