WorksheetsFUNDA-difficult
Total questions: 10
Worksheet time: 13mins
A company’s trial balance totals were:
Debit …………………….₱387,642
Credit ……………………₱379,511
A suspense account was opened for the difference. Which of the following errors would have the effect of reducing the difference when corrected?
The petty cash balance of ₱500 has been omitted from the trial balance
₱4,000 received for rent of part of the office has been correctly recorded in the cash book and debited to Rent expense account
No entry has been made in the records for a cash sale of ₱2,500
₱3,000 paid for repairs to plant has been debited to the plant asset account.
A company paid its property taxes on October 1 for the period October 1, year 1 to September 30, year 2. When the payment was made the company debited property taxes expense and credited cash for ₱8,000. The adjusting entry at December 31, year 1 would include which of the following:
debit prepaid property taxes, ₱6,000.
credit prepaid property taxes, ₱6,000.
credit property tax expense, ₱2,000.
debit property tax expense, ₱6,000.
If during an accounting period an expense item has been incurred and consumed but not yet paid for or recorded, the end-of-period adjusting entry would involve
a liability account and an asset account.
an asset or contra asset account and an expense account.
a liability account and an expense account.
a receivable account and a revenue account.
At the end of the current year, the prepaid insurance account showed a debit the balance of ₱5,000; the balance at the beginning of the year was ₱6,000, and during the year the insurance premiums paid amounted to ₱8,000. Assuming insurance premium payments are initially entered in the prepaid insurance account, the adjusting entry at the end of the year would include:
debit prepaid insurance ₱9,000
credit prepaid insurance ₱1,000
debit insurance expense ₱7,000
debit insurance expense ₱9,000
On March 1, a company received ₱3,000 cash from a client as an advance for 12 months’ worth of delivery services. The company initially recorded this receipt as a debit to cash and a credit to delivery service revenue. The adjusting entry on December 31 would include a
debit to delivery service revenue, ₱2,500.
credit to unearned delivery service revenue, ₱500.
credit to delivery service revenue, ₱500.
No adjusting entry was required because the delivery service was for a one-year period exactly.
A corporation received cash of ₱24,000 on August 1 for one-year's rent in advance and recorded the transaction on that day as a credit to unearned rent revenue for the full amount. The December 31 adjusting entry is:
Rent revenue ₱10,000
Unearned rent revenue ₱10,000
b. Unearned rent revenue ₱24,000
Rent revenue ₱24,000
c. Rent revenue ₱14,000
Unearned rent revenue ₱14,000
d. Unearned rent revenue ₱10,000
Rent revenue ₱10,000
A sole proprietor took some goods costing ₱800 from inventory for his own use. The normal selling price of the goods is ₱1,600. Which of the following journal entries would correctly record this?
Drawings account 800
Inventory account 800
Drawings account 800
Purchases returns account 800
Sales account 1,600
Drawings account 1,600
None of these
In which of the following may an entity not incur any obligation?
Using a credit card to purchase merchandise
Using a debit card to purchase merchandise
Replacing an account payable with note payable
Breaching a loan agreement
Which of the following is an accrued liability?
Cash dividend payable
Wages payable
Rent revenue collected one-month advance
Portion of long-term debt payable in current year
Which of the following items should be included in a company’s inventory at the balance sheet date?
Goods in transit which were purchased FOB destination.
Goods received from another company for sale on consignment.
Goods sold to a customer which are being held for the customer to call for at the customer’s convenience.
Goods in transit which were purchased FOB shipping point.
