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Third Quiz For FABM2 (On Adjusting, Closing, and Reversing Entries)

This document contains a take-home quiz with 3 problems on adjusting, closing, and reversing entries for accounting students. Problem 1 provides an unadjusted trial balance and adjustment information to prepare adjusting entries and an adjusted trial balance. Problem 2 provides an adjusted trial balance and information to prepare closing entries and a post-closing trial balance. Problem 3 lists adjusting entries and asks the student to identify which need to be reversed.

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SITTIE RAYMAH ABDULLAH
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144 views2 pages

Third Quiz For FABM2 (On Adjusting, Closing, and Reversing Entries)

This document contains a take-home quiz with 3 problems on adjusting, closing, and reversing entries for accounting students. Problem 1 provides an unadjusted trial balance and adjustment information to prepare adjusting entries and an adjusted trial balance. Problem 2 provides an adjusted trial balance and information to prepare closing entries and a post-closing trial balance. Problem 3 lists adjusting entries and asks the student to identify which need to be reversed.

Uploaded by

SITTIE RAYMAH ABDULLAH
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 PDF, TXT or read online on Scribd
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Fundamentals of Accountancy, Business, and Management II

Take-Home Quiz on Adjusting, Closing, and Reversing Entries

Name: Score:
Section: n

Problem 1. Adjusting entries and Preparation of Trial Balance in Good Form.


Presented below is the unadjusted trial balance of Samantha Tourism for the year ended
December 31, 2021:

Samantha Tourism
Unadjusted Trial Balance
December 31, 2021

Cash ₱ 126,000
Accounts Receivable 645,000
Prepaid Rent 360,000
Office Supplies 63,000
Furniture 2,175,000
Accumulated Depreciation - Furniture ₱ 435,000
Notes Payable 900,000
Accounts Payable 285,000
Samantha, Capital 1,680,000
Samantha, Withdrawals 1,200,000
Tourism Revenue 5,133,000
Salaries Expense 3,771,000
Miscellaneous Expense 93,000
Totals ₱ 8,433,000 ₱ 8,433,000

Additional Information:
a. On November 1, 2021, Raafi paid Authentic Realtors ₱360,000 for six months’ rent on the
office building commencing on the date of payment.
b. Office supplies on hand on December 31, 2021 amounted to ₱27,000.
c. Depreciation expense for the furniture amounted to ₱75,000 for the year.
d. At December 31, 2021, ₱105,000 salaries have accrued.
e. The ₱900,000 note payable was issued on October 1, 2021. It will be repaid in 12 months
together with interest at an annual rate of 12%

Requirements:
1. Prepare adjusting entries based on the information presented above. Don’t forget to
include a brief decription of the transaction.
2. Use the following additional accounts, if necessary: Salaries Payable, Interest Payable, Rent
Expense, Office Supplies Expense, Depreciation Expense, and Interest Expense.
3. Prepare an Adjusted Trial Balance.

Problem 2. Closing Entries and Post-Closing Trial Balance


The accounts of Carmela Health Store are shown in the following trial balance:

Carmela Health Store


Adjusted Trial Balance
December 31, 2021

Cash ₱ 100,000
Accounts Receivable 500,000
Merchandise Inventory 700,000
Prepaid Rent 200,000
Shop Equipment 1,600,000
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Accumulated Depreciation ₱ 400,000
Accounts Payable 400,000
Carmela, Capital 1,300,000
Carmela, Withdrawals 100,000
Sales 2,900,000
Sales Discounts 100,000
Purchases 800,000
Purchase Returns and Allowances 200,000
Transportation In 100,000
Salaries Expense 430,000
Advertising Expense 150,000
Utilities Expense 100,000
Supplies Expense 50,000
Salaries Payable 30,000
Rent Expense 100,000
Depreciation Expense 200,000
Totals ₱ 5,230,000 ₱ 5,230,000

The merchandise inventory on December 31, 2021 amounted to ₱500,000.

Requirements:
1. Prepare the closing entries. Don’t forget to include a brief description of the transaction.
2. Prepare the Post-Closing Trial Balance.

Problem 8. Reversing Entries


Some of the adjusting entries of Best Friends Company on December 31, 2021 are presented
below. Indicate if the entry needs to be reversed or not. Write YES if the entry needs to be
reversed; otherwise, write NO.

______________ 1. Accrued Interest receivable 1,200


Interest income 1,200
______________ 2. Unused supplies 2,000
Supplies expense 2,000
______________ 3. Unearned rent income 6,000
Rent income 6,000
______________ 4. Bad debts expense 7,500
Allowance for bad debts 7,500
______________ 5. Merchandise inventory, end 10,000
Cost of sale 10,000
______________ 6. Transportation expense 2,000
Freight payable 2,000
______________ 7. Depreciation expense 3,000
Accumulated depreciation 3,000
______________ 8. Prepaid rent 12,000
Rent expense 12,000
______________ 9. Notes receivable 20,000
Accounts receivable 20,000
______________ 10. Expired insurance 6,000
Unexpired insurance 6,000

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