ACCOUNTING WEEK 2 ANSWER KEY 5.

Pre-test Activity 2:
1. Liabilities ASSETS LIABILITIES OWNER’S
2. Assets EQUIT
3. Liabilities Y
4. Liabilities
5. Assets Cash Mortgage Expenses

Activity 1: Stock and Credit Card Capital

1. Utility Expense (at home) should not be included Bond Debt
because it is a personal expense. s Income
Withdrawal is not an expense. Student Loan
Insurance
Sari-sari store
2. Salary expense 20,000
Businesses credit
Rent expense 10,000
Utilities expense (at the store) 10,000 Painting (Arts) Home Equity
Insurance expense 5,000 Loan
TOTAL 45,000 Building/Home

Self-check 1: Wheels
1.E, 2.B, 3.A, 4.B, 5.A, 6.D, 7.C, 8. D, 9. A, 10.B, Jewels
Activity 2:
1. G 2. J 3. A 4. B 5. C 6. D 7. H 8. I 9. E 10. F
Self-check 1: Activity 3:
Activity 3: 1. E and A 1. 19,335.00
Answers may vary 2. E and A 2. 23,637.00
3. L and A 3. 15,412.00
Post Test 4. L and A 4. 54,967.00
A. 5. A and E 5. 48,605.00
1. business entity principle 6. A and E 6. 38,399.00
2. objectivity principle 7. A and L 7. 56,636.00
3. time period 8. A and L 8. 24,963.00
4. going concern principle 9. E and A 9. 8,635.00
5. monetary unit principle 10. L and A 10. 86,963.00
6. cost principle
7. matching principle Post Test
8. conservatism principle A. Matching Type
9. materiality principle 1. e
10. accrual accounting principle 2. h
3. a
4. c
B.
5. i
a. Business Entity principle 6. f
– a business enterprise is separate and distinct 7. d
from its owner or investor. 8. b
b. Objectivity principle 9. g
- financial statements must be presented with 10. j.
supporting evidence.
c. Materiality principle
– in case of assets that are immaterial to make a B. Think and Solve
difference in the financial statements, a. Total Assets
Building 200,000
the company should instead record it as
Cash 37,700
an expense.
Interest Income 1,680
d. Cost principle Interest Rec. 1,680
– accounts should be recorded initially at cost. Land 50,000
e. Matching principle Notes Rec. 14,000
– cost should be matched with the revenue Office Supplies 13,600
generated. Accounts rec. 52,400
Acc. Dep.-Building (18,000)
ACCOUNTING WEEK 3 ANSWER KEY TOTAL 353,060
b. Total Liabilities
Pre-test Activity 1: Accounts Payable 25,600
1. d Answers may vary Mortgage Payable 151,600
2. d Notes Payable 19,800
3. c TOTAL 197,000
4. b c. Total Expenses
Depreciation Exp 18,000
Supplies Exp 9,900
Taxes and License Exp 22,800
Utilities Exp 36,600
TOTAL 50,700