BUKIDNON STATE UNIVERSITY
Malaybalay City, Bukidnon 8700
Tel (088) 813-5661 to 5663; TeleFax (088) 813-2717, www.buksu.edu.ph
MIDTERM EXAM
BACC 1 – BASIC ACCOUNTING
CAMPUS: KADINGILAN Semester S.Y: First , 2022-2023
____________________________________________________________________________________________
NAME: ____________________________________________ SECTION: ______________________
Identification. (3 points each)
___________________________ 1. Account title to describe money, either in paper or in coins and money substitutes
like checks, postal money orders bank drafts, etc.
___________________________ 2. Account title for a financial obligation of an enterprise that constitutes an oral or
verbal promise to pay.
___________________________ 3. Account title for expenses that are paid in advance but not yet incurred or have not
yet expired.
___________________________ 4. Expenses incurred by the enterprise but are not yet paid.
___________________________ 5. Allocated portion of the cost of property and equipment or fixed assets.
Multiple Choice. (2 points each)
________ 1. Account title “Drawings/Withdrawals” have a normal balance of
a. Debit b. Credit
________ 2. When cash is received, the account “Cash” will be
a. Debited b. Credited
________ 3. Credit means –
a. Increases both assets and liabilities c. Increases assets and decreases liabilities
b. Decreases both assets and liabilities d. Decreases assets and increases liabilities
________ 4. Debit means –
a. Increases both assets and liabilities c. Increases assets and decreases liabilities
b. Decreases both assets and liabilities d. Decreases assets and increases liabilities
________ 5. Unearned Income is what type of account
a. Asset c. Income
b. Liability d. Expense
________ 6. Which of the following is an Asset account?
a. Accounts Payable c. Prepaid Expense
b. Withdrawals d. Service Income
________ 7. A “contra-asset” account that is shown as a deduction from “Property, Plant & Equipment”
a. Depreciation Expense c. Estimated Uncollectible Accounts
b. Amortization Expense d. Accumulated Depreciation
________ 8. Decrease in Service Income should be –
a. Debited b. Credited
________ 9. Based on the equation A = L + OE, which of the following transactions where an asset is decreased and
liability is decreased.
a. Payment of salaries c. Payment made to a supplier
b. Investment to the business d. Receipt of payment for services performed on account
________ 10. Based on the equation A = L + OE, which of the following transactions where an asset is increased and
decreased at the same time.
a. Payment of salaries c. Payment made to a supplier
b. Investment to the business d. Receipt of payment for services performed on account
Short Problem. (5 points each) A= L+OE
1. At the beginning of the year, DJB Accounting Services had total assets of Php 700,000.00 and total liabilities of Php
500,000.00. During the year, the total assets had increased by Php 150,000 and total liabilities decreased by Php 80,000,
what is the amount of the owner’s equity at the end of the year? __________________
A= L+OE
700 = 500 + OE
700+150 = 500-80 + OE
850 – 420 = OE
OE = 430
2. The following account balances were taken from DJB Accounting Services:
Cash Php 750,000 Equipment Php 100,000
Accounts Receivable Php 40,000 DJB, Capital Php 500,000
Office Supplies Php 10,000
How much is the total liabilities? ____________________
A=L+E
900 = L + 500
900 – 500 = L
L = 400
3. XYZ Carpentry Services has the following items in its books:
Land ? XYZ, Capital Php 1,000,000
Plant & Equipment Php 600,000 Loans Php 500,000
Accounts Receivable Php 120,000 Accounts Payable Php 50,000
Cash Php 30,000
What is the value of the account “Land”? _________________
A=L+E
LAND + 750 = 550 + 1000
LAND = 1550 – 750
LAND = 800
BUKIDNON STATE UNIVERSITY
Malaybalay City, Bukidnon 8700
Tel (088) 813-5661 to 5663; TeleFax (088) 813-2717, www.buksu.edu.ph
4. Teptep & Tonio Agency has the following items in its books:
Commission Income Php 80,500 Depreciation Expense Php 6,500
Interest Income Php 13,250 Rent Expense Php 15,650
Service Income Php 71,000 Salaries Expense Php 25,500
How much is Net Income? _________________
5. Donna Bunayog had Php 200,000 owner’s equity in the business and during the year, the business incurred liabilities
amounting to Php 50,000. No other transactions given, how much is the total assets? ________________
Long Problem.
A. Helen L. Valdez, is engaged in the business of Chairs and Tables rental for all occasions. She needs your
assistance in recording her business transactions. Shown hereunder is a chart of accounts for you to use in
describing the exchanges of values.
Valdez Tables and Chairs
Chart of Accounts
Cash Accounts Payable Rental Income V, Capital
Accounts Receivable Loans Payable Salaries Expense V, Drawings
Tables and Chairs Rental Expense
The completed transactions for the month of December 2022 are as follows:
Dec 1 – She made the following investments: Cash Php 200,000
Dec 3 – Purchased Tables & Chairs on account for Php 150,000.
Dec 5 – Received cash for rental of tables and chairs Php 15,000.
Dec 8 – Tables and chairs rental on account Php 4,000.
Dec 13 – Paid space rental for the month Php 2,500.
Dec 17 – Withdrew cash of Php 20,000 to buy a computer for her personal use.
Dec 18 – Availed loans from the bank amounting Php 40,000.
Dec 20 – Partial collection from the rental made on Dec 8 Php 2,000.
Dec 30 – Paid the salaries for the Php 6,000.
Dec 31 – Paid the supplier of Tables and Chairs Php 100,000.
At the end of the year, how much are the following accounts (5 points each)
1. Cash = _____________ 4. Net Income = _____________
2. Accounts Receivable = _____________ 5. Total Assets = _____________
3. Total Liabilities = _____________ 6. Total Owner’s Equity = _____________
B. Prepare Trial Balance for H. Valdez Tables and Chairs. (10 points)
