Acc1 Q

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A. Provide what is asked.

1. It is a standard-setting body which is tasked to establish and improve the


Generally Accepted Accounting Standards, created by Philippine Institute of CPA
last 1981.
2. This law repealed the Presidential Decree No. 692 formerly known as the "Revised
Accountancy Law" enacted by late president Ferdinand E. Marcos.
3. These users of financial statements are interested in information which enables
them to determine whetheir their loans and interests thereon will be paid when due.
4. Are those involved in more than one type of activity which are manufacturing,
merchandising and service.
5. The accumulated profit of a corporation is distributed to the shareholders in a
form of ____.
6. It provides for possible losses from uncollected accounts.
7. It means sell all assets, pay all liabilities and return the excess to the
owner.
8-9. Two methods in recording precollected income.
10. It is a systematic allocation of the cost or amount of intangible asset over
its legal or accounting estimated life.
11. Refers to cost of merchandise that were purchased but returned to suppliers for
bad orders or does not conform with the specifications.
12. For the portion of the cost and property and equipment or fixed assets that has
expired based on rational and systematic allocation procedure.
13. Accounting period will begin on the first day of any month of the year except
January and will end on the last day of the twelfth month.
14-15. What are the inventory systems?
16. Is taken from the viewpoint of the buyer who is the debtor
17. The approval of this law removes the VAT exemption of several formerly, exempt
section of our economy. Thus, the burden of taxation is now shared more equitably.
18. These are the goods left unsold at the end of the period.
19. It is the buyer who shoulders the freight.
20. It is only transactions involving cash payments are recorded in this book like
purchases of merchandise.

B. Journalize the following transactions.

[FORMAT]
Ex.
Debit: accounting title - amount
Credit: accounting title - amount

1. Bought merchandise on account from Layda Superstore, P60,000. Term 5% - 30 days.


2. Sold merchandise for cash to Roulette Co., P170,000.
3. Payment of account with Layda Superstore within the discount period and availed
of the 5% discount. (refer to Transaction #1)
4. Sold merchandise on account to Dumbo Co., P70,000. Term 3% - 10 days.
5. Collected the account of Dumbo Co within the discount period. (refer to
Transaction #4)
6. Sold merchandise totaling P19,000 FOB destination, freight collect; terms 2/10,
n/30. The transportation cost amounted to P900.
7. The invoice in Transaction #6 was collected within the discount period.
8. Made purchases totaling P13,000 FOB destination, freight prepaid; terms 2/10,
n/30. Transportation costs amounted P1,500.
9. Made purchases totaling P17,000 FOB destination, freight collect; terms 2/10,
n/30. The transportation costs amounted to P1,300.
10. The invoice in Transaction #8 was paid within the discount period.

C. Give the adjusting entries of the following transactions.


[FORMAT]
Ex.
Debit: accounting title - amount
Credit: accounting title - amount

(for the end of the month)


1. Salaries from the period December 25 to 31 amounting to 3,500 were unpaid.
2. P12,000 was paid for the insurance on July 31, 2011. The insurance is consumable
for one year. (Use asset method)
3. Interest accrued from notes payable amounted to P1,500.
4. P100,000 notes receivable, 12% the interest is paysable every June 30.
5. Of the P125,000 service income, only P50,000 was earned. (Use income method)
6. Of the P85,000 unearned service income, P50,000 was earned. (Use liability
method)

(for the year ended December 31, 2011)


7. Of the P2,400 office supplies inventory, P800 cost of supplies were on hand.
Asset account was debited upon purchase.
8. Received cash of P72,000 for a 3-year advance
9. An office equipment was acquired on May 31, 2011 for P150,000. The office
equipment has an estimated life of 5 years without a scrap value.
10. Supplies inventory showed a balance of P40,000 as of December 31, 2011. During
the year, P25,000 cost of supplies were purchased and at the end of the December
31, 2012, P20,000 were found to be on hand.
11. Purchase on

Sa school ko

STEM - 6 (fifty students each)


ABM - 1 (forty-six)
HUMSS - 1 (fifty-six

Sole Proprietorship: Owner's Equity = Corporation: _______

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