101’st Accounting Fundamentals Quiz Bee

101’st AccountingFundamentals Quiz Bee

What is at stake? Winning Team – Perfect 30 on the quiz Plus 10% on the total score on the 1st long exam 2nd place - 27/30 plus 5 %

Round 1: “The Right Side”

The Right Side Mechanics Portion of a worksheet was excerpted and written in the front. 1.) One member of the team will put the right label or column title in the excerpted column of the worksheet. 2.) Four members will be blind folded. After worksheet template is prepared, she/he will pick an account title and walk to the front until he pin the account in the worksheet. 3.) The last member of the team will guide his/her teammate to pin the account in “the right side”

Pass the answer Round 2: Pass You!! I don’t know the answer! Then I’ll pass the question.

1.) Mr. Fat, the sole proprietor of the Taba Co. does not list his personal house on the statement of financial position of the company. What accounting concept is this? Business entity or separate entity concept

2.) The form of the Balance Sheet that list assets on the left hand side of the statement with liabilities and owner’s equity on the right hand side is referred as: Account Form

3.) A company has bought a land for 1 million in year 2008 but now the property has appreciated to P5 million. The company is recording the land at P1 million. What accounting concept is applied? Cost Principle

4.) This is the method of adjusting prepayments where in unused or unexpired portions is recorded on the adjusting entry. Expense method

5.) Journal entries made at the beginning of the next accounting period to simplify the recording of regular transactions on this period. Reversing entries

Round 3: “Adjust me”

1.) On August 1, 2012, IRH Co. collected 8 months’ rental payment of P142,000 in advance. The company debited cash and credited unearned rent. Adjusting entry has to be prepared on December 31, 2012. Adjusting entry will have a debit account and debit amount of?

Solution: Unearned Rent 88,750 Rent Revenue 88,750 (142,000/8months x 5) Note: Liability method is used

2.) Bautista Enterprise purchased an equipment costing P 50,000 on July 1, 2012. The Equipment has an estimated useful life of 10 years with an estimated salvage value of P5,000. The book value of equipment at the end of December 31, 2012 is?

Solution: Depreciation Expense 2,250 Accum. Depreciation 2,250 (50,000 – 5,000)/10 x 6/12 Equipment P 50,000 Accum. Depreciation 2,250 Book Value, 12/31/2012 P 47,750

3.) The beginning balance of the Store Supplies account for Sarah G. Enterprises is P 2,600. During the year, additional supplies were purchased for P 8,760 and were recorded by debiting the Store Supplies account. At the end of the year a physical inventory count indicates P 2,450 of supplies on hand. The adjusting entry on December 31 will have a credit account and credit amount of?

Solution: Supplies Expense 8,910 Store Supplies 8,910 (2,600 + 8,760 – 2,450) Note: Asset Method is used

4.) Chris Co. acquired an equipment costing P480,000 on January 13, 2012. The entity does not compute depreciation to the exact date. For depreciation purposes, fixed assets acquired during the first fifteen day of the month are considered as having been acquired at the beginning of the month. Fixed assets acquired from the sixteenth to the last day of the month are considered as having been acquired as the beginning of the following month. The equipment is being depreciated using straight-line method with estimated salvage value of P30,000 and useful life of five years. What is the accumulated depreciation balance on December 31, 2013 balance sheet?

Solution: Dec 31 2012 Adjusting entry: Depreciation Expense 90,000 Accumulated Depreciation 90,000 (480,000-30,000)/5 Dec 31, 2013 Adjusting entry: Depreciation Expense 90,000 Accumulated Depreciation 90,000 (480,000-30,000)/5 Total Accumulated Depreciation as of Dec. 31, 2013 is equal to P180,000

5.) ABC receives a 90-day 6% notes receivable from a client for the repair of a computer for P20,000 on July 17. ABC’s accounting period ends on September 30. Assuming interest is computed using 360 days how much is the accrued interest income?

Solution: July 17 - 31 = 14 days August 1 – 31 = 31 days Sept. 1 – 30 = 30 days 75 days Interest Receivable 250 Interest Revenue 250 (20,000 x 6% x 75/360)

-End- Thomas Edison says “ A piece of paper will not dictate my future” ………… But remember you are not Thomas Edison, a piece of paper will definitely affect your future. Come prepared in the 1st long exam.

101’st Accounting Fundamentals Quiz Bee