ACT110 – Financial Accounting and Reporting

PRELIM EXAM
Answer Sheet (SET A)

Name: ________________________________________________________________ Section: _________________ Score: ___________________

Part I. Theories

1. C 11. B 21. B 31. A 41. B

2. C 12. B 22. D 32. D 42. C

3. A 13. B 23. B 33. B 43. A

4. B 14. A 24. A 34. A 44. B
5. C 15. C 25. B 35. A 45. B

6. B 16. A 26. A 36. B 46. B

7. C 17. B 27. D 37. D 47. D
8. C 18. B 28. B 38. D 48. B

9. B 19. B 29. A 39. A 49. B

10. B 20. B 30. B 40. D 50. B

Part II. Journalizing

Particulars Debit Credit

1. CASH P10,000
THERON, CAPITAL P10,000
INITIAL INVESTMENT BY OWNER

2. RENT EXPENSE 2,800

CASH 2,800
PAYMENT FOR RENT

3. SUPPLIES 1,200
ACCOUNTS PAYABLE 1,200
SUPPLIES BOUGHT ON ACCOUNT

4. OFFICE EQUIPMENT 4,500

FURNITURE 2,700
ACCOUNTS PAYABLE 7,200
PURCHASE OF EQUIPMENT AND FURNITURE ON ACCOUNT
5. AUTOMOBILE 180,000
THERON, CAPITAL 180,000
ADDITIONAL INVESTMENT BY OWNER

6. CASH 5,500
UNEARNED SERVICE REVENUE 5,500
COLLECTION OF RETAINER FEE FROM A CLIENT

7. TELEPHONE EXPENSE (or combined with the Utilities Expense) 240

UTILITIES EXPENSE 450
CASH 690
PAYMENT OF VARIOUS EXPENSES
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 Particulars Debit Credit
8. NO ENTRY

9. ACCOUNTS RECEIVABLE 2,000

SERVICE REVENUE 2,000
SERVICE RENDERED ON ACCOUNT

10. ACCOUNTS RECEIVABLE 2,500

SERVICE REVENUE 2,500
SERVICE RENDERED ON ACCOUNT

11. ADVERTISING EXPENSE 1,200

CASH 1,200
PAYMENT FOR ADVERTISING

12. CASH 1,000

ACCOUNTS RECEIVABLE 1,000
PARTIAL COLLECTION OF ACCOUNTS

13. ACCOUNTS PAYABLE 5,000

CASH 5,000
PARTIAL PAYMENT OF ACCOUNTS

14. SALARIES EXPENSE 3,700

CASH 3700
PAYMENT OF SALARIES

15. SUPPLIES 2,000

CASH 2,000
PURCHASE OF SUPPLIES

16. ACCOUNTS RECEIVABLE 2,000

SERVICE REVENUE 2,000
SERVICE RENDERED ON ACCOUNT

17. GAS AND OIL EXPENSE 720

CASH 720
PAYMENT FOR GAS AND OIL

18. THERON, DRAWINGS 500

FURNITURE 500
DRAWING BY OWNER

19. MISCELLANEOUS EXPENSES 1,570

CASH 1,570
PAYMENT OF MISCELLANEOUS EXPENSES

20. NO ENTRY

Part III. Posting to the Ledger

Cash Accounts Receivable Supplies
50,000 10,000 2,000 2,000 1,500
2,500 1,500
2,000 5,000
1,000
2,000 0 1,500
500
250

54,500 20,250
34,250

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 Furniture and Fixtures Equipment Accounts Payable
2,300 20,000 5,000 20,000
30,000 1,000 2,300

6,000 22,300
2,300 50,000 16,300

Riego, Capital Professional Fees Salary Expense

70,000 2,500 2,000
2,000

70,000 4,500 2,000

Rent Expense Utilities Expense

500 250

500 250

Part IV. Preparation of a Preliminary Trial Balance

JR PROPRIETOR
PRELIMINARY TRIAL BALANCE
JANUARY 31, 2024

DEBIT CREDIT
CASH P34,250
SUPPLIES 1,500
FURNITURE AND FIXTURES 2,300
EQUIPMENT 50,000
ACCOUNTS PAYABLE P16,300
RIEGO, CAPITAL 70,000
PROFESSIONAL FEES 4,500
SALARY EXPENSE 2,000
RENT EXPENSE 500
UTILITIES EXPENSE 250

TOTAL P90,800 P90,800

Part V. Adjusting Entries

Particulars Debit Credit

1. DEPRECIATION EXPENSE P40,000
ACCUMULATED DEPRECIATION – OFFICE EQUIPMENT P40,000
DEPRECIATION FOR OFFICE EQUIPMENT

2. DEPRECIATION EXPENSE 20,000

ACCUMULATED DEPRECIATION – VEHICLES 20,000
DEPRECIATION FOR VEHICLES

3. SALARIES EXPENSE 30,000

(ACCRUED) SALARIES PAYABLE 30,000
TO RECORD ACCRUED SALARIES EXPENSE

4. ACCOUNTS RECEIVABLE 10,000

SERVICE REVENUE 10,000
TO RECORD ACCRUED INCOME

5. INSURANCE EXPENSE 12,000

PREPAID INSURANCE 12,000
TO ADJUST PREPAID INSURANCE

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 Particulars Debit Credit
6. RENT EXPENSE P20,000
PREPAID RENT P20,000
TO ADJUST PREPAID RENT

7. UNEARNED SERVICE REVENUE 15,000

SERVICE REVENUE 15,000
TO RECOGNIZE EARNED REVENUE

8. UNCOLLECTIBLE ACCOUNTS / DOUBTFUL ACCOUNTS / BAD DEBTS 12,000

ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS / DA / BD 12,000
TO RECORD ESTIMATED UNCOLLECTIBLE ACCOUNTS

9. UTILITIES EXPENSE 2,500

(ACCRUED) UTILITIES PAYABLE 2,500
TO RECORD ACCRUED UTILITIES EXPENSE

10. (ACCRUED) INTEREST RECEIVABLE 3,600

INTEREST INCOME 3,600
TO RECOGNIZE ACCRUED INTEREST INCOME

11. PREPAID ADVERTSING 52,500

ADVERTISING EXPENSE 52,500
TO RECOGNIZE REMAINING PREPAID ADVERTISING

12. ACCOUNTS RECEIVABLE 5,000

SERVICE REVENUE 5,000
TO RECORD ACCRUED INCOME

13. SUPPLIES EXPENSE 15,000

SUPPLIES 15,000
TO RECORD USED SUPPLIES

14. REPAIR EXPENSE 4,000

(ACCRUED) REPAIR PAYABLE 4,000
TO RECORD ACCRUED REPAIR EXPENSE

15. CASH 12,000

UNEARNED SERVICE REVENUE 12,000
TO RECORD ADVANCE CASH PAYMENT FROM A CLIENT

16. INSURANCE EXPENSE 1,500

(ACCRUED) INSURANCE PAYABLE 1,500
TO RECORD ACCRUED INSURANCE EXPENSE

17. INTEREST EXPENSE 2,500

(ACCRUED) INTEREST PAYABLE 2,500
TO RECORD ACCRUED EXPENSE

18. TAXES EXPENSE 8,000

(ACCRUED) TAXES PAYABLE 8,000
TO RECORD ACCRUED TAXES FOR THE YEAR

19. HIDALGO, DRAWINGS 5,000

CASH 5,000
DRAWING BY OWNER

20. RENT INCOME 14,000

UNEARNED RENT INCOME 14,000
TO RECOGNIZE REMAINING UNEARNED RENT INCOME

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