Accounting 10 Ateneo Lex 1
Chapter 3
Short Problems
Accounting 10 Ateneo Lex 2
Short Problem 1
Solution:
Insurance Premium
Debit | Credit
3200 | 1600
1200 | 1500
P12100--> answer
Accounting 10 Ateneo Lex 3
Short Problem 2
Solution:Net Income 100,000Depreciation (2,000)Accounts Rec. 20,000Supplies 15,000Net Income, Dec. 31 P133,000 - Answer
Accounting 10 Ateneo Lex 4
Short Problem 3Deaq Gordon assists Filipino students upon their arrival in the United States. Paid by the Philippine government, Deaq Gordon collects some service revenue in advance. In other cases, he receives cash from said government after performing relocation services. At the end of August 2004, Deaq Gordon’s books report the following:
July 31 August 31Accounts Receivable 95,000 110,000Unearned Service Rev. 60,000 15,000If during August, Deaq Gordon Enterprises reported service revenue of P285,000 how much cash did the business collect from the Philippine government during that month?
Accounts Receivable
95000Revenues Cash Collection110,000
Solution: Unearned Rev
60,000
Revenues Cash Collection
15000
95000 60000
285000 Ans=225000
95000
Accounting 10 Ateneo Lex 5
Short Problem 4
Solution:Revenues 390,000Expenses 36,000
215,00078,000
(329000)Net Income P61,000
Accounting 10 Ateneo Lex 6
Short Problem 5
Solution: Revenues: 252,000
Cash Revenue 240000 Less: expenses (142,500)
Accounts Receivable 12000 Net Income 109500 - ansTotal Revenues 252000
Cash Expense 155000
Less: Accrued Expense (12500)
Total Expense 142500
Accounting 10 Ateneo Lex 7
Short Problem 6
Accounts Receivable
15,000 95,000X=9650016500
Accounts Receivable 96500
Revenue 96500
Cash Sales 15,000
A/R Sales 96,500111,500 Answer.
Solution:
Accounting 10 Ateneo Lex 8
Short Problem 7
Solution:
Cash Expense 75,000
Adj. Prepaid 900
Adj. Acc. Expense 3660
79560 -- Answer
Accounting 10 Ateneo Lex 9
Short Problem 8
Solution:ORIX = 1,950,000/24 months x 11 months = 893,750 = 1056,250PX = 2760,000/24 months x 6 months = 690,000 = 2070,000AUTO LIFE = 1845000/36 months x 4 months = 205,000= 1,640,000
P4,766,250 - Answer
Accounting 10 Ateneo Lex 10
Short Problem 9
Unearned Revenues
1,500,00015,000,000 7,200,0003,600,000
3600,000 - Answer
Solution:
Accounting 10 Ateneo Lex 11
Short Problem 10
Solution: 1500 15003200 160020003600 - Answer
Accounting 10 Ateneo Lex 12
Short Problem 11
Unearned Rent Accrued Rent
Revenue 3000
cash
4200
1800
Rev. Cash
2400
1500 3000
29400 (ANS) 30000
1800
Solution:
Accounting 10 Ateneo Lex 13
Short Problem 12
Solution:
Net Income 80,000Office Supplies (1,500)ServiceExpense 2,500Accrued Interest (4,500)
76,500 --> Answer
Accounting 10 Ateneo Lex 14
Short Problem13
Solution:
9000 x 3 = 450 --> Answer5 x 12
Accounting 10 Ateneo Lex 15
Short Problem 14
Solution:
Depreciation: Fees earned 15,0009000 x 6 = 900 Unearned Fees (10,000)5 x12 Depreciation (900)
Salaries (6000)Adv. (150)Utilities (600)
Answer:Net Loss (2650)
Accounting 10 Ateneo Lex 16
Short Problem 15
Solution:Interest Exp. 20x2 = 80,000 x .10 = (3/12) = 2000 (ANS)
Accounting 10 Ateneo Lex 17
Short Problem 16
Solution:
80000 x .10 x (6/12) = 4,000 (ANS)
Accounting 10 Ateneo Lex 18
Short Problem 17 and 1817. On March 1, 2000,the corporation signed a five-year lease agreement covering the rental of a copying machine. The P6,000 rental is payable annually,with the first payment due on March 1, 2001.The rental expense chargeable to operations in 2001, on a cash basis of accounting will be:
Answer: P6,000
18. If the supplies account,before adjustment on May 31,indicated a balance of P2,250, and an inventory of supplies on hand at May 31 totaled P950, the adjusting entry would be:
Solution:
2250 - 950 = 1300 Supplies Expense 1300Supplies 1300
Accounting 10 Ateneo Lex 19
Short Problem 19 and 20
19. If the estimated amount of depreciation on equipment for the period is P2,000,the adjusting entry to record depreciation would be:
Answer: Depreciation Expense 2000
Depreciation 2000
20. On January 2, 20X6, the company paid P6,000 for a three-year fire insurance policy. The company used the asset method upon recording the premium paid on January 2, 20X6.Under the going concern concept of accounting, the amount of prepaid insurance that should be shown on the company’s balance sheet as of Dec. 31, 20X7 is:Solution:Prepaid Insurance 6000 1/20x6 6000
Cash 6000 12/20x6 4000Insurance Expense 2000 12/20x7 2000 (ANS)
Prepaid Insurance 2000
Accounting 10 Ateneo Lex 20
Short Problem 21 and 22
21. Howard Company sublet a portion of its warehouse for five years at an annual rental of P18,000 beginning on May 1, 1999. The tenant paid one year’s rent in advance, which Howard recorded as a credit to unearned rental income. Howard reports on a calendar-year basis. The adjustment on December 31, 1999 should be:
Solution: 18000/12 x 8 = 12,000 (Answer)
22.The corporation’s books showed a rent account with a balance of P1,800 for a one-year lease paid on January 31, 2000.
What would be the correct amount of prepaid rent for the balance sheet as of December 31, 2000?
Solution:
1800/12 x 11 = 1650 1800-1650 = P150 (ANSWER)
Accounting 10 Ateneo Lex 21
Short Problem 23 and 24
Answer: P172,000
130,000
42,000
172,000 (ANS)
Accounting 10 Ateneo Lex 22
Short Problem 25 and 26
P249350 - ANS
P130000 - ANS
Accounting 10 Ateneo Lex 23
Short Problem 27 and 28
27. The following information was gathered from a business using an incomplete method of accounting. Accounts receivables on January 1, 2000 totaled P34,000, collections from customers during the year were P142,000, and the accounts receivables on December 31, 2000, P36,000. How much were credited sales for 2000?
Accounts Receivable
34000
ANS=144000 142000
36000
Solution:
28. If the equipment account has a balance of P22,500 and its accumulated depreciation account has a balance of P14,000, the book value of the equipment is:
ANS: 8500
Accounting 10 Ateneo Lex 24
Short Problem 2929. William Company reported Prepaid Expenses of P150,000. Examination of the accounting
records revealed that this account consists of the following items:
A. Prepaid insurance (bought on March 1, 2004 covering one-year fire insurance for P12,000)
B. Rent paid in advance in the amount of P120,000 covering six-months rental from October1, 2004 - March 31,2005.
C. Supplies acquired January 1, 2004 amounting to P18,000. A physical inventory on December 31, 2004 disclosed that only P6,500 worth supplies are still on hand)
The company is preparing its financial statements for the year ending December 31, 2004. What will be the adjusting entry to be made on the books to update accounts?
Ans:a.Prepaid Insurance 12000
Cash 12000
b. Prepaid Rent 120,000
Cash 120,000
c. Supplies 18000Cash 18000
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