Professional Documents
Culture Documents
Lesson 1
Adjusting the Accounts
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Debit _________________________________
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Q3. How much of the P60,000 advanced rental will expire or will be expensed
at the end of each month?
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Q9. Regardless of what method is used in recording the prepayment,
a. How much amount of Prepaid Rent account will be shown in the Balance
Sheet/Statement of Financial Position? ____________________________
b. How much amount of Rent Expense account will be shown in the Income
Statement/Statement of Income? ___________________________
Case 2: The following errors were discovered by Doris Pateño, CPA in her
examination of the books of accounts of North Davao |Watch & TV Repairs,
owned and managed by Felina Barroga, just before closing on December 31,
2007.
Reconstruct the wrong entries prepared, the correct entries that should be
made, the would-be correcting entries. Utilize the space provided.
Q1. Cash received from a bank loan of the business in the amount of P80,000
was erroneously credited to capital account instead of Notes Payable.
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EVALUATE
Instructions:
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Post-Assessment
Case 1. Using the following table, indicate the effect of the following
errors of omission on the financial statement classification listed. If as
a result of the omission a classification is overstated, place (+) in the
appropriate space. An understatement is to be indicated by (-). If the
omission has no effect on the classification, place (o) in the appropriate
space.
Effect of Omiision
Classification
a b c d e f g
Revenues
Expenses
Profit
Total Assets
Total Liabilities
Owner's Equity
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Case 2.
Richard Belarmino
Preliminary Trial Balance
December 31, 2019
Adjusted
Trial Balance Adjustments
Account Titles Trial Balance
Debit Credit Debit Credit Debit Credit
Cash in Bank 75,000
Accounts Receivable 65,000
Allowance for Uncollectible Accounts 500
Supplies 15,000
Office Equipment 60,000
Accumulated Depreciation-Office Equipment
Accounts Payable 10,000
Accrued Salaries
Belarmino, Capital 143,500
Service Income 85,000
Uncollectible Accounts
Depreciation Expense
Salaries Expense 24,000
Supplies Expense
Totals 239,000 239,000
a. Cash received from a customer for services rendered was not recorded
in the book. This is covered by Cash Sales Invoice No. 0132 dated
December 31, 2019, P5,000.
e. Supplies that were actually on hand when physical counting was made,
P8,000.
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Lesson 2
The Worksheet and Financial Statements
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Name: _____________________________________ Time: _______________________
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2. What are the five (5) basic financial statements and discuss the
usefulness of each statement. (25 pts)
a. _________________________________________________________________
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b. _________________________________________________________________
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c. _________________________________________________________________
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d. _________________________________________________________________
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e. _________________________________________________________________
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3. Explain how the five (5) basic financial statements are interrelated.
(10pts)
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EVALUATE
Required:
1. Prepare a 10-cloumn worksheet with adjusting entries. Use the form
below.
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Acct Account Title Trial Balance Adjustments Adjusted Trial Balance Statement of Income Statement of Financial Position
Code Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
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Post-Assessment
Instructions: Multiple Choice. Encircle your letter of choice and show your
solution. No solution, no points. Each item is given 3 points credit.
Q1. If the balance of the Villanueva, Capital account was P210,000, what
would be the balance of the Building account?
a. 250,000
b. 40,000
c. 90,000
d. 210,000
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Q2. If the balance of the Building account was P170,000, what would be the
total of liabilities and owner’s equity?
a. 170,000
b. 270,000
c. 320,000
d. 350,000
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Q3. If the balance of the Building account was P150,000 and the equipment
was sold for 70,000, what would be the total of owner’s equity?
a. 150,000
b. 160,000
c. 270,000
d. 330,000
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Q4. If the balance of the Building account was 140,000 and 30,000 of
Accounts Payable were paid in cash, what would be the balance of the
Villanueva, Capital account?
a. 210,000
b. 260,000
c. 320,000
d. 340,000
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Q5. If the balance of the Building account was 80,000 and 30,000 of
Accounts Payable was paid in cash, what would be the total liabilities and
owner’s equity?
a. 140,000
b. 180,000
c. 190,000
d. 230,000
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Assets Liabilities
Cash 80,000 Accounts Payable 160,000
Accounts Receivable 10,000
Land 140,000 Owner's Equity
Building 440,000 Par, Capital 640,000
Equipment 130,000
Total Assets 800,000 Total Liabilities and Owner's Equity 800,000
Q6. If the balance in the Cash account were used to pay part of Accounts
Payable, then total liabilities and owner’s equity would;
a. decrease by 80,000
b. decrease by 160,000
c. increase by 80,000
d. increase by 160,000
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Q7. If the equipment were sold for 130,000, then the Par,Capital account:
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a. decrease by 130,000
b. increase by 130,000
c. increase by 370,000
d. stay the same
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Q8. If the balance in the Cash account were used to buy more equipment,
then the total assets would;
a. decrease by 80,000
b. increase by 80,000
c. increase by 210,000
d. remain unchanged
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Q10. What is the effect of the adjusting entry on the accounting equation?
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Q11. What amount of cash will be collected for interest revenue in 2017?
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Q13. What amount of cash will be collected for interest revenue in 2018?
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Lesson 3
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Completing the Accounting Cycle
EXTEND
Name: _____________________________________ Time: _______________________
3 Depreciation 3,200
Accumulated Depreciation 3,200
EVALUATE
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Name: _____________________________________ Time: _______________________
Instructions: Encircle the number of your choice and support your answer
with a solution: (5 pts each)
Item 1 through 4 is based on the following data: The following were the
unadjusted ledger balances of Ms. Arabela Grace Espina, owner of San Isidro
Micro-Lending Services as of December 31, 2019:
Additional Information:
1. Official Receipt No. 00509 in the account of P3,500 representing
collection from customers' account and Check No. 089571 in the amount
of P8,000 representing payment of account were inadvertently omitted
from the records.
Q-1. The amount of cash in bank" that should be shown in the Balance Sheet
as of December 31, 2019 would be
a. P197,000
b. P200,500
c. P205,500
d. P209,000
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Q-2. The correct balance of Espina, Capital as at December 31, 2019 would
be –
a. P350,000
b. P355,000
c. P361,000
d. P363,000
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Q-3. The correct balance of Asset Account excluding cash in bank as of
December 31, 2019 would be
a. P187,000
b. P190,000
c. P197,000
d. P199,000
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Q-4. The correct liability account that should be shown in the Balance
Sheet as of December 31, 2019 would be
a. P28,000
b. P30,000
c. P32,000
d. P36,000
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Item 5 is based on the following data: Kristine Uy Allied Services uses the
accrual basis of accounting for Revenue and Expense. At the end of the
period, the accountant prepares in part a modified single–step of an income
statement as follows:
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Item 6 through 7 is based on the following data: The following data for
adjustments comprises the accounts to be closed at the end of December
2019:
2. Unused Supplies was P30,000 of which P5,000 cost of supplies were found
to be on hand.
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3. Prepaid rental of P24,000 was paid on May 1, 2019 which covers one-year
period from May 1, 2019 to May 1, 2020.
Q-6. Assuming that the estimated revenue was P50,000, how much profit or
loss at the end of the period?
a. P24,000 profit
b. P 3,000 loss
c. P18,000 loss
d. P27,000 loss
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a b c d
Uncollectible Accounts Expense 2,000 4,000 5,000 6,000
Unused Supplies 15,000 25,000 25,000 30,000
Prepaid Rent 3,000 16,000 18,000 20,000
Depreciation 6,000 8,000 20,000 21,000
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Q-8. Explain why temporary accounts are closed at the end of an accounting
period.
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Post-Assessment
Required:
1. 10-column Worksheet (attached form)
2. Statement of Income (Yellow Paper)
3. Statement of Changes in Equity (Yellow Paper)
4. Statement of Financial Position (Yellow Paper)
5. Adjusting Journal Entries (attached form)
6. Closing Journal Entries (attached form)
7. Post-Closing Trial Balance (attached form)
8. Reversing Journal Entries (attached form)
1) 10-Column Worksheet
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5) Adjusting Journal Entries
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6) Closing Journal Entries
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7) Post-Closing Trial Balance
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8) Reversing Journal Entries
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