What is accounting PRACTICE? (5 POINTS)

What is the accounting equation? (5 POINTS)

FIVE ELEMENTS OF ACCOUNTNG DEFINITION: (5 POINTS)

WHAT ARE FIXED ASSETS? (5 POINTS)

WHAT ARE INTANGIBLE ASSETS? (5 POINTS)

6)WHAT ARE THE FIVE ACCOUNTING ELEMENTS? DEFINITION (5 POINTS)

a.

b.

c.

d.

e.

7)DEFINE AND GIVE EXAMPLE OF ACRUAL AND DEFERRED TRANSACTIONS? (5 POINTS)

8)DESCRIBE THE ACCOUNTING FOR INVENTORY AND INVENTORY VALUATION (5 POINTS)

9)EXPLAIN WAGES PAYABLE VERSUS WAGES EXPENSE (5 POINTS)

ADJUSTING ENTRIES (5 POINTS)

REMA supplies account has a balance of $3,000 on the unadjusted trial balance. Some of these supplies have been used. On JANUARY 31, a count reveals that the amount of supplies on hand is $760.

jOURNAL

DATE		DESCRIPTION	pOST REF	DEBIT	CREDIT
2017 jAN	31
		sUPPLIES USED ($____-____)

11)Describe the concept of internal control and accounting cash (5 POINTS)

12)Describe the accounting for receivables (5 POINTS)

13)COMPARE THE ACCOUNTING FOR BUSINESS THAT BUY AND SELL MERCHANDISE (5 POINTS)

14)PROBLEM SOLVING: (35 POINTS)

Mr. Robert Garcia began professional practice as a system analyst on July 1. He plans to prepare a monthly financial statement. During July, the owner completed these transactions (currency of US Dollars): Journal, Ledger, Trial Balance, and Financial Statements (Income Statement, Owners Retained Earnings and Balance Sheet)

July 1. Owner invested 500,000 cash along with computer equipment that had a market value of 120,000 two years ago but was now worth 100,000 only.

July 2. Paid 15,000 cash for the rent of office space for the month.

July 4. Purchased 12,000 of additional equipment on credit (due within 30 days).

July 8. Completed a work for a client and immediately collected the 32,000 cash.

July 10. Completed work for a client and sent a bill for 7,000 to be paid within 30 days.

July 12. Purchased additional equipment for 8,000 in cash.

July 15. Paid an assistant 6,200 cash as wages for 15 days.

July 18. Collected 15,000 on the amount owed by the client.

July 25. Paid 12,000 cash to settle the liability on the equipment purchased.

July 28. Owner withdrew 500 cash for personal use.

July 30. Completed work for another client who paid only 40,000 for 50% of the system design.

July 31. Paid salary of assistant 700.

July 31. Received PLDT bill, 1,800 and Meralco bill 3,800.

JOURNAL (10 points)

DATE ACCOUNTS DEBIT CREDITS

CASH COMPLETE THE LEDGER (10 points)

DATE

ITEM

POST. REF.

DEBITS

CREDITS

BALANCE DEBIT CREDIT

DATE	ITEM	POST. REF.	DEBITS	CREDITS	BALANCE DEBIT CREDIT
DATE	ITEM	POST. REF.	DEBITS	CREDITS	BALANCE DEBIT CREDIT
DATE	ITEM	POST. REF.	DEBITS	CREDITS	BALANCE DEBIT CREDIT
DATE	ITEM	POST. REF.	DEBITS	CREDITS	BALANCE DEBIT CREDIT
DATE	ITEM	POST. REF.	DEBITS	CREDITS	BALANCE DEBIT CREDIT
DATE	ITEM	POST. REF.	DEBITS	CREDITS	BALANCE DEBIT CREDIT

DATE	ITEM	POST. REF.	DEBITS	CREDITS	BALANCE DEBIT CREDIT
DATE	ITEM	POST. REF.	DEBITS	CREDITS	BALANCE DEBIT CREDIT
DATE	ITEM	POST. REF.	DEBITS	CREDITS	BALANCE DEBIT CREDIT
DATE	ITEM	POST. REF.	DEBITS	CREDITS	BALANCE DEBIT CREDIT
DATE	ITEM	POST. REF.	DEBITS	CREDITS	BALANCE DEBIT CREDIT
DATE	ITEM	POST. REF.	DEBITS	CREDITS	BALANCE DEBIT CREDIT

COMPLETE THE TRIAL BALANCE

MR. ROBER GARCIA UNADJUSTED TRIAL BALANCE JULY 31 ___
ACCOUNTS TITLE	DEBIT BALANCES	CREDIT BALANCES
CASH
TOTAL

PREPARE THE INCOME STATEMENT, OWNERS RETAINED EARNINGS, AND BALANCE SHEET FOR MR. ROBERT GARCIA