The document is a quiz on adjusting entries for accounting periods. It contains 5 multiple choice questions testing understanding of adjusting entries, why they are necessary, examples of different types of adjustments including accrued expenses and revenues, and deferred revenues. It also contains 4 word problems testing the ability to calculate adjusting entries for rent revenue, salary expenses, supplies expenses, and the effects of omitting adjustments. The key concepts covered are adjusting entries, revenue and expense recognition principles, and how adjustments impact financial statements.
The document is a quiz on adjusting entries for accounting periods. It contains 5 multiple choice questions testing understanding of adjusting entries, why they are necessary, examples of different types of adjustments including accrued expenses and revenues, and deferred revenues. It also contains 4 word problems testing the ability to calculate adjusting entries for rent revenue, salary expenses, supplies expenses, and the effects of omitting adjustments. The key concepts covered are adjusting entries, revenue and expense recognition principles, and how adjustments impact financial statements.
The document is a quiz on adjusting entries for accounting periods. It contains 5 multiple choice questions testing understanding of adjusting entries, why they are necessary, examples of different types of adjustments including accrued expenses and revenues, and deferred revenues. It also contains 4 word problems testing the ability to calculate adjusting entries for rent revenue, salary expenses, supplies expenses, and the effects of omitting adjustments. The key concepts covered are adjusting entries, revenue and expense recognition principles, and how adjustments impact financial statements.
The document is a quiz on adjusting entries for accounting periods. It contains 5 multiple choice questions testing understanding of adjusting entries, why they are necessary, examples of different types of adjustments including accrued expenses and revenues, and deferred revenues. It also contains 4 word problems testing the ability to calculate adjusting entries for rent revenue, salary expenses, supplies expenses, and the effects of omitting adjustments. The key concepts covered are adjusting entries, revenue and expense recognition principles, and how adjustments impact financial statements.
THEORIES 1. Adjusting entries involve A. Only real accounts B. Only nominal accounts C. Only capital accounts D. One real and one nominal account 2. Why are adjusting entries necessary? A. Transactions take place over more than one accounting period B. To make debits equal credits C. To close nominal accounts at year-end D. To correct erroneous balances in accounts 3. The adjusting entry for depreciation has the same effect as the adjusting entry for A. An unearned income B. A prepaid expense C. An accrued expense D. An accrued income 4. An adjusting entry to accrue wages incurred but not yet paid is an example of A. Aligning recorded costs with appropriate accounting periods. B. Aligning recorded revenue with appropriate accounting periods. C. Reflecting unrecorded expenses incurred during an accounting period D. Reflecting unrecorded revenue earned during an accounting period 5. Which of the following items represents a deferral? A. Salaries payable B. Prepaid insurance C. Fees earned D. Accumulated depreciation
Problem 1: The following information was provided by the records of MAYAMAN APARTMENT (a sole proprietorship business) at the end of December 31, 2025.
Rent revenue: Rent revenue collected during 2025 for 2025 occupancy P 512,000 Rent revenue earned for occupancy in December 2025 will not collected until 2026 25,000 On December 2025, collected rent revenue in advance for January 2026 33,000
Salary Expense: Cash payment made on January 2025 for employee salaries earned on December 2024 P 5,000 Salaries incurred and paid during 2025 64,000 Salaries earned by employees on December 2025 will not be paid until January 2026 2,000 Cash advance to employees on December 2025 for salaries that will be earned on January 2026. 3,000
Supplies used: Maintenance supplies inventory, December 31, 2024 3,000 Maintenance supplies purchased for cash during 2025 8,000 Maintenance supplies inventory, December 31, 2025 2,500
In conformity with the revenue and matching principles, compute the following amounts for the year 2025. 1. Rent revenue. 2. Salary expense. 3. Maintenance supplies expense.
Problem 2: For the year 2025, P1,500,000 of salaries expense was reported in the income statement. The previous year’s statement of financial position reported P175,000 of salaries payable. An analysis of the payroll records showed salary payments during the year of 1,290,000.
1. What is the amount of accrued salaries on December 31, 2025?
2. What is the effect if the company omitted the adjustment to the ff? a. Revenue b. Net Income c. Total Liabilities
Problem 3: MANIWALA KA LANG CO. paid P600,000 for supplies during 2013. the January 1, 2025 balance of supplies inventory was P440,000. A physical count of the supplies on hand on December 31, 2025 revealed an amount of 325,120. Assume the use of Asset method.
1. What amount should be reported as Supplies expense for the year ended December 31, 2025? 2. Assume the company debited its purchase into a nominal account, then how much is the supplies be recorded in the balance sheet? 3. An omission of adjustment would have an effect to the company’s net income, if any, amounting to?
Problem 4: The accountant for WAG KANG KABAHAN CO. mistakenly omitted adjusting entries for unearned income now earned, P10,390 and accrued salaries, P2,440.
1. If the profit for the current year had been P437,720 prior to adjustments above, what would be the correct profit if proper entries had been made?
“Everyone who competes in the games goes into strict training. They do it to get a crown that will not last, but we do it to get a crown that will.” 1 Corinthians 9:25
