Gen. Vicente Alvarez St.

Zamboanga City
SENIOR HIGH SCHOOL DEPARTMENT
Name: Date:
Year & Section: LU. No.: Session:
Learning Unit Title: 4th Summative Assessment in Fundamentals of Accounting 1 Quarter: 2nd
Reference/s:
Value/s: HONESTY

4th Summative Assessment in Fundamentals of Accounting 1

PROBLEM SOLVING #1

Prepare the adjusting entry for each of the following for year ended December
31, 2010
1. Paid Trio Insurance Co. P 33,000 one year car insurance to commence August 1,
2010. The amount of premium was debited to Prepaid Insurance.

2. Borrowed P 200,000 from Metro Bank issuing a one(year note with 12) annual interest
on April 30, 2010

3. Bought P 20,000 equipment with five - year estimated life and a salvage value of P
2,000. Depreciation is computed on a straight line basis.

4. Received P 51,000 cash advance from a customer for one year services to be
rendered starting June 30, 2010 The amount was credited to Unearned Service
Income.

5. Purchased P 7,100 supplies at the beginning of the year. Supplies remaining at the
end of the year amounted to P 2,900.

6. Accounts receivable has a balance of P 130,000. It is estimated that P 5,000 of this is

uncollectible.

PROBLEM SOLVING #2

Prepare the adjusting entry for each of the following for year ended December
31, 2010

1. Received P63,000 cash advance from a customer for one year services to be
rendered starting June1, 2010. The amount was credited to Unearned Service
Income.

2. Paid one year rent in the amount of P 180,000 to commence August 31, 2010. The
amount of premium was debited to Prepaid Rent.

3. Purchased P5.900 supplies at the beginning of the year. Supplies used for the year
amounted to P1,750.

4. Received an 18% P120,000 note on May 1, 2010. Interest will be paid together with
the principal on maturity date.

5. Bought P42,000 equipment with five-year estimated life and a salvage value of P
3,000

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6. Accounts receivable has a balance of P50,000 It is estimated that 5% of this is
uncollectible. Allowance for Bad Debt has a balance of P 1,500

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