MODULE 2 FUN.

ACC PRETEST, EXERCISE, POST TEST,

PROBLEMS
Pre Test
Name: Art Given M. Baraquio

Score:

Section: 1BAM-A

_____ 1. Which of the following is a liability of a firm?

C. Money which the firm has borrowed and has not yet been paid

_____ 2. Revenue from sale of goods in the normal course of business is reported as part of the earning
in the period when:

B. the cash is collected

_____ 3. Identify the incorrect statement.

B. Equity – Liabilities = assets

_____ 4. Which part of the accounting equation does a sale on account affect?

A. Accounts Receivable and Accounts Payable

_____ 5. Assume that Swatch sold watches to a department store on account for P50,000. How would
this transaction affect Swatch’s accounting equation?

C. increase both assets and owners’ equity by P50,000

_____ 6. Assume that Swatch paid expenses totaling P35,000. How does this transaction affect Swatch’s
accounting equation?

D. decreases both assets and owner’s equity

_____ 7. Consider the overall effects of transactions 5 and 6 on Swatch. What is Swatch’s profit or loss?

A. profit of P15,000

_____ 8. The balance sheet reports

A. results of operations on a specific date

_____ 9. The income statement reports

C. results of operations for a specific period

_____ 10. The left side of an account is used to record

C. debits

Exercises:
Problem 1 : Read and analyze each transaction and identify whether it is a) recorded b) not recorded in
the accounting records. (Accounting Events) Which of the following events would be recognized in the
accounting records of Rogelio Ceradoy HR Consultants on the date indicated?

Feb. 15 Ceradoy HR Consultants offers to purchase a piece of land for P1,400,000. There is a high
likelihood that the offer will be accepted.

Mar 2 Ceradoy HR Consultants receives notice that its rentals for an office space will increase from
P50,000 to P60,000 per month effective April 1.

Apr 29 Ceradoy HR Consultants receives its electricity bill for the month of April. The bill is due on May
9.

July 10 Ceradoy HR Consultants places an order for an office equipment costing P108,000.

Aug. 6 The office equipment ordered on July 10 is delivered. Payment is not due until Sept. 1.

Problem 2A

Asset Liabilities Owner’s Equity

a.760,000 360,000 400,000
b. 860,000 268,000 592,000
c. 868,000 108,000 760,000
d. 626,600 376,240 (100,000)

Problem 2B
a. Jimmy Delgado Pest Control has assets of P600,000 and owner’s equity of P450,000

b. Margie Clavano Realtors has liabilities of P530,000 and owner’s equity of P410,000

c. Marco Fuentes Plumbing Contractor has assets of P473,000 and liabilities of P153,700

d. Ryan Morales Acting Studio has liabilities of P147,000 and owner’s equity of P236,500

e. Fely Menorca Dance has assets of P624,000 and liabilities of P237,000

Assets Liabilities Owner’s Equity

a. 600,000 150,000 450,000
b. 950,000 540,000 410,000
c. 473,000 153,700 320,000
d. 383,000 147,000 236,500
e. 624,400 237,000 387,400

Problem - 3
Selected transactions of JL Manpower Services are listed below. Give the effect on the three elements of
the balance sheet by using "+" if the account has increased , "-" if the account has decreased, and "NC" if
there is no change in the account. Indicate the amount of increase or decrease for each account.

Transactions Assets Liabilities Owner’s Equity

1. Christian Torres opened an account with CASH NC CAPITAL
Union Bank under CT Manpower Services +900,000 +900,000
business name in the amount P900,000
2. Paid municipal taxes of P4,300 including CASH -4300 NC EXPENSES -4300
his license to operate
3. Bought a P1,200,000 condominium for his CASH -500000 ACCOUNTS NC
office paying P550,000 down and signing a PAYABLE
mortgage with Union Bank payable in 20 1,200,000 +700,000
years for the balance
4. Hired a secretary, messenger, and janitor CASH -21,000 NC EXPENSES -21,000
with salaries of P9,000 ; P7,000, and P5,000
respectively.
5. Bought furniture from Justine on credit FURNITURE ACCOUNTS NC
P25,000. +25,000 PAYABLE
+25,000
6. Returned P3,000 worth of furniture FURNITURE ACCOUNTS NC
bought from Justine due to wrong -3,000 PAYABLE -3,000
specifications.
7. Bought cash register from Fiona Co. CASH -17,000 NC +17,000
P17,000 cash CASH
REGISTER
+17,000
8. Bought P2,600 office supplies for cash. CASH -2600 NC NC
SUPPLIES
+2600
9. Paid Furniture & Fixtures purchased on CASH -22000 ACCOUNTS NC
account from Justine. PAYABLE -22000
10. Bought a P675,000 van from Dungao CASH -135000 ACCOUNTS NC
Motors for use in the business Terms: 20% PAYABLE
cash, 30% thru 10 day 2% note and the VAN 675,000 +540,000
balance on account
11. Made an additional investment of CASH NC CAPITAL +840000
P800,000 and a computer worth P50,000 +800,000
with a market value of P40,000 COMPUTER
+50,000
12. Returned damage supplies worth P300. CASH +300 NC REVENUES +300
13. .Withdrew P100,000 and supplies worth CASH - NC DRAWINGS OF
P800 for personal use. 100,000 OWNER -100,800
SUPPLIES -800
14. Paid the note issued to Dungao Motors CASH ACCOUNTS NC
-540,000 PAYABLE
-540000
15. Rendered manpower services to Rasselle ACCOUNTS NC REVENUES
on account P320,000 RECIEVABLE +320000
+320000
Total: 2,643,900.00 = 700,000.00 + 1,943,900.00

= 2,643,900.00 =2,643,900.00
Post-test
Name: Art Given. Baraquio

Score:

Section: 1BAM-A

_____ 1. Suppose your business has cash of P50,000; Accounts Receivable of P60,000; and Furniture
totaling P200,000. The store owes P80,000 on account and has a P100,000 note payable. How much is
your equity?

B. P130,000

_____ 2. When the rent for the business is paid with check,

B. cash is decreased and RENT EXPENSE DECREASED

_____ 3. When an entity receives cash for services performed

C. the owner’s equity is increased

_____ 4. A credit entry decreases the balance of

A. assets

_____ 5. The purchase of a service vehicle on account

C. will DECREASE EQUITY

_____ 6. Withdrawals by the proprietor has all of the following effects except

D. reduction of total assets

_____ 7. Obligations which are expected to be liquidated through the use of existing current assets or
the creation of other current liabilities are called

B. current liabilities

_____ 8. In accounting equation, an increase in asset can be associated with

B. an increase in a liability

_____ 9. The primary purpose of the trial balance is to test the

B. equality of debit and credit balances in the ledger

_____ 10. A P800 credit item is accidentally posted as a debit. The trial balance column totals will
therefore differ by

C. P800
 Problem 1

           
OWNERS
ASSETS LIABILITIES EQUITY
ACOUNTS Utilities JONARD
CASH REC. F&F ACC. PAY. Payable CAPITAL

1 90,000.00   15,000.00     105,000.00

2   12,000.00       12,000.00

3     18,000.00 18,000.00    

4 77,000.00         77,000.00

5   11,000.00       11,000.00

6 (18,000.00)     (18,000.00)    

7 5,000.00 (5,000.00)        

8 6,000.00 (6,000.00)        

9         990.00 (990.00)

10 2,000.00         2,000.00

11 22,000.00         22,000.00

12 (806.00)         (806.00)

Total: 183,194.00 12,000.00 33,000.00 - 990.00 227,204.00

           

  228,194.00   = (228,194.00)  
 Problem 2

OWNERS
ASSETS LIABILITIES EQUITY
ACOUNTS JAZMINE
CASH REC. EQUIpment ACC. PAY. LOAN PAYABLE CAPITAL

1 90,000.00   20,000.00     110,000.00

2 100,000.00       100,000.00  

3     15,000.00 15,000.00    

4 55,000.00         55,000.00

5   18,000.00       18,000.00

6 (15,000.00)     (15,000.00)    

7 (10,000.00)         (10,000.00)

8 (900.00)         (900.00)

9 (1,400.00)         (1,400.00)

10 18,000.00 (18,000.00)        

11 40,000.00         40,000.00

12 (100,000.00)       (100,000.00)  

TOTAL: 175,700.00 - 35,000.00 - - 210,700.00

           

  210,700.00   = 210,700.00  
 Problem 3
           
OWNERS
ASSETS LIABILITIES EQUITY
ACOUNTS JONARD
CASH REC. Supplies ACC. PAY. NotesPayable CAPITAL
1 99,000         99,000

50,000.0
2 0       50,000.00  

1,200.0
3     1,200.00 0    

35,000.0 35,00
4 0         0.00

25,000.0 25,00
5   0       0.00

(1,200.0 (1,200.0
6 0)     0)    

(26,000.
7 00)       (26,000.00)  

(2,800.0 (2,800
8 0)         .00)

(24,000.
9 00)       (24,000.00)  

25,000.0 (25,000.
10 0 00)        

50,000.0 50,00
11 0         0.00
(32
12 (321.00)         1.00)

204,679. 205,87
Total 00   1,200.00     9.00
       
    205,879.0 = 205,879.00  
 0

Problem 4
ASSETS     LIABILITIES   OWNERS EQUITY
ACOUNTS utility
CASH REC. equipment ACC. PAY. payable MELAICA CAPITAL

50,000.00   20,000.00     70,000.00

    15,000.00 15,000.00    

  12,000.00       12,000.00

(5,000.00)     (5,000.00)    

8,000.00         8,000.00

3,000.00         3,000.00
       2,800.00 (2,800.00)
     (1,500.00)  (1,500.00)  

(9,000.00)         (9,000.00)

(2,800.00)       (2,800.00)  

(40,000.00)         (40,000.00)

(8,500.00)     (8,500.00)    

14,000.00         14,000.00

(9,600.00)         (9,600.00)

Total 100.00 12,000.00 33,500.00 - - 45,600.00

       
45,600. 45,600.0
00 = 0

Name: Art Given M. Baraquio

Section: 1BAM-A