Professional Documents
Culture Documents
Exercises
Exercise 1
Credit
Exercise 2
5. Rent Income240,000
Unearned Rent Income 240,000
(P 360,000 x 8 / 12 = P 240,000)
2 Chapter 13
Exercise 3
2. Cash of P1,000,000 was received in advance and was duly recorded by the
Association as an asset with a corresponding recognition of a liability,
Unearned Admissions. Thus, it can spend the money for regular
operations. The liability, Unearned Admissions is reflected in the books
and financial statements of the Association until it is earned, and transferred
to Admissions Income.
Exercise 4
Exercise 5
2. a, b, c, e, g & h
4 Chapter 13
Exercise 6
No reversing entry
No reversing entry
Reversing entry:
Unearned Rent 360,000
Rent Revenue 360,000
Reversing entry:
Insurance Expense 157,500
Prepaid Insurance 157,500
Exercise 7
Exercise 8
1. A 6. b or c 11. b 16. b
2. A 7. A 12. a 17. a
3. A 8. C 13. a 18. c
4. A 9. A 14. a 19. b
5. B 10. B 15. c 20. b
Exercise 9
No reversing entry
No reversing entry
Reversing entry:
No reversing entry
No reversing entry
Reversing entry:
Interest Revenue 1,500
Interest Receivable 1,500
Reversing entry:
Salaries Payable 40,000
Salary Expense 40,000
Exercise 10
9 Chapter 13
Exercise 11
Exercise 12
c. Sales 1,900,000
Purchase Returns & Allowance 30,000
Income Summary 1,930,000
1. C 4. D 7. B 10. A
2. C 5. B 8. C
3. C 6. B 9. B
True or False
1. T 6. T 11. F 16. T
2. F 7. F 12. T 17. T
3. T 8. T 13. F 18. T
4. F 9. T 14. T 19. T
5. F 10. F 15. F 20. F
Completing the Accounting Cycle for a Merchandising Business 11
Test Material
Requirement (2)
Happy Palace Company
Worksheet
For the Month Ended January 31, 2008
Requirement (3)
Requirement (4)
GENERAL JOURNAL
Post
Date Account Titles and Explanation Ref Debit Credit
2008 Adjusting Entries
January 31 Selling Expense 54 7,500
General Expense 55 7,500
Supplies 14 15,000
GENERAL JOURNAL
Post
Date Account Titles and Explanation Ref Debit Credit
2008 Closing Entries
January 31 Sales Revenue 41 1,833,300
Income Summary 33 1,833,300
31 Income Summary
(P1,833,300 - P1,639,300) 33 194,000
JC Cruz, Capital 31 194,000