UNIVERSITY OF PANGASINAN – PEN

Accounting for Non – Accountants

Final Examination

I. On each of the following transaction, provide the necessary journal entry.

a. Ramon contributed P30,000 cash to the business

b. The company purchased office supplies on account, P100,000

c. The company rendered service on cash basis, P50,000

d. The company borrowed P1,000,000 from a bank, evidenced by a promissory note

e. Conchito contributed an equipment costing P60,000 to the business

f. The company incurred salaries expense, P15,000

g. The company paid the incurred salaries from the above transaction

h. The company purchased inventory for P25,000, on account

i. The company paid the inventory purchased

j. Monthly rent of P5,000 was paid in cash

k. The company incurred utilities expense of P35,000

l. Incurred utilities expense from the above transaction was paid

m. The company rendered service on credit basis, P50,000

n. Collection of the receivable from the above transaction

o. Purchase of inventory costing P30,000, credit basis

p. Paid in cash the purchased inventory from transaction above

q. Sold goods costing P30,000 for P50,000 cash

ADJUSTING ENTRIES
Write the adjusting entries on the ff. information:

1. Expiration of Prepaid insurance under asset method

2. Office supplies consumption

4. Depreciation

5. Accrued interest income

6. Estimation of uncollectible accounts

7. Accrued rent income

8. Accrued salaries expense

Given the following journal entries and adjusting entries, prepare a worksheet.

JOURNAL ENTRIES

a. Cash 100,000
Brownman Capital 100,000

b. Equipment 150,000
Corola Capital 150,000

c. Salaries expense 20,000

Cash 20,000

d. Prepaid insurance 10,000

Cash 10,000

e. Cash 100,500
Service revenue 100,500

f. Cash 50,000
Notes payable 50,000

ADJUSTING ENTRIES

a. Interest receivable 8,000

Interest income 8,000

b. Insurance expense 1,000

Prepaid insurance 1,000

c. Depreciation expense 5,000

Accumulated depreciation 5,000