Reference no: EM133105593

Questions -

Q1. In your cash examination of ABC Co's. account, you discovered the following: (1) recording of P3,000 cash received from a customer for service rendered was recorded thrice; (2) footing in cash in bank account was overstated by P2,000; (3) cash payment made to a supplier in the amount of P5,000 was recorded at P8,000; (4) cash payment made to salaries of employees was erroneously charged to Drawing account, P40,000. If unadjusted cash in bank balances was P328,000, how much was the corrected balances of the said account?

Q2. Compute for the amount of additional investments or withdrawals during 2021. Enclose your answer in a ( ) if withdrawals.

DECEMBER 31, 2020

ASSETS = 620,000

LIABILITIES = 204,290

DECEMBER 31, 2021

ASSETS = 620,430

LIABILITIES = 280,288

DURING 2021:

ADDITIONAL INVESTMENT (WITHDRAWALS) = ?

PROFIT = 125,400

Q3. Which of the following transactions that do not change the total assets section of the balance sheet?

A. purchase of supplies inventory on account

B. withdrawal of cash by the owner

C. collection from customers account

D. payment of suppliers on account

Q4. Paying taxes to the government is an example of a _______ activity.

A. operating

B. investing

C. financing

D. none of the above

Q5. If the amount of profit for the current period is less than the amount of the owner's additional investment, there will be a(n)

A. decrease in the cash account

B. decrease in the owner's capital account

C. increase in liabilities

D. increase in the cash account

E. increase in the owner's capital account

Q6. Posting a P5,000 credit as a debit will cause a discrepancy on the total debits and credits by how much?