NAME: TESORERO, PRINCESS KELLY V.

SEC: HRM 1-4

MODULE 11

PRE-ASSESSMENT:

Multiple Choice:

D 1. Which of the following accounts could appear in an adjusting entry, closing

entry and reversing entry?
a. Interest Income c. Salaries Payable
b. Accumulated Depreciation-Buildings d. Depreciation Expense-Buildings

C 2. When there is a loss, the entry to close the Income Summary account is: a.
Debit Loss and credit Income Summary
b. Debit Owner’s Capital and credit Income Summary
c. Debit Income Summary and credit Loss
d. Debit Income Summary and credit Owner’s Capital

A 3. The post-closing trial balance contains:

a. Real accounts only
b. Nominal accounts only
c. Both real accounts and nominal accounts
d. Neither real accounts nor nominal accounts

B 4. An important purpose of closing entries is to:

a. Adjust the accounts in the ledger.
b. Set nominal account balances to zero at the start of the next period. c. Set real
account balances to zero at the start of the next period. d. Help in preparing
financial statements

B 5. The primary objective of reversing entries is to:

a. Correct errors
b. Simplify the bookkeeping associated with accruals from the prior period. c.
Transfer the balance of the expense accounts to the Owner’s Capital account
and set the accounts equal to zero.
d. Place the expenses for the current period in the proper account
ACTIVITY / EVALUATION:

Presented below is the adjusted trial balance of Elvie Zulueta, a CPA for the year ended
December 20A:

A. CLOSING ENTRIES
The entry to close the income account of Elvie Zulueta, CPA, is as follows:

Dec. 31
Professional Income P180,000
Income Summary P180,000
To close income to the income summary account

The entry to close the expense accounts of Elvie Zulueta, CPA, is as follows

Dec. 31
Income Summary P59,980
Uncollectible Account P480
Depreciation Expense 4,500
Utilities Expense 25,000
Supplies Used 5,000
Salaries Expense 15,000
Rent Expense 10,000
To close expenses to the income summary account

Income Summary
59,980 180,000

120,020
The entry to close profit of Elvie Zulueta, CPA, is as follows

Dec. 31
Income Summary P120,020
E. Zulueta, Capital P120,020
To close “profit” to the capital account

The entry to close drawings of Elvie Zulueta, CPA, is as follows

Dec. 31
E. Zulueta, Capital P15,000
E. Zulueta, Drawing P15,000
To close drawings to the capital account
B. POST- CLOSING TRIAL BALANCE

Elvie Zulueta, CPA

Adjusted Trial Balance
December 31, 20A

Cash in Bank P 78,000

Accounts Receivable 35,000
Estimated Uncollectible Account P 480
Unused Supplies 12,500
Office Equipment 45,000
Accumulated Depreciation 4,500
Accounts Payable 13,000
E. Zulueta, Capital 152,520

TOTAL P 170,500 P170,500