Pre-qualifying Exam 10.

Are no errors or omissions in the description of

the phenomenon?
1. The overall objective of accounting is
a. Relevance
a. To provide the information that the
b. Free from error
managers of an entity need to control
c. Verifiability
the operations
d. Completeness
b. To provide information that the
11. Older the information, the less useful.
creditors can use in deciding whether to
a. Timeliness
make additional loans
b. Comparability
c. To measure the periodic income of the
c. Verifiability
entity
d. Completeness
d. To provide quantitative financial
12. Equipment with an estimated market value of
information about an entity that is
P60 000is offered for sale at P90 000. The
useful in making economic decision
equipment is acquired for P30 000 in cash and a
2. Information that has no bearing on an economic
note payable of P50 000 due in 30 days. The
decision to be made is useless.
amount used in buyer’s accounting records to
a. Relevance
record acquisition is
b. Comparability
a. P 80 000 (50k+30k)
c. Verifiability
b. P 90 000
d. Completeness
c. P 60 000
3. It is the ability to bring together for the purpose
d. P30 000
of noting points of likeness and difference.
13. Using accrual accounting, revenue is recorded
a. Relevance
and reported only.
b. Comparability
a. If cash is received after the services are
c. Verifiability
rendered
d. Completeness
b. When cash is received at the time
4. It requires that users have some reasonable of
services are rendered
the complex economic activities of entities, the
c. When the services are rendered
accounting process and the technical
without regard to when cash is received
terminology in the statements.
d. When cash is received without regard
a. Relevance
to when the services are rendered
b. Comparability
14. On January 1, 2016, Potter Company bought a
c. Verifiability
building for P2,750,000 to serve as the
d. Understandability
Company’s office. It was estimated that the said
5. Small expenditures for tools are expensed
building will be useful for 20 years. After the
immediately.
end of its useful life, the building can still be
a. Relevance
sold for P250,000. What is the amount of
b. Materiality
depreciation expense that should be recognized
c. Verifiability
by Potter Company on December 31, 2016?
d. Completeness
a. P 100,000
6. When on doubt, recognize all losses and don’t
b. P 125,000 (275000-250k÷20)
recognize gains.
c. P 150, 000
a. Conservatism
d. P 175, 000
b. Comparability
15. Which of the following entries records the
c. Verifiability
receipt of a utility bill from the water company?
d. Completeness
a. Debit Accounts Payable, credit Cash
7. It is the capacity of the information to influence
b. Debit Accounts Payable, credit Utilities
a decision.
Payable
a. Relevance
c. Debit Utilities Expense, credit Accounts
b. Comparability
Payable
c. Verifiability
d. Debit Utilities Payable, credit Accounts
d. Completeness
Receivable
8. Description and numbers or figures must watch
16. An item retailing for P 100,000, subject to a
what really existed or happened.
trade discount of 25% is paid for within the
a. Relevance
discount period on terms 2/10, n/30. What is
b. Comparability
the amount of payment made?
c. Verifiability
a. P 73,500 (100kx75%=75kx2%=1500
d. Faithful Representation
75k – 1500)
9. Financial statements shall be accompanied by
b. P 75,000
notes to financial statements.
c. P 74,000
a. Relevance
d. P 100,000
b. Comparability
17. The process of posting is mostly associated
c. Verifiability
with.
d. Completeness
a. Financial Statements
 b. Source documents a. Disclose the complete effect of a
c. General Ledger transaction in one place.
d. Worksheet b. Make sure a journal entry is not posted
18. As of December 31, Ravenclaw Merchandising twice.
Company’s records show the following c. Transfer journal entries to the ledger
amounts: Purchases P 1,250,000, Purchase accounts.
discount 25, 000, Purchase returns 140,000. If d. Prove the equality of the debit and
Ravenclaw Company’s beginning inventory credit amounts after posting.
amounted to P 375,000, the Company’s total 28. Which of the following steps in the accounting
Cost of Goods Available for sale is. process is done after analyzing business
a. P 710,000 transactions?
b. P 1,085,000 a. Preparing the financial statements
c. P 1,460,000 (1250000+375k-140k-25k) b. Preparing a trial balance
d. P 1,250,000 c. Entering transactions in a journal
19. The unearned rent account has a balance of P d. Posting journal entries
36,000. If P 4,000 of the P 36,000 is unearned at 29. At November 1, 20XX, Johnson Inc. Had an
the end of the accounting period, the amount of Accounts Receivable balance of $200,000.
the adjusting entry is During the month, the company made sales on
a. P 4,000 account of $300,000. In addition, Johnson Inc.
b. P 40,000 Collected P400,000 from customers that owed
c. P 32,000 (36k-4k) them money. At November 30, 2018, the
d. P 36,000 Accounts Receivable balance is
20. Which of the following describes the a. P100,000 debit
classification and normal balance of the b. P100,000 credit
Unearned Rent Revenue account? c. P500,000 debit
a. Asset, debit d. P300,000 credit
b. Liability, credit 30. On July 7, 20XX, Sherman Enterprises received
c. Revenues, credit cash $1,400 for services rendered. The entry to
d. Expense, debit record this transaction will include
21. Debits? a. A debit to Service Revenue of P1, 400.
a. Increase both assets and liabilities. b. A credit to Accounts Receivable of P1,
b. Decrease both assets and liabilities. 400.
c. Increase assets and decrease liabilities. c. A debit to Cash of P1, 400.
d. Decrease assets and increase liabilities. d. A credit to Accounts Payable of P1, 400.
22. A debit is NOT the normal balance for which 31. In the first month of operations, the total of the
account listed below? debit entries to the Cash account amounted to
a. Revenue P3, 000 and the total of the credit entries to the
b. Cash Cash account amounted to P1,800. The Cash
c. Accounts Receivable account has a?
d. Dividends a. P1,800 credit balance.
23. If services are rendered on account, then b. P3,000 debit balance.
a. Assets will decrease. c. P1,200 debit balance.
b. Liabilities will increase. d. P1,800 credit balance.
c. Stockholders’ equity will increase. 32. Which of the following accounts is increased
d. Liabilities will decrease. with a debit?
24. The right side of a t-account is a. Land
a. The balance of an account. b. Service Revenue
b. The debit side. c. Interest Payable
c. The credit side. d. Common Stock
d. Blank. 33. When a company performs a service but has
25. The purchase of an asset for cash not yet received payment, it
a. Increases assets and stockholders’ a. Debits Service Revenue and credits
equity. Accounts Receivable.
b. Increases assets and liabilities. b. Debits Accounts Receivable and credits
c. Decreases assets and increases Service Revenue.
liabilities. c. Debits Service Revenue and credits
d. Leaves total assets unchanged. Accounts Payable.
26. Which accounts normally have credit balances? d. Makes no entry until cash is received.
a. Revenues, liabilities, and dividends 34. If assets total P700,000 and liabilities total
b. Revenues, liabilities, and assets P400,000, how much are the net asset.
c. Revenues, liabilities, and retained a. P300,000
earnings b. P400,000
d. Revenues, liabilities, and expenses c. P700,000
27. The primary purpose of the trial balance is to d. P1,100,000
35. First statement: Each adjusting entry affects one
statement of financial position account and one
income statement account. Second statement:
The accrual basis recognizes revenue when
earned and expenses in the period when cash Is
paid.
a. True, True
b. False, True
c. True, False
d. False, False
36. First statement: Our purpose of a trial balance is
to prove that debits and credits of an equal
amount are in the general ledger. Second
statement: A general journal chronologically
lists transactions and other events, expressed in
terms of debits and credits to accounts.
a. True, True
b. False, True
c. True, False
d. False, False
37. First statement: The first step in the accounting
cycle is the journalizing of transactions and
selected other events. Second statement: Basic
steps in the recording process include
transferring the journal information to the
appropriate account in the statement of
financial position.
a. True, True
b. False, True
c. True, False
d. False, False
38. As assets upon payment of cash generally are
not reverse Which of the statement is false?
a. Depreciation expense, bad debts
expense, and warranty expense are
estimated expense because they all
depend upon future events.
b. The balance sheet is also called the
statement of financial position.
c. Depreciation expense and accrued
revenues are example of deferred
items.
d. When a company records reversing
entries, adjusting entries for deferred
expenses recorded initially as assets
upon payment of cash generally are not
reverse
39. Why are certain cost of doing business
capitalized when incurred and then depreciated
or amortized over subsequent accounting cycle
a. To reduce the income tax liability
b. To aid management in cash flow
analysis
c. To match the cost of production with
revenue as earned.
d. To adhere to the accounting constraint
of conservatism.
40. X Company prepares reversing entries. Which of
the following adjustments will be reversed by
X?
a. The entry to record the depreciation
expense.
b. The entry to provide uncollectible
accounts expense.
c. The entry to record the earned portion
of rent received in advance.
d. The entry to record the unused supplies
at the end of the accounting period.
41. Choose the correct statement
a. No adjusting entries should be
necessary for the inventory account if
the periodic inventory system is used.
b. Examples of accrued expenses include
wages payable and depreciation
expense.
c. Accrued items are those for which
recognition of the related revenue or
expense occurs in an accounting period
after the entity pays or receives cash,
respectively.
d. A worksheet is not a part of the basic
accounting records of the entity.
42. Incurring an expense for advertising on account
would be recorded by:
a. Debiting liabilities
b. Crediting assets
c. Debiting an expense
d. Debiting assets
43. A trial balance
a. Proves that debits and credits are equal
in the ledger
b. Supplies a listing of open accounts and
their balances that are used in
preparing financial statements.
c. Is normally prepared three times in the
accounting cycle.
d. All of these
44. Making insurance payments in advance is an
example of:
a. An accrued receivable transaction.
b. An accrued liability transaction
c. An unearned revenue transaction
d. A prepaid expense transaction
45. Recording revenue earned from a customer, but
not yet collected, is an example of:
a. A prepaid expense transaction.
b. An unearned revenue transaction.
c. An accrued liability transaction.
d. An accrued receivable transaction.
46. Prepayments occur when:
a. Cash flow precedes expense
recognition.
b. Sales are delayed pending credit
approval.
c. Customers are unable to pay the full
amount due when goods are delivered.
d. Manufactured goods await quality
control inspections.
47. Failure to record the unexpired portion of
insurance premium paid would
a. Understate expense
b. Understate profit
c. Overstates owner’s equity
d. Overstates liabilities
48. Failure to record the unearned portion of rent
received in advance would
a. Understate income
b. Understate profit
 c. Overstates owner’s equity b. General ledger only
d. Overstates total liabilities c. General ledger and the accounts
49. Which of the following would most likely be payable ledger
found in an adjusting entry? d. General ledger and the accounts
a. Prepaid expense receivable ledger
b. Accounts receivable 58. At the date of purchase of a service which is not
c. Cash dividend paid immediately used up, the cost of such unused
d. Sales on account service is a.
50. Why are certain costs of doing business a. Revenue
capitalized when incurred and then depreciated b. Asset
or amortized over subsequent accounting cycle c. Liability
a. To reduce the income tax liability d. Expense
b. To aid management in cash flow 59. Which of the statement is false?
analysis a. Depreciation expense, bad debts
c. To match the cost of production with expense, and warranty expense are
revenue as earned. estimated expense because they all
d. To adhere to the accounting constraint depend upon future events.
of conservatism. b. The balance sheet is also called the
51. Which of the following steps in the accounting statement of financial position.
cycle are listed in logical order? c. Depreciation expense and accrued
a. Post the closing entries, take a post- revenues are example of deferred
closing trial balance, and journalize the items.
closing entries. d. When a company records reversing
b. Post the journal entries to the general entries, adjusting entries for deferred
ledger account, prepare a worksheet, expenses recorded initially as assets
and then take a trial balance. upon payment of cash generally are not
c. Take a trial balance, prepare a reverse
worksheet, then prepare financial 60. Which accounts normally have credit balances?
statements. a. Revenues, liabilities, and dividends
d. Prepare the income statement, prepare b. Revenues, liabilities, and assets
the balance sheet and then prepare a c. Revenues, liabilities, and retained
trial balance. earnings
52. The debit and credit analysis of the transaction d. Revenues, liabilities, and expenses
normally takes place. 61. On March 1, Vicente purchased merchandise
a. Before an entry is recorded in a journal. with an invoice price of P270,000 and 2/10,
b. When the entry is posted to the ledger. n/30 terms. On March 3, Troy paid P10,000
c. When the trial balance is prepared. transportation cost on the purchased goods. On
d. At some other point in the accounting March 10, Vicente paid for the merchandise.
cycle. What was Vicente's total cost of the purchased
53. The accounting equation can be started as: merchandise?
a. A + L – OE = 0 a. P270,000
b. A – L + OE = 0 b. P274,400
c. -A + L – OE = 0 c. P274,600
d. A-L-OE=0 d. P280,000
54. Which of the following accounts has a debit 62. Winston started business on Jan. 1. During the
balance? year, the company purchased merchandise with
a. Accounts payable an invoice price of P5,000,000. Winston paid
b. Accrued taxes P200,000 freight on the merchandise. During
c. Accumulated depreciation the year, Winston returned P800,000 of the
d. Bad debts expense merchandise to its suppliers. All purchases were
55. An example of a contra account is. paid for in a timely manner, and a P100,000
a. Depreciation expense cash discount was taken. P4,180,000 of the
b. Accounts receivable merchandise was sold for P6,270,000. What
c. Sales revenue was the Dec. 31 balance in the Inventory
d. Accumulated depreciation account?
56. A sale on account would be recorded by. a. P820,000
a. Debiting revenue b. P320,000
b. Crediting assets c. P120,000
c. Crediting liabilities d. P20,000
d. Debiting assets 63. Gabriela uses the perpetual inventory system.
57. Entries in the purchase journal are posted to Gabriela purchased merchandise with an
the. invoice price of P80,000, terms 2/10, n/30. If
a. Accounts receivable ledger and the Gabriela returned merchandise with an invoice
accounts payable ledger
 price of P20,000 to the supplier, what should a. P17,100
the journal entry to record the return include? b. P18,050
a. Debit to Inventory P20,000 c. P19,000
b. Debit to Inventory P19,600 d. P20,000
c. Credit to Inventory P20,000
Based on the following information, answer Questions.
d. Credit to Inventory P10,000
Suppose UCU Store received the settlement of debt
64. Carl purchased P50,000 merchandise from the
from Lindbergh Soriano by cash. Lindbergh Soriano
Sartre with terms of 3/10, n/30. How much
purchased goods with a list price of P100,000 on Jan. 1
discount is Carl entitled to take if it paid within
with a trade discount of 5%. Suppose the cash discount
the allowed discount period of 10 days?
period is 15 days with a cash discount of 4% and
a. P500
Lindbergh Soriano settled the payment on Jan. 10 in full.
b. P1,000
c. P1,500 70. What is the amount of sales discounts given to
d. P58,800 Lindbergh Soriano?
65. Cormack purchased merchandise with a list a. P1,380
price of P60,000 from the Murray. Murray b. P3,800
offers its customers credit terms of 2/10, n/30. c. P4,000
What amount should Cormack pay if the cash d. P5,000
discount is taken? 71. The correct cash amount for the settlement of
a. P59,400 debts owed by Lindbergh Soriano should be:
b. P60,600 a. P91,200
c. P61,200 b. P96,000
d. P58,800 c. P95,000
66. Luis began the period with P200,000 in d. P95,400
inventory. The entity purchased an additional
P200,000 of inventory and returned P20,000 for
a full credit. A physical count of the inventory at Account Name Debit Credit
year-end revealed an inventory on hand of Sales 750,000
P160,000. What was Luis' costs of goods sold for Sales Returns and Allowances 15,000
the period? Sales Discount 10,000
a. P160,000 Purchases 170,000
b. P220,000 Purchase returns and allowances 20,000
c. P480,000 Freight in 30,000
d. P500,000 Selling expenses 75,000
67. Which of the following is not a reason for sales Genl and Ad expense 275,000
discounts to be offered to the debtors?
a. Increase the amount paid by the Beginning Merchandise inventory P55,000
Ending Merchandise Inventory P35,000
debtors
b. Improve the liquidity by turning the
accounts receivable into cash 72. Net sales for the period
c. Encourage earlier settlement of debts a. P755,000
by debtors b. P725,000
d. Reduce the level of bad debts c. P735,000
68. Which of the following statements is correct d. P775,000
about credit period? 73. Net purchases for the period
a. If a customer purchases goods within a. P150,000
the credit period, a cash discount will b. P180,000
be allowed to the customer. c. P210,000
b. If a customer settles the payment d. P430,000
within the credit period, a cash discount 74. Cost of goods sold for the period
will be allowed to the customer. a. P235,000
c. It refers to the period in which b. P160,000
customers must settle their debts due. c. P200,000
d. It refers to the period in which d. P170,000
customers need to settle one-third of 75. Profit for the period
the debts in order to avoid further a. P525,000
interests charged. b. P450,000
69. ABC Company sold 10 units of goods with a unit c. P250,000
list price of P2,000 on Jan. 1, 2020. Given that d. P175,000
the trade discount is 5% and the cash discount
is 10%, and that the cash discount period is 10
days and the credit period is 30 days, if the
customer settles the debt on Jan. 28, 2020,
what is the actual amount he needs to pay?
 On May 1, 2020, Papasa, Tayo a single proprietor opened Self-Service Laundry. During May, the following transactions
were completed:

1. Evangelista deposited P250,000 in a bank account in the name of the business.

2. Bought chairs and a table paying cash, P6,700.
3. Bought laundry supplies on account from Subic Supply Inc., P3,250.
4. Paid rent for the month, P5,750.
5. Bought washing machines and dryers from Bataan Equipment Corp., P115,000, paying P35,000 in cash
and the balance on account
6. Revenues earned on cash basis for the first half of the month, P19,250.
7. Bought insurance for one year, P5,600.
8. Paid accounts to Bataan Equipment Corp., P7,000.
9. Received and paid electric bill, P2,080.
10. Revenues earned on cash basis for the second half of the month, P12,350.
11. Paid salaries of the part-time assistant, P7,400.
12. Evangelista withdrew cash for personal use, P5,000.
13. Paid accounts to Subic Supply Inc., P2,750.
14. Paid the city government for sidewalk repair assessment, P2,800.

Additional information:

a. Laundry supplies on hand at Dec. 31, 2020 is P1,050.

b. Depreciation for the year amounted to P23,000 for the equipment.
c. Salaries in the amount of P4,000 have accrued at year-end.
d. P1,600 of prepaid insurance expired at year end.

Comprehensive Problems. 7. How much is the total adjusted trial balance

after adjustment?
1. How much is the cash balance in the ledger?
a. P382,000
a. P281,600
b. P380,100
b. P80,080
c. P382,100
c. P201,520
d. P381,000
d. P361,680
8. How much is the profit or loss?
2. How much is the accounts payable balance in
a. P17,230
the ledger?
b. (P17,200)
a. P73,500
c. (P17,230)
b. P83,250
d. P17,200
c. P9,750
9. How much is the changes in equity?
d. P93,000
a. P245,000
3. How much is the laundry revenue balance in the
b. P262,230
ledger?
c. P227,770
a. P6,900
d. P227,700
b. P19,250
10. How much is the total balance in balance sheet?
c. P31,600
a. P305,000
d. 31,500
b. P305,070
4. How much is the trial balance?
c. P305,200
a. P354,900
d. P305,270
b. P355,100
c. P355,080
d. P350,100
5. How much is the total expenses before
adjusting entries?
a. P18,030
b. P18,000
c. P18,080
d. P18,500
6. How much is the total adjustments?
a. P35,100
b. P35,000
c. P30,080
d. P36,200
Use the following information to answer the questions below. Villanueva Realty had the following balance sheet
accounts and balances:

Accounts Payable : P60,000 Accounts Receivable : P10,000 Building : ?

Cash : P30,000 Equipment: P70,000

Arlyn Villanueva, Capital : ? Land: 70,000

1. If the balance of the Villanueva, Capital account

was P210,000, what would be the balance of
the Building account?
a. P250,000
b. P40,000
c. P90,000
d. P210,000
2. If the balance of the Building account was
P170,000, what would be the total of liabilities
and owner's equity?
a. P170,000
b. P270,000
c. P320,000
d. P350,000
3. If the balance of the Building account was
P150,000 and the equipment was sold for
P70,000, what would be the total of owner's
equity?
a. P150,000
b. P160,000
c. P270,000
d. P330,000
4. If the balance of the Building account was
P140,000 and P30,000 of Accounts Payable
were paid in cash, what would be the balance of
the Villanueva, Capital account?
a. P210,000
b. P260,000
c. P320,000
d. P340,000
5. If the balance of the Building account was
P80,000 and P30,000 of Accounts Payable were
paid in cash, what would be the total liabilities
and owner's equity?
a. P240,000
b. P280,000
c. P290,000
d. P230,000
 Magy Ging Sipiey Hobby Shop
Unadjusted Trial Balance
Dec. 31, 2020

CASH 100,000
ACCOUNTS RECEIVABLE 500,000
MERCHANDISE INVENTORY 700,000
PREPAID RENT 300,000
SHOP EQUIPMENT 1,600,000
ACCUMULATED DEPRECIATION 200,000
ACCOUNTS PAYABLE 400,000
SIPIEY, CAPITAL 1,300,000
SIPIEY, WITHDRAWALS 100,000
SALES 2,900,000
SALES DISCOUNTS 100,000
PURCHASES 800,000
PURCHASES RETURNS AND ALLOWANCES 200,000
TRANSPORTATION IN 100,000
SALARIES EXPENSE 400,000
ADVERTISING EXPENSE 150,000
UTILITIES EXPENSE 100,000
SUPPLIES EXPENSE 50,000
TOTALS 5,000,000 5,000,000

Additional information:
a. Accrued salaries at year-end amounted to P30,000.
b. Rent in the amount of P100,000 has expired during the year.
c. Depreciation on shop equipment is P200,000.
d. The Dec. 31 merchandise inventory amounted to P500,000.

1. How much is the total adjustments? c. P2,070,000

a. P300,000 d. P2,270,700
b. P330,000 8. How much is the total balance in balance sheet?
c. P320,000 a. P3,050,000
d. P310,000 b. P2,050,070
2. How much is the accounts payable balance in c. P3,250,200
the adjusted trial balance? d. P2,500,000
a. P730,500 9. How much is the post-closing trial balance?
b. P400,000 a. P3,050,000
c. P900,750 b. P2,050,070
d. P930,000 c. P3,250,200
3. How much is the total expenses before d. P2,900,000
adjusting entries? 10. How much is the total assets in balance sheet?
a. P700,000 a. P2,500,000
b. P180,000 b. P1,580,000
c. P700,080 c. P1,700,080
d. P700,500 d. P1,700,500
4. How much is the total expenses after adjusting
entries?
a. P1,030,000
b. P1,080,000
c. P1,700,080
d. P1,700,500
5. How much is the total adjusted trial balance?
a. P3,820,000
b. P5,200,000
c. P5,230,000
d. P5,300,000
6. How much is the profit or loss?
a. P(P870,230)
b. P870,230
c. P(870,000)
d. P870,000
7. How much is the changes in equity?
a. P2,405,000
b. P2,070,230
SOLUTIONS
CASH 30,000
ACCOUNTS RECEIVABLE 10,000 CASH PAPASA TAYO CAPITAL
EQUIPMENT 70,000 250,000 6,700 250,000
LAND 70,000 19,250 5,750
BUILDING 90,000 12,350 35,000 LAUNDRY REVENUES
TOTAL 270,000 5,600 19,250
7,000 12,350
ACCOUNTS PAYABLE 60,000 2,080 31,600
ARLYN VILLANUEVA CAPITAL 210,000
7,400
TOTAL 270,000
5,000 ACCOUNTS PAYABLE
CASH 30,000 2,750 7,000 3,250
ACCOUNTS RECEIVABLE 10,000 2,800 2,750 80,000
EQUIPMENT 70,000 281,600 80,080 9,750 83,250
LAND 70,000 201,520 73,500
BUILDING 170,000 LAUNDRY SUPPLIES
TOTAL 350,000 3,250 PAPASA TAYO WITHDRAWAL
5,000
CASH 100,000
PREPAID INSURANCE
ACCOUNTS RECEIVABLE 10,000
5,600 SALARIES EXPENSE
EQUIPMENT
LAND 70,000 7,400
BUILDING 150,000 EQUIPMENT
TOTAL 330,000 115,000 RENT EXPENSE
5,750
ACCOUNTS PAYABLE 60,000 FURNITURE AND FIXTURES
ARLYN VILLANUEVA CAPITAL 270,000 6,700 UTILITIES EXPENSE
TOTAL 330,000 2,080
CASH -
MISCELLANEOUS EXPENSE
ACCOUNTS RECEIVABLE 10,000
EQUIPMENT 70,000 2,800
LAND 70,000
BUILDING 140,000
290,000
ACCOUNTS PAYABLE 30,000
ARLYN VILLANUEVA CAPITAL 260,000
290,000

CASH -
ACCOUNTS RECEIVABLE 10,000
EQUIPMENT 70,000
LAND 70,000
BUILDING 80,000
TOTAL 230,000
 TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALANCE INCOME STATEMENT CHANGES IN EQUITY BALANCE SHEET

CASH 201,520 201,520 201,520

LAUNDRY SUPPLIES 3,250 2,200 1,050 1,050
PREPAID INSURANCE 5,600 1,600 4,000 4,000
EQUIPMENT 115,000 115,000 115,000
ACCUMULATED DEPRECIATION 23,000 23,000 - 23,000
FURNITURE AND FIXTURES 6,700 6,700 6,700
SALARIES PAYABLE 4,000 4,000 4,000
ACCOUNTS PAYABLE 73,500 73,500 73,500
PAPASA TAYO CAPITAL 250,000 250,000 250,000 227,770
PAPASA TAYO WITHDRAWAL 5,000 5,000 5,000
LAUNDRY REVENUES 31,600 31,600 31,600
INCOME SUMMARY 17,230
INSURANCE EXPENSE 1,600 1,600 1,600
DEPRECIATION EXPENSE 23,000 23,000 23,000
LAUNDRY SUPPLIES EXPENSE 2,200 2,200 2,200
SALARIES EXPENSE 7,400 4,000 11,400 11,400
RENT EXPENSE 5,750 5,750 5,750
UTILITIES EXPENSE 2,080 2,080 2,080
MISCELLANEOUS EXPENSE 2,800 2,800 2,800
TOTAL 355,100 355,100 30,800 30,800 382,100 382,100 48,830 31,600 22,230 250,000 305,270 305,270
- 17,230 227,770
 Magy Ging Sipiey Hobby Shop
WORKSHEET
Dec. 31, 2020
UNADJUSTED TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALANCE INCOME STATEMENT CHANGES IN EQUITY BALANCE SHEET POST-CLOSING TRIAL BALANCE
CASH 100,000 100,000 100,000 100,000
ACCOUNTS RECEIVABLE 500,000 500,000 500,000 500,000
MERCHANDISE INVENTORY 700,000 700,000 700,000 500,000 500,000 500,000
PREPAID RENT 300,000 100,000 200,000 200,000 200,000
SHOP EQUIPMENT 1,600,000 1,600,000 1,600,000 1,600,000
ACCUMULATED DEPRECIATION 200,000 200,000 400,000 - 400,000 400,000
ACCOUNTS PAYABLE 400,000 400,000 400,000 400,000
SALARIES PAYABLE 30,000 30,000 30,000 30,000
SIPIEY, CAPITAL 1,300,000 1,300,000 1,300,000 2,070,000 2,070,000
SIPIEY, WITHDRAWALS 100,000 100,000 100,000
SALES 2,900,000 2,900,000 2,900,000
SALES DISCOUNTS 100,000 100,000 100,000
PURCHASES 800,000 800,000 800,000
PURCHASES RETURNS AND ALLOWANCES 200,000 200,000 200,000
TRANSPORTATION IN 100,000 100,000 100,000
SALARIES EXPENSE 400,000 30,000 430,000 430,000
DEPRECIATION EXPENSE 200,000 200,000 200,000
RENT EXPENSE 100,000 100,000 100,000
ADVERTISING EXPENSE 150,000 150,000 150,000
UTILITIES EXPENSE 100,000 100,000 100,000
SUPPLIES EXPENSE 50,000 50,000 50,000
TOTALS 5,000,000 5,000,000 330,000 330,000 5,230,000 5,230,000 2,730,000 3,600,000 870,000 2,500,000 2,500,000 2,900,000 2,900,000
870,000 2,070,000