University of San Jose-Recoletos

Magallanes St., Cebu City

College of Commerce

Problem-Solving
using Polyas Method

Submitted to:

Mr. Ryan Berdon

Submitted by:

(GROUP 2)

Aledon, B-jay Cautivo, Crysel Mae

Dela Ramos, Junjie Cuyos, Katherine Marie
Ganob, Carlo Espinosa, Nikki Patricia
Munoz, Jester Neil Ligan, Germalyn
Talandron, Mark Allen Maquilan, Khia
PROBLEM 1:

Mr. Ryan entered into a 2-year-payable loan of Php 50,000 is made with 4% simple interest. He
wants to know how much interest he will pay for the 2-year loan he applied.

SOLUTION:

 Step 1: Understand the problem.

Always take a moment to identify the values given in the problem. Here we are given:

Time is 2 years: t=2

Initial amount is Php50,000: P=50,000

The rate is 4%. Write this as a decimal: r=0.04

 Step 2: Devise a plan (translate).

Now apply the formula:

I= Prt

=(50,000)x(.04)x(2)

 Step 3: Carry out the plan (solve).

50,000

X .04

2,000

X 2

4,000

 Step 4: Look back (check and interpret).

In the problem you are given three data the interest rate, the principal amount and the time. In
calculating I you only need to multiply all the values given: Php 50,000 multiplied with 4%
interest rate (.04) and multiply the answer with 2 since he’s paying the loan for 2 years resulting
him to pay Php 4,000 all in all for his 2 year loan.

ANSWER:

The interest he needs to pay for 2 years is Php 4,000 in total.

PROBLEM 2:

On September 4 2018, Liza's Vulcanizing Shop has purchased 3 new Tire Vulcanizing Machines.
The cost of each machine is P4, 217 with an estimated salvage value of P255. Its estimated
useful life is 8 years. How much is the annual depreciation of these new machines? How much
will be the accumulated depreciation every month?

SOLUTION:

 Step 1: Understand the problem.

Liza, the owner of the vulcanizing shop has now purchased new tire vulcanizing machines. Since
these are equipment to be used mainly for operations, these will be subject to depreciation. So
we will get the annual and accumulated depreciation of the equipment so that there will be no
overstatements on the asset account.

The cost of each machine is P4, 217;

It has an estimated salvage value of P42;
And lastly, its estimated useful life is 8 years.

 Step 2: Devise a plan (translate).

In order to get what is asked on the problem, which is on how to get the annual depreciation
and the accumulated depreciation every month, we will provide a formula based on the
Fundamentals of Accounting:

For annual depreciation:

Cost-Salvage Value = Depreciable Cost/Estimated Useful Life = Annual Depreciation

For accumulated depreciation:

Annual depreciation/ 1 year (12 months to get the monthly depreciation)

 Step 3: Carry out the plan (solve).

Cost = P4, 217

Estimated salvage value = P255
Estimated useful life = 8 years

Php 4, 217 – Php 255 = Php 3, 962

Php 3, 962/ 8 years = Php 495. 25 - annual depreciation
Php 495. 25 / 12 months = Php 41. 30 - accumulated depreciation
Php 495. 25 x 3 machines = Php 1, 485. 75
Php 41. 30 x 3 machines = Php 123. 10

 Step 4: Look back (check and interpret).

Since Liza's shop bought 3 machines, we must multiply the annual depreciation and the
accumulated depreciation to three.

ANSWERS:

The annual depreciation for the machines is Php 1, 485. 75 and the accumulated depreciation
every month is Php 123. 10.

PROBLEM 3:

A starting business is approaching the end of their first periodic accounting cycle. The business
owners ended up with a list of the following items owned by the entity: service vehicle, an
account payable and a capital. He wants to know which of the three is an asset, a liability or
owner’s equity to the business. The owner used the function of each item listed in the various
transactions that the entity has engaged into in order to identify the items’ classification. These
are:

i. A liability is something that the business must pay.

ii. An asset it purchased using the capital.
iii. An account payable either an owners equity or a liability.
iv. An owner’s equity is not paid by the business.

SOLUTION:

 Step 1: Understand the problem.

The business owner has a list of items owned by the entity and he wants to know the
classification of each items. The items were a service vehicle, an account payable, and a capital.
The classifications on the other hand are asset, liability and owner’s equity. The following clues
were given too:

i. A liability is something that the business must pay.

ii. An asset it purchased using the capital.
iii. An account payable either an owners equity or a liability.
iv. An owner’s equity is not paid by the business.
  Step 2: Devise a plan (translate).

To organize, we will make a table to plot the items on the list across from the classifications
given.

Asset Liability Owner’s Equity

Service Vehicle
Account Payable
Capital

Then, we will use the following clues to sort out and identify the classification of each item
listed:

i. A liability is something that the business must pay.

ii. An asset it purchased using the capital.
iii. An account payable either an owners equity or a liability.
iv. An owner’s equity is not paid by the business.

 Step 3: Carry out the plan (solve).

Now, we will start to identify each item’s classification by eliminating using through the clues
given.

Asset Liability Owner’s Equity

Service Vehicle   
Account Payable   
Capital   

 Step 4: Look back (check and interpret).

The business owner wanted to know the classifications of each item listed, and all three items
with their respective classification were given. When we try to match the given clues to the
result obtained, they coincide.
ANSWER:

The classification of each listed items are as follows: the service vehicle is an asset, the account
payable is a liability and the capital is an owner’s equity.

PROBLEM 4:

Mr. B is an accountant and at the same time a restaurant owner. One time his skill as an
accountant was tested when 3 friends went to his restaurant and received a bill for Php 30.
Each of them gave Php 10 to the waiter for the bill. The cashier then realized that the correct
bill should be Php 25 and returned Php 5 to the waiter in Php 1 coin.

The waiter realized that he cannot divide the coins equally between the 3, so he pocketed the
Php 2 and returned Php 1 to each one of them.

Now that each friend has been given Php 1 back, each has paid Php 9, (3x9=27). The waiter has
Php 2 in his pocket (27+2=29). The amount handed over originally was Php 30. Where is the
missing Php 1?

SOLUTION:

 Step 1: Understand the problem.

P30 must be equal to the amount of money paid plus the amount returned.

 Step 2: Devise a plan (translate).

P30 = paid + returned

Final bill= Initial bill – Returns

Each person paid = final bill/3

 Step 3: Carry out the plan (solve).

Final bill = P30 - P5

= P 25

Each person paid = P25 / 3

= P8.3
 Php 2 - pocketed by the waiter
Php 8.33 x 3 friends
Php 3 - returned to 3 friends
+
= Php 25 paid for the bill
= Php 5

= Php 30

 Step 4: Look back (check and interpret).

The Php 1 is not missing. The error is in the statement "The waiter has P2 in his pocket
(27+2=29)". The P2 pocketed is already included in the P27 paid. The remaining P3 is the
change they received.

ANSWER:

The Php 1 is not missing.