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REVIEW 2014

I. Identify the following :


1. A business owned and organized by one person.
2.Business activities including the investment and withdrawals made by the owner/investors as well as
loans borrowed and repaid to lenders.
3.The art of managing or directing people and resources as efficiently as possible with a view of
accomplishing the goal of the organization.
4.Involves an orderly way of acumulating and reporting business transactions through a process of
analyzing,measuring,recording,classifying and summarizing, and from which reports are generated for
proper communication to decision makers.
5.A business organized as a separate legal entity from the owners. It can conduct business and has its
own rights,duties and responsibilities and can enter into contracts.
6.The ability of the company for its long-term debts to ensure its continued existence.
7.One who lends money or sells services or goods to be collected in the future.
8.An ethical standard calling for the non disclosure of confidential information obtained in the course
of professional engagement without the consent of the client or employer.
9.A function of management wherein they line up the activities to be undertaken to accomplish the
goals they set up.
10.The ability of the company to pay for its currently maturing obligations.
11.Business activities including the acquisition of properties such as land, machineries and equipment
as well as the eventual disposal of any of these on replacement or retirement date.
12. A business that buys raw materials, forms this to a finished product then sells this to the customer.
13. One who borrows money or buys goods and services with a promise to pay at a future date.
14.An ethical standard requiring adequate knowledge, skill, and experience in the practice of one's
profession.
15.A business owned by two or more individuals that contribute money,property and industry.
16.A business which involves services, for a fee to clients or customers.
17.Business activities related to the earning activities of an enterprise such as selling of goods or
services and incurring of expenses.

18.An ethical standard requiring the practitioner to be fair, to avoid bias and to always maintain
impartial attitude in all matters.

19.Any legal activity undertaking by man whereby he seeks to make money over or above his cost,and
where there is a risk of loss.
20.An ethical standard requiring the practitioner to be honest, sound,sincere and trustworthy.
21.A service activity whose purpose is to provide quantitative information, primarily financial in
nature, about economic entities which are intended to be useful in making economic decisions.
22. An ethical standard requiring the practitioner to avoid compromising relationship that may impair
objectivity.
23.A business which buys and sells goods or merchandise.
24.A financial statement why the amount of cash changed over a period of time.
25. The ability of the company to increase the owner's net worth by generating more revenues than cost
and expenses.
II: Analyze the following transactions given below as to what values are affected, whether the effect is
an increase or decrease and whether the account should be debited or credited. MENTION THE
DEBIT SIDE FIRST.
The transaction below are those of Mark Alvin's Candy Store:
2014
March1 Invested P10,000 cash for the business.
ex. , Debit cash 10,000, Asset increase. Credit Capital 10,000, Owner's Equity increase.
2 Brought various supplies, P1,500.
4 Furniture and fixtures amounting to P12,000 were bought on account.
6 Paid P5,000 for furniture and fixtures bought March
8 Purchased boxes of candies, P15,000 on account. Terms n/10.
10 Sold boxes of candies P10,000.
12 Made partial payment of candies purchased on March 8, P7,500.
14 Sold several boxes of candies for cash, P15,000.
16 Collected from the costumers P10,000.

18 Paid the balance of the furniture and fixture brought.


20 Paid P6,000 for the rent and utilities.

III: TG Company opened the Mega Theatre by investing cash of P500.00 on December 1. The
following transactions took place during December.
3.
Purchased the equipment used by Cine Theatre which was closed down by the government.
Terms: P200,000 down, balance covered by one year promissory note for P300,000.
4.

Signed a contract of lease with Alabang Realty and made a cash deposit of P100,000 for rent.

5.

Paid cash of P15,000 for advertising the theatre and for the purchase of billboards.

6.
Furniture and Fixtures worth P150,000 were constructed by Engr. Addun. Gave a 50% down
payment, balance to be paid within 90 days.
8.

Opened the Theatre with a gala premiere that brought in cash receipts of P20,000.

11.

Cash receipts for the week, P14,500.

12.

Received a bill for P15,000 from LVM Productions for the rental of film.

16.

Leased out part of the lobby for the operation of a canteen at a monthly rental of P7500

18.

Cash receipts for the week, P15,000

19.

Paid P1,500 for taxes and licenses.

23

Paid P10,000 to LVM Productions.

25

Cash receipts for the week, P14,750.

26

Made a partial payment of P15,000 for the account owing to Engr. Addun.

27

Bills paid: Meralco, P8,000 and Manila Waters, P1,500

29

TG Company made a cash withdrawal of P5,850.

30

Received a bill from Viva Production for rental of films, P25,000

31

Received the amount due from canteen operator, P3,750.(Use the title Lease Income)

31

Paid P12,000 for salaries and wages.

Required: Journalize the transactions. Prepare a trial balance.