Professional Documents
Culture Documents
1. The company purchased inventories from its suppliers. Assuming the purchases were on account,
the entry would include
2. The sold inventories to its customers. Assuming the sales was made thru cash payment, the entry
to record the transaction would include,:
For numbers 3-5, consider the following details. Celestial Company rented its office building to
Heongyum Manufacturing Inc. The rent agreement calls for a monthly payment of P10,000 to be paid
to Celestial every last day of the month and will start on January 1, 2017.
3. Assuming Heongyum paid P30,000 as an advance rental on Jan. 1, 2017, the journal entry to
record this transaction under Celestials books would include
4. Assuming Heongyum paid P30,000 as an advance rental on Jan. 1, 2017, the adjusting journal
entry to record the rent as of January 31, 2017 under Celestials books would include
5. Assuming Heongyum paid P10,000 on January 31, 2017, the journal entry to record the rent as of
January 31, 2017 under Celestials books would include
A. Debit B. Credit
C. Both Debit and Credit D. None of the above
7. What is the normal balance of rent expense?
A. Debit B. Credit
C. Both Debit and Credit D. None of the above
For numbers 9-11, consider the following details. Taehwa Company purchased a machinery worth
P24,000,000 with a useful life of 15 years. The machinery has a salvage value of 10% of cost.
9. Assuming the machinery was bought January 1, 2017, what is the entry to record the purchase of
machinery on account?
10. Assuming Taehwa purchased the machinery on January 1, 2017, what is the depreciation expense
as of December 31, 2017?
A. P1,440,000 B. P1,540,000
C. P1,640,000 D. P1,740,000
11. Assuming Taehwa purchased the machinery on May 1, 2017, what is the depreciation expense as
of December 31, 2017?
A. P840,000 B. P600,000
C. P1,080,000 D. P960,000
A. Debit B. Credit
C. Both Debit and Credit D. None of the above
A. Debit B. Credit
C. Both Debit and Credit D. None of the above
For Numbers 14-16, consider the following details. Carrot Company purchased a printing machine
worth P7,500,000 with a useful life of 10 years. The machinery has a salvage value of 15% of cost.
14. Assuming the machinery was purchased on October 1, 2017, the entry to record the depreciation
on January 1, 2017 includes,
A. 425,000 B. 265,625
C. 318,750 D. 371,875
16. Assuming the machinery was purchased on July 31, 2017, what is the balance of accumulated
depreciation as of December 31, 2018?
A. 637,500 B. 743,750
C. 956,250 D. 903,125
A. Debit B. Credit
C. Both Debit and Credit D. None of the above
A. Debit B. Credit
C. Both Debit and Credit D. None of the above
For numbers 20-23, consider the following information. Tesla Corporation sold an automatic car to
Yieldwing Company for P3,000,000 on January 1, 2017 thru credit.
21. Assuming Yieldwings account has 5/10, n/30 credit term, the entry to record the collection on
January 6, 2017 would include
22. Assuming Yieldwings account has 5/10, n/30 credit term, the entry to record the collection on
January 14, 2017 would include
23. Assuming Yieldwings account has 5/10, n/30 credit term, the entry to record the collection on
February 13, 2017 would include
A. Debit B. Credit
C. Both Debit and Credit D. None of the Above
For numbers 26-29, consider the following information. Tesla Corporation purchased inventories
from Hyperion Company amounting to P5,000,000 on January 1, 2017 thru credit. Use periodic
inventory accounting.
27. Assuming Hyperion gave a credit term of 5/10, n/30 to Tesla Corporation, the entry to record the
payment on January 6, 2017 would include
28. Assuming Hyperion gave a credit term of 5/10, n/30 to Tesla Corporation, the entry to record the
payment on January 11, 2017 would include
29. Assuming Hyperion gave a credit term of 5/10, n/30 to Tesla Corporation, the entry to record the
payment on February 28, 2017 would include
A. Debit B. Credit
C. Both Debit and Credit D. None of the Above
31. Tesla Corporation sold an automatic car to Jupiter Corporation amounting P5,000,000. Jupiter
paid Tesla, P500,000 and the balance on before 60 days from the date of sale. The entry to
record this transaction includes
A. 18,000,000 B. 17,250,000
C. 16,500,000 D. 15,000,000
33. Company A borrowed P100,000,000 from Banco De Oro. The loan agreement calls for an
interest payment of 1.5% per month every 15th of the month. The loan was granted January 15,
2017. How much is the total interest payment for the loan as of December 31, 2017?
A. 18,000,000 B. 17,000,000
C. 16,500,000 D. 15,000,000
A. Debit B. Credit
C. Both Debit and Credit D. None of the Above
For numbers 35-37, consider the following information. Company A rented a building for as its
principal office. Under the rent agreement, he is required to pay the rent for a monthly rate of
P40,000. The rent shall start on January 1, 2017.
35. Assuming Company A paid its lessor P120,000 on January 1, 2017, what is the entry to record
the payment in Company As books?
36. Assuming Company A paid its lessor P120,000 on January 1, 2017, what is the adjusting journal
entry to record the adjustment on rent as of January 31, 2017?
37. Assuming Company A paid its lessor P120,000 on January 1, 2017, how much is the prepaid rent
balance as of February 28, 2017?
A. 120,000 B. 80,000
C. 60,000 D. 40,000