Scribd
Upload
415 views1 page

RKB Comprehensive Problem

RKB Trading was established in January 2020 with initial capital of P300,000. It operates a store in Tacloban City buying and selling merchandise. Financial statements are prepared monthly, including adjusting and closing entries. The company uses special journals, subsidiary ledgers, and depreciates equipment annually at 10%. Merchandise inventory as of September 30 was P120,000. The August 31, 2020 trial balance includes assets of P516,000, liabilities of P40,350, and capital of P483,950.

Uploaded by

Janelle Añover
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
415 views1 page

RKB Comprehensive Problem

RKB Trading was established in January 2020 with initial capital of P300,000. It operates a store in Tacloban City buying and selling merchandise. Financial statements are prepared monthly, including adjusting and closing entries. The company uses special journals, subsidiary ledgers, and depreciates equipment annually at 10%. Merchandise inventory as of September 30 was P120,000. The August 31, 2020 trial balance includes assets of P516,000, liabilities of P40,350, and capital of P483,950.

Uploaded by

Janelle Añover
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

In January 2020 , RKB Trading was established by Richard K. Bean with initial capital investment of P300,000.

RKB is engaged buying


and selling of merchandise with a store located in Tacloban City.The business prepares financial statements on a monthly basis; hence,
it prepares adjusting and closing entries at the end of each month. RKB maintains the following chart of accounts:

111 Cash
113 Accounts Receivable
115 Merchandise Inventory
118 Input VAT
121 Store Equipment
121A Accumulated Depreciation - Store Equipment
122 Office Equipment
122A Accumulated Depreciation - Office Equipment

211 Accounts Payable


212 Withholding Taxes Payable
213 Expanded Withholding Taxes Payable
214 SSS, Philhealth and Pagibig Contributions Payable
215 Utilities Payable
218 Output VAT
311 Bean, Capital
312 Bean, Drawing
313 Income Summary

411 Sales
412 Sales Returns and Allowances
413 Sales Discount
511 Purchases
512 Purchase Returns and Allowances
513 Purchase Discount
522 Salaries Expense
523 SSS, Philhealth, and Pagibig Contributions
531 Rent Expense
532 Utilities Expense
533 Supplies Expense
541 Depreciation Expense-Store Equipment
542 Depreciation Expense-Office Equipment

The business' accounting policy includes the following:


1. The corporation uses special journals to record sales, purchases, cash receipts, and cash disbursements in addition to general
journal. It also maintains subsidiary ledger both for its customers and suppliers or creditors.
2. Depreciation on store and office equipment is 10% per annum based on the store and office equipment balance.
3. Purchase of supplies are immediately charged to expense.
4. Merchandise inventory at September 30 is P120,000.

RKB Trading's post-closing trial balance as of August 31, 2020 is as follows:

Debit Credit
Cash ₱200,000.00
Accounts Receivable 25,000.00
Merchandise Inventory 100,000.00
Input VAT 12,000.00
Store Equipment 120,000.00
Accumulated Depreciation - Store Equipment 8,000.00
Office Equipment 81,000.00
Accumulated Depreciation - Office Equipment 5,400.00
Accounts Payable 30,000.00
Withholding Taxes Payable 800
Expanded Withholding Taxes Payable 500
SSS, Philhealth and Pagibig Contributions Payable 5,550.00
Utilities Payable 3,800.00
Bean, Capital 483,950.00

Part 1. This contains the source documents you are to use in analyzing and recording business transactions of the entity. Cut the documents as if
gathering the source documents, organize the documents by transaction and arrange them chronologically.

Part 2. Prepare the financial statements of RKB Trading.

You might also like