ENTREP- REVIEW

Use the following information for the next two questions:

The trial balance of AA COMPANY on December 31, 2019 shows the following information:

Accounts Dr. Cr.

Service fees ₱870,000
Interest Income 60,000
Gains 20,000
Salaries expense ₱300,000
Rent expense 30,000
Utilities expense 20,000
Supplies expense 10,000
Depreciation expense 40,000
Taxes and licenses 70,000
Transportation and travel expense 5,000
Interest expense 2,000
Miscellaneous expense 1,000
Losses 15,000
Totals ₱493,000 ₱950,000

1. How much is the profit for the year?

a. ₱457,000 c. ₱950,000
b. ₱493,000 d. ₱1,443,000
2. How much is the comprehensive income for the year?
a. ₱457,000 c. ₱950,000
b. ₱493,000 d. ₱1,443,000

Use the following information for the next three questions:

O INC., accounts show the following balances: Cost of goods sold, ₱320,000; Insurance expense, ₱75,000;
Advertising expense, ₱25,000; Freight-out, ₱30,000; Loss on sale of equipment, ₱7,000; Rent expense (one-half
pertains sales department), ₱80,000; Salaries expense (1/4 pertains to non-sales personnel), ₱150,000; Sales
commission expense, ₱10,000; Bad debts expense, ₱5,000; and Interest expense, ₱5,000.

3. How much is the distribution costs?

a. ₱117,500 c. ₱217,500
b. ₱157,500 d. ₱317,500
4. How much is the administrative expenses?
a. ₱117,500 c. ₱217,500
b. ₱157,500 d. ₱317,500

Use the following information for the next five questions:

KAPATID COMPANY’S post-closing trial balance on December 31, 2019 shows the following account
balances:Cash, ₱50,000;Accounts receivable, ₱30,000; Notes receivable (nontrade) - ₱45, 000 due within 1yr.,
₱70,000; Inventory, ₱55,000; Prepaid supplies, ₱15,000; Land, ₱300,000; Building, ₱700,000;
Accumulated
depreciation, ₱360,000; Accounts payable, ₱80,000; Notes payable (nontrade) – ₱50, 000 due within 1yr.,
₱300,000; Rent payable (due within 1yr) ₱50,000; Utilities payable ₱35,000; Interest payable, ₱30,000; Salaries
payable, ₱60,000; Unearned Income, ₱130,000; and Owner’s capital, ₱175,000.

5. How much is the total current assets?

a. ₱220,000 c. ₱205,000
b. ₱195,000 d. ₱180,000
6. How much is the total noncurrent assets?
a. ₱1,360,000 c. ₱665,000
b. ₱1,385,000 d. ₱640,000
7. How much is the total current liabilities?
a. ₱305,000 c. ₱555,000
b. ₱435,000 d. ₱685,000
8. How much is the total noncurrent liabilities?
a. ₱250,000 c. ₱350,000
 b. ₱300,000 d. ₱130,000
9. How much are the total assets and total liabilities, respectively?
a. ₱860,000; ₱685,000 c. ₱845,000; ₱815,000
b. ₱1,580,000; ₱555,000 d. ₱870,000; ₱605,000

Use the following information for the next five questions:

KAPANALIG COMPANY’S post-closing trial balance on December 31, 2019 shows the following account
balances: Cash on hand, ₱10,000; Cash in bank, ₱50,000; Accounts receivable, ₱70,000; Allowance for bad
debts, (₱5,000); Notes receivable (nontrade) - ₱15, 000 due within 1yr., ₱60,000; Inventory, ₱40,000; Prepaid
supplies, ₱15,000; Prepaid rent, ₱25,000; Prepaid insurances, ₱35,000; Land, ₱600,000; Equipment, ₱300,000;
Accounts payable, ₱35,000; Notes payable (nontrade) ₱20, 000 due within 1yr., ₱65,000; Utilities payable,
₱45,000; Interest payable, ₱20,000; Salaries payable, ₱80,000; and Unearned income, ₱150,000.

10. How much is the total cash and cash equivalents?

a. ₱75,000 c. ₱60,000
b. ₱120,000 d. ₱120,000
11. How much is the total trade and other receivables?
a. ₱125,000 c. ₱130,000
b. ₱ 80,000 d. ₱85,000
12. How much is the total prepaid assets?
a. ₱115,000 c. ₱110,000
b. ₱75,000 d. ₱70,000
13. How much is the total property, plant and equipment?
a. ₱1,480,000 c. ₱1,650,000
b. ₱1,700,000 d. ₱1,430,000
14. How much is the total trade and other payables?
a. ₱350,000 c. ₱395,000
b. ₱330,000 d. ₱375,000
15. Entity A has ₱10,000 inventories, ₱50,000 cash, ₱20,000 machineries and ₱10,000 current liabilities. How much
is Entity A's working capital?
a. ₱40,000 c. ₱70,000
b. ₱50,000 d. ₱80,000
16. Entity B has ₱35,000 ending inventory, ₱76,000 beginning inventory, and ₱95,000 cost of goods sold. What is
Entity B's average sale period (days of inventory)?
a. 117.34 c. 220.86
b. 211.71 d. 213.45
17. Entity C's assets consist of ₱20,00 accounts receivable ₱40,000 cash, and ₱100,000 inventory, Entity C has total
equity of P20,000, What is Entity C's equity ratio?
a. 1.00 c. 0.29
b. 0.33 d. 0.50
18. Entity D's liabilities consist of ₱10,000 accounts payable, and ₱25,000 notes payable. Entity D has total equity of
₱75,000, What is Entity C's debt-to-equity ratio?
a. 0.47 c. 0.13
b. 0.33 d. 1.50

II – COMPUTATION
Use the following information for the next five questions:
Information on the accounts of PBO CINEMA COMPANY as of December 31, 20x1 is as follows: Cash, ₱30,000;
Accounts receivable, ₱70,000; Notes receivable (nontrade) – matures in 4 equal annual installments, ₱400,000;
Inventory, ₱150,000; Equipment, ₱2,000,000; Accumulated depreciation, (₱380,000); Accounts payable,
₱187,000; Notes payable (nontrade) - ₱100,000 due within 1 yr., ₱600,000; Rent payable (due in 2 yrs.),
₱62,000; Utilities payable, ₱30,000; Interest payable, ₱25,000; Salaries payable, ₱90,000;Unearned income,
₱750,000; and Owner’s capital, ₱526,000.

19. How much is the total current assets?

20. How much is the total noncurrent assets?

21. How much is the total current liabilities

22.How much is the total noncurrent liabilities?

23. How much is the total owner’s equity?
 Use the following information for the next five questions:

The nominal accounts of SHOW BULAGA COMPANY on December 31, 20x1 have the following balances:
Service fees, ₱696,000; Interest income, ₱48,000; Gain on sale of equipment, ₱16,000; Salaries expense,
₱240,000; Rent expense, ₱24,000; Utilities expense, ₱16,000; Supplies expense; ₱8,000; Depreciation expense,
₱32,000; Taxes and licenses, ₱56,000; Bad debts expense, ₱6,400; Interest expense, ₱1,600; and Miscellaneous
expense, ₱800.

Requirement: Prepare a single-step statement of comprehensive income. Provide a proper heading for the
statement.

III - BUSINESS PLANNING

If you will start and build your own business, how will you answer the following questions:
1. Business Description: What type of business are you planning? What products or services would you sell/offer?

2. Marketing: Who would be your potential customers? Who would be your competitors?
3. Manufacturing: Where would be your business located? Who would be your suppliers?
4. Organization: What form of business organization would you choose? What licenses and permits do you need?
5. Financial: What would be your total estimated business income for the first year? What would be your potential
funding sources?

….