1.

Arrange the following functions of ● A deposit for P 5,400 was

accounting in a sequential manner erroneously recorded by the
● recording bank as P 4,500
● interpreting
● Summarizing How much is the balance per book
● Classifying November 1?
- Recoding, classifying, summarizing, A. 72,073
interpreting/ google also B. 67,073
2. Merchandise with a list price of P C. 80,573
20,000 was purchased under the D. 61,613
terms 2/10, n/30 with trade discount 4. On December 1, 200D, Marimar, a
of 10% and 5%. How much is the lessee paid P 18,000 to XYZ
cost of purchases to be recorded? Company representing the rent for 3
A. 17,000 months. Rent income was credited
B. 16,758 on this date by XYZ Company.
C. 20,000
D. 17,100 net cash flow from investing
3. Based on the following reconciling activitiesIn the books of the lessor,
items between the bank balance and what amount should be recognized
the book balance on November 30 as liability on December 31, 200D,
of year of Rolex the current the end of the accounting period?
Company: A. 16,000
B. 3,000
● Balance per the bank C. 18,000
statement in November 1 D. 12,000/ Google also
showed the amount of P 5. What accounts will be reflected in
80,161 the post-closing trial balance?
● Deposits of P 5,460 made in A. Nominal accounts with
November 30 were not yet balances
reflected B. Real accounts with
● Checks issued but not yet balances/google also
paid amounted to P 12,148 C. All accounts with
● Bank collection of P 13,500 adjustment’video
was not recorded in the D. Real and nominal accounts
books with balances
● Bank service charges for the 6. If the unearned interest is credited
month amounted to P 1,200 in the adjusting entry, which of the
● A check deposited in the following will be affected?
amount of P 5,000 was A. a nominal account
marked by the B. a capital account
● DAIF (drawn against C. an asset account
insufficient fund) D. a liability account/google
7. On July 31, the end of the
accounting period of Jigi Company,
 the unadjusted trial balance showed 11. A statement which shows where the
supplies expenses with a balance of money of the business is obtained
P23,000. However, P 3,000 worth of and used.
supplies were still unused. A. Cash budget’video
B. Statement of Cash Flow
Give the adjusting entry. C. Statement of Financial
A. Supplies Inventory 20,000 Position
Supplies Expense 20,000 D. Statement of Revenues and
B. Supplies expense 3,000 Expenses
Supplies inventory 3,000 12. Which of the following is not a
C. Supplies Inventory 3,000 function of accounting?
Supplies Expense 3, 000 A. Budgeting
D. Supplies Expense 20,000 B. Reporting
Supplies T Inventory 20,000 C. Interpreting
8. Dated checks issued but not yet D. Bookkeeping
paid by the bank are called 13. The owner's equity is computed as
A. Dishonored checks follows:
B. Cancelled checks A. Cash inflows less cash
C. Outstanding checks outflows
D. Post dated checks B. Assets less liabilities
9. The exchange of goods or services C. Revenues less expenses
that results in mutual benefit for both D. Beginning capital plus net
parties involved. 14. This deals with the determination of
A. Servicing the fairness of the accounting
B. Trading reports and whether they are in
C. Sales accordance with the generally
D. Business accepted accounting principles.
10. On January 1 of the current year, A. Cost Accounting
the furniture account had a balance B. Auditing
of P 24,000 with accumulated C. Financial Accounting
depreciation of P 2,400. On May D. Management Accounting
additional furniture costing | 12,000 15. Which of the following transactions
was bought. The furniture is will result in the increase and
depreciated at the rate 10% per decrease in liability?
annum. A. Issued a promissory note in
payment of a liability.
What is the carrying amount (net B. Borrowed money from the
book value) of the furniture on bank.
December 31, the end of the C. Payment of loan by
accounting period? installment
A. 34,000 D. Request for an extension of
B. 32,400 the date of payment.
C. 33,000
D. 30,400
16. Which of the following adjusting of the same year, there were
entries need to be reversed in the accrued salaries of P 50,000.
following year?
A. Adjusting entry for the How much salaries should be
depreciation adjusted by the year-end?
B. Adjusting entries for the A. 100,000
accruals/google also B. 50,000
C. Adjusting entries are not C. 150,000
reversed D. Not given
D. Adjusting entry for the bad 20. Which of the following accounts is a
debts liability?
17. How many of the following A. Accrued Income
statements is/are FALSE? B. Prepaid expenses’video
● An increase in revenue is on the C. Accrued Expense/ google
credit side hence a decrease in also
expense is also on the credit side. D. Deferred expense
● A balanced trial balance means that 21. Dexter Company acquired a
the recording is free from errors. machine costing P 650,000 with an
● A simple entry has only one debit estimated useful life of 15 years with
and credit while a compound entry salvage value of P 50,000. The end
has two or more debits and credits. of the fiscal year is July 31 of the
● Tangible assets have values but current year.
intangible assets have no values.
A. 3 How much depreciation is to be
B. 4 charged on July 31 of the current
C. 1 year?
D. 2 A. P16,667
18. Which of the following errors cannot B. P 40,000
be detected by the trial balance? C. P 13,333
a. Incorrect accounts were used to D. P 36,667
record a given transaction. 22. Give the journal entry for the
b. Incorrect amounts were recorded following transaction. Received a
for a given transaction promissory note in payment of an
c. A journal entry was posted twice. account.
d. A journal entry was not posted to A. Notes Receivable. Notes
the general ledger. Payable
A. C&D B. Notes Receivable, Accounts
B. A&B Receivable
C. B&C C. Notes Payable, Notes
D. All of the letters Receivable
19. Delta Corporation has paid a total of D. Accounts Receivable, Notes
P 150,000 representing the salaries Receivable
of its employees for the calendar 23. On January 1 of the current year, the
year ended 200B. On December 31, furniture account had a balance of P
 24,000 with accumulated
depreciation of P 2,400. On May How much is the total of the debit
additional furniture costing P 12,000 balances?
was bought. The furniture is a. 236, 000
depreciated at the rate 10% per b. 114, 000
annum. c. 261, 000
d. 235, 000
What is the carrying amount (net
book value) of the furniture on 27. Based on the following information
December 31, the end of the provided By Max trading Company
accounting period? on December 31,200C, the end of its
A. 34,000 accounting period:
B. 32,400 Sales —--------------------------------- 780, 000
C. 33,000 Sales Returns and allowances — 15, 000
D. 30,400 Sales Discount —-------------------- 19, 000
24. The cost of office equipment less the Purchases —-------------------------- 420, 000
Freight In —---------------------------- 12, 000
accumulated depreciation is called
Purchase Returns & Allowances – 8, 000
A. Net realizable value
Purchase Discount —---------------- 2, 000
B. Liquidiation value Beginning Inventory —-------------- 50, 000
C. Amortized value Ending Inventory —---------------------- 80, 000
D. Carrying amount Operating Expenses —----------------- 120, 000
25. What accounts will be reflected in Other Income —-------------------------- 16, 000
the post-closing balance? Other Expenses —----------------------- 3, 000
a. Real and nominal accounts
with balances How much is the net income?
b. Real accounts with balances/ a. 372, 000
google also b. 354, 000
c. All accounts with balances c. 356, 000
d. Nominal accounts with d. 247, 000
balances
26. Based on the following selected 28. Which of the following journal entries
balances appearing in the trial can be eliminated?
balance of Midway Repair Company a. Correcting entry
as of December 31, 200D: b. Adjusting Entry
c. Opening Entry
Cash —------------------------------20 000 d. Closing Entry
Loan Payable —-------------------12 000
29. Based on the following recording
Office Equipment —---------------60 000
Unearned Rentals —-------------- 5 000
items between the bank balance and
Accrued Salaries —--------------- 25 000 the book balance on November 30
Meg Drawing —-------------------- 8 000 of the current year of Rolex
Repair Income —----------------- 123 000 Company:
Prepaid Advertising —------------- 10 000
● Balance per the bank statement in
Rent Expense —-------------------- 15 000
Meg Capital —---------------------- 135 000 November 1 showed the amount of
Accrued Interest Income —-------- 1 000 80, 161
 ● Deposits of 5, 460 made in
November 30 were not yet reflected How much are the total assets?
● Checks issued but not yet paid a. 171,500’leak
amounted to 12, 148 b. 181,500’video
● Bank collection of 13, 500 was not c. 176,500
recorded in the books d. 169,500
● Bank service charges for the month
amounted to 1,200 32. Based on the following post- closing
● A check deposited in the amount of trial balance of Rigodon Corporation
5,000was marked by the DAIF on June 30,the end of its fiscal year.
(drawn against insufficient fund)
● A deposit for 5, 400 was Notes payable —-------------25,000
erroneously recorded by the bank as Cash —-------------------------50,000
4,500 Unearned rental income —--5,000
Unused supplies—-----------1,500
How much is the balance per
Accounts receivable—-------12,000
book,November 1?
Allow. For bad debts—-------2,000
a. 61, 613
b. 72, 073 Accrued insurance expense—10,000
c. 67, 073 Office equipment —----80,000
d. 80, 573 Accum. Depreciation - office equip 8,000
30. This deals with the determination of Furniture—----------------40,000
the fairness of the accounting Accum. Depreciation - furniture – 2,000
reports and whether they are in
accordance with the generally How much are the total liabilities
accepted accounting principles. a. 40, 000
a. Cost accounting b. 25, 000
b. Management Accounting c. 35, 000
c. Auditing d. 30, 000
d. Financial Accounting 33. Assume that the term of shipment is
31. Based on the following post- closing FOB-Destination- Freight Collect.
trial balance of Rigodon Corporation Who should shoulder the freight and
on June 30,the end of its fiscal year. who will pay?
a. Should shoulder: Buyer &
Notes payable —-------------25,000 Will pay : Seller
Cash —-------------------------50,000 b. Should shoulder: Seller &
Unearned rental income —--5,000 Will pay: Buyer
Unused supplies—-----------1,500 c. Should Shoulder: Buyer &
Accounts receivable—-------12,000 Will pay : Buyer
Allow. For bad debts—-------2,000 d. Should Shoulder : Seller &
Will pay: Seller
Accrued insurance expense—10,000
Office equipment —----80,000
Accum. Depreciation - office equip 8,000 34.
Furniture—----------------40,000 CASH
Accum. Depreciation - furniture – 2,000 July 1 investment July 1 taxes &
 owner – 500000 licenses – 1,000 22 insurance – 4,000

3 cash sales– 82 000 2 Freight on the 30 salaries – 23,000

equipment — 2,000

13 loan — 200 000 4 rent expense – How much is the net cash flow from
5,000
financing activities?
15 collections of 7 cash purchases - a. 500,000’video
accounts —-42,000 25,000
b. 480,000
20 purchase returns - 9 salaries —- 21,000 c. 700,000
6,000
d. 680,000’leak
29 rental received – 11 drawing — 20,000
5,000
36. Assume that the term of Shipment is
30 cash sales – 12 sales returns – FOB-Shipping point- Freight
30,000 6,000
Prepaid. Who should shoulder the
31 sales of old 15 payment of freight and who will pay?
equipment — 3,000 account – 15,000
a. Should shoulder: Seller &
22 insurance – 4,000 Will pay : Seller
b. Should shoulder: Buyer &
30 salaries – 23,000
Will pay: Seller
c. Should Shoulder: Buyer &
How much is the net cash flow from Will pay : Buyer
operating activities? d. Should Shoulder : Seller &
a. 30, 000 Will pay: Buyer
b. 34, 000 37. Which of the following transactions
c. 65, 000 will result in the increase and
d. 28, 000 decrease in liability?
a. Payment of loan by
35. CASH installment.
July 1 investment July 1 taxes & b. Borrowed money from the
owner – 500000 licenses – 1,000
bank
3 cash sales– 82 000 2 Freight on the c. Issued a promissory note in
equipment — 2,000
payment of a liability
13 loan — 200 000 4 rent expense – d. Request for an extension of
5,000
the date of payment
15 collections of 7 cash purchases - 38. .Based on the following adjusted trial
accounts —-42,000 25,000
balance of Lyndon company on
20 purchase returns - 9 salaries —- 21,000 December31, 200C, the end of the
6,000
accounting period;
29 rental received – 11 drawing — 20,000
5,000 Cash —-----------------------------67,075
Note receivable —---------------70,000
30 cash sales – 12 sales returns –
30,000 6,000 accounts receivable —----------176,500
Allowance for bad debts—---------------------5,400(cr)
31 sales of old 15 payment of Merchandise inventory, jan.1 –60,900
equipment — 3,000 account – 15,000 Furniture & fixture —------------34,100
accumulated depreciation - furn. & fixt —-3,100 (cr)
Office equipment —-------- 15,500 Salaries expense —---- 99,550
accumulated depreciation - office equipt. – 1,500 (cr) Rent expense —----- 24, 000
Note payable —------------------20,000 (cr) Insurance expense —--- 5,250
Accounts payable —------- 94,750(cr) Office supplies expense – 2,200
Leonard capital —-------- 465,000(cr) Rental income —- 5,000
Leonard drawing —------ 9,500
Sales —--------- 527,875 (cr) Additional information : merchandise inventory,
Sales return —----- 11,000 december 31, 76,000
Sales discount —----- 6,400
Purchases —----- 390,750 How much is the ending Owner’s Equity?
Freight in —------ 5,415
a. 341,125
Purchase returns —---- 3,630 (cr)
Purchase discount —-- 6,885(cr)
b. 314,425
Salaries expense —---- 99,550 c. 344,425
Rent expense —----- 24, 000 d. 341,425
Insurance expense —--- 5,250
Office supplies expense – 2,200
40. Based on the following selected
Rental income —- 5,000
account balances appearing in the
Additional information : merchandise inventory, trial balances of Midway Repair
december 31, 76,000 Company As of December 31, 200D
Cash —---------------20,000
How much is the net income? Loan payable —---- 12,000
a. 53, 925 Office equipment—- 60,000
Unearned rentals — 5,000
b. 63, 975
Accrued salaries—- 25,000
c. 48, 925 meg drawing —-- 8,000
d. 58, 925 Repair income —- 123,000
39. Based on the following adjusted trial Prepaid advertising – 10,000
balance of Lyndon company on Rent expense —--- 15,000
Meg capital —---- 135,000
December31, 200C, the end of the
Accrued interest income — 1,000
accounting period;
How much is the total of the credit
Cash —-----------------------------67,075
balances?
Note receivable —---------------70,000
accounts receivable —----------176,500
a. 271, 000
Allowance for bad debts—---------------------5,400(cr) b. 296, 500
Merchandise inventory, jan.1 –60,900 c. 300,000
Furniture & fixture —------------34,100 d. 276, 000
accumulated depreciation - furn. & fixt —-3,100 (cr)
Office equipment —-------- 15,500
accumulated depreciation - office equipt. – 1,500 (cr) 41. Based on the following selected
Note payable —------------------20,000 (cr) account balances appearing in the
Accounts payable —------- 94,750(cr) trial balances of Midway Repair
Leonard capital —-------- 465,000(cr)
Company As of December 31, 200D
Leonard drawing —------ 9,500
Cash —---------------20,000
Sales —--------- 527,875 (cr)
Loan payable —---- 12,000
Sales return —----- 11,000
Office equipment—- 60,000
Sales discount —----- 6,400
Unearned rentals — 5,000
Purchases —----- 390,750
Accrued salaries—- 25,000
Freight in —------ 5,415
meg drawing —-- 8,000
Purchase returns —---- 3,630 (cr)
Repair income —- 123,000
Purchase discount —-- 6,885(cr)
Prepaid advertising – 10,000 Sales returns & allowances—- 7,300
Rent expense —--- 15,000 Sales discount —----- 3,700
Meg capital —---- 135,000
Accrued interest income — 1,000
How much is the total of the debit balances?
a. 19, 500 ‘ video
How much is the total of the debit balances?
b. Not given ‘ leak
a. 236,000
c. 14, 900
b. 114,000
d. 17, 000
c. 261,000
d. 235,000
44. A Statement which shows where the
money of the business is obtained
42. Based on the following post- closing
and used.
trial balance of Rigodon Corporation
a. Statement of Cash Flow
on June 30,the end of its fiscal year.
b. Statement of Financial
Position
Notes payable —-------------25,000
Cash —-------------------------50,000 c. Statement of Revenues and
Unearned rental income —--5,000 Expenses
Unused supplies—-----------1,500 d. Cash Budget
Accounts receivable—-------12,000 45. Riggy Company provided you with
Allow. For bad debts—-------2,000 the unadjusted selected accounts on
December31, 200E.
Accrued insurance expense—10,000 Sales —-------------------- 850,000
Office equipment —----80,000 Less: sales return —----50,000
Accum. Depreciation - office equip 8,000 Net sales —---------------800,000.
Furniture—----------------40,000
Accum. Depreciation - furniture – 2,000 Account receivable —-- — 74,000
Less: Allow for bad debts – 12,000
Net realizable value —------- 62,000
How much are the total owner’s
equity? Beginning inventory —---- 45,000
a. 131,500 Ending inventory —---------60,000
b. 146,500
Freight in —------------------- 12,000
c. 141,500
Freight out —------------------ 20,000
d. 136,500
43. Based on the following selected If bad debts are estimated to be 2% of
accounts provided to you by the Sales, how much would be debited to bad
chief accountant of BarbiTraders: debts?
a. 4, 000’
Accrued interest income —-- 4,600
Accrued interest expense—--- 2,500
b. 17, 000
Prepaid rent—---- 5,000 c. 16, 000’
Unearned interest —--- 1,400 d. 5, 000
Allowance for bad debts —-- 5,400
accumulated depreciation —- 10,000
46. Based on the following information
Freight in —------------------ 2,000
Freight out —---------------1,500 provided By Max trading Company
Purchase returns & allowances —--1,400 on December 31,200C, the end of its
Purchase discounts —--- 2,600 accounting period:
Sales —--------------------------------- 780, 000 49. Based on the following information
Sales Returns and allowances — 15, 000 provided by Max Trading Company
Sales Discount —-------------------- 19, 000 on December 31,200C, the end of its
Purchases —-------------------------- 420, 000 accounting period:
Freight In —---------------------------- 12, 000
Sales —--------------------------------- 780, 000
Purchase Returns & Allowances – 8, 000
Sales Returns and allowances — 15, 000
Purchase Discount —---------------- 2, 000
Sales Discount —-------------------- 19, 000
Beginning Inventory —-------------- 50, 000
Purchases —-------------------------- 420, 000
Ending Inventory —---------------------- 80, 000
Freight In —---------------------------- 12, 000
Operating Expenses —----------------- 120, 000
Purchase Returns & Allowances – 8, 000
Other Income —-------------------------- 16, 000
Purchase Discount —---------------- 2, 000
Other Expenses —----------------------- 3, 000
Beginning Inventory —-------------- 50, 000
Ending Inventory —---------------------- 80, 000
How much is the gross profit? Operating Expenses —----------------- 120, 000
a. 380, 000’ Other Income —-------------------------- 16, 000
b. 356, 000 Other Expenses —----------------------- 3, 000
c. 358, 000
d. 354, 000’ How much is the cost of goods sold?
a. 366, 000
47. Which of the following accounts is b. 390. 000
liability? c. 388, 000
a. Accrued Income d. 392, 000
b. Deferred Expense
c. Prepaid Expenses 50. Based on the following information
d. Accrued Expense provided by Max Trading Company
48. Based on the following audited on December 31,200C, the end of its
financial statements of Fast Truckers accounting period:
at the end of December 31, 200E: Sales —--------------------------------- 780, 000
Sales Returns and allowances — 15, 000
Using the accrual basis of Sales Discount —-------------------- 19, 000
accounting, how much is the net Purchases —-------------------------- 420, 000
Freight In —---------------------------- 12, 000
income?.
Purchase Returns & Allowances – 8, 000
Purchase Discount —---------------- 2, 000
Trucking services fees collected— 32,000
Beginning Inventory —-------------- 50, 000
Trucking services fees uncollected — 18,000
Expenses paid —-- 27,000 Ending Inventory —---------------------- 80, 000
Expenses unpaid —- 2,000 Operating Expenses —----------------- 120, 000
Non-cash expenses — 1,000 Other Income —-------------------------- 16, 000
Total assets —--- 180,000 Other Expenses —----------------------- 3, 000
Total liabilities —-- 25,000
How much is the net profit from operations?
a. 20, 000 a. 367, 000
b. 5, 000 b. 234, 000
c. 30, 000 c. 356, 000
d. 23, 000 d. 370, 000
 51. Based on the following post-closing 53. The cost of office equipment less
trial balance of Rigodon Corporation accumulated depreciation is called
on June 30,the end of its fiscal year. a. Net realizable value
Notes payable —-------------25,000 b. Liquidation Value
Cash —-------------------------50,000 c. Amortized value
Unearned rental income —--5,000 d. Carrying amount/google also
Unused supplies—-----------1,500 54. Which of the following end of the
Accounts receivable—-------12,000
accounting period (12-month period)
Allow. For bad debts—-------2,000
is the most ideal for a business?
Accrued insurance expense—10,000 a. Natural business year which ends in
Office equipment —----80,000 the month business activities are at
Accum. Depreciation - office equip 8,000 their lowest
Furniture—----------------40,000 b. The accounting period should end
Accum. Depreciation - furniture – 2,000 in the month business activities are
If the owner’s drawing is 100,000 and the at their highest
beginning owner’s equity is 185, 000. How c. Calendar year which ends
Much is the Net profit? December 31 ‘ leak
a. 109, 000’google d. Fiscal year which ends on any
b. 101, 000 month except December 31.’ video
c. 102, 000 55. Who is the head of the accounting
d. 121, 000 department?
a. Treasure
52. Selected accounts of X company b. Chief Accountant
after adjusting entries appearing in c. Controller
the trial balance are shown below. d. Bookkeeper
56. .Based on the following reconciling
Dr Cr items between the bank balance and
the book balance on November 30
cash 200,000 80,000
of year of Rolex the current
Notes 50,000 24,000 Company:
receivable

Accounts 120,000 300,000

● Balance per the bank
payable statement in November 1
showed the amount of P
sales 1,240,000
80,161
Salaries 68,000 ● Deposits of P 5,460 made in
expense November 30 were not yet
reflected
What kind of trial balance is shown above? ● Checks issued but not yet
a. Trial Balance of Balances paid amounted to P 12,148
b. Preliminary Trial Balance ● Bank collection of P 13,500
c. Post- Closing Trial Balance’video was not recorded in the
d. Trial Balance of Totals’leak books
 ● Bank service charges for the How much is the total of the credit
month amounted to P 1,200 balances?
● A check deposited in the a. 25.400’google
amount of P 5,000 was b. 23,300
marked by the c. Not given
● DAIF (drawn against d. 27,900
insufficient fund) 59. Based on the following adjusted trial
● A deposit for P 5,400 was balance of Lyndon company on
erroneously recorded by the December31, 200C, the end of the
bank as P 4,500 accounting period;
How much is the adjusted
bank balance Cash —-----------------------------67,075
Note receivable —---------------70,000
a. 73, 173
accounts receivable —----------176,500
b. 75, 573 Allowance for bad debts—---------------------5,400(cr)
c. 75, 273 Merchandise inventory, jan.1 –60,900
d. 74, 373 Furniture & fixture —------------34,100
57. Nelsie Corporation has an accumulated depreciation - furn. & fixt —-3,100 (cr)
Office equipment —-------- 15,500
outstanding60- day 6% note
accumulated depreciation - office equipt. – 1,500 (cr)
receivable amounting to 15, 000 Note payable —------------------20,000 (cr)
dated December 1 of the current Accounts payable —------- 94,750(cr)
year. The company is using the Leonard capital —-------- 465,000(cr)
Leonard drawing —------ 9,500
calendar year in preparing its
Sales —--------- 527,875 (cr)
financial [Link] account Sales return —----- 11,000
should be created and what is the Sales discount —----- 6,400
amount? Purchases —----- 390,750
a. Interest income, 75 Freight in —------ 5,415
Purchase returns —---- 3,630 (cr)
b. Interest income, 900
Purchase discount —-- 6,885(cr)
c. Accrued interest income, 150 Salaries expense —---- 99,550
d. Unearned interest income, Rent expense —----- 24, 000
150 Insurance expense —--- 5,250
Office supplies expense – 2,200
58. Based on the following selected
Rental income —- 5,000
accounts provided to you by the
chief accountant of BarbiTraders: Additional information : merchandise inventory,
Accrued interest income —-- 4,600 december 31, 76,000
Accrued interest expense—--- 2,500
Prepaid rent—---- 5,000
How much are the total assets?
Unearned interest —--- 1,400
Allowance for bad debts —-- 5,400 a. 492, 175
accumulated depreciation —- 10,000 b. 427, 195
Freight in —------------------ 2,000 c. 421, 975
Freight out —---------------1,500
d. 429, 175
Purchase returns & allowances —--1,400
Purchase discounts —--- 2,600
60. Based on the following adjusted trial
Sales returns & allowances—- 7,300 balance of Lyndon company on
Sales discount —----- 3,700 December31, 200C, the end of the
accounting period;
 Accounts payable —------- 94,750(cr)
Cash —-----------------------------67,075 Leonard capital —-------- 465,000(cr)
Note receivable —---------------70,000 Leonard drawing —------ 9,500
accounts receivable —----------176,500 Sales —--------- 527,875 (cr)
Allowance for bad debts—---------------------5,400(cr) Sales return —----- 11,000
Merchandise inventory, jan.1 –60,900 Sales discount —----- 6,400
Furniture & fixture —------------34,100 Purchases —----- 390,750
accumulated depreciation - furn. & fixt —-3,100 (cr) Freight in —------ 5,415
Office equipment —-------- 15,500 Purchase returns —---- 3,630 (cr)
accumulated depreciation - office equipt. – 1,500 (cr) Purchase discount —-- 6,885(cr)
Note payable —------------------20,000 (cr) Salaries expense —---- 99,550
Accounts payable —------- 94,750(cr) Rent expense —----- 24, 000
Leonard capital —-------- 465,000(cr) Insurance expense —--- 5,250
Leonard drawing —------ 9,500 Office supplies expense – 2,200
Sales —--------- 527,875 (cr) Rental income —- 5,000
Sales return —----- 11,000
Sales discount —----- 6,400 Additional information : merchandise inventory,
Purchases —----- 390,750 december 31, 76,000
Freight in —------ 5,415
Purchase returns —---- 3,630 (cr) How much are the total liabilities?
Purchase discount —-- 6,885(cr)
a. 114, 750
Salaries expense —---- 99,550
Rent expense —----- 24, 000
b. 147, 750
Insurance expense —--- 5,250 c. 174, 750
Office supplies expense – 2,200 d. 141, 750
Rental income —- 5,000 62. Which of the following accounts will
be affected by the adjusting entries?
Additional information : merchandise inventory,
december 31, 76,000 a. Only nominal accounts
b. None
How much is the gross profit? c. Both real and nominal accounts
a. 186, 925 d. Only real accounts
b. 194, 805
c. 189, 425 63. CASH
d. 184, 925 July 1 investment July 1 taxes &
owner – 500000 licenses – 1,000

61. Based on the following adjusted trial 3 cash sales– 82 000 2 Freight on the
equipment — 2,000
balance of Lyndon company on
December31, 200C, the end of the 13 loan — 200 000 4 rent expense –
accounting period; 5,000

15 collections of 7 cash purchases -

Cash —-----------------------------67,075 accounts —-42,000 25,000
Note receivable —---------------70,000
20 purchase returns - 9 salaries —- 21,000
accounts receivable —----------176,500
6,000
Allowance for bad debts—---------------------5,400(cr)
Merchandise inventory, jan.1 –60,900 29 rental received – 11 drawing — 20,000
Furniture & fixture —------------34,100 5,000
accumulated depreciation - furn. & fixt —-3,100 (cr)
30 cash sales – 12 sales returns –
Office equipment —-------- 15,500 30,000 6,000
accumulated depreciation - office equipt. – 1,500 (cr)
Note payable —------------------20,000 (cr) 31 sales of old 15 payment of
 equipment — 3,000 account – 15,000
Beginning Inventory —-------------- 50, 000
Ending Inventory —---------------------- 80, 000
22 insurance – 4,000 Operating Expenses —----------------- 120, 000
Other Income —-------------------------- 16, 000
30 salaries – 23,000
Other Expenses —----------------------- 3, 000

How much is the net cash flow from How much is the cost of goods available for
investing activities? sale?
a. (1, 000) a. 460, 000
b. (2, 000) b. 472, 000
c. 1, 000 c. 448, 000
d. 2, 000 d. 470, 000.
64. Riggy Company provided you with 66. Riggy Company provided you with
the unadjusted selected accounts on the unadjusted selected accounts on
December31, 200E. December31, 200E.
Sales —-------------------- 850,000 Sales —-------------------- 850,000
Less: sales return —----50,000 Less: sales return —----50,000
Net sales —---------------800,000. Net sales —---------------800,000.

Account receivable —-- — 74,000 Account receivable —-- — 74,000

Less: Allow for bad debts – 12,000 Less: Allow for bad debts – 12,000
Net realizable value —------- 62,000 Net realizable value —------- 62,000

Beginning inventory —---- 45,000 Beginning inventory —---- 45,000

Ending inventory —---------60,000 Ending inventory —---------60,000

Freight in —------------------- 12,000 Freight in —------------------- 12,000

Freight out —------------------ 20,000 Freight out —------------------ 20,000

If bad debts instead are estimated to be What is the journal entry to set up the
10% of accounts receivable, what is the ending inventory?
adjusted balance of the allowance for bad a. Ending inventory 60, 000 Beginning
debts account? Inventory 15, 000 Income & Exp.
a. 53, 800 Summary 45, 000
b. 52, 600 b. Inventory 60, 000 accounts payable
c. 66, 200 60, 000
d. 7, 400 c. Inventory 15, 000 Income & Exp.
65. Based on the following information Summary 15, 000
provided By Max trading Company d. Inventory 60, 000 Income & Exp.
on December 31,200C, the end of its Summary 60, 000
accounting period:
Sales —--------------------------------- 780, 000 67. Based on the following audited
Sales Returns and allowances — 15, 000 financial statements of Fast Truckers
Sales Discount —-------------------- 19, 000 at the end of December 31, 200E:
Purchases —-------------------------- 420, 000
Freight In —---------------------------- 12, 000
Purchase Returns & Allowances – 8, 000
Purchase Discount —---------------- 2, 000
 Using the accrual basis of
accounting, what is the beginning
capital?

Trucking services fees collected— 32,000

Trucking services fees uncollected — 18,000
Expenses paid —-- 27,000
Expenses unpaid —- 2,000
Non-cash expenses — 1,000
Total assets —--- 180,000
Total liabilities —-- 25,000

a. 100, 000
b. 135, 000
c. 75, 000
d. 145, 000

68. Accounts Receivable less allowance

for bad debts equals
a. Net appraised value
b. Net book value
c. Carrying amount
d. Net realizable value
69. Which of the following checks can
not been cashed but instead merely
deposited ?
a. Stale check
b. Crossed check
c. Dishonored check
d. Post dated check
70. .
71. .
72. .
1. Rolex Company - adjusted bank balance = P 74,373
2. Midway Repair Company - debit balances = b. P 114,000
3. XYZ Company - In the books of the lessor, what amount should be recognized as liability
on December 31, 200D, the end of the accounting period? = d. P 12,000
4. end of the accounting period (12-month period) is the most ideal for a business =
Calendar year which ends December 31
5. FOB – Shipping point – Freight prepaid = Should shoulder: Seller & Will pay: Buyer
6. Recording, Classifying, Summarizing, Interpreting
7. Max Trading Company - gross profit = 354,000
8. will result in the increase and decrease in liability = Issued a promissory note in payment
of a liability
9. Riggy Company - 2% of Sales, how much would be debited to bad debts = P 16,000
10. Riggy Company - estimated to be 10% of accounts receivable, what is the adjusted
balance of the allowance for bad debts account? = P 7,400
11. reflected in the post-closing trial balance = Real accounts with balances
12. Rigodon Corporation - net profit = P 46,500
13. The exchange of goods or services that results in mutual benefit for both parties
involved. = Business
14. Rolex Company - balance per book = 72,073
15. Lyndon Company - ending owner’s equity = P 314,425
16. Max Trading Company - COGS = 392,000
17. Barbi Traders - total of the credit balances = 23,300
18. Delta Corporation = 50,000
19. Riggy Company - journal entry to set up the ending inventory = Ending Inventory 60,00 Beginning
15,000 and expense summary 45,000 / inventory 60,000 and exp. Summary 60,000
20. Fast Truckers - accrual basis of accounting, how much is the net income = 20,000
21. Rigodon Corporation - Owner’s Equity = P 131,500
22. The owner’s equity is computed as follows = Assets less liabilities
23. Head of accounting department = controller
24. Lyndon Company - total liabilities = 114,750
25. T-ACCOUNT - cash flow from operating activities = 34,000
26. Jigi company - adjusting entry =.Supplies Expense 20,000 Supplies Inventories 20,000
27. accounts will be affected by the adjusting entries = both real and nominal accounts
28. FOB – Destination - Freight Collect = Should shoulder: Seller & Will pay: Buyer
29. Barbi Traders - debit balances = not given
30. Lyndon Company - Net Income = P 58, 925
31. Max Trading Company - Net profit from operations = 234,000
32. determination of the fairness of the accounting reports = auditing
33. Dated checks issued but not yet paid by the bank are called = outstanding checks
34. adjusting entries need to be reversed in the following year = Adjusting entries for the
accruals
35. Received a promissory note in payment of an account. = Notes Receivable, Accounts
Receivable
36. checks can not be encashed but instead merely deposited = crossed check
37. Rigodon Corporation - total assets = 171,500
38. shows where the money of the business is obtained and used = statement of cash flow
39. T-ACCOUNT - Investing activities = (-2,000)
40. Merchandise with a list price of P 20,000 was purchased under the terms 2/10, n/30 with
trade discount of 10% and 5%. How much is the cost of purchases to be recorded =
17,100
41. Accounts is a liability = accrued expense
42. If the unearned interest is credited in the adjusting entry, which of the following will be
affected = liability account
43. Which of the following journal entries can be eliminated? = closing entry
44. STATEMENT - an increase in revenue, a balanced trial, simple entry, tangible assets = 3
45. MIdway Repair Company - credit balances = 300,000
46. The cost of office equipment less accumulated depreciation is called = carrying amount
47. Max Trading Company - Net Income = 247,000
48. Max Trading cost of goods available for sale = 472,000
49. Dexter Company = 16,667
50. Nelsie Corp = Income Interest, 75
51. X Company after adjusting entries = trial balance of totals
52. Not a function of accounting = Budgeting
53. What is the carrying amount (net book value) of the furniture on December 31, the end of
the accounting period? = 32,400
54. Accounts Receivable less Allowance for bad debts equals = Net realizable value
55. Cannot be detected by the trial balance = all of the letters
56. Fast truckers - beginning capital = 135,000
57. Lyndon Company - gross profit = 184,925
58. Net cash flow from financing activities = 680,000
59. Lyndon Company - total assets = 429,175
60. Rigodon Company - Total Liabilities = 40,000
1. Arrange the following functions of ● A deposit for P 5,400 was
accounting in a sequential manner erroneously recorded by the
● recording bank as P 4,500
● interpreting
● Summarizing How much is the balance per book
● Classifying November 1?
- Recoding, classifying, summarizing, A. 72,073
interpreting/ google also B. 67,073
2. Merchandise with a list price of P C. 80,573
20,000 was purchased under the D. 61,613
terms 2/10, n/30 with trade discount 4. On December 1, 200D, Marimar, a
of 10% and 5%. How much is the lessee paid P 18,000 to XYZ
cost of purchases to be recorded? Company representing the rent for 3
A. 17,000 months. Rent income was credited
B. 16,758 on this date by XYZ Company.
C. 20,000
D. 17,100 In the books of the lessor, what
3. Based on the following reconciling amount should be recognized as
items between the bank balance and liability on December 31, 200D, the
the book balance on November 30 end of the accounting period?
of year of Rolex the current A. 16,000
Company: B. 3,000
C. 18,000
● Balance per the bank D. 12,000/ Google also
statement in November 1 5. What accounts will be reflected in
showed the amount of P the post-closing trial balance?
80,161 A. Nominal accounts with
● Deposits of P 5,460 made in balances
November 30 were not yet B. Real accounts with
reflected balances/google also
● Checks issued but not yet C. All accounts with
paid amounted to P 12,148 adjustment’video
● Bank collection of P 13,500 D. Real and nominal accounts
was not recorded in the with balances
books 6. If the unearned interest is credited
● Bank service charges for the in the adjusting entry, which of the
month amounted to P 1,200 following will be affected?
● A check deposited in the A. a nominal account
amount of P 5,000 was B. a capital account
marked by the C. an asset account
● DAIF (drawn against D. a liability account/google
insufficient fund) 7. On July 31, the end of the
accounting period of Jigi Company,
the unadjusted trial balance showed
 supplies expenses with a balance of 11. A statement which shows where the
P23,000. However, P 3,000 worth of money of the business is obtained
supplies were still unused. and used.
A. Cash budget’video
Give the adjusting entry. B. Statement of Cash Flow
A. Supplies Inventory 20,000 C. Statement of Financial
Supplies Expense 20,000 Position
B. Supplies expense 3,000 D. Statement of Revenues and
Supplies inventory 3,000 Expenses
C. Supplies Inventory 3,000 12. Which of the following is not a
Supplies Expense 3, 000 function of accounting?
D. Supplies Expense 20,000 A. Budgeting
Supplies T Inventory 20,000 B. Reporting
8. Dated checks issued but not yet C. Interpreting
paid by the bank are called D. Bookkeeping
A. Dishonored checks 13. The owner's equity is computed as
B. Cancelled checks follows:
C. Outstanding checks A. Cash inflows less cash
D. Post dated checks outflows
9. The exchange of goods or services B. Assets less liabilities
that results in mutual benefit for both C. Revenues less expenses
parties involved. D. Beginning capital plus net
A. Servicing 14. This deals with the determination of
B. Trading the fairness of the accounting
C. Sales reports and whether they are in Auditing
D. Business accordance with the generally
10. On January 1 of the current year, accepted accounting principles.
the furniture account had a balance 15. This deals with the determination of
of P 24,000 with accumulated the fairness of the accounting
depreciation of P 2,400. On May reports and whether they are in
additional furniture costing | 12,000 accordance with the generally
was bought. The furniture is accepted accounting principles.
depreciated at the rate 10% per A. Cost Accounting
annum. B. Auditing
C. Financial Accounting
What is the carrying amount (net D. Management Accounting
book value) of the furniture on 16. Which of the following transactions
December 31, the end of the will result in the increase and
accounting period? decrease in liability?
A. 34,000 A. Issued a promissory note in
B. 32,400 payment of a liability.
C. 33,000 B. Borrowed money from the
D. 30,400 bank.
 C. Payment of loan by 20. Delta Corporation has paid a total of
installment P 150,000 representing the salaries
D. Request for an extension of of its employees for the calendar
the date of payment. year ended 200B. On December 31,
17. Which of the following adjusting of the same year, there were
entries need to be reversed in the accrued salaries of P 50,000.
following year?
A. Adjusting entry for the How much salaries should be
depreciation adjusted by the year-end?
B. Adjusting entries for the A. 100,000
accruals/google also B. 50,000
C. Adjusting entries are not C. 150,000
reversed D. Not given
D. Adjusting entry for the bad 21. Which of the following accounts is a
debts liability?
18. How many of the following A. Accrued Income
statements is/are FALSE? B. Prepaid expenses’video
● An increase in revenue is on the C. Accrued Expense/ google
credit side hence a decrease in also
expense is also on the credit side. D. Deferred expense
● A balanced trial balance means that 22. Dexter Company acquired a
the recording is free from errors. machine costing P 650,000 with an
● A simple entry has only one debit estimated useful life of 15 years with
and credit while a compound entry salvage value of P 50,000. The end
has two or more debits and credits. of the fiscal year is July 31 of the
● Tangible assets have values but current year.
intangible assets have no values.
A. 3 How much depreciation is to be
B. 4 charged on July 31 of the current
C. 1 year?
D. 2 A. P16,667
19. Which of the following errors cannot B. P 40,000
be detected by the trial balance? C. P 13,333
a. Incorrect accounts were used to D. P 36,667
record a given transaction. 23. Give the journal entry for the
b. Incorrect amounts were recorded following transaction. Received a
for a given transaction promissory note in payment of an
c. A journal entry was posted twice. account.
d. A journal entry was not posted to A. Notes Receivable. Notes
the general ledger. Payable
A. C&D B. Notes Receivable, Accounts
B. A&B Receivable
C. B&C C. Notes Payable, Notes
D. All of the letters Receivable
 D. Accounts Receivable, Notes Prepaid Advertising —------------- 10 000
Rent Expense —-------------------- 15 000
Receivable
Meg Capital —---------------------- 135 000
24. On January 1 of the current year, the Accrued Interest Income —-------- 1 000
furniture account had a balance of P
24,000 with accumulated How much is the total of the debit
depreciation of P 2,400. On May balances?
additional furniture costing P 12,000 a. 236, 000
was bought. The furniture is b. 114, 000
depreciated at the rate 10% per c. 261, 000
annum. d. 235, 000

What is the carrying amount (net 28. Based on the following information
book value) of the furniture on provided By Max trading Company
December 31, the end of the on December 31,200C, the end of its
accounting period? accounting period:
A. 34,000 Sales —--------------------------------- 780, 000
B. 32,400 Sales Returns and allowances — 15, 000
C. 33,000 Sales Discount —-------------------- 19, 000
D. 30,400 Purchases —-------------------------- 420, 000
25. The cost of office equipment less the Freight In —---------------------------- 12, 000
accumulated depreciation is called Purchase Returns & Allowances – 8, 000
A. Net realizable value Purchase Discount —---------------- 2, 000
Beginning Inventory —-------------- 50, 000
B. Liquidiation value
Ending Inventory —---------------------- 80, 000
C. Amortized value
Operating Expenses —----------------- 120, 000
D. Carrying amount Other Income —-------------------------- 16, 000
26. What accounts will be reflected in Other Expenses —----------------------- 3, 000
the post-closing balance?
a. Real and nominal accounts How much is the net income?
with balances a. 372, 000
b. Real accounts with balances/ b. 354, 000
google also c. 356, 000
c. All accounts with balances d. 247, 000
d. Nominal accounts with
balances 29. Which of the following journal entries
27. Based on the following selected can be eliminated?
balances appearing in the trial a. Correcting entry
balance of Midway Repair Company b. Adjusting Entry
as of December 31, 200D: c. Opening Entry
d. Closing Entry
Cash —------------------------------20 000
30. Based on the following recording
Loan Payable —-------------------12 000
Office Equipment —---------------60 000 items between the bank balance and
Unearned Rentals —-------------- 5 000 the book balance on November 30
Accrued Salaries —--------------- 25 000 of the current year of Rolex
Meg Drawing —-------------------- 8 000
Company:
Repair Income —----------------- 123 000
 ● Balance per the bank statement in Accum. Depreciation - office equip 8,000
November 1 showed the amount of Furniture—----------------40,000
80, 161 Accum. Depreciation - furniture – 2,000
● Deposits of 5, 460 made in
November 30 were not yet reflected How much are the total assets?
● Checks issued but not yet paid a. 171,500’leak
amounted to 12, 148 b. 181,500’video
● Bank collection of 13, 500 was not c. 176,500
recorded in the books d. 169,500
● Bank service charges for the month
amounted to 1,200 33. Based on the following post- closing
● A check deposited in the amount of trial balance of Rigodon Corporation
5,000was marked by the DAIF on June 30,the end of its fiscal year.
(drawn against insufficient fund)
Notes payable —-------------25,000
● A deposit for 5, 400 was
Cash —-------------------------50,000
erroneously recorded by the bank as
Unearned rental income —--5,000
4,500 Unused supplies—-----------1,500
How much is the balance per Accounts receivable—-------12,000
book,November 1? Allow. For bad debts—-------2,000
a. 61, 613
b. 72, 073 Accrued insurance expense—10,000
c. 67, 073 Office equipment —----80,000
d. 80, 573 Accum. Depreciation - office equip 8,000
31. This deals with the determination of Furniture—----------------40,000
Accum. Depreciation - furniture – 2,000
the fairness of the accounting
reports and whether they are in
How much are the total liabilities
accordance with the generally
a. 40, 000
accepted accounting principles.
b. 25, 000
a. Cost accounting
c. 35, 000
b. Management Accounting
d. 30, 000
c. Auditing
34. Assume that the term of shipment is
d. Financial Accounting
FOB-Destination- Freight Collect.
32. Based on the following post- closing
Who should shoulder the freight and
trial balance of Rigodon Corporation
who will pay?
on June 30,the end of its fiscal year.
a. Should shoulder: Buyer &
Will pay : Seller
Notes payable —-------------25,000
Cash —-------------------------50,000 b. Should shoulder: Seller &
Unearned rental income —--5,000 Will pay: Buyer
Unused supplies—-----------1,500 c. Should Shoulder: Buyer &
Accounts receivable—-------12,000 Will pay : Buyer
Allow. For bad debts—-------2,000 d. Should Shoulder : Seller &
Will pay: Seller
Accrued insurance expense—10,000
Office equipment —----80,000 35.
 CASH 31 sales of old 15 payment of
equipment — 3,000 account – 15,000
July 1 investment July 1 taxes &
owner – 500000 licenses – 1,000
22 insurance – 4,000
3 cash sales– 82 000 2 Freight on the
equipment — 2,000 30 salaries – 23,000

13 loan — 200 000 4 rent expense –

5,000 How much is the net cash flow from
financing activities?
15 collections of 7 cash purchases -
accounts —-42,000 25,000 a. 500,000’video
b. 480,000
20 purchase returns - 9 salaries —- 21,000
6,000 c. 700,000
d. 680,000’leak
29 rental received – 11 drawing — 20,000
5,000
37. Assume that the term of Shipment is
30 cash sales – 12 sales returns –
30,000 6,000 FOB-Shipping point- Freight
Prepaid. Who should shoulder the
31 sales of old 15 payment of
equipment — 3,000 account – 15,000 freight and who will pay?
a. Should shoulder: Seller &
22 insurance – 4,000
Will pay : Seller
30 salaries – 23,000 b. Should shoulder: Buyer &
Will pay: Seller
How much is the net cash flow from c. Should Shoulder: Buyer &
operating activities? Will pay : Buyer
a. 30, 000 d. Should Shoulder : Seller &
b. 34, 000 Will pay: Buyer
c. 65, 000 38. Which of the following transactions
d. 28, 000 will result in the increase and
decrease in liability?
36. CASH a. Payment of loan by
installment.
July 1 investment July 1 taxes &
owner – 500000 licenses – 1,000 b. Borrowed money from the
bank
3 cash sales– 82 000 2 Freight on the
equipment — 2,000 c. Issued a promissory note in
payment of a liability
13 loan — 200 000 4 rent expense –
5,000 d. Request for an extension of
the date of payment
15 collections of 7 cash purchases -
accounts —-42,000 25,000 39. .Based on the following adjusted trial
balance of Lyndon company on
20 purchase returns - 9 salaries —- 21,000
6,000 December31, 200C, the end of the
accounting period;
29 rental received – 11 drawing — 20,000
5,000
Cash —-----------------------------67,075
30 cash sales – 12 sales returns – Note receivable —---------------70,000
30,000 6,000 accounts receivable —----------176,500
Allowance for bad debts—---------------------5,400(cr)
Merchandise inventory, jan.1 –60,900 Freight in —------ 5,415
Furniture & fixture —------------34,100 Purchase returns —---- 3,630 (cr)
accumulated depreciation - furn. & fixt —-3,100 (cr) Purchase discount —-- 6,885(cr)
Office equipment —-------- 15,500 Salaries expense —---- 99,550
accumulated depreciation - office equipt. – 1,500 (cr) Rent expense —----- 24, 000
Note payable —------------------20,000 (cr) Insurance expense —--- 5,250
Accounts payable —------- 94,750(cr) Office supplies expense – 2,200
Leonard capital —-------- 465,000(cr) Rental income —- 5,000
Leonard drawing —------ 9,500
Sales —--------- 527,875 (cr) Additional information : merchandise inventory,
Sales return —----- 11,000 december 31, 76,000
Sales discount —----- 6,400
Purchases —----- 390,750 How much is the ending Owner’s Equity?
Freight in —------ 5,415
a. 341,125
Purchase returns —---- 3,630 (cr)
Purchase discount —-- 6,885(cr)
b. 314,425
Salaries expense —---- 99,550 c. 344,425
Rent expense —----- 24, 000 d. 341,425
Insurance expense —--- 5,250
Office supplies expense – 2,200
41. Based on the following selected
Rental income —- 5,000
account balances appearing in the
Additional information : merchandise inventory, trial balances of Midway Repair
december 31, 76,000 Company As of December 31, 200D
Cash —---------------20,000
How much is the net income? Loan payable —---- 12,000
a. 53, 925 Office equipment—- 60,000
Unearned rentals — 5,000
b. 63, 975
Accrued salaries—- 25,000
c. 48, 925 meg drawing —-- 8,000
d. 58, 925 Repair income —- 123,000
40. Based on the following adjusted trial Prepaid advertising – 10,000
balance of Lyndon company on Rent expense —--- 15,000
Meg capital —---- 135,000
December31, 200C, the end of the
Accrued interest income — 1,000
accounting period;
How much is the total of the credit
Cash —-----------------------------67,075
balances?
Note receivable —---------------70,000
accounts receivable —----------176,500
a. 271, 000
Allowance for bad debts—---------------------5,400(cr) b. 296, 500
Merchandise inventory, jan.1 –60,900 c. 300,000
Furniture & fixture —------------34,100 d. 276, 000
accumulated depreciation - furn. & fixt —-3,100 (cr)
Office equipment —-------- 15,500
accumulated depreciation - office equipt. – 1,500 (cr) 42. Based on the following selected
Note payable —------------------20,000 (cr) account balances appearing in the
Accounts payable —------- 94,750(cr) trial balances of Midway Repair
Leonard capital —-------- 465,000(cr)
Company As of December 31, 200D
Leonard drawing —------ 9,500
Cash —---------------20,000
Sales —--------- 527,875 (cr)
Loan payable —---- 12,000
Sales return —----- 11,000
Office equipment—- 60,000
Sales discount —----- 6,400
Unearned rentals — 5,000
Purchases —----- 390,750
Accrued salaries—- 25,000 Freight out —---------------1,500
meg drawing —-- 8,000 Purchase returns & allowances —--1,400
Repair income —- 123,000 Purchase discounts —--- 2,600
Prepaid advertising – 10,000 Sales returns & allowances—- 7,300
Rent expense —--- 15,000 Sales discount —----- 3,700
Meg capital —---- 135,000
Accrued interest income — 1,000
How much is the total of the debit balances?
a. 19, 500 ‘ video
How much is the total of the debit balances?
b. Not given ‘ leak
a. 236,000
c. 14, 900
b. 114,000
d. 17, 000
c. 261,000
d. 235,000
45. A Statement which shows where the
money of the business is obtained
43. Based on the following post- closing
and used.
trial balance of Rigodon Corporation
a. Statement of Cash Flow
on June 30,the end of its fiscal year.
b. Statement of Financial
Position
Notes payable —-------------25,000
Cash —-------------------------50,000 c. Statement of Revenues and
Unearned rental income —--5,000 Expenses
Unused supplies—-----------1,500 d. Cash Budget
Accounts receivable—-------12,000 46. Riggy Company provided you with
Allow. For bad debts—-------2,000 the unadjusted selected accounts on
December31, 200E.
Accrued insurance expense—10,000 Sales —-------------------- 850,000
Office equipment —----80,000 Less: sales return —----50,000
Accum. Depreciation - office equip 8,000 Net sales —---------------800,000.
Furniture—----------------40,000
Accum. Depreciation - furniture – 2,000 Account receivable —-- — 74,000
Less: Allow for bad debts – 12,000
Net realizable value —------- 62,000
How much are the total owner’s
equity? Beginning inventory —---- 45,000
a. 131,500 Ending inventory —---------60,000
b. 146,500
Freight in —------------------- 12,000
c. 141,500
Freight out —------------------ 20,000
d. 136,500
44. Based on the following selected If bad debts are estimated to be 2% of
accounts provided to you by the Sales, how much would be debited to bad
chief accountant of BarbiTraders: debts?
a. 4, 000’ video
Accrued interest income —-- 4,600
Accrued interest expense—--- 2,500
b. 17, 000
Prepaid rent—---- 5,000 c. 16, 000’ leak
Unearned interest —--- 1,400 d. 5, 000
Allowance for bad debts —-- 5,400
accumulated depreciation —- 10,000
Freight in —------------------ 2,000
 47. Based on the following information c. 30, 000
provided By Max trading Company d. 23, 000
on December 31,200C, the end of its
accounting period:
Sales —--------------------------------- 780, 000 50. Based on the following information
Sales Returns and allowances — 15, 000 provided by Max Trading Company
Sales Discount —-------------------- 19, 000 on December 31,200C, the end of its
Purchases —-------------------------- 420, 000 accounting period:
Freight In —---------------------------- 12, 000 Sales —--------------------------------- 780, 000
Purchase Returns & Allowances – 8, 000 Sales Returns and allowances — 15, 000
Purchase Discount —---------------- 2, 000 Sales Discount —-------------------- 19, 000
Beginning Inventory —-------------- 50, 000 Purchases —-------------------------- 420, 000
Ending Inventory —---------------------- 80, 000 Freight In —---------------------------- 12, 000
Operating Expenses —----------------- 120, 000 Purchase Returns & Allowances – 8, 000
Other Income —-------------------------- 16, 000 Purchase Discount —---------------- 2, 000
Other Expenses —----------------------- 3, 000 Beginning Inventory —-------------- 50, 000
Ending Inventory —---------------------- 80, 000
How much is the gross profit? Operating Expenses —----------------- 120, 000
a. 380, 000’ video Other Income —-------------------------- 16, 000
b. 356, 000 Other Expenses —----------------------- 3, 000
c. 358, 000
d. 354, 000’ leak How much is the cost of goods sold?
a. 366, 000
48. Which of the following accounts is b. 390. 000
liability? c. 388, 000
a. Accrued Income d. 392, 000
b. Deferred Expense
c. Prepaid Expenses 51. Based on the following information
d. Accrued Expense provided by Max Trading Company
49. Based on the following audited on December 31,200C, the end of its
financial statements of Fast Truckers accounting period:
Sales —--------------------------------- 780, 000
at the end of December 31, 200E:
Sales Returns and allowances — 15, 000
Sales Discount —-------------------- 19, 000
Using the accrual basis of Purchases —-------------------------- 420, 000
accounting, how much is the net Freight In —---------------------------- 12, 000
income?. Purchase Returns & Allowances – 8, 000
Purchase Discount —---------------- 2, 000
Trucking services fees collected— 32,000 Beginning Inventory —-------------- 50, 000
Trucking services fees uncollected — 18,000 Ending Inventory —---------------------- 80, 000
Expenses paid —-- 27,000 Operating Expenses —----------------- 120, 000
Expenses unpaid —- 2,000
Other Income —-------------------------- 16, 000
Non-cash expenses — 1,000
Other Expenses —----------------------- 3, 000
Total assets —--- 180,000
Total liabilities —-- 25,000
How much is the net profit from operations?
a. 20, 000’ leak a. 367, 000
b. 5, 000’ video b. 234, 000
 c. 356, 000 c. Post- Closing Trial Balance’video
d. 370, 000 d. Trial Balance of Totals’leak

52. Based on the following post-closing 54. The cost of office equipment less
trial balance of Rigodon Corporation accumulated depreciation is called
on June 30,the end of its fiscal year. a. Net realizable value
Notes payable —-------------25,000 b. Liquidation Value
Cash —-------------------------50,000 c. Amortized value’video
Unearned rental income —--5,000 d. Carrying amount/google also
Unused supplies—-----------1,500 55. Which of the following end of the
Accounts receivable—-------12,000
accounting period (12-month period)
Allow. For bad debts—-------2,000
is the most ideal for a business?
Accrued insurance expense—10,000 a. Natural business year which ends in
Office equipment —----80,000 the month business activities are at
Accum. Depreciation - office equip 8,000 their lowest
Furniture—----------------40,000 b. The accounting period should end
Accum. Depreciation - furniture – 2,000 in the month business activities are
If the owner’s drawing is 100,000 and the at their highest
beginning owner’s equity is 185, 000. How c. Calendar year which ends
Much is the Net profit? December 31 ‘ leak
a. 109, 000’google d. Fiscal year which ends on any
b. 101, 000 month except December 31.’ video
c. 102, 000 56. Who is the head of the accounting
d. 121, 000 department?
a. Treasure
53. Selected accounts of X company b. Chief Accountant
after adjusting entries appearing in c. Controller
the trial balance are shown below. d. Bookkeeper
57. .Based on the following reconciling
Dr Cr items between the bank balance and
the book balance on November 30
cash 200,000 80,000
of year of Rolex the current
Notes 50,000 24,000 Company:
receivable

Accounts 120,000 300,000

● Balance per the bank
payable statement in November 1
showed the amount of P
sales 1,240,000
80,161
Salaries 68,000 ● Deposits of P 5,460 made in
expense November 30 were not yet
reflected
What kind of trial balance is shown above? ● Checks issued but not yet
a. Trial Balance of Balances paid amounted to P 12,148
b. Preliminary Trial Balance
 ● Bank collection of P 13,500 Sales returns & allowances—- 7,300
Sales discount —----- 3,700
was not recorded in the
books
● Bank service charges for the How much is the total of the credit
month amounted to P 1,200 balances?
● A check deposited in the a. 25.400’google
amount of P 5,000 was b. 23,300
marked by the c. Not given
● DAIF (drawn against d. 27,900
insufficient fund) 60. Based on the following adjusted trial
● A deposit for P 5,400 was balance of Lyndon company on
erroneously recorded by the December31, 200C, the end of the
bank as P 4,500 accounting period;
How much is the adjusted
Cash —-----------------------------67,075
bank balance Note receivable —---------------70,000
a. 73, 173 accounts receivable —----------176,500
b. 75, 573 Allowance for bad debts—---------------------5,400(cr)
c. 75, 273 Merchandise inventory, jan.1 –60,900
Furniture & fixture —------------34,100
d. 74, 373
accumulated depreciation - furn. & fixt —-3,100 (cr)
58. Nelsie Corporation has an Office equipment —-------- 15,500
outstanding60- day 6% note accumulated depreciation - office equipt. – 1,500 (cr)
receivable amounting to 15, 000 Note payable —------------------20,000 (cr)
Accounts payable —------- 94,750(cr)
dated December 1 of the current
Leonard capital —-------- 465,000(cr)
year. The company is using the Leonard drawing —------ 9,500
calendar year in preparing its Sales —--------- 527,875 (cr)
financial [Link] account Sales return —----- 11,000
should be created and what is the Sales discount —----- 6,400
Purchases —----- 390,750
amount?
Freight in —------ 5,415
a. Interest income, 75 Purchase returns —---- 3,630 (cr)
b. Interest income, 900 Purchase discount —-- 6,885(cr)
c. Accrued interest income, 150 Salaries expense —---- 99,550
Rent expense —----- 24, 000
d. Unearned interest income,
Insurance expense —--- 5,250
150 Office supplies expense – 2,200
59. Based on the following selected Rental income —- 5,000
accounts provided to you by the
chief accountant of BarbiTraders: Additional information : merchandise inventory,
Accrued interest income —-- 4,600 december 31, 76,000
Accrued interest expense—--- 2,500
Prepaid rent—---- 5,000 How much are the total assets?
Unearned interest —--- 1,400 a. 492, 175
Allowance for bad debts —-- 5,400
b. 427, 195
accumulated depreciation —- 10,000
Freight in —------------------ 2,000 c. 421, 975
Freight out —---------------1,500 d. 429, 175
Purchase returns & allowances —--1,400 61. Based on the following adjusted trial
Purchase discounts —--- 2,600
balance of Lyndon company on
 December31, 200C, the end of the accumulated depreciation - office equipt. – 1,500 (cr)
Note payable —------------------20,000 (cr)
accounting period;
Accounts payable —------- 94,750(cr)
Leonard capital —-------- 465,000(cr)
Cash —-----------------------------67,075 Leonard drawing —------ 9,500
Note receivable —---------------70,000 Sales —--------- 527,875 (cr)
accounts receivable —----------176,500 Sales return —----- 11,000
Allowance for bad debts—---------------------5,400(cr) Sales discount —----- 6,400
Merchandise inventory, jan.1 –60,900 Purchases —----- 390,750
Furniture & fixture —------------34,100 Freight in —------ 5,415
accumulated depreciation - furn. & fixt —-3,100 (cr) Purchase returns —---- 3,630 (cr)
Office equipment —-------- 15,500 Purchase discount —-- 6,885(cr)
accumulated depreciation - office equipt. – 1,500 (cr) Salaries expense —---- 99,550
Note payable —------------------20,000 (cr) Rent expense —----- 24, 000
Accounts payable —------- 94,750(cr) Insurance expense —--- 5,250
Leonard capital —-------- 465,000(cr) Office supplies expense – 2,200
Leonard drawing —------ 9,500 Rental income —- 5,000
Sales —--------- 527,875 (cr)
Sales return —----- 11,000 Additional information : merchandise inventory,
Sales discount —----- 6,400 december 31, 76,000
Purchases —----- 390,750
Freight in —------ 5,415
Purchase returns —---- 3,630 (cr) How much are the total liabilities?
Purchase discount —-- 6,885(cr) a. 114, 750
Salaries expense —---- 99,550 b. 147, 750
Rent expense —----- 24, 000
c. 174, 750
Insurance expense —--- 5,250
Office supplies expense – 2,200
d. 141, 750
Rental income —- 5,000 63. Which of the following accounts will
be affected by the adjusting entries?
Additional information : merchandise inventory, a. Only nominal accounts
december 31, 76,000
b. None
c. Both real and nominal accounts
How much is the gross profit?
d. Only real accounts
a. 186, 925
b. 194, 805
64. CASH
c. 189, 425
July 1 investment July 1 taxes &
d. 184, 925 owner – 500000 licenses – 1,000

3 cash sales– 82 000 2 Freight on the

62. Based on the following adjusted trial equipment — 2,000
balance of Lyndon company on
December31, 200C, the end of the 13 loan — 200 000 4 rent expense –
5,000
accounting period;
15 collections of 7 cash purchases -
accounts —-42,000 25,000
Cash —-----------------------------67,075
Note receivable —---------------70,000 20 purchase returns - 9 salaries —- 21,000
accounts receivable —----------176,500 6,000
Allowance for bad debts—---------------------5,400(cr)
29 rental received – 11 drawing — 20,000
Merchandise inventory, jan.1 –60,900
5,000
Furniture & fixture —------------34,100
accumulated depreciation - furn. & fixt —-3,100 (cr) 30 cash sales – 12 sales returns –
Office equipment —-------- 15,500
 30,000 6,000
Purchase Returns & Allowances – 8, 000
Purchase Discount —---------------- 2, 000
31 sales of old 15 payment of Beginning Inventory —-------------- 50, 000
equipment — 3,000 account – 15,000
Ending Inventory —---------------------- 80, 000
22 insurance – 4,000 Operating Expenses —----------------- 120, 000
Other Income —-------------------------- 16, 000
30 salaries – 23,000
Other Expenses —----------------------- 3, 000

How much is the net cash flow from How much is the cost of goods available for
investing activities? sale?
a. (1, 000) a. 460, 000
b. (2, 000) b. 472, 000
c. 1, 000 c. 448, 000
d. 2, 000 d. 470, 000.
65. Riggy Company provided you with 67. Riggy Company provided you with
the unadjusted selected accounts on the unadjusted selected accounts on
December31, 200E. December31, 200E.
Sales —-------------------- 850,000 Sales —-------------------- 850,000
Less: sales return —----50,000 Less: sales return —----50,000
Net sales —---------------800,000. Net sales —---------------800,000.

Account receivable —-- — 74,000 Account receivable —-- — 74,000

Less: Allow for bad debts – 12,000 Less: Allow for bad debts – 12,000
Net realizable value —------- 62,000 Net realizable value —------- 62,000

Beginning inventory —---- 45,000 Beginning inventory —---- 45,000

Ending inventory —---------60,000 Ending inventory —---------60,000

Freight in —------------------- 12,000 Freight in —------------------- 12,000

Freight out —------------------ 20,000 Freight out —------------------ 20,000

If bad debts instead are estimated to be What is the journal entry to set up the
10% of accounts receivable, what is the ending inventory?
adjusted balance of the allowance for bad a. Ending inventory 60, 000 Beginning
debts account? Inventory 15, 000 Income & Exp.
a. 53, 800 Summary 45, 000
b. 52, 600 b. Inventory 60, 000 accounts payable
c. 66, 200 60, 000
d. 7, 400 c. Inventory 15, 000 Income & Exp.
66. Based on the following information Summary 15, 000
provided By Max trading Company d. Inventory 60, 000 Income & Exp.
on December 31,200C, the end of its Summary 60, 000
accounting period:
Sales —--------------------------------- 780, 000 68. Based on the following audited
Sales Returns and allowances — 15, 000 financial statements of Fast Truckers
Sales Discount —-------------------- 19, 000 at the end of December 31, 200E:
Purchases —-------------------------- 420, 000
Freight In —---------------------------- 12, 000
 Using the accrual basis of
accounting, what is the beginning
capital?

Trucking services fees collected— 32,000

Trucking services fees uncollected — 18,000
Expenses paid —-- 27,000
Expenses unpaid —- 2,000
Non-cash expenses — 1,000
Total assets —--- 180,000
Total liabilities —-- 25,000

a. 100, 000
b. 135, 000
c. 75, 000
d. 145, 000

69. Accounts Receivable less allowance

for bad debts equals
a. Net appraised value
b. Net book value
c. Carrying amount
d. Net realizable value
70. Which of the following checks can
not been cashed but instead merely
deposited ?
a. Stale check
b. Crossed check
c. Dishonored check
d. Post dated check
71. .
72. .
73. .