accounting 10ateneo lex1 chapter 3 short problems

Accounting 10 Ateneo Lex 1

Chapter 3

Short Problems


Short Problem 1

Solution:

Insurance Premium

Debit | Credit

3200 | 1600

1200 | 1500

P12100--> answer


Short Problem 2

Solution:Net Income 100,000Depreciation (2,000)Accounts Rec. 20,000Supplies 15,000Net Income, Dec. 31 P133,000 - Answer


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


Short Problem 4

Solution:Revenues 390,000Expenses 36,000

215,00078,000

(329000)Net Income P61,000


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


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:


Short Problem 7

Solution:

Cash Expense 75,000

Adj. Prepaid 900

Adj. Acc. Expense 3660

79560 -- Answer


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


Short Problem 9

Unearned Revenues

1,500,00015,000,000 7,200,0003,600,000

3600,000 - Answer

Solution:


Short Problem 10

Solution: 1500 15003200 160020003600 - Answer


Short Problem 11

Unearned Rent Accrued Rent

Revenue 3000

cash

4200

1800

Rev. Cash

2400

1500 3000

29400 (ANS) 30000

1800

Solution:


Short Problem 12

Solution:

Net Income 80,000Office Supplies (1,500)ServiceExpense 2,500Accrued Interest (4,500)

76,500 --> Answer


Short Problem13

Solution:

9000 x 3 = 450 --> Answer5 x 12


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)


Short Problem 15

Solution:Interest Exp. 20x2 = 80,000 x .10 = (3/12) = 2000 (ANS)


Short Problem 16

Solution:

80000 x .10 x (6/12) = 4,000 (ANS)


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


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



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)



Answer: P172,000

130,000

42,000

172,000 (ANS)



P249350 - ANS

P130000 - ANS



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


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

accounting 10ateneo lex1 chapter 3 short problems

Documents

answer slide

answer solution

ateneo lex12 short problem

ateneo lex7 short problem

ateneo lex4 short problem

ateneo lex9 short problem

ateneo lex10 short problem

ateneo lex3 short problem