ASSESSMENT TASK 5 - 1

ITEMS REVENUE EXPENSES ASSETS LIABILITIE OWNER’S

S S EQUITY

1. 1. U 2. O

2. 3. O 4. NE

5. 5. U 6. O

7. 7. NE 8. O

9. 9. U 10. O

ASSESSMENT TASK 5 - 2

1. Interest Expense P 35 625

Interest Payable P 35 625

SOLUTION:
₱285,000 ( 0.15) (10/12)
= ₱ 3,562

2. NOMINAL

Advertising Expense 19,800

Repairs Expense 2,000
Utilities Expense 4,860
Accounts payable 26,660

REAL
Advertising Expense 19,800
Accounts payable 19,800

Repairs Expense 2,000

Accounts payable 2,000
 Utilities Expense 4,860
Utilities payable 4,860

3. Salaries Expense 35 000

Salaries Payable 35 000

SOLUTION : No solutionneeded

4. Accounts Receivable 75 000

Service Revenues 75 000

SOLUTION : No solutionneeded

5. Interest Receivable 27 000

Interest Income 27 000

SOLUTION
₱45,000(0.09)(8/12)
= ₱27,000

ASSESSMENT TASK 5 - 3
1. Deferred Revenue P 42 000
Revenue P 42 000

SOLUTION : No solutionneeded

2. Supplies Expense 6 920

Supplies 6 920

SOLUTION : No solutionneeded

3. Insurance Expense 3 500

Prepaid Insurance 3 500

SOLUTION : No solutionneeded

4. Interest Receivable 7 875

Interest Income 7 875

90
(
SOLUTION : 175 000× 18 % ×
360 )
5. Mortgage Loan 599 104
Mortgage Loan Payable 599 104

6. Accounts Receivable 34 000

Unearned Revenues 34 000

SOLUTION : ( 8 500 × 4 )

7. a Subscription Expense 43 500

Unearned Subscription Revenue 43 500

b Subscription Expense 87 725

Unearned Subscription Revenue 87 725
 c Subscription Expense 96 525
Unearned Subscription Revenue 96 525

8. Depreciation Expense - Equipment 13 500

Accumulated Depreciation Expense 13 500

Cost of an Asset−Salvage Value

Useful life ( years)

SOLUTION : ( 75 000−7 500

5 years )

9. Depreciation Expense - Vehicle 212 750

Accumulated Depreciation Expense 212 750

Cost of an Asset−Salvage Value

Useful life ( years)

SOLUTION : ( 1 850 000−148

8 years
000
)
Depreciation Expense - Vehicle 244 662. 5
Accumulated Depreciation Expense 244 662. 5

Cost of an Asset−Salvage Value

Useful life ( years)

SOLUTION : ( 2 127 500−170

8 years
200
)
10. Depreciation Expense - Furniture and Fixtures 27 000
Accumulated Depreciation Expense 27 000
 Cost of an Asset−Salvage Value
Useful life ( years)

SOLUTION : ( 248 000−5

9 years
000
)

ASSESSMENT TASK 5 - 4

Account Title Debit Credit

Accounts Receivable P435,000

Notes Receivable 90,000

Equipment 125,000

Furniture and Fixtures 36,000

Prepaid Rent 21,000

Allowance for Doubtful

Accounts

Accumulated Depreciation
- Equipment

Accumulated Depreciation
– Furniture and Fixtures

Interest Receivable

Notes Payable 57,000

Utilities Payable

Salaries Payable

Unearned Service 240,000

Revenue

Interest Payable

Interest Income

Insurance Expense 45,000

Interest Expense

Depreciation Expense

Doubtful Accounts
Expense

1. Utilities Expense P 4 950

Utilities Payable P 4 950

SOLUTION :3 700+1 250=4 950

2. Salaries Expense 22 720

Salaries Payable 22 720

SOLUTION : No solutionneeded

3. Interest Receivable 1 500

Interest Income 1 500

50
(
SOLUTION : 90 000 ×12 % ×
360 )
4. Interest Expense 1 485. 16
Interest Payable 1 485. 16

67
(
SOLUTION : 57 000× 14 % ×
360 )
5. Rent Expense 7 000
Prepaid Rent 7 000

Asset method:
 Unused Used

21 000 7 000

6. Insurance Expense 45 000

Prepaid Insurance 45 000

Asset method:

Unused Used

45 000 45 000

7. Unearned Revenues 192 000

Service Revenues 192 000

SOLUTION : ( 240 000 ×80 % )

8. Doubtful Accounts 17 400

Allowance for Doubtful Accounts 17 400

SOLUTION : ( 435 000 × 4 % )

9. Depreciation Expense - Equipment 15 000

Accumulated Depreciation Expense 15 000

Cost of an Asset−Salvage Value

Useful life ( years)

9
SOLUTION : ( 125 000−5
6 years
000
) X
12
10. Depreciation Expense - furniture and fixtures 5 500
Accumulated Depreciation Expense 5 500

Cost of an Asset−Salvage Value

Useful life ( years)

SOLUTION : ( 36 000−3
4 years
000
) X
8
12

ADDITIONAL REQUIREMENTS:

1. 105 000
SOLUTION : ( 125 000−20 000 )

2. 27 750
SOLUTION : ( 36 000−8 250 )

3. 417 600
SOLUTION : ( 435 000−17 400 )

4. 14 000
SOLUTION : ( 21 000−7 000 )

5. 48 000
SOLUTION : ( 240 000−192 000 )