Accounting Final

Statement I – In general or single-step income statement, all expenses are deducted straight from income to ascertain net profit (loss). Here the expenses are not shown in the classified forum.

Statement II – The income statement is prepared with data of debit and credit columns from the balance sheet of the worksheet.

• Only Statement I is correct

• Only Statement II is correct

• Both Statements are correct

• Both Statements are incorrect

Statement I – Service companies have the most basic income statement of all the types of companies because they do not sell a product, thus their income statement will not contain cost of goods sold.

Statement II – In multiple-step income statement, the cost of goods sold is deducted from sales revenue to ascertain gross profit.

• Only Statement I is correct

• Only Statement II is correct

• Both Statements are correct

• Both Statements are incorrect

Statement I – Opening balance represents the balance of shareholders' equity reserves at the end of the reporting period as reflected in the statement of financial position.

Statement II – If the net capital of J. Dela Cruz is Php 90,000.00 and he made a withdrawal of Php 25,000 during the period, his ending capital then is Php 60,000.

• Only Statement I is correct

• Only Statement II is correct

• Both Statements are correct

• Both Statements are incorrect

Statement I – Statement of changes in equity helps users of financial statement to identify the factors that cause a change in the owners' equity over the accounting periods.

Statement II – Dividends represent the profit or loss attributable to shareholders during the period as reported in the income statement.

• Only Statement I is correct

• Only Statement II is correct

• Both Statements are correct

• Both Statements are incorrect

Statement I – Statement of financial position is also known as Income Statement

Statement II – Financial statements are incomplete information to assess the financial health of an entity.

• Only Statement I is correct

• Only Statement II is correct

• Both Statements are correct

• Both Statements are incorrect

Below are the transactions of Kristina Moran Trading for December 2020:

Dec 1 – K. Moran, owner of Kristina Moran Trading, invested Php 100,000 cash,      merchandise Php 200,000 and store equipment worth Php 86,000.

2 – Purchased merchandise on account from Pam Parampam Supply, Php 13,000. 

4 – Sold Php 12,000 goods to Maja Rocha Store on account.

9 – Sold merchandise for cash Php 25,000 goods.

11 – Purchased additional Php 18,000 merchandise.

15 – Purchased additional supplies Php 5,000. 

20 – Received money from Security Bank Php 10,000 for borrowed money with promissory notes.

23 – Paid the salary of the helper, Php 1,500.

27 – Paid the rent of the store for the month Php 6,000.

29 – Kristina Moran received cash from the business Php 2,000. 

30 – Paid the following expenses; Advertising Php 1,500, Php Utilities    2,500. 

What should be the TOTAL CASH amount in the Ledger?

• Dr: 98,500.00

• Dr: 108,500.00

• Cr: 98,500.00

• Cr: 108,500.00

Below are the transactions of Kristina Moran Trading for December 2020:

Dec 1 – K. Moran, owner of Kristina Moran Trading, invested Php 100,000 cash,      merchandise Php 200,000 and store equipment worth Php 86,000.

2 – Purchased merchandise on account from Pam Parampam Supply, Php 13,000. 

4 – Sold Php 12,000 goods to Maja Rocha Store on account.

9 – Sold merchandise for cash Php 25,000 goods.

11 – Purchased additional Php 18,000 merchandise.

15 – Purchased additional supplies Php 5,000. 

20 – Received money from Security Bank Php 10,000 for borrowed money with promissory notes.

23 – Paid the salary of the helper, Php 1,500.

27 – Paid the rent of the store for the month Php 6,000.

29 – Kristina Moran received cash from the business Php 2,000. 

30 – Paid the following expenses; Advertising Php 1,500, Php Utilities    2,500. 

. For the above transactions, the TOTAL merchandise inventory amount in the Ledger is:

• Dr: 200,000.00

• Dr: 231,000.00

• Cr: 200,000.00

• Cr: 231,000.00

Below are the transactions of Kristina Moran Trading for December 2020:

Dec 1 – K. Moran, owner of Kristina Moran Trading, invested Php 100,000 cash,      merchandise Php 200,000 and store equipment worth Php 86,000.

2 – Purchased merchandise on account from Pam Parampam Supply, Php 13,000. 

4 – Sold Php 12,000 goods to Maja Rocha Store on account.

9 – Sold merchandise for cash Php 25,000 goods.

11 – Purchased additional Php 18,000 merchandise.

15 – Purchased additional supplies Php 5,000. 

20 – Received money from Security Bank Php 10,000 for borrowed money with promissory notes.

23 – Paid the salary of the helper, Php 1,500.

27 – Paid the rent of the store for the month Php 6,000.

29 – Kristina Moran received cash from the business Php 2,000. 

30 – Paid the following expenses; Advertising Php 1,500, Php Utilities    2,500. 

. For the above transactions, the TOTAL SALES amount in the Ledger is:

• Dr: 25,000.00

• Dr: 37,000.00

• Cr: 25,000.00

• Cr: 37,000.00

Below are the transactions of Kristina Moran Trading for December 2020:

Dec 1 – K. Moran, owner of Kristina Moran Trading, invested Php 100,000 cash,      merchandise Php 200,000 and store equipment worth Php 86,000.

2 – Purchased merchandise on account from Pam Parampam Supply, Php 13,000. 

4 – Sold Php 12,000 goods to Maja Rocha Store on account.

9 – Sold merchandise for cash Php 25,000 goods.

11 – Purchased additional Php 18,000 merchandise.

15 – Purchased additional supplies Php 5,000. 

20 – Received money from Security Bank Php 10,000 for borrowed money with promissory notes.

23 – Paid the salary of the helper, Php 1,500.

27 – Paid the rent of the store for the month Php 6,000.

29 – Kristina Moran received cash from the business Php 2,000. 

30 – Paid the following expenses; Advertising Php 1,500, Php Utilities    2,500. 

. For the above transactions, the TOTAL Unadjusted Trial Balance is:

• 445,000.00

• 447,000.00

• 446,000.00

• 448,000.00

From the above transactions, adjustments were made on December 31, the end of the accounting period, wherein the following data were taken:

 

A.    An actual count of supplies showed a balance of P3,500.

B.    Equipment are depreciated at 10% per annum.

C.   10% interest has accrued on the note payable .

D.   Accrual of expenses: rent P1,000. 

Accrual of expenses: salaries and utilities P500 each.

For letter a, what are the accounts and corresponding amount to be adjusted?

• Debit Supplies P1,500; Credit Supplies Used P1,500

• Debit Supplies Used P1,500; Credit Supplies P1,500

• Debit Supplies P3,500; Credit Supplies Used P3,500

• Debit Supplies Used P3,500; Credit Supplies P3,500