NAME: Rainnel James Antaran SCORE:

SECTION: BSABA-1 (FM)

TRUE OR FALSE

1. False
2. True
3. True
4. True
5. True
6. False
7. False
8. True
9. True
10. False
11. True
12. False
13. True
14. True
15. True
16. True
17. False
18. True
19. False
20. True

MULTIPLE CHOICE

1. B
2. D
3. A
4. A
5. A
6. C
7. D
8. C
9. B
10. C
11. A
12. A
13. A
14. D
 15. D
16. D
17. B
18. D
19. B
20. C
21. C
22. D
23. B
24. D
25. C
26. D
27. A
28. C
29. C
30. A

PROBLEM #1

CLASSIFICATION OF ACCOUNTS

Ledger Assets Liabilities Owners Owners Incom Expense Normal

Accounts Equity Withdrawal e s Balance
(Debit
or
Credit)
Cash √ Debit
Accounts √ Debit
Receivable
Ardina √ Debit
Capital
Ardina √ Credit
Withdrawals
Service √ Debit
Revenues
Prepaid Rent √ Debit
Accounts √ Credit
Payable
Short- term √ Credit
Employment
Bonds √ Credit
Payable
Land √ Debit
Supplies √ Credit
Expense
Prepaid √ Debit
Insurance
 Utilities √ Credit
Expenses
Accumulated √ Credit
Depreciation
Unearned √ Credit
Revenues
Office √ Debit
Equipment
Rent Payable √ Credit
Notes √ Debit
Receivable
Interest √ Credit
Expense
Notes √ Credit
Payable
Supplies √ Debit
Interest √ Debit
Receivable
Rent √ Credit
Expense
Cash √ Debit
Equivalents

Problem #2

Transaction Analysis

Required:

For each of the transactions of Maurice Sabio Tours Specialist, a sole proprietorship, fill

in the spaces to answer the following questions:

1. What are the two accounts affected by the transaction?

Ans: the two accounts that affected by the transactions are debit and credit.

2. What type of account is affected— asset, liability, owner's capital, owner's

Withdrawal, income or expense account?

Ans: Asset, Liability and expense account are affected in this transaction.

3. Should the account be increased or decreased?

Ans: in this transaction the account is decreased.

4. Should the account be debited or credited?

Ans: yes the account is credited.

Problem #3

Developing a Chart of Accounts and Recording Transactions in T-Accounts

Paz Bobadilla

Chart of Accounts

Balance Sheet Accounts Income Statement Accounts

Assets Income

Cash Service Revenues

Accounts Receivable Expenses

Service Vehicles Gas expense

Prepaid Rent

Equipment

Liabilities

Notes Payable

Unearned Revenues

Accounts Payable

Owner’s Equity

Paz, Capital

The balances of the T-accounts

Type of Account To Increase Balance To Decrease Balance

Assets: cash, accounts receivable, Debit Credit

Vehicles, prepaid rent, equipment,

Supplies, prepaid insurance

Liabilities: notes payable, unearned Credit Debit

Revenues, accounts payable

 Trial Balance

 Cash 1,007,500

Accounts Receivable 155,000

Service Vehicle 690,000

Prepaid Rent 20,000

Equipment 165,000

Notes Payable 24,000

Paz, Capital 1,200,000

Service Revenues 10,500

Accounts Payable 628,500

Gas Expense 12,000

Unearned Revenues 207,500

P2,060,000 P2,060,000

Problem #4

Recording Transactions in T-Accounts and Preparing a Trial Balance

The balances of the T-accounts

Type of Account To Increase Balance To Decrease Balance

Assets: Cash, Supplies, Prepaid Insurance, Laundry Debit Credit

Equipment, Furniture and Fixtures,

Liabilities: Accounts Payable Credit Debit

Trial Balance

Cash

Supplies
Prepaid Insurance

Laundry

Equipment

Furniture and Fixtures

Accounts Payable

Rialubin, Capital

Rialubin, Withdrawals

Laundry Revenues

Salaries Expense

Rent Expense

Utilities Expense

Miscellaneous Expense