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TUTORIAL 2
Topic 4: Completing the Accounting Cycle
Deadline: 19/10/2016
Instruction: Answers need to be hand-written
PART A 20 MCQ
1. How do the adjusting entries differ from other journal entries?
A. Adjusting entries always include debits or credits to at least one income statement
account and at least one balance sheet account
B. Adjusting entries are made only at the end of the period
C. Adjusting entries never affect the amount of cash
D. All of the above are true
Non-current liability
Non-current asset
Current liability
Current asset
Service Revenue.
Supplies.
Prepaid Insurance.
Accumulated DepreciationEquipment.
10. Which of the following statements about the accrual basis of accounting is false?
A. Events that change a companys financial statements are recorded in the periods in which
the events occur.
B. Revenue is recognized in the period in which it is earned.
C. This basis is in accord with generally accepted accounting principles.
D. Revenue is recorded only when cash is received, and expense is recorded only when cash
is paid.
11. The trial balance shows Supplies RM1,350 and Supplies Expense RM0. If RM600 of
supplies are on hand at the end of the period, the adjusting entry is:
A. Supplies RM600
Supplies Expense RM600
B. Supplies RM750
Supplies Expense RM750
C. Supplies Expense RM750
Supplies
RM750
D. Supplies Expense RM600
Supplies
RM600
12. On 1 August 2013, Sentra Sdn Bhd paid RM72,000 cash for six-months rent. The balance in
the prepaid rent on 31 December 2013 after adjustment would be:
A.
B.
C.
D.
RM12,000
RM18,000
RM24,000
RM36,000
13. Salaries Payable was RM7,000 at the end of October and RM5,600 at the end of November.
Wages Expense for November was RM40,000. How much cash was paid for wages during
November?
A.
B.
C.
D.
RM27,400
RM38,600
RM41,400
RM52,600
14. Nobita Enterprise rented a portion of its store to Juju Partners for eight months beginning on
1 October, 2014. Juju Partners paid the entire rent of RM12,800 cash on October 1, which
Nobita Enterprise recorded as unearned revenue. The adjusting entry made by Nobita
Enterprise at year-end on 31December, 2014 would include:
A. a debit to Rent Earned for RM4,800
B. a credit to Unearned Rent for RM4,800
C. a credit to Rent Earned for RM4,800
15. The balance in the unearned rent account for Pipit Enterprise as of 31 December 2012 is
RM2,400. If Pipit Enterprise failed to record the adjusting entry for RM1,200 of rent earned
during December 2012, the effect on the Statement of Financial Position and Statement of
Profit or Loss and Other Comprehensive Income for the month of December 2012 is:
A. liabilities overstated RM1,200 and net income understated RM1,200
B. assets understated RM1,200 and net income overstated RM1,200
C. liabilities understated RM1,200 and net income understated RM1,200
D. liabilities overstated RM1,200 and net income overstated RM1,200
Use the following information for questions 16 to 20:
The normal balances extracted from the Adjusted Trial Balance for Zazagabor Enterprise for the
period ended 31 December 2014:
Accounts
Equipment
Accumulated Depreciation Equipment
Supplies
Account Receivable
Cash
Account Payable
Note Payable
Unearned Revenue
Salaries Payable
Capital
Drawings
Revenue
Salaries Expense
Insurance Expense
Interest Expense
Depreciation Expense
Supplies Expense
Miscellaneous Expense
RM
446,250
131,250
5,000
311,250
300,000
110,000
231,250
70,000
26,250
525,000
70,000
353,000
136,500
61,250
5,250
21,875
43,750
45,625
16. Determine the profit or loss for Zazagabor Enterprise for the period ended 31 December
2014?
A.
B.
C.
D.
RM12,500 profit
RM82,500 profit
RM38,750 profit
RM31,250 loss
RM446,250
RM577,500
RM293,125
RM315,000
18. What is the total liability for Zazagabor Enterprise as at 31 December 2014?
A.
B.
C.
D.
RM437,500
RM931,250
RM962,500
RM667,250
19. What is the total asset for Zazagabor Enterprise as at 31 December 2014?
A.
B.
C.
D.
RM616,250
RM931,250
RM1,246,250
RM1,263,750
20. The capital account in Post-closing Trial Balance as at 31 December 2014 show:
A.
B.
C.
D.
RM493,750
RM525,000
RM455,000
none of the above
TUTORIAL 2
6.
11.
16.
7.
12
.
13
.
14
.
15
.
17.
8.
9.
10.
18.
19.
20.
1: JOURNALIZING
DESCRIPTION
a.
b.
c.
d.
e.
f.
g.
DEBIT
CREDIT
Debit (RM)
Credit (RM)