Fill the blanks.

1. Accounting is the - - - - - of business.

2. Accounting is a service activity. Its function is to provide quantitative information primarily financial in
nature about economic entities which are intended to be useful in making - - - - - decisions.
3. The basic accounting elements are --------, --------, and -------
4. ADE have normal debit balances. These letters stand for --------, -------- and ---------
5. LER have normal credit balances and stand for -------, ------- and--------.
6. ----------are the properties owned by the business
7_______is a concept which separates the business entity from its owner or owners.
8. Assets= Equities
These equities are:
a. --------equity of the owner

b. ----------equity of creditors.
9.------------- increase in Assets, Drawing and Expenses and decrease in Liabilities, Equity or Capital and
Revenues
10. Accumulated depreciation is a. --------------------(2 words)
11. The life of an entity is divided into ________ (2 words)
12. The expanded accounting equation is -------------.
13. AR is a ----------- account in the general ledger and the details are in the -----------ledger.
14. AR minus Allow. for BD is--------
15. The original cost of a fixed asset minus the accum. depr. is. -----------.
16. _____ is an analysis paper to facilitate the preparation of financial statements.
17. ____ entries are made at the end of the accounting period to update the accounts.
18. _____ entries reduce the balances of nominal accounts to zero.
19. ----------- are expenses paid in advance.
20._____ are expenses already incurred but not yet paid.
21. _____ is a gradual accumulation of expense incurred but unpaid or income earned but not received.
22. ______ is an inventoriable expense.
23.-------- is a summary account for nominal accounts used during the closing process.
24. ------------- is the difference between the original of a fixed asset and its scrap value
25. -------------- is a rate obtained by dividing 1 by the life of a fixed asset.
26. ----------- is a journal entry with only one debit and one credit
27. ------------ are claims against debtors for the sale of goods and sevices evidenced by a promissory
note.
28. A note not paid at maturity date is a ------------note.
29.A return from cash purchases is debited to ------------
30. ------------- is the value of a fixed assrt at the end of its life.
31. A return from cash sales is credited to ----------.
32. To get the sum of the years, the formula is -------------. Use S and n as variables.
33. This entry:
Allow for BD
AR
shows the --------------- method of writing off AR
34. The age of AR is the number of days from the -------- date to the end of the year.
35. Beg. inventory + net purchases is the ----------------.
36. The entry to record the collection of AR within the discount period is
-------------.
37. The entry to record the payment of AP within the discount period is ------------.
38. The entry to collect NR with interest is -----------.
39. The entry to record payment of NP with interest is --------.
40. The entry to record the sale of equipment costing P8000 with a book value of P5000 sold for P2500
is --------
41. -------- is an expense already paid but not yet incurred.
42. -------- is an expense already incurred but not yet paid.
43. ----------- is income already earned but not yet received
44. ---------- is income already collected but not yet earned.
45. ------------is a postponement of the recognition of revenue.
46- 50
Nov 1 Credit sales 8k
terms 90 day 10% note.
46. Journalize the sale on Nov 1
47. Adjusting entry to record the accrued interest as of Dec 31
48. Reversing entry
49. Collection at due date( idetermine ang due date, dapat tama)
50. Assume na walang reversing entry, record the collection sa due date.

Identify
51.Process of analyzing events and transactions to determine whether or not they will be recognized.
52.Events that involve the entity and another external party
53 Involves assigning numbers, normally in monetary terms, to the economic transactions and events.
54 Process of transforming economic data into useful accounting information, such as financial
statements.
55.Process of systematically committing into writing the identified and measured accountable events in
the journal.
56 Involves the grouping of similar and interrelated items into their respective classes
57. Putting together or expressing in condensed form the recorded and classified transactions and
events
58.A concept which states that each accountable event is recorded un 2 parts-debit and credit.
59.The entity is assumed to carry on its operations for an indefinite period of time.
60. Refers to the accounting for government and its instrumentalities
On October 12, 2019 Ace Merchandising Co sold merchandise on credit to Maya, P50000. The term is
FOB destination. Freight Prepaid 3/20 n/60. Freight paid on Oct 12 is P1000. Date of collection a)Oct 31
b) Dec11

Books of the seller

61. Entry on Oct 12 to record the sale
62. Entry on Oct 12 to record the payment of freight
63 Entry on Oct 31
64 Entry on Dec 11

Books of the buyer

65. Entry on Oct 12 to record the purchase

66. Entry on Oct 12 to record the payment of freight
67 Entry on Oct 31
68 Entry on Dec 11

69-76 same problem pero FOB shipping point, freight prepaid

On Nov. 18, 2019 a building costing P1M was purchased making a 20% DP and issued a 180-day, 8% note
for the balance. The building has a 25 year useful life.
Required:
77. Depr exp for 2019 using the straight line method of depr
78 Depr exp for 2019 using SYD
79 Depr exp for 2019 using DDB
80 Depr exp for 2020 using the ST line method
81 Depr exp for 2020 using SYD method
82 Depr exp in 2020 using DDB

Using straight line method give the entries on

83.Nov 18, 2019
84 Dec 31, 2019 to record depr
85 Dec 31, 2019 to record accrued interest exp
86 Reversing entry on Jan 1, 2020
87.Payment of the note at due date( kayo ang magdetermine ng due date)
88. Entry on Dec 31, 2020 to record depr
89. The following, among other accounts, are found in the unadjusted TB of ABS CBN Store as of Dec. 31,
2019
AR. 652,000
Allw for BD. 12500
NR. 210,000
Store
Supplies 80,000
Prepaid
rent. 120,000
Bldg. 890,000
Equipt. 90,000
Fur. 50,000
NP. 150,000
Insurance
exp. 72,000

Data for adjustments:

89. BD is estimated at 3% of AR
90.The NR is dated
Dec 5 Term 10% 60 days
91Supplies on hand 30,000
92The 3 months rent was paid on Dec 1
93Depr rate 5%
94The NP is dated Nov 25, interest at 8% for 60 days
95 The insurance is for 1 yr and paid on Oct 1

Prepare adjusting entries (89-95)and reversing entries (96-98)

99. What is the entry to record the recovery of accounts that was previously written off? (allowance
method was used)
100. What is the entry to record the recovery of accounts that was previously written off? (direct write
off method was used). Also assume that the recovery was made after the year of write off.