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Fundamentals of Accountancy, Business, and Management Final Assessment Activity

1. On June 15, Mr. Bean received $162,000 for a one-year lease and recorded rent income. On December 31, an adjusting entry was made to recognize $67,500 of unearned rent income. 2. On March 1, Megastar Printers received $10,200 for a two-year contract and recorded unearned service income. On June 30, an adjusting entry recognized $4,250 of service income for the period earned. 3. On February 1, Monroe Enterprise prepaid $62,400 of rent for 6 months. On June 30, an adjusting entry allocated $10,400 of rent

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250 views6 pages

Fundamentals of Accountancy, Business, and Management Final Assessment Activity

1. On June 15, Mr. Bean received $162,000 for a one-year lease and recorded rent income. On December 31, an adjusting entry was made to recognize $67,500 of unearned rent income. 2. On March 1, Megastar Printers received $10,200 for a two-year contract and recorded unearned service income. On June 30, an adjusting entry recognized $4,250 of service income for the period earned. 3. On February 1, Monroe Enterprise prepaid $62,400 of rent for 6 months. On June 30, an adjusting entry allocated $10,400 of rent

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Wer
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© © All Rights Reserved
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Fundamentals of Accountancy, Business, and Management

Final Assessment Activity

Name: Heart B. Cabrera Section: ABM 11-A

Date: July 16,2021 Teacher: Mr. Alexander Lui

I. IDENTIFICATION (write your answers on the space provided)


1. Sorting similar and related business transactions into three categories of assets, liabilities, and owner’s
equity. Classifying
2. Examination and review of accounting reports in order to ascertain their fairness, propriety, and
reliability. Auditing
3. Regards the business enterprise as separate and distinct from its owners and from other business
enterprise. Entity Concept
4. States that all business transactions that will be entered in the accounting records must be duly supported
by verifiable evidence. Objectivity Principle
5. Approaches used in reporting must be uniformly employed from period to period to allow comparison of
results between time periods. Consistency
6. The systematic process of measuring and reporting relevant information about the activities of an
economic organization or unit. Accounting
7. Economic resources owned by the business expected for future gain. Asset
8. It shows the result of operations for a given period. Income Statement
9. It summarizes the cash receipts & cash disbursements for the accounting period. Statement of Cash Flows
10. What is the basic accounting equation? Asset=Liability + Equity
11. A list of accounts found in the ledger together with the account’s balance or total. Trial Balance
12. What is the normal balance of owner’s equity or capital? Credit Balance
13. It shows the financial condition of a business as of a given period. Balance Sheet
14. The key product or the end product of the accounting process. Financial Statement
15. It states that all material facts that will significantly affect the financial statements must be indicated.
Adequate Disclosure
16. Writing down of business transactions chronologically in the books of accounts. Recording
17. The process of recording the transactions in the first book of account. Journalizing
18. The process of transferring the information found in the journal into the book of final entry. Posting
19. These are prepared at the end of the accounting period to update the accounts for internal transactions
because they affect more than 1 accounting period. Adjusting Journal Entries
20. An account bearing the name of the owner representing the original and additional investment of the
owner of the business. Capital
II. Prepare Income Statement using the data given below:
The following accounts are taken from the books of Dr. Jones for the period of January to June
2020.
Professional Fees P220,000
Salaries Expense 45,000
Other Income 23,900
Rent Expense 35,000
Sales Income 58,500
Utilities Expense 23,800
Supplies Expense 37,300
III. Give the adjusting journal entries based on the transaction data given below:

1. On June 15, Mr. Bean received 162,000 for one year lease for his vacant lot. Using the Income
method, give the adjusting journal entries on December 31.

Journal Entry upon receipt on June 15

Cash P162,000
Rent Income P162,000
To record income not yet earned

Adjusting Journal Entry on December 31

Rent Income P67,500


Unearned Rent Income P67,500
To record Rent Income not yet earned

2. On March 1, Megastar Printers received 10,200 for a two-year contract of printing monthly
magazine. Using the Liability method, give the adjusting journal entries on June 30.

Journal Entry upon receipt on March 1

Cash P10,200
Unearned Service Income P10,200
Received two-year contract of printing monthly

Adjusting Journal Entry on June 30

Unearned Service Income P4,250


Service Income P4,250
To record income earned for 10 months

3. On February 1, Monroe Enterprise paid 62,400 for 6 months rent of their office. Using the
Expense method, give the adjusting journal entries on June 30.

Journal Entry upon Payment in February 1

Rent Expense P62,400


Cash P62,400
Paid rent for 6 months

Adjusting Journal Entry on June 30

Prepaid Rent P10,400


Rent Expense P10,400
To record unused payment
4. On May 31, Mr. Yoso paid 84,400 amount of one year insurance for its factory. Using the
Asset method, give the adjusting journal entries on December 31.

Journal Entry upon Payment on May 31

Prepaid Insurance P84,400


Cash P84,400
To record payment of insurance for 1 year

Adjusting Journal Entry on December 31

Insurance Expense P49,233.33


Prepaid Insurance P49,233.33
To record expired/used insurance

IV. Journalize the transactions and post them to the T-accounts and then prepare the Trial Balance

2020
July 1 Mr. Jefferson invested the following in his business to be known as JM
Photocopying Center: Cash, P100,000 and Photocopying Equipment worth P350,000. In
addition, his loan payable of P80,000 would be assumed by the business.
2 JM Photocopying Center paid P12,000 for the purchase of bond papers.
3 Paid business permits and licenses amounting to P3,000.
4 Mr. Mercado hired one personnel with a weekly salary of P1,000 to look after the business.
10 Paid salary of the personnel for the week, P1,000.
16 Received P9,000 cash for services rendered
17 Paid salary of the personnel for the week, P1,000.
21 Billed a customer for services rendered during the week, P6,000.
24 Paid salary of the personnel for the week, P1,000.
27 Mr. Mercado made a P3,500 cash withdrawal for personal use.
28 Collected the amount billed to a customer, P2,000.
29 Paid rent for 2 months amounting to P18,000.
30 Received bill from the electric company, P5,600.
31 Paid salary of the personnel for the week, P1,000.

JM Photocopying Center
Chart of Accounts

ASSETS OWNER’S EQUITY


101 Cash 301 Mercado, Capital
112 Accounts Receivable 302 Mercado, Drawing
113 Allowance for Doubtful Accounts 399 Income Summary
114 Notes Receivable
115 Interest Receivable REVENUES
122 Unused Supplies 401 Photocopying Revenues
123 Prepaid Rent 402 Interest Income
151 Photocopying Equipment 499 Other Income
Accumulated Depreciation –
152
Photocopying Equipment
153 Furniture and Fixtures
Accumulated Depreciation –
154
Furniture and Fixtures
199 Other Assets
LIABILITIES EXPENSES
201 Accounts Payable 501 Taxes and License Expense
202 Notes Payable 502 Salaries Expense
203 Salaries Payable 503 Supplies Expense
204 Income Tax Payable 504 Utilities Expense
205 Interest Payable 505 Rent Expense
208 Unearned Photocopying Revenue 506 Depreciation Expense
212 Mortgage Payable 507 Doubtful Accounts Expense
215 Loans Payable 512 Interest Expense
299 Other Liabilities 599 Other Expense

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