ACTBAS1 GROUP BUSINESS CASE 1st Term, Academic Year 2012-2013 Source: Accounting Principles 8th Edition.

Weygandt, Kieso, Kimmel John Wiley & Sons (Asia) Pte Ltd. BYP3-4, page 136 [Modified] Happy Camper Park was organized on April 1, 2012 by Amaya Berge. Amaya is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Amaya prepared the following income statement for the year ended March 31, 2012. HAPPY CAMPER PARK Income Statement For the Year Ended March 31, 2012 Rental Income Expenses Wages Expense Advertising Expense Repairs and Maintenance Utilities Expense Depreciation Expense Total expenses Net income P 29,800 5,200 4,000 900 800 P (40,700) 49,300 P 90,000

Amaya thought that something was wrong with the statement because net income had never exceeded P20,000 in any one year period. Knowing that you are enrolled in an accounting class this term, she asks you to review the income statement and other data. You first look at the trial balance. In addition to the account balances reported above in the income statement, the ledger contains the following additional selected balances on March 31, 2012. Supplies on Hand P 6,200 Prepaid Insurance 7,200 Notes Payable 12,000 You then make inquiries and discover the following: 1. 2. 3. 4. 5. 6. Rental income include advanced rentals for summer occupancy, P15,000. There were P1,700 of supplies on hand on March 31, 2012. Prepaid insurance resulted from the payment of a one-year policy on January 1, 2012. The mail on April 1, 2012 brought the following bills: advertising, P110; repairs made on March 10, P260; and utilities, P180. There are four employees who receive wages totaling P300 per day. On March 31, 2012, 2 days wages have been incurred but not paid. The notes payable is a 3-month 10% note dated January 1, 2012. - next page -

-2INSTRUCTIONS: 1. 2. 3. Prepare the necessary adjusting journal entries as of March 31, 2012. For each adjusting entry, explain to Amaya the particular generally accepted accounting principle(s) that supports it. Prepare the correct (adjusted) income statement for Happy Camper Park for the year ended March 31, 2012.

CASE OUTLINE: I. Introduction (Provide a brief introduction about the case. One to two pages only) II. Report (This is the answer to the requirements above) III. Recommendation (Recommend/suggest to Amaya some important steps she has to undertake in the future to avoid the situation she is presently in)

FORMAT: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Paper size: 8.5 x 11 (letter size or short-size) Margin: 1 for all sides Font and font size: Arial 11 Paragraph alignment: Justified Paragraph spacing: Double-spaced Length of written report: 5 15 pages, excluding cover page Attachment/s, if any No need for folder Deadline for submission: MW class August 13, 2012 (Monday) TH class August 14, 2012 (Tuesday) The cover page should be as follows: HAPPY CAMPER PARK A business case presented to the Accountancy Department In partial fulfillment of the course requirements in ACTBAS1 Surname, First name, M.I. Surname, First name, M.I. Surname, First name, M.I. (arranged alphabetically) Section Date - End -