Accounting 1A

6th Exam

Test I. Write "T" if the statement is correct and "F" if incorrect.

1. Worksheet is used as bridge connecting the trial balance and the financial statements.
2. Formal financial statements cannot be prepared without worksheet.
3. The purpose of the worksheet is to accompany the financial statements to prove that everything is complied with.
4. A worksheet which does not contain column for "Adjusted Trial Balance" is a 6-column worksheet.
5. In a worksheet, the amounts of debit and credit columns of both income statement and balance sheet when totaled are not "in-balance".
6. In a worksheet, when the total of the debit column of the Income Statement exceeds the total of the credit column, it signifies a "Loss'.
7. In a worksheet, when the total of the credit column of the Income Statement exceeds the total of the debit column, it signifies "Profit".
8. All nominal accounts are extended to the Balance Sheet section of the worksheet.
9. All real accounts are extended to the debit side of the Income Statement section of the worksheet.
10. When there is Net Income, it is extended to the credit column of the Balance Sheet to effect the decrease in Owner's Equity.

Test II. Multiple Choice

1. A worksheet may or may not be prepared to come up with the financial statements.
Therefore, a worksheet is -
a. mandatory c. optional
b. permanent d. final
2. The nominal accounts are extended to what section of the worksheet?
a. the balance sheet section c. credit side of the income statement section
b. the income statement section d. debit side of the income statement section
3. The drawing account is extended to what section of the worksheet?
a. debit side of income statement c. credit side of income statement
b. debit side of the balance sheet d. credit side of balance sheet
4. The real accounts are extended to what section of the worksheet?
a. the balance sheet section c. credit side of the balance sheet
b. the income statement section d. debit side of the balance sheet
5. Which should come first in preparing a worksheet?
a. Adjusted Trial Balance c. Income Statement
b. Balance Sheet d. Adjustment
6. A balance sheet which is patterned after the accounting equation, A=L+OE is presented in ahorizontal order -
a. natural form c. report form
b. account form d. functional report
7. A balance sheet which shows the Asset folloed by Liabilitites and Owner's Equity in vertial order -
a. single-step form c. report form
b. financial position form d. account form
8. Which of the following is referred to as a "temporary account"?
a. rent expense c. prepaid rent expense
b. accrued rent expense d. unearned rent
9. Which of the following account is extended to balance sheet debit?
a. accrued rent income c. rent income
b. unearned rent income d. none of the above
10. Which of the following has the primary responsibility over financial statements?
a. management c. external audit
b. internal audit d. government

Test III. Indicate whether each item enumerated is an operating, investing and financing activity and indicate
also if it is cash inflow or cash outflow.
1. Payment of rental
2. cash received from services rendered
3. Investment by owner
4. Payment of utilities expense
5. Collection from customer's accounts
6. Proceeds from sale of equipment
7. Withdrawal of owner
8. Proceeds from a bank loan
9. Payment of taxes and license
10. Purchase of supplies inventory
hen totaled are not "in-balance".
it column, it signifies a "Loss'.
it column, it signifies "Profit".

se in Owner's Equity.
T
F
F
F
T
T
T
F
F
F
Accounting 1 A
3rd Examination
Journal Entry Assets = Liabilities + Capital
1. Mr Lee invested cash in the business, P 150,000.00 1

2. Rendered services to a client on account, P 14,000.00 2

3. Bought computer on account, P 33,000.00 3

4. Mr Lee withdrew cash of P 15,000.00 4

5. Paid office rental for the month, P 1,000.00 5

6. Partial payment of account, P15,000.00 6

7. Mr Lee invested office table, P10,000.00 7

8. Partial collection of a client's account, P2,000.00 8

9. Borrowed money from a bank and issued a note, P200,000.00 9

10. Partial payment of account, P 5,000.00 10

11. Paid taxes and licenses and other assessments, P 15,000.00 11

12. Paid the bank for borrowed money, P100,000.00 12

13. Received cash for services rendered, P 30,000.00 13

14. Bought office supplies on cash, P5,000.00 (Expense) 14

Accounting 1 A
3rd Examination
Journal Entry Assets = Liabilities + Capital

15. Received cash for services rendered, P 20,000.00 15

16. Received cash P10,000 but services has not yet been rendered 16

17.Paid insurance premium in advance, P 30,000.00 17

18. Mr Lee invested additional cash in the business, P 50,000.00 18

19. Billed a customer for services rendered, P 20,000.00. 19

20. Paid salaries for the month, P45,000.00 20

1. Determination of Unknown Accounting Equation

CASE 1 CASE 2 CASE 3 CASE 4 CASE 2

Assets 250,000 380,000 ? 510,000 320,000
- Liabilitites ? 120,000 150,000 ? 180,000
=Owner's Equity 175,000 ? 400,000 -0 - ?

CASE 6 CASE 7 CASE 8 CASE 9 CASE 10

Assets 60,000 50,000 ? 85,000 ?
- Liabilitites 60% ? 0 ? 35,000
=Owner's Equity ? 30% 45,000 75% 50%

CASE 1 Cash in Bank 250,000

Petty Cash Fund 10,000
Land 350,000
Accounts Receivable 90,000
Estimated Uncollectible Account (2,000)
Prepaid Insurance 10,000
Building 1,000,000
Accrued Interest Income 15,000
Genia Manapat, Capital 375,000

Question
1. Total Current Asset
2. Total Non-Current Asset
3. Total Asset

CASE 2 Notes Payable 100,000

Accrued Salaries Expense 8,000
Accrued Income 7,000
Accounts Payable 35,000
Unearned Rent Income 15,000
Cash in Bank 90,000
Petty Cash Fund 5,000
Mortgage Payable 150,000
Accounts Receivable 35,000
Estimated Uncollectible Account (2,500)
Land 500,000
Accumulated Depreciation (100,000)
Building 1,000,000

1. Total Current Asset

2. Total Non-Current Asset
3. Total Asset
4. Total Current Liabilities
5. Total Non-Current Liabilities
 1-Sep-2018 Made cash investment to the business.
3-Sep-2018 Rendered service on account.
5-Sep-2018 Borrowed money from a bank with a note issued.
8-Sep-2018 Received cash for service rendered.
10-Sep-2018 Withdrew Cash from the business.
12-Sep-2018 Paid business permits.
14-Sep-2018 Received a promissory note for a service rendered.
16-Sep-2018 Made additional investment - Computer.
17-Sep-2018 Collected a customer's account.
20-Sep-2018 Paid postage and stamps.
22-Sep-2018 Paid light and water bills (Utilities Expenses).
29-Sep-2018 Paid the promissory note issued.
30-Sep-2018 Paid salaries to employees.

1. Bought office equipment on account.

2. Billed a customer for services rendered.
3. The proprietor invested cash in the business.
4. Bought office furniture in cash.
5. The proprietor withdrew cash from the business.
6. Paid taxes an licenses to the city government.
7. Rendered professional service in cash.
8. Bought office supplies (inventory) on account.
9. Paid insurance premium in advance.
10. Received cash for the service to be rendered.
11. Collected the account from a customer.

4-16
Transactions Assets = Liabilities

1. Mr Dexter Besinan invested cash in the business, P 150,000.00 150,000.00

2. Rendered service to a client on account, P 4,000.00 4,000.00
3. Bought computer on account, P 40,000.00 40,000.00 40,000.00
4. Dexter Besinan withdrew cash of P 5,000.00 (5,000.00)
5. Paid office rental for the month, P 1,000.00 (1,000.00)
6. Partial payment of account, P3,000.00 (3,000.00) (3,000.00)
7. Dexter Besinan invested office table, P10,000.00 10,000.00
8. Partial collection of a client's account, P2,000.00 -
9. Borrowed money from a bank and issued a note, P10,000.00 10,000.00 10,000.00
10. Partial payment of account, P 2,000.00 (2,000.00) (2,000.00)
11. Paid taxes and licenses and other assessments, P 1,000.00 (1,000.00)
12. Paid the bank for borrowed money, P10,000.00 (10,000.00) (10,000.00)
13. Received cash for service rendered, P 3,000.00 3,000.00
14. Bought office supplies on account, P5,000.00 (Expense) 5,000.00
15. Full payment of account (Office supplies), P5,000.00 (5,000.00) (5,000.00)
 16. Received cash P10,000 but services has not yet been rendered 10,000.00 10,000.00
200,000.00 45,000.00
4-17
1-Jan-2018 Mrs Evangeline Pingoy made an initial cash investment
5-Jan-2018 Rendered professional service on account.
9-Jan-2018 Collected cash from a client account.
14-Jan-2018 Mrs. Evangeline Pingoy withdrew cash from his business for personal use.
19-Jan-2018 Bought a car on account.
20-Jan-2018 Paid rental for the month
23-Jan-2018 Paid salaries for the month
25-Jan-2018 Paid the car acquired on account.
27-Jan-2018 Bought Office cabinet on account
29-Jan-2018 Received a promissory note for services rendered
30-Jan-2018 Rendered professional service for cash.
31-Jan-2018 Billed a customer for professional service rendered.

4-18 CASH AR

860,000.00 70,000.00
2-Feb-2018 Mr. Felipe Opiso made an additional investment of P 60,000.00 60,000.00
4-Feb-2018 Rendered repair services to customer on account, P 25,000.00 25,000.00
6-Feb-2018 Partial payment to a supplier P50,000.00 (50,000.00)
8-Feb-2018 Payment of rental expense for the month , P 8,000.00 (8,000.00)
15-Feb-2018 Rendered services for cash, P 30,000.00 30,000.00
20-Feb-2018 Collected from a customer's account, P 40,000.00 40,000.00 (40,000.00)
22-Feb-2018 Mr. Felipe Opiso made a cash withdrawal of P 10,000.00 (10,000.00)
23-Feb-2018 Bought office supplies inventory on account, P 5,000.00
24-Feb-2018 Full payment of a note , P 75,000.00 (75,000.00)
847,000.00 55,000.00

4-19
1. Jo Te invested P 250,000.00 in cash in the business
2. Rendered professional service to a customer on account, P 60,000.00
3. Bought office supplies on account, P100,000.00
4. Partial collection from a customer's account, P40,000.00
5. Rendered professional service to a client for cash, P 50,000.00
6. Jo Te withdraw cash from her business, P 30,000.00
7. Paid taxes and licenses in the amount of P 15,000.00
8. Partial payment of account, P 35,000.00
+ Capital

150,000.00
4,000.00

(5,000.00)
(1,000.00)

10,000.00

(1,000.00)

3,000.00
(5,000.00)
155,000.00

Office
Supplies AP NP Capital
Equipment
10,000.00 100,000.00 80,000.00 75,000.00 885,000.00
60,000.00
25,000.00
(50,000.00)
(8,000.00)
30,000.00

(10,000.00)
5,000.00 5,000.00
(75,000.00)
15,000.00 100,000.00 35,000.00 - 982,000.00

1,017,000.00 1,017,000.00
 Davao Laundry Services
Statement of Cash Flows
For the month ended 31 March 20A

Cash Flows from Operating Activities:

Cash Collection from customers 45,000.00
Payment of taxes and licenses (4,000.00)
Purchase of laundry supplies (60,000.00)
Payment of salaries (10,000.00)
Payment of rental (5,000.00)
Payment of utilities (12,000.00)
Payment of interest (1,000.00)
Net cash provided by (used in) operating activities (47,000.00)
Cash Flows from Investing Activities:
Purchase of laundry equipment (150,000.00)
Net cash provided by (used in) investing activities (150,000.00)
Cash Flows from Financing Activities:
Cash received as investment by owner 850,000.00
Cash received from bank loan 100,000.00
Payment for withdrawal by owner (10,000.00)
Net cash provided by (used in) investing activities 940,000.00
Net Increase (Decrease) in Cash 743,000.00
Add: Cash Balance at the beginning of the period -
Cash Balance at the end of the period 743,000.00
 Davao Laundry Services
Statement of Cash Flows
For the month ended 31 March 20A

Cash Flows from Operating Activities:

Profit 22,150.00
Add: Non-cash transactions
Depreciation 2,500.00
Uncollectible Account expenses 350.00
Increase in Current Asstes (105,000.00)
Increase in Current Liability 133,000.00
Increase in Property and Equipment (150,000.00)
Increase in Equity 840,000.00
Net Operating Cash Flows 743,000.00