Professional Documents
Culture Documents
Fabm - Q2 - Las-For Learners
Fabm - Q2 - Las-For Learners
FUNDAMENTALS OF
ACCOUNTANCY,
BUSINESS AND
MANAGEMENT 1
Second Quarter
Copyright @ 2020
DEPARTMENT OF EDUCATION
Regional Office No. 02 (Cagayan Valley)
Regional Government Center, Carig Sur, Tuguegarao City, 3500
“No copy of this materials shall subsist in any work of the Government of the Philippines.
However, prior approval of the government agency or office wherein the work is created shall
be necessary for exploitation of such work for profit.”
This material has been developed for the implementation of the K to 12 Curriculum through the
Curriculum and Learning Management Division (CLMD). It can be reproduced for educational
purposes and the source must be acknowledged. Derivatives of the work including creating an
edited version, an enhancement of supplementary work are permitted provided all original
works are acknowledged and the copyright is attributed. No work may be derived from the
material for commercial purposes and profit.
ii
Consultants:
Regional Director ESTELA L. CARIŇO, EdD, CESO IV
Assistant Regional Director RHODA T. RAZON, EdD, CESO V
Schools Division Superintendent MADELYN L. MACALLING, PhD, CESO VI
Assist. Schools Division Supt. EDNA P. ABUAN, PhD
DANTE J. MARCELO, PhD, CESO VI
Chief Educ. Supervisor, CLMD OCTAVIO V. CABASAG, PhD Chief Education
Supervisor, CID RODRIGO V. PASCUA, EdD
Development Team
Writers : Marcris T. Domingo, Desserie R. Figuracion and Lourdes D. Pedro
Content Editors : Inocencio T. Balag,EPS Math, SDO Isabela
Cyril M. Pacunana, Claudine Sevilleja, Mary Mendoza
TABLE OF CONTENTS
Exercise 1
Directions: Analyse and prepare the necessary adjusting entries at year end 2019 of
the following independent transactions. Show your solutions.
{ 3 points each}
iv
2. On November 15,2019, VJK Company subscribed to the Globe services. The
monthly fee of P 4,000 is paid every 15th of the month. The payment on December
15, 2019 has been recorded by a debit to utilities expense and credit to Cash of
P4,000.
3. Roger’s rendered catering services last December 15,2019. The contract price
amounted to P 63,000. Since no payment had been received yet, Rogers did not make
any journal entry last Dec 15,2019.
Exercise 2
1. A firm purchased equipment on May 1, 2019 for P 60,000. It is estimated that the
equipment
will have a
P 6,000 residual value at the end of its ten-year useful life. Using the Straight line
Method of Depreciation, what will be the balance of the Accumulated Depreciation
account on December 31,2021.
v
3. Aegean Airlines purchased a five year insurance policy for its airlines on June
1, 2019 for the amount of P150,000 and debited it to an asset account. The company
uses a calendar as its accounting period. Assuming that June 1 is the effective date of
the policy, How much is the correct balance for the Prepaid Insurance account on
December 31,2019.
Exercise 3
Let us go deeper. This activity requires you to recall your knowledge in preparing
trial balance with carefully adding the adjusting entries for the adjusted trial
balance.
Directions: Prepare adjusting entries and adjusted trial balance of Praca General
Services
{ Adjusting entries : 3 points each}
As of January 31,2020
vi
d. Unearned service revenue, 3000
e. The unexpired Insurance premium during the month, P5,500,
Guide Questions:
1. What are the correct entries and how much will be the correct amount of each
adjusting entries for the adjustment?
2. How much is the amount of the totals of debit and credit of the adjusted trial
balance?
vii
Structure Heading is Correct heading Correct heading Correct heading
incorrect, omitted and double rule and double rule and
double rule in total the total the total double rule the
balance. Most of balance. Listing balance. Listing total balance.
the listed accounts of accounts of accounts is Listing of
is entered with 1-2 is not properly entered accounts is
incorrectly and properly with -3-4 properly
most of its entered with -3- incorrect entered with
amounts are not in 4 incorrect amounts in its correct
proper debit and amounts in its debit and credit amounts in its
credit column debit and credit column debit and credit
column column.
References:
viii
FUNDAMENTALS OF ACCOUNTANCY,
BUSINESS AND MANAGEMENT 1
Name of Learner: ________________________________ Grade Level:
_______________
Section: ________________________________________ Date:
_____________________
ix
entries. The balances of permanent or real accounts become the starting balances for
the next accounting period.
Exercise 1
Directions: Prepare the statement of financial performance using the information of
adjusted trial balance of Praca General Services for the Month of January 31, 2020.
x
Supplies Expense 4,200
Insurance Expense 500
Total P 165,400 P 165,400
Guide Questions:
1. What are the accounts included in preparing the Statement of Financial
Performance?
2. How much net income computed from the given transaction?
Exercise 2
Cash P 90,000
Accounts Receivable 70,000
Prepaid expense 30,000
Land 160,000
Building 200,000
Accounts Payable 170,000
Notes Payable 30,000
Sherwin’s, Capital 300,000
Allowance for Doubtful Accounts 5,000
Accumulated Depreciation 20,000
Reported net income 55,000
Guide Questions:
1. What will be the proper heading to be used for the Statement of Financial
Position?
2. Are the given transaction balances satisfy the equation Asset= Liabilities +
Owners Equity? If not, check the missing account and amount before proceeding
in preparing a statement of financial position.
3. Compute for the total Assets and Liabilities and Owner’s Equity.
Exercise 3: Let us go deeper. In this Activity, your knowledge on the whole
accounting process is needed. Please feel free to review your previous activities. And
I will give four hours to finish this activity.
xi
Directions: Prepare the complete accounting cycle of Mr.Kan for the month of
January 2020. Use all the information for the preparation below.
Mr. Chandler Kan established Tax and Accounting services and had the following
transactions for the month of January 2020
Jan
6 Kan Invested P 200,000 into the business
Received a charge Invoice from a supplier for the purchase of a desktop computer
amounting to P 33,000 on account. The computer is estimated to be useful for five
7 years and have a salvage value of 3,000 thereafter
9 Purchased supplies amounting to P 19,500 in cash.
13 Paid 12,000 insurance for 1 year
Issued a service invoice for an amount of P 50,000 to a customer for services
15 rendered on account.
16 Received collections from customers on account, P 40,000
20 Paid P 20,000 as partial payment for purchase of equipment on account
22 Billed P 30,000 to customer for the services rendered
23 Borrowed P 15,000 from the bank
31 Paid P 16,000 for the salaries of employees
31 Kan withdrew P 11,000 from the business
31 Paid the bill of telephone amounting to P 2,500
31 Supplies remaining on hand worth P 12,000
CHART OF ACCOUNTS
Guide Questions:
1. What will be the proper heading to be used for the Statement of Financial
Position, Statement of Financial Performance and Statement of Changes in Equity
and Cash flow statement?
2. What will be the correct account titles and how much will be the amount use
in the given transaction, in adjusting entries and in closing entries?
xiii
Concept Does not Does not Understands Shows clear
understand understand concepts in understanding
concepts in concepts in preparing trial of the concepts
preparing trial preparing trial balance very in preparing
balance and with balance very well with few Income
Major errors well with half errors. statement
errors.
Structure Heading is Correct heading Correct heading Correct heading
incorrect; and DOUBLE and DOUBLE and
DOUBLE RULE RULE the total RULE the total DOUBLE
in total balance is balance. Listing balance. Listing RULE the total
omitted. Most of of account titles of account titles balance. Listing
the listed accounts with 1-2 is not is properly of account titles
and amounts is properly entered with -3- is properly
entered incorrectly entered with -3- 4 incorrect entered with
4 incorrect amounts correct
amounts amounts
xiv
Structure Incorrect heading Correct heading Correct heading Correct heading
and DOUBLE and DOUBLE and DOUBLE and
RULE total RULE the total RULE the total DOUBLE
balance is omitted. balance. Listing balance. Listing RULE the total
Most of the listed of accounts of accounts is balance. Listing
accounts and with 1-2 is not properly entered of accounts is
amounts is entered properly with -3-4 properly
incorrectly entered with -3- incorrect entered with
4 incorrect amounts correct
amounts amounts
References
Textbook: Fundamentals of Accountancy, Business, and Management 1.
Isabela CPA Review Center Bookkeeping hands out
Teacher’s Guide: Fundamentals of Accountancy, Business, and Management 1.
Joselito G. Florendo, : Fundamentals of Accountancy,Business and Management 1
Valencia, et.al (2010). Basic Accounting 3rd ed. Valencia Educational Supply
Weygandt, J. et .al (20120. Accounting Principles 10th ed. John Wiley & Sons
(Asia) Pte. Ltd.
Reflection:
What did you learn from this activity?
______________________________________________________________________________
______________________________________________________________________________
_____________________________________________________________________
06-Jan
13
15
16
20
xvi
22
23
31
GJ-2
31
31
31
xvii
Account Name: CASH
xviii
Account Name: OFFICE EQUIPMENT
Account No.151 Balance
Date Particulars Post Debit Credit Debit Credit
xix
Account No. 311 Balance
xx
Date Particulars Post Debit Credit Debit Credit
xxi
ADJUSTING ENTRIES
GJ-3
31
xxii
Statement of Changes in Equity
ASSETS
xxiii
Cash Flow Statement
Closing Entries
GJ-4
31
31
31
January 31,2020
xxv
FUNDAMENTALS OF
ACCOUNTANCY, BUSINESS AND
MANAGEMENT 1
Name of Learner: ________________________________ Grade Level:
_______________
Section: ________________________________________ Date:
_____________________
xxvi
On the other hand, the Perpetual Inventory System is generally used when the
individual items have relatively large values. The inventory account is continually
updated for each inventory transaction.
Learning Competency with code
Describes the nature of transactions in a merchandising business
ABM_FABM11- IVe-j -35
Activity 1
Direction: Answer the following questions (10 points)
1. What distinguishes a merchandising business from a service business?
(3points)
Activity 2
Direction: Complete (fill-out) the missing item in the formula/s below:
1 Beginning Inventory (BI) +Cost of Goods Purchased (COGP) =
? _____________________________
2 Cost of goods available for sale (CGAS) - Ending Inventory (EI)
= ?
_____________________________
3 Sales - Cost of Goods Sold (COGS) = ? ____________________
xxvii
3. If the seller is to absorb the cost of delivering the goods, the terms
are stated (free on board) shipping point.
4. If the merchandise purchased on account is returned, the buyer may
inform the seller of the details by issuing an invoice
5. The purchases returns and allowances account is treated as a
deduction from the amount initially recorded as Purchases
Reflection
In this activity, I learned that
____________________________________________________________________
__________
____________________________________________________________________
__________
__________________________________________________________________
References
https://wbbbb-ams.blogspot.com/2012/07/nature-of-merchandising-business.html
https://en.wikipedia.org/wiki/Merchandising
FUNDAMENTALS OF ACCOUNTANCY,
BUSINESS AND MANAGEMENT 1
Name of Learner: ________________________________ Grade Level:
_______________
Section: ________________________________________ Date:
_____________________
xxviii
A journal entry is the next step in the accounting after analyzing business
transactions. In this step, all the general accounting transactions are recorded in
general journal in a chronological order. The journal is maintained essentially on the
concept of double entry system of accounting, where each transaction affects at least
two accounts.
For businesses with repetitive transactions, just like in a merchandising business, the
company may use special journals. Special journals record transactions of a specific
type. The four special journals are cash receipts journal, cash disbursements journal,
purchases journal and sales journal.
Activity 1
Perpetual Inventory Recording System of a Merchandising Business
The following Chart of Accounts are used by Lourd Brothers Trading Company
Store using the Perpetual Method
Lourd Brothers Trading Company’s transactions for March 2020 were as follows:
1 The business registered as a single proprietorship and Jaynielle Lopez
xxix
Bought merchandise on account from Andrew Supplies Company, P15,900 with
terms: 2/10, n/30
3 Bought office supplies for P700
6 Received credit memo from Andrew Supplies Company for merchandise return,
P300
Paid the following: Advertising P1,000, Utilities, P400, Rent P3,500, Salaries
P1,500
GJ-1
xxx
Date Account Title and Explanation Ref Debit Credit
01-Mar
xxxi
5
11
13
14
GJ-2
15
xxxii
16
17
18
20
23
26
xxxiii
27
28
29
30
GJ-3
30
xxxiv
Activity 2
The following Chart of Accounts are used by Lourd Brothers Trading Company
using the
Periodic Method
101 Cash 401 Sales
102 Accounts Receivable 402 Sales Discounts
103 Office Supplies 420 Sales Returns and Allowances
130 Inventory 501 Purchases
104 Computer Equipment 502 Purchases Returns and Allowances
201 Accounts Payable 503 Purchase Discounts
202 Notes Payable 504 Freight In
301 Lopez, Capital 605 Salaries Expense
302 Lopez, Drawing 601 Freight Out
330 Income Summary 602 Advertising Expense
603 Utilities Expense
604 Rent Expense
Lourd Brothers Trading Company’s transactions for March 2020 were as follows:
1 The business registered as a single proprietorship and Jaynielle Lopez
invested P40,000
2 Bought computer equipment for P10,000 cash
Bought merchandise on account from Andrew Supplies Company, P15,900
with terms: 2/10, n/30
3 Bought office supplies for P700
4 Sold merchandise on account to LB Leverage Company P15,200 FOB
Destination, terms: 2/10, n/30.Ref. SI#0001
5 Paid P200 freight for March 4 sale
xxxv
6 Received credit memo from Andrew Supplies Company for merchandise
return, P300
11 Paid Andrew Supply Company
13 Collected from LB Leverage Company
14 Bought merchandise from E Perol Enterprises, P13,400
15 Paid salaries of P1,500
16 Borrowed money from CIM Bank, signed a promissory note for P12,000
17 Received refund from a supplier on cash purchase on March 14, P500
18 Bought merchandise from Mia Lovella Distributors, P14,200 FOB Shipping
point , terms: 2/10, n/30
20 Paid freight on March 18 purchase, P700
Paid the following: Advertising P1,000, Utilities, P400, Rent P3,500, Salaries
P1,500
GJ-1
xxxvi
xxxvii
xxxviii
xxxix
Activity 3
xl
Direction:
Record the transactions of Lourd Brothers Trading Company in the Special Journals .
Lourd Brothers Trading Company’s transactions for March 2020 were as follows:
1 The business registered as a single proprietorship and Jaynielle Lopez
invested P40,000
2 Bought computer equipment for P10,000 cash
Bought merchandise on account from Andrew Supplies Company, P15,900
with terms: 2/10, n/30
3 Bought office supplies for P700
4 Sold merchandise on account to LB Leverage Company P15,200 FOB
Destination, terms:
2/10, n/30.Ref. SI#0001
5 Paid P200 freight for March 4 sale
6 Received credit memo from Andrew Supplies Company for merchandise
return, P300
11 Paid Andrew Supply Company
13 Collected from LB Leverage Company
14 Bought merchandise from E Perol Enterprises, P13,400
15 Paid salaries of P1,500
16 Borrowed money from CIM Bank, signed a promissory note for P12,000
17 Received refund from a supplier on cash purchase on March 14, P500
18 Bought merchandise from Mia Lovella Distributors, P14,200 FOB Shipping
point , terms: 2/10, n/30
20 Paid freight on March 18 purchase, P700
xli
30 Sold Merchandise to Collete’s Creations, P13,700, with terms 2/10, n/30.Ref/.
SI#0002
Paid the following: Advertising P1,000, Utilities, P400, Rent P3,500, Salaries
P1,500
Sales Journal
March 0001
4
0002
30
Cash Receipts
Journal
Date Account Re Dr. Cr. Accounts Cr. Cr. Other
Credited f Cash Receivable Sales Accounts
March
1
13
16
17
23
Purchases Journal
xlii
Account Dr. Merchandise Inventory
Date Credited Terms Ref Cr. Accounts Payable
2020
March 2
18
xliii
General Journal
GJ-1
2020
March 6
Reflection
In this activity I learned that
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________
Reference https://www.myaccountingcourse.com/accounting-dictionary/special-journal
xliv
xlv
FUNDAMENTALS OF ACCOUNTANCY,
BUSINESS AND MANAGEMENT 1
Name of Learner: ________________________________ Grade Level:
_______________
Section: ________________________________________ Date:
_____________________
xlvi
Activity 3 Prepare for the Cost of Goods Sold.
Chart of Accounts
July
1 Villa invested P128,000 in the business.
Acquired computer set for P21,000. Villa paid 5,000 and issued a promissory
note for the remaining balance.
2 Acquired supplies for cash, P1,200.
3 Purchase P81,900 of merchandise from LOWKEY company on account.
Terms: FOB Destination, 2/10, n/30.
5 Sold merchandise to THORE for P48,600 on account.
Terms: FOB Destination, 2/10, n/30.
The cost of merchandise sold was P28,880.
xlvii
Paid P550 freight on the same day.
7 Received collections from customers billed on sales of P48,600 on July 5.
9 Returned merchandise purchased from LOWKEY Company, P380.
11 Paid the amount due from July 3 transaction.
13 Purchase merchandise P12,300 and additional supplies P450 for cash.
15 Paid 15th month salary, P8,000.
16 Received refund for poor quality of merchandise from a supplier on cash
purchase made on July 13, P870.
18 Sold merchandise to various customers, P24,300.
The cost of merchandise is P16,500.
19 Purchase 15,800 of merchandise from Eleonor Shop.
FOB Shipping point, terms, 2/10, n/30.
23 Receive sales returns, P3,800 from various customers. Its cost is P2,900.
24 Borrowed money from Town Bank, signed promissory note for P13,500.
24 Paid freight on July 21 purchase, P580.
26 Sold merchandise on account for P36,800 terms, 2/10, n/30 FOB Destination.
The merchandise sold had a cost of P21,300.
28 Serenity Villa withdrew cash from the business, P9,000.
30 Paid Eleonor Shop in full.
31 Paid Salary to employees, P8,000.
31 Paid News Hub for 1 month advertisement of the store, P1,580.
Paid Rent and Utilities expenses for the month, P2,800 and P700
respectively. 31 Inventory count at the end of the month: P48,480.
2
xlviii
3
11
GJ-2
13
xlix
15
16
18
19
23
24
24
l
26
GJ-3
26
28
30
31
31
31
li
Date Particulars Post Debit Credit Debit Credit
01-Jul GJ-1
2
2
5
7
11
13
15
16
18
23
24
24
28
30
31
31
31
lii
Account Name: SUPPLIES
liii
Account No. 220 Balance
liv
Date Particulars Post Debit Credit Debit Credit
lv
Account Name: SALES RETURNS AND
ALLOWANCES
Account Name:
PURCHASES
lvi
Account Name: PURCHASES RETURNS AND ALLOWANCES
lvii
Account Name: SALARIES EXPENSE
lviii
Date Particulars Post Debit Credit Debit Credit
Reflection
Reference
Basic Financial Accounting and Reporting by Win Ballada, CPA
lix
FUNDAMENTALS OF ACCOUNTANCY,
BUSINESS AND MANAGEMENT 1
Name of Learner: ________________________________ Grade Level:
_______________
Section: ________________________________________ Date:
_____________________
lx
Activity 1: CHECK THE BALANCE
Direction: Given is the trial balance of Kaydee Lim Merchandising Company. The
company uses a perpetual inventory system. Assuming that there are no abnormal
balances, identify whether each account title is in its correct debit or credit column.
Put a check mark (√) if the balance is correct; otherwise, cross out the amount and
write it in its proper column. Prepare the corrected trial balance using the space
provided below.
KAYDEE LIM MERCHANDISING COMPANY
Trial Balance
December 31, 2019
Account Titles Dr Cr Answer
Cash ₱ 645,300
Accounts Receivable ₱ 10,000
Merchandise Inventory 513,300
Store Supplies 10,000
Furniture and Fixtures 80,000
Equipment 450,000
Accounts Payable 265,000
Kaydee Lim, Capital 1,500,000
Kaydee Lim, Drawings 50,000
Sales 610,000
Sales Returns and Allowances 5,000
Sales Discount 2,400
Cost of Goods Sold 452,500
Salaries Expense 30,000
Advertising Expense 1,500
Freight Out 5,000
lxi
Trial Balance
Account Titles Dr Cr
lxii
Activity 2: COMPLETE ME
Direction: Given is an incomplete trial balance of Averill Merchandising using the
periodic inventory system. Fill in the missing accounts by using the following
additional information taken from the ledger account balances and compute for the
total balance.
Accounts Receivable ₱ 19,700 Purchase Discount ₱ 1,116
Freight In 850 Freight Out 650
Notes Payable 25,000 Averill, Capital 150,000
Advertising Expense 2,000 Cash 60,532
Averill, Drawings 5,000 Equipment 30,000
Sales 71,900 Sales Discount 714
Sales Returns and Allowances 800 Store Supplies 750
Purchase Returns and Allowances 1,080
AVERILL MERCHANDISING
Trial Balance
December 31, 2019
Account Titles Dr Cr
Cash
750
Equipment
Accounts Payable 9,100
Averill, Capital
Averill, Drawings
71,900
Sales Returns and Allowances
Purchases 109,000
lxiii
Purchase Returns and Allowances
850
Salaries Expense 25,000
Advertising Expense
Total
lxiv
Trial Balance
Account Titles Dr Cr
lxv
Activity 4: PREPARING TRIAL BALANCE (PERPETUAL INVENTORY SYSTEM)
Direction: Using the information from the ledger account balances of Mae
Merchandising for the month of July 2019, prepare the trial balance for the Perpetual
Inventory System in a two-column columnar.
Cash ₱ 45,180 Sales 67,200
Accounts Receivable 24,700 Sales Returns and Allowances 800
Merchandise Inventory 17,830 Sales Discount 320
Store Supplies 800 Cost of Goods Sold ₱ 52,720
Equipment 15,000 Salaries Expense 5,000
Accounts Payable 11,000 Utilities Expense 700
Notes Payable 15,000 Freight Out 650
Mae, Capital 80,000 Rent Expense 2,500
Mae, Drawings 5,000 Advertising Expense 2,000
Trial Balance
Account Titles Dr Cr
lxvi
Rubrics for Scoring Activity 3 and Activity 4
Criteria Excellent Good Fair NI
(10) (8) (5) (2)
Concept Shows clear Understands Do not have Do not have a
understanding of concepts in complete good
the concepts in preparing trial understanding understanding of
preparing a trial balance very of the concepts the concept in
balance. well with few in preparing preparing trial
errors. trial balance. balance.
Structure Observes proper Observes Observes Did not observed
listing of account proper listing proper listing of proper listing of
titles and amounts of account account account titles
are in its proper titles with 1-2 titles with 3-4 and amounts and
debit and credit amounts that amounts that not in its proper
column. With are not in its are not in its debit and credit
proper heading. proper debit proper debit column.
and credit and credit
Without proper
column. column.
heading.
With proper With proper
heading. heading.
lxvii
Reflection
Answer what is asked.
In your own words, what are the things you need to remember in preparing a trial
balance?
References
Teaching Guide for Senior High School. (2016) FUNDAMENTALS OF
ACCOUNTANCY, BUSINESS AND MANAGEMENT 1. Published by Commision
on Higher Education
Tugas, Florenz, et.al. (2016) FUNDAMENTALS OF ACCOUNTANCY,
BUSINESS AND MANAGEMENT 1. Vibal Group, Inc.
lxviii
FUNDAMENTALS OF ACCOUNTANCY,
BUSINESS AND MANAGEMENT 1
Name of Learner: ________________________________ Grade Level:
_______________
Section: ________________________________________ Date:
_____________________
lxix
3. Accumulated Depreciation
4. Prepaid Expense – Asset Method
5. Prepaid Expense – Expense Method
lxx
Across (Debited Account) Down (Credited Account)
1. To recognize expired portion of supplies.
2. To recognize expired portion of rent.
3. To record depreciation for the month.
4. To record accrued salaries expense.
5. To record bad debts.
Mema Company e
Unadjusted Trial
Balanc December
31, 2020
Account Titles Dr Cr
Cash ₱ 735,500
Accounts Receivable 243,000
Merchandise Inventory 372,900
Prepaid Rent 45,000
Store Supplies 10,000
Store Equipment 50,000
lxxii
Accumulated Depreciation – Store Equipment 0
Accounts Payable ₱ 298,775
Mema, Capital 1,105,000
Mema, Drawings 50,000
Sales 835,745
Sales Returns and Allowances 4,000
Sales Discount 1,620
Cost of Goods Sold 695,000
Salaries Expense 20,000
Utilities Expense 5,000
Freight Out 4,500
Advertising Expense 3,000
Total ₱ 2,239,520 ₱ 2,239,520
General Journal
Date Account Titles Dr Cr
lxxiii
Adjustments Adjusted Trial Balance
Account Titles
Dr Cr Dr Cr
lxxiv
Rubrics for Scoring
Criteria Excellent Good Fair NI
lxxv
1. CONCEPT Shows clear Understands Do not have Do not have a
(10 points) understanding principles in complete good
of the principles preparing understanding understanding of
in preparing adjusting entries of the the principles in
adjusting entries and adjusted principles in preparing
and adjusted trial balance preparing adjusting entries
trial balance. very well with adjusting and adjusted
few errors. entries and trial balance.
adjusted trial
balance
10 8 4
6
15
18
11
8
lxxvi
3. ADJUSTED Observes proper Observes proper Observes Did not observed
TRIAL listing of listing of proper listing of proper listing of
BALANCE account titles account titles account account titles
(27 points) and amounts are with 1-3 titles with 4-6 and amounts and
in its proper amounts that are amounts that not in its proper
debit and credit not in its proper are not in its debit and credit
column. debit and credit proper debit column.
Obtained equal column. and credit Obtained
and correct Obtained equal column. unequal debit
debit and credit debit and credit Obtained and credit
balances. balances but are unequal debit balances with 7
incorrect due to and credit or more errors.
1-3 errors balances with 4-
6 errors.
18
24
27
21
Reflection
Answer what is asked.
In your own words, what are the things you need to remember in preparing adjusting
entries?
References
Teaching Guide for Senior High School. (2016) FUNDAMENTALS OF
ACCOUNTANCY, BUSINESS AND MANAGEMENT 1. Published by Commision
on Higher Education
Tugas, Florenz, et.al. (2016) FUNDAMENTALS OF ACCOUNTANCY,
BUSINESS AND MANAGEMENT 1. Vibal Group, Inc.
lxxvii
FUNDAMENTALS OF ACCOUNTANCY,
BUSINESS AND MANAGEMENT 1
Name of Learner: ________________________________ Grade Level:
_______________
Section: ________________________________________ Date:
_____________________
lxxviii
(ABM_FABM11-IVe-j-40)
3. The learner prepares the Statement of Cost of Goods Sold and Gross Profit
(ABM_FABM11- IVe-j-41)
Activity 1: ARRANGE ME
Direction: Arrange the jumbled words and use those words to fill out the box to
reveal the eight steps of the Accounting Cycle.
1. GNIZRUOJLINA =
2. LRTAI NCBAAEL =
3. IIAALNNCF TTTMEEANSS =
4. LIONCGS ETH KSOOB =
5. IONSSCATTNAR =
6. JAUIGDNTS LJAOUNR EEISRTN =
7. OEESTWKRH =
8. SOTNPIG =
→
→ →
→
→ →
Direction: Identify which financial statement each account title is used. Write “SFP” if
it is under the Statement of Financial Position, “SCO” for Statement in Changes in
Owner’s Equity or “SCI” for Statement of Comprehensive Income.
1. Sales Returns and Allowances
2. Merchandise Inventory,End
lxxix
3. Utilities Expense
4. Owner, Capital – beginning
5. Accounts Receivable
6. Accounts Payable
7. Cost of Goods Sold
8. Sales Discount
9. Owner, Drawings
10. Freight Out
Activity 3: ACCOUNT TITLE SEARCH
Direction: Find and encircle the five (5) account titles in the grid that will complete
the schedule of cost of goods sold below.
A S D G E S F G N M P L F C B X
D C W X G N C O J E X S Z L B X
S D Q S O J B K F R D V O F G H
D F U Y K F T D L C F E C G H I
J M E I D W R G K H H M O E Q S
P T O R K L O S M A G N S S E D
C F R E I G H T I N M J T D G E
S C N M W X C O J D K F O N A W
M Y K J L R E D L I J D F S D D
J E P F M L G E I S P Z G D F U
W E U M D S J D P E T M O E I R
P U R C H A S E D I S C O U N T
Z E C A S D X C K N B N D O P L
T P H S C N N F D V G H S Q X S
I O A E E S H J K E H Z S A D V
Y U S S W X I H D N K F O B F E
T F E L Q S B G T T D W L T H M
R H S J U Y T R D O K L D R D N
E S F P E P L E J R D W L E O J
W X C D M X S D G Y C B X C K F
Q S B G E D V N M E L B N F D W
U Y T R W F E S D N F G H J K L
E I R E S S E D F D G H I H D V
lxxx
Schedule of Cost of Goods Sold
Net Purchases
Add: (3)
lxxxi
Activity 5: CLASSIFY ME
Direction: Classify the following account titles whether they are nominal/temporary
accounts or real/permanent accounts. Write the account title in the column where it is
classified.
Income Summary Merchandise Inventory Rent Expense
Accounts Payable Sales Purchases Prepaid Rent
Owner, Capital Owner, Drawings Store Supplies
LIM MERCHANDISING
Adjusted Trial Balance
December 31, 2020
Account Titles Dr Cr
Cash ₱ 45,180
Accounts Receivable 24,700
Store Supplies 800
Store Equipment 15,000
Accounts Payable ₱ 11,000
lxxxii
Notes Payable 15,000
Lim, Capital 80,000
Lim, Drawings 5,000
Sales 67,200
Sales Returns and Allowances 800
Sales Discount 320
Purchases 70,900
Purchase Returns and Allowances 880
Purchase Discount 320
Freight In 850
Salaries Expense 5,000
Utilities Expense 700
Freight Out 650
Rent Expense 2,500
Advertising Expense 2,000
lxxxiii
Income Statement
lxxxiv
Statement of Financial Position
Criteria Requirements
lxxxv
Schedule of Cost of Goods
Statement of Changes in
Statement of Financial
Statement of Financial
Performance
Owner’s Equity
Position
Sold
1. CONCEPT
Shows clear understanding of the
principles in preparing the
required financial report. (5) (5) (5) (5)
2. STRUCTURE
Classified all account titles to its
proper financial statement.
Observed proper listing of
account titles and amounts are
transferred correctly. (one point
each account title) (6) (9) (3) (8)
3. COMPUTATION
Use correct computation and
obtained correct total balances.
• Net Purchases (2)
• Total Goods Available for Sale (2)
• Cost of Goods Sold (3) (7)
• Net Sales (2)
• Gross Profit (2)
• Net Income (3) (7)
• Lim, Capital – end (3) (3)
• Total Assets (3)
• Total Liabilities and Owner’s
Equity (3) (6)
lxxxvi
lxxxvii
Post-Closing Trial Balance
Account Titles Dr Cr
Chart of Accounts
Assets Income
Current Assets 401 Sales
101 Cash 405 Sales Returns and Allowances
112 Account Receivable 406 Sales Discount
lxxxviii
113 Allowance for Doubtful Accounts 601 Cost of Goods Sold
115 Merchandise Inventory Operating Expenses
116 Prepaid Rent Distribution Costs
117 Store Supplies 707 Store Supplies Expense
160 Furniture and Fixture 703 Freight-Out
170 Store Equipment 708 Depreciation Expense-Store Equipment
171 Accumulated Depreciation-Store Administrative Expenses Equipment
Liabilities 701 Salaries Expense
201 Accounts Payable 702 Utilities Expense
202 Notes Payable 704 Rent Expense
203 Salaries Payable 705 Advertising Expense 204 Utilities
Payable 709 Doubtful Accounts
Business Transactions of Maeye Catoc Merchandising for the month of July 2020.
lxxxix
July 1, 2020 The business, Maeye Catoc Merchandising was registered as a single
proprietorship with the Department of Trade and Industry, Maeye invested ₱
130,000.
July 2, 2020 Bought store supplies on cash basis for ₱ 1,000.
July 2, 2020 Bought merchandise on account from Mina Las Merchandising, ₱ 26,400.
Terms: 2/10, n/30
July 3, 2020 Bought computer equipment on cash basis for ₱ 18,000. Salvage value of
3,000 and useful life of five years.
July 5, 2020 Sold merchandise on account ₱ 20,000, FOB destination, terms: 2/10, n/30.
The cost of goods sold was P16,560.
July 6, 2020 Paid ₱ 750 freight on July 5 sales.
July 6, 2020 Received credits from Mina Las Merchandising for merchandise returned, ₱
500.
July 10, 2020 Collected from July 5 transactions.
July 12, 2020 Paid Mina Las Merchandising.
July 14, 2020 Bought merchandise on cash basis ₱ 15,700.
July 15, 2020 Paid the following:
Advertising ₱ 3,500 Rent ₱ 3,000
Utilities ₱ 900 Salaries ₱ 3,000
July 17, 2020 Borrowed money from China Bank, signed a promissory note for ₱ 20,000.
July 17, 2020 Received refund from the supplier on cash purchased last July 14, ₱ 700.
July 18, 2020 Bought merchandise from Andy Lim Merchandising, ₱ 21,000, FOB
Shipping point, terms: 2/10, n/30
July 19, 2020 Paid freight on July 18 purchases, ₱ 850.
July 21, 2020 Bought merchandise for cash, ₱ 32,600.
July 23, 2020 Sold merchandise for ₱ 27,300. The cost of goods sold was ₱ 21,300.
July 24, 2020 Made refunds from cash customers, ₱ 1,300.
July 28, 2020 Paid Andy Lim Merchandising on the July 18 purchase, ₱ 10,000. No
discount for partial payment.
July 29, 2020 Maeye got cash from the business, ₱ 8,000.
xc
July 30, 2020 Sold merchandise on account ₱ 56,400. Terms: 2/10, n/30. The cost of goods
sold was ₱ 40,760.
Additional information:
xci
5
10
12
xcii
GENERAL JOURNAL PAGE 2
DATE ACCOUNT TITLE AND EXPLANATION PR DEBIT CREDIT
14
15
17
17
18
19
xciii
21
23
23
24
24
28
xciv
29
30
30
2. Posting Entries
GENERAL LEDGER
Account Title: CASH Account No: 101
DATE ITEMS PR DEBIT CREDIT BALANCE
2020 DEBIT CREDIT
xcv
DATE ITEMS PR DEBIT CREDIT BALANCE
2020 DEBIT CREDIT
xcvi
Account Title: PREPAID RENT Account No: 116
DATE ITEMS PR DEBIT CREDIT BALANCE
2020 DEBIT CREDIT
xcvii
Account Title: STORE EQUIPMENT Account No: 170
DATE ITEMS PR DEBIT CREDIT BALANCE
2020 DEBIT CREDIT
xcviii
Account Title: SALARIES PAYABLE Account No: 203
DATE ITEMS PR DEBIT CREDIT BALANCE
2020 DEBIT CREDIT
xcix
Account Title: SALES Account No: 401
DATE ITEMS PR DEBIT CREDIT BALANCE
2020 DEBIT CREDIT
c
Account Title: SALARIES EXPENSE Account No: 701
DATE ITEMS PR DEBIT CREDIT BALANCE
2020 DEBIT CREDIT
ci
DATE ITEMS PR DEBIT CREDIT BALANCE
2020 DEBIT CREDIT
cii
Account Title: DOUBTFUL ACCOUNTS Account No: 709
DATE ITEMS PR DEBIT CREDIT BALANCE
2020 DEBIT CREDIT
31
ciii
31
31
31
31
civ
5. Income Statement (with supporting notes)
Income Statement
Notes
cv
Note 1: Net Sales
cvi
6. Statement of Changes in Equity
ASSETS
Notes
cvii
LIABILITIES AND EQUITY
cviii
Note 7: Trade and Other Payables
cix
9. Journalize Closing Entries
31
31
cx
31
31
Account
Account Titles Dr Cr
Number
cxi
Reflection
Answer what is asked.
In your own words, what are the things you need to remember in completing the
accounting cycle?
cxii
References
Teaching Guide for Senior High School. (2016) FUNDAMENTALS OF
ACCOUNTANCY, BUSINESS AND MANAGEMENT 1. Published by Commision
on Higher Education
Tugas, Florenz, et.al. (2016) FUNDAMENTALS OF ACCOUNTANCY,
BUSINESS AND MANAGEMENT 1. Vibal Group, Inc.
cxiii