QUIZ NO.

22

NAME _____________________________ SCORE______________________

YEAR & SECTION _______________________ DATE______________________

TEST I Instruction: From Column A, choose the correct term and write your letter choices in the spaces provided before the numbers in Column B.

Column A

A. Obsolescence H. Maker O. Payee

B. Book Value I. Capital Expenditures P. Face Value
C. Cost J. Inadequacy Q. Maturity Value
D. Social Security System K. Rebate R. Interest Income
E Salary L. Promissory Note S. Interest Expense
F. Wage M. Payroll T. Maturity Date
G. Bureau of Internal Revenue N. Allowance U. Creditor

Column B

1. The principal amount to be paid on the note.

2. The agency where the business-employer should remit the taxes withheld from the employees and workers.
3. Salaries and wages paid to all employees and workers.
4. Amount paid in cash or its cash equivalent for properties acquired.
5. Inability of the property to meet the current demand of the business.
6. All cash outlays charged to the asset account.
7 Discount granted for paying an account promptly.
8. Reduction in the price of an asset acquired for being defective or not of the correct specification.
9. Compensation paid to the worker based on an hourly rate or piece rate.
10. In a promissory note, the party who promises to pay.
11. The interest to be recognized by the payee.
12 Unexpired cost of properties or cost less accumulated depreciation.
13. The property becomes out of date because of the introduction of better models.
14. A written to pay a specified sum of money on demand or at a definite time.
15. The amount to be paid on the due date of a note.
II. Multiple Choice

1. Land was acquired at a cost of P15, 000 in 2005. Its current market value is P300, 000. Attached to the property is an outstanding mortgage payable of P20, 000. This property
was invested by the owner in a real estate business. If mortgage is assumed by the business, the land will be debited for
a. P150, 000 b. P130,000 c.P130,000 d. P280,000
2. Refer to no 1), if mortgage is assumed by the business, the capital of the owner should be credited for:
a. P280, 000 b. P555, 000 c.P130, 000 d. P150, 000
3. An equipment was purchased on Jan.1, 2008 for P600, 000 less a 10% trade discount. The company paid freight of P5, 000 and insurance of P10, 000 to transport the
equipment to its place. It also paid P16, 000 for the yearly insurance of the equipment as at January 1, 2008?
a. P615, 000 b. P555, 000 c.P631, 000 d.P571, 000
4. Refer to no. 3 above. What was the book value of the equipment on Dec. 31, 2009?
a. P515, 000 b.P455,000 c.P531, 000 d.P471, 000
5. A machine costing P100, 000 which was already 50% depreciated was sold by Sol Travel Agency for P70, 000. Sol Travel should recognize a
a. gain of P20, 000 b. loss of P20, 000 c. gain of P30, 000 d. loss of P30, 000
6. Ned Echanis bought the printing company owned by Perez. She paid for the following net assets:
Per Books Agreement on each amount
Cash P 25, 000 not included in the purchase
Accounts Receivable 20, 000 less 10% uncollectible accounts
Furniture & Fixtures 50, 000 fair market value is P45, 000
Printing Equipment 2, 500, 000 fair market value is 85% of cost
Note Payable to PNB 1, 000, 000 to be assumed by Echanis
Total assets taken over amounted to
a. P2, 188, 000 b. P1,188, 000 c. P2, 213, 000 d. P1,213, 000
7. Refer to number 6. Echanis, Capital should be credited for
a. P2,188, 000 b. P1,213, 000 c. P2,213, 000 d. P1, 188, 000
8. The following cash transactions occurred during the month of May:
1. Collection from customers : P50, 000 in cash; P150, 000 in checks
2. Payments for various expenses, P20, 000 in cash and P10, 000 in checks.
3. Deposits to the bank: P10, 000 in cash, P100, 000 in checks.

What is the balance of the cash in bank account?

a. P240, 000 b. P140, 000 c. P100, 000 d. P110, 000
9. A truck was purchased from Bulacan with a list price of P500, 000. Terms offered are: P450, 000 if paid in cash, P500, 000 if after 30 days. Legal fees paid by the buyer to
transfer ownership was P7, 500. If the buyer chose to pay after 30 days, how much should be debited to truck account?
a. P507, 500 b. P500, 000 c. P450, 000 d. P457, 500
10. Lucilla Estrella, owner of Doll Face Saloon, withdrew an Equipment which cost P12, 500 but has a current market value of P 4, 000. It is 40% depreciated. Estrella Drawing
should be debited for
a. P12, 500 b. P4, 000 c. P8, 500 d. P7, 500 e. P5, 000
 QUIZ NO. 23

NAME_______________________ SCORE_____________________

YEAR &SECTION_________________________ DATE_____________________

I. The following are the employees of Daily Machine Works:

Employee Position Semi-monthly Tax Status

Earnings
Waldo Po Machinist P4, 000 Married, 1 dependent
Baldo Fiero Machinist 4, 500 Head of Family, 1 dependent
Claudio Rayes Clerk 3, 500 Single
Nando Pura Secretary/Cashier 3, 500 Married, 2 dependents
Peter Garcia Clerk-Messenger 3, 000 Married, no dependent
Required:
A) Prepare a payroll sheet with deductions for Withholding Tax, SS, Philhealth and HDMF For the period from April 16 to 30, 2009.

DAILY MACHINE WORKS

PAYROLL SHEET
FOR THE PERIOD _____________
Name Gross Earnings Withholding tax SS Philhealth HDMF Net Earnings Signature

B) Prepare a schedule of Employers share for SS, Philhealth, EC and HDMF contributions.
Names SS Philhealth EC HDMF TOTAL
C. Entries to record payroll, employers contribution and remittance to the BIR and SSS. Do not forget that the first semi-monthly payroll has a withholding tax deduction.

Date Accounts and Explanations F Debit Credit

 QUIZ NO. 26

NAME_______________________________ SCORE_______________________
YEAR & SECTION_________________________ DATE__________________________

TEST 1.
A. On the space provided before each number, write the correct letter choice corresponding to the proper valuation term described below:

1. Value of the receivables after deducting the allowance for bad debts.
2. Recovery value of an asset at the end of its estimated useful life.
3. Productive value of an asset representing its ability to yield service.
4. The net amount of a depreciate asset after deducting accumulated depreciation.
5. The amount that could be paid for an asset at an arms length transaction.

Letter Choices: a. utility value c. net realizable value e. residual value

b. book value d. market value f. face value

B. On the space provided before each number, write the correct letter choice corresponding to the applicable accounting assumption/principle described below:

1. Requires that expenses incurred in producing revenues be deducted from revenues generated during the accounting period.
2. Under this principle, regardless of cash flow, income is recognized as earned when service has been rendered and expense is recognized as incurred when
service has been received or asset has been used up.
3. Cash paid or its equivalent should be used to measure assets on the date that these are acquired.
4. Revenue should be recorded when there is an inflow of net assets from the sale of goods or delivery of service.
5. The life3 of the business is divided into uniform periods of tome so that that accountant may be able to prepare financial statements.
6 Under this concept, net income is the same as the net cash flows from operating activities.

Letter Choices: a. Cash c. Accounting Period e. Accrual g. cost

b. Matching d. Revenue Recognition f. Objectivity
C. On the space provided before each number, write the correct letter choice corresponding to the applicable account used for adjustment:

1. Expenses incurred but not yet paid.

2. Provision for uncollectible accounts.
3. Income earned but uncollected.
4. Precollection of services to be rendered.
5. Prepayments of services to be received or assets to be used.
6. Used up or expired portion of the utility value of a no-0current asset.

Letter Choices:
a. Accrued Income c. Depreciation e. Accrued Expense
b. Unearned Income d. Bad Debts f. Prepaid Expense

TEST II. Listed below are the next six accounting steps to be performed after the trial balance has been prepared. Arrange these in a proper sequence. Write the numbered sequence on the space
provided.

journalize and post the adjusting entries

journalize and post the closing entries
Prepare the adjusted trial balance
Complete the worksheet
Prepare a post closing trial balance
Prepare the financial statements

TEST III. From the following selected balance and additional information, prepare the adjusting entries at year-end:
Debit Credit
Accounts Receivable P120, 000
18% Notes Receivable 100, 000
Supplies 4, 500
Furniture & Fixtures 72, 500
Service Fee Revenues 1, 750, 000
Utilities Expense 16, 000

a. Bad accounts are estimated to be doubtful at 5% of the accounts receivable.

b. The customers note is for 30 days, dated December 16.
c. Used supplies amounted to P500.
d. Estimated residual value of furniture and fixtures is P8, 500 with a useful life of 10 years. Acquisition date was March 1.
e. Unpaid bills received from PLDT p2, 500 and Meralco P6, 000.

Date Particulars Debit Credit

 QUIZ NO. 27

NAME_____________________________ SCORE__________________
YEAR & SECTION________________________ DATE______________________________

Test I. Lucy Graham is the author of a bestseller book being published by Alpha Publishing House. Her contract states that she is to receive P50 per copy sold. A check for P10, 000 was advanced to
Lucy which she recorded as royalty fees income.

a. Assuming that Alpha Publishing House was able to sell 180 copies, what adjusting entry will she prepare on December 31?

Date Particulars Debit Credit

b. Assume instead that no check was received in advance and that at the end of the year Alpha Publishing House was able to sell 150 copies.

What kind of adjustment will she prepare?_____________________________

Give the adjusting entry.

Date Particulars Debit Credit

TEST II. The trial balance of Young Talent Agency as at December 31, 2009, includes the following account balances:
Prepaid Insurance P 90, 000
Salaries Expense 120, 000
Unearned Rent 450, 000
Allowance for Bad Debts 1, 500
Account Receivable 75, 000
Advertising Expense 15, 000

Additional information revealed the following:

 1. Prepaid insurance is for one year starting March 31, 2009.
2. Accrued salaries amounting to P4, 500 was unrecorded.
3. Only P12, 000 of the unearned rent represents advance rental for January 2010.
4. Provision for allowance for bad debts should be maintained at 5% of the accounts receivable.
5. Advertising paid was for newspaper and which will run for six Sundays starting the second Sunday of December.

Date Particulars Debit Credit

Give the effects of failing to recognize the adjusting entries in Test II BY using O if overstated, U if understated, N if there is no effect.

Revenues Expenses Assets Liabilities Owners Equity

a.
b.
C
d.
e.
 QUIZ NO. 28

NAME_____________________________ SCORE_________________
YEAR & SECTION______________________ DATE_______________________

Test I.

1. Adjusting entries are made to ensure that

a. assets, liabilities, income and expenses have correct balances at the end of the accounting period.
b. revenues and expenses are recognized in the period in which they are earned and incurred.
c. part of the asset that has been used up is recognized as expense.
d. all of the above.
2. An accrued expense is classified as a/an
a. current asset c. operating expense
b. current liability d. operating income
3. A prepaid expense is classified as a/an
a. current asset c. operating expense
b. current liability d. operating income
4. Accrued income is classified as a/an
a. current asset c. operating expense
b. current liability d. operating income
5. Adjustment for unearned revenue requires a/an
a. decrease liabilities and increase revenues
b. increase assets and increase revenues.
c. decrease revenues and decrease assets.
d. increase assets and increase liabilities.
6. Adjustment for accrued revenue requires a/an
a. decrease assets and decrease revenues
b. increase assets and increase revenues.
c. decrease liabilities and increase revenues.
d. increase liabilities and decrease revenues.
7. A trial balance prepared at the end of the year before preparing the financial statements is called
a. adjusted trial balance
b. closing trial balance
c. year end trial balance
d. post-adjusting trial balance
8. Entries prepared at the end of every accounting period to clear the books of temporary accounts.
a. adjusting entries
b. closing entries
c. reversing entries
d. post-closing entries
9. A tool used to summarize all information needed to make adjusting entries and facilitate the preparation of the financial statements as well as the closing entries is called
a/an
a. T account
b. Post Closing Trial Balance
c. Unadjusted Trial Balance
d. Worksheet
10. This prepared after making the closing entries, again to prove the quality of the debits and the credits.
a. Adjusted Trial Balance c. Financial Statements
b. Post Closing Trial Balance d. Accounting Equation
11. This is a temporary account used to clear the books of revenues and expenses, the balance of which represents the net income or net loss for the period.
a. Income Summary
b. Owners Capital
c. Owners Drawing
d. Accounting Equation
12. These are the accounts that must always be closed every accounting period.
a. Revenues
b. Expenses
c. Owners Drawing
d. all of the above
13. Only one of the following statement is true:
a. Only nominal accounts are contained in an adjusted trial balance.
b. The accrual principle records revenue only when cash is received and records expenses only when cash is paid.
c. The post closing trial balance provides the basis for the preparation of the financial statements.
d. The worksheet is prepared at the end of the accounting period to work out the adjustments.
14. The trial balance shows supplies ofP1, 350. If P350 worth supplies are on hand at the end of the accounting period, the adjusting entry is
a. Supplies 350
Supplies Expense 350
b. Supplies 1, 000
Supplies Expense 1, 000
c. Supplies Expense 350
Supplies 350
d. Supplies Expense 1, 000
Supplies 1, 000
15. Atty. Macaraig incurred P2, 500 salary for the last week of December 2009 but this will paid on January 2010. The adjustment on December 31, 2009 is:
a. No adjustment is needed
b. Salaries Expense 2, 500
Salaries Payable 2, 500
c. Salaries Expense 2, 500
Cash 2, 500
d. Salaries Payable 2, 500
Cash 2, 500
16. Prepaid Advertising of P7, 200 represents payment made on 24 monthly magazine issues starting October 1, 2009. The adjustment on December 31, 2009 is:
a. Advertising Expense 900
Prepaid Advertising 900
b. Advertising Expense 4, 500
Prepaid Advertising Expense 4, 500
c. Advertising Expense 3, 600
Prepaid Advertising 3, 600
d. Prepaid Advertising 3, 600
Advertising Expense 3, 600