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Acctg 111 Assign.3 Reviewer

Accounting Technology (University of Cebu)

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ACCOUNTING 111 ASSIGN. 3

I.Modified Matching Type: From the list of possible answers, write the CAPITAL
LETTER that corresponds to each of the given statement.

a. Breakeven Sales k. going concern

b. Profit l. interim financial statements
c. A=L+P m. calendar year
d. Business Entity n. conservatism
e. Owner’s Equity o. manufacturing
f. Solvency p. timeliness
g. Balance Sheet q. hybrid company
h. Books of Accounts r. partnership
i. Matching Principle s. materiality
j. Income Statement t. neutrality

___E__ 1. Similar to Capital, Proprietary interest and Networth

___B__ 2. Revenue exceeds expense
___C__ 3. Basic accounting equation
___J__ 4. Shows the results of operation at the end of the period.
___A__ 5. Total cost and expenses is equal to sales.
___I__6. Combined concept of Revenue and Expenses recognition.
___D__7. Business is separate from the owner.
___H__8. Records kept by the business.
___G__9. Shows the financial condition as of the given date.
___F__10. Cash availability to meet maturing obligation.
___M__11. Accounting period starts Jan. 1 and ends on Dec. 31 of the same year.
___R__12. Capital is provided by two or more persons.
___P__13. Financial information must be available in time of need or it will defeat the purpose.
___K__14. Business has a continuous life
___T__15. Financial reports are fairly presented and must be free from bias.
___L__16. Financial statements of less than a year.
___O__17. Buys materials and converts them to finish products.
___N__18. Anticipate no profit, provide for all probable losses.
___Q__19. Engaged in selling of both services and merchandise.
___S__20. The cost of an item is determined through professional judgment.

II. Computation of the Unknown Accounting Values: Calculate the missing amount.

Case 1: Accounts Payable P 75,000

Accrued Expenses 25,000
Unearned Income 40,000
Mortgage Loan Payable 150,000
N.Escalante, Capital 520,000
How much is the assets? P 810,000

Case 2: Cash in Bank P320,000

Accounts Receivable 105,000
Estimated Uncollectible Accounts ( 10,000)
Supplies Inventory 35,000
Prepaid Expenses 20,000
Building 380,000
Accumulated Depreciation (40,000)
N. Escalante, Capital 520,000
How much is the liability? P 290,000

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Case 3: Cash in Bank P 320,000

Accounts Receivable 105,000
Estimated Uncollectible Accounts (10,000)
Supplies Inventory 35,000
Prepaid Expenses 20,000
Building 380,000
Accumulated Depreciation (40,000)
Accounts Payable 75,000
Accrued Expenses 25,000
Unearned Income 40,000
Mortgage Payable 150,000
How much is the owner’s equity? P 520,000
Case 4: Genia Manapat, Capital P 375,000
Cash in Bank 250,000
Petty Cash Fund 10,000
Land 350,000
Accounts Receivable 90,000
Estimated Uncollectible Accounts ( 2,000)
Prepaid Insurance 10,000
Building 1,000,000
Accrued Interest Income 15,000
How much is the total current assets? P 373,000

Case 5: Building P 1,200,000

Accumulated Depreciation- Building ( 200,000)
Land 500,000
Furniture and Fixtures 85,000
Accumulated Depreciation-Furniture & Fixtures (51,000)
Delivery Equipment 375,000
How much is the total property and equipment? P1,909,000

Case 6: Cash in Bank P120,000

Prepaid Insurance 15,000
Accrued Rent Expense 10,000
Unearned Interest Income 35,000
Supplies Inventory 20,000
Accounts Receivable 100,000
Estimated Uncollectible Accounts ( 3,000)
Office Equipment 65,000
Accumulated Depreciation – Office Equipment ( 13,000)
How much is the total assets? P 304,000

Case 7: Notes Payable P 100,000

Accrued Salaries Expense 8,000
Accrued Income Receivable 7,000
Accounts Payable 35,000
Unearned Rent Income 15,000
Cash in Bank 90,000
Petty Cash Bank 5,000
Mortgage Payable 150,000
Uncollectible Account Expense 2,000
How much is the total liabilities? P 308,000

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Case 8 : Cash in Bank P250,000

Unearned Interest Income 10,000
Accounts Payable 100,000
Supplies Inventory 80,000
Accrued Salaries Expense 15,000
Petty Cash Fund 5,000
Prepaid Rent 20,000
Accounts Receivable 85,000
Estimated Uncollectible Accounts ( 1,000)
How much is the owner’s equity? P 314,000

Case 9: Romeo Velasco, Capital P 275,000

Rent Expense 25,000
Professional Income 100,000
Romeo Velasco, Drawing 30,000
Taxes and Licenses 45,000
Salaries Expense 20,000
Other Income 20,000
How much is the Owner’s Equity at the end? P 275,000

Case 10: Annabelle Delco, Capital P 275,000

Unearned Commission Income 10,000
Commission Income 75,000
Utilities Expense 9,000
Interest Income 15,000
Accrued Interest Income 20,000
Miscellaneous Income 5,000
How much is the total revenue? P 95,000

Case 11: Sofia Gundran, Capital P 400,000

Uncollectible Accounts 8,000
Other Income 10,000
Accrued Rent Expense 15,000
Unearned Service Revenue 20,000
Accrued Interest Income 9,000
Depreciation Expense 30,000
Delivery Equipment 450,000
Taxes and Licenses 7,000
Service Revenue 80,000
How much is the profit from operations? P 45,000

Case 12 : Estimated Uncollectible Account P 6,000

Employee’s Benefits 35,000
Salaries and Wages 110,000
Uncollectible Accounts 15,000
Professional Income 150,000
Depreciation Expense 8,000
Accrued Taxes and Licenses 10,000
Repairs and Maintenance 9,000
How much is the loss from operation? P (27,000)

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Case 13: Profit P10,600

Withdrawal 20,000
Additional Investment 30,000
If owner’s equity beginning was P80,000, how much would be the owner’s
equity end? P 100,600

Case 14: Owner’s equity, Beginning P100,000

Withdrawal during the period 50,000
Additional Investment 30,000
If owner’s equity, end is the same as owner’s equity, beginning, how much
profit generated at the end of the period? P 20,000

Case 15: Accounts Payable P 90,000

Accounts Receivable 150,000
Cash in Bank 280,000
Accrued Rent Expense 10,000
Arthur Ang, Capital 383,000
Prepaid Insurance 18,000
Supplies Inventory 15,000
Arthur Ang, Drawing 20,000
Extract the basic accounting equation: Assets P 463,000
Liabilities P 100,000
Owner’s equity P 363,000

Case 16 : Cash on Hand P 80,000

Professional Income 130,000
Accounts Receivable 120,000
Estimated Uncollectible Accounts ( 3,000 )
Furniture and Fixtures 180,000
Depreciation Expense 30,000
Accumulated Depreciation-Furniture and Fixtures 60,000
Supplies Expense 15,000
Mateo Roa, Capital- Beginning 212,000
Notes Payable 50,000
Mateo Roa, Drawing 30,000
Extract the basic accounting equation: Assets P 317,000
Liabilities P 50,000
Owner’s equity P 267,000

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