De La Salle University

Accountancy Department

ACCTBA1 - QUIZ #3

Name:______________________________ Section:_____ Date:_______________ Score:___________

General Instruction: Answer the theory questions on the questionnaire provided and show on a 10 column
worksheet all computations in problem solving in good accounting format. NO CHEATING!!!

Part I. Encircle letter T if the statement is correct or F if the statement is incorrect. (1 pt each)

T F 1. The statement of changes in equity shows the events and transactions that took place
during the reporting period that affects equity.
T F 2.Chart of accounts is the lists of each assets, liabilities, equity, revenues and expenses
accounts applicable to the business.
T F 3.General journal is also known as the book of original entry because this is where all
transactions where entered first.
T F 4.In journalizing business transaction, total debits should always be equal to total credits
at all times
T F 5. Debit and credit can be interpreted to mean increase and decrease at all times,
respectively.
T F 6. The financial position of an enterprise is affected by the economic resources it
controls.
T F 7. The owner invested cash in the business the transaction will include a debit to cash
and credit to accounts receivable for the same amount.
T F 8. Items in the Statement of Financial Position should be presented in such a way that
the current and noncurrent assets are clearly distinguished.
T F 9. Recording of business transaction should always results to a balance accounting
equation, hence, left side of the accounting equation is always affected by every business
transaction recorded.
T F 10. Net income resulted when total expenses exceeds total revenues reported by the
business for a specific period of time.

Part II. On a 10-column worksheet, show your computations for each missing amounts in good
accounting format. NO computation, NO credit points. Write your final answer on the space provided (2
pts. each)

JERON Co. JERIC Inc. ALVIN Co.

January 1, 2012
Assets 1.) 4.) 300,000
Liabilities 75,000 20% 7.)
Equity 55,000 5.) 100,000
December 31, 2012
Assets 200,000 800,000 400,000
Liabilities 35% 300,000 220,000
Equity 2.) 6.) 180,000
Changes in equity:
Additional investment 10,000 120,000 8.)
Drawings 12,000 80,000 40,000
Total revenues 3.) 900,000 1,400,000
Total expenses 360,000 1,200,000 1,340,000

Part III. Using a 10-column worksheet prepare the Income Statement (8 pts.), Statement of Changes in
equity (5 pts.) and Statement of Financial Position – Report form, including notes (12 pts.) of Piano
Motor’s Service Center.
The following are the ledger balances of Piano Motors Service Center for the period ended June 30, 2013.

Accounts payable P100,000

Accounts receivable 170,000
Office equipment 400,000
Furniture and fixtures 175,000
Allowance for bad debts 20,000
Bad debts expense 12,000
Accumulated Depreciation – office equipment 100,000
Accumulated Depreciation - furniture and fixtures 25,000
Cash on hand 126,750
Cash in bank 23,250
Depreciation expense 125,000
Insurance expense 12,000
Interest income 35,000
Miscellaneous expense 55,000
Notes payable 400,000
Notes receivable 330,000
Supplies 26,000
Prepaid insurance 85,000
Piano, Capital - July 1, 2012 310,860
Rent expense 33,000
Gas and oil 76,250
Salaries expense 255,350
Utilities expense 55,750
Salaries payable 25,550
Taxes payable 34,880
Mortgage payable 90,000
Service Income 995,000

Additional information:
a. Notes receivable is from a customer dated June 30, 2013, and is expected to be collected in 3
equal annual payments starting June 30, 2014.
b. Notes payable was from a bank loan due P200,000 in June 30, 2014 and another P200,000 due in
June 30, 2015.
c. During the year, the owner Mr. Kristof Piano invested an old furniture and fixture with original
cost of P300,000 and accumulated depreciation of P200,000 but with current fair value of
P75,000 at the date of investment, included in the above balance of Furniture and fixtures.
d. Kristof withdrew cash of P150,000 and supplies of P940 for personal use.
e. During May 2013, Kristof paid the tuition fee of his son using the cash of the business, P100,000.

GOOD LUCK!!!!
END OF EXAMINATION
“Oh hooray for this day”
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