Question
The Unadjusted Trial Balance of Juan Luna, Inc. for the calendar year ended, December 31, 2019, their initial year of operation, is presented as follows:
The Unadjusted Trial Balance of Juan Luna, Inc. for the calendar year ended, December 31, 2019, their initial year of operation, is presented as follows:
| Debit | Credit |
Cash | 5,558,365 |
|
Accounts Receivable | 1,000,000 |
|
Other Current Receivable | 16,925 |
|
Supplies | 7,845 |
|
Prepaid Rent | 27,000 |
|
Prepaid Insurance | 3,120 |
|
Merchandise Inventory |
|
|
Land | 341,180 |
|
Equipment | 500,000 |
|
Accumulated Depreciation- Equipment |
|
|
Truck | 1,000,000 |
|
Accumulated Depreciation Truck |
|
|
Accounts Payable |
| 1,000,000 |
Other Current Payable |
| 14,145 |
Interest Payable |
| 795 |
Unearned Rent Revenue |
| 132,000 |
Income Tax Payable |
|
|
Notes Payable, Long Term |
| 97.620 |
Ordinary Share Capital , 8,133 shares at P 100 par. |
| 813,300 |
Share Premium |
| 813,300 |
Retained Earnings |
|
|
Accumulated Other Comprehensive |
| 242,520 |
Retained Earnings |
|
|
Other Service Revenue |
| 119,280 |
Sales, 190,000 units |
| 19,000,000 |
Cost of Goods Sold |
|
|
Purchases | 14,900,000 |
|
Purchase Return |
| 1,000,000 |
Purchase Allowances |
| 225,000 |
Wages Expense | 91,250 |
|
Rent Expense |
|
|
Utilities Expense | 4,750 |
|
Insurance Expense | 930 |
|
Supplies Expense | 6,595 |
|
Depreciation Expense |
|
|
Income Tax Expense |
|
|
|
|
|
TOTAL | 23,457,960 | 23,457,960 |
|
|
|
|
|
|
Other Information:
1. Gross purchases during the year
Feb. 20 | 100,000 units at P 60 |
June 5, | 70,000 at P70 |
September 2 | 50,000 at P 80 |
2. Purchase returns were from the purchases made as follows:
Feb. 20 | 10,000 units |
September 2 | 5,000 units |
3. Purchase allowance is a deduction of P 5 from September 2 purchase from the net purchase.
4. The company used FIFO as cost flow method.
5. Information for adjustments at the end of the period.
a. The physical count shows P 5,895 of supplies on hand.
b. The prepaid rent amount is good for 1 year paid last October 1.
c. The prepaid insurance pertains to a one-year premium paid in advance on July 1.
d. Wages earned by employees in December 2017 are P 7,500, and yet they will not be paid until January 5, 2020.
e. On September 1, the company rented out the land to Aguinaldo Co. and received a full year rent of P 132,000.
f. On December 15, the company received a bill of P 235 for utilities, but this one will not be paid until its due date on January 15, 2020.
g. All fixed assets are depreciated on a straight line basis based on a 10-year period, no residual value, starting from its purchase, July 1, 2019.
h. The income tax rate is 30%. (Assume that the book income is equal to the taxable income)
Prepare the statement of comprehensive income, statement of changes in capital, statement of financial position and cash flow statement of Juan Luna Corporation for the year ended, December 31, 2017
1. The balance of Supplies Account is
A. 5,895
B. 9,795
C. 1,950
D. 7,845
2. Using the problem above, the balance of Prepaid Insurance is
A. 4,680
B. 0
C. 1,560
D. 3,120
3. Using the problem above, the total Operating Expenses is
A. 121,520
B. 97,770
C. 196,520
D. 189,770
4. Using the problem above, the Gross Profit during the period is
A. 6,375,000
B. 5,325,000
C. 6,525,000
D. 6,450,000
5. Using the problem above, the book Value of truck at year end is
A. 900,000
B. 1,000,000
C. 1,050,000
D. 950,000
6. Using the problem above, the total Current Assets at Year end is
A. 7,726,435
B. 7,706,185
C. 7,727,995
D. 7,711,070
7. Using the problem above, the balance of Income Tax Payable at year end is
A. 1,948,502
B. 1,984,205
C. 1,925,028
D. 1,952,280
8. Using the problem above, the balance of Other Current Payable at year end is
A. 6,410
B. 14,145
C. 7,735
D. 21,880
9. Using the problem above , the Long Term Liability balance at year end is
A. 1,098,415
B. 1,097,620
C. 98,415
D. 97,620
10. Using the problem above, the total Shareholders Equity at year end is
A. 6,118,332
B. 5,547,522
C. 6,603,372
D. 6,360,852
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