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WorksheetsADJUSTING ENTRIES
Total questions: 15
Worksheet time: 10mins
Which of the following is NOT a type of adjusting entry?
Prepaid expenses
Accrued expenses
Unearned revenue
Unearned expenses
From which accounting document is the trial balance prepared?
Journals
Ledgers
Source documents
Vouchers
The following steps in the accounting process are theoretically done throughout the year, EXCEPT:
Preparation of closing entries
Preparation of financial statements
Preparation of journal entries
Preparation of adjusting entries
Which of the following is TRUE about the allowance for doubtful accounts?
It is always equal to bad debts expense
It is never equal to bad debts expense
It will always be less than accounts receivable
It will never be less than the accounts receivable
Which of the following do NOT have a negative effect on the owner's capital?
Depreciation expense
Adjusting entry for unearned revenue
Owner's drawings
Payment of liabilities
On December 1, 2018, Mr. Hindu paid Php18,000 to the cashier of Goma Company as a payment for rent during months of December 2018 and January 2019. How much is the rent expense of Mr. Hindu on December 31, 2018?
(a)
The advertising fee to be paid on May 31, 2020 is Php40,000, covering period from May 31, 2020 to March 30, 2021. How much is the prepaid advertising fee on December 31, 2020?
(a)
Which of the following is NOT a method of estimating doubtful accounts?
Double-declining method
Percentage of Accounts Receivable
Percentage of Sales
Aging of Accounts Receivable
California Skin Tone bought a salon equipment for Php75,000 on January 15, 2018. The estimated economic life of the equipment is 5 years. The scrap value is determined to be 10% of acquisition cost. How much is the accumulated depreciation on December 31, 2018?
(a)
On July 1, 2019, Mikki Tutorials received Php15,000 representing advance payment for services to be rendered in November 2019. Liability method was used. As of the year-end, only 70% of the expected service was rendered. How much is the service revenue to be recognized?
(a)
On May 1, 2020, Lappy Services received a Php450,000, 9% note for selling an equipment not being used by the business anymore. The note is payable in 2 years. How much is the accrued interest income?
Php2,700
Php27,000
Php40,500
None
These are revenues which are already incurred but not yet collected.
(a)
This is the process of transferring amounts from journals to ledgers.
Classifying
Posting
Summarizing
Recording
This refers to the process of entering information in the journals which occurs immediately after the analysis phase of the accounting cycle.
Adjusting
Closing
Journalizing
Classifying
Bad debts is always associated with receivables from sales or service revenue.
True
False
