FUNDAMENTALS OF ACCOUNTING 2

PRE-FINAL EXAMINATION

I. Choose the word that does not belong to the group. Write your answer on
your test booklet.

1. debit credit asset

2. Service Bookkeeping Manufacturing
3. Partnership Entity Corporation
4. Cash Supplies Interest Expense
5. Inventories Accounts Payable Notes Payable
6. Land Machinery Accounts Receivable
7. Telephone Bills Bonds payable Rent Expense
8. Balance Sheet Income Statement Trial Balance
9. Journal Ledger Posting
10. Assets liabilities Income
11. Income capital Expense
12. Service Income Consulting revenue equipment
13. Sales Journal Purchase Journal Property
14. Salaries Expense Utilities Expense Prepaid expense
15. Bad Debts Doubtful Accounts Accounts receivable
16. Furniture Capital Equipment
17. Net Income Withdrawal Inventories
18. Net Income Net Loss Net Investment
19. Accounts receivablePrepaid Rent Computer
20. Delivery Truck Building Jewelries
21. Adjusting Entries Closing Entries Subsidiary Ledger
22. Classifying Summarizing Balancing
23. Partner Proprietor Lender
24. Telephone Bills Electric Bills Inventory
25. Salaries Payable Salaries Expense Wages Expense
26. Current Assets Property and Equipment Current Liabilities
27. Date Posting Reference Ledger
28. Investor Creditor Asset
29. Liabilities Mortgage Payable Bonds Payable
30. Accrual Deferral T-Account

II. The trial balance of Ringside Communications as of December 31, 2014 are
as follows:

Ringside Communications
Trial Balance
December 31, 2014

Cash 260,000
Accounts Receivable 80,000
Office Supplies 10,000
Office Equipment 140,000
Accounts Payable 60, 000
Notes Payable 30, 000
Pacquiao, Capital 210,000
Public Relations Revenue 150,000
Rent Expense 30,000
Salaries Expense 10,000
TOTALS 490,000 490,000
====== ======

1
The Ringside Communications is a public relations firm. During the Month of January
2015, the company completed the following transactions:
1 Mr. Manny Pacquiao invested 240,000 in the business.
2 Paid rent for September, P 6,500.
3 Purchased 1 unit of computer in cash from Morales Trading, P 32,000.
8 Billed customers for services rendered, P28, 000.
12 Bought supplies from David Diaz and agreed to pay in thirty days, P P3,
800.
15 Paid salaries for the first half of September, P19, 000.
16 Received cash from customer for services rendered, P48, 000.
20 Paid the electric and telephone bills for the month, P1, 600.
25 Received a bill, to be paid on October, for advertisement placed in a
national newspaper during the month of September to promote the
business, P7, 000.
26 Made a payment to David Diaz on the purchase of supplies, P1, 000.
27 Collected P10, 000 from customers previously billed.
28 Withdrew cash for personal use, P12, 000.

Required:
1. Complete the accounting cycle.
a. Journal Entries
b. Ledger (Balancing Method)
c. Trial Balance
d. Financial Statements
e. Closing Entries
f. Post-Closing Trial Balance

“A character is a man who knows what he wants; who does not

allow his temper and moods to govern him, but acts on firm
principles.”
Good Luck & God Bless!

2
CP JAUCIAN