Ch 6 Answers

CHAPTER 6
CASH TO ACCRUAL ACCOUNTING/ SINGLE ENTRY SYSTEM
PROBLEMS
6-1.

(BRAIN COMPANY)
Capital, end
Assets
Less liabilities
Capital, beginning
Assets
Less liabilities
Increase in capital
Additional investments
Withdrawals
Profit

P609,000
138,000
P485,000
94,000

P471,000
391,000
P 80,000
(70,000)
120,000
P130,000

6-2.
a.
b.
c.
d.
6-3.

38,900 + 13,480 – 48,200 = 4,180
1,160,000 + 980,000 – 700,000 = 1,440,000 collections;
1,440,000 + 1,660,000 + 30,000 – 1,200,000 = 1,930,000
210,000 + 80,000 – 40,000 – 206,000 = 44,000
440,000 – 80,000 + 100,000 + 54,000 – 30,000 = 484,000

(GRAIN COMPANY)
Requirement 1
Capital, end
Assets
Less liabilities (including P8,000 unrecorded purchase)
Capital, beginning
Assets
Less liabilities
Increase in capital
Withdrawals
Profit

P352,800
123,500
P293,200
117,800

P229,300
175,400
P 53,900
20,000
P 73,900

Requirement 2
Grain Company
Statement of Comprehensive Income
For Year Ended December 31, 2012
Sales (net of P21,000 returns) – Schedule 1
Cost of goods sold
Merchandise inventory, January 1
Purchases (net of P13,000 returns) – Schedule 2
Merchandise inventory, December 31
Gross profit on sales
Other income
Operating expenses – Schedule 3
Operating income
Interest expense
Profit

33

P725,000
P 97,200
551,200
(105,800)

542,600
P182,400
8,000
(114,000)
P 76,400
( 2,500)
P 73,900

Chapter 6 – Cash to Accrual/ Single Entry System
Schedule 1 – Sales
Receipts from customers
Accounts receivable, beginning
Accounts receivable, ending
Accounts written off
Sales returns
Gross sales

P697,500
( 59,400)
76,100
10,800
21,000
P746,000

Schedule 2 – Purchases
Payments to trade creditors
Accounts payable, beginning
Accounts payable, ending
Unrecorded purchases
Purchase returns
Gross purchases

P536,600
( 63,300)
69,900
8,000
13,000
P564,200

Schedule 3 – Operating expenses
Bad debts expense
Depreciation expense (85,000 + 20,000 – 95,500)
Other operating expenses:
Payments for operating expenses
Prepaid expenses, beginning
Prepaid expenses,