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WorksheetsAdjusting Entries
Total questions: 35
Worksheet time: 25mins
What type of accounts are Prepaid Insurance, Prepaid Advertising, and Prepaid Expenses?
Asset
Liability
Owner's Equity
Expense
What type of accounts are Accumulated Depreciation and Allowance for Doubtful Accounts?
Liability
Owner's Equity
Contra Asset
Asset
Depreciation on equipment is classified as
Expense
Prepaid Expense
Accrued Revenue
Current Liability
Expense Payable
Expenses paid in advance is classified under ______________________________.
Expense
Prepaid Expense
Accrued Revenue
Current Liability
Expense Payable
Unearned revenue is classified as _________________________ for the business.
Expense
Prepaid Expense
Accrued Revenue
Current Liability
Expense Payable
Revenue was already performed but not yet received any cash is classified under ____________________________________.
Expense
Prepaid Expense
Accrued Revenue
Current Liability
Expense Payable
Accrued expense is also known as ____________________________.
Expense
Prepaid Expense
Accrued Revenue
Current Liability
Expense Payable
Prepaid advertising has been used for the month.
What is the account to be credit?
Cash
Prepaid Advertising
Advertising Expense
Prepaid Expense
Bad debt expense was P50,000.
Which journal is correct?
Dr Bad debt expense P50,000.
Dr Account Receivable P50,000.
Cr Bad debt expense P50,000.
Cr Account Receivable P50,000.
Unearned barber service P1,700 was already earned.
What is account to be debit?
Accrued Barber Service Revenue
Barber Service
Bank
Unearned Revenue
Accrued wages was P2,500.
Which journal is correct?
Dr Wages expense P2,500
Dr Accrued wagesP2,500
Cr Accrued wages P2,500
Cr Wages expense P2,500
Refer to the expenses that are already incurred, used, utilized or consumed but have not been paid.
Prepaid Expense
Accrued Expense
Unearned Expense
Accounts Expense
Refer to income or revenue already earned but has not yet been collected.
Unearned Revenue
Service Income
Accrued Income
Prepaid Income
The accounting concept which states that income is recognized when earned regardless of when collected and expense is recognized when incurred regardless of when paid.
Matching Principle
Periodicity
Deferral
Accrual
Refers to the allocation of the cost of the asset over its estimated useful life.
Consumption
Contra Asset
Deterioration
Depreciation
Adjusting entries are necessary to
Update and correct the accounts at the end of the period
record the sales of the period
balance the books at the end of the period
ensure the equality of the debits and credits
Office Equipment was purchased on May 1, 2017 at a cost of P 140,000 with a salvage value of P 20,000. The equipment’s useful life is five years. How much is the depreciation expense on December 31, 2017.
Php 24,000
Php 10,000
Php 28,000
Php 16,000
On September 1, 2017, the company collected P72,000 rent in advance. A debit to Cash and a credit to Unearned Revenue was made. The tenant was paying for one year's rent. How much is the Rental Revenue to be recorded in the adjusting entry on Dec. 31, 2017?
Php 6,000
Php 24,000
Php 30,000
Php 36,000
CHS Hardware borrowed P 120,000 at 12% interest on February 1, 2017. The amount will be paid after 1 year. No entry was entered in the journal to take up the interest. How much is the interest expense to be recorded on Dec. 31, 2017.
Php 13,200
Php 12,000
Php 14,400
Php 10,800
On October 1, 2017 the company paid P 18,000 for a one-year insurance policy. Prepaid Insurance Expense was debited and Cash was credited. The account to be debited and its amount to be recorded on Dec. 31, 2017 is
Insurance Expense/ Php 13,500
Prepaid Insurance/ Php 13,500
Insurance Expense/ Php 4,500
Prepaid Insurance/ Php 4,500
On Nov. 1, 2017, Ms. Cruz, owner of Labada Express, received P 60,000 as advance payment from Hotel Dolores for laundry of assorted garments. Assuming, 60% of the unearned revenue has been rended on Dec. 31, 2017, what is the account to be credited and its amount?
Unearned Revenue/ Php 36,000
Laundry Revenue/ Php 24,000
Unearned Revenue/ Php 24,000
Laundry Revenue/ Php 36,000
When we record depreciation on a computer, we credit what account in the journal entry?
Accumulated Depreciation - Computer
Depreciation Expense - Computer
Computer
Prepaid Computers
Vulture Consultancy Services closes its books every December 31 and correspondingly prepares year-end adjusting entries. Make the appropriate adjusting entry on the given transaction:
Vulture Consultancy Services was known for its advertising tactics in the industry. Hence, last October 31, Pizza Hut decided to sign a contract for a three year advertising campaign with the aim to launch and promote the new pizza flavors. In line with this, the Vulture Consultancy Services received P 1, 800, 000 for the contract.
Unearned Advertising Income (DR): 250, 000
Advertising Income (CR): 250, 000
Unearned Advertising Income (DR): 150, 000
Advertising Income (CR): 150, 000
Unearned Advertising Income (DR): 100, 000
Advertising Income (CR): 100, 000
Unearned Advertising Income (DR): 300, 000
Advertising Income (CR): 300, 000
Vulture Consultancy Services closes its books every December 31 and correspondingly prepares year-end adjusting entries. Make the appropriate adjusting entry on the given transaction:
On August 1, the company borrowed P 250, 000 from Metro Bank at 12% per annum.
Interest Expense (DR): 12,500
Interest Payable (CR): 12, 500
nterest Expense (DR): 150,000
Interest Payable (CR): 150, 000
Interest Expense (DR): 30,000
Interest Payable (CR): 30, 000
Interest Expense (DR): 2,500
Interest Payable (CR): 2, 500
Vulture Consultancy Services closes its books every December 31 and correspondingly prepares year-end adjusting entries. Make the appropriate adjusting entry on the given transaction:
The building has a cost of P 18, 000, 000 with salvage value of P 3, 000, 000 and an estimated useful life of 20 years. The building was acquired last April 1 of the current year.
Depreciation Expense (DR): 62,500
Accumulated Depreciation (CR): 62, 500
Depreciation Expense (DR): 562,500
Accumulated Depreciation (CR): 562, 500
Depreciation Expense (CR): 542,500
Accumulated Depreciation (DR): 542, 500
Interest Expense (DR): 750,000
Interest Payable (CR): 750, 000
Vulture Consultancy Services closes its books every December 31 and correspondingly prepares year-end adjusting entries. Make the appropriate adjusting entry on the given transaction:
15 workers are paid every Saturday for a six-day work at P 512 per day. December 31 falls on a Wednesday.
Salaries Expense (DR): 46,080
Salaries Payable (CR): 46, 080
Salaries Expense (DR): 30, 720
Salaries Payable (CR): 30, 720
Salaries Expense (DR): 53.760
Salaries Payable (CR): 53.760
Salaries Expense (DR): 23,040
Salaries Payable (CR): 23,040
Vulture Consultancy Services closes its books every December 31 and correspondingly prepares year-end adjusting entries. Make the appropriate adjusting entry on the given transaction:
On April 30, the company rented an office space in Makati as its branch office. It paid P 192, 000 for the annual rent and debited the amount to Prepaid rent.
Rent Expense (DR): 160,000
Prepaid Rent (CR): 160,000
Rent Expense (DR): 112,000
Prepaid Rent (CR): 112,000
Rent Expense (DR): 128,000
Prepaid Rent (CR): 128,000
Rent Expense (DR): 144,000
Prepaid Rent (CR): 144,000
Vulture Consultancy Services closes its books every December 31 and correspondingly prepares year-end adjusting entries. Make the appropriate adjusting entry on the given transaction:
Supplies purchased during the year amounted to P 8, 000 of which P 7, 600 was used during the year.
Supplies Expense (DR): 7,600
Supplies Payable (CR): 7,600
Supplies Expense (DR): 7,600
Supplies (CR): 7,600
Supplies Expense (DR): 400
Supplies (CR): 400
Supplies Expense (DR): 400
Supplies Payable (CR): 400
Vulture Consultancy Services closes its books every December 31 and correspondingly prepares year-end adjusting entries. Make the appropriate adjusting entry on the given transaction:
On November 1, Vulture Consultancy Services, borrowed P 100,000 at 12% interest. How much interest expense should Vulture Consultancy Services accrue as of December 31, and how does it record the accrual on that day?
Interest Expense (DR): 3,000
Interest Payable (CR): 3,000
Interest Expense (DR): 12,000
Interest Payable (CR): 12,000
Interest Expense (DR): 4,000
Interest Payable (CR): 4,000
Interest Expense (DR): 2,000
Interest Payable (CR): 2,000
On April 1, 2015, Company β pays P 48,000 for a twelve-month insurance in advance. Company β’s financial year ends on June 30, 2015. What is the appropriate adjusting entry on June 30, 2015?
Insurance Expense (DR): 8, 000
Prepaid Insurance (CR): 8, 000
Insurance Expense (DR): 10, 000
Prepaid Insurance (CR): 10, 000
Insurance Expense (DR): 12, 000
Prepaid Insurance (CR): 12, 000
Insurance Expense (DR): 12, 000
Prepaid Insurance Payable (CR): 12, 000
On September 1, 2016, Company M purchased a building at P 11,200,000. Buildings are depreciated using the straight-line depreciation method. Useful life of the building is 40 years. Salvage value of the building at the end of useful life is estimated as P 1, 120,000.
What is the amount of depreciation expense for 2016?
(a)
ABC Company has a P 35,000 note payable within one year. The note originated on July 1 of the current year and bears interest at the rate of 10.5%.
Compute for the required interest expense for the month ended November 31.
1,837.50
1, 670.45
1, 531.30
918.75
Accounts receivable shows a balance of P 45, 000. It is estimated that 12% of this is uncollectible. Allowance for bad debts per general journal has a balance of P 4, 500.
Give the adjusting journal entry on December 31, 2012 for the provision of the estimated uncollectible account.
Bad Debts expense (DR): 900
Allowance for Bad Debts (CR): 900
Bad Debts expense (DR): 4, 500
Allowance for Bad Debts (CR): 4, 500
Bad Debts expense (DR): 5, 400
Allowance for Bad Debts (CR): 5, 400
Bad Debts expense (DR): 1, 500
Allowance for Bad Debts (CR): 1, 500
After completing adjustments the worksheet must
Have more debits than credits
Have more credits than debits
Still be in balance
Contain only negative numbers
The adjusting entry that reduces the balance in Prepaid Insurance will also include which of the following?
Credit to
Credit to Insurance Expense
Debit to Insurance Expense
Debit to Insurance Payable
