BASIC ACCOUNTING QUIZ BOWL

KIM NG CHUA is an accountant and the owner of 2K Consultancy Firm. Below is the trial balance of the company for the
month ended April 30, 2021.

DEBIT CREDIT
Cash P 300,000
Notes Receivable 200,000
Accounts Receivable 185,000
Interest Receivable
Supplies 30,000
Prepaid Insurance 48,000
Prepaid Rent
Land
Computer Equipment 300,000
Accumulated Depreciation – Computer Equipment
Service Vehicle 50,00
Accumulated Depreciation – Service Vehicle
Notes Payable P 200,000
Accounts Payable 100,000
Unearned Consultancy Revenue 30,000
Interest Payable
Chua, Capital 500,000
Chua, Withdrawals 50,000
Consultancy Revenue 543,000
Interest Income
Salaries Expense 100,000
Utilities Expense 40,000
Advertising Expense 20,000
Rent Expense
Insurance Expense
Depreciation Expense-Computer Equipment
Depreciation Expense – Service Vehicle
Supplies Expense
Interest Expense
Miscellaneous Expense 50,000
TOTAL

During the month of May 2021, the company completed the following transactions:
 May 1 Invested in the business computer equipment valued at P 20,000, Land, P 100,000 and placed
P185,000 in a business checking account.
2 Purchased a service vehicle for P 120,000. Paid P 80,000 cash and the balance is due next month.
3 Purchased supplies on account for P3,000. The company is using asset method.
4 Performed services to customer for P 100,000, received 50% down payment and the balance is to
be collected next month.
5 Paid P 24,000 1-year advance rent payment. The company is using asset method.
6 Received and paid electricity bill, P 5,000.
7 Received advertisement bill to be paid next month, P 15,000.
8 Paid accounts, P 20,000.
9 Collected P 30,000 cash from customers as payment for the previous services rendered.
10 Paid salaries, P 20,000.
11 Withdrew cash for personal use, P 10,000.
12 Paid notes, P 20,000.
13 Received 4-month advance payment from customer, P 20,000. The company is using liability
method.
14 Collected notes from customer, P 25,000.

Additional Information: For the year ended May 31, 2021, the following accounts need to be adjusted:
a. Depreciation for computer equipment and service vehicle amounted to P 35,000 and P 45,000, respectively.
b. Accrued interest on notes payable amounted to P 30,000.
c. Accrued interest on notes receivable, P 45,000.
d. One-month prepaid rent is considered expired.
e. 80% of Prepaid insurance is considered expired.
f. P 30,000 of unearned consultancy revenue should be recognized as earned.
g. Supplies on hand, P 23,000.

Requirements: Provide the following documents as support to your answer:

1. Record all the transactions using the General Journal.
2. Post all the transactions using the General ledger.
3. Prepare a Trial Balance.
4. Adjusted Trial Balance
5. Adjusting Entries
6. Worksheet
7. Financial Statements: Statement of Financial Performance, Statement of Financial Position and Statement of
Changes in Equity
8. Closing and Reversing Entries
9. Post-Closing Trial Balance

EASY
1. The total debit balance of unadjusted trial balance as of April 30, 2021 is
a. 1,370,000
b. 1,390,000
c. 1,383,000
d. 1,373,000

2. To record the transaction in May 1, the account that needs to be credited is

a. Cash
b. Equipment
c. Land
d. Chua, Capital

3. The account that needs to be credited for May 2 transaction is

a. Accounts Payable, 40,000
b. Notes Payable, 40,000
c. Cash, 40,000
d. Service Vehicle, 40,000

4. The account that needs to be debited for May 3 transaction is

a. Supplies Expense, P 3,000.
b. Supplies, P 3,000.
c. Accounts Payable, P 3,000.
d. No entry

5. The journal entry for May 4 transaction is

Description Debit Credit
a. Cash P 50,000
Accounts Receivable 50,000
Consultancy Revenue P 100,000
b. Cash 100,00
Consultancy Revenue 100,000
c. Cash P 50,000
Notes Receivable 50,000
Consultancy Revenue P 100,000
d. Accounts Receivable 100,00
Consultancy Revenue 100,000

6. The journal entry for May 5 transaction is

Description Debit Credit
a. Rent expense P 24,000
Cash P 24,000
b. Prepaid Rent 24,000
Rent Expense 24,000
c. Rent expense P 24,000
Prepaid Rent P 24,000
d. Prepaid Rent P 24,000
Cash P 24,000
 7. The journal entry for May 6 transaction is
Description Debit Credit
a. Electricity expense P 5,000
Cash P 5,000
b. Utilities expense P 5,000
Cash P 5,000
c. Electricity expense P 5,000
Accounts Payable P 5,000
d. Utilities expense P 5,000
Accounts payable P 5,000

8. The journal entry for May 7 transaction is

Description Debit Credit
a. Cash P 15,000
Advertisement bill P 15,000
b. Advertising expense P 15,000
Cash P 15,000
c. Advertising expense P 15,000
Accounts Payable P 15,000
d. Cash P 15,000
Advertising expense P 15,000

9. To record the transaction on May 8, the account that needs to be debited is

a. Notes payable
b. Cash
c. Accounts payable
d. Paid accounts

10. The account that needs to be credited for May 9 transaction is

a. Consultancy Revenue c. Accounts Receivable
b. Cash d. Notes payable

MODERATE

11. The unadjusted balance of cash for the year ended May 31, 2021 is
a. 431,000
b. 445,000
c. 421,000
d. 441,000

12. The total credit balance of unadjusted trial balance is

a. 1,816,000
b. 1,825,000
c. 1,811,000
d. 1,821,000

13. The adjusting entry for additional information letter (g.) is a debit to
a. Supplies Expense, 23,000
b. Supplies Expense, 10,000
c. Supplies, 10,000
d. Supplies, 23,000

14. The adjusting entry for additional information letter (e.) is a credit to
 a. Insurance Expense, 9,600
b. Insurance Expense, 38,400
c. Prepaid Insurance, 9,600
d. Prepaid Insurance, 38,400

15. The adjusting entry for additional information letter (a.) is a debit to
a. Depreciation Expense-Service Vehicle, 35,000
b. Depreciation Expense-Computer Equipment, 35,000
c. Accumulated Depreciation-Computer Equipment, 45,000
d. Accumulated Depreciation-Service Vehicle, 35,000

16. The adjusting entry for additional information letter (b.) is a credit to
a. Interest Expense, 30,000
b. Interest Income, 30,000
c. Interest Payable, 30,000
d. Interest Receivable, 30,000

17. The adjusting entry for additional information letter (c.) is a credit to
a. Interest Expense, 45,000
b. Interest Income, 45,000
c. Interest Payable, 45,000
d. Interest Receivable, 45,000

18. The total credit balance of the adjustments is

a. 245,600
b. 225,400
c. 235,400
d. 235,600

19. The total debit balance of the adjusted trial balance is

a. 1,901,000
b. 1,891,000
c. 1,931,000
d. 1,971,000

20. The balance of Supplies Expense in the adjusted trail balance is

a. 43,000
b. 10,000
c. 23,000
d. 33,000

DIFFICULT

21. The total worksheet credit balance of the Income statement is

a. 640,000
b. 745,000
c. 673,000
d. 718,000

22. The total worksheet debit balance of the Income statement is

 a. 421,600
b. 441,400
c. 410,400
d. 446,600

23. Profit for the period is

a. 331,400
b. 341,600
c. 307,600
d. 319,400

24. The total worksheet credit balance of the Balance Sheet is

a. 1,253,000
b. 1,271,000
c. 1,251,000
d. 1,256,000

25. The total worksheet debit balance of the Balance Sheet is

a. 1,590,400
b. 1,581,600
c. 1,560,600
d. 1,561,400

26. The Profit for the period will be closed to what account?
a. Chua, Capital
b. Chua, Withdrawal
c. Service Revenue
d. Income Summary

27. The balance of Chua, Capital in the Statement of Changes in Equity is

a. 1,052,600
b. 1,005,600
c. 1,093,400
d. 1,083,400

28. The amount of total assets in the Statement of Financial Position is

a. 1.435,400
b. 1,445,400
c. 1,450,600
d. 1,420,600

29. The amount of total liabilities in the Statement of Financial Position is

a. 342,000
b. 368,000
c. 362,000
d. 362,000

30. The total debit and credit balance of the Post-Closing Trial Balance is
 a. 1,540,400
b. 1,525,600
c. 1,500,600
d. 1,510,400

CLINCHER

31. The closing entry to close the profit for the period is to debit the
a. Income Summary, 331,400
b. Income Summary, 341,600
c. Income Summary, 307,600
d. Income Summary, 319,400

32. The closing entry to close the salaries expense for the period is by
a. debiting Salaries Expense, 120,000
b. debiting Income Summary, 120,000
c. crediting Salaries Expense, 100,000
d. crediting Income Summary, P 100,000

-DONE-