Problem 1

Over a period of time, if total assets increase by P270,000 and total liabilities increase by P70,000, then owner's equity will be increased by?

Problem 2

If Accounts Receivable has debit postings of P580,000, credit postings of P440,000 and a normal ending balance of P480,000, what is the amount of beginning balance?

Problem 3

A P200,000 machine is purchased by paying P50,000 cash and issuing a promissory note for the remainder. What is the journal entry to record the transaction?

Problem 4

A business received cash of P30,000 in advance for revenue that will be earned later. The cash receipt entry debited cash and credited unearned revenues for P30,000. At the end of the period, P11,000 is still unearned. What is the adjusting entry that must be prepared?

Problem 5

A law firm began November with office supplies of P16,000. During the month, the firm purchased supplies of P29,000. On November 30, supplies on hand totaled P21,000.What is the adjusting entry that must be prepared?

Problem 6

A company that pays employees every two weeks has paid workers P375,000 in wages and salaries for work completed during 2020. In addition, the employees' earned one week's salary of P7,200 at the end of December that will be paid as part of P14,400 payroll at the end of first week of January 2021. How much should the company report as salaries and wages expense for 2020?