Activity 1: TRUE OR FALSE. Write True if the statement is correct and False if it is not. ____ 1. The SCI is a picture of the result of operations of the company as of the cut-off date. ____ 2. The major elements of the SCI are income and expenses. ____ 3. Cost of sales is computed as cost of goods available for sale less ending inventory. ____ 4. Expenses recognition strictly requires the matching expenses against revenue. ____ 5. Goods returned by customers are immediately deducted to the Sales Revenue account. ____ 6. In periodic inventory accounting, inventory is determined by conducting a physical count of merchandise owned. ____ 7. Expenses decrease assets and therefore have credit normal balances. ____ 8. Depreciation expense is a line account found in an SCI prepared following the multi-step format. ____ 9. Revenue result in increase in equity and therefore has a credit normal balance ____ 10.All accounts in SCI is also called nominal accounts.
Activity 1:
TRUE OR FALSE. Write True if the statement is correct and False if it is not.
____ 1. The SCI is a picture of the result of operations of the
company as of the cut-off date.
____ 2. The major elements of the SCI are income and expenses.
____ 3. Cost of sales is computed as cost of goods available for
sale less ending inventory.
____ 4. Expenses recognition strictly requires the matching
expenses against revenue.
____ 5. Goods returned by customers are immediately deducted
to the Sales Revenue account.
____ 6. In periodic inventory accounting, inventory is
determined by conducting a physical count of merchandise
owned.
____ 7. Expenses decrease assets and therefore have credit
normal balances.
____ 8. Depreciation expense is a line account found in an SCI
prepared following the multi-step format.
____ 9. Revenue result in increase in equity and therefore has a
credit normal balance
____ 10.All accounts in SCI is also called nominal accounts.
Activity 2:
Problem 1:
The Happy Toddlers
The Happy Toddlers is a preparatory school for children
three to five years old. Students are enrolled for a school-year.
Parents can pay the full tuition fee of P70,000 at the start of the
school year (June). There is also an option to pay two
installments of P37,000 each at the start of every semester
(June 1 and November 1). On the 150 students enrolled, 80 are
paid in full at the start of the year. The remaining students are
on installment basis. One school year runs from June 1 to
March 31.
Requirements: Determine the tuition fee revenue for the period December 31.
This is the first year of Happy Toddlers.
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