DIFFICULT

ABM Co. has current assets of P50,000 and the total assets of P150,000. ABM Co. Has current liabilities of P30,000 and total liabilities of P80,000. What is the amount of ABM‘s Owner‘s Equity

• P20,000

• P30,000

• P70,000

• P120,000

It shows the financial performance and the results of operation of the business for a period.

• Balance Sheet/ Statement of Financial Position

• Profit or Loss Statement/ Income Statement

• Statement of Changes in Owner‘s Equity

• Notes to Financial Statements

Last year, the owner‘s equity amount was P85,000 as of January 1. During the year, the owner has a total income of P240,000, total expenses of P265,000 and owner‘s withdrawal of P20,000. How much is the owner‘s equity/capital at the end of the year?

• P40,000

• P80,000

• P120,000

• P200,000

The following are the data from XYZ Company:

Cash P72,400

Furniture and Fix P84,700

Accounts Receivable P6,800

Accounts Payable P15,900

Supplies on Hand P16,200

Loans Payable P24,100

Building P800,000

Notes Payable – Short term P20,000

HOW MUCH IS THE TO TOTAL CURRENT ASSETS?

• P180,100

• P115,400

• P79,200

• P95,400

The following are the data from XYZ Company:

Cash P72,400

Furniture and Fix P84,700

Accounts Receivable P6,800

Accounts Payable P15,900

Supplies on Hand P16,200

Loans Payable P24,100

Building P800,000

Notes Payable – Short term P20,000

HOW MUCH IS THE TO TOTAL CURRENT LIABILITIES?

• P60,000

• P15,900

• P35,900

• P20,000

What is the effect of this transaction:

(Acquired Machineries and Equipment on account/credit)

• Increase in Assets, Increase in Capital

• Increase in Assets, Increase in Liability

• Increase in Assets,

  Decrease in Liabilities

• Decrease in Assets, Decrease in Capital

What is the effect of this transaction:

(Paid necessary business permit)

• Increase in Assets, Increase in Capital

• Increase in Assets, Increase in Liability

• Increase in Assets,

  Decrease in Liabilities

• Decrease in Assets, Decrease in Capital

What is the journal entry of this transaction:

(Performed Services to customers on account/credit for P42,000 and received a promissory notes from them.)

• Dr: Accounts Payable P42,000

  Cr: Service Revenue P42,000

• Dr: Account Rec. P42,000

  Cr: Service Revenue P42,000

• Dr: Notes Payable P42,000

  Cr: Service Revenue P42,000

• Dr: Notes Receivable P42,000

  Cr: Service Revenue P42,000

What is the journal entry when a company makes sales of $500, of which $300 is paid in cash and $200 is sold on credit?

• $300 debit in cash; $200 debit in accounts receivable; $500 credit in sales revenue

• $300 credit in cash; $200 credit in accounts receivable; $500 debit in sales revenue

• $300 debit in cash; $200 debit in accounts payable; $500 credit in sales revenue

• $300 credit in cash; $200 credit in accounts payable; $500 debit in sales revenue

Company A used $3,000 worth of office supplies this year but the costs were not paid for until next year. Which of the following would result of this transaction?

• An expense of $3,000 is recorded on next year's income statement

• There is a $3,000 credit in cash on the balance sheet

• An accrued expense of $3,000 is recorded as current liabilities on the balance sheet

• None of this