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    Practice Set For Intermediate Accounting

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    mdddddd
    The document provides financial information from Joel Penia's hardware store for March 31 and April 1. It includes assets, liabilities, cash receipts and payments. Supplementary data provides additional transactions. The required tasks are to 1) compute profit under single entry and 2) prepare an income statement under accrual accounting with schedules of revenue and expense items.

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    Practice Set For Intermediate Accounting

    Uploaded by

    mdddddd
    194 views2 pages
    The document provides financial information from Joel Penia's hardware store for March 31 and April 1. It includes assets, liabilities, cash receipts and payments. Supplementary data provides additional transactions. The required tasks are to 1) compute profit under single entry and 2) prepare an income statement under accrual accounting with schedules of revenue and expense items.

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    accrual

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    practice set for intermediate accounting

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    The document provides financial information from Joel Penia's hardware store for March 31 and April 1. It includes assets, liabilities, cash receipts and payments. Supplementary data provides additional transactions. The required tasks are to 1) compute profit under single entry and 2) prepare an income statement under accrual accounting with schedules of revenue and expense items.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    194 views2 pages

    Practice Set For Intermediate Accounting

    Uploaded by

    mdddddd
    The document provides financial information from Joel Penia's hardware store for March 31 and April 1. It includes assets, liabilities, cash receipts and payments. Supplementary data provides additional transactions. The required tasks are to 1) compute profit under single entry and 2) prepare an income statement under accrual accounting with schedules of revenue and expense items.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    Problem- The following data is obtained from a single entry records kept by Joel Penia, a proprietor of a

    small hardware supply store:


    March 31 April 1
    Cash 354,400 30,400
    Accounts Receivable 892,000 592,000
    Notes Receivable (Trade) 96,000 60,000
    Accrued Interest Receivable 13,600 10,400
    Merchandise Inventory 552,000 412,000
    Supplies on Hand 6,800 3,200
    Prepaid Interest Expense 4,800 -
    Furniture and Equipment 352,000 256,000
    Accumulated Depreciation-Furniture and Equipment 112,000 80,000

    Liabilities
    Notes Payable 200,000 -
    Accounts Payable 290,000 180,000
    Accrued Salary Expense 7,600 6,400
    Deferred Rent Revenue 12,800 10,800

    An analysis of the store’s business papers showed the following supplementary data:
    1. Sales returns and allowances amounting to P14,800 were credited to customers accounts.

    2. Purchase discounts of P18,400 were received from trade creditors.

    3. An old equipment was sold for P16,000, as recorded in cash receipts. The equipment was
    50% depreciated at the time of its sale.

    4. The cash receipts include the proceeds of bank loans for which notes of P320,000 were
    issued. The interest of P14,000 had been deducted by the bank in advance.

    5. Partial payment of P120,000 was made on the notes payable.

    The cash records show the following:


    Balance, April 1,2019 P304, 000
    Receipts:
    Cash Sales 156,000
    On accounts and notes receivable arising from sales 1,300,000
    From rental of office space 108,000
    From interest revenue 3,200
    From sale of equipment 16,000
    From discounting own notes at bank 306,000
    From additional investment 80,000 , 1,969,200
    Total 2,273,200
    Payments:
    On accounts payable for purchases 1,212,000
    For salaries 256,000
    For supplies 12,800
    For acquisition of new equipment 144,000
    For miscellaneous expenses 34,000
    To bank on notes payable 120,000
    Proprietor’s withdrawal 140,000 , 1,918,800
    Balance, March 31, 2020 354,400

    Required:
    1. Compute the profit under the single entry method.
    2. Income Statement under the accrual basis of accounting accompanied by schedules
    of revenue and expense items.

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