FDNACCT_Quiz 2_Class Review

A business has the following information for the month of November:Cash investment of the owner for P500,000. P45,000 cash collected from walk in customers for services for the month of November. P35,000 cash collected for customers for services to be provided in December.A electric bill amounting to P9,200 from Meralco for the month of November,  which was paid in December. A purchase of equipment for P45,000 dated November 1. Terms 30% down payment, 70% on account. P20,000 cash payment for the owner's personal condo unit. How much is the balance of cash at the end of November?

(a)  

A business started its operations on June 30, 20A1, with a P240,000 investment from the owner's personal savings and P120,000 from a bank loan. On November 20, 20A1, the owner withdrew P10,000 cash. During the first half of the year, the net income of the business was P48,700. Accordingly, no other transactions affected owner’s equity in 20A1. By the end of the year, the liabilities have increased by P45,000 due to business payables. How much is the total assets on December 31?

(a)  

Accounts Receivable has a balance of P50,000 at the start of the month. During the month, the business sold merchandise amounting to P80,000 less 20-less 10, on terms 20% down, balance on account. P30,000 of account was collected at the end of the month. How much is the balance of Accounts Receivable at month-end?

(a)  

An entity has a 180-day, 10% promissory note with a face value of P12,000. It was issued on June 1.

When is the due date of this note?

(a)  

An entity has a 180-day, 10% promissory note with a face value of P12,000. It was issued on June 1.

How much is the interest expense on the note?

(a)  

An entity has a 180-day, 10% promissory note with a face value of P12,000. It was issued on June 1.

How much is the maturity value of the note?

(a)  

An entity has a 180-day, 10% promissory note with a face value of P12,000. It was issued on June 1.

How much will be credited as Accounts Payable if the note is not paid on maturity date?

(a)  

Silver Co. sold merchandise to Bronze Co. on account, P30,000 less trade discount of 10%-5%, terms 2/15, net 45. The cost of the merchandise sold is P18,500. Silver Co. issued a credit memorandum for P2,500 for merchandise returned that originally cost P1,900. The Bronze Co. paid the invoice within the discount period. What is amount of net sales from the above transactions?

(a)  

Merchandise subject to terms 1/10, n/30 is sold on account to a customer for P15,000. FOB term is DP and the seller paid transportation costs of P1,000 and issued a credit memorandum for P5,000 prior to payment. What is the amount of the cash discount allowable?

(a)  

Details of invoices for purchases of merchandise are as follows:

Terms: FOB DP, Prepaid; n/30

Purchases: P5,600

Freight amount: P50

Returns & Allowances: P500

Determine the amount to be paid in full settlement of the invoice, assuming that credit memo for returns and allowances was received prior to payment and that the invoice paid within the discount period.

(a)