Scribd Logo
Upload

Welcome to Scribd!

  • 105 views

    ACCO 20033 - Quiz 2

    Uploaded by

    DRUMMER DROID
    1. Mr. A opened Aroma Wellness Spa on December 1, 2020 and had various business transactions throughout the month including investing cash, paying expenses, acquiring assets, providing and collecting services, and paying salaries. 2. The document provides 15 transactions from December 1-30, 2020 and requests the preparation of journal entries, trial balances, adjusting entries, worksheet, closing entries, and financial statements for Aroma Wellness Spa. 3. Additional information is given about useful lives of assets, bad debt estimate, supplies usage, and accounting policies.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    ACCO 20033 - Quiz 2

    Uploaded by

    DRUMMER DROID
    105 views2 pages
    1. Mr. A opened Aroma Wellness Spa on December 1, 2020 and had various business transactions throughout the month including investing cash, paying expenses, acquiring assets, providing and collecting services, and paying salaries. 2. The document provides 15 transactions from December 1-30, 2020 and requests the preparation of journal entries, trial balances, adjusting entries, worksheet, closing entries, and financial statements for Aroma Wellness Spa. 3. Additional information is given about useful lives of assets, bad debt estimate, supplies usage, and accounting policies.

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1. Mr. A opened Aroma Wellness Spa on December 1, 2020 and had various business transactions throughout the month including investing cash, paying expenses, acquiring assets, providing and collecting services, and paying salaries. 2. The document provides 15 transactions from December 1-30, 2020 and requests the preparation of journal entries, trial balances, adjusting entries, worksheet, closing entries, and financial statements for Aroma Wellness Spa. 3. Additional information is given about useful lives of assets, bad debt estimate, supplies usage, and accounting policies.

    Copyright:

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

    ACCO 20033 - Quiz 2

    Uploaded by

    DRUMMER DROID
    1. Mr. A opened Aroma Wellness Spa on December 1, 2020 and had various business transactions throughout the month including investing cash, paying expenses, acquiring assets, providing and collecting services, and paying salaries. 2. The document provides 15 transactions from December 1-30, 2020 and requests the preparation of journal entries, trial balances, adjusting entries, worksheet, closing entries, and financial statements for Aroma Wellness Spa. 3. Additional information is given about useful lives of assets, bad debt estimate, supplies usage, and accounting policies.

    Copyright:

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

    ACCO 20033 – Financial Accounting and Reporting 1

    Quiz 2
    1st Semester – AY 2021 – 2022
    PUP Sto. Tomas Branch

    Mr. A opened a wellness spa called “Aroma Wellness Spa” on December 1, 2020. The following were the
    transactions during the one-month ended December 31, 2020:

    1. On December 1, Mr. A invested P2,000,000 cash to the business.


    2. On December 2, Mr. A paid P120,000 for business permit and other licenses.
    3. On December 2, Mr. A paid P360,000 for one-year rent of a commercial space.
    4. Also on December 3, the business acquired computer equipment for P72,000 to be paid on
    December 5.
    5. On December 4, the business ordered supplies amounting to P15,000. The business will initially
    treat supplies purchased as expense.
    6. On December 5, Mr. A paid advertising fee of P2,000 to a local radio station to promote the
    business’ opening day.
    7. Also on December 5, Mr. A also paid the computer equipment acquired on December 4.
    8. On December 6, the business received and paid the supplies it ordered on December 4.
    9. Also, on December 6, Mr. A bought furniture and fixtures for P36,000.
    10. On December 7, the business started its operations and after 7 days of operations for the week
    ended December 13, total service fees billed and collected from customers amounted to P55,000.
    11. On December 15, the business paid P13,500 for salaries of its employees.
    12. On December 20, total service fees billed to customers for the second week of operations
    amounted to P48,000, P13,000 of which are yet to be collected.
    13. On December 27, total service fees billed to customers for the third week of operations amounted
    to P60,000. Also, during the week, the business collected P3,000 from uncollected service fees
    during the second week and P5,000 service fees in advance.
    14. On December 30, the last day of operations for the month, the business paid P22,500 for salaries
    of its employees for the second half of the month.
    15. Also on December 30, the business received electricity bill for the month of December amounting
    to P3,800.

    Additional information:
    • The equipment has a useful life of 3 years, while furniture and fixtures has useful life of 2
    years.
    • Bad debts expense is estimated at 10% of outstanding accounts receivable.
    • One-third of the supplies were used as of month-end.
    • The business use asset and liability method in recording prepayment and advances,
    unless otherwise stated.

    Requirements:
    1. Prepare the journal entries. Refer to the chart of accounts in the next page.
    2. Prepare the unadjusted trial balance.
    3. Provide the adjusting entries.
    4. Prepare the worksheet up to post-closing trial balance.
    5. Prepare the closing entries.
    6. Prepare the balance sheet and income statement.

    Bonus: Prepare the reversing entries.


    Aroma Wellness Spa
    Chart of Accounts

    Assets

    1001 Cash
    1002 Accounts Receivable
    1003 Allowance for Bad Debts
    1004 Prepaid Supplies
    1005 Prepaid Rent
    1006 Prepaid Insurance
    1007 Equipment
    1008 Accumulated Depreciation – Equipment
    1009 Furniture and Fixtures
    1010 Accumulated Depreciation – Furnitures and Fixtures

    Liabilities

    2001 Accounts Payable


    2002 Notes Payable
    2003 Interest Payable
    2004 Salaries Payable
    2005 Utilities Payable
    2006 Unearned Income

    Equity

    3001 Mr. A, Capital


    3002 Mr. A, Drawing

    Income

    4001 Service Fees


    4002 Miscellaneous Gains

    Expenses

    5001 Salaries Expense


    5002 Rent Expense
    5003 Utilities Expense
    5004 Supplies Expense
    5005 Bad Debts Expense
    5006 Depreciation Expense
    5007 Advertising Expense
    5008 Transportation Expense
    5009 Taxes and Licenses

    You might also like