COLEGIO DE SANTA RITA DE SAN CARLOS, INC.
Score
Augustinian Recollect Sisters
San Carlos City, Negros Occidental
PRELIMINARY EXAMINATION IN ACCOUNTING 1
Name:John Michael Najarro Course&Year: BSBA 1 Date: 10/7/20
Test I. Identify the term that best suits each statement.
-account payable 1. The account used to record the payment of the owner of the businesses’ liability using his personal
check.
- Interest Expense 2. The cost of money borrowed to finance business operations.
- account receivable 3. Checks received from customers are recorded under this account.
-Salary income - 4. The person or company to whom a certain amount of cash is owed, payable at a future date.
-Bank account 5. The account used to record the payment of the owner’s personal debt using the company’s funds.
-Withdrawal 6. It is an act of taking money out of an account.
Test II. On the transaction summary table below, indicate the effect of each transaction on each account. Put ‘ +’ if the
account has increased or ‘ -‘ if the account has decreased. Put the amount of increase or decrease for each account. (2
points per transaction)
ASSETS LIABILITIES OWNER’S
Transaction EQUITY
Cash Accounts Notes Office Accounts Loan Kuma,
Receivable Receivable Equipment Payable Payable Capital
1. Kuma + +
invested ₱650,000 ₱650,000
₱650,000 cash.
2. Sold + +
office equipment, ₱10,000 ₱10,000
₱10,000.
3. Rendered + +
services to Mr. ₱10,000 ₱10,000
Go on
account,
₱10,000.
4. Cash + +
services to ₱22,000 ₱22,000
clients, ₱22,000.
5. Bought + +
₱30,000 office ₱30,000 ₱30,000
equipment
on account.
ASSETS LIABILITIES OWNER’S
Transaction EQUITY
Cash Accounts Notes Office Accounts Loan Kuma,
Receivable Receivable Equipment Payable Payable Capital
6. Received a + -
note from Mr. Go ₱10,000 ₱10,000
for account.
7. Partial - -
payment ₱12,000 ₱12,000 ₱12,000
for the
office equipment
bought in #5.
8. Mr. Go + -
settled 40% of 40% 40%
the note
9. Paid - -
electric bill to ₱1,800 ₱18,000
NONECO,
₱1,800..
10. Kuma + +
made an ₱75,000 ₱75,000
additional
investment of
₱75,000.
11. Paid the - -
office equipment ₱18,000 ₱18,000
in full.
12. Proceeds + + +
from bank loan, ₱100,000 ₱100,000 ₱100,000
₱100,000
13. Mr. Go + +
settled the note in ₱10,000 ₱10,000
full.
14. Kuma - -
withdrew ₱45,000 ₱45,000
₱45,000 cash.
15. Paid 50% - -
of the bank loan. ₱500 ₱500
16.Paid - +
₱2,000 ₱102,000
2%interest on the
bank loan.
17. Cash + +
collections from ₱22,000 ₱22,000
various
customers.
Test III. Selected transactions are presented below. Give the effect of the following transactions on the three elements of
the balance sheet. Give the accounts affected and the amount of increase or decrease. (2 points each)
1. Maria Labo invested P550,000 cash = increased in Cash ₱550,000
=Increased in Capital ₱550,000
2. Paid one month rent P50,000 =Cash decreased ₱50,000
3. Paid life insurance for one year P40,000 =decreased in cash ₱40,000
=increased in insurance expense₱40,000
4. Bought supplies on credit P4,300 =increased in account payable₱4,300
=increased in supplies ₱4,300
5. Owner invested equipment valued at P100,000 =increased in equipment ₱100,000
=increased in capital ₱100,000
6. Purchased furniture, P69,000; paying 1/3 of the amount =increased in furniture ₱69,000
and the remaining balance on account =increased in account payable ₱23,000
7. Rendered services to account customers, P10,000 =increased in account receivable₱10,000
=increased in service income ₱10,000
8. Paid the balance on the furniture =cash decreased ₱46,000
___________________________________
9. Maria Labo withdrew P35,000 cash for personal use =cash decreased ₱35,000
= decreased in capital ₱35,000
10. Rendered services for cash, P68,000 =increased in cash ₱68,000
=increased in service income₱68,000
11. Billed Ms. Penga P9,000 for services rendered =increased in account receivable₱9,000
= increased in service income₱9,000
12. Maria Labo withdrew P2,000 worth of supplies for =decreased in supplies ₱2,000
personal use =decreased in capital ₱2,000
13. Collected P9,000 from Ms. Penga =increased in cash ₱9,000
=increased in service income₱9,000
14. Rendered services on credit to Mr. Quiripot, P8,800 = inc in note receivable ₱8,800
___________________________________
15. Paid secretary’s salary, P7,700 =decreased in cash ₱7,700
=increased in salary expense₱7,700
16. Received bill from Globe for internet services, P999 = increased in account payable₱999
=icreased in utilities payable ₱999
17. Ms. Quiripot issued a note in lieu of her account =increased in notes receivable₱8,800
=decreased in account receivable₱8,800
18. Paid telephone bill = decreased in cash₱999
= decreased in capital ₱999
19. Maria Labo made an additional investment of P100,000 =increased in cash ₱100,000
=increased in capital ₱100,000
20. Ms. Quiripot paid the note =increased in cash ₱8,800
= decreased in note receivable₱8,800
