COMMUNITY COLLEGE OF GINGOOG CITY

Don Restituto R. Baol Central School Complex

National Highway, Gingoog City

Financial Accounting
Final Examination
Name:_____________________________________ Course/Year Level: _________________ Block: ________

I- Multiple Choice. Choose the letter that best correspond your answer.

1. It refers to an expense that is already incurred by the business but not yet paid when the accounting period ends.
a. accrued expense c. prepaid expense
b. deferred expense d. none of the above
2. Nominal accounts are composed of –
a. Income accounts c. income and expense accounts
b. expense accounts d. none of the above
3. Pre-collected income account is normally –
a. an income earned c. an asset recognized
b. a liability earned d. an expense recognized
4. If no adjusting entry is prepared on prepayment of expense using the asset method, assets will be –
a. overstated b. understated c. not affected d. none of the above
5. If no adjusting entry is prepared on pre-collection of income using the liability method, the liability will be –
a. overstated b. understated c. not affected d. none of the above
6. The following Asset accounts are depreciable, except one –
a. Furniture and Fixtures b. Equipment c. Building d. Land
7. An office equipment bought at P 55,000 has an estimated life of 2 years with a salvage value worth P 2,500. What
is its monthly depreciation?
a. P 2,871.50 b. P 2,187.50 c. P 26,250.00 d. P 26,520.00
8. Payment of rental expense in the amount of P 30,000 was erroneously recorded at P 20,000. Journalize the wrong
entry.
a. Dr, Rent Expense P 20,000/ Cr, Cash P 20,000 c. Dr, Rent Expense P 20,000/Cr, Rent Payable, P 20,000
b. Dr, Rent Payable P 20,000/ Cr, Cash P 20,000 d. Dr, Rent Expense P 30,000/ Cr, Cash P 30,000
9. Refer to question no. 8. What is the correct journal entry?
a. Dr, Rent Expense P 20,000/ Cr, Cash P 20,000 c. Dr, Rent Expense P 20,000/Cr, Rent Payable, P 20,000
b. Dr, Rent Payable P 30,000/ Cr, Cash P 30,000 d. Dr, Rent Expense P 30,000/ Cr, Cash P 30,000
10. Which of the following is considered an expense account?
a. prepaid expense b. accrued expense c. unearned income d. uncollectible account
11. The drawing account is extended to what section of the worksheet?
a. debit side of the income statement c. credit side of the income statement
b. debit side of the balance sheet d. credit side of the balance sheet
12. Estimated Uncollectible Account is extended to –
a. Balance Sheet, debit c. Income statement, debit
b. Balance Sheet, credit d. Income Statement, credit
13. Which of the following account does not require closing entries at the end of the accounting period?
a. income statement accounts b. real accounts c. temporary accounts d. nominal accounts
14. Which of the following accounts that need closing entries at the end of the accounting period?
a. capital accounts b. liability accounts c. drawing accounts d. cash account
15. Which of the following statements is not true concerning closing entries?
a. closing entries can also be prepared at the end of the month
b. closing entries closes Drawing to Capital accounts
c. closing entries determined whether there is profit or loss
d. closing entries close all nominal to all real accounts
Mr. Way A. Lam started his Computer Services Shop. During the first month of operations the following
transactions occurred:
ABM COMPUTER SERVICES
Chart of Accounts
ASSETS EXPENSES
Cash Taxes and Licenses
Accounts Receivable Light & Water
Computer Supplies Salaries Expense
Computer Equipment
Delivery Van
Furniture & Fixtures
LIABILITIES INCOME
Accounts Payable
Notes Payable Computer Service Income
CAPITAL
Way A. Lam, Capital
Way A. Lam, Drawing

Sept. 1 – Mr. Way A. Lam is engaged in computer shop business for the first time and made the following
investments.
Cash – Php50,000.00 and Computer Set Php100,000.00
– Paid business permits and other Government fees of Php1,350.00
- Bought a second hand car (delivery use) on account costing 70,000.00 from CDO MOTOR SALES and made a
down payment of P5,000.00.
Sept. 12 Bought office and computer supplies on account from the following :
Target Commercial (office supplies ) - Php500.00
Ann’s Place Marketing (computer printing supplies ) – Php3,700.00
Sept. 15 Bought chairs, cabinets and display cases from Prince City costing Php50,000.00,
Paid 50% down payment and issued a note for the balance.
Sept. 17 Rendered computer maintenance services to the following customers on account;

Sanitarium and Child Hospital Php 8,500.00

Eastland Hotel & Restaurant 9,100.00
LBP,Gingoog Branch 3,500.00
DEPED Gingoog City Division 5,800.00
Lipunan Hospital 3,600.00

Sept. 20 Mr. Way A. Lam withdrew cash from the business amounting to Php5,000.00.
Sept. 27 The business partially collected the following customers’ accounts;

Sanitarium and Child Hospital Php 3, 500.00

Eastland Hotel & Restaurant 4,100.00
Lipunan Hospital 2,600.00
Sept 30 Paid the following expenses:

Electric Bill Php 5,000.00

Water Bill 500.00
Salaries to Employees 10,000.00
Direction:
1. Journalize the transaction using Journal
2. Post the accounts using Ledger (T-accounts).
3. Prepare Trial Balance