Question

In: Accounting

Peter Senen Corporation provided the following account balances as of September 30, 2019:

Peter Senen Corporation provided the following account balances as of September 30, 2019:

Cash                                  P112,000

Accumulated depreciation     P 36,000

Accounts Receivable                    64,000

Accounts payable               40,000

Finished Goods                             48,000

Income tax payable                      9,000

Work in process                                 36,000    

Share Capital                          500,000    

Raw materials                            52,000    

Retained Earnings           207,000

Property and Equipment               480,000

The following transactions occurred during October:

1. Materials purchased on account,       P150,000

a. Journal entries: Ref. Account titles and explanation Debit Credit 1 Raw materials 150000 Accounts payable 150000

2. Materials issued to production: direct materials- P90,000, Indirect materials- P10,000.

3. Payroll for the month of October 2019 consisted of the following (also paid during the month):

         Direct labor     P62,000            Administrative salaries         P16,000

         Indirect Labor    20,000

         Sales salaries      30,000

Payroll deductions were as follows:

         Withholding taxes P19,800   Phil health contributions         P2,000

         SSS contributions         7,100   HDMF contributions                2,000

4. Employer contributions for the month were accrued:

                                  Factory             Selling               Administrative

SSS contributions    P5,700              P2,000              P1,100

Philhealth Contributions         1,200            500                    300

EC Contributions             400                       300                    200

HDMF contributions     1,600               700                      400

5. Other costs incurred on account:

         Indirect factory overhead- P42,000

         Selling                          -   30,000

         Administrative                    -   10,000

6. Depreciation for the month:

         Factory overhead-      P2,000

         Selling                               1,000

         Administrative                         1,000

7. Factory overhead control account was transferred to work in process, P82,900.

8. Work finished and placed in stock, P178,000

9. Cost of goods sold, P200,000. The markup was 60% of cost.

10. Cash collected from customers, P260,000

11. Materials returned to supplies, P15,000.

12. Payment of accounts payable, P190,000.

13. Provision for income tax, P6,000.

Required: a. Journals entries to record the above transactions

             b. Statement of cost of goods manufactured

             c. Income statement

             d. Balance sheet as of October 31, 2019

Solutions

Expert Solution

a)Journal

1 Rawmaterials Account Dr. 150000
       To Accounts payable 150000
2 Trading Account Dr 100000
      To Manufacturing account 100000
3 Wages Account Dr. 128000
     To Cash 128000
4 Statutory deductions Account Dr. 36500
            To Tax authorities 36500
5 Indirect factory overheads Account Dr. 42000
Selling overheads Account Dr. 30000
Administrative overheads Account Dr. 10000
       To Accounts payable 82000
6 Income statement Dr. 4000
     To Provision for depreciation 4000
7 Factory overhead control account Dr. 82900
    To Work in progress 82900
8 Stock Acc Dr. 178000
    To Trading Account 178000
10 Cash Acc Dr. 260000
    To Accounts receivable 260000
11 Accounts payable Acc Dr. 15000
    To Return outwards 15000
12 Accounts payable Acc Dr. 190000
    To Cash 190000
13 Income statement Dr. 6000
     To Provision for taxation 6000

b)

Statement of cost of goods manufactured
Materials consumed 90000
Direct labour (62000+5700+1200+5700+400+1600) 76600
Prime cost 166600
Add Factory overheads
Indirect materials 10000
Indirect labour 20000
Indirect factory overheads 42000
Depreciation 2000 74000
Factory costs 240600
Add opening inventory of work in progress 36000
Less closing inventory of work in progress 82900
Cost of production 193700

c)

Income statement
Sales (200000+120000) 320000
Less cost of goods sold 200000
Gross profit (200000 x 60%) 120000
Less expenses
Administration salaries 18000
Sales salaries 33500
Selling costs 30000
Administrative costs 10000
Selling Depreciation 1000
Administration depreciation 1000 93500
Profit before tax 26500
Taxaton provision 6000
Profit after tax 20500

d)

Balance sheet
Non-current assets Cost Acc Depreciation NBV
Property and Equipment 480000 40000 440000
Current Assets
Stock of Raw materials 87000
Stock of work in progress 82900
Stock of Finished goods 178000 347900
Cash 54000
Accounts receivable 124000 525900
Total Assets 965900
Equity and liabilities
Equity
Share capital 500000
Retained earnings 227500 727500
Current liabilities
Accounts payable (40000+150000+82000-190000-15000) 67000
Statutory deductions 36500
Tax payable 15000 118500
846000

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

The following are account balances as of September 30, 2020, for Ray Hospital. Prepare a balance sheet at September 30, 2020.
  HCM 213 Q1. Balance sheet. The following are account balances as of September 30, 2020, for Ray Hospital. Prepare a balance sheet at September 30, 2020. (Hint net assets will also need to be calculated.) Also Find out the Current Ratio (1 Mark) and Net Working Capital (1 Mark) Givens Gross plant, property, and equipment $70,000,000 Accrued expenses                                           $6,000,000 Cash                                                                $8,000,000 Net accounts receivable                                $15,500,000                                     Accounts payable                                           $7,000,000 Long-term debt                                              $45,000,000 Supplies                                                          $3,000,000 Accumulated depreciation                           $5,000,000
The following are account balances as of September 30, 2020, for Ray Hospital. Prepare a balance...
The following are account balances as of September 30, 2020, for Ray Hospital. Prepare a balance sheet for the given date i.e., September 30, 2020. (Hint net assets will also need to be calculated.) Also Find out the Current Ratio , and Net Working Capital Givens Gross plant, property, and equipment               $70,000,000 Accrued expenses                                                   $6,000,000 Cash                                                                         $8,000,000 Net accounts receivable                                        $15,500,000                                          Accounts payable                                                   $7,000,000 Long-term debt                                                      $45,000,000 Supplies                                                                   $3,000,000 Accumulated depreciation                                   $5,000,000
The following are account balances (in ’000) at September 30, 20X1 for HMO Scotland. Prepare: (a)...
The following are account balances (in ’000) at September 30, 20X1 for HMO Scotland. Prepare: (a) balance sheet; and (b) income statement. Income Tax Expense $2,100 Prepaid Expense $22,000 Physician Services Expense $40,000 Long-term Investments $12,000 Premium Revenues $118,000 Cash and Cash Equivalents $100,000 Marketing Expense $12,500 Compensation Expense $23,000 Other Non-current Assets $12,800 Interest Income and Other Revenue $14,500 Accrued Expense $14800 Outside Referral Expense $7,500 Claims Payable – Medical $37,000 Medicare Revenues $18,000 Inventory $3,500 Occupancy and Depreciation...
Multiple statements. The following are account balances (in thousands) at September 30, 20X1, for Upper Merion...
Multiple statements. The following are account balances (in thousands) at September 30, 20X1, for Upper Merion Hospital. Prepare (a) a balance sheet, (b) a statement of opera- tions, and (c) a statement of changes in net assets for September 30, 20X1. Givens (in ’000s) Provision for bad debt-23,800, Cash -30,000,Patient revenue (net of contractuals-275,00, Net accounts receivable -42,100,Ending balance, temporarily restricted net assets -15,900,Wages payable-6,500, Inventory-2,800, Long-term debt-143,000, Supply expense-55,000, Gross plant, property, and equipment -290,000,Net assets released from temporary...
The balances of the ledger accounts for Buffet Services on September 30, 2019, and the information...
The balances of the ledger accounts for Buffet Services on September 30, 2019, and the information needed for adjustments are shown below.    Account Name Balance Cash $ 17,500 Accounts Receivable 8,800 Supplies 3,300 Prepaid Insurance 8,700 Equipment 20,400 Accumulated Depreciation–Equipment − Accounts Payable 8,200 Jane Buffet, Capital 48,000 Jane Buffet, Drawing 3,900 Fees Income 28,000 Advertising Expense 3,000 Rent Expense 5,100 Salaries Expense 11,800 Supplies Expense − Insurance Expense − Utilities Expense 1,700 Depreciation Expense–Equipment −     Adjustment information:...
Gaby Manufacturing Company had the following account balances for the quarter ending September 30, unless otherwise...
Gaby Manufacturing Company had the following account balances for the quarter ending September 30, unless otherwise noted: Amortization of manufacturing equipment                   $88,000 Amortization of office equipment                                      41,200 Direct manufacturing labour                                             160,000 Direct materials used                                                           126,000 Finished goods inventory (July 1)                                    180,000 Finished goods inventory (September 30)                      170,000 General office expenses                                                       101,800 Indirect manufacturing labour                                            62,000 Indirect materials used                                                         28,000 Marketing distribution costs                                                10,000 Miscellaneous plant overhead                                             45,000 Plant utilities                                                                           30,800 Property taxes on plant building                                          9,600 Property taxes on salespersons'...
At September 30, 2019 Mast Corporation reported the following unadjusted amounts for its accounts, each of...
At September 30, 2019 Mast Corporation reported the following unadjusted amounts for its accounts, each of which is considered to be a normal account balance.                Accounts Payable $12,000 Accounts Receivable 1,000 Advertising Expense 400 Cash 84,000 Common Stock Dividends 64,000 1,000 Equipment 60,000 Note Payable 36,000 Service Revenue 42,000 Retained Earnings 24,800 Supplies 1,400 Supplies Expense 600 Utilities Expense 2,000 Salaries and Wages Expense 28,400 During September, the following occurred: 1. Investors purchased 2,000 shares of stock for $5...
At September 30, 2019 Mast Corporation reported the following unadjusted amounts for its accounts, each of...
At September 30, 2019 Mast Corporation reported the following unadjusted amounts for its accounts, each of which is considered to be a normal account balance.                Accounts Payable $12,000 Accounts Receivable 1,000 Advertising Expense 400 Cash 84,000 Common Stock Dividends 64,000 1,000 Equipment 60,000 Note Payable 36,000 Service Revenue 42,000 Retained Earnings 24,800 Supplies 1,400 Supplies Expense 600 Utilities Expense 2,000 Salaries and Wages Expense 28,400 During September, the following occurred: 1. Investors purchased 2,000 shares of stock for $5...
The following account balances were included in the trial balance of Twain Corporation at June 30,...
The following account balances were included in the trial balance of Twain Corporation at June 30, 2017. Sales revenue $1,578,500 Depreciation expense (office furniture and equipment) $7,250 Sales discounts 31,150 Property tax expense 7,320 Cost of goods sold 896,770 Bad debt expense (selling) 4,850 Salaries and wages expense (sales) 56,260 Maintenance and repairs expense (administration) 9,130 Sales commissions 97,600 Office expense 6,000 Travel expense (salespersons) 28,930 Sales returns and allowances 62,300 Delivery expense 21,400 Dividends received 38,000 Entertainment expense 14,820...
The following account balances were included in the trial balance of Sarasota Corporation at June 30,...
The following account balances were included in the trial balance of Sarasota Corporation at June 30, 2020: Sales revenue $1,839,650 Telephone and Internet expense (office) $3,620 Cost of goods sold 1,061,770 Salaries and wages (office) 7,920 Salaries and wages expense (sales) 53,260 Supplies expense (sales) 5,050 Sales commission expense 99,000 Repairs and maintenance expense (office) 9,430 Advertising expense (sales) 29,130 Depreciation understatement due to error—2018 (net of tax of $3,300) 18,400 Freight out 21,700 Miscellaneous expense (office) 6,500 Entertainment expense...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT