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Principles of Accounting 101: Name - Course/Yr. Section - Date

The document is a practice exam for an accounting principles course. It contains a multiple choice question section testing concepts like accrued expenses, prepaid rent, and accounting methods. It also provides an adjusted trial balance for Zach Elijah Furniture Shop and requires students to prepare the income statement, balance sheet, and statement of owner's equity based on the information given.

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60 views4 pages

Principles of Accounting 101: Name - Course/Yr. Section - Date

The document is a practice exam for an accounting principles course. It contains a multiple choice question section testing concepts like accrued expenses, prepaid rent, and accounting methods. It also provides an adjusted trial balance for Zach Elijah Furniture Shop and requires students to prepare the income statement, balance sheet, and statement of owner's equity based on the information given.

Uploaded by

Anonymous xl2Fs9R8w
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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BUL ACAN POLYTECHNIC COLLEGE

Bulihan, City of Malolos, Bulacan


Final Examination
PRINCIPLES OF ACCOUNTING 101

Name________________________________ Course/Yr. Section ____________Date_________________


I.MULTIPLE CHOICE. Encircle the letter of the correct answer. (10 Points)
1. Office employees are paid every two weeks. On December 31, five days’ salaries of an office
employees for Php 300 per day have accrued. What is the correct entry?
a. debit Salaries 1,500 credit Accrued Salaries 1,500
b. debit Salaries 300 credit Accrued Salaries 300
c. debit Accrued Salaries 1,500 Salaries 1,500
d. none of the above
2. A tenant who occupies the right side of the space, is two months in arrears of the balance
sheet date. His monthly rental is Php 2,500 per month. What is the correct entry?
a. debit Rent Income 5,000 credit Accrued Rent Income 5,000
b. debit Accrued Rent Income 5,000 credit Rent Income 5,000
c. debit Accrued Rent Income 2,500 credit Rent Income 2,500
d. none of the above
3. On November of the current year, the business received Php 30,000 cash from the tenant of
the vacant space of the store. What is the original entry?
a. debit rent income 30,000 credit cash 30,000
b. debit Accrued rent income 30,000 credit rent income 30,000
c. debit cash 30,000 credit rent income 30,000
d. none of the above
4. On November 1 of the current year, C. Santos paid Php 30,000 for a three-month rental of the
space. What is the adjusting entry using asset method?
a. debit Rent expense 20,000 credit prepaid rent 20,000
b debit Prepaid rent 20,000 credit Cash 20,000
c. debit Rent expense 10,000 credit prepaid rent 10,000
d. none of the above
5. What are the two methods that you can used under expiration of prepayments of expenses?
a. asset method and expense method
b. income method and liability method
c. both a and b
d. none of the above
6. What are the two methods that you can used under realization of income collected in
advance?
a. asset method and expense method
b. income method and liability method
c. both a and b
d. none of the above
7. Under this method, expense account is charged when payment is made.
a. asset method
b. expense method
c. income method
d. none of the above
8. Under this method income account is credited when cash is received.
a. asset method
b. expense method
c. income method
d. none of the above
9.Under this method the original entry made is charged to an asset account.
a. asset method
b. expense method
c. income method
d. none of the above
10. Under this method the liability account is credited upon receipt of cash.
a. asset method
b. expense method
c. income method
d. none of the above

II. APPLICATION. Complete the following requirement. (65 Points)


Required:
1. Complete the worksheet for the Adjusted Trial Balance of Zephaniah below in a 6-column worksheet.
2. Prepare the Income statement based on the worksheet for the period.
3. Prepare the Balance sheet based on the worksheet for the period.
4. Prepare the Statement in the Changes of the Owner’s Equity for the period.

The Adjusted Trial Balance of the Zach Elijah Furniture Shop is shown below for the year ending
December 31, 2016:
Zach Elijah Furniture Shop
Worksheet
For the year end December 31, 2016

Accounts Adjusted Trial Balance Income Balance Sheet


Statement
Debit Credit Debit Credit Debit Credit
Cash Php 78,843
Accounts Receivable 8,180
Office furniture 6,500
Motorcycle 38,500
Office Equipment 29,680
Accounts Payable-Matthew Php 18,280
Accounts Payable- Isaiah 2,700
Unearned Fees/Income 5,000
Zephaniah, Capital 140,000
Zephaniah, Drawing 8,000
Fees/Income 35,730
Depreciation Expenses- 7,700
Motorcycle
Accumulated Depreciation- 7,700
Motorcycle
Depreciation Expenses-Office 3,710
Equipment
Accumulated Depreciation- 3,710
Office Equipment
Gasoline Expenses 900
Repair Expenses 1,850
Rent Expenses 7,800
Salary Expenses 18,900
Telephone Expenses 967
Utility Expense 1,590
Total Php 213,120.00 Php 213,120.00
Zach Elijah Furniture Shop
Income Statement
For the year end December 31, 2016

Zach Elijah Furniture Shop


Balance Sheet
As of December 31, 2016

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