Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
False 7.
True 8.
False 9.
False 10.
False 11.
False 12.
False 13.
False 14.
True 15.
False 16.
True 17,
True 18.
False 19.
P 30 000 Cr.
P 30 000 Dr.
P 90 000 Cr.
P 90 000 Dr.
Current assets
Current liabilities
Long term liabilities
Unearned revenue
Page 1 of 5
Art equipment
Computers
Land
Store fixtures
Interest Receivable
Office supplies
Prepaid rent
Service revenues
11. The
principal
difference
between
depreciation and most other types of
expense is that depreciation:
A. Can be avoided if the asset is in good
condition as when it was purchased.
B. Does not require an immediate cash
outlay
C. Is not deductible if it will cause a loss
D. Is
subject
to
more
precise
measurements
Customer discount
Purchases discount
Sales discount
Trade discount
A deferred expense
A deferred revenue
An accrued expense
An accrued revenue
going
Page 2 of 5
Comparability
Cost and benefit
Materiality
Timeliness
III.
PROBLEMS.
Comparability
Relevance
Neutrality
Understandability
Beg.
Accounts Receivable
340 000
580 000
A.
B.
C.
D.
Consistency
Materiality
Going concern
Stable monetary unit
Consistency
Faithful representation
Cost
Timeliness
440 000
XYZ
sells
one-year
and
two-year
subscriptions for its electronic book of the
month download business. Subscription are
collected in advance and credited to Sales. An
analysis of the recorded sales activity
revealed the following:
Sales
Less:
Cancellations
2013
P 420 000
2014
P 500 000
20 000
30 000
P 400 000
P 470 000
Subscription Expirations:
2013
P 120 000
2014
155 000
2015
125 000
2016
P 130 000
200 000
140 000
Page 3 of 5
Rental Receivable
Unearned Rental
2014
P 248 000
480 000
P1 600 000
( 192 000)
640 000
P2 048 000
248 000
( 480 000)
P1 816 000
Prepaid Expense
Beg
2013
P 192 000
640 000
Salaries Payable
P15 000
P 3 500
P15 000 *
32 000
P 18 700
16 000 **
18 000
20 000
P 2 800
End
P36 000
8.
2013 end
2014 end
Oct, end
Sept, end
P9 000
5 400
P3 000
Supplies
P1 500
P3 375
2 750
P 875
Page 4 of 5
Unearned Revenue
Liability Method:
P 6 000
Feb, end
Unearned revenue
Service revenue
P 42 000
P9 000
P9 000
43 500
Revenue Method
P 7 500
IV.
March, end
Service revenue
P27 000
Unearned revenue
P27 000
ADJUSTING ENTRIES
The following information
ENYUDYEYPIYA Company.
pertains
to
Supplies expense
Supplies
P7 000
P7 000
Insurance expense
Prepaid Insurance
P5 000**
P5 000
Expense Method:
Prepaid Insurance
Insurance Expense
P15 000
P15 000
Page 5 of 5