SUMMATIVE 4th
SUMMATIVE 4th
SUMMATIVE 4th
NAME:____________________________________________________________ DATE:__________________________
1. Which of the following will close the income summary account if revenues are greater than expenses?
a. crediting income summary and debiting retained earnings. .c debiting cash and crediting income summary.
b. debiting income summary and crediting retained earnings. d. debiting income summary and crediting summary.
4. Which of the following documents does not initiate an entry to be made in the accounts?
a. Sales invoice c. Purchase order
b. Purchase invoice d. Credit memorandum
6. Debits
a. increase assets and decrease expenses, liabilities, revenue, and equity.
b. increase assets and expenses and decrease liabilities, revenue and equity.
c. increase assets and equity and decrease liabilities, expenses and revenue.
d. decrease assets and expenses and increase liabilities, revenue and equity.
10. An accounting record into which the essential facts and figures in connection with all transactions are initially recorded is called
a. ledger. c. trial balance.
b. account. d. journal.
12. Which business paper below is prepared by an entity for every cash payment?
a. check c. journal
b. voucher d. official receipt
15. For sole proprietorship, the net income for the period is
a. credited to capital account. c. credited to drawing account.
b. debited to capital account. d. debited to drawing account.
8 __________________________
________________________
Purchase supplies inventory on account.
25 __________________________
________________________
Paid the account of Jan. 8.
31 __________________________
Cash
Paid rental for the month.
Mr. Eugenio Fernandez is a professional accountant. He ventured in a milling business to serve the needs of farmers in the rural areas of
Dipolog City. With a given chart of accounts, record in a two-column General Journal the transactions for the first month of operations April
2016.
April 1 Mr. Eugenion Fernandez invests cash of P100,000. He deposited the P99,000 in Land Bank and kept the P1,000 as the petty cash
fund to pay for small expenses. He also invests a Satake Rice Mill which includes installation cost worth P950,000 and Furniture
and Fixture amounting to P80,000 for a total investments of P1,130,000.
3 Purchased diesoline worth P15,000 on account from Caltex Philippines.
5 Paid licenses and business permits to the City Government, P2,800.
8 Paid for minor repairs, P500. This was taken from the Petty Cash Fund.
14 Received cash for milling services, P9,000.
18 Withdrew P8,000 cash for personal use.
20 Rendered milling services to Zamboanga Traders on account, P18,000.