Dean's Exam Reviewer

6/6/22, 1:52 PM FINAL EXAM: Attempt review
Home / My Courses / ACC111_6316_2021-2022_2NDSEM-SEM_CAE / FINAL EXAM / FINAL EXAM
Started on Saturday, May 21, 2022, 8:00 AM

State Finished
Completed on Saturday, May 21, 2022, 9:51 AM
Time taken 1 hour 50 mins
Grade 72.00 out of 80.00 (90%)
Question 1
Complete Mark 1.00 out of 1.00
Daryl Company estimates doubtful accounts based on the aging of accounts receivable.
A/R- Ages A/R Balance Estimated collectibility
Current(less than 3 months) 800,000 98%
3-6 months past due 300,000 95 %
6-12 months past due 90,000 90%
more than 12 months past due 10,000 50%
Total 1,200,000
At the beginning of the year 2020, the Allowance for doubtful Account had a credit balance
of P21,000. During the year, Daryl wrote-off specific worthless accounts receivable valued
at P13,000. How much
doubtful account expense will the company is going to set up so
that the
allowance for doubtful account will equal to the required balance?

a. P53,000
b. P66,000
c. P45,000
d. P37,000
Question 2
At the beginning of the financial year, Edzel Singian paid a 3-year insurance premium of
P720,000. At the end of the financial year, _________.
a. P480,000 should be treated as expenses

b. P240,000 should be treated as expenses
c. P720,000 should be treated as prepaid expenses
d. P240,000 should be treated as prepaid expenses
https://umindanao.mrooms.net/mod/quiz/review.php?attempt=2722919&cmid=1240226&showall=1 1/27
Question 3
On March 1, Vicente purchased merchandise with an invoice price of P270,000 and 2/10,
n/30 terms. On March 3, Vicente paid P10,000 transportation cost on the purchased
goods. On March 10, Vicente paid for the merchandise. What was Vicente’s total cost of
the purchased merchandise?
a. P274,600
b. P270,000
c. P280,000
d. P274,400
Question 4
Which of the following items would be recorded in the purchase journal?
a. Equipment purchased on account

b. All of the above
c. Merchandise purchased on account
d. Supplies purchased on account
Question 5
If an owner invests a non-cash assets such as land, bldg. or equipment, these assets are
normally credited to:
a. Owner’s drawing account

b. Owner’s accounts payable
c. Owner’s accounts receivable
d. Owner’s capital
Question 6
When an entity has earned a profit, the profit amount is entered on the work sheet on the;
a. Credit side of the Income statement columns and the debit side of the balance sheet columns
b. Debit side of the income statement columns and the credit side of the balance sheet columns.
c. Debit side of both the Income statement and the balance sheet columns
d. Credit side of both the Income statement and the balance sheet columns
Question 7
Cormack purchased merchandise with an Invoice price of P60,000 from the Murray. Murray
offers its customers credit terms of 2/10, n/30. What amount should Cormack pay if the
cash discounts is taken?
a. P61,200
b. P60,600
c. P59,400
d. P58,800
Question 8
A firm that uses special journals acquired merchandise for P5,000, giving a P5,000 note
payable. In which would the transaction be recorded?
a. Cash disbursement journal

b. Cash receipts journal
c. General journal
d. Purchase journal
Question 9
Winston started business on Jan. 1. During the year, the company purchased merchandise
with an invoice price of P5,000,000. Winston paid P200,000 freight on the merchandise.
During the year, Winston returned P800,000 of the merchandise to its suppliers. All
purchases were paid for in a timely manner, and a P100,000 cash discount was taken.
P4,180,000 of the merchandise was sold for P6,270,000. What was the Dec. 31 balance in
the inventory account?
a. P20,000
b. P120,000
c. P320,000
d. P820,000
Question 10
Which of the following pairs of accounts would not appear in the same adjusting entry?
a. Service Revenues and Unearned Revenues

b. Interest Revenues and Interest Payable
c. Services Revenues and Accounts Receivable
d. Rent Expense and Rent Payable
Question 11
When “direct extension method” is used in showing inventories in the worksheet, the MDSE
inventory, end is extended to:
a. debit, income statement and debit, balance sheet

b. credit, income statement and credit balance sheet
c. credit, Income statement and debit, balance sheet
d. debit, balance sheet and credit balance sheet
Question 12
Suppose the opening of machinery account is a debit balance of P100,000. Within this
month, there is an acquisition of machinery amounting to P400,000. Also, there is a sales
of machinery to the sole proprietor at the cost price of P20,000. What is the opening
balance of the machinery account the next month?
a. Credit balance of P500,000

b. Debit balance of P500,000
c. Credit balance of P480,000
d. Debit balance of P480,000
Question 13
Failure to adjust for accrued salaries at the end of the period will result in an;
a. Understatement of profit for the period

b. Overstatement of profit for the period
c. Overstatement of liabilities
d. Overstatement of assets
Question 14
Which of the following accounts is not closed during the closing process?
a. owner’s withdrawals
b. commissions revenues
c. income summary
d. owner’s capital
Question 15
Which of the following comes last in the accounting process?
a. Journalizing external transactions

b. Preparation of a post-closing trial balance.
c. Worksheet Preparation
d. Preparation of an adjusted trial balance
Question 16
UFO Store received cash from Lindsey Company in settlement of Lindsey’s account.
Lindsey bought goods with a list price of P120,000 on August 1, 2021 terms: less: 15%,
less 5%; 4/15, n/30. Lindsey settled this account in full on August 12, 2021. How much is
the invoice price of goods bought on August 1, 2021?
a. P102,000
b. P96,000
c. P93,024
d. P96,900
Question 17
Daisy Dangayo will rent a warehouse from 3J Realty from May 1, 2020 to April 30, 2022. On
April 1, 2020, Daisy Dangayo paid P360,000. It included a cleaning fee of P10,000, two
months’ rent and a rental deposit amounting to three months’ rent. What should be the
related rental expense recorded on the income statement for the year ended Mar. 31,
2021?
a. P980,000
b. P770,000
c. P792,000
d. P840,000
Question 18
Which of the following accounts will appear on the post-closing trial balance?
a. service revenues
b. building
c. depreciation expense-building
d. owner’s withdrawals
Question 19
Which of the following is a correct definition of gross profit?
a. Gross Profit = Net Sales – Cost of Good Sold

b. Gross Profit = Net Sales – Net Purchases
c. Gross Profit=Net Purchases + Cost of Good Sold
d. Gross Profit = Profit – Other Expenses
Question 20
An entry debit cash and credit loans payable would likely be recorded in what journal?
a. Sales journal
c. Purchase journal
d. Cash disbursement journal
Question 21
Besobeso company paid the salaries of the employees for the first half of the month
amounting to P233,500 net of the following: SSS employees contribution of P6,300; Phil
health employees contribution of P5,500 and withholding tax of P1,200. How much is the
“salaries expense” account to be debited;
a. P233,500
b. P220,500
c. P250,000
d. P246,500
Question 22
Justice League Company bought a machinery on January 3 of this year for P200,000. At
the time of purchase, the equipment was estimated to have a useful life of 5 years without
a salvage value. At the end of its life what is the book value of the machinery assuming the
company use the straight line method of computing depreciation?
a. P-0-
b. P160,000
c. P120,000
d. P40,000
Question 23
A special journal that contained columns for cash, purchase discount, accounts payable,
expenses and other payables is;
a. Cash receipts journal

b. general journal
c. sales journal
d. Cash disbursement journal
Question 24
The carrying value of a depreciable asset equals;
a. The estimated amount for which the asset could be sold.

b. The estimates cost to replace the asset
c. The original cost minus accumulated depreciation
d. The original cost minus depreciation expense for the current period
Question 25
The following information needed in the computation of doubtful accounts

expense for 2020 for Barkeley Company:
Total sales for the year P 8,085,000
Total cash sales for the year 3,480,000
Balance of the allowance for doubtful account previous year is P 45,000.
If the allowance is based on 4% of credit sales, what
would be the balance of the
allowance for doubtful account after adjustment?
a. P140,000
b. P229,200
c. P184,200
d.
P94,200

Question 26
On Nov. 15, 2021, cash is received for services to be rendered and is credited to unearned
revenues. Assuming that the services have been performed in Dec. 31, 2021, the adjusting
entry would be a debit to;
a. Cash and credit to Service Revenues

b. Service Revenues and credit to Accounts Receivable
c. Unearned Revenues and a credit to Cash
d. Unearned Revenues and a credit to Service Revenues
Question 27
If the last item on a trial

balance reads “OWNER’S EQUITY”, this
must be the:
a. unadjusted trial balance
b. post-closing trial
balance
c. reversed trial balance
d. adjusted trial balance

Question 28
Closing entries ultimately will affect:
a. the owner’s capital account

b. the cash account
c. total liabilities
d. total assets
Question 29
Office Supplies were P9,000 at the end of January and P11,400 at the end of February.
During February, Office supplies Expense equaled P3,000. How much cash was paid for
office supplies during February?
a. P5,400
b. P17,400
c. P2,400
d. P14,400
Question 30
On Aug. 3, 2020 Mulles data encoders billed Davao City Multi Coop for the services
rendered for the month of July amounting to P25,330. On Aug. 10, 2020 received cash of
P10,000 as partial payment of Davao City Multi Coop. The entry to record the transactions
would include;
a. A credit to accounts receivable of P15,330 on Aug. 10, 2020

b. a debit to accounts receivable of P15,330 on Aug. 3, 2020
c. A debit to service income of P25,330 on July 31, 2020
d. a credit to accounts receivable of P10,000 on Aug. 10, 2020
Question 31
The entry to record a payment on a P15,000 account within the 2% discount period would
include
a. Debit to Cash for P15,000

b. Credit to Purchase discounts for P300.
c. Debit to Accounts Payable for P14,700
d. Credit to Accounts Payable for P15,000.
Question 32
Failure to record the entry for accrued interest on notes receivable results in;
a. Total assets being overstated.

b. Interest payable being overstated.
c. Net Profit being understated.
d. Interest expense being understated.
Question 33
A law firm began in November with office supplies of P16,000. During the month, the firm
purchased supplies of P29,000. On November 30, supplies on hand totaled P21,000.
Supplies expense for the period should be;
a. P29,000
b. P24,000
c. P45,000
d. P21,000
Question 34
Raven Company
has the following accounts in the statement of financial position on June
30,
2020.
Accounts
Receivable P800,000
Allowance
for doubtful accounts ( 27,200)
Accounts
Receivable net P772,800

On June 30, the company receives notification from Simon Company (customer) that it
has filed
for bankruptcy. The controller of Raven Company decides to write-off Simon
Company’s account for P7,100. Which of the following statements is true?
a. Net
profit and net accounts receivable will decrease
b. Neither net profit nor net accounts receivable will decrease.
c.
No change will occur in net profit but net accounts receivable will decrease.

d.
Net profit will decrease but no change will occur in net accounts receivable

Question 35
In what book will this be recorded: Issued charge invoice to customers on credit.
a. Not given
c. General journal
d. Sales journal
Question 36
A P200,000 machine is purchased by Famous Company from Bright Corporation paying

P100,000 cash and promise to pay the balance after 30 days. In the books of Bright Corp.
the journal entry should include a:
a. credit to notes payable P100,000

b. Debit to Machinery P200,000
c. debit to Accounts ReceivableP100,00
d. debit to notes receivable of P100,000
Question 37
Self-Service Laundry Company received cash of P 19,250 from customers for the services
rendered on the first half of the month. The entry to record the transaction is:
a. debit cash of P19,250, and credit service income of P19,250

b. debit accounts receivable P19,250 and credit service income of P19,250
c. debit accounts receivable P19,250, and credit cash of P19,250.
d. debit cash of P19,250, and credit accounts receivable P19,250.
Question 38
If an equipment costing P1,200,000 has a depreciation of P80,000 per year what is the
estimated useful life?
a. 12 years
b. 15 years
c. 10 years
d. 5 years
Question 39
Coldy Company
report the following balances on Oct. 12, 2020 ;
Accounts Receivable P

56,345
Allowance for doubtful
accounts ( 2,145)
P 54,200
If an
account of P2,000 is written off on Oct. 15, what is the estimated realizable
value of
accounts receivable after the write off?
a. P51,345
b. P49,200
c. P54,200
d. P59,200
Question 40
The adjusted trial balance of Happy company on Dec. 31, 2021 included the following:
Purchases, P700,000; purchases returns and allowances, P30,000; transportation in,
P5,000; ending inventory was P93,000. What is the cost of goods sold for 2021?
a. P582,000
b. P522,000
c. P532,000
d. P572,000
Question 41
Assuming that net purchases was P1,200,000 during the year and that ending merchandise
inventory was P 270,000, cost of goods sold amounted to P1,130,000, how much is the
inventory beginning?
a. P320,000
b. P380,000
c. P 280,000
d.
P 200,000

Question 42
Daryl Company
estimates doubtful accounts based on the aging of accounts receivable.
Current(less
than 3 months) 800,000 98%
3-6
months past due 300,000 95 %
6-12
months past due 90,000 90%
more
than 12 months past due 10,000 50%
Total 1,200,000
At the beginning

of the year 2020, the Allowance for doubtful Account had a credit balance
of
P21,000. During the year, Daryl wrote-off specific worthless accounts
receivable valued
at P13,000. How much is the balance of the allowance for
doubtful accounts after
adjustment?
a. P53,000
b. P37,000
c. P66,000
d. P45,000
Question 43
Unearned
Rent of P 60,000 represents a 5 months rent collected in advance on Nov. 1,
2021,
P36,000 of the amount is still unearned, what is the adjusting entry on
12.31.2021?

a. Debit Credit
Unearned Rent P24,000 Rent Income P24,000

b. Debit Credit
Rent Income P36,000 Unearned Rent P36,000
c. Debit Credit
Rent Income P60,000 Unearned Rent 60,000
d. Debit Credit
Rent Income P24,000 Unearned Rent P24,000

Question 44
Which of the following is a revenue?
a. The entity collected cash from customer for services rendered previous month
b. The entity received cash for sale of merchandise.
c. The entity received cash as proceeds of the loan.
d. The entity collected cash from owner as initial investment.
Question 45
In what book will this be recorded: Issued a check to an employee in payment for his/her
salaries.
a. Purchases journal
b. Payroll journal
c. General journal
d. Cash disbursements journal
Question 46
In preparing closing entries, which of the following columns of the worksheet are the most
helpful?
a. Balance Sheet Columns

b. Income Statement Columns
c. Adjustments columns
d. Adjusted trial balance columns
Question 47
Lorelei Corpuz entered into a one-year tenancy contract from March 1, 2020 to Feb. 28,
2021. The monthly rental was P90,000. For the year ended Dec. 31, 2020, Lorelei Corpuz
paid P1,080,000 for the contract and recorded it as rental expenses. The profit for the year
ended Dec. 31, 2020 was __________?
a. Overstated by P180,000
b. Overstated by P900,000
c. Understated by P180,000
d. Understated by P900,000
Question 48
The accounts receivable ledger showed a debit posting of P520,000, and a credit posting
of P250,000, if the balance of the accounts receivable account is P320,000 how much is
the beginning balance of Accounts Receivable?
a. P60,000
b. P70,000
c. P80,000
d. P50,000
Question 49
Suppose an entity recorded an expense when it was paid, but the expense was incurred or
happened one year before the payment date. Which of the following accounting principles
has been violated?
a. Historical cost concept

b. Accrual concept
c. Entity concept
d. Consistency concept
Question 50
Collection of Accounts Receivable amounting to P10,000 was recorded as debit Accounts

Receivable and credit cash of the same amount. To correct this entry, the entry should be:
a. Debit Cash P20,000; credit Accounts Receivable P20,000

b. Debit Accounts Receivable P10,000; credit Service Revenues P10,000
c. Debit cash P10,000; credit Accounts Receivable P10,000
d. Debit Accounts Receivable P20,000; Credit Service Revenues P20,000
Question 51
PasarCo enterprise paid a one-year insurance premium which would take effect from Aug.
1, 2020 to Aug 1, 2021 for P36,000. The entity uses the expense approach in recording the
transaction. The entry to record adjustment at the end of Dec. 31, 2020 includes;
a. a credit to Prepaid Insurance of P15,000

b. a debit to Insurance Expense of P15,000
c. debit to Insurance Expense of P 21,000
d. debit to Prepaid insurance of P21,000
Question 52
What function do general ledgers serve in the accounting process?
a. Reporting
b. Classifying
c. Summarizing
d. Recording
Question 53
All of the following would appear in the worksheet that uses periodic system of recording
inventory except;
a. Cost of Goods Sold

b. Income Summary
c. Sales discount
d. Purchase returns and allow
Question 54
Luis began the period with P200,000 in inventory. The entity purchased an additional
P200,000 of inventory and returned P20,000 for a full credit. A physical count of the
inventory at year-end revealed an inventory on hand of P160,000. What was Luis’ costs of
goods sold for the period?
a. P500,000
b. P480,000
c. P160,000
d. P220,000
Question 55
If a trial balance were to be prepared on the first day of the new year, and the account
Salaries expense had a credit balance, you would know that;
a. A reversing entry has been made.

b. The trial balance is a post-closing trial balance.
c. The trial balance is an adjusted trial balance
d. The adjusting entries have been recorded
Question 56
On the completed worksheet, if the total of the credit column of the income statement is
P4,500,000 and the debit has a total of P5,000,000 in which column is the difference of
P500,000 appears?
a. Debit side of the income statement and credit side of the balance sheet.
b. Debit side of the income statement and debit side of the balance sheet
c. Credit side of the income statement and debit side of the balance sheet
d. Debit side of the income statement and debit side of the balance sheet
Question 57
If a P2,500 adjustment for depreciation is omitted, which of the

following financial
statement errors will occur?

a. Profit will be understated
b. Owner’s equity will be overstated
c.
Expenses will be overstated

d. Assets will be
understated
Question 58
The controlling account in the general ledger that summarizes the individual accounts with
creditors in a subsidiary ledger is called;
a. Accounts receivable
b. Purchases
c. Sales returns and allowances
d. Accounts payable
Question 59
Salaries Payable were P3,500 at the end of September and P2,800 at the end of October.
Salaries Expense for October was P18,000. How much cash was paid for salaries during
October?
a. P11,700
b. P24,100
c. P17,300
d. P18,700
Question 60
Gryfindor company sells P 3,000 of equipment to Slytherin company on credit. The

purchase is not regarded as goods for Slytherin but instead it is for office use. Slytherin will
enter the transaction in the journal with a :
a. Debit to equipment and credit to accounts payable

b. Credit to cash and a debit to equipment
c. Debit to accounts receivable and credit to sales
d. Debit to Equipment and credit to accounts receivable
Question 61
Company X offers the following discounts: Trade discounts of 10% at list price and another
cash discount of 5% if paid in full before the due date. How much is to be paid if a
customer pays before due date at a list price of P20,000?
a. P13,680
b. P18,000
c. P15,520
d. P17,100
Question 62
Accounts payable ledger showed a debit posting of P 180,000 and a credit posting of
P320,000. If the balance of the accounts payable account is P 210,000 what is missing in
the ledger?
a. The posting on the right side of the ledger decreases the balance of the account
b. The posting on the left side of the ledger lacks P70,000
c. The beginning accounts payable was not posted amounting to P120,000
d. The beginning accounts payable was not posted amounting to P70,000.
Question 63
Which of the following accounts could not be credited in an adjusting entry?
a. Prepaid Rent
b. Office Supplies
c. Interest Receivable
d. Service Revenues
Question 64
Which of the following transactions results in an increase of expenses?
a. Payment on accounts Payable

b. Repayment of principal of bank loan
c. Purchase of office equipment on credit
d. Cost of employee salaries
Question 65
The
following information needed in the computation of doubtful accounts
expense
for 2020 for Barkeley Company:
Total sales for the year P 8,085,000
Total cash
sales for the year 3,480,000
Balance of the allowance for
doubtful account previous year is P 45,000.
If the allowance is based on 4%
of credit sales, how much is the amount of
doubtful account expense that would
be recognized at year-end?

a. P184,200
b. P139,200
c.
P94,200

d. P 140,000
Question 66
Suppose XYZ Trading has completed the following

transactions in September 2020.
1.
Sales of goods of P10,000 to Company A on credit
2.
Purchase of goods of P20,000 from Company B on credit
3.
Purchase of goods of P25,000 from Company C on credit
4.
Sales of office-use computer of P10,000 to Company D
on credit

Which of the
following shows the correct journal entry for transaction 1?
a. Debit accounts receivable and credit sales
b. Debit accounts payable and credit sales
c. Debit Cash and credit Sales
d. Debit sales and credit Accounts Receivable
Question 67
Which of the following account could appear in an adjusting entry, closing entry and
reversing entry?
Select one:
a. Salaries Payable
b. Depreciation Expense-Bldg.
c. Accumulated Depreciation-Buildings
d. Interest Income
Question 68
When an entity borrowed money from the bank, it is an increase to:
a. Cash and Notes Payable

b. Cash and Accounts Receivable.
c. Cash and Accounts Payable
d. Cash and Capital
Question 69
When a trading concern earn an operating profit equal to zero, which of the following
situation is present?
a. Net sales equals cost of sales.

b. Operating expenses equals net sales.
c. Cost of sales equals gross margin.
d. Gross margin equals operating expenses
Question 70
FEM Home Plaza purchased appliances which are intended for resale worth P500,000 and
got a trade discount of P14,000. The Bookkeeper should:
a. Debit the purchase discount for P 14,000 and credit the accounts payable for P486,000
b. debit the purchase discount for P 14,000 and debit purchases for P486,000.
c. debit the purchases for P 500,000
d. debit the purchases for P 486,000.
Question 71
Unused Supplies is normally extended to:
a. balance sheet, debit column

b. income statement, debit column
c. balance sheet, credit column
d. income statement, credit column
Question 72
Salaries
payable is normally extended to:
a. income statement, debit column

b. balance sheet, credit column
c. income
statement, credit column
d. balance sheet, debit column

Question 73
If operating income is P135,000; cost of sales is 70% of net sales; net sales is P1,200,000;
how much is the operating expenses
a. P214,500
b. P120,500
c. P225,000
d. P159,500
Question 74
Assuming that the net purchases was P900,000 during the year and that ending
merchandise inventory was P20,000 less than the beginning merchandise inventory of
P250,000, how much was the cost of good sold?
a. P1,170,000
b. P670,000
c. P920,000
d. P1,130,000
Question 75
If a P4,700 cash purchase of supplies is recorded as a P5,700 debit to Supplies Expense

and a P5,700 credit to Cash, the result will be that.
a. The Cash account will be overstated.

b. The Supplies Expense account will be understated.
c. The trial balance will be out of balance.
d. Supplies Expense will be overstated
Question 76
Kareen Leon paid P5,000 for the repair of service vehicle. This transaction is recorded by:
a. a debit to cash and credit to service income of P5,000

b. a debit to repairs and maintenance and credit to cash P5,000
c. a debit to accounts receivable and credit to service income of P5,000
d. a debit to service vehicle and credit to cash of P5,000
Question 77
The financial year of Divina Cayabyab ends on December 31, each year. On May 30, 2020,
Divina Cayabyab received an annual service fee of P600,000 from a client for a service
commencing on June 1. On Dec. 31, 2020, __________.
a. P250,000 should be treated as revenue.

b. P350,000 should be treated as unearned revenues
c. P600,000 should be treated as unearned revenues
d. P250,000 should be treated as unearned revenues
Question 78
If net sales is P 2,090,000; gross profit is P770,000; cost of goods available for sale is P
2,100,000; how much is the inventory end?
a. P1,850,000
b. P530,000
c. P780,000
d. P770,000
Question 79
ABC Company sold 10 units of goods with a unit list price of P2,000 on Jan. 1, 2022. Given
that the trade discount is 5% and the cash discount is 10% and that the cash discount
period is 10 days and the credit period is 30 days. If the customer settles the debt on Jan.
28, 2022, what is the actual amount he needs to pay?
a. P1,710
b. P1,900
c. P17,100
d. P19,000
Question 80
Suppose XYZ
Trading has completed the following transactions in September 2020.
1.
Sales of goods
of P10,000 to Company A on credit
2.
Purchase of
goods of P20,000 from Company B on credit
3.
Purchase of
goods of P25,000 from Company C on credit
4.
Sales of
office-use computer of P10,000 to Company D on credit
What
is the total amount recorded in the sales account for this month?
a. P20,000
b. P55,000
c.
P10,000

d. P65,000
◄ consultation session
Jump to...
final instruction ACC 111 competency assessment (3) ►
R E V IE W MAT E R IAL S AC C 111
1. When an entity borrowed money from the bank, what is the effect on assets and liability?
ANS: Increase in Cash and Increase in Notes Payable
2. Suppose LMN Trading has completed the following transactions in September 2021.
1. Sales of goods of P50,000 to Company A in cash
2. Purchase of goods of P20,000 from Company B in cash
3. Purchase of goods of P25,000 from Company C on credit
4. Sales of office-use fully depreciated computer costing P25,000, sold for of P4,000 to
Company D in cash.
What is the correct entry in transaction no. 1, 2, 3 & 4?

Cash 50,000
Sales 50,000
Purchases 20,000
Cash 20,000
Purchases 25,000
Accounts Payable 25,000
Cash 4,000
Accumulated depreciation 25,000
Office Equipment 25,000
Gain on sale of Office Equipment 4,000
How much is the amount of sales to be recognized? 50,000
3. If a P10,000 adjustment for depreciation is omitted, what is the effect on asset, net income and
owner’s equity?
Ans: Asset is overstated; net income is overstated and owner’s equity is overstated
4. On Nov. 30, 2021, cash is received for services to be rendered and is credited to service revenues.
Assuming that the services is performed in Jan. 31, 2022 (next accounting period) , what is the
adjusting entry? Ans: Debit Service Revenues and credit unearned services revenues.
5. If the company failed to adjust for accrued salaries at the end of the period what is the effect on
net income and liabilities? Ans: Net income or profit will be overstated and liabilities will be
understated.
6. If the company failed to recognize accrued interest on notes receivable what is the effect on net
income and asset? Ans: Net income or profit will be understated and assets is also understated.
7. Net Sales minus cost of sales equals ________ (Ans. Gross Profit)
8. What account that is ultimately affected in closing entries? Ans: owner’s capital account
9. What accounts that is normally retained in the post-closing trial balance? Ans: Assets, liabilities &
OE
10. What special journal that contained columns for cash, purchase discount, accounts payable,
expenses and other payables? Ans: Cash Disbursement Journal
11. An entry debit cash and credit loans payable would likely be recorded in what journal? Ans: Cash
receipts Journal
12. In what book will this be recorded: Issued a check to an employee in payment for his/her
salaries.
a. General journal c. Purchases journal
b. Cash disbursements journal d. Payroll journal
13. A firm that uses special journals acquired merchandise for P25,000, giving a P25,000 note
payable. In which would the transaction be recorded? Ans: Purchase Journal
14. The controlling account in the general ledger that summarizes the individual accounts with
creditors in a subsidiary ledger is called; Ans: Accounts Payable
15. When a trading concern earn an operating profit equal to zero, this means that ____ (Ans: gross
profit is equal to operating expenses)
PROBLEM SOLVING
16. Grab company paid the salaries of the employees for the first half of the month amounting to
P246,500 less of the following: SSS employees contribution of P6,300; Phil health employees
contribution of P5,500 and withholding tax of P1,200. How much is the amount of salaries to be
paid to employees? Ans: P233,500
17. Reliable Laundry received cash of P 19,250 from customers for the services rendered last month.
The entry to record the transaction is: Ans: Debit cash of P19,250 and credit A/R of P19,250
18. On Aug. 3, 2021 ABC data encoders billed Davao Multi Coop for the services rendered for the
month of July amounting to P25,330. On Aug. 10, 2021 received cash of P10,000 as partial
payment of Davao Multi Coop. a.) What is the correct entry on Aug. 3, 2021? B) What is the
correct entry on Aug. 10, 2021?
Ans: a) Aug. 3, 2021= Debit A/R P25,330 and credit Service Income P25,330
b) Aug. 10, 2021=Debit Cash P10,000 and Credit A/R P10,000
19. Collection of Accounts Receivable amounting to P5,000 was recorded as debit Accounts
Receivable and credit cash of the same amount. What is the correct entry? Ans: Debit cash
P10,000; credit A/R P10,000
20. If a P7,500 cash purchase of supplies is recorded as a P5,700 debit to Supplies Expense and a
P5,700 credit to Cash, what is the effect on cash and expense?
Ans: Cash will be overstated and expense will be understated
21. Shoppee company sells P 3,000 of equipment to Lazada company on credit. The purchase is not
regarded as goods for Lazada but instead it is for office use. Shoppee will enter the transaction
in the journal with a :
Ans: Debit to accounts receivable and credit to sales
22. A P200,000 machine is purchased by Enjoy Company from Happy Corporation paying P100,000
cash and issued a 30-day note for the balance. In the books of Happy Corp. the journal entry is:
Ans: Debit cash P100,000; debit notes receivable P100,000; credit sales P200,000
23. ELM Home Plaza purchased appliances which are intended for resale worth P500,000 and got a
trade discount of 5%. How much purchases should ELM recognize? Ans: P475,000
24. What is the entry to record a payment of P15,000 account within the 2% discount period?
Ans: Debit A/P P15,000; credit Purchase discount P300 and credit cash P14,700
25. Suppose the opening of machinery account is a debit balance of P200,000. Within this month,
there is an acquisition of machinery amounting to P500,000. Also, there is a sales of machinery
to the sole proprietor at the cost price of P80,000. How much is the balance of the machinery
account to be forwarded in the next month? Ans: P620,000
26. Office Supplies were P5,000 at the end of January and P13,200 at the end of February. During
February, Office supplies Expense equaled P6,200. How much cash was paid for office supplies
during February?
Ans: P14,400
27. Salaries Payable were P4,000 at the end of September and P5,200 at the end of October. Salaries
Expense for October was P18,500. How much cash was paid for salaries during October? Ans:
P17,300
Cash paid in October for salaries are as follows:
Salaries Payable in Sept. of P4,000
Add: Salaries of Oct. paid in Oct. 13,300 (18,500-5,200)
Total amount of salaries paid. 17,300
28. BrightCo enterprise paid a one-year insurance premium which would take effect from Aug. 1,
2020 to Aug 1, 2021 for P48,000. The entity uses the expense approach in recording the
transaction. What is the adjusting entry on Dec. 31, 2021?
Ans: Debit Prepaid Insurance P28,000; Credit Insurance Expense P28,000
29. Rent Income of P 60,000 represents a 5 months’ rent collected in advance on Nov. 1, 2021,
P36,000 of the amount is still unearned, what is the adjusting entry on 12.31.2021?
Ans : debit Rent Income P36,000; credit Unearned Rent P36,000
The following information needed in the computation of doubtful accounts expense for 2020 for
Barker Company:
Total credit sales for the year P 3,500,000

Total cash sales for the year 3,480,000
Balance of the allowance for doubtful account previous year is P 45,000.
30. If the allowance is based on 4% of credit sales, how much is the amount of doubtful account
expense that would be recognized at year end? Ans:P3,500,000 x .04= P140,000
31. Using the data in no. 30, what would be the balance of the allowance for doubtful account after
adjustment? Ans: P185,000
32. Matalino Company bought a machinery on January 3 of this year for P1,200,000. At the time of
purchase, the equipment was estimated to have a useful life of 5 years without a salvage value.
At the end of its life what is the book value of the machinery assuming the company use the
straight line method of computing depreciation? Ans: ZERO
If the machinery has a salvage value of P50,000, what is the carrying value at the end of its life?
Ans: P50,000
33. If an equipment costing P200,000 has a depreciation of P40,000 per year what is the estimated
useful life? Ans: 5 years (P200,000/40,000)
34. Heaven Company has the following accounts in the statement of financial position on June 30,
2021.
Accounts Receivable P800,000

Allowance for doubtful accounts ( 27,200)
Accounts Receivable net P772,800
On June 30, the company receives notification from Simon Company (customer) that it has filed
for bankruptcy. The controller of Heaven Company decides to write-off Simon Company’s
account for P7,100. How much is the net realizable value of the A/R after the write-off? Ans:
P772,800
35. Daryl Company estimates doubtful accounts based on the aging of accounts receivable.
Current(less than 3 months) 800,000 98%
3-6 months past due 300,000 96 %
6-12 months past due 90,000 93%
more than 12 months past
due 10,000 60%
Total 1,200,000
At the beginning of the year 2020, the Allowance for doubtful Account had a credit balance of
P31,000. During the year, Daryl wrote-off specific worthless accounts receivable valued at
P21,000. How much is the balance of the allowance for doubtful accounts after adjustment?
Ans:P40,300
36. Using the data in No. 35, how much doubtful account expense will the company is going to set
up so that the allowance for doubtful account will equal to the required balance? Ans: P30,300
37. The financial year of Dina Cadaug ends on December 31, each year. On May 30, 2021, Dina
Cadaug received an annual service fee of P720,000 from a client for a service commencing on
June 1. If Dina uses the liability approach in recording deferred income what is the adjusting
entry on Dec. 31, 2021?
Ans: Debit Unearned Service Income P420,000; credit Service Income P420,000.
38. At the beginning of the financial year, EFG Company paid a 3-year insurance premium of
P360,000. At the end of the financial year, how much of the premium paid is recognize as
expense and how much is the asset? Ans: Insurance expense is P120,000; Prepaid Insurance is
P240,000.
39. QRS company will rent a warehouse from Josie Realty from May 1, 2020 to April 30, 2022 (2
years). On April 1, 2020, QRS paid P260,000. It included a cleaning fee of P10,000, two months’
rent and a rental deposit amounting to three months’ rent. How much is the monthly rental? Ans:
P50,000/month
(P260,000 – P10,000= 250,000/5 = P50,000
How much rental expense should reported on the Income Statement of QRS for year ended
March 31, 2021? Ans: P50,000 x 11 months (May 1, 2020 to March 31, 2021)=P550,000
40. A law firm began in November with office supplies of P10,000. During the month, the firm
purchased supplies of P25,000. On November 30, supplies on hand totaled P6,000. Supplies
expense for the period should be; Ans: P29,000
41. The adjusted trial balance of Joyful company on Dec. 31, 2021 included the following:
Purchases, P650,000; purchases returns and allowances, P30,000; transportation in, P5,000;
ending inventory was P93,000. What is the cost of goods sold for 2021? Ans: P532,000
42. Assuming that net purchases was P1,080,000 during the year and that ending merchandise
inventory was P 270,000, cost of goods sold amounted to P1,130,000, how much is the inventory
beginning?
Ans: P320,000
43. If net sales is P 2,090,000; gross profit is P520,000; cost of goods available for sale is P
2,100,000; how much is the inventory end? Ans: P530,000
44. If operating income is P135,000; cost of sales is 70% of net sales; net sales is P1,165,000; how
much is the operating expenses? Ans: P214,500
45. Lily Corpuz entered into a one-year tenancy contract from March 1, 2020 to Feb. 28, 2021. The
monthly rental was P70,000. For the year ended Dec. 31, 2020, Lily Corpuz paid P840,000 for the
contract and recorded it as rental expenses. If Lily fail to make adjusting entry at the end of Dec.
31, 2020 (end of the accounting period) what is the effect on the net profit ? Ans: Profit is
understated by P140,000
46. On March 1, Vicky purchased merchandise with an invoice price of P260,000 and 2/10, n/30
terms. On March 3, Vicky paid P10,000 transportation cost on the purchased goods. On March
10, Vicky paid for the merchandise. What was Vicky’s total cost of the purchased merchandise?
Ans: P264,800
47. Willy started business on Jan. 1. During the year, the company purchased merchandise with an
invoice price of P5,200,000. Willy paid P200,000 freight on the merchandise. During the year,
Willy returned P800,000 of the merchandise to its suppliers. All purchases were paid for in a
timely manner, and a P100,000 cash discount was taken. P4,180,000 of the merchandise was
sold for P6,270,000. What was the Dec. 31 balance in the inventory account? Ans: P320,000
48. Luy began the period with P200,000 in inventory. The entity purchased an additional P460,000 of
inventory and returned P20,000 for a full credit. A physical count of the inventory at year-end
revealed an inventory on hand of P160,000. What was Luis’ costs of goods sold for the period?
Ans: P480,000
49. XYZ Company sold 10 units of goods with a unit list price of P2,000 on Jan. 1, 2022. Given that
the trade discount is 5% and the cash discount is 10% and that the cash discount period is 10
days and the credit period is 30 days. If the customer settles the debt on Jan. 10, 2022, what is
the actual amount XYZ needs to pay? Ans: P17,100. What if XYZ pays on Jan. 28, 2022 then the
amount to paid should be P19,000.
50. Assuming that the net purchases was P650,000 during the year and that ending merchandise
inventory was P20,000 less than the beginning merchandise inventory of P250,000, how much
was the cost of good sold? Ans: P670,000
51. EBG Store received cash from Bon Enterprise in settlement of Bon’s account. Bon bought goods
with a list price of P150,000 on August 1, 2021 terms: less: 15%, less 5%; 4/15, n/30. Bon settled
this account in full on August 12, 2021. How much is the invoice price of goods bought on
August 1, 2021?
Ans: P121,125
How much should EBG collect from Bon on Aug. 12, 2021? Ans: P116,280
52. Company X offers the following discounts: Trade discounts of 10% at list price and another cash
discount of 5% if paid in full before the due date. How much is to be paid if a customer pays
before due date at a list price of P30,000? Ans. P25,650

Dean&#39;s Exam Reviewer

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Dean&#39;s Exam Reviewer

Uploaded by

Copyright:

Available Formats

6/6/22, 1:52 PM FINAL EXAM: Attempt review

Home / My Courses / ACC111_6316_2021-2022_2NDSEM-SEM_CAE / FINAL EXAM / FINAL EXAM

Started on Saturday, May 21, 2022, 8:00 AM

Current(less than 3 months) 800,000 98%

3-6 months past due 300,000 95 %

6-12 months past due 90,000 90%

more than 12 months past due 10,000 50%

a. P480,000 should be treated as expenses

Which of the following items would be recorded in the purchase journal?

a. Equipment purchased on account

a. Owner’s drawing account

a. Cash disbursement journal

a. Service Revenues and Unearned Revenues

a. debit, income statement and debit, balance sheet

a. Credit balance of P500,000

a. Understatement of profit for the period

Which of the following comes last in the accounting process?

a. Journalizing external transactions

Which of the following is a correct definition of gross profit?

a. Gross Profit = Net Sales – Cost of Good Sold

a. Cash receipts journal

The carrying value of a depreciable asset equals;

a. The estimated amount for which the asset could be sold.

The following information needed in the computation of doubtful accounts

a. Cash and credit to Service Revenues

If the last item on a trial

a. unadjusted trial balance

c. reversed trial balance

d. adjusted trial balance

Closing entries ultimately will affect:

a. the owner’s capital account

a. A credit to accounts receivable of P15,330 on Aug. 10, 2020

a. Debit to Cash for P15,000

a. Total assets being overstated.

b. Neither net profit nor net accounts receivable will decrease.

A P200,000 machine is purchased by Famous Company from Bright Corporation paying

a. credit to notes payable P100,000

a. debit cash of P19,250, and credit service income of P19,250

Accounts Receivable P

At the beginning

Unearned Rent P24,000 Rent Income P24,000

Rent Income P36,000 Unearned Rent P36,000

Rent Income P60,000 Unearned Rent 60,000

Rent Income P24,000 Unearned Rent P24,000

Which of the following is a revenue?

a. Balance Sheet Columns

a. Historical cost concept

Collection of Accounts Receivable amounting to P10,000 was recorded as debit Accounts

a. Debit Cash P20,000; credit Accounts Receivable P20,000

a. a credit to Prepaid Insurance of P15,000

What function do general ledgers serve in the accounting process?

a. Cost of Goods Sold

a. A reversing entry has been made.

If a P2,500 adjustment for depreciation is omitted, which of the

a. Profit will be understated

b. Owner’s equity will be overstated

Gryfindor company sells P 3,000 of equipment to Slytherin company on credit. The

a. Debit to equipment and credit to accounts payable

Which of the following accounts could not be credited in an adjusting entry?

Which of the following transactions results in an increase of expenses?

a. Payment on accounts Payable

Suppose XYZ Trading has completed the following

a. Debit accounts receivable and credit sales

b. Debit accounts payable and credit sales

Dean's Exam Reviewer

Dean's Exam Reviewer