Accounting 1

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I. SHORT PROBLEMS. PRESENT YOUR SOLUTIONS IN GOOD FORM. ENCIRCLE AND DOUBLE RULE YOUR FINAL
ANSWERS.

1. NYK Corporation began operations on September 1. During September, the company purchased 1,000 pairs of
gloves at a cost of P300 per pair. By the end of September, the company had sold all the gloves for P420 per pair. The
company's operating expenses for September was P80,000.00 and its effective income tax rate was 30%.
1. Determine the company's September sales revenue.

2. Determine the company's September cost of goods sold.

3. Determine the company's September gross profit.

4. Determine the company's September income before taxes.

5. Determine the company's September income taxes expense.

6. Determine the company's September net income.

2. During February, the Reeney Corporation purchased P560,000 of merchandise inventory, with P20,000 discount
and returned P40,000 of the merchandise. The company sold to customers merchandise that cost the company
P420,000. At the end of February, the company had P150,000 of merchandise on hand. Calculate the cost of
merchandise inventory the Reeney Corporation had on hand at the beginning of February.

3. At the beginning of May, the BOS Corporation had merchandise inventory of P70,000 on hand. During May, the
BOS Corporation purchased P360,000 of merchandise inventory. The company returned merchandise that cost the
company P20,000. At the end of May, the company had P40,000 of merchandise on hand. Calculate the cost of
merchandise the BOS Corporation sold to its customers during May.
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4. At the beginning of June, the Pierce Corporation had on hand merchandise that cost P27,000. During June, the
company purchased P106,000 of merchandise inventory and returned P18,000 of the merchandise. The company
sold to customers merchandise that cost the company P96,000.
Calculate the cost of merchandise inventory that the Pierce Corporation had on hand at the end of June.

II. Hawks Retail Store show the following data related to Item 4121:

Goods Available for Sale: Quantity Unit Cost Total Cost

Inventory, beg. 1200 P250 P300,000
January 5 2000 260 520,000
January 10 1500 270 405,000
January 15 2500 280 700,000
TOTAL 7200 P1,925,000

Goods Sold During the Period: Quantity Unit Cost Total Cost
January 8 2300 350 805,000
January 26 3200 360 1,152,000
TOTAL 5500 P1,957,000

INVENTORY LEDGER
Item 4121
Purchased Sold Balance
Date PR
Quantity Cost Total Quantity Cost Total Quantity Cost Total
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III. The following unadjusted trial balance and adjustment data were gathered from the ledger accounts and other
records of Brooklyn Company:
Brooklyn Company
Unadjusted Trial Balance
December 31, 2017
Cash Php 90,000.00
Accounts Receivable 45,000.00
Inventory 95,000.00
Prepaid Insurance 25,000.00
Property, Plant and Equipment 100,000.00
Accounts Payable Php 35,000.00
Unearned Revenue 10,000.00
Notes Payable 50,000.00
D. Russell, Capital 215,000.00
Sales 200,000.00
Cost of Goods Sold 70,000.00
Interest Expense 6,500.00
Rent Expense 13,500.00
Salaries Expense 65,000.00
Totals Php 510,000.00 Php 510,000.00
Adjustment data:
1. Accrued and unpaid salaries of employees amounted to P15,000.00
2. Cash deposited on bank generated an interest worth P600.00
3. Unearned sales of P7,000.00 have been earned.
4. The prepaid insurance figure represents the cash payment for the 5-year insurance premium
contract. This was purchased at the beginning of the year.

Required:
1. Adjusting Journal Entries
2. Adjusted Trial Balance
3. Prepare the companys Financial Statements:
a. Statement of Comprehensive Income
b. Statement of Changes in Owners Equity
c. Statement of Financial Position
4. Closing Entries