Adjusting Entries

Refer to the expenses that are already incurred, used, utilized or consumed but have not yeen been paid.

• Prepaid Expenses
• Unearned Expenses
• Accrued Expenses
• Accounts Expense

Refer to income or revenue already earned but has not yet been collected. 

• Unearned Revenue
• Accrued Income
• Prepaid Income
• Service Revenue

Represent advance payments made for expenses which have not yet been incurred, used, utilized or consumed.

• Accrued Expenses
• Unearned Expenses
• Prepaid Expenses
• Accounts Expense

The accounting concept which states that income is recognized when earned regardless of when collected and expense is recognized when incurred regardless of when paid. 

• Matching Principle
• Time Period
• Accrual
• Deferral

Adjusting entries are necessary to

• Update and correct the accounts at the end of the period
• balance the books at the end of the period
• record the sales of the period
• ensure the equality of the debits and credits

The adjusting entry to record an accrued revenue results in which of the following types of accounts being debited and credited?

• Asset/Revenue
• Asset/Liability
• Expense/Asset
• Expense/Liability

Office Equipment was purchased on May 1, 2017 at a cost of P 140,000 with a salvage value of P 20,000. The equipment’s useful life is five years. How much is the depreciation expense on December 31, 2017.

• Php 24,000
• Php 10,000
• Php 16,000
• Php 28,000

On September 1, 2017, the company collected  P72,000 rent in advance. A debit to Cash and a credit to Unearned Revenue was made. The tenant was paying for one year's rent. How much is the Rental Revenue to be recorded in the adjusting entry on Dec. 31, 2017?

• Php 6,000
• Php 24,000
• Php 30,000
• Php 36,000

CHS Hardware borrowed  P 120,000 at 12% interest on February 1, 2017. The amount will be paid after 1 year. No entry was entered in the journal to take up the interest. How much is the interest expense to be recorded on Dec. 31, 2017. 

• Php 14,400
• Php 10,800
• Php 12,000
• Php 13,200

Tags

CCSS.6.RP.A.3C

On October 1, 2017 the company paid P 18,000 for a one-year insurance policy. Insurance Expense was debited and Cash was credited. The account to be debited and its amount to be recorded on Dec. 31, 2017 is

• Insurance Expense/ Php 13,500
• Prepaid Insurance/ Php 13,500
• Insurance Expense/  Php 4,500
• Prepaid Insurance/  Php 4,500