You are on page 1of 2

ACTBAS2 Quiz #3 (3rd Term, AY 2010-2011)

Merchandising Transactions with Freight, Acquisition/Disposal of Fixed Assets, and Problem Solving
TEST I JOURNALIZING
Record under the periodic inventory method the following selected transactions in 2011 of ROYAL
TRADING, dealer of various grocery items, with business address at Pioneer Avenue, General Santos City. The firm
has been operating for several years now.
March 2011
4

Sold merchandise to SUZY (in Iligan City) for P70,000 less 5 on terms: 25% down, 40% settled with a 45day 15% note, and the balance 3/15 2/30 1/45 n/60. Freight of P1,000 is FOB General Santos City, prepaid.

Roy Almonte, owner, invested two second hand desktop computers with a total fair value of P75,000. The
IBM brand has a fair value that is twice the fair value of the COMPAQ brand.

Issued credit memo to SUZY for damaged merchandise returned, P2,275.

10 Bought one brand new COMPAQ desktop computer from OMEGA COMPUTER CENTER (in Iloilo City) for
P150,000 less 10 on terms: 20% down and the balance 3/20 n/45. Freight of P3,500 is FOB Iloilo, prepaid.
11 Bought various items for office use from QUALITY PRODUCTS (in Cebu City) for P75,000 on terms: 60%
settled with a 20-day 10% note and the balance 3/10 2/20 1/30 n/45. Freight of P1,800 is FOB Cebu,
prepaid.
12 Received credit memo from OMEGA COMPUTER CENTER, P5,000, representing allowance granted for
minor scratches on the monitor and CPU of the computer bought on March 10.
13 Paid the following costs in connection with the newly acquired computer: software package, P35,000; cost
of 2-year maintenance agreement with a firm to regularly check the computer for viruses and spywares,
P15,000; installation and test run, P1,250; penalty ticket due to traffic violation of driver, P500; insurance
while the computer was in transit, P1,000; and repair of the damaged portion of the cubicle where the
computer is installed, P1,550;
14 Discounted the note of Suzy with NATIONAL BANK OF THE PHILIPPINES at 18%.
15 Issued debit memo to QUALITY PRODUCTS for items returned due to wrong specification, P7,500.
16 Issued a check for P25,500 to OMEGA for application to account.
18 Sold the IBM second hand computer for P23,500, collectible within 30 days.
31 Paid in full accounts with QUALITY PRODUCTS.
31 Settled in full account with OMEGA COMPUTER CENTER.
April 2011
3

Suzy fully paid her account.

15 Bought from MITSUBISHI MOTORS (in Bacolod City) one Mitsubishi Lancer for P600,000 less 10-5 on
terms: 20% down, P75,000 settled with a 15-day 20% note, and the balance 5/10 n/30. Freight of P15,000
is on terms FOB General Santos City, collect.
19 Received notice from NATIONAL BANK OF THE PHILIPPINES that Suzy dishonored her note. Paid the
bank the amount due plus protest fee of P550.
22 Received credit memo from MITSUBISHI MOTORS, P10,000, for dents and paint scratches on the new
Lancer.
25 The owner withdrew the following for personal use: Store Supplies, P2,000 and merchandise selling at
P11,550. The goods are priced to sell at 110% above cost.
30 Settled total obligation with MITSUBISHI MOTORS.
- next page -

Placido M. Menaje, Jr.

-2TEST II PROBLEM SOLVING 10 pts


1.

Madison Trading purchased machinery on April 15, 2011. Details of the purchase are as follows:
Invoice price (Trade discounts: 10% and 10%)
Down payment
Cash discount terms
Cost paid to third parties:
Freight cost (FOB Shipping Point, prepaid)
Allowance granted by the supplier due to minor dents
Insurance while in transit
Cost of repainting the enclosure for the machinery
Cost of installation and test runs
Monthly salary of employee assigned to maintain the machinery
Traffic violation charges imposed on the driver (swerving)
Cost of repair of damaged parts during unloading
Customs duties

800,000
25%
3/10 n/45
15,000
10,000
5,000
8,500
6,280
15,000
500
3,000
10,000

Required: Compute for the total acquisition cost of the machinery (5 pts.)
2.

Refer to Problem #1. Compute for the amount of cash paid by Madison Trading to its supplier on April 30,
2011, date of full payment (2.5 pts.)

3.

Refer to Problem #1. If full payment was made on April 23, 2011, compute for the amount of cash paid by
Madison Trading to its supplier on the said date.
- End -

Placido M. Menaje, Jr.

You might also like