Quiz #1

Solutions to Problem Solving

Set A
1 Accounting Revenues ₱ 900,000
Interest Income 2,000 ₱ 902,000
Transporation Expenses ₱ 130,000
Supplies Expense 70,000
Salaries Expense 305,000
Rent Expense 117,000
Utilities Expense 165,000 - 787,000
Net income ₱ 115,000

2 Capital, Beg ₱ 230,000

Additonal Investment 223,000
Net income 460,000
Owners Drawing - 102,000
Capital, End ₱ 811,000

3 Accounts Receivable ₱ 12,500

Cash 27,000
Office Furniture 42,250
Total assets ₱ 81,750

4 Accounts Receivable ₱ 57,000

Cash 66,000
Office Supplies 14,000
Prepaid Expense 23,000
Current assets ₱ 160,000

5 Accounts Payable ₱ 27,130

Salaries and Wages Payable 25,140
Unearned Service Income 85,150
Current liabilities ₱ 137,420

6 Current assets ₱ 200,000

Non-current assets 700,000
Total assets ₱ 900,000
Equity, end - 300,000
Current liabilities - 150,000
Non-current liabilities ₱ 450,000

7 Revenue received in cash ₱ 80,000

Revenue on account 70,000
Revenues ₱ 150,000
 8 Rent Expense ₱ 110,000
Salaries Expense 196,000
Electricity Expense 124,500
Expenses ₱ 430,500

9 Increase in Capital ₱ 168,000

Additional investment - 57,000
Withdrawal 43,000 at original cost
Net income ₱ 154,000

Proof:
Net income ₱ 154,000
Additional investment 57,000
Withdrawal - 43,000
Increase in Capital ₱ 168,000

Note: The expense is a dummy variable.

10 Capital, End ₱ 430,000

Net income - 38,000
Additional investment - cash - 50,000
Additional investment - laptop - 20,000 at fair market value
Capital, Beg ₱ 322,000

11 Capital, Beg ₱ 120,000

Revenues 60,000
Expenses - 44,000
Drawings - 2,000 supplies
Capital, End ₱ 134,000

12 Assets Increased by ₱ 60,000

Liabilities decreased by 40,000
Increase in equity ₱ 100,000

Proof:
Acounting Equation A L OE
60,000 = - 40,000 + 100,000
60,000 = 60,000