4, ting and Reporting 2022 tdition by Prof. WIN Batlada, scor PROFESSOR: Which of the folowing steps in the @. Post the Closing entries, take a post-closing trial balance, and j Closing entries, accounting cycle are sted ina logeatorqoyy lourmalne 1, b. Post the Journal entries to the general ledger accounts, prepare a WOrkShon and then take a trial balance, c Take a trial balance, 4. Prepare the Prepare a worksheet, then prepare financial stater trial balance. ments ‘come statement, prepare the balance sheet and then Prepare , The debit and credit analysis of a transaction normal before an entryis recorded in a journal when the entry is posted to the ledger. when the trial balance is prepared at some other point in the accounting cycle. ly takes place pogo Asale on account would be recorded by 2. debiting revenue. b. crediting assets, ©. crediting liabilities, 4. debiting assets, corded by debiting liabilities, b. crediting assets ©. debiting an expense. 4. debiting assets, Atrial balance 2. Proves that debits and credits are equal in the ledger. . b. supplies a listing of open accounts and their balances that are used in prepatst financial statements. c. is normally prepared three times in the accounting cycle. d. all of these.-—_—_ 10. rit statement: A ledger is where the entity intially records transactions and selected other events. second statement: Nominal (temporary) accounts are income and expense unts and are periodically closed. acco a. True, True c. False, True b. True, False d. False, False First statement: The withdrawals account is considered a real account. second statement: The "book of original entry" is also known as the journal. a. True, True c. False, True b. True, False d. False, False First statement: The first step in the accounting cycle is the journalizing of transactions and selected other events. Second statement: Basic steps in the recording process include transferring the journal information to the appropriate account in the statement of financial position. a. True, True . c. False, True b. True, False d. False, False First statement: The trial balance uncovers any errors in journalizing and posting prior to preparation of the statement of financial position. Second statement: The trial balance is a listing of all the accounts and their balances in the order the accounts appear on the statement of financial posit c. False, True a. True, True d. False, False b. True, False First statement: One purpose of a trial balance is to prove that debits and « an equal amount are in the general ledger. Second statement: A general journal chronologically lists transactions and other events, expressed in terms of debits and credits to accounts. c. False, True a. True, True d. False, False b. True, Falsey Prof. WIN Ballado 12 edition b} 3.26 | Basic Fmancio! Accounting and Reporting 202 : ' SCORE: — | NAME | i ESSOF — | SECTION: PROFES Multiple Choice affect the owner's Cay 1. Which of the following does not directly OF indirectly Pita] account? Paying an accounts payable Withdrawals by the owner Earning of revenues Incurring of expenses ange 2. Which of the following transactions correctly maintains the equality in the accounting equation? a. To record collections on account, cash and accounts receivable are increased by P 160,000. To record the purchase of computer equipment, computer equipment is increased and cash is decreased by P46,000. To record payment of notes, notes payable is decreased and cash is increased by P70,000. d. To record payment of rent, rent expense and cash are increased by P8,000. b c Which of the following combinations of trial balance totals suggest the presence of either a transposition error or a number slide? P65,470 debit and P68,170 credit 33,220 debit and P35,420 credit 25,670 debit and P26,670 credit 14,517 debit and P15,477 credit aos 4. The first financial statement that is prepared from the trial balance statement of cash flows. statement of changes in equity. income statement. balance sheet. aoge The amount of cash received or paid during a period is not an adequate measure the economic consequences of an organization's activities because a. many activities may not involve the use of cash, b. cash inflows may represent the result of activities completed in a previo’ period. lalRecording Business Transactions | 3-27 10. in cc. cash outflows may precede or follow th associated. d. Allof the above reasons are correct fe activities with which they are Which of the following is a business event that i transaction? is not considered a recordable An entity receives a product previously ordered, An entity pays an employee for work performed A customer inquires about the availability of a service. Acustomer purchases a service, acge Which of the following is a business event that is also considered a recordable transaction? An entity hires a new employee. A customer purchases merchandise. An entity orders a product from a supplier. An employee sends a purchase requisition to the purchasing department. aoge Balance sheet accounts are permanent accounts. temporary accounts. accounts with debit balances only. adjusting accounts. eaoce A journal entry that contains more than two accounts is called a. a posted journal entry. b. acompound journal entry. can adjusting journal entry. d. an erroneous journal entry. When accounting information is accumulated in individual accounts. » chart « accounts is limited to those accounts that will appear in the balance sheet. a b. changed each year by an entity depending on the results of operations c. a listing of each account that will be used to accumulate information d. used to determine whether a debit or credit balance will appear in each of the accounts at'the end of the accounting period. Which of the following events would not be considered an accounting transaction? Payment of fees to a tax consultant. Purchase of print advertising space for anew i a Sales of a new product during the first month of ona Tabulation of the results of a customer satisfaction survey angeWIN Balada ' - \ o_—en Reporting 2022 Edition by Prof. | 18 | Basic Financial Accounting and Rep* 12. The term footing refers to the ii count. a. process of obtaining the top number in a" or ait, b. process of obtaining the bottom number in C. process of posting. 4, addition of a column of figures. rocess? 13. What function do general ledgers serve in the accounting pl Summarizing Recording Classifying Reporting ange 14. A chart of accounts is a (an) & journal. b. flowchart of all transactions. ©. list of names of all account titles. 4. accounting procedure manual. 15. The purpose of the ledger is to a. b. © record chronologically the day's transactions. keep a record of documentation to support each transaction. maintain a separate account for each balancé sheet and income statement accounts. make sure that all balance sheet and income statement accounts have norm balances at all times. 16. The first step in recording a transaction in a journal is to @. record the debit. b. record the date. ¢. record the credit. d. write an explanation. 17. Which of the following accounts is classified differently from the others listed? Notes Payable Unearned Revenues Mortgage Payable Art Revenues eooe 18. Which of the following accounting steps is accomplished after the others listed? a. Post the entry. b. Prepare the trial balance.Recording Business Transactions | 3.29 c. Apply the rules of double entry, d. Record the entry at the end of an accounting period, the e Equity does not necessarily balance. Which equation? i ‘uation Assets «© Liabilities + Owner's o f the following actions balances the Subtract revenues and add expenses to owners’ equity a b, Subtract revenues from owners’ equity and add expenses to assets, c . Add the difference between revenues and expenses to Owner's equity. Add revenues and subtract expenses from assets, 20. Which of the following steps in the accounting cycle are listed in logical order? a. Prepare the income statement, prepare the stat positi fement of financial then prepare a worksheet. : wines b. Post the journal entries to the ledger accounts, prepare a worksheet, and then take a trial balance. c. Journalize the closing entries, post the closing entries, and then take a post- closing trial balance. d. Post the closing entries, take a post-closing trial balance, then journalize the closing entries. Use the following information to answer the questions below. The following is the trial balance for Jennifer Perez Ads: Jennifer Perez Ads Trial Balance Jan, 31, 2021 Cash 30,000 Accounts Receivable zo Art Supplies peed Office Supplies an Prepaid Rent oD Prepaid Insurance fats Art Equipment 30,000 Office Equipment psolean Accounts Payable 150,000 Perez, Capital ? Perez, Withdrawals ? Advertising Revenues , Salaries Expense 50,000 Utilities Expense 30,000 PA ae Telephone ExpenseIN Balada wil wO__ Son hiner’ evownting and Reporting 2022 Edition by Prof. 2s. and the balanc, * tHe Valance of the Peres, Withdrawals account SE ee cient eae Se Salanes Qxpense account were P50,000, what woul & P280.000 db PSS.000 © 370.000 & = PSS0.000 * the Mal bolance showed a balance of P70,000 in the Perez, Withdrawals Account an @ Balance of PSO,000 In the Salaries Expertse account, what Would be the Smount of Advertising Revenues for the period? & P330.000 b Paso.o00 © PAS0.000 @ 430,000 im the trial balance, total assets equal @. 330,000. ‘b. P230,000. © 430,000. &. P420,000. ff the trial balance showed a balance of P80,000 in the Salaries Expense account and & balance of P350,000 in the Advertising Revenues account, what would be the #f the trial balance showed a balance of P40,000 in the Salaries Expense account »¢ 2 balance of P300,000 in the Advertising Revenues account, what would be the mount of the Perez, Withdrawals account? @ P2S0,000 b. P190,000 © P140,000 @. PS0,0003-48 | Basic Finorniol Accounting and Neporting 2022 Fditie | scom NAME SECTION. | PRON SOR Problem #10 Journalizing Transactions The chart of accounts for Vincent Boron Delivery Service is a6 follows Assets Income 110 Cash AO Delivery Mevenues 120 Accounts Receivable bepenves 130 Prepaid insurance S10 Salaries typense | 140 Service Vehicle 520 Gas and Oil Expense i 150 Office Equipment 530 Repair Expense Liabilities 540 Advertising Expense 210 Accounts Payable 550 Supplies Expense Owner's Equity 590 Miscellaneous apense 310 Boron, Capital 320 Boron, Withdrawals The entity completed the following transactions in May 2023, May 3 Placed four week-end advertisem, ents in the Sun Daily Central Luzon for P18,500; the amount is due in 30 days Sought supplies on account from Supplies, nc., 8,800 Boron invested in the business own office equipment with a fair market value of P52,500. Received P61,200 from charge customers to apply on their accounts. Received a bill from Park Trucking for repair Services pert 8,500. 6 is 17 22 26 Paid Supplies, Inc., P8,800 in full payment of account 28 Paid salaries to employees, P21,000 30 Received P39,000 for services performed 31 Received and paid gasoline and oil bill Felating to the service vehicle, P12,500 31 Billed South China Bank for services performed, P45,000 31. Boron withdrew cash for personal use, P14,500 Requires Preuare the journal entries for the May transactions,n by Prof. WIN Ballada tio! 3.52 | Basic Financial Accounting and Reporting 2022 Edit — SCOR! PROFESSOR: [ PROFESSOR: | Problem #14 tatements Journalizing, Posting, Preparing a Trial Balance and Financial St Vincent Fabella owns the Jose Rizal Heavy Bombers, a collegiate perl team in the Phil-Am Basketball Association. Presented below is the Nov. 30, 202 a balance representing activities from Jan. 1, 2022 to Nov. 30, 2022, together with the account numbers and titles: Jose Rizal Heavy Bombers Trial Balance Nov. 30, 2022 Acct. No. Account Titles. Debit Credit 110 Cash P 1,129,800 120 Accounts Receivable 3,712,500 130 Uniform Supplies 31,050 140 Prepaid insurance ao 150 Land 2,025,000 160 Training Facilities 12,750,000 170 Training Equipment 2,625,000 180 Player Contracts 11,250,000 210 Notes Payable P 1,800,000 220 Accounts Payable 4,725,000 230 Mortgage Payable 10,500,000 310 _Fabella, Capital 17,643,750 320 _Fabella, Withdrawals 1,875,000 410 Game Attendance Revenues 10,125,000 510 Salaries Expense 4,875,000 520 Advertising Expense 400,950 530 Travel Expense 1,532,400 540 Laundry Expense 528,000 550 Medical Expense 194,550 560 Utilities Expense 1,734,000 570 Miscellaneous Expense 130,500 Totals _P44,793,750 pa, 793 751 EO _ 044,793,750 During the month of December 2022, the Bombers were participating in the 2022 Playoffs and the following transactions took place: Dec. 1 Acquired the contract of Agustin Tiongco from the Negros Navigators for P1,875,000; paying P225,000 in cash and financing the P1,650,000 by issuing a note payable. 2 Collected P2,809,500 on accounts receivable from season-ticket holders.aemeeanes Recording Business Transactions |_ 3-53. pec. 3 Settled accounts payable, P1,657,500, 4 Paid for TV advertising, P78,600. 5 Acquired on account additional uniforms for the upcoming series with the San Alcantara Padres, P30,750. 9 __ Billed season-ticket holders for the last five games, P320,250. Paid the amount due on this date for a note payable, P600,000. 10 11 Acquired insurance for the months of December to June, P215,250. Record as prepaid insurance. 12. Acquired additional training equipment on account, P319,500. 15 _ Paid players’ salaries, P1,136,250. 17 Received P3,316,050 cash for tickets to playoff games. 19 __ Paid travel expenses to San Alcantara, P558,000. 20 Paid laundry expenses, P12,600. 23 Paid creditors, P941,850. 25 Paid miscellaneous expenses, P26,850. 26 Paid medical expenses, P18,900. 27 Paid utilities expenses, P210,450. 28 Paid players’ salaries, P1,240,650. 30 Vincent Fabella withdrew P250,000. Required vember 2022 trial balance into the appropriate 1. Enter the amounts from the Nov ledger accounts. ries for the December transactions. 2. Prepare the journal ent page 12 as the journal page reference 3. Post the entries to the ledger using 4. Prepare a trial balance as at Dec. 31, 2022.~ 5. Prepare an income staternent and a statement of changes in equity ended Dec. 31, 2022, and a balance sheet a5 at Dec. 31, 202 accomplishment of this requirement may be deferred). the ven (Nore3-56 _|_Basic Financial Accounting and Reporting 2022 Edition by Prof. WIN Ballada [Nam SCORE: | SECTION: PROFESSOR: Problem #17 Correcting a Trial Balance The June 2022 trial balance for Davao Duplicators, owned by Allan Brillantes i, presented below. The regular bookkeeper has resigned and left the following tri balance. It did not balance Davao Duplicators Trial Balance June 30, 2022 Cash P 44,800 Accounts Receivable 189,600 Supplies 70,800 Equipment 560,000 Accounts Payable P 72,600 Brillantes, Capital 513,000 Brillantes, Withdrawals 50,000 Revenues 371,600 Salaries Expense 35,000 10,000 Rent Expense Utilities Expense Totals __P916,600__ 1,017,200 Upon reviewing the trial balance and the process of transferring the amounts in the ledger accounts to the trial balance, two errors were discovered: The debit column in the trial balance was footed incorrectly. a The balance in the accounts payable ledger account of P62,700 was transferred as P72,600 b When the balances of the ledger accounts were recomputed, two more errors discovered: ‘The Utilities Expense account balance was overstated by P1,800, The total debits in the Cash account amounted to P184,600 and the credits totale 149,800, Discovered four more errors when postings were retraced from the journal to the Cc: 4. ledger: €. Adebit posting to Accounts Receivable in the amount of P52,000 should have been P5,200. f. Adebit posting to Accounts Payable for P46,000 was missing, 8. Acredit posting to Revenues in the amount of P7,600 was missing h. Acredit of P31,000 was posted to Accounts Payable rather than P30, 100, Required: Prepare a corrected trial balance.