UIC-SHS DEPARTMENT a.

Equality of debit and credit entries in the

4th PERIODICAL EXAM (February 11-12, 2019) journal.
FABM1
MS. JONAVI LUYONG b. Recording of transactions.
c. Equality of debit and credit entries in the
NAME: _____________________________
ledger.
SECTION: __________________________
d. Analysis of transactions.
GENERAL INSTRUCTIONS 6. To find an explanation for a transaction, one
1. Read all items carefully.
should look at the
2. Do not leave any item UNANSWERED.
3. Cheating will merit failure in this a. Chart of accounts
examination besides other disciplinary
actions. b. Ledger
4. If you have questions, ask only your c. Journal
adviser.
Be honest, God is watching us. d. Trial Balance
7. The income statement reports _______.
TEST I.Multiple Choice. Encircle the letter of the
correct answer. a. Financial position on a specific date.

1. An example of an asset is: b. Results of operations for specific period.

a. machinery owned by the firm. c. Results of operations on a specific date.

b. money owed by the firm to one of its d. Financial position for a specific period.
suppliers for goods purchased.
8. When the entity receives cash for services
c. an overdrwan bank balance.
performed,
d. the capital of the firm.
a. an asset is decreased.
2. Which of the following is true about the double-
b. the owner’s equity is increased.
entry system?
c. the owner’s equity is decreased.
a. The total debits should be equal to the total
d. total assets remain unchanged.
credits.
9. The purchase of an asset on account will
b. Each transaction involves two parties.
a. have no effect on total assets or total
c. Each transaction onvolves a debit entry and
liabilities.
a corresponding credit entry in the ledger.
b. increase total assets and decrease owner’s
d. Each transaction should be entered into two
equity.
accounts in the ledger.
c. Increase total assets and increase owner’s
3. The left side of an account is used to record:
equity.
a. Debit or credit, depending on the type of
d. Increase total assets and increase total
account.
liabilities.
b. Credit
10. The purchase of a service vehicle on account
c. Debit
a. Will decrease asset and decrease liability.
d. Increase
b. Will increase asset and decrease a liability.
4. Which of the following classifications of
c. Will decrease equity.
accounts has/have a normal credit balance?
d. Will increase asset and increase a liability.
a. Withdrawals
11. The owner’s withdrawals account appears in
b. Expenses
a. the income statement only.
c. Revenues and liabilities
b. the statement of changes in equity only.
d. All of these
c. the balance sheet only.
5. The primary purpose of the trial balance is to d. All of these.
test the
12. A purchase of supplies on account should be b. P300,000 d. P350,000
recorded as 23-24. Jimmy Pest Control has assets of P600,000
a. A debit to Supplies expense and a credit to and equity of P450,000. How much was the
Cash. liabilities?
b. A debit to Accounts payable and a credit to a. P100,000 c. P150,000
supplies. b. P200,000 d. P250,000
c. A debit to Supplies expense and a credit to 25-26. Your business purchased supplies of
Accounts payable. P1,000 on account. The journal entry to
d. A debit to Supplies expense and a credit to record this transaction is:
Accounts receivable. a. Inventory 1,000
13-14. Over a period of time, if total assets Accounts Payable 1,000
increase by P270,000 and total liabilities b. Inventory 1,000
increase by P70,000, then owner’s equity Accounts receivable 1,000
will be increased by c. Supplies 1,000
a. P70,000 c. P340,000 Accounts receivable 1,000
b. P270,000 d. P200,000
d. Supplies 1,000
15-16. Swatch is famous for fashion wristwatches.
Accounts Payable 1,000
At the end of a recent year, Swatch’s total
27-28. Which journal entry records your payment
assets added up to P381 million, and for the supplies purchased in transaction 19?
owner’s equity was P264 million. How much
a. Inventory 1,000
were Swatch’s liabilities?
Cash 1,000
a. P381 million c. P117 million
b. Cash 1,000
b. P264 million d. P645 million
Accounts payable 1,000
17-18. Assume that Swatch paid expenses totaling c. Accounts Payable 1,000
P35,000. How does this transaction affect
Cash 1,000
Swatch’s accounting equation?
d. Supplies 1,000
a. Increase assets and decreases liabilities.
Cash 1,000
b. Decreases assets and increases liabilities.
29-30. The collection of a P4,000 account within
c. Increases both assets and liabilities.
the 2% discount period would result in a
d. Decreases both assets and owner’s equity.
_______.
19-20. Suppose your business has cash of
a. credit to Accounts receivable for P3,920
P50,000, receivables of P60,000, and
b. debit to Accounts receivable for P3,920
furniture totaling P200,000. The store owes c. credit to Cash for P3,920
P80,000 on account and has a P100,000
d. debit to Sales discounts for P80.
note payable. How much is your equity?
31-32. The collection of a P5,000 account beyond
a. P20,000 c. P130,000
the 2% discount period would result in a
b. P180,000 d. P310,000
_______.
21-22. At the beginning of the year, the assets of
a. credit to Accounts receivable for P5,000
Arib Services were P360,000 and its
b. debit to Cash for P4,900
owner’s equity was P200,000. During the
c. credit to Cash for P5,000
year, assets increased by P120,000 and
d. debit to Sales discounts for P100
liabilities increased by P20,000. What was 33-34. The entry to record a sale of P7,500 with
the owner’s equity at the end of the year?
terms of 2/10, n/30 would include a
a. P220,000 c. P 250,000
a. credit to Accounts receivable for P7,500.
 b. debit to Sales discounts for P150. For items 43-50. (2 POINTS EACH) Use the
c. credit to Sales for P7,500. following information to answer the questions
d. debit to Sales for P7,350 below. The following is the trial balance for Nora
35-36. Goods totaling P50,000 were purchased Bisana Ads:
February 2 with terms of 2/10, n/30. Returns
of P10,000 were made on February 10.
What discounts, if any, can be availed of if Nora Bisana Ads
Trial Balance
the invoice was paid on February 12? January 31, 2015
a. None b. P1,000
Cash P30,000
c. P800 d. P200
Accounts Receivable 20,000
37-38. The entry to record a payment on a P15,000 Art Supplies 30,000
account within the 2% discount period Office supplies 50,000
would include a __________________. Prepaid rent 70,000
a. credit to Accounts payable for P15,000. Prepaid Insurance 50,000
b. credit to Purchase Discounts for P300. Art Equipment 50,000
c. debit to Accounts payable for P14,700. Office Equipment 30,000
d. debit to Cash for P15,000. Accounts Payable P50,000
39-40. Under a periodic inventory system, the entry Bisana, Capital 150,000
to record a purchase of P60,000, with terms Bisana, Withdrawals ?___
of 2/10, n/30 would include a Advertising Revenues ?___
____________. Salaries Expense ?___
a. debit to Accounts payable for P58,800. Utilities Expense 50,000
b. debit to Purchase discounts for P1,200. Telephone Expense 30,000 _________
c. credit to Accounts Payable for P60,000. TOTAL _₱___A_ ₱___B_
d. credit to Purchases for P60,000.
41-42. The Dec.31, 2015 trial balance for Maglana
43-44. If the balance of the Bisana, Withdrawals
Company included the following: purchases,
account were P120,000 and the balance of
P40,000; purchase returns and allowances,
the Salaries Expense account were
P2,000; transportation in, P3,000; ending
P50,000, what would be the amount of B?
inventory was P8,000. What was the cost of
a. P180,000 c. P370,000
goods sold for 2015?
b. P580,000 d. P380,000
a. P39,000 c. P38,000
45-46. If the trial balance showed a balance of
b. P33,000 d. None of the above
P80,000 in the Salaries Expense account
and a balance of P350,000 in the
Advertising Revenues account, what would
be the amount in A?
a. P500,000 c. P450,000
b. P550,000 d. P600,000
47-48. If the trial balance showed a balance of
P40,000 in the Salaries Expense account
and a balance of P300,000 in the
Advertising Revenues account, what would
 be the amount of the Bisana, Withdrawals
account?
a. P250,000 c. P140,000
b. P190,000 d. P50,000
49-50. If the trial balance showed a balance of
P70,000 in the Bisana, Withdrawals account
and a balance of P50,000 in the Salaries
Expense account, what would be the
amount of Advertising Revenues for the
period?
a. P330,000 c. P180,000
b. P480,000 d. P430,000