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ACCOUNTING 2
SEMI-FINAL EXAMINATION

TEST I: Identify the correct answer. Write your answer in the space provided. 2pts

1. Is a report which compares the bank balance as per company’s accounting records
with the balance stated in the bank statement.
Bank reconciliation statement
2. Methods of preparing bank reconciliation statement where in the book balance is
adjusted to agree with the bank balance.
Book to bank method
3. It is the amount that already received and recorded by the company, but are not yet
recorded by the bank.
Deposits in transit
4. A checks that have been written and recorded in the company’s Cash account but
have not yet cleared the bank account or presented to the bank by the payee.
. Outstanding checks
5. Are fees deducted from the bank statement for the bank’s processing of the
checking account activity.
Bank service charges
6. Occur when a company arranges for its bank to handle the reordering of its checks.
. Check printing charges
7. It’s appear on the bank statement when a bank gives a company interest on its
account balance. Interest earned
8. Also known as the income statement.
Statement of Comprehensive Income
9. Amount of goods bought during the current accounting period.
Purchases
10. Ann entity whose assets, liabilities, income and expenses are centered or owned by
two or more persons.
Partnership
11. Provides an analysis of inflows and/or outflows of cash from/to operating,
investing and financing ,this statement shows cash transactions only compared to the
SCI which follows the accrual principle.
Cash Flow Statement
12. The operating cash flow section of the CFS under the indirect method will reconcile
the net income/loss of the company with the total cash flows generated/used in
operating activities by adjusting the net income/loss for effects of non-cash
transactions.
Indirect Approach
13. Activities that are directly related to the main revenue-producing activities of the
company such as cash from customers and cash paid to suppliers/employees.
Operating Activities
14. Cash transactions related to changes in equity and borrowings.
Financing Activities
15. The balance of the cash account at the beginning of the accounting period.
Beginning Cash Balance

TEST II: Solve the following question. 10 pts each

1. The following balances were retrieved from the records of Juan’s Janitorial Services
for the year ended December 31, 2016:
Capital, January 1, 2016 P 500,000
Withdrawals 100,000
Additional Investments 50,000
Net Loss 45,000
Prepare the Statement of Changes in Equity
2. Juana’s sari-sari store had the following transactions during the year:

a. Purchase of goods. Paid cash. 100,000

b. Sale of goods. Received cash. 150,000
c. Paid utilities 30,000
d. Paid rent 10,000
e. Sold equipment for cash 100,000
f. Owner withdraws investment 10,000
Using the given above, prepare a Cash Flow Statement.

3. Prepare a Statement of Financial Position using the following accounts (one in

report form and one in account form):
Cash – 5,000
Loans Payable – 77,500
Accounts Receivable – 2,600
Supplies – 2,300
Equipment – 17,000
Owner’s equity – 40,000
Accounts Payable – 22,400
Building – 113,000