I hope there are explaination and solution to each queastions It will be more appreciated :)

Which of the following transactions does not affect the balance sheet totals?

a. Purchasing P50,000 supplies on account

b. Collecting P40,000 from customers on account

c. Paying P300,000 note payable

d. Withdrawal of P80,000 by the firm's owner

51. The accrual basis of accounting recognizes

1. revenues when cash is received.
2. expenses when cash is paid.
3. revenues when products are produced as part of operating activities.
4. expenses when resources are consumed as part of operating activities.

53. Which of the following statements is true about a proper journal entry?

1. An explanation must follow each debit and each credit.
2. The name of the month should be repeated for each entry.
3. The Posting Reference column is filled in prior to posting
4. All debits are listed before any credits.

1. An entity receives rent for subletting part of its office block. The rent, receivable quarterly in advance, follows:

Date of Receipt Period Covered Amount

Oct. 1, 2018 3 months to Dec. 31, 2018 P75,000

Dec. 30, 2018 3 months to Mar. 31, 2019 75,000

Apr. 4, 2019 3 months to June 30, 2019 90,000

July 1, 2019 3 months to Sept. 30, 2019 90,000

Oct. 1, 2019 3 months to Dec. 31, 2019 90,000

What figures, based on these receipts, should appear in the entity's financial statements for the year ended Nov. 30, 2019?

Income Statement Statement of Financial Position

a. P340,000 Debit Rent in Arrears (Dr.) P30,000

b. P345,000 Credit Unearned Rent Revenues (Cr.) P60,000

c. P340,000 Credit Unearned Rent Revenues (Cr.) P30,000

d. P340,000 Credit Rent in Arrears (Dr.) P30,000

2. An entity pays rent quarterly in arrears on Jan. 1, Apr. 1, July 1 and Oct. 1 each year.

The rent was increased from P900,000 per year to P1,200,000 per year starting Oct.

1, 2018. What rent expense and rent payable amounts should be included in the

entity's financial statements for the year ended Jan. 31, 2019?

Rent Expense Rent Payable

a. P1,000,000 P200,000

b. P1,000,000 P100,000

C. P975,000 P100,000

d. P975,000 P200,000

3. At Mar. 31, 2018, an entity had oil on hand to be used for heating costing P82,000

and an unpaid heating oil bill for P36,000. At Mar. 31, 2019, the heating oil on hand

was P93,000 and there was an outstanding heating oil bill of P32,000. Payments

made for heating oil during the year ended Mar. 31, 2019 totaled P346,000.

What is the amount of heating oil that would appear on the entity's 2019 income

statement?

a. P239,000

b. P361,000

C. P453,000

d. P331,000

4. An entity has sublet part of its offices and in the year ended Nov. 30, 2019 the rent

receivable was:

Until June 30, 2019 P84,000 per year

From July 1, 2019 P120,000 per year

Rent was collected quarterly in advance on Jan. 1, Apr. 1, July 1 and Oct. 1 each

year. what amounts should appear in the entity's financial statements Tor the year

ended Nov. 30, 2019?

Rent Receivable Statement of Financial Position

a. P99,000 P20,000 in Unearned Rent Revenues

b. P99,000 P10,000 in Unearned Rent Revenues

C. P102,000 P10,000 in Unearned Rent Revenues

d. P99,000 P20,000 in Prepaid Rent

5. A business compiling its financial statements for the year to July 31 each year pays

rent quarterly in advance on Jan. 1, Apr. 1, July 1 and Oct. 1 each year. The annual

rent was increased from P600,000 per year to P720,000 per year starting Oct. 1,

2018. What figure should appear for rent expense in the entity's income statement

for the year ended July 31, 2019?

a. P690,000

b. P620,000

C. P700,000

d. P630,000

6. Diesel fuel in inventory at Nov. 1, 2018 was P12,500, and there were invoices

awaited for P1,700. During the year to Oct. 31, 2019, diesel fuel bills of P85,400

were paid, and a delivery worth.P1,300 had yet to be invoiced. At Oct. 31, 2019, the

inventory of diesel fuel was valued at P9,800. What is the value of diesel fuel to be

charged to the income statement for the year ended Oct. 31, 2019?

a. P87,700

b. P89,400

C. P88,500

d. P91,100

7. During 2018, an entity paid a total of P600,000 for rent, cover

Oct. 1, 2017 to Mar. 31, 2019. What figures should appear covering in the the entit period fro

statements for the year ended Dec. 31, 2018? tity's financial

Income Statement Statement of Financial Position

a. P400,000 P100,000 Prepayment

b. P400,000 P150,000 Prepayment

P500,000 P100,000 Accrual

d. P500,000 P150,000 Accrual

8. What are the correct journal entries to record an accrual in the accounts?

Dr. Cr.

a. Asset Expenses

b. Expenses Liability

C. Liability Expenses

d. Expensees Asset

9 The trainee accountant has forgotten to make an accrual for December rent in the

financial statements for the year ended Dec. 31, 2019. Rent is charged in arrears at

the end of Feb., May, Aug. and Nov. each year. The bill payable in Feb. is expected

to be P300,000. Draft income statement shows a profit of P250,000 and draft

statement of financial position shows net assets of P2,750,000.

What is the profit or loss for the year and what is the net asset position after the

accrual has been included in the financial statements?

Profit for the Year Net Asset

a. P150,000 P2,650,000

b. P150,0000 P2,850,000

C. P350,000 P2,650,000

d. P350,000 P2,850,000

10, Draft accounts for the year ended Oct. 31, 2019 report a loss of P148,600. The

entity did not include an accrual of P162,500 and a prepayment of P83,400.

What is the profit or loss for the year ended Oct. 31, 2019 following the inclusion of

the accrual and prepayment?

a. A loss of P69,500

b. A loss of P227,700

C A loss of P394,500

d. A profit of P180,700