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Assignment Module 5

This document contains an trial balance for Patricinio Abad Claims Adjuster from December 31, 2019 and several multiple choice questions related to adjusting entries. It asks about adjusting entries that would be needed if supplies on hand were different than the balance, if prepaid insurance expired was different than the balance, if estimated depreciation on equipment was the amount shown in accumulated depreciation. It also contains additional questions about adjusting entries related to supplies, depreciation, and prepaid insurance for Luz Un Machine Shop.

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Hazel Jane Mejia
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937 views

Assignment Module 5

This document contains an trial balance for Patricinio Abad Claims Adjuster from December 31, 2019 and several multiple choice questions related to adjusting entries. It asks about adjusting entries that would be needed if supplies on hand were different than the balance, if prepaid insurance expired was different than the balance, if estimated depreciation on equipment was the amount shown in accumulated depreciation. It also contains additional questions about adjusting entries related to supplies, depreciation, and prepaid insurance for Luz Un Machine Shop.

Uploaded by

Hazel Jane Mejia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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FUNDAMENTALS OF FINANCIAL ACC OUNTING AND REPORTING

ASSIGNMENT MMODULE 5
AY 2020-2021

The trial balance for Patrocinio Abad Claims Adjuster appears as follows:
Patricinio Abad Claims Adjuster
Trial Balance
December 31, 2019
Cash P20,000
Accounts Receivable 50,000
Prepaid Insurance 5,000
Supplies 15,000
Office Equipment 40,000
Accumulated Depreciation-Office Equipment P20,000
Accounts Payable 30,000
Abad, Capital 60,000
Service Revenue 50,000
Salaries Expense 10,000
Rent Expense 20,000 ________
P160,000 P160,000

Refer to Patricinio Abad Claims Adjuster Trial Balance. If on December 31, 2019, supplies on
hand were P2,000, the adjusting entry would contain a
A. Credit to Supplies Expense for P13,000.
B. Credit to Supplies for P2,000.
C. Debit to Supplies Expense for P13,000.
D. Debit to Supplies for P2,000.
ANSWER: ____________

Refer to Patricinio Abad Claims Adjuster Trial Balance. If on December 31, 2019 the insurance
still unexpired amounted to P2,000, the adjusting entry would contain a
A. Credit to Prepaid insurance for P2,000.
B. Credit to prepaid Insurance for P3,000.
C. Debit to Insurance Expense for P2,000.
D. Debit to Prepaid Insurance for P3,000.
ANSWER: ____________

Refer to Patricinio Abad Claims Adjuster Trial Balance. If the estimated depreciation for office
equipment were P20,000, the adjusting entry would contain a
A. Credit to Accumulated Depreciation- Office Equipment for P20,000.
B. Credit to Depreciation Expense – Office Equipment for P20,000.
C. Credit to Office Equipment for P20,000.
D. Debit to Accumulated Depreciation -Office Equipment for P20,000.
ANSWER: ______________

Office supplies were P9,000 at the end of January and P11,400 at the end of February. During
February, Office Supplies Expense equaled P3,000. How much cash was paid for office supplies
during February?
A. P2,400
B. P14,400
C. P17,400
D. P5,400
ANSWER: __________

Use the following information to answer questions 5 to 7 below. The following information
pertains to Luz Un Machine shop:
a. A one-year insurance policy was purchased for P20,000. Three months have passed since
the purchase.
b. Depreciation on buildings is at P50,000.
c. The company’s Supplies account showed a beginning debit balance of P2,000 and supplies
purchased of P8,000; P3,000 of supplies were on hand at year-end.

Refer to Luz Un Machine Shop. The adjusting entry for the supplies would include a
A. Credit to Supplies for P3,000.
B. Credit to Supplies Expense for P8,000.
C. Debit to Supplies Expense for P7,000.
D. Debit to Supplies Expense for P8,000.
ANSWER: ____________

Refer to Luz Un Machine Shop. The adjusting entry for depreciation on buildings would include
a:
Credit to Accumulated Depreciation – Buildings for P50,000.
A. Credit to Buildings for P50,000.
B. Credit to Depreciation Expense -building for P50,000.
C. Debit to Accumulated Depreciation- Buildings for P50,000.
ANSWER: __________

Refer to Luz Un Machine Shop. The adjusting entry for the insurance policy would include a
A. Credit to Insurance Expense for P15,000.
B. Credit to Prepaid Insurance for P5,000.
C. Debit to Insurance Expense for P15,000.
D. Debit to Prepaid Insurance for P5,000.
ANSWER: ____________

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