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Review the following terms (meaning & uses)

Definition of accounting
Assets, Liabilities & Equity; Revenues and Expenses
Forms of Business Organizations
Fundamental Principles (Control, Comparability, Flexibility)
Financial statements (Financial Position, Financial Performance, Cash Flow,
Changes in Owner’s Equity)
Accounting areas (Bookkeeping, Financial Accounting, Cost Accounting, etc.)
Business Entity Concept, Going Concern, Cost Concept, Accrual, Objectivity,
Disclosure, reporting Period
Double entry bookkeeping
General Journal, General Ledger, Trial Balance (including its purpose)
Revenue Recognition Principle, Expense Recognition Principle, Matching
Items on the balance sheet like cash, accounts receivable, inventories, etc.
*Note: If kaya niyo silang imememorize, memorize niyo.. if hindi, intindihin
niyo sila word for word =)

Short Problems
 Presented below is a financial statement prepared by the secretary who has
no education background in accounting. The peso amounts taken from the
accounting records are correct.
SMV Resto
Statement of Financial Position
Dec. 31, 2009
Sy, Capital
Notes Payable
Accounts Payable
Mortgage Payable 500,000
If you will prepare the correct statement of financial position, how much is the
total current assets and total assets of SMV Resto?
a. 138,000; 1,151,000
b. 145,000; 1,452,000
c. 145,000; 1,151,000

301. 1. Net worth P287. Accounts Receivable P6.000.500.800 Cash Balance. 46.452.300.300 d. Dec.000 How much is the total liability of SMV Resto? a. Total long-term liabilities P26.500  The capital of Athena Salon at the end of 2012 is P378.200 d.100 b. what would be the amount of its total liabilities? a. 359. How much is the total current liabilities of Venus Company? a. 270.000 b.000  Eros opened a bakery and after one month of operation. notes payable P54. 628. 60.900 for personal use. During the year.900 c. 53.100.000 and there was no additional investment and withdrawal made during the month.000  Financial data of Venus Company for 2013 are as follows: Total Assets P360.000. Total Non-Current Assets P280. 153. How much is the income earned by the bakery for the month? a.000  The total owner’s equity of Jupiter Services is P180.000 d.128. 138.076.250 Cash used by investing activities 43.000.100. 97. 474.300.000 d. Utilities Payable P1. the owner withdrew P18. 52. 205.000 which is 2/3 of the total assets.000 b. 26. 34.100 c.000 d. 31 327.000.000 c. 1.200  The following is selected information pertaining to cash of Aphrodite Pet Shop: Cash from operations P115. 90. Supplies P2. How much is the beginning capital of Athena Salon? a.920 .800 c. the following accounts show these balances: Cash P80.d.500. The results of the operation at the end of the year showed a net income of P96. 205. Furniture & Fixtures P46. Equipment P168.900.000 c.500 b. 120. 455.000.000.000 b. His initial investment is P150.200. 1.

280.000 but it decreased by P50. 6 Office furniture was purchased from SM Mart paying 45% down payment of P33. Drawing Legal Fees Earned Salary Expense Advertising Expense Office Supplies Expense Utilities Expense Miscellaneous Expense Debit P45.958 d. 16 A summary of Legal Fees Earned showed: Cash Customers P35.200 P91.500 3. Capital Suarez. a lawyer decided to open a law firm named Suarez Law Firm.200 7. 2 Suarez invested P60. 160. 21 Collected P12.000 for clients who owed the firm. the following events took place: Oct. 462.000 5.800 and customers on account P21. The owner’s equity at the start of the year is? a.000 for miscellaneous expenses incurred 20 Received P10.500 cash for legal services rendered. the liabilities of Herodes Company amounted to 120. .000 26.600 15. After its one month of operation.000.000 Credit 20. 240.500 was bought for cash.000 0 5.000 c. 258.000 Totals P91.000 5.How much is the cash balance beginning if the cash used for expenses is P150.000 during the year. 192.865? a.000 d. 260. The assets increased by P160.750 and the balance is on account. 80.000 during the year and at the end of the year amounted to P360. Long Problem Atty. 8 Office Supplies costing P2.482 c.480  At the beginning of the year.000 b.000 cash to put up his law firm. Suarez.900 3.000 30.900 18 Paid P1. the following are the account balances of the firm: Account Title Cash Accounts Receivable Office Supplies Furniture and Equipment Accounts Payable Loan Payable Suarez.877 and cash provided by financing activities is P126.000 III.200 1.000 15.882 b.200 On the second month of operations.

000 for legal services rendered.000 25 Light.000 for personal use 30 Unused office supplies for P2. P17. P5. (explanations not required) b. c.23 Paid P3.) Pencil foot the ledgers.6 24 Various clients were billed for legal services rendered.000 30 Received P5. Required: a) Journalize the above transactions in the general journal.000 28 Salary of the secretary was paid. and telephone expenses for the month were incurred for P7. water. 2012 .500 29 Suarez withdrew P4.) Open the general ledger (enter beginning balances) and post the entries.500 for the office furniture purchased from SM Mart last Dec. extract the balances and prepare a trial balance for the month of October 31.