Central Mindanao University

University Town, Musuan, E. Innovative Designs, owned by Edman Flores, has been
Maramag Bukidnon operating for two years. A series of transactions for the first
1st Posttest in Accounting Essentials, Lab month in the third year were given to you. For each
transaction, indicate the accounts that should be debited or
General Instructions: credited. If no journal entry is required, write “n/a” in the
i. This exam is only good for 1 hour. columns. Use the following account titles: Cash; Accounts
ii. Follow the instructions stated in each part of the exam. Receivable; Supplies; Prepaid Expenses; Equipment;
iii. Write final answers visibly at a 1 whole sheet of paper. Patents; Accounts Payable; Notes Payable; Salaries
Use as many papers as necessary. Payable; Flores, Capital; Flores, Withdrawals; Service
iv. STRICTLY NO WRITING ON THIS Revenues, Salaries Expense, Supplies Expense, Utilities
QUESTIONNAIRE. Expense, and Interest Expense.
Transactions Debit Credit
Test I. Provide the answer. 41. Purchased equipment for use in the
A. Identify whether normal balances of the items listed business; paid one-third cash and
below are debits or credits: gave note payable for the balance. ______ ______
1. Inventory 42. Paid cash for salaries. ______ ______
2. Service income 43. Collected cash for services
3. Prepaid rent performed this period. ______ ______
4. Owner’s capital 44. Collected cash for services
5. Accounts payable performed last period. ______ ______
6. Accumulated depreciation 45. Performed services this period on
7. Owner’s Drawing credit ______ ______
8. Rent payable 46. Incurred utilities expense this
9. Land period to be paid next period. ______ ______
10. Advertising Expense 47. Purchased supplies for inventory to
be used later; paid cash. ______ ______
B. Identify whether the changes in the accounts listed 48. Purchased a patent (an intangible)
hereunder are debits or credits: in cash. ______ ______
11. Cash received 49. Made a payment on the equipment
12. Owner’s capital received note in (a); the payment was part
13. Accounts payable paid principal and part interest expense. ______ ______
14. Miscellaneous expenses paid 50. On the last day of current period,
15. Interest income earned paid cash for an insurance policy
16. Bank loans paid covering the next twelve months. ______ ______
17. Medicare payable paid
18. Office supplies used Test II. Classification of Accounts. The following ledger
19. Notes receivable collected accounts are used by Elizabeth Figueroa Tutorials:
20. Office furniture acquired 51. Cash
52. Salaries Expense
C. Indicate the missing amount. 53. Accounts Receivable
Assets Liabilities Owner’s 54. Figueroa, Capital
Equity 55. Supplies Expense
21. P 1,200,000 P 990,000 ___________ 56. Prepaid insurance
22. 110,000 40,000 ___________ 57. Utilities Expense
23. 3,600,000 ___________ 2,180,000 58. Service Revenues
24. ___________ 490,000 840,000 59. Figueroa, Withdrawals
25. 400,000 114,110 ___________ 60. Salaries Payable
26. 1,250,000 ___________ 1,198,450 61. Unearned Revenues
27. ___________ 397,625 245,155 62. Office Equipment
28. 671,200 ___________ 396,198 63. Notes receivable
29. ___________ 442,000 799,000 64. Interest expense
30. 1,025,177 367,496 ___________ 65. Notes Payable
66. Supplies
67. Interest Receivable
D. Indicate whether each of the above transactions is a source
68. Rent Expense
of assets (SA), use of assets (UA), exchange of assets (EA)
69. Accumulated Depreciation
or exchange of claims (EC) transaction.
70. Depreciation Expense
31. Purchase of inventory on account.
Required: Indicate each account’s classification and normal
32. Received billing for the electricity usage of the month.
balance by placing (/) marks. Follow this format:
33. Paid salaries from the previous month. Type of Account Normal Balance
34. Acquired equipment on account. Asset Liability Owner’s Equity
35. Invested cash on long-term deposits. Figueroa, Figueroa, Revenue Expense Debit Credit
36. Cash investment in the business. Capital Withdrawal

37. Payment of rent. 51.

38. Rendered services to customers who paid in advance.

39. Issued notes to pay an account already due.
40. Paid cash the tuition fee of the son of the owner.