St.

Isidore Academy of Trinidad, Bohol

Poblacion, Trinidad, Bohol 6324
Member: Catholic Educational Association of the Philippines
Bohol Association of Catholic Schools
MIDTERM EXAM

FIRST QUARTER

ABM 2

NAME: _____________________________________________ Date: ______________

YEAR AND SEC.: _____________________________________ Score: _____________

I. Directions: Classify each of the accounts as asset, liability or owner’s equity. Write your answer before the
number.
1. Accounts receivable
2. Accounts payable
3. Supplies
4. Computer equipment
5. Shartimus, capital
6. Accumulated depreciation – computer equipment
7. Prepaid insurance
8. Interest payable
9. Notes payable
10. Cash
11. Buildings
12. Mortgage payable
13. Land
14. Salaries payable
15. Shartimus, Drawing
II. Directions: discuss briefly what is asked below.

1. Explain the concept of normal operating cycle for a service or merchandising business.

III. Directions: Prepare a Statement of Financial Position for the company (one in report form and one in account form).

1. You were hired by Mr. Juan Dela Cruz to prepare his sari-sari store’s Statement of Financial Position. In order to prepare the
statement,
you identified the following assets and liabilities of Mr. Dela Cruz:
a. His sari-sari store has cash deposited in a bank account amounting to P50,000
b. His sari-sari store had a lot of uncollected sales from customers amounting to P75,000
c. The total amount of merchandise left inside the store is P30,000
d. He already paid one year’s rent in advance amounting to P12,000
e. The value of all the company’s furniture amounted to P100,000
f. He bought merchandise from his supplier amounting to P25,000 and the supplier agreed that payment can be made 2 months after
year-end
g. SSS, Philhealth and Pag-ibig Payables for his one employee totaled P5,000
h. The sari-sari store had outstanding liabilities to utility companies amounting to P3,000
i. He had a loan from the bank amounting to P50,000 to be paid in 3 years