Quiz 1 – 2nd qtr – set A

I. Multiple Choice II. Supply the answer

A.
1. A journal entry that consists one debit and one credit is called
a. Compound entry Below is the trial balance of Jax Restau Bar
b. Multiple entry
c. Simple entry Cash 250,000  
d. either a debit entry or a credit entry
Land 100,000  
2. A journal entry must have the following parts, except Inventory ?  
a. Explanation
Accounts Payable 300,000
b. Date
c. Peso sign Jax, Capital 50,000
d. Debit and Credit accounts Service Revenue 80,000
3. Accounting systems vary widely from one business to another. Which one Sales 70,000  
of the following factors is the least likely cause of this variation? Salaries expenses 50,000  
a. Nature of the business
Cost of sales 50,000
b. Size of the firm and volume of transactions
c. Information demands of users taxes and licenses 20,000  
d. Application of generally accepted accounting principles   490,000 480,000
4. This is called the books of original entry 1. How much is the total debit balance
a. General ledger 2. How much is the inventory?
b. General Journal 3. How much is the total assets
c. Cash receipt books – transfer sales to credit and transfer cost of sales to debit. Add total
d. Cash disbursements Credit and the total credit should also be the amount of the total
debit. Subtract the accounts in the debit side from the total debit to
5. After the accounts have been closed determine the missing inventory amount. Total assets must include
a. The revenue, expense, income summary and retained earnings account cash, land, inventory
have zero balances
b. All the accounts have zero balances B.
c. The asset, liability, and stockholder’s equity account have zero balances
d. The revenue, expense, and income summary accounts have zero balances The following trial balance of Jed Siomai.as of December 31, 2019 is out of
balance.
6. It is a business paper which a company makes for every cash payment
a. Official receipt Cash 70,000  
b. Voucher Accounts Receivable 25,000  
c. Sales invoice
Office equipment 90,000  
d. Journal
Accounts Payable 65,000
7. What function do general ledgers serve in the accounting process? Jed, Capital 107,500
a. Recording
b. Reporting Fees Income 62,500
c. Classifying Salary Expenses 25,000  
d. Summarizing
Rent Expenses 5,000  
8. The debit and credit analysis of a transaction normally takes place Utilities Expense 1,600  
a. At some other point in the accounting cycle   216,600 235,000
b. Before an entry is recorded in a journal
c. When the entry is posted to the ledger In the process of verifying the amount in the trial balance, the following errors
d. When the trial balance is prepared were discovered:
 A debit to P5,000 was not posted to accounts payable – subtract
9. The last step in the accounting cycle is to from Accounts payable
a. Prepare a post-closing trial balance
 A debit to utilities expense for P1,000 was posted as P100 – add
b. Prepare a financial statements
utilities expense – 900
c. Journalize and post adjusting entries
 A debit entry for Accounts Receivable was posted to the credit side
d. Journalize and post-closing entries
P5,000 should be debited to offset the erroneous credit in the
accounts receivable. Add another P5,000 to show proper debit entry
10. If a payment for a cash withdrawal of P8,000 was journalized and posted
as a debit of P800 to rent expense and a credit of P800 to cash, will the total  Fees income of P2,500 was posted twice – deduct 2,500 since it was
debit and credit still be the same? recorded twice
a. Yes
b. No 4. What will be the correct balance of the trial balance?
5. What will be the correct balance of accounts receivable?
6. What will be the correct balance of the accounts payable?
7. What will be the correct net income of Jed Siomai? – computed as
revenue – expenses. Fees income – salary – rent - utilities
8. How much is the total assets?
9. What will be the capital end of Mr. Jed? Add capital and income and
deduct expenses

C.

The following errors were made in preparing a trial balance

 The P5,600 balance of inventory was omitted.
 The P500 balance of prepaid insurance was listed as a credit
 The P1,000 balance of salaries expense was listed as a service
 revenue
 The P300 advertising expense was listed as rent expense.

10. The debit and credit totals of the trial balance would differ by? 8600

Dr
-5600
-500
-1000
-300
+300

Cr
+500
+1000
III.MORSE TYPE: (RX2) Write “Happy” if both statements are true, Nov. 21 – Received advance payment from TWICE Taxi for premium
“Joy” if only the first statement is true, “Disgust” if only the second carwash service equivalent to 80 small cars to be rendered next month.
statement is true and, “Sad” if both statements are false.
1. a. Receipt of a billing statement is a non-accountable transaction b. Nov. 22 – Collected 90% of the outstanding receivable from the November 18
Payment of advanced salary to an employee just hired is an transaction.
accountable transaction. disgust
2. a. A misplaced debit to “Cash” in the “Accounts Receivable” Nov. 26 – Purchased car polish, shampoo, and sponge for P12,000. Paid P
account can be easily checked by the trial balance. b. Partial 8,000.00 and balance on account.
omission of a journal entry while posting may result to an unequal
trial balance. disgust Nov. 28 – Discarded exposed and damaged car polish and shampoo worth
3. a. A journal entry posted twice will result to an unequal balance of P2,000 bought last Nov. 26 (as if used)
debit and credit in the trial balance. b. While, total omission of a
Nov. 30 – Paid salaries of three staff for P12,500 each.
journal entry will still make the trial balance equal. disgust
4. a. In the accounting cycle, posting may precede journalizing. b. Answer the following questions for FSCD:
Accounting period that starts on January 1 and ends on December
31 is called a fiscal year. -sad 1. (Independent assumption) On Nov. 30, How much is the total
5. a. Footing is the process of transferring journal entries to a ledger. b. remaining liability to Tzuyu Machines and Sana Hydraulics if half of
Ledger captures all the movements in each account originally the accounts for both were paid on November 29?
reflected in the journal. disgust
a. 65,000 b. 32,500 c. 45,000 d. 282,500
On November 2, 2019, Jeongyeon invested the following to start
FEER SPESHAR CARWASH AND DETAILING (FSCD): 2. (Independent assumption) If the invested furniture and fixture and
carwash equipment are from bank instead of a direct investment from
Cash – P 1,200,000 Jeongyeon, how much would be debited to “Jeongyeon, Capital” on
Furniture and Fixtures – P 25,000 November 2?
Carwash Equipment – P 450,000
Office Supplies – P 4,200 a. zero b. 475,000 c. 450,000 d. 25,000
Car Detailing Supplies – P6,000
3. (independent assumption) On November 14, how much would be
Services of FSCD are priced as follows: credited to “Accounts Payable” if only half of the proceeds were used
to pay the equipment?
Small Medium Large
Basic Carwash 140 180 250 a. 225,000 b. 310,000 c. 305,000 d. 275,000
Premium Carwash 200 270 300
4. How much is the debit to cash for the November 9 transaction?
Nov. 6 – Bought pressure washer from Tzuyu Machines for P 50,000. The
business paid 30% down payment, balance on account a. 3,400 b. 4,000 c. 5,860 d. 9,260

Nov. 9 – 15 small cars, 2 medium cars, and 10 large cars underwent basic 5. For how much would the “Service Revenue” be credit due to the
carwash, while 17 small cars and 3 large cars went for premium. Large cars transaction on November 21?
were on account and the rest, cash.
a. zero b. 8,000 c. 16,000 d. 11,200
Nov. 13 – Received proceeds of P550,000 cash from a bank loan for
business use. Jeongyeon will use this to buy hydraulic lifter. 6. How much is the total “Cash” at the end of November?

Nov. 14 – Purchased hydraulic lifter from Sana Hydraulics for P 580,000.00. a. 1,131,510 b. 1,778,010 c. 1,787,010 d. 1,133,970
Jeongyeon used the entire proceeds from the bank loan on Nov 13 and the
balance on account. 7. How much is the total “Accounts Receivable” at the end of
November?
Nov 15 – Paid various expenses during the month – water and electricity, P
28,000; Telephone expense, P 6,000; and repairs expense, P 3,500. a. 7,900 b. 4,150 c. 1,690 d. 6,210

Nov 18 – 18 small cars, 10 medium cars, and 2 large cars underwent 8. How much is the total “Carwash Equipment” at the end of November?
premium carwash and 10 medium cars went for a basic carwash. Large cars
and half of the small cars issued check for the service while the rest, on a. 1,080,000 b. 1,100,000 c. 500,000 d. 1,030,000
account.
9. How much is the total “Car Detailing Supplies” at the end of
November?

a. 22,200 b. 20,200 c. 18,000 d. 16,000

10. How much is the total “Accounts Payable” at the end of November?

a. 671,000 b. 635,000 c. 85,000 d. 69,000

answer key gai q1

q2.xlsx