QUIZ 2 and 4 NOTES (MCGRAW & QUIZ)

CHAPTER 16: NOTES PAYABLE AND NOTES RECEIVABLE

Notes:

  • 360 day period= banker’s year

  • cash is yung buong value, then notes payable and trade are separated

  • Issue date is not counted. For example, for a 30-day note issued on January 1, you start counting at January 2 — thus, January 31 ang maturity date.

  • Interest expense is a nonoperating expense, deducted from income from operations

To-do:

PROBLEM-SOLVING NOTES:

  • FDN Accounting Services has the following information related to its Accounts Payable:
    • On September 1, 2023, the Accounts Payable balance was ₱60,200.
    • During September, a purchase of equipment amounting to ₱300,000 was made on terms
    20% down, balance on account.
    • Total payments made to various suppliers during the month amounted to ₱170,400.

    Compute the balance of Accounts Payable on September 30, 2023.

    • 129800

    • doon sa equipment, ang kinuha yung 80%

  • FDN Accounting Services has the following ledger balances as of September 30, 2023:
    Cash ₱ 265,000
    Accounts Receivable 57,000
    Equipment 179,400
    Prepaid Expenses 28,000
    Accounts Payable 177,500
    F. D. Nakpil, Capital (before Net Income/Loss) 259,800
    Service Revenue 180,000
    Operating Expenses 87,900
    Compute the total amount indicated in the Debit Column of the Trial Balance of FDN as of
    September 30, 2023.

    • Cash ₱ 265,000
      Accounts Receivable 57,000
      Equipment 179,400
      Prepaid Expenses 28,000
      Operating Expenses 87,900
      Total debit ₱ 617,300

    • these are basically just the assets.

    • the drawings are debit normal side

  • FDN Trading made sales with a list price of ₱40,000 and trade discount of 8%. Compute the
    Invoice Price to be recorded as Sales

    • List Price ₱ 40,000
      Trade discount -3,200
      Invoice Price ₱ 36,800

    • trade discount yung babaligtarin percent

  • FDN Trading sold merchandise to a customer on credit in the amount of ₱45,000. FDN issued a credit memo for ₱4,000 due to damages during shipping. The invoice is dated September 15
    with terms 1/15, net 45. If the customer chooses not to take the cash discount, compute the
    balance of the accounts receivable account pertaining to this customer by September 30

    • 41k

    • sales account - sales returns and allowances

  • FDN Trading recorded the following events involving a recent purchase of merchandise:
    • Purchased goods for ₱400,000, less 20% and less 10%, on terms 2/10, n/30.
    • Paid ₱500 freight on terms, FOB Shipping Point, Collect
    • Made a partial payment of ₱100,000.
    • Paid the invoice within the cash discount period.
    Compute the cash payment to the seller on the final date of settlement.

    • FOB here, buyer pays directly not to seller

    • purchase discount is applied as purchases full ah

    • pag partial payment, - sa cash paid

  • On September 1, 2023, FDN Trading sold merchandise for ₱500,000 less 10% and 10% on
    terms 20% down, balance 2/20, n/90. The related freight amounted to ₱10,000 on terms FOB
    Destination, Prepaid. The customer returned goods amounting to ₱40,000 and made a partial
    payment of ₱200,000. The account was collected on September 21. Compute the final amount
    of cash collected on September 21.


GENERAL NOTES

  • Net sales= sales - sales returns allowances - sales discounts

  • Net cost of purchases= purchases + freight in - purchase discounts - purchase returns and allowances

  • net purchases= purchases - returns - discount

  • how to get total goods available= get purchases, purchase cost, then add mi, beg to purchase cost to get total goods available

  • credit memo= sales return and allowances

  • cost of goods= net purchases + freight in

  •  Net 30 days or n/30:
    Payment in full is due 30 days after the date
    of the invoice.
     Net 10 days EOM, or n/10 EOM:
    Payment in full is due 10 days after the end
    of the month in which the invoice was
    issued.
     2% 10 days, net 30 days; or 2/10, n/30:
    If payment is made within 10 days of the
    invoice date, the customer can take a 2%
    discount. Otherwise, payment in full is due
    in 30 days.

OTHER NOTES

  • 2 forms of income statement": natural and functional

  • financial statement is presented in 3: income, soe, balance sheet

  • 1/15, net 45- 1% discount if paid within 15 days, 45 days

NEED TO WORK ON:

  • normal balance

  • financing, investing, operating

QUIZ 4

  • net income= get net sales, multiply it with gross profits, then subtract operating expenses

  • owner’s drawings= pagadd lahat sa beg. capital, then subtract subtotal with end. capital

  • cogs= beg. inv + net cost of purchases + cogs avail for sale - end. inv

    • get cogs avail for sale muna

  • cogs at its core is = cogs available for sale - ending inventory

  • beg. inv + net cost = total goods available

  • total goods - ending inv.= cost of goods sold

  • total assets- total current/noncurrent = the other type of asset