Mindanao State University

COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY

DEPARTMENT OF ACCOUNTANCY
Marawi City

SUMMER BRIDGING PROGRAM

First Mock Qualifying Examination

GENERAL INSTRUCTIONS: Before proceeding to the examination proper, read and understand the following instructions:

1. This qualifying examination consists of two (2) parts. Part 1 consists of non-multiple choice questions, while Part II consists multiple choice questions.

2. Answer sheets are provided for both parts. All answers must be written on these answer sheets, otherwise no credit shall be given to the examinee.

3. Erasure is strictly prohibited for Part II but not in Part I.

4. Use of any gadget, except calculator, is strictly prohibited.

5. Each part or problem may have specific instructions, which must be strictly followed.

6. Finally, this is a 4-hour examination. Your time starts now.

THIS IS THE EXAMINATION PROPER. YOU MAY START ANSWERING.

PART I. This part of the examination consists of several independent problems. Each problem has requirement(s), which an examinee must satisfy. Write your answers on
the answer sheets, orderly and neatly, to earn credit. You can make use of the back pages of this questionnaire for your computations. Use black or blue ink only.

PROBLEM 1. For each of the following transactions,

(1) Identify whether business transaction or not by writing B if business transaction or N if non-business transaction on COLUMN 1;

(2) Identify the specific accounts affected by writing the specific accounts on COLUMN 2;

(3) Classify the accounts affected whether Asset, Liability, Capital, Drawing , Revenue or Expense by writing A, L, C,W, R or E opposite every account. Use COLUMN 3;

(4) Identify the effect of the transaction to the specific accounts affected whether Increase or Decrease by writing INC for increase or DEC for decrease on COLUMN 4;

(5) Applying the rules of debit and credit, determine whether the specific accounts affected shall be debited or credited by writing DR for debit and CR for credit, Use
COLUMN 5.

The chart of accounts includes the following:

ASSETS : Cash; Accounts Receivable; Shop Supplies; Office Equipment; Tools;

Truck
LIABILITIES : Accounts Payable
OWNER’S EQUITY : Roces, Capital; Roces Drawing;
REVENUES : Service Income;
EXPENSES : Rent Expense; Wages Expense, Utilities Expense

TRANSACTIONS (1) (2) (3) (4) (5)

S. Roces opened an air-conditioning service and repair shop and began Cash A INC DR
business by investing P50,000 cash and the following additional assets:
Office Equipment A INC DR
Office equipment, P35,000; tools, P6,500; truck, P105,000.
B Tools A INC DR
Truck A INC DR
Roces, Capital C INC CR
Paid the rent of the shop space, P4,000. Rent expense E INC DR
B
Cash A DEC CR
Employed Thanos as shop assistant
N

Purchased P1,000 of shop supplies on credit from A. Fuentes. Shop supplies A INC DR
B
Accounts Payable L INC CR
Purchased shop supplies from L. Salvador, P1,500, cash Shop supplies A INC DR
B
Cash A DEC CR
Completed repair work for S. Valdez and received P1,500 cash. Cash A INC DR
B
Service income R INC CR
Paid one-half of the account due to A. Fuentes. Accounts payable L DEC DR
B
Cash A DEC CR
Paid shop assistant, P2,000, for services rendered Wages expense E INC DR
B
Cash A DEC CR
Paid light and water for the month, P500. Utilities expense E INC DR
B Cash A DEC CR

Completed repair work for J. Estrada on credit, P1,500. Accounts receivable A INC DR
B
Service income R INC CR
Withdrew P1,000 from the business. Roces, Drawing W INC DR
B
Cash A DEC CR
Received P800 from J. Estrada in partial payment of his account. Cash A INC DR
B
Accounts receivable A DEC CR
PROBLEM 2. Using the journal below, journalized the transactions of S. Roces in Problem 1

SR AIR CONDITIONING SERVICE AND REPAIR SHOP

General Journal
Page 1

DATE PARTICULARS PR DEBIT CREDIT

2023
Feb 1 Cash 50,000
Office equipment 35,000
Tools 6,500
Truck 105,000
Roces, capital 196,500
Initial investment

2 Rent expense 4,000

Cash 4,000
Payment of rent

3 NO ENTRY

4 Shop supplies 1,000

Accounts payable 1,000
Purchase of supplies

5 Shop supplies 1,500

Cash 1,500
Purchase of supplies
 Page 2

2023
Feb 6 Cash 1,500
Service income 1,500
Revenue recognized

7 Accounts payable 500

Cash 500
Payment of liability

8 Wages expense 2,000

Cash 2,000
Payment of wages

9 Utilities expense 500

Cash 500
Payment of utilities

10 Accounts receivable 1,500

Service revenue 1,500
Revenue on account

11 Roces, drawings 1,000

Cash 1,000
Withdrawals

12 Cash 800
Accounts receivable 800
Collection

13
PROBLEM 3. Given below are the T-Accounts of METALICOP VULCANIZING
SHOP for April 2024.

CASH SHOP FURNITURE

4/1 200,000 4/1 10,000 4/1 5,000
4/8 15,000 4/3 122,000
4/15 20,000 4/3 10,000
4/22 25,000 4/10 5,000
4/28 20,000 4/15 15.000
4/30 100,000 4/20 5,000
METALICOP, CAPITAL
4/30 5,000
4/1 200,000
4/30 20,000
4/1 5,000
4/30 4,000
4/30 12,000

SHOP SUPPLIES ON HAND

4/3 10,000
SHOP EQUIPMENTS 4/10 5,000
4/3 122,000 4/20 5,000
4/30 5,000

RENT EXPENSE
4/1 10,000 UTILITY EXPENSE
4/30 4,000

WAGES EXPENSE
4/15 15,000 METALICOP, DRAWINGS
4/30 20,000 4/30 12,000

LOAN PAYABLE
4/30 100,000
VULCANIZING INCOME
4/8 15,000
4/15 20,000
4/22 25,000
4/28 20,000
ACCOUNTS RECEIVABLE 4/30 3,000
4/30 3,000

Based on the above T-accounts, prepare the preliminary trial balance of Metalicop Vulcanizing
Shop. Use the provided YELLOW PAPER
 METALICOP VULCANIZING SHOP
Preliminary Trial Balance
April 2024

DEBIT CREDIT
Cash P 172,000
Accounts receivable 3,000
Shop supplies on hand 25,000
Shop furniture 5,000
Shop equipment 122,000
Loan payable P 100,000
Metalicop, Capital 205,000
Metalicop, Drawing 12,000
Vulcanizing income 83,000
Rent expense 10,000
Wages expense 35,000
Utility expense 4,000
TOTAL P 388,000 P 388,000
PROBLEM 4. On the basis of the following incomplete ADJUSTED trial balance of GOLDMINE
SHOP, prepare the following financial statements (all in good form). Use yellow pad. One yellow, one
requirement rule shall be followed.
1. Statement of Operations
2. Statement of Owner’s Equity
3. Statement of Financial Position
4. Post-closing trial balance

GOLDMINE SHOP
Final Trial Balance
31 December 2024

Cash P ?
Accounts Receivable 20,000
Supplies 5,000
Shop Equipments 150,000
Accumulated depreciation- Shop Equipments 15,000
Furniture and Fixtures 50,000
Accumulated depreciation- Furniture and Fixtures 5,000
Accounts Payable P 32,000
Loan Payable 100,000
Goldie, Capital 100,000
Goldie, Withdrawal 10,000
Laundry Income ?
Depreciation Expense 20,000
Utilities Expense 15,000
Interest Expense 12,000
Postage, Telephone and Telegraph 5,000
Miscellaneous Expense 20,000
Total P ? P 387,000
ANSWERS

GOLDMINE SHOP

Income Statement

December 31, 2024

Laundry Income P 135,000

Less: Expenses
Depreciation Expense P 20,000
Utilities Expense 15,000
Interest Expense 12,000
Postage, Telephone, and Telegraph 5,000
Miscellaneous Expense 20,000 72,000
Net income P 63,000

GOLDMINE SHOP

Statement of Changes in Owner’s Equity

December 31, 2024

Goldie, Beginning Capital P100,000

Add: Net Income 63,000

Total P 163,000

Less: Goldie, Drawings 10,000

Goldie, Ending Capital P 153,000

 GOLDMINE SHOP

Balance Sheet

December 31, 2024

ASSETS

Current Assets

Cash P 80,000
Accounts receivable 20,000
Supplies 5,000 P 105,000
Non-current Assets

Shop Equipment P 150,000

Less: Accumulated Depreciation 15,000 P 135,000
Furniture and Fixtures P 50,000
Less: Accumulated Depreciation 5,000 45,000 180,000
TOTAL ASSETS P 285,000

LIABILITIES

Current Liability
Accounts Payable P 32,000
Non-current Liability
Loans Payable 100,000 P 132,000

OWNER’S EQUITY
Goldie, Capital 153,000
TOTAL LIABILITIES AND OWNER’S EQUITY P 285,000
 GOLDMINE SHOP
Post-Closing Trial Balance
December 31, 2024

DEBIT CREDIT
Cash P 80,000
Accounts receivable 20,000
Supplies 5,000
Shop equipment 150,000
Accumulated depreciation - Shop
P 15,000
equipment
Furniture and fixtures 50,000
Accumulated depreciation – Furniture and
5,000
fixtures
Accounts payable 32,000
Loan payable 100,000
Goldie, capital 153,000
TOTAL P 305,000 P 305,000

PROBLEM 5. The following adjusting journal entries were prepared by AVENGERS

ENTERPRISES at year end. On the space opposite every entry, indicate (by writing YES or NO)
whether or not such entry is reversed in the succeeding accounting period.

NO. PARTICULAR DR CR YES/NO

1. Bad Debts Expense 1,000
NO
Allowance for Bad Debts 1,000

2. Depreciation Expense 2,500

NO
Accumulated Depreciation-Building 2,500

3. Interest Expense 500

YES
Accrued Interest Payable 500

4. Accrued Interest Receivable 1,500

YES
Interest Income 1,500

5. Rent Expense 5,000

NO
Prepaid Rent 5,000

6. Prepaid Insurance 600

YES
Insurance Expense 600

7. Interest Income 1,500

YES
Unearned Interest Income 1,500
 8. Unearned Interest Income 1,500
NO
Interest Income 1,500

PART II. This is a multiple choice type of examination. On the answer sheet, write the letter
corresponding to your answer. Use black or blue ink only. Make use of the back pages of this
questionnaire for any computation. Erasure is strictly NOT ALLOWED.

1. The art of recording and communicating financial information of a business entity

a. Bookkeeping
b. Accounting
c. Journalizing
d. None of the above
2. A chronological recording of business transactions
a. Internal auditing
b. Bookkeeping
c. Budgeting
d. None of the above
3. A business entity owned by one person
a. Sole proprietorship
b. Partnership
c. Corporation
d. None of the above
4. A business entity which deals with rendering of services
a. Single proprietorship
b. Service concern
c. Manufacturing
d. None of the above
5. A business entity that deals with buying and selling of goods
a. Service concern
b. Manufacturing
c. Merchandising
d. None of the above
6. A business entity that deals with the production of finished goods
a. Service concern
b. Merchandising
c. Manufacturing
d. None of the above
7. Exchange of goods and services for value
a. Bookkeeping
b. Journalizing
c. Transactions
d. None of the above
8. Business obligation
a. Asset
b. Liability
c. Capital
d. None of the above
9. Asset which can be converted into cash within a short period of time, usually one year
a. Current asset
b. Non-current asset
c. Properties and equipment
d. None of the above
10. Rights or properties owned by the business
a. Asset
b. Liability
c. Capital
d. None of the above
11. Owner’s equity
a. Asset
b. Liability
c. Capital
d. None of the above
12. An example of current asset
a. Prepaid expense
b. Land
c. Cash withheld for future use
d. None of the above
13. An example of fixed asset
a. Prepaid expense
b. Land
c. Cash withheld for future use
d. None of the above
14. Obligations which are due within one year
a. Properties and equipment
b. Current liability
c. Long-term liability
d. None of the above
15. Obligations which mature beyond one year
a. Properties and equipment
b. Current liability
c. Noncurrent liability
d. None of the above
16. An example of current liability
a. Bank loan payable within five years
b. Accrued salaries
c. Bonds payable
d. None of the above
17. The term equities refer to
a. Creditor’s equity only
b. Owner’s equity only
c. Sources of assets
d. None of the above
18. Promissory notes sent to creditors is an example of
a. Asset
b. Liability
c. Capital
d. None of the above
19. Unused supplies is an example of
a. Asset
b. Liability
c. Capital
d. None of the above
20. Accrued interest income is an example of
a. Asset
b. Liability
c. Capital
d. None of the above
21. The purpose of closing entries is to
a. Clear the accounts with debit balances
b. Determine the revenues of the period
c. Clear the temporary accounts
d. None of the above
22. If a business operates at a loss during the period the owner’s capital would
a. Be decreased
b. Be increased
 c. Not be affected
d. None of the above
23. Which of the following accounts has a zero balance in the ledger after posting the
closing entries
a. Owner’s capital
b. Asset
c. Owner’s withdrawal
d. None of the above
24. A post-closing trial balance does not include
a. Assets
b. Liabilities
c. Owner’s withdrawal
d. None of the above
25. An example of contra account
a. Salaries payable
b. Accumulated depreciation
c. Owner’s withdrawal
d. None of the above
26. Temporary accounts refers to
a. Contra accounts
b. Asset accounts
c. Revenues, expenses, and drawing accounts
d. None of the above
27. Entries made for convenience and consistency in handling accrued and deferred items
a. Journal entries
b. Adjusting entries
c. Reversing entries
d. None of the above
28. Which of the following items needs to be reserved
a. Accrued expense
b. Depreciation of fixed asset
c. Estimated loss on doubtful account
d. None of the above
29. Which of the following need not be reversed
a. Accrued income
b. Unearned income (liability method)
c. Unearned income (income method)
d. None of the above
30. The income statement provides information about
a. the results of the business operations
b. the resources acquired by the firm, including where the resources come from
c. the functioning of the accounting system
d. none of the above
31. The balance sheet provides information about
a. the results of the business operations
b. the resources acquired by the firm, including where the resources come from
c. the functioning of the accounting system
d. none of the above
32. What financial statements are prepared as of the end of the accounting period
a. income statement only
b. balance sheet and statement of owner’s capital only
c. income statement, balance sheet, and statement of owner’s capital
d. none of the above
33. Which of the following items would not have effect on the income statement
a. revenue from service rendered
b. salary expense
 c. drawings made by the owner
d. none of the above
34. The normal reporting practice in the balance sheet for an asset such as delivery equipment
is to
a. subtract the accumulated depreciation from the cost of the asset
b. add the accumulated depreciation to the cost of the asset
c. report only the cost of the asset
d. none of the above
35. The sources of the firm’s assets are reported on the
a. income statement
b. statement of the owner’s capital
c. balance sheet
d. none of the above
36. The balance sheet shows
a. the accumulated revenues and expenses
b. the change in the owner’s equity
c. the list of all the assets of the firm
d. none of the above
37. An item not usually found on the balance sheet
a. accounts receivable
b. allowance for bad debt
c. interest expense
d. none of the above
38. The sources of assets presented on a balance sheet are
a. capital only
b. liabilities only
c. liabilities and capital
d. none of the above
39. The income statement can be presented in
a. single-step form
b. multiple-step form
c. either a or b
d. none of the above
40. The balance sheet can be presented in
a. account form
b. report form
c. either a or b
d. none of the above
41. The internal control feature specific to petty cash is called
a. Separation of duties.
b. Imprest Fund System.
c. Proper authorization.
d. Imprest System.
42. A bank reconciliation is
a. a formal financial statement that lists all of the bank account balances of an entity.
b. a merger of two banks that previously were competitors
c. a statement sent by the bank to a depositor on a monthly basis.
d. a schedule that accounts for the differences between an entity’s cash balance as shown
in the bank statement and the cash balance shown in the general ledger.
43. In preparing a monthly bank reconciliation, which of the following would be added to the
balance per bank statement to arrive at the correct cash balance?
a. Outstanding checks
 b. Bank service charge
c. Deposits in transit
d. A customer’s note collected by the bank on behalf of the depositor
44. A kind of bank deposit where the depositor is given a passbook upon initial deposit, which
is required when making deposits and withdrawals.
a. Demand deposit
b. Savings deposit
c. Time deposit
d. Current account
45. A party in a check document which the maker directed to pay the payee. It usually has
custody over the maker’s cash.
a. Drawee
b. Drawer
c. Payee
d. Maker
46. Which of the following is not a debit memo?
a. Bank service charge
b. No Sufficient Fund (NSF) check
c. Maturing bank loans directly deducted by the bank from the depositor entity’s bank
account
d. Receivable of the depositor entity collected by the bank on its behalf
47. These are checks already recorded by the depositor as cash disbursements but not yet
reflected on the bank statement.
a. Certified checks
b. Post-dated checks
c. Outstanding checks
d. Cross checks
48. Which of the following shall be deducted from the cash in bank per ledger to get the
correct or adjusted cash in bank balance?
a. Note receivable collected by the bank on behalf of the depositor entity
b. Proceed of loan granted by the bank to the depositor entity
c. Bank service charge
d. None of the above
49. A check that is not encashed within a reasonable time.
a. Post-dated check
b. Stale check
c. NSF check
d. Cross check

On June 30, 2024, JPIA Company received a bank statement from its bank showing a balance of
P4,350,000 as of that date. The Company would like to seek your help in determining the adjusted
cash in bank balance and provided to you the following information:
Bank service charge P 16,000
Deposits in transit 250,000
Proceeds from the bank loan granted to the Company 1,200,000
Outstanding checks, including P50,000 certified checks 400,000

50. How much is the adjusted cash in balance on June 30, 2024?
a. P4,250,000
b. P4,200,000
c. P5,434,000
d. P5,534,000

JPIA Company provided the following information:

Balance per bank statement, July 31 P 1,240,000
Balance per ledger, July 31 750,000
Deposit of July 30 not recorded by bank 280,000
Debit memo – service charges 110,000
Credit memo – collection of note by bank for JPIA 330,000
Outstanding checks 550,000

51. How much is the adjusted cash in bank balance on July 31?
a. P1,460,000
b. P970,000
c. P690,000
d. P530,00

52. The cashier of Unitop mall rounded off the following sales to the nearest peso: ₱ 134.67,
₱ 121.22, ₱ 76.89, ₱ 12.12, and ₱ 37.19. How much is the total sales?
A. ₱282 C. ₱292
B. ₱382 D. ₱213
53. Mr. Beazar went to Manila for his oath taking. He spent the following amounts; ₱230 for
food, ₱700 for hotel accommodation, ₱187 for entertainment. How much did he have left
from his ₱1,500?
A. ₱173 C. ₱330
B. ₱283. D. ₱383
1
54. Ayala corporation owned 8of the capital stocks of Grace Pharmacy. If Ayala corporation
1
acquired an additional 5 of the capital stocks of Grace pharmacy, what part of the capital
stocks of Grace Pharmacy will be owned by Ayala corporation?
A. 32.5% C. ¼
B. 2/3 D. 50%
2
55. A grocery store owner bought a box of fish with a weight of 45 3kgs. Later, he had the
fish repacked into ½ kg per bag. How many bags were filled?
A. 81 bags C. 25 bags
B. 274 bags D. 91.3 bags
56. Rayyan, a student residing in MSU, consumes ¼ kg of rice everyday. If his parent gave
him 10kg of rice, how long will the 10 kg last for his daily consumption?
A. 41 weeks C. 2 months
B. 40 days D. 40 weeks
57. Hamad receives his daily allowance from his parents. In this week, he received ₱245 on
Monday, ₱20 on Tuesday, none on Wednesday, ₱45 on Thursday, and ₱50 on Friday.
What is the average daily allowance did he receive from Monday to Friday?
A. ₱360 pesos C. ₱72 pesos
B. ₱90 pesos D. ₱51 pesos
58. Abubacar sold 40 sacks of rice at an average price of 1500 pesos. He received 40,000
pesos for 20 of them. At what price did he sell each of the last 20 sacks?
A. 1,200 pesos C. 1000 dollars
B. 1,100 pesos D. 1,000 pesos
59. In one district, the survey showed that out of 623,506 voters, 43.45% were females. How
many were male voters?
A. 352,583 C. 270,913
B. 352,593 D. 423,506

60. Maricar laundry shop received ₱125,000 from bank loan. Maricar spent 25.2% of it for
washing machine, 30.5% for furniture, and 16.82% for the window glass. How much is
left from the loan?
A. ₱12,420 C. ₱34,350
B. ₱47,120 D. ₱44,340
61. A refrigerator manufacturer sold 3,400 units, 34% of which were returned due to factory
defect. How many refrigerators were returned?
A. 11,560 C. 2160
B. 1340 D. 1156
62. Mr Bean can type 62 words in 1minute. How many word can he type in 2 minutes?
A. 99 words C. 124 words
B. 81 words D. 100 words
63. A purchase with a total list price of ₱2,500 is allowed 10% and 7% discount rates. How
much is the final net price?
A. ₱ 2075 C. ₱2092.5
B. ₱2342.5 D. ₱2325
64. An invoice dated March 9 for ₱ 3,023 carried a cash discount of 3/30. If this invoice is
paid on April 2, how much should the payment be?
A. ₱3,023.21 C. ₱2345.21
B. ₱2,932.31 D. ₱2,933.31
65. Ipad Air 5 was marked down by 10% from the regular selling price of ₱40,000. What
was the new selling price after the markdown?
A. ₱35,000 C. ₱36,000
B. ₱37,000 D. ₱38,000

END OF EXAMINATION