BASIC ACCOUNTING PROBLEMS

The total assets of Abawag Enterprises are P700,000 and its owner’s equity is P420,000. What is the amount of its liabilities?

• P1,120,000

• P280,000

• P300,000

• P400,000

2.) The total owner’s equity of De leon Servicing amounts to P250,000 and the total liabilities are 150,000. How much is the total assets if P50,000 was withdrawn by the owner for his personal use?

• P350,000

• P400,000

• P200,000

• P100,000

3.) The total owner’s equity of Chrisjaika Enterprises are P900,000 representing 30% of the total assets. How much is the amount of its total liabilities?

• P3,000,000

• P900,000

• P2,100,000

• P270,000

4.) The Supplies asset account began the year with a balance of P1,900. During the year, supplies in the amount of P4,900 were purchased. At the end of the year the inventory of supplies on hand was P220. The supplies expense to be reported for the period is

• P6,800

• P4,700

• P7,000

• P6,580

5.) An equipment was acquired by La Fuerza Company on March 31,2020. The acquisition cost for the equipment is P150,000 with a scrap value of P30,000. The equipment is estimated to have a useful life of five years. The annual depreciation would be

• P18,000

• P24,000

• P120,000

• a. P180,000

6.) On October 1, 2020, Paracale Pension House received in advance a rent income of P60,000 covering a period of one year. On December 31, 2020, an adjusting entry is prepared. Using the liability method, the amount to be debited as Unearned rent will be

• P60,000

• P15,000

• P45,000

• None of the choices

7.) Langrio Company received P9,600 on April 1, 2018 for one year's rent in advance and recorded the transaction with a credit to a nominal account. The December 31, 2018 adjusting entry is

• debit Rent Income and credit Unearned Rent,

  P2,400

• debit Rent Income and credit Unearned Rent, P7,200

• debit Unearned Rent and credit Rent Income, P2,400

• debit Unearned Rent and credit Rent Income, P7,200

8.) If during the accounting period the assets increased by P 14,000 and equity increased by P 4,000, then how did liabilities change?

• Decreased by P18,000

• Decreased by P4,000

• Increased by P4,000

• Increased by P10,000

9.) University of Makati sold season tickets for the 2020 football season for P160,000. A total of 8 games will be played during September, October, and November. In September, three games were played. The adjusting journal entry at September 30 will debit

• Ticket Revenue for P40,000

• Ticket Revenue for P60,000

• Unearned Revenue for P60,000

• Unearned Revenue P40,000

10.) Mortel Inc. purchased 12-month insurance policy on March 1, 2020 for P9,000. At March 31, 2020, the adjusting entry to record expiration of this asset will include a credit

• To cash for P9,000

• To prepaid insurance for P750

• To insurance expense for P1,000

• To cash for P750