31. A business received cash of 30,000 in advance for service that will be provided later. The cash received entry debited Cash and credited Unearned Revenue for 30,000. At the end of the period, 11,000 is still unearned. The adjusting entry in this situation is

A. debit Unearned Revenue and credit Revenue for 19,000

B. debit Unearned Revenue and credit Revenue for 11,000

C. debit Revenue and credit Unearned Revenue for 19,000

D. debit Revenue and credit Unearned Revenue for 11,000

32. At December 31, 2015, the ABC Company had 990,000 balance in its Advertising Expense account before any year-end adjustments relating to the following:

Radio advertising spots broadcast during December 2015 were billed to ABC on January 4, 2016. The invoice cost of 50,000 was paid on January 15, 2016.

Included in the amount reported as expense is 60,000 for newspaper advertising for a

January 2016 sales promotional campaign.

JPIAs advertising expense for the year ended December 31, 2015 should be:

1. 1,040,000 B. 1,000,000 C. 980,000 D. 930,000

33. SAD Company recorded accrued salaries of 25,000 at December 31, 2014. During 2015, the company paid salaries of 872,000. Unpaid salaries at December 31, 2015 amounted to 34,000. Eagle prepares adjustments for the year-ended only on the first working day of the following period and journalizes the adjusting entries as of December 31 and reversing entries are dated January 1. The balance of Salaries Expense account that would appear in the post-closing trial balance at December 31, 2015 is

1. 881,000 B. 34,000 C. 847,000 D. -0-

34. D Enterprises failed to accrue interest on its Note Receivable on December 31, 2015. The note was dated August 11, 2015, matures in six months and had a face value of 13,000. Interest rate stipulated is 10%. As a result, 2015 net income is __________. Round off the dates to the nearest fifteen days and assume a 360-day year.

A. 1,300 understated C. 487.50 understated E. 487.50 overstated

B. 975 understated D. 975 overstated

35. On April 8, 2015, Jo Trading purchased goods from a supplier for an invoice price of 113,600 with credit terms 2/10, 1/15, n/30; shipment terms FOB shipping point, freight prepaid. Freight charges amounted to 1,530. On April 21, Ela settled its account in full. On Jos cash payments journal, how much should appear as credit to Cash relating to the transaction?

A. P113,600 B. P115,130 C. P113,978.30 D. P112,464 E. P113,994

36. F Company a VAT-registered company sold merchandise at invoice price of P185,000, inclusive of 12% VAT, to J another VAT-registered company on credit. Trade discounts granted are 5% and 10%. Credit terms are 2/10, n/30; shipment terms FOB seller, freight collect. Freight charge is 2,500. In Fs books, Sales amounts to:

1. P185,000 B. P165,179 C. P158,175 D. P141,228 E. P139,194

37. Use the same information in #36. Assuming J uses periodic inventory system, the debit to Purchases based on foregoing transaction is:

1. 185,000 B. 165,179 C. 167,679 D. 141,228 E. -0-

38. How much is the monthly depreciation expense considering the following: Trade-in value-3,500; Est. Useful Life 5 years; Depreciable amount 69,500

a. 13,900 c. 13,200 b. 1,158.33 d. 1,100

39. At the end of the first month of operations, DBs bookkeeper prepared financial statements which showered assets of 4,000,000 liabilities of 1,500,000 and net income of 500,000. In preparing the statements, the bookkeeper overlooked the accrued wages at month-end of 30,000. The correct owners equity at month-end is

a. 2,970,000 b. 2,350,000 c. 2,470,000 d. 1,970,000

40. A business received cash of 300,000 in advance for service that will be provided later. The cash receipt entry debited cash and credited unearned revenue for 300,000. At the end of the period, 110,000 is still unearned. The adjusting entry for this situation will

a. Debit Unearned Revenue and Credit Revenue for 190,000

b. Debit Unearned Revenue and Credit Revenue for 110,000

c. Debit Revenue and Unearned Credit Revenue for 190,000

d. Debit Revenue and Unearned Credit Revenue for 110,000

41. HKL paid 170,400 on June 1,2013, for a two-year insurance policy and recorded the

entire amount as Insurance Expense.

The December 31, 2013, adjusting entry is

A. Debit Prepaid Insurance and Credit Insurance Expense, 49,700

B. Debit Insurance Expense and Credit Prepaid Insurance, 49,700

C. Debit Insurance Expense and Credit Prepaid Insurance, 120,700

D. Debit Prepaid Insurance and Credit Insurance Expense, 120,700

42. The Supplies on Hand account balance at the beginning of the period was 66,000, Supplies totaling 128,250, were purchased during the period and debited to Supplies on Hand. A physical count shows 38,250 of the Supplies on Hand at the end of the period.

The proper journal entry at the end of the period

A. Debit Supplies on Hand and Credit Supplies Expense for 90,000

B. Debit Supplies Expense and Credit Supplies on Hand for 128,250

C. Debit Supplies on Hand and Credit Supplies Expense for 156,000

D. Debit Supplies Expense and Credit Supplies on Hand for 156,000

43. On December 31 of current year, K Companys bookkeeper made an entry debiting Supplies Expense and Crediting Supplies on Hand for 126,000. The Supplies on Hand account had a 153,000 debit balance on January 1. The December 31 balance sheet showed Supplies on Hand of 114,000. Only one purchase of supplies was made during the month, on account. The entry for that purchase was

A. Debit Supplies on Hand, 87,000 and Credit Cash, 87,000

B. Debit Supplies Expense, 87,000 and Credit Accounts Payable, 87,000

C. Debit Supplies on Hand, 87,000 and Credit Accounts Payable, 87,000

D. Debit Supplies on Hand, 165,000 and Credit Accounts Payable, 165,000

44. A trial balance has debit and credit totals of 7,000. The purchase of 4,000 of office supplies on account was omitted from the original journal entries. After recording and posting this transaction, the new debit and credit totals for the trial balance would be

A 11,000 C 9,000

B 7,000 D 3,000

45. From this list of account balances, calculate the total credit column for the post-closing trial balance:

Cash, 15,000; Accounts Receivable, 3,000; Prepaid Rent, 2,000; Building, 30,000; Accumulated Depreciation, 13,000; Accounts Payable, 6,000; Unearned Revenue, 1,000; Lo, Capital, P 30,000.

A 69,000 C 45,000

B 50,000 D 20,000

46. The Balance Sheet of D Company shows that capital is 540,000 that is equal to 1/3 of its total assets. How much are the total liabilities?

A 180,000 C 1,080,000

B 720,000 D 1,620,000

47. The assets of E Company amounted to 810,000 on December 31, 2008, but increased to 1,305,000 by December 31, 2009. During the same period, liabilities increased by 270,000. Owners equity on December 31, 2008 amounted to 495,000. What was the amount of the Owners Equity on December 31, 2009?

A 585,000 C 1,035,000

B 720,000 D 1,080,000

48 L Company paid 9,000 for three months of rent in advance. The Prepaid Rent

account had a remaining balance of 3,000 at the end of the accounting period. The adjusting entry to reflect this must have been

A debit Rent Expense and credit Prepaid Rent for 3,000

B debit Rent Expense and credit Prepaid Rent for 6,000

C debit Prepaid Rent and credit Rent Expense for 12,000

D debit Prepaid Rent and credit Cash for 9,000

49. The balance in the capital account of K Company, at the beginning of the year was 650,000. During the year, the company earned revenue of 4,300,000, incurred expenses of 3,600,000, the owner withdrew 500,000 in assets and the balance in the cash account increased by 100,000.

At year-end, the companys net income and the year-end balance in the capital account were,

respectively:

a. 200,000 and 950,000 c. 600,000 and 750,000

b. 700,000 and 950,000 d. 700,000 and 850,000

50. Before the month-end adjustments are made, the January 31, trial balance of Sa Company contains revenues of 580,000 and expenses of 178,000. Adjustments are necessary for the following items: a) depreciation for January, 48,000; b) portion of fees collected in advance in January, 110,000; c) fees earned in January, not yet billed to customers 65,000; d) portion of prepaid rent applicable to January, 90,000.

Net income of Sa Company in January is

a. P569,000 b. P439,000 c. P352,000 d. P259,000