FDNACCT 08 · Completing the Cycle
Conventions
Amounts are Philippine pesos (₱). Enter numeric answers without a currency symbol; commas are optional. Use accrual accounting, periodic inventory, prepaid expenses under the asset method, unearned revenue under the liability method, straight-line depreciation, and the allowance method unless a question states otherwise. Interest uses a 360-day year or months/12. Follow the course cash-flow convention: interest/dividends received are investing, interest/dividends paid are financing. Each Practice Lab table has one highlighted blank. Questions are independent; use only the facts given in that question.
Questions
01Which pair belongs between Adjustments and the statement sections in a 10-column worksheet?
Problem
A 10-column worksheet has five debit/credit pairs. The first two carry unadjusted balances and adjustment entries; the final two carry the statement sections. Identify the pair between them.
02Under the periodic worksheet procedure, identify the debit account used to remove beginning Merchandise Inventory.
Problem
All amounts are Philippine pesos (₱). In the periodic worksheet procedure, beginning inventory must be removed from the asset account and included in this period’s cost of goods available. Identify the debit account for that removal.
03How are the customer delivery fees classified by function?
Problem
A retailer pays delivery fees to transport goods already sold to customers. Use expense classification by function, separating distribution work from general office administration.
04Under the FDNACCT cash-flow classification convention, identify the category for cash interest paid on a bank borrowing.
Problem
A business pays interest on a bank borrowing, with no repayment of principal in this transaction. Classify that interest payment using the FDNACCT convention for interest and dividends covered in the reviewer.
05Merchandise purchases total ₱200,000, of which 20% is on account. Complete cash paid.
Problem
All amounts are Philippine pesos (₱). Calculate the cash paid for the purchase. No discount, return, or freight affects the payment.
| Item | Value |
|---|---|
| Merchandise purchase price | 200,000 |
| Portion left on account | 20% |
| Cash paid | ? |
06What is net operating cash flow? Enter a negative amount for cash used.
Problem
All amounts are Philippine pesos (₱). Beginning cash is 100,000. These are all cash-relevant transactions for the year. Use the direct cash-flow method; amounts described as on account or unpaid are not cash receipts/payments.
| Transaction | Facts |
|---|---|
| Owner contribution | 50,000 cash |
| Bank borrowing | 250,000 cash |
| Merchandise purchases | 200,000 total; 20% is on account |
| Store-space rental billed | 60,000; one sixth remains uncollected |
| Operating expenses incurred | 42,000; electricity of 8,000 remains unpaid |
| Supplies purchased | 2,000; half remains unpaid, one fifth remains unused |
| Manager loan | Collect 10,000 principal on a non-trade loan previously made to the manager |
| Owner drawings | 5,000 cash |
| Computer purchase | 40,000 cash for PPE |
| Goods sold on account | 120,000; none collected during the year |
| Net operating cash flow | ? |
07What is net financing cash flow? Enter a negative amount for cash used.
Problem
All amounts are Philippine pesos (₱). Beginning cash is 100,000. These are all cash-relevant transactions for the year. Use the direct cash-flow method; amounts described as on account or unpaid are not cash receipts/payments.
| Transaction | Facts |
|---|---|
| Owner contribution | 50,000 cash |
| Bank borrowing | 250,000 cash |
| Merchandise purchases | 200,000 total; 20% is on account |
| Store-space rental billed | 60,000; one sixth remains uncollected |
| Operating expenses incurred | 42,000; electricity of 8,000 remains unpaid |
| Supplies purchased | 2,000; half remains unpaid, one fifth remains unused |
| Manager loan | Collect 10,000 principal on a non-trade loan previously made to the manager |
| Owner drawings | 5,000 cash |
| Computer purchase | 40,000 cash for PPE |
| Goods sold on account | 120,000; none collected during the year |
| Net financing cash flow | ? |
08Complete ending cash and cash equivalents: beginning ₱790,000; operating provides ₱659,000; investing uses ₱151,000; financing uses ₱532,000.
Problem
All amounts are Philippine pesos (₱). These are the complete supplied activity totals for the year. Cash provided and cash used retain their stated directions.
| Item | Amount |
|---|---|
| Cash and cash equivalents, January 1 | 790,000 |
| Cash provided by operating activities | 659,000 |
| Cash used in investing activities | 151,000 |
| Cash used in financing activities | 532,000 |
| Cash and cash equivalents, December 31 | ? |
09Which account is debited in the beginning-of-next-period salaries-accrual reversal?
Problem
All amounts are Philippine pesos (₱). At December 31 a business records Dr Salaries expense / Cr Salaries payable for salaries incurred but unpaid. It chooses to reverse this accrual on January 1 before the later cash payment. Identify the debit account in that opposite entry.
10What is ending cash after all listed transactions?
Problem
All amounts are Philippine pesos (₱). Beginning cash is 100,000. These are all cash-relevant transactions for the year. Use the direct cash-flow method; amounts described as on account or unpaid are not cash receipts/payments.
| Transaction | Facts |
|---|---|
| Owner contribution | 50,000 cash |
| Bank borrowing | 250,000 cash |
| Merchandise purchases | 200,000 total; 20% is on account |
| Store-space rental billed | 60,000; one sixth remains uncollected |
| Operating expenses incurred | 42,000; electricity of 8,000 remains unpaid |
| Supplies purchased | 2,000; half remains unpaid, one fifth remains unused |
| Manager loan | Collect 10,000 principal on a non-trade loan previously made to the manager |
| Owner drawings | 5,000 cash |
| Computer purchase | 40,000 cash for PPE |
| Goods sold on account | 120,000; none collected during the year |
| Ending cash | ? |