ACCOUNTING QUIZ

EASY ROUND
3points
QUESTION 1

ABM Company
purchased
inventory on credit
P20,000.
ANSWER 1

INVENTORY 20,000
ACCOUNTS PAYABLE 20,000
QUESTION 2

ABM Company
deposited cash
worth P50,000 to
start the business.
ANSWER 2

CASH 50,000
OWNER'S EQUITY 50,000
QUESTION 3

Bought equipment for

cash worth P35,000.
ANSWER 3

EQUIPMENT 35,000
CASH 35,000
QUESTION 4

ABM Company paid

P5,000 to advertise
its merchandise to
the public.
ANSWER 4

ADVERTISING EXPENSE 5,000

CASH 5,000
QUESTION 5

ABM Company billed

customers for the
services they
rendered amounting to
P30,000.
ANSWER 5

ACCTS RECEIVABLE 30,000

SALES 30,000
QUESTION 6

ABM Company paid the

inventory purchased in
the first transaction
worth P20,000
ANSWER 6

ACCTS PAYABLE 20,000

CASH 30,000
ACCOUNTING QUIZ

AVERAGE ROUND
5points
QUESTION 1

ABM Company opened a souvenir shop.

During the day, Mr. Francis, a school
principal ordered 500 t-shirts to ABM
Company for their school foundation
day. The t-shirt costs 100.00 each.
Selling price was P 150.00. Mr. Francis
gave a downpayment of P20,000 and
the balance is to be paid at the end of
the month.
ANSWER 1

CASH 20,000
A/R 55,000
SALES 75,000

COST OF GOODS SOLD 50,000

INVENTORY 50,000
QUESTION 2

ABM Company
purchased equipment
worth 50,000 half of
which is paid in cash
and the other half is
on credit.
ANSWER 2

EQUIPMENT 50,000
CASH 25,000
A/P 25,000
QUESTION 3

ABM Company sold goods to a

major customer. A quarter of
the goods were paid in cash
while the rest was to be paid in
a month. The goods are sold
for P 10,000 although it only
cost ABM Company P4,000.
ANSWER 3

CASH 2,500
A/R 7,500
SALES 10,000

COST OF GOODS SOLD 4,000

INVENTORY 4,000
QUESTION 4

ABM Company
received the balance
payment worth
P55,000 from the
school.
ANSWER 4

CASH 55,000
A/R 55,000
ACCOUNTING QUIZ

DIFFICULT
8points
QUESTION 1

ABM COMPANY purchased equipment

worth 100,000 on June 1, 2016 with a
salvage value of P20,000 and a useful life
of 5 years.

WHAT is the adjusting entry at the end of

the year?
ANSWER 1

100,000-20,000
5 years
= 16,000 x 7/12
= P 9,333.33

Depreciation expense 9,333.33

Accumulated Depreciation 9,333.33
QUESTION 2

The loans payable worth

P500,000 was incurred on
July 1, 2016. Interest charge
is 8% per annum.

Record the interest expense

at the end of the year 2016.
ANSWER 2

P500,000 X .08
= P 40,000 annually
=40,000 x 6/12
=20,000

Interest expense 20,000

Interest payable 20,000
QUESTION 3

ABM Company paid rent in advance on

October 1, 2016 good for 3 months in the
amount of P30,000. The entry was
recorded as:
Prepaid Rent 30,000
Cash 30,000

What is the adjusting entry on Dec 31,

2016?
ANSWER 3

Rent Expense 30,000

Prepaid Rent 30,000
QUESTION 4

On January 1, 2016 ABM Company

purchased supplies worth P20,000 and
recorded in their books.
Supplies 20,000
Cash 20,000
On December 31, 2016 inventory count at
year end on supplies totaled 3,000.
What is the adjusting entry?
ANSWER 4

20,000-3,000
=17,000 used up supplies

Supplies Expense 17,000

Supplies 17,000
QUESTION 5

ABM Company has a policy to pay salaries

to employees every 5th of the following
month. During December ABM Company
has 3 employees to be paid on January 5,
15,000 each.

Record the adjusting entry on December

2016.
ANSWER 5

15,000 x3
=45,000

Salaries Expense 45,000

Salaries Payable 45,000
78 ITEMS
PASSING= 40
BONUS QUESTION
TO ADD YOUR
SCORE
10POINTS
On September 30, the company completed
negotiations with a client and accepted an
advance of P58,000 for the services to be
performed for 4 months (October,
November, December). The amount was
credited to Unearned Revenues.

Cash 58,000
Unearned Revenue 58,000
58,000/4
=14,500 monthly x 3 (October-December)
=43,500 earned services

Unearned Revenue 43,500

Revenue/Sales 43,500