Quiz 6. Service Business - Attempt Review

7/26/23, 5:19 PM Quiz 6.
Service Business: Attempt review
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Started on Wednesday, 26 July 2023, 4:55 PM

State Finished
Completed on Wednesday, 26 July 2023, 5:13 PM
Time taken 17 mins 55 secs
Grade 96.31 out of 100.00
Information
Based on the following transactions, prepare the journal entries, ledger, trial balances and financial statements:
Question 1
Correct
Mark 1.00 out of 1.00
Investment of P150,000 cash fund by Mr. Fabella into the business.
Select one:
a.
b.
c. 
d.
Your answer is correct.
The correct answer is:
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7/26/23, 5:19 PM Quiz 6. Service Business: Attempt review
Question 2
Correct
Received a Charge Invoice from a supplier for the purchase of a desktop computer amounting to P32,500. The computer is
estimated to be useful for five years and have a salvage value of 2,500 thereafter.
Select one:
a. 
b.
c.
d.
Question 3
Correct
Purchased supplies amounting to P18,000 in cash.
Select one:
a. 
b.
c.
d.
Question 4
Correct
Paid P6,000 insurance for six months. The company uses the asset method in recording insurance payments.
Select one:
a.
b.
c.
d. 
Question 5
Correct
Issued a Service Invoice for an amount of P50,000 to a customer for services rendered on account.
Select one:
a. 
b.
c.
d.
Question 6
Correct
Received P35,000 cash from customers in payment of their account.
Select one:
a.
b.
c. 
d.
Question 7
Correct
Paid in cash and received an official receipt from the supplier for payment of accounts, P20,000.
Select one:
a.
b. 
c.
d.
Question 8
Correct
Rendered services to customers billed for P30,000.
Select one:
a. 
b.
c.
d.
Question 9
Correct
Cash payment of P15,000 for the salary of an employee.
Select one:
a.
b.
c. 
d.
Question 10
Correct
Mr. Fabella withdrew P12,000 cash from the business.
Select one:
a. 
b.
c.
d.
Question 11
Correct
Paid the telephone bill for February amounting to P3,000.
Select one:
a.
b.
c. 
d. (No entry; telephone expenses will be recognized in the recording of adjusting journal entries later.)


Question 12
Correct
Mark 10.00 out of 10.00
Fabella Bookkeeping Services

Preliminary Trial Balance
As of February 29, 2020
(INPUT NUMBERS ONLY,
DO NOT INPUT ANY CURRENCY/PESO SIGN)
Code Account Title Debit Credit
111000
101 Cash

45000
111 Accounts Receivable

18000
121 Supplies

6000
131 Prepaid Insurance

32500
151 Equipment

12500
201 Accounts Payable

150000
301 Fabella, Capital

12000
311 Fabella, Drawing

80000
401 Service Revenue

15000
601 Salaries

3000
612 Utilities Expense

242500 242500
Total
 
Code Account Title Debit Credit 

101 Cash P 111,000
111 Accounts Receivable 45,000
121 Supplies 18,000

131 Prepaid Insurance 6,000
151 Equipment 32,500
201 Accounts Payable P 12,500
301 Fabella, Capital 150,000
311 Fabella, Drawing 12,000
401 Service Revenue 80,000
601 Salaries 15,000
612 Utilities Expense 3,000
Total 232,500 232,500
Question 13
Correct
Supplies remaining on hand worth P15,000.
Select one:
a.
b.
c. (No entry; supplies used shall be recognized in the recording of adjusting journal entries later.) 
d.

The correct answer is: (No entry; supplies used shall be recognized in the recording of adjusting journal entries later.)
Question 14
Correct
What is the adjusting entry for the used/unused supplies?
Select one:
a.
b.
c.
d. 
Supplies purchased P 18,000

On hand/unused at the end of the month 15,000
Used supplies P 3,000
Question 15
Correct
What is the adjusting entry to record the depreciation expense for the month of February?
Select one:
a. 
b.
c.
d.

Depreciation expense is computed as follows:
Acquisition Cost P 32,500

Less: Salvage value 2,500
Depreciable value P30,000
Divide by: Estimated Useful Life 5 years
Yearly Depreciation P6,000
Divide by: Months per year 12
Monthly Depreciation P 500
Question 16
Correct
What is the adjusting entry for the prepaid insurance?
Select one:
a. 
b.
c.
d.
Prepaid insurance P 6,000

No. of months 6
Monthly insurance expense P 1,000
From February 15 to Feb 29 is half a month, therefore, the expense is only P500.00
Question 17
Correct
Mark 15.00 out of 15.00

Adjusted Trial Balance

111000
101 Cash

45000

15000
121 Supplies

5500

32500
151 Equipment

500
152 Accumulated Depreciation - Equipment

12500

150000

12000
311 Fabella, Drawing

80000
401 Service Revenue

15000
601 Salaries

3000
611 Supplies Expense

3000
612 Utilities Expense

500
631 Insurance Expense
 
500
641 Depreciation Expense

243000 243000
Total
 

Adjusted Trial Balance

101 Cash 111,000
111 Accounts Receivable 45,000
121 Supplies 15,000
131 Prepaid Insurance 5,500
151 Equipment 32,500
152 Accumulated Depreciation - Equipment 500
201 Accounts Payable 12,500
301 Fabella, Capital 150,000
311 Fabella, Drawing 12,000
401 Service Revenue 80,000
601 Salaries 15,000
611 Supplies Expense 3,000
612 Utilities Expense 3,000
631 Insurance Expense 500
641 Depreciation Expense 500
Total 243,000 243,000
Question 18
Correct
Mark 10.00 out of 10.00

Income Statement
For the month ended February 29, 2020
Revenues:
80000
Service Revenue

Operating Expenses:
15000
Salaries

3000
Supplies Expense

3000
Utilities Expense

500
Insurance Expense

500
Depreciation Expense

22000
Total Operating Expenses

58000
Total

Question 19
Correct
Mark 10.00 out of 10.00

Statement of Changes in Equity
0
Fabella, Capital, Feb 1, 2020

150000
Add: Initial Investment

58000
Net Income

Total 208000
Less: Fabella, Drawings 12000
196000
Fabella, Capital, Feb 29, 2020

Question 20
Correct
Mark 15.00 out of 15.00

Statement of Financial Position
ASSETS
Current Assets:
111000
Cash

Accounts Receivable 45000
15000
Supplies

5500
Prepaid Insurance

Total Current Assets 176500
Non-Current Assets:
Equipment 32500
500
Less: Accumulated Depreciation - Equipment

32000
Total Non-Current Assets

208500
TOTAL ASSETS

LIABILITIES AND EQUITY

Current Liabilities:
12500
Accounts Payable


Owner's Equity:
196000
Fabella, Capital

208500
TOTAL LIABILITIES AND EQUITY

Question 21
Partially correct
Mark 11.31 out of 15.00

Statement of Cash Flows
For the month ended February 29, 2020
INPUT NUMBERS ONLY, DO NOT INPUT ANY CURRENCY/PESO SIGN.

FOR OUTFLOWS, USE THE NEGATIVE SIGN "-"
CASH FLOW FROM OPERATING

ACTIVITIES:
Cash received from:
Receivables collection
35000
Cash payment for:
Office supplies
15000
Operating expenses
27000
Net Cash Flow from Operating Activities
-7000
CASH FLOW FROM INVESTING

ACTIVITIES:
Cash payment for:
Purchase of Equipment
20000
CASH FLOW FROM FINANCING

ACTIVITIES:
Cash received from:
Capital investment
150000
 
Cash payment for:
Capital withdrawal
12000
Net Cash from Financing Activities

138000
Increase (Decrease) in Cash

111000
Cash, February 1
0
Cash, February 29
111000
Question 22
Correct
Mark 10.00 out of 10.00

Post-Closing Trial Balance

111000
101 Cash

45000

15000
121 Supplies

5500

32500
151 Equipment

500
152 Accumulated Depreciation - Equipment

12500

196000

209000 209000
Total
 
◄ Solution to Exercise
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Quiz 6. Service Business - Attempt Review

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7/26/23, 5:19 PM Quiz 6.

Service Business: Attempt review

Dashboard / My courses / CB 65 / 6. Service Business / Quiz 6. Service Business

 Back to '6. Service Business'

Started on Wednesday, 26 July 2023, 4:55 PM

Mark 1.00 out of 1.00

Investment of P150,000 cash fund by Mr. Fabella into the business.

Your answer is correct.

The correct answer is:

Mark 1.00 out of 1.00

Your answer is correct.

The correct answer is:

Mark 1.00 out of 1.00

Purchased supplies amounting to P18,000 in cash.

Your answer is correct.

The correct answer is:

Mark 1.00 out of 1.00

Your answer is correct.

The correct answer is:

Mark 1.00 out of 1.00

Your answer is correct.

The correct answer is:

Mark 1.00 out of 1.00

Received P35,000 cash from customers in payment of their account.

Your answer is correct.

The correct answer is:

Mark 1.00 out of 1.00

Your answer is correct.

The correct answer is:

Mark 1.00 out of 1.00

Rendered services to customers billed for P30,000.

Your answer is correct.

The correct answer is:

Mark 1.00 out of 1.00

Cash payment of P15,000 for the salary of an employee.

Your answer is correct.

The correct answer is:

Mark 1.00 out of 1.00

Mr. Fabella withdrew P12,000 cash from the business.

Your answer is correct.

The correct answer is:

Mark 1.00 out of 1.00

Paid the telephone bill for February amounting to P3,000.

Your answer is correct.

Mark 10.00 out of 10.00

Fabella Bookkeeping Services

Code Account Title Debit Credit

Code Account Title Debit Credit 

121 Supplies 18,000

Mark 1.00 out of 1.00

Supplies remaining on hand worth P15,000.

Your answer is correct.

Mark 1.00 out of 1.00

What is the adjusting entry for the used/unused supplies?

Your answer is correct.

Supplies purchased P 18,000

The correct answer is:

Mark 1.00 out of 1.00

Your answer is correct.

Acquisition Cost P 32,500

The correct answer is:

Mark 1.00 out of 1.00

What is the adjusting entry for the prepaid insurance?