MISAMIS ORIENTAL INSTITUTE OF SCIENCE AND TECHNOLOGY

Cogon, Balingasag, Misamis Oriental

FUNDAMENTALS OF ABM
PRE-FINAL EXAMINATIONS

Name: _________________________________ Date:___________________

Year&Section: __________________________ Score: __________________

Test I. TRUE OR FALSE:

Direction: Read each of the following statements. Write your “NAME” in the space provided if the statement
is “TRUE”. However, if the statement is “FALSE” write “TRUE”. Erasures will be marked WRONG!

__________1. The first step in the processing of a transaction is to analyze the transaction and source
Documents.

__________2. A customer’s promise to pay is called an account payable to seller.

__________3. Unearned revenues are liabilities.

__________5. When a company provides services for which cash will not be received until some future date,
The company should record the amount charged as unearned revenue.

__________6. Debit means the right side of an account.

__________7. Increases in liability accounts are recorded as debits.

__________8. Debits increase assets and expense account.

__________9. Credit always increase account balances.

__________10. A revenue account normally has a debit balance.

__________11. A debit is always favorable.

__________12. Posting is the transfer of journal entry information to the ledger.

__________13. Transaction are first recorded in the ledger.

__________14. The journal is known as a book of original entry.

__________15. Trial balance acts as a checkpoint to know if there are error committed during the
Prior processes.
Test II. T-account
Direction: Journalize the following transaction of Ali Baba tutorials for the month of June 2017.

June 1 Alibaba deposited ₱600,000 in the account of the company. He also invested a furniture
Valued at ₱50,000.

3 Bought ₱5,000 supplies from national book store on account

5 Tutorial services rendered to Ms. Ta Lino on account, ₱15,000

7 Tutorial services rendered to various clients for cash, ₱180,000

15 Paid account with national book store

18 Collected ₱5,000 from Ms. Ta Lino

20 Received water bill, ₱400

28 Paid electricity for the month, ₱4,480

30 Paid water bill

Test II. T-account
Direction: Journalize the following transaction of

Date Transaction
Jan 2 An amount of ₱36,000 was paid as advance rent for three months.
Jan 3 Paid ₱60,000 cash on the purchase of equipment costing ₱80,000. The remaining amount was
recognized as a one year note payable with interest rate of 9%.
Jan 4 Purchased office supplies costing ₱17,600 on account.
Jan Provided services to its customers and received ₱28,500 in cash.
13
Jan Paid the accounts payable on the office supplies purchased on January 4.
13
Jan Paid wages to its employees for first two weeks of January, aggregating ₱19,100.
14
Jan Provided ₱54,100 worth of services to its customers. They paid ₱32,900 and promised to pay the
18 remaining amount.
Jan Received ₱15,300 from customers for the services provided on January 18.
23
Jan Received ₱4,000 as an advance payment from customers.
25
Jan Purchased office supplies costing $5,200 on account.
26
Jan Paid wages to its employees for the third and fourth week of January: $19,100.
28
Jan Paid $5,000 as dividends.
31
Jan Received electricity bill of $2,470.
31
Jan Received telephone bill of $1,494.
31
Jan Miscellaneous expenses paid during the month totaled $3,470
31
Test III. TRIAL BALANCE:
Direction: Balance the account. (25 points)

Cu Riport Enterprises
Trial balance
December 31

Cash ……………………………. 4,200

Prepaid insurance ……………. 1,480
Account receivable ……………… 10,000
Shop supplies …………………… 990
Account payable ………………… 46,320
Shop equipment ………………... 3,860
Accumulated depreciation ……. 770
- Shop equipment
Building…………………………... 57,500
Fixed assets …………………….. 32.000
Accumulated depreciation……….. 3,840
- Building
Credit card payable ……………... 32,125
Land …………………………….. 55,000
Deposits ………………………… 12,080
Long-term debt …………………. 52,360
Prepaid rent …………………….. 72,140
Unearned rent ………………….. 1,600
Retained earnings ………………. 18,035
Long-term note payable ………... 50,000
Consulting fees receivable ……… 73,780
Cu Riport, Capital …………….. 49,860
Revenue …………………………. 51,160
Salaries payable ………………… 2,400
Mortgage payable ……………... 23,400
Wages expense ……………... 3,200
Utilities expense ……………... 690
Property tax expense ……………... 600
Interest expense ……………... 4,350
Test IV. TRIAL BALANCE:
Direction: Balance the account. (10
points)

Test III. Complete the following trial balance

1.) Cash ₱25,000

2.) Rent expense ₱30,000
3.) Office equipment ₱18,000
4.) Accounts receivable ₱10,000
5.) Office supplies ₱3,000
6.) Merchandise inventory ₱24,750
7.) Prepaid insurance ₱1,300
8.) Store equipment ₱22,500
9.) Accumulated depreciation – store equipment ₱5,900
10.) Accumulated depreciation – office equipment ₱4,000