Name: ___________________________

Section: ________________________

Grade: _________
date: ___________

Far Eastern university

Accounting 1J02 Mid term Exam
Johnson A.H. Ong
GENERAL INSTRUCTION: Use blue or black ball pen. STRICTLY NO ERASURE. Put your solution at the back of the
questionnaire. Upon receiving this questionnaire STUDENTS ARE PROHIBITED TO MAKE ANY COMMUNICATION WITH
HIS CLASSMATE. VIOLATION SHALL BE DEALT WITH SEVERELY. STUDENT CAUGHT COPYING OR CHEATING
SHALL AUTOMATICALLY GET A FAILING GRADE IN THIS EXAMINATION

Test I- Multiple Choice

A
B
C

Test II- Problem

1. ___________________

1.

31.

2. ___________________

2.

32.

3. ___________________

3.

33.

4. ___________________

4.

34.

5. a.)_________________

5.

35.

b.) _________________

6.

36.

c.) _________________

7.

37.

6. a.) _________________

8.

38.

b.) _________________

9.

39.

c.) _________________

10.

40.

7. a.) __________________

11.

41.

b.) __________________

12.

42.

13.

43.

14.

44.

15.

45.

16.

46.

17.

47.

18.

48.

19.

49.

20.

50.

21.

51.

22.

52.

23.

53.

24.

54.

25.

55.

26.

56.

27.

57.

28.

58.

29.

59.

30.

60.

Chill sold merchandise to Jill for P15,000 on terms, 25% down, balance 2/10, n/30. Freight cost is P300.
1.

The entry in Chills books for the sale, including the freight cost (if the shipping terms is FOB Destination, Freight Prepaid) is:
a.
Accounts Receivable
15,000
c.
Accounts Receivable
15,000
Sales
15,000
Freight-out
300
Sales
15,000
Cash
300
b.

2.

Accounts Receivable
Sales

15,300

d.
15,300

Accounts Receivable
Freight-out
Sales

14,700
300
15,000

Accounts Receivable
Sales

15,300

d.
15,300

Accounts Receivable
Sales
Cash

15,300
15,000
300

Accounts Receivable
Sales

15,300

d.
15,300

Accounts Receivable
Freight-out
Sales

14,700
300
15,000

Purchases
Accounts Payable

15,300
15,300

d.
Purchases
15,000
Freight-in
300
Accounts Payable
15,300

Purchases
Accounts Payable
Cash

15,000
14,700
300

d.
Purchases
Freight-in
300
Accounts Payable

15,000
15,300

The entry in Jills books for the purchase, including the freight cost (if the shipping terms if FOB Shipping Point, Freight Prepaid) is:
a.
Purchases
15,000
c.
Purchases
15,000
Accounts Payable
15,000
Freight-in
300
Accounts Payable 15,000
Cash
300
b.

8.

15,000

The entry in Jills books for the purchase, including the freight cost (if the shipping terms if FOB Destination, Freight Collect) is:
a.
Purchases
15,000
c.
Purchases
15,000
Accounts Payable
15,000
Freight-in
300
Accounts Payable 15,000
Cash
300
b.

7.

14,700
300

The entry in Jills books for the purchase, including the freight cost (if the shipping terms if FOB Destination, Freight Prepaid) is:
a.
Purchases
15,000
c.
Purchases
15,000
Accounts Payable
15,000
Freight-in
300
Accounts Payable 15,000
Cash
300
b.

6.

Accounts Receivable
Freight-out
Sales

The entry in Chills books for the sale, including the freight cost (if the shipping terms is FOB Shipping Point, Freight Collect) is:
a.
Accounts Receivable
15,000
c.
Accounts Receivable
15,000
Sales
15,000
Freight-out
300
Sales
15,000
Cash
300
b.

5.

d.
15,300

The entry in Chills books for the sale, including the freight cost (if the shipping terms is FOB Shipping Point, Freight Prepaid) is:
a.
Accounts Receivable
15,000
c.
Accounts Receivable
15,000
Sales
15,000
Freight-out
300
Sales
15,000
Cash
300
b.

4.

15,300

The entry in Chills books for the sale, including the freight cost (if the shipping terms is FOB Destination, Freight Collect) is:
a.
Accounts Receivable
14,700
c.
Accounts Receivable
15,000
Freight-out
300
Freight-out
300
Sales
15,000
Sales
15,000
Cash
300
b.

3.

Accounts Receivable
Sales

Purchases
Accounts Payable

15,300
15,300

d.
Purchases
Freight-in
300
Accounts Payable

15,000
15,300

The entry in Jills books for the purchase, including the freight cost (if the shipping terms if FOB Shipping Point, Freight Collect) is:

a.

b.

Purchases
15,000
Accounts Payable
15,000

Purchases
Accounts Payable

15,300
15,300

c.

Purchases
15,000
Freight-in
300
Accounts Payable 15,000
Cash

300

d.
Purchases
15,000
Freight-in
300
Accounts Payable
15,300

Below is the partial trial balance as of February 1, 2002 of Shane Wane Company:
Cash
Accounts Receivable
Merchandise Inventory
Supplies
Prepaid Insurance
Land
Building
Accumulated Depreciation Building
Equipment
Accumulated Depreciation Equipment
Accounts Payable
Mortgage Payable
Wane, Capital
Wane, Drawing
Sales
Sales Returns & Allowances
Sales Discounts
Purchases
Purchase Returns and Allowances
Purchase Discounts
Freight In
Salaries Expense
Freight Out
Advertising Expense
Interest Expense
Miscellaneous Expense

Debit
33,000
192,000
413,000

Credit

51,000
48,000
460,000
1,750,000
P 350,000
2,310,000
630,000
108,000
2,600,000
1,569,000

-----------------------------------------------P 5,257,000
P 5,257,000

Total
Transactions for the month of February are as follows:
Feb. 1
2
4
5
7
7
8
9
10
12
14
15
16
18
19
20
22
23
24
24
25
26
28
28
9.

Collected P113,000 from customers on account.

Paid 64,000 of accounts due less discounts of 3%.
Purchased merchandise, P170,000. Terms: FOB Shipping Point, 3/10, n/30.
Sold merchandise on account to G Co., P270,000. Terms: FOB Shipping Point, 2/10, n/30.
Paid for advertising for the month of February, P6,000.
Sold merchandise for cash, P250,000.
Paid the amount due from Feb. 4, transaction.
Paid WG&A Freight P4,000 for delivering merchandise last Feb. 4.
Received returns from the G Co., P70,000.
Received payment from the G Co. less discounts.
Paid P26,000 interest on the mortgage payable.
Paid salaries, P51,000.
Sold merchandise on account to R Co., P392,000. Terms: FOB Destination, 2/10, n/30.
Paid P4,000 freight charges on the sale of Feb. 16.
Acquired supplies for cash, P21,000.
Purchased P125,000 of merchandise from L Co. on account. Terms: FOB Destination, 3/10, n/30.
Paid P7,000 of miscellaneous expense.
Received payment from R Co. less discounts.
Purchased P373,000 of merchandise on account from A Co. Terms: FOB Shipping Point, 3/10, n/30.
Paid LBC Express P9,000 freight for delivering merchandise acquired from A Co.
Sold merchandise to R Co. on account, P420,000. Terms: FOB Shipping Point, 2/10, n/30.
Received returns from R Co., P71,000.
Mr. Wane withdrew P400,000 from the business.
Returned merchandise purchased from A Co. on Feb. 24, P25,000.

The entry to record the February 2 payment is:

a. Accounts Receivable
64,000
Cash
64,000

c.

b.

d.

Accounts Payable

64,000

Accounts Payable
64,000
Purchase Discounts
1,920
Cash
62,080
Accounts Payable

64,000

Sales Discounts
Cash
10.

11.

12.

13.

Cash

The entry to record the February 12 receipt of payment is:

a. Accounts Receivable
270,000
Cash
270,000

c.

b.

d.

Cash
196,000
Sales Discounts
4,000
Accounts Receivable
200,000

The entry to record the February 18 payment of freight is:

a. Freight Out
4,000
Cash
4,000

c.

b.

d.

Transportation In
Cash

4,000
4,000

The entry to record the February 24 payment of freight is:

a. Freight Out
9,000
Cash
9,000

c.

b.

d.

Transportation In
Cash

9,000
9,000

The entry to record the February 10 receipt of return of merchandise is:

a. Purchase Returns & Allowances 70,000
c.
Accounts Receivable
70,000
b.

14.

1,920
62,080

Accounts Receivable
Sales Returns & Allowances

70,000
70,000

d.

The entry to record the February 28 return of merchandise is:

a. Purchase Returns & Allowances 25,000
Accounts Payable
25,000

c.

b.

d.

Accounts Payable
25,000
Purchase Returns & Allowances 25,000

64,000

Cash
264,600
Sale Discounts
5,400
Accounts Receivable
270,000
Accounts Payable
270,000
Sales Discounts
Cash
Freight In
Cash
Transportation Out
Cash
Freight In
Cash
Transportation Out
Cash

5,400
264,600

4,000
4,000
4,000
4,000
9,000
9,000
9,000

Sales Returns & Allowances

Cash

9,000
70,000
70,000

Sales Returns & Allowances 70,000

Accounts Receivable
70,000
Sales Returns & Allowances
Cash

25,000
25,000

Purchase Returns & Allowances 25,000

Accounts Receivable
25,000

After journalizing the above transactions, compute for the unadjusted balances of the following accounts as of February 28, 2002:
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.

Cash:
a. P 222,180
b. P 247,180
Accounts Receivable:
a. P 498,000
b. P 428,000
Supplies:
a. P 21,000
b. P 71,000
Accounts Payable:
a. P 144,000
b. P 542,000
Sales:
a. P 1,082,000
b. P 1,262,000
Sales Returns & Allowances:
a. P 141,000
b. P 137,000
Sales Discounts:
a. P 11,840
b. P -0Purchases:
a. P 668,000
b. P 295,000
Purchase Returns & Allowances:
a. P 25,000
b. P -0Purchase Discounts:
a. P 7,020
b. P 1,920
Freight In:

c.
d.

P 221,180
P 225,180

c.
d.

P 158,000
P 192,000

c.
d.

P 51,000
P 72,000

c.
d.

P 517,000
P 347,000

c.
d.

P 1,332,000
P -0-

c.
d.

P -0P 70,000

c.
d.

P 4,000
P 7,840

c.
d.

P 498,000
P 543,000

c.
d.

P 23,000
P 22,000

c.
d.

P 5,100
P -0-

26.
27.
28.
29.
30.

a. P 13,000
b. P -0Salaries Expense:
a. P -0b. P 51,000
Freight Out:
a. P 4,000
b. P 9,000
Advertising Expense:
a. P 9,000
b. P 7,000
Interest Expense:
a. P 26,000
b. P -0Miscellaneous Expense:
a. P 7,000
b. P 9,000

c.
d.

P 9,000
P 4,000

c.
d.

P 31,000
P 21,000

c.
d.

P -0P 13,000

c.
d.

P 6,000
P -0-

c.
d.

P 29,000
P 22,000

c.
d.

P 37,000
P 44,000

Kissmet Kerbo owns and operates Subic Bait Shop and Boat Rental. The year-end trial balance and adjustment information is
provided as follows:
Subic Bait Shop and Boat Rental
Trial Balance
December 31, 2002
Cash
Accounts Receivable
Merchandise Inventory
Supplies
Prepaid Insurance
Land
Building
Accumulated Depreciation Building
Store Equipment
Accumulated Depreciation Store Equipment
Accounts Payable
Notes Payable
Salaries Payable
Kerbo, Capital
Kerbo, Drawing
Sales
Sales Returns & Allowances
Purchases
Purchase Returns and Allowances
Purchase Discounts
Freight In
Salaries Expense
Utilities Expense
Advertising Expense
Telecommunications Expense
Supplies Expense
Insurance Expense
Depreciation Expense Building
Depreciation Expense Store Equipment
Miscellaneous Expense
Total

Debit
P 100,000
75,000
190,000
9,000
12,000
50,000
450,000

Credit

80,000

250,000
75,000
50,000
25,000
779,000
100,000
1,112,500
6,000
525,000
4,000
5,000
1,500
210,000
60,000
37,500
17,500

37,000
----------------------------------P 2,130,500
P 2,130,500

Adjustments needed to be made are as follows:

a. Based on the physical count, it was determined that merchandise inventory costing P150,000 is on hand at December 31, 2002.
b. Supplies remaining at the end of the year, P2,000.
c. Unexpired insurance on December 31, P3,000.
d. Depreciation expense on the building for 2002 was P20,000.
e. Depreciation expense on the store equipment for 2002 was P15,000.
f. Salaries incurred but not yet paid as at December 31, P2,250.
On the basis of the above data, determine the following items.
31.

The appropriate heading for a worksheet is:

a. Subic Bait Shop and B oat Rental

c.

Subic Bait Shop and B oat Rental

Worksheet
December 31, 2002
b.

32.

33.

Worksheet
For the year ended December 31, 2002

Subic Bait Shop and B oat Rental

Trial Balance
December 31, 2002

d.

Subic Bait Shop and B oat Rental

For the year ended December 31, 2002
Worksheet

The entry to record adjustment for Supplies is:

a. Supplies
7,000
Supplies Expense
7,000

c.

b.

d.

Supplies Expense
Supplies

2,000

Supplies Expense
Supplies
Supplies
Supplies Expense

2,000

The entry to record adjustment for Insurance is:

a. Prepaid Insurance
3,000
Insurance Expense
3,000

c.

7,000
7,000
2,000
2,000

Prepaid Insurance
9,000
Insurance Expense

9,000

b.
34.

Insurance Expense
9,000
d.
Insurance Expense
3,000
Prepaid Insurance
9,000
Prepaid Insurance
The entry to record depreciation for the Building is:
a. Depreciation Expense
20,000
Accumulated Depreciation
20,000
b.
c.
d.

35.

c.
d.

38.
39.
40.
41.
42.

Depreciation Expense
Building

20,000

20,000
20,000

Depreciation Expense Building 20,000

Accumulated Depreciation Building

20,000

15,000

Depreciation Expense Equipment

Accumulated Depreciation - Equipment

15,000

Depreciation Expense
Accumulated Depreciation

15,000

Depreciation Expense Store Equipment

Store Equipment

The entry to record adjustment for Salary is:

a. Salaries Payable
2,250
Salaries Expense
2,250
b.

37.

20,000

The entry to record depreciation for the Store Equipment is:

a. Depreciation Expense Store Equipment
15,000
Accumulated Depreciation Store Equipment
b.

36.

Depreciation Expense - Building

Building

3,000

15,000
15,000
15,000
15,000
c.

Salaries Expense
2,250
Salaries Payable

Salaries Expense
2,250
d.
Salaries Expense
Accounts Payable
2,250
Notes Payable
The total amount of the adjustments (debit and credit) is:
a. P 47,250, debit; P 47,250, credit
c.
P 42,250, debit; P 42,250, credit
b. P 53,250, debit; P 53,250, credit
d. P 40,000, debit; P 40,000, credit
The adjusted amount of Supplies is:
a. P 9,000
c.
P 2,000
b. P 7,000
d. P 16,000
The adjusted amount of Prepaid Insurance is:
a. P 3,000
c.
P 9,000
b. P 12,000
d. P 21,000
The adjusted amount of Accumulated Depreciation Building is:
a. P 80,000
c.
P 60,000
b. P 100,000
d. P 20,000
The adjusted amount of Accumulated Depreciation Store Equipment is:
a. P 75,000
c.
P 90,000
b. P 15,000
d. P 60,000
The adjusted amount of Salaries Payable is:
a. P -0c.
P 2,250
b. P 4,250
d. P 4,500

2,250
2,250
2.250

43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.

The adjusted amount of Supplies Expense is:

a. P 9,000
c.
P 12,000
b. P 7,000
d. P 16,000
The adjusted amount of Insurance Expense is:
a. P 3,000
c.
P 9,000
b. P 12,000
d. P 2,000
The adjusted amount of Deprecation Expense Building is:
a. P 20,000
c.
P 80,000
b. P -0d. P 100,000
The adjusted amount of Deprecation Expense Store Equipment is:
a. P 75,000
c.
P -0b. P 90,000
d. P 15,000
The adjusted amount of Salaries Expense is:
a. P 210,000
c.
P 212,250
b. P 2,250
d. P 207,750
The Income Statement will show Net Sales of:
a. P 1,112,500
c.
P 6,000
b. P 1,118,500
d. P 1,106,500
The Income Statement will show Net Purchases of:
a. P 516,000
c.
P 520,000
b. P 521,000
d. P 534,000
The Income Statement will show Cost of Goods Available for Sale of:
a. P 517,500
c.
P 516,000
b. P 707,500
d. P 706,000
The Income Statement will show Cost of Goods Sold of:
a. P 707,500
c.
P 560,000
b. P 366,000
d. P 557,500
The Income Statement will show Gross Profit of:
a. P 549,000
c.
P 590,500
b. P 405,000
d. P 399,000
The Income Statement will show Operating Expenses of:
a. P 415,250
c.
P 362,000
b. P 416,750
d. P 408,250
The Income Statement will show Net Income of:
a. P 37,000
c.
P 181,750
b. P 133,750
d. P 227,000
The Balance Sheet will show Total Current Assets of:
a. P 370,000
c.
P 381,000
b. P 386,000
d. P 330,000
The Balance Sheet will show Total Non-current Assets of:
a. P 560,000
c.
P 595,000
b. P 580,000
d. P 700,000
The Balance Sheet will show Total Assets of:
a. P 930,000
c.
P 890,000
b. P 960,000
d. P 1,030,000
The Balance Sheet will show Total Liabilities of:
a. P 75,000
c.
P 72,750
b. P 77,250
d. P 27,250
The Balance Sheet will show Total Owners Equity of:
a. P 679,000
c.
P 812,750
b. P 716,000
d. P 860,750
The Balance Sheet will show Total Liabilities and Owners Equity of:
a. P 930,000
c.
P 791,000
b. P 960,000
d. P 890,000

Test II
1. Based on the following information, determine the amount of net income: Fees Income P38,000; Supplies
Expense P16,000; Salaries Expense P12,000; Miscellaneous Expense P7,000
2. Using the information in No. 1, determine the amount of net income or net loss if in addition to the listed items,
there was Accrued Expense of P5,000 and a personal withdrawal of the owner for P3,000.
3. The following were taken from an income statement. Fees Income P14,000; Rent Expense P2,000; Salaries
Expense P5,000; Miscellaneous Expense P1,000. If the owner withdrew P2,000 from the firm, by how much did
his capital increase or decrease? Indicate in your answer whether the amount represents an increase or a
decrease.
4. Based on the following, determine the capital as of December 31: Net Income for the period P18,000; Drawing
P6,000; Capital, January 1 P20,000.
5. From the following information, determine: (a) Total Current Assets (b) Total Assets and (c) Capital.

Cash P6,000; Accounts Receivable P3,000; Supplies P1,000; Equipment P14,000; Accumulated Depreciation
P200; Allowance for Doubtful Accounts P100; Notes Payable P2,500; Mortgage Payable P12,000.
6. The following were taken from the records: Assets, beg P86,500; Liabilities, end P48,440; Capital, beg P51,900;
Additional Investment P30,000; Withdrawal P5,600; Revenues P92,000; Expenses P77,000.
a. How much liabilities did the business have at the start of the year?
b. How much was owners equity at the end of the year?
c. How much assets did the business own at the end of the year?
7. A proprietors capital increased by P500,000. During the year, he made an additional investment of P225,000
but withdrew P12,800 worth of merchandise which were priced to sell for P17,000. Expenses incurred during
the period amounted to P1,352,050.
a. How much revenue was generated for the year?
b. What was the result of operations?

GOOD LUCK!!!