ASSESSMENT ACTIVITY (ANSWER KEY)
TRUE OR FALSE
1. The balance sheet is also known as the statement of financial position.
Answer: True
2. Worksheets include account titles, trial balance, adjusting entries, adjusted trial balance,
net income, and balance sheet.
Answer: True
3. The purchase of equipment is an example of a financing activity.
Answer: False (Investing Activity)
4. Depreciation Expense is found on the balance sheet.
Answer: False (Income Statement)
5. The worksheet is a type of accountant’s working paper.
Answer: True
MULTIPLE CHOICE
1. Which of the following types of information is not found in the financial statements?
a. Profits
b. Revenue
c. Selling prices
d. Assets
2. Which of the following is a cash inflow from financing activities?
a. Receipts from collections of notes receivable.
b. Receipts from interest on notes receivable.
c. Receipt from issuance of notes payable.
d. Receipt from sale of property and equipment.
3. Which column of the accounting work sheet show unadjusted amounts?
a. Trial Balance
b. Adjustments
c. Income Statement
d. Balance Sheet
4. Which situation indicates a loss on the income statement?
a. Total debits equals total credits
b. Total credits exceed total debits
c. Total debits exceed total credits
d. None of the above
PROBLEM
Worksheet Extensions
Classify each of the accounts listed below as assets (A), liabilities (L), owner’s equity (OE),
revenue (R), or expense (E). Indicate the normal debit or credit balance of each account. Indicate
whether each account will appear in the Income Statement columns (I) or the Balance Sheet
columns (B) of the worksheet.
Account
Classification
Normal Balance
Income Statement or
Balance
Sheet
Columns
Example: Rent Expense
E
Debit
I
A
Debit
B
b. Depreciation Expense- E
C. eqpt.
Debit
I
c. Accounts Payable
L
Credit
B
d. Supplies
A
Debit
B
e. Computer Equipment
A
Debit
B
Credit
B
g. Accum. Depreciation- A
C. Eqpt.
Credit
B
h. Christopher
Withdrawals
Debit
B
a. Accounts Receivable
f. Christopher
Capital
Biore, OE
Biore, OE
i. Consulting Revenues
R
Credit
B
j. Prepaid Insurance
L
Credit
I
Worksheet Preparation
The May 31, 2019 trial balance Rosalina Besario Surveyors is presented as follows:
Rosalina Besario Surveyors
Trial Balance
May 31, 2019
Cash
Accounts Receivable
Prepaid Expense
Supplies
Equipment
Acc Depreciation – Equipment
Accounts Payable
Unearned Revenues
Notes Payable
Besario, Capital
Besario, Withdrawals
Service Revenues
Salaries Expense
Rent Expense
Insurance Expense
Utilities Expense
Miscellaneous Expense
TOTALS
P210,000
930,000
360,000
270,000
1,890,000
P640,000
190,000
120,000
500,000
1,120,000
700,000
6,510,000
3,270,000
960,000
250,000
160,000
80,000
P9,080,000
P9,080,000
The following information pertaining to the year-end adjustments is available:
a. The 360,000 prepaid expense represents expenditure made on January 1, 2019 for monthly
advertising over the next 18 months.
Advertising Expense
P100,000
Prepaid Expense
P100,000
b. A count of the supplies at May 31, 2019 amounted to P90,000.
Supplies Expense
P180,000
Supplies
P180,000
c. Depreciation on equipment amounted to P160,000.
Depreciation Expense
P160,000
Acc. Depreciation
P160,000
d. One third of the unearned revenues has been earned at year end.
Unearned Revenue
P40,000
Service Revenue
P40,000
e. At year end, salaries in amount of P140,000 have accrued.
Salaries Expense
P140,000
Acc. Salaries Payable
P140,000
f. Interest of P60,000 on the notes payable has accrued at year end.
Interest Expense
P60,000
Acc. Interest Payable
P60,000
Required: Prepare the adjustments on the worksheet and complete the worksheet.