Quiz #4

• Each of the ff. is a major type of adjusting entries except:

  a Prepaid Expenses

  b. Accrued Revenues

  c. Accrued Expenses

  d. Earned Revenues
• The amount recoverable upon retirement of fixed asset is known as:

  a Depreciable cost

  b. Book value

  c. Residual value

  d. Asset Cost
• Entries required at the end of accounting period to bring the accounts  up to date

  a journal entries

  b. Correcting entries

  c. compound entries

  d. adjusting entries
• All adjusting entries involve:

  a asset and liability account

  b. asset and equity account

  c. asset and contra asset account

  d. Balance sheet and Income statement account
• accrued Revenues

  a Increase assets

  b. decrease assets

  c. increase liabilities

  d. decrease liabilities
• Adjusting Entries are prepared to correct errors

  1. True
  2. False
• Acquisition of Prepaid Expenses requires an adjusting entry at the end of the period

  1. True
  2. False
• Prepaid Expenses are expense accounts appearing on the income statement

  1. True
  2. False (balance sheet)
• Under the expense method of recording prepayment, initial entry is a debit to Prepaid expense account

  1. True
  2. False (expense account)
• The amount of adjustment for a deferral varies on the method used to record the original transaction

  1. True
  2. False
• Supplies recorded is P 11,375 while Remaining Supplies at year end P 2,785:

  a Dr. Supplies expense Cr. Supplies P 8,590

  b. Dr. Supplies expense Cr. Supplies P 2,785

  c. Dr. Supplies expense Cr. Supplies P 11,375

  d. No entry
• Rent expired during the year P 36,000 from P 72,000 rent paid in advance recorded using Expense method

  a Dr. Rent expense Cr. Prepaid Rent P 36,000

  b. Dr. Rent expense Cr. Prepaid Rent P 72,000

  c. Dr. Prepaid Rent Cr. Rent expense P 36,000

  d. Dr. Prepaid Rent Cr. Rent expense P 72,000
• Bought equipment last March 1, 2022 worth P 35,000 with residual value worth 5,000 and useful life of 5 yrs. Compute for depreciation using straight line method and choose the adjusting entry for December 31, 2022.

  a Dr. Dep Exp - Equipment/Cr. Accum. Dep - Equipment - P 6,000

  b. Dr. Dep Exp - Equipment/Cr. Accum. Dep - Equipment - P 5,000

  c. Dr. Dep Exp - Furniture/Cr. Accum. Dep - Furniture - P 6,000

  d. Dr. Dep Exp - Furniture/Cr. Accum. Dep - Furniture - P 5,000
• Find the carrying value of the equipment on December 31, 2023 as per #13:

  #13 Bought equipment last March 1, 2022 worth P 35,000 with residual value worth 5,000 and useful life of 5 yrs. Compute for depreciation using straight line method and choose the adjusting entry for December 31, 2022.

  • Dr. Dep Exp - Equipment/Cr. Accum. Dep - Equipment - P 5,000

  a P 25,000

  b. P 24,000

  c. P 23,000

  d. P 19,000
• Assuming an 2022 outstanding receivable balance of P 650,000 in which 5% is deemed uncollectible. Allowance for uncollectible has a debit balance of P 7,500. Record the adjusting entry for the year end provision for uncollectible accounts

  a Dr. Uncollectible accounts expense/Cr. Allowance for uncollectible accounts - P 32,500

  b. Dr. Uncollectible accounts expense/Cr. Allowance for uncollectible accounts - P 25,000

  c. Dr. Uncollectible accounts expense/Cr. Allowance for uncollectible accounts - P 40,000

  d. Dr. Uncollectible accounts expense/Cr. Allowance for uncollectible accounts - P 7,500
• Based on #15, assume the ff. year, outstanding balance of P 500,000 in which 5% is deemed uncollectible. How much is the 2023 year-end adjusting entry?

  #15 Dr. Uncollectible accounts expense/Cr. Allowance for uncollectible accounts - P 40,000

  a Dr. Allowance for uncollectible accounts/Cr. Uncollectible accounts expense - P 7,500

  b. Dr. Uncollectible accounts expense/Cr. Allowance for uncollectible accounts - P 25,000

  c. Dr. Uncollectible accounts expense/Cr. Allowance for uncollectible accounts - P 32,500

  d. Dr. Uncollectible accounts expense/Cr. Allowance for uncollectible accounts - P 7,500
• On December 31, 2023 a 60 day 9% Notes Payable has a balance of P 240,000 per general ledger. The note was issued on December 5, 2023. How much should be the accrued interest taken on this note for year 2023?

  a P 3,600

  b. P 2,040

  c. P 1,560

  d. P 60
• Julius earned a salary of P 4,000 for the last week of June. He will be paid on July 1. The adjusting entry of his employer on June  30 (end of accounting period) is.

  a No entry is required.

  b. Dr. Salaries Expense Cr. Salaries Payable 4,000

  c. Dr. Salaries Expense Cr. Cash 4,000

  d. Dr. Salaries Payable Cr. Cash 4,000
•  Advertising Expense balance per General Ledger amounted to P 50,000 of which P 8,000 applies to year 2023, adjusting entry for December 31, 2023 includes Debit to:

  a Prepaid Advertising 8,000

  b. Advertising Expense 8,000

  c. Prepaid Advertising 42,000

  d. Advertising Exp 42,000
• Notes Receivable has a balance of P 120,000 received from a customer in settlement of an open account on November 16, 2023. It is a 90-day 12% note. Adjusting entry for the interest at year-end includes Debit to Interest Receivable by:

  a P 14,400

  b. P 3,600

  c. P 1,840

  d. P 1,800