Quiz#2

In a graphing paper, formulate the demand supply function using the constant 5 and the slope is t3 for
supply and -3 for demand after, make the demand and supply schedules using the price range of 0 to
5. Lostly draw accurately the demand and supply

Identify changes in demand. Choose the later of your choice

Qd C. D E. No Effect

Qd D. D

Cars and gasoline are complementary goods. Gasoline prices rise, hat will happen to the demand for
gasolines

Consumers are expecting a price hike in three days for sugar. What will happen to the demand for
sugar after three days?

Rice & corn are substitute goods. Corns increase price. What will happen to the demand for rice.

The company for sardines received a subsidy. What will happen to the demand for sardines

During rainy season, what will happen to the demand for umbrellas?

A lot of tourist went to Palawan, what will happen to the demand in Palawan?

Ripped jeans are very trend nowadays, what will happen to the demand for such jeans?

Due to inflation, price of tomatoes increased, what will happen to the demand for tomatoes?

The company became capital intensive, what will happen to the demand for company’s goods

Many filipino’s are migrating abroad, what will happen to the demand for phillipine’s goods

Identity changes in supply, choose the letter of your choice

Qs C. S E. No Effect

Qs D. S

Because the machines are producing low quality shirts. The company shifted in becoming labor-
intensive what will happen to the supply of shirts?

Due to inflation, price of tomatoes increased, what will happen to supply for tomatoes?

During rainy season, what will happen to supply of umbrellas?

A lot of tourist went to Palawan, what will happen to the supply of goods in Palawan?

Cars and gas are complimentary goods, Gasoline prices rise what will happen to the supply for
gasolines?

Consumers are expecting a price hike in three days for sugar, what will happen to the supply for sugar
now
A lot of company of sushi transferred here in the Philippines. What will happen to the supply of sushi
in the Philippines?

The company for sardines received a subsidy. What will happen to the supply for sardines

Ripped jeans are very trendy nowadays. What will happen to the supply of such jeans?

Rice& Corn are substitute goods. Corns increase price, what will happen to the supply for corn?
 UNIVERSITY OF THE EAST SECONDARY
LABORATORY SCHOOL MANILA
QUESTINNAIRE
FOURT PERIODICAL EXAMINATION
HBE 121-APPLIED Economics
S.Y. 2018-2019
SET A
ANALOGY. Complete the analogy by writing the word(s) that would best complete the statement

1-2. Hog Rising: Pig _____: Cow: _____: Chicken

3.Hard Goods; Durable goods; Soft Goods _______

4. Top Import: Electron Products: Top Export______

5-6> Lockers, shelves: Furniture Making: Tomato, Cucumber: ____: Catfish, oyster, prawns: ______

7-8. 1st Largest Trading Partner: Japan 3rd Largest Trading partner: _____5th Largest Trading Partner__
9. Soap: Manufacturing: Biofuels___

10-11. APEC: Asia pacific economic cooperation: ASEAN: ____: WTO: _____

12.Manufacturing continues to grow: role is changing: manufacturing is diverse: _____

13. Museums: arts: Cold Storage Facilities: ______

14.hard goods: Many years: soft Goods: ____

15.Chicken: meat and eggs: Goad: ______

II. IDENTIFICATION. Identify what is being described in the statement

It refers to the price of using land in the process of production.

It is the exchange of the capital, goods, and services across foreign borders.

They are the ones supplying services in the labor market.

It causes excess supply of labor because the wage rate is high but the firm’s requirement for
employment is still high
It Is the process of selling consumer goods and services to customers through multiple channels of
distribution to earn a profit

Its goal is to lower the equilibrium price to help consumer afford the commodity.

The supply curve will shift in this if there would be calamities.

In the business, you need to consider certain weather and irrigation conditions, pest resistant
varieties and fruitful varieties,

The demand curve will shift in this direction if there would be calamities

The government intervention in the labor market which will result in a decrease in employment rate.

The relationship between the demand of dollar and exchange rate.

It is the price of foreign currency

The main determinant in the demand and supply of labor services

These people will buy your products in bulk for a very cheap price.

The business which is involved in selling the ever-lasting natural mineral that is essential for human
survival

III. MULTIPLE CHOICE. Write the letter that BEST describes the following statement

Monopoly B. Oligopoly C. Perfect Competition D. Monopolistic Competition

A large number of buyers and sellers

Anyone can start or leave the business at any time

Cooperative behavior in the form of price-fixing or output setting agreements

Difficulty entering and exiting the market

Economies of scale

Entry into the market is easy

Few very large sellers dominate the industry

Firms can only make normal profits in the long run

Homogenous product

Ideal situation for the buyers and sellers

Limited or no good substitutes

Little information is available to buyers

Market price and quantity of output are determined exclusively by forces of demand and supply
Market structure that is difficult but not impossible to enter

Seller sets the market price

Sellers offer similar but not identical products

The action of one firm can influence the actions of the other firms

There is no need for government regulation

There is perfect knowledge with no information failure

Unlimited long run resource mobility

YES or NO. write YES if the statement is correct and NO if the statement is incorrect

The more distinctive the product, the easier it is for the supplier to drive-up the price

A company is profitable if all the five competitive forces of porter are strong

The bigger the number of buyers in the market, the greater is the power enjoyed by the buyer.

The bargaining power of competitors to meet the market’s current needs will serve as an attractive
opportunity for the firm

Low capability of competitors to meet the market’s current needs will serve as an attractive
opportunity for the firm

If cost of switching to another vendor is high, then the strength of the competitive is also high

When it is easy to substitute products in the market, it is expected that buyers will switch to
alternatives in case price increases

The strength of bargaining power forces depends on the availability of substitutes

Typically, as an individual, a customer has substantial bargaining power over a large manufacturing
industry

If barriers to entry prevent new entrants, profits will increase among the existing participants

If rent increases, the supply for land also increases

Price floor should be set higher than the equilibrium price

Implementation of a price ceiling would lead to a shortage

In commercial districts, it is economic to use land for agricultural production

If wage rate is low, few laborers are willing to work

In foreign labor markets, if the exchange rate increases, the supply curve will shift to the left

Refer to 16: the equilibrium foreign wage rate will increase

Refer to 16; the equilibrium quantity of labor of OFWs will increase

The supply of labor of OFWs is the influenced by foreign wage rate and exchange rate>

If exchange rate is higher, imports will increase

 UNIVERSITY OF THE EAST
BASIC EDUCATION-SENIOR HIGH SCHOOL
Name_______________________________________& section_____________ Date_________

Surname First name middle name

ADJUSTING ENTRIES
HBA111-Fundamentals of accountancy, business and Management 1

Prof. Allan Paul R. Mendoza

S.Y. 2018-2019

Problem 1. Prepaid Expenses

The following are some of the transactions made by timang ako cleaners during 2019

April 1 Acquired cleaning supplies in the amount of p 260,000. A count of supplies on December 31
2019 Amounted to P110,000

Aug 1 Paid P 360,000 for insurance premium for the company. The insurance is valid for 3 years

Nov 1 Paid P240,000 fir annual rent

Requirements 1. Record the transactions using assets method& prepare the adjusting entries at
year-ended December 31, 2019

2. Record the transaction using expense method & prepare the adjusting entries at
year ended December 31, 2019

Problem 2: Accrued Expenses

Timang sya Corgo Company provided the following transactions during the year 2019:

Oct 1 Borrowed P100,000 by issuing a 1-year note with 7% annual interest to Century Bank

Dec. 31 Three days office salaries are unpaid as at December 31. Salaries are P75,000 for a five-day
work week

Dec.31 Administrative employees earn a total of P10,000 per day for a five-day work week beginning
Monday ending Friday. They are paid for the work week ending Dec.26. They worked on Monday (Dec
29). Tuesday (Dec 30) and Wednesday (Dec 31)

Dec 31 The company accrued the interest expense for the bank loan amounted to P600,000
borrowed last Sept1, 2018. The loan carried am 8% annual rate of interest

Requirements: 1. Prepare the adjusting entries at year-ended December 31, 2019

Problem 2: Bad debts Expenses

The timang Karin Company provided the following information before adjustment during 2019

Accounts Receivable P1,000,000

Allowance for Bad Debts 100,000

Net Realizable Value 900,000

Service Revenue 3,000,000

Requirements; Prepare the adjusting entry for year-ended December 31, 2019 assuming:

Bad debts expense is 10% of service revenue

Allowance for bad debts is 15% of Accounts Receivable

 HBA 111- FUNDAMENTALS OF ACCOUNTING 1
Adjusting Entries
Prof. Cherry Ann C. Mandaquit

Problem 1

Nakakaba this company, owned by Ms. Showed their unadjusted trial balance for the year
ended December 2018:

Debit Credit

Cash P 600,000

Accounts Receivable 245,000

Notes Receivable 325,000

Allowance for Doubtful Accounts P 700

Prepaid Insurance 120,000

Office Supplies 20,000

Office Equipment 75,0000

Accumulated Depreciation- Office Equipment 26,000

Service Vehicle 420,000

Accumulated Depreciation-Service Vehicle 0

Accounts Payable 112 500

Notes Payable 375 000

Unearned Service Revenue 200 000

Student, Capital 850 750

Student, Drawing 45 000

Service Revenue 720 000

Salaries Expense 183 300

Rent Expense 180 000

Utilities Expense 35 200

Repairs and maintenance Expense 21 200

Representation Expense 17 500

Total P 2 292 000 P 2 292 000

The balance of prepaid insurance was purchased March 1, 2018 covering a 4-year period

Service vehicle was purchased last July 15, 2018 estimated useful life of 10 years with no salvage value

The value of unearned service revenue was an advance payment received last august 31 2018
covering 2 year-contract

Half the balance of the notes Receivable is an interest- bearing note received last September 1,2018.
The annual rate on the face pf the note is 8%

Payment for salaries is always made every Friday. December 31 falls on Wednesday, Ms. Student has
5 employees with a daily rate of P620 each

Estimated doubtful accounts are considered to be 8% of the unadjusted balance of Accounts

Receivable

Required: Prepare your adjusting entries and complete your 14: column worksheet
 UNIVERSITY OF THE EAST
BASIC EDUCATION-SENIOR HIGH SCHOOL

Name: & Section Date:

Surname First name Middle name

QUIZ1: ADJUSTING ENTRIES

HBA111-Fundamental of Accountancy Business and Management 1
Prof. Allan Paul R. Mendoza
S.Y. 2018-2019

Magdasal-dasal kana Company Provided the Following information for the year ended December
31,2019

A. Paid P240 000 for insurance premium for the company. He insurance is valid for 3 years. The
company debited insurance expense account last august 1, 2019
B. Received an P64,000 cash advance for a contract to provide services in the future. The contract
required a 1.5-year commitment. The contract is dated November 30,2018
C. Issued a note for the settlement of accounts for P340,000 dated May 31, 2019 the note bears a
10% interest rate with a maturity date of May 31,2021
D. Purchased an office equipment last January 1,2016 with a useful life of five years. The item is
worth P 250,000 after deducting salvage value for P10,000
E. The salary rate of the company is P10 000 per employee for a five-day work week beginning
Monday. assume that December 31 is Friday. The five company employees are paid every
Tuesday
F. The supplies account has a balance of P15 000 as of January 1,2019 and P9500 as of December
31,2019. During the year, the company purchased additional supplies worth P45,000
G. On December 31,2019 before adjustments, the accounts Receivable account has a balance of
P150,000 while allowance for Bad Debts has a balance of P15 000. Assume that allowance bad
debts expense for the period is 5% of the outstanding accounts receivable
H. The company received the utilities bill amounting to P65000. The company intends to pay it the
following year.
I. The company completed negotiations with another client and accepted an advance of P 500 000
for the services to be performed in the future. The contract is dated June 1, 2019 and will end on
June 30,2021
J. A machine was acquired last October 1, 2019 amounting to P270,000 after deducting its scrap
value for P30,000 it has an estimated economic life of five years.
K. Received a two-year note from a customer for the settlement of account receivable amounting to
P100,000 bearing a 12% interest rate per annum. The note is dated December 31, 2019
L. The company paid in advance its advertising expenditures for P24,000 last September 30,2019.
The advertisement will start on December 1,2019
Requirement: prepare the necessary adjusting entries for the year-ended December 31,2019 on a
two-column worksheet
 UNIVERSITY OF THE EAST
BASIC EDUCATION-SENIOR HIGH SCHOOL

FINAL PERIODICAL EXAMINATION

HBA111-FUNDAMENTAL OF ACCOUNTANCY BUSINESS AND MANAGEMENT 1
S.Y. 2018-2019
QUESTIONNAIRE: SET A

I. TRUE/FALSE. 20 POINTS. Determine if the statements are correct or incorrect.

Write the letter of your choice on the provided answer sheet
A. I and II is TRUE B. I is TRUE, II is FALSE C. I is FALSE, II is TRUE D I and II IS FALSE

1. I Adjusting entries is the fifth step in the accounting cycle.

II Adjusting entries always include a balance sheet account and an income statement account.
2. I an accrual entry is made when an expense has not been paid and ha not yet been recognized
II A negligence to make the required adjusting entry to accrue expenses for a period will result
to overstatement of liabilities
3. I accrued expenses usually appear in the income statement as an expense
II Accrued Revenue is debited in the adjusting entry when we are the asset method

Adjusting data

A) Unearned revenue still unearned at August 31 P16700

B) Prepaid rent still in force at august 31 P6200
C) Supplies used during the month P7000
D) Depreciation for the month P4000
E) Accrued advertising expense at august 31 P6100 (use Accounts Payable for your credit)
F) Accrued salaries expense at august 31 P5500

Requirements
1) Prepare the necessary adjusting and closing entries
2) Complete your 14-column worksheet
 Quiz 1: INTRODUCTION TO ACCOUNTING
HBA111-Fundamentals of accountancy business and management
Prof Cherry Ann C Mandaquit
S,Y, 2018-2019

IDENTIFICATION. Read and identify the following information for each item
1. It performs the function of identifying recording and communication economic events with
the goal of providing information to both internal and external users
2. They are the group of intended users of management accounting
3. Who is considered the father of modern accounting
4. It focuses on the preparation of financial reports report used by managers in their decision
making process is the process that includes numerous steps to determine weather or not a
company’s financial statement are presented fairly and correct
5. Accountants that perform the auditing procedure are specifically called
6. It is the subset of both management and financial accounting
7. It is the subset of both management and financial accounting
8. It is defined as language of business
9. Deals with the promulgation of accounting knowledge to various interested parties that will
aid them in achieving their goals
10. Deals mainly on analysis and interpretation of the financial statement
11. The lend their resources to the business in exchange for a fee or interest
12. uses accounting information primarily for academic purposes
13. It is an unbiased examination and evaluation of financial statement of an organization
14. The check if the business is profitable enough to provide compensation and other benefits
15. Defined as any bookkeeping system that has a debit and a credit for each transaction
16. A form of business organization with only one owner
17. Firms that convert raw materials into finished products
 18. An artificial being created by operation of law having the properties expressly authorized by
law or incident to its existence
19. Firms that generally engage in buying and selling of finished goods
20. Firms that generally use their employees to provide intangible product to customers

Modified TRUE or FALSE. Write TRUE if the statement is correct otherwise change the
underlined word to make the statement correct

1 reports made through management accounting are used by external and internal users
2. all types of business according to activity have inventories
3. A partnership has a distinct personality in the eyes of the law
4. the keeper of the book of accounts of the government agencies is the bureau of internal revenue
5.being prudent in accounting means overstating income and understating expense
6.Merchandising business involves the production of goods and selling them
7. in accounting substance must be over form
8. limited partnership are composed of only limited partners
9. employees use accounting information to assess remuneration
10. owners look at financial statements to improve their improve their operations or make important
decisions
11. corporations have unlimited liability
12. a sole proprietorship has no requirements to be formed assessing financial health and
performance
13. creditors assess the ability to pay of its debtor by assessing financial health and performance
14.unlimited liability protects partners from creditors who want to go after their personal assets in
the event of insolvency
15. Vendors are internal users

IDENTIFICATION
A. Identify the accounting concept and principle which is being defined or stated
1. accounting information must be presented on time
2. information must be accurate
3.same methods and techniques are applied in future situations
4. has no absolute value and is based on judgement
5. revenue and expenses are recorded in the period in which these are incurred
6. transaction and events should be measured in monetary terms
7. accounting information from period to period can be related
8. assumption that business will continue in the foreseeable future
9.transactions of owners are different from business transactions
10. information must be free from biases
B. identify the forms of business organization and also the type of business according to
activity
Example: UE
Answer: Corporation service
1. GMA network 6.SM department store
2.ilalipana and co 7. Law firms
3.sari sari stores 8.San miguel
4.Mcdonalds 9. Beauty salon
 5.ministop 10. BPI

QUIZ 2:BASIC ACCOUNTING

TEST I. MULTIPLE CHOICE

1. An expense has not been paid and has not yet been recognized in the accounts sby a
routine entry. To properly adhere to the matching principle, which of the following is
required:
a. Capital stock entry c. accrual entry
b. deferral entry d. inventory

2. warren, Inc has wages that have been incurred but not paid at the end of the accounting
period. The entry to properly at the end of the accounting period. The entry to properly accrue
wages expense
a. wages, payable, debit, wages income, credit
b. wages, income debit; wages payable, credit
c. wages, payable debit; wages expense, credit
d. wages, expense debit; wages payable, credit
3. warren, Inc neglects to make the required adjusting entry for wages at the end of the impact
of this oversight
a. salary expense for the year is overstated
b. liabilities at the end of the year are understated
c. assets at the end of the year are understated
d. owner’s equity at the end of the year is understated
4.accrued expenses usually appear on the balance sheet
a. cash c. assets
b. liabilities d. owner’s equity
5. accrued revenue is recorded when;
a. services have already been earned and recorded
b. services have been earned but have not yet been recorded
expected to be earned in the upcoming accounting period
c. services have already been paid for in cash
d. services have been earned but have not yet been recorded
6. accrued revenue usually appears on the balance sheet
As:
A. cash c. assets
b. liabilities d. owner’s equity
7. accrued expenses occur when:
A. ash is paid before an expense is recognized
b. cash is paid after an expense is recognized
c. an expense is recognized at the same time as the cash payment
d. a liability is decreased when the expense is recognized

8.at December 31, 2002 interest expense of $960 is owed on a two -year bank note that will not be
paid until July 2003, what is appropriate accrual at the end of 2002?

A interest expense………….960
 Cash…………………. 960
b. interest payable…………..960
intereset expense…………..960
c. cash…………... 960
interest expense…………. 960
d. interest payable…………960

9. sandra’s styling a sole proprietorship pays weekly salaries of $8000 each Friday for a five-day week
ending on that day, the accrual required for a fiscal period ending on a Tuesday includes a debit to
salaries expense and a credit to salaries payable for:
A. $ 16000
b. $20000
C. $ 3000
D.$ 3200

10.rental services Inc earned $2700 of rental revenue in December 2001. But does not expect payment
until January 2002 what is the appropriate accrual entry at December 31, 2017
A debit rent receivable; credit cash
B debit rent receivable: credit rent revenue.
C. Debi rent revenue: credit rent receivable
D. Debit cash: credit rent revenue

TEST II. ANALYSIS; ADJUSTING ENTRIES

Masukal company closes its book every December 31 and correspondingly prepares year- end
adjusting entries. Make the appropriate adjusting entry for each of the following items:

1.Last September 15, the company decided to sign an agreement with maria masikip or an eight-
month services contract. The company received P780,000 for the contract and he accountant
Credited the amount to service revenue
2.last August 30 the company paid P30 240 for a three-year insurance premium to start in September
30 this was recorded to prepaid insurance in full
3. supplies account at the beginning of the year showed balance of P10 800 no purchases were made
during the year. Supplies used during the year amounted to P7100
4. A machine costing P950000, with a value of P50000 at the end its 18 years of useful life. The
machine was purchased on august 40 of previous year
5.utilities bill amounting to P34860 was received on December 27. The company intends to pay it on
January 5 the following year
6. last may 1 the company decided to rent a garage as a parking space of its company vehicles. Nine
months rent was paid in advance in the amount of P81000
7.last June 30, the company lent mapusok co. P90000 at 10%annum
8. last November 1 the tihird floor of the company building was leased to mauti enterprises the
company received P184 000 representing an five month leave contract
9.as of December 31 (Wednesday) the company have unpaid salaries amounting to P15000 per day
currently, the company employs three workers and pays them on a weekly salary basis ending Friday
10.the company constructed its own building with a total cost amounting to P22 000 000 the building
has an estimated useful life of 25 years and a salvage value of P1 000 000 the building was completed
last April 30 and the depreciation started after its completion
TEST III, FILL THE MISSING AMOUNT. Assuming the cut off date is December 31,2016
Acquisition date Property Cost
October 31 2015 Building 20 000 000
June 15 2015 Furniture 51 000
September 1 2016 land 21 800 000

Property Scrap Useful Annual Accumulated

Value Life Depreciation Depreciation
Building 1 500 000 20 yrs (1)?? (2)??
Furniture 3000 (3)?? (4)?? 4000
Land 2 800 000 50 yrs (5)?? (6)??
TEST 1 TRUE/FALSE write true if the statement is correct otherwise write false
1. An increase in the price tends to make consumer buy less and sellers to sell more a price decrease
tend to cause the opposite reaction
2. the demand for a product is define as thee quantity that buyers are willing and able to buy the
demand schedule shows the quantity of the product demanded by a consumer at any given price
3. the increase or decrease in the entire demand is shown through a shift of the entire demand curve
this referred to as a chance in demand due to price
4. the supply curve is upward sloping from left to right the demand curve is download sloping form
left to right
5. an increase in income will shift the demand curve the left a decrease in income will shift the
demand curve to the right
6. an increase in population does not shift the demand curve as it has no bearing on the demand of
any product an increase in taste will shift demand curve to the right
7. an decrease in the cost of production will shift the supply curve to the left
8.one of the nonprice determinants of demand is taste. Taste or preference may vary from person to
person cause a shift to the demand curve
9.expectations as to future incomes and prices may cause a shift to the demand curve
10. equilibrium means a state of balance thus supply and demand is indifferent at a given price

TEST II. tell whether the demand or supply curve will shift to the left or right
A. DEMAND
1. Greater taste of preference
2. increase in the price of substitute goods
3.decrease in the price of complimentary goods
4. increase in population
5. decrease in income
B. SUPPLY
6. better technology
7.decrease in the tax rates
8.increase in the prices of inputs
9. greater speculation of prices
10. decrease in population

TEST III. Identify and illustrate the effect of the following situations in the equilibrium price & quantity
demand and supply write the following for

Price & quantity= increase. decrease or constant

demand &supply= upward movement. Downward
movement right shift, left shift or constant

1 MARKET FOR BOOKS. Nowadays more educational institutions see the advantage of technology in
providing quality education thus employing e books as learning materials
2 MARKET FOR KIDDIE MEAL. Nowadays more people prefer to buy kiddie meal for it is cheaper and
more convenient Unfortunately the government imposed a tax increase to the inputs used in the
production of kiddie meal
3.Market FOR SPOON. The price of fork is expected to decrease after a week but the price of raw
materials used to produce spoon increased
4.MARKET FOR BUTTER the raw material used to produce bread increased while the raw material
used to produced butter decreased
5.MARKET FOR CANDY. The price of candy is expected to increase after a day while the wages of
individuals dcreased due to tax reform program of the government.
QuIz 1. Application of demand and supply

Identification
1) The_________ is the price of foreign currency
2) this means that the government sets the price of a commodity and it cannot go lowe than the set
price
3) The major actors in the labor market are motivated by the changes in price of labor which is
indicated by
4) This means that the price cannot go higher that the mandated price
5)The ______ market is composed of those demand labor services
6) the price floor labor market is
7)the slope of demand curve_______ in market for services of ofw’s because the foreign wage rate is
8)______ related to labor service of OFW’S
9) the slope supply curve is _______ on market for services of OFW’S because the foreign wage rate is
10)_______related to labor service of OFW’S

TRUE OR FALSE

1) the government sets price ceiling so that the consumer will be able to buy commodity
2) the government se price floor to help the consumer afford commodity
3) price floor set by the government will help seller more income
4) both the demand and supply of crops will decrease after the damage of typhoon
5) the price ceiling will cause disequilibrium in which the supply is greater that the demand
6)the price floor will cause disequilibrium in which the supply is greater than the demand
7) the laborer are bought in the labor market
8) if the wage rate if low very few laborer are willing to work since they would rather have leisure
because the price of leisure is very low
9)the minimum wage caises excess supply of labor because the wage rate is hgi but the forms
requirement for employment is still high
10) in the market for services OFWS it is possible to shift the supply curve even though the foreign
wage rate is low
 UNIVERSITY OF THE EAST
BASIC EDUCATION-SENIOR HIGH SCHOOL
Name_______________________________________& section_____________ Date_________
Surname First name middle name
ADJUSTING ENTRIES
HBA111-Fundamentals of accountancy, business and Management 1
Prof. Allan Paul R. Mendoza
S.Y. 2018-2019

Problem 1. Prepaid Expenses

The following are some of the transactions made by timang ako cleaners during 2019

April 1 Acquired cleaning supplies in the amount of p 260,000. A count of supplies on December 31
2019 Amounted to P110,000
Aug 1 Paid P 360,000 for insurance premium for the company. The insurance is valid for 3 years
Nov 1 Paid P240,000 fir annual rent
Requirements 1. Record the transactions using assets method& prepare the adjusting entries at
year-ended December 31, 2019
2. Record the transaction using expense method & prepare the adjusting entries at
year ended December 31, 2019

Problem 2: Accrued Expenses

Timang sya Corgo Company provided the following transactions during the year 2019:
Oct 1 Borrowed P100,000 by issuing a 1-year note with 7% annual interest to Century Bank
Dec. 31 Three days office salaries are unpaid as at December 31. Salaries are P75,000 for a five-day
work week
Dec.31 Administrative employees earn a total of P10,000 per day for a five-day work week beginning
Monday ending Friday. They are paid for the work week ending Dec.26. They worked on Monday (Dec
29). Tuesday (Dec 30) and Wednesday (Dec 31)
Dec 31 The company accrued the interest expense for the bank loan amounted to P600,000
borrowed last Sept1, 2018. The loan carried am 8% annual rate of interest
Requirements: 1. Prepare the adjusting entries at year-ended December 31, 2019

Problem 2: Bad debts Expenses

The timang Karin Company provided the following information before adjustment during 2019
Accounts Receivable P1,000,000
Allowance for Bad Debts 100,000
Net Realizable Value 900,000
Service Revenue 3,000,000
Requirements; Prepare the adjusting entry for year-ended December 31, 2019 assuming:
Bad debts expense is 10% of service revenue
Allowance for bad debts is 15% of Accounts Receivable
 HBA 111- FUNDAMENTALS OF ACCOUNTING 1
Adjusting Entries
Prof. Cherry Ann C. Mandaquit

Problem 1
Nakakaba this company, owned by Ms. Showed their unadjusted trial balance for the year
ended December 2018:
Debit Credit
Cash P 600,000
Accounts Receivable 245,000
Notes Receivable 325,000
Allowance for Doubtful Accounts P 700
Prepaid Insurance 120,000
Office Supplies 20,000
Office Equipment 75,0000
Accumulated Depreciation- Office Equipment 26,000
Service Vehicle 420,000
Accumulated Depreciation-Service Vehicle 0
Accounts Payable 112 500
Notes Payable 375 000
Unearned Service Revenue 200 000
Student, Capital 850 750
Student, Drawing 45 000
Service Revenue 720 000
Salaries Expense 183 300
Rent Expense 180 000
Utilities Expense 35 200
Repairs and maintenance Expense 21 200
Representation Expense 17 500
Total P 2 292 000 P 2 292 000
The balance of prepaid insurance was purchased March 1, 2018 covering a 4-year period
Service vehicle was purchased last July 15, 2018 estimated useful life of 10 years with no salvage value
The value of unearned service revenue was an advance payment received last august 31 2018
covering 2 year-contract
Half the balance of the notes Receivable is an interest- bearing note received last September 1,2018.
The annual rate on the face pf the note is 8%
Payment for salaries is always made every Friday. December 31 falls on Wednesday, Ms. Student has
5 employees with a daily rate of P620 each
Estimated doubtful accounts are considered to be 8% of the unadjusted balance of Accounts
Receivable
Required: Prepare your adjusting entries and complete your 14: column worksheet
 UNIVERSITY OF THE EAST
BASIC EDUCATION-SENIOR HIGH SCHOOL

Name: & Section Date:

Surname First name Middle name

QUIZ1: ADJUSTING ENTRIES

HBA111-Fundamental of Accountancy Business and Management 1
Prof. Allan Paul R. Mendoza
S.Y. 2018-2019

Magdasal-dasal kana Company Provided the Following information for the year ended December
31,2019

M. Paid P240 000 for insurance premium for the company. He insurance is valid for 3 years. The
company debited insurance expense account last august 1, 2019
N. Received an P64,000 cash advance for a contract to provide services in the future. The contract
required a 1.5-year commitment. The contract is dated November 30,2018
O. Issued a note for the settlement of accounts for P340,000 dated May 31, 2019 the note bears a
10% interest rate with a maturity date of May 31,2021
P. Purchased an office equipment last January 1,2016 with a useful life of five years. The item is
worth P 250,000 after deducting salvage value for P10,000
Q. The salary rate of the company is P10 000 per employee for a five-day work week beginning
Monday. assume that December 31 is Friday. The five company employees are paid every
Tuesday
R. The supplies account has a balance of P15 000 as of January 1,2019 and P9500 as of December
31,2019. During the year, the company purchased additional supplies worth P45,000
S. On December 31,2019 before adjustments, the accounts Receivable account has a balance of
P150,000 while allowance for Bad Debts has a balance of P15 000. Assume that allowance bad
debts expense for the period is 5% of the outstanding accounts receivable
T. The company received the utilities bill amounting to P65000. The company intends to pay it the
following year.
U. The company completed negotiations with another client and accepted an advance of P 500 000
for the services to be performed in the future. The contract is dated June 1, 2019 and will end on
June 30,2021
V. A machine was acquired last October 1, 2019 amounting to P270,000 after deducting its scrap
value for P30,000 it has an estimated economic life of five years.
W. Received a two-year note from a customer for the settlement of account receivable amounting to
P100,000 bearing a 12% interest rate per annum. The note is dated December 31, 2019
X. The company paid in advance its advertising expenditures for P24,000 last September 30,2019.
The advertisement will start on December 1,2019
Requirement: prepare the necessary adjusting entries for the year-ended December 31,2019 on a two-
column worksheet

UNIVERSITY OF THE EAST

BASIC EDUCATION-SENIOR HIGH SCHOOL

FINAL PERIODICAL EXAMINATION

HBA111-FUNDAMENTAL OF ACCOUNTANCY BUSINESS AND MANAGEMENT 1
S.Y. 2018-2019
QUESTIONNAIRE: SET A

II. TRUE/FALSE. 20 POINTS. Determine if the statements are correct or incorrect.

Write the letter of your choice on the provided answer sheet
B. I and II is TRUE B. I is TRUE, II is FALSE C. I is FALSE, II is TRUE D I and II IS FALSE

4. I Adjusting entries is the fifth step in the accounting cycle.

II Adjusting entries always include a balance sheet account and an income statement account.
5. I an accrual entry is made when an expense has not been paid and ha not yet been recognized
II A negligence to make the required adjusting entry to accrue expenses for a period will result to
overstatement of liabilities
6. I accrued expenses usually appear in the income statement as an expense
II Accrued Revenue is debited in the adjusting entry when we are the asset method
7. I accrued revenue is recorded when services have been earned but have not yet been received
and recorded.
II accrued expenses occur when cash is paid after an expense is recognized.
8. I closing entries is an optional step in the accounting cycle and usually not done in practice
II a post- closing trial balance should always have the same debit and credit totals.
9. I post-closing trial balance will show zero balances for expense and liability accounts.
II if the debit totals is greater than the credit total in the income statement, we have a net loss
10. I If the debit total is greater that the credit total in the balance sheet, we have a net loss
II if the debit total is greater than the credit total in the income statement, we have a net loss
11. I scrap or salvage value is the amount realized for a depreciable asset at the end of its
economic life
II straight-line depreciation is the mandatory method for all long-term depreciable assets
12. I the asset method should be used for prepayments in case the problem is silent
II The income method should be used if the problem is silent for deferred revenues
13. I adjusting entries are done to properly adhere to the conservatism or prudence principle
II debit and credit totals under balance sheet an income statement may reflect equal amounts

II ADJUSTING ENTRIES. Make the necessary adjusting entries in the following independent
situations. Write your answer on your answer sheet.

1. Last September 15, the company decided to sign an agreement with amazing Corp. for an
eight -month services contract. The company received P780,000 and the accountant credited
the amount to services Revenue
2. A computer equipment with a depreciable of P950,000 with a value of P50 000 at the end of
its 18 years of useful life were purchased November 30 of last year
3. Last may 1, the company decided to rent a garage as a parking space for its company vehicles.
Nine months of rent was paid on the said date for P81,000
4. In the unadjusted trial balance of green company, accounts receivable has abalance