Accruals Assessment

"Wayne Enterprises Logistics purchased a delivery truck on January 1, 2025, for ₱1,200,000. The truck has an estimated useful life of 5 years with no salvage value."

At the end of an accounting period, what type of adjusting entry is needed for this transaction?

• Deferrals

• Accruals

• Estimates

• none

"The Upside Down Café paid ₱180,000 in advance for a one-year lease on their coffee shop space starting July 1, 2025."

At the end of an accounting period, what type of adjusting entry is needed for this transaction?

• Deferrals

• Accruals

• Estimates

• none

"On November 25, 2025, Bikini Bottom Burgers provided catering services to a customer for ₱50,000"

At the end of an accounting period, what type of adjusting entry is needed for this transaction?

• Deferrals

• Accruals

• Estimates

• none

On October 1, 2024, San Manuel Store issues a P50,000 note payable with an 8% annual interest rate for 90 days. How much accrued interest should be recorded by December 31, 2024?

• P333.33

• P600.66

• P1,000.00

• P2,056.00

Nine's Pizza lends P80,000 to a supplier on November 1, 2024, at a 6% interest rate for 120 days. What is the accrued interest as of December 31, 2024?

• P800.00

• P1,600.00

• P2,400.00

• P3,200.00

Joseph's House of Ice Cream issued a 2-year note payable of P150,000 at 7% interest on April 1, 2024. How much accrued interest should be recorded by December 31, 2024?

• P7,875.00

• P8,750.00

• P10,500.00

• P11,250.00

A business pays P4,500 in rent on the 12th of each month. If the company follows accrual accounting, how much rent expense should be recorded on at the end of the month?

• P0.00

• P1,500.00

• P2,850.00

• P4,550.00

Trailbakers issues a 90-day, P120,000 note payable on July 10, 2024, with an 8% interest rate. How much interest should be accrued by December 31, 2024?

• P2,400.00

• P4,800.00

• P6,000.00

• none

Shrek’s Swamp Smoothies lends P75,000 to a supplier on December 1, 2024, with a 5% interest rate for 60 days. How much interest should be accrued by December 31, 2024?

• P125.00

• P187.50

• P312.50

• P625.00

A company pays a subscription for a super specialized program for P5,000 every 9th of the month. What is the value of the adjusted entry at the end of the month?

• P1,500.89

• P3,666.67

• P5,000.00

• none