Sample spreadsheet problem

Sample Problems on Business Transactions

The following is the unadjusted trial balance of P.D. trading on December 31, 2007, the end of the accounting period.

Cash	P 10,000.00
Accounts Receivable	40,000.00
Allowance for Bad Debts		P 400.00
Notes Receivable	12,000.00
Inventory, January 1	22,000.00
Furniture and Equipment	25,000.00
Accumulated Depreciation		10,000.00
Land	115,000.00
Accounts Payable		60,000.00
Notes Payable-bank debt in 2 years		20,000.00
Mortgage Payable-due in 5 years		50,000.00
P.D., Capital		99,000.00
Sales		360,000.00
Sales Returns and Allowance	11,000.00
Purchases	280,000.00
Freight In	6,200.00
Salaries	36,000.00
Rent Expense	24,000.00
Insurance	4,800.00
Other Operating Expenses	12,000.00
Interest Expense	1,800.00
Interest Income		600.00
Total	P 600,000.00	P 600,000.00

Additional information for adjustments:

a. Estimated bad debts are 2 ½% of accounts receivable.

b. A note receivable P8,000.00, 60-day 6% is dated Nov. 16, 2007.

c. The furniture and equipment were acquired on Jan. 1, 2005 and are estimated to last two years from December 31, 2007.

d. The note payable to bank is 15% note dated Sept. 1, 2007.

e. Accrued interest on mortgage is P1,500.00.

f. Accrued salaries 1,200.00.

g. Prepaid rent P8,000.00

h. Unexpired insurance P600.00.

i. Prepaid interest expense P300.00.

j. Prepaid interest income P100.00.

k. Inventory, December 31, 2007, P62,440.00.