1. Accounting 10Brought to you by: Ateneo Lex1 Accounting 10: Chapter 2

2. Accounting 10Brought to you by: Ateneo Lex2 Short problems

3. Accounting 10Brought to you by: Ateneo Lex3 Short Problem 1 During the Year 2004, William Company had revenues of P350,000 and expenses of P230,000. Total Liabilities at year-end amounted to P450,000 while the owner’s equity at the start of the year was P150,000. Compute for the total assets at the end of the year. Solution: Assets=Liabilities+ Equity 720,000 (ANS) =450,000+270,000

4. Accounting 10Brought to you by: Ateneo Lex4 Short Problem 2 Answer: Net Income = P294000 Sharon Company had total assets of P1,500,000 and liabilities of P490,000 on January 1, 2005. After six months of business operations,the assets totaled P1,900,000 while outstanding obligations amounted of P356,000. During the six-month period,the proprietor withdrew cash of P150,000 and some store supplies valued at P5,000. During the same period, the owner made additional investments of P245,000 cash and a second-hand store equipment originally costing P250,000 but with a current fair market value of only 60% of its original cost. Compute for the net income or loss during the six-months period.

5. Accounting 10Brought to you by: Ateneo Lex5 Short Problem 3 Manny Pacman Boxing School reported the following information pertaining to the business on December 31 of the current Year: Property, Plant and Equipment (net of depreciation)P5,000,000 Accounts Receivable 1,200,000 Prepaid Insurance 100,000 Unearned Boxing Revenue 400,000 Cash 2,500,000 Bank Loans Payable 1,100,000 Land 4,500,000 Accounts Payable 600,000 Accounts Payable 75,000 Marketable Securities (short-term investments) 1,400,000 Salaries Payable 600,000 a.How much is the toaal assets of Pacman Boing School on Dec. 31? P14,775,000 b.What is the amount of Manny Pacman’s capital on Dec. 31? P12,075,000

6. Accounting 10Brought to you by: Ateneo Lex6 Short Problem 4 Answer: 22,400

7. Accounting 10Brought to you by: Ateneo Lex7 Short Problem 5 Pasaway began the year 2004 with a cash of P172,000. In addition to earning a net income of P100,000 and making an owner’s withdrawal of P60,000 for personal use, the owner borrowed P240,000 from a local bank and purchased a brand new equipment for P360,000 with cash. Also, accounts receivable increased by P24,000 for services rendered on account. Assuming there were no other company transactions, compute thecash on hand at the end of the year? Answer: P68000

8. Accounting 10Brought to you by: Ateneo Lex8 Short Problem 6 Answer: Net Income = 207,000

9. Accounting 10Brought to you by: Ateneo Lex9 Short Problem 7 If Hanah Pin invested old office furniture and fixtures to her business costing P50,000 but with a current market of only P35,000, what would be the balance of the owner’s equity as of the end of the three- month period? Answer: P732,000

10. Accounting 10Brought to you by: Ateneo Lex10 Short Problem 8 Matam Puhin owns a company in Greenhills. It reported the following assets as of December 31, 2004: Cash, P70,000; Accounts Receivable, P154,000; Inventory, P100,000; Land, P400,000; Equipment, P310,000; Factory Building, P5,000,000. Total owner’s equity is 2/3 of the total assets. The Total liabilities are 1/2 of the total owner’s equity. The accounts payable is 1/6 of the total liabilities. What is the balance of the accounts payable? Answer: Accounts Payable: P335,222.22

11. Accounting 10Brought to you by: Ateneo Lex11 Short Problem 9 On December 31, 2004, Paha Mak Company had total assets of P160,000 and total liabilities of P40,000. During 2005, the company had service revenues amounting to P140,000 and total expenses of P100,000. Moreover, during that year, Paha Mak took P20,000 for his personal use. Assuming that on December 31, 2005, the total assets of the company amounted to P200,000, how much was the year-end total liability balance? Answer: Total Liability= P60,000

12. Accounting 10Brought to you by: Ateneo Lex12 Short Problem 10 Answer: P457,500

13. Accounting 10Brought to you by: Ateneo Lex13 Short Problem 11 Answer: 225,000

14. Accounting 10Brought to you by: Ateneo Lex14 Short Problem 12 Answer: Assets increase by: P25,000

15. Accounting 10Brought to you by: Ateneo Lex15 Short Problem 13 Answer: Cash = P16,000

16. Accounting 10Brought to you by: Ateneo Lex16 Short Problem 14 Answer: Insurance Coverage on Assets: 58,000

17. Accounting 10Brought to you by: Ateneo Lex17 Short Problem 15

18. Accounting 10Brought to you by: Ateneo Lex18 Short Problem 16 Answer: Revenues for company A: P547,000 Expenses for company B: P300,000

19. Accounting 10Brought to you by: Ateneo Lex19 Short Problem 17 Answer: P225,000

20. Accounting 10Brought to you by: Ateneo Lex20 Short Problem 18 865000 820000 NO

21. Accounting 10Brought to you by: Ateneo Lex21 Long Problems

22. Accounting 10Brought to you by: Ateneo Lex22 Long Problem 1

23. Accounting 10Brought to you by: Ateneo Lex23

24. Accounting 10Brought to you by: Ateneo Lex24

25. Accounting 10Brought to you by: Ateneo Lex25 Long Problem 1: Answer A. Journal Entries

26. Accounting 10Brought to you by: Ateneo Lex26 Long Problem 1: Answer A. Journal Entries

27. Accounting 10Brought to you by: Ateneo Lex27 Long Problem 1: Answer B. Trial Balance

28. Accounting 10Brought to you by: Ateneo Lex28 Long Problem 2

29. Accounting 10Brought to you by: Ateneo Lex29

30. Accounting 10Brought to you by: Ateneo Lex30

31. Accounting 10Brought to you by: Ateneo Lex31 Long Problem 2 Answer A. Income Statement

32. Accounting 10Brought to you by: Ateneo Lex32 Long Problem 2 Answer B. Balance Sheet

33. Accounting 10Brought to you by: Ateneo Lex33 Long Problem 2 Answer C. Statement of Changes in Owner’s Equity

34. Accounting 10Brought to you by: Ateneo Lex34 Long Problem 3

35. Accounting 10Brought to you by: Ateneo Lex35 Long Problem 3 Answer Income Statement

36. Accounting 10Brought to you by: Ateneo Lex36 Long Problem 3 Answer Balance Sheet

37. Accounting 10Brought to you by: Ateneo Lex37 Long Problem 4

38. Accounting 10Brought to you by: Ateneo Lex38 Long Problem 4

39. Accounting 10Brought to you by: Ateneo Lex39 Long Problem 5