VNU-IS MDTERM TEST

---------- SEMESTER 2_ 2021- 2022

Student name: ……………………………… SUBJECT: PRINCIPLE ACCOUNTING
Time allowance: 90 minutes
Class: …………… Student No.: ………………..
Exam date: ……………..
Instructions to candidates
This is a close-book examination.
___________________________________________________________________________
Problem I – Multiple choices (3 points)
Write down your answer in the Answer sheet.

No Answer No Answer No Answer No Answer

1 4 7 10

2 5 8

3 6 9

No Answer No Answer No Answer No Answer

11 14 17 20

12 15 18

13 16 19

1. Credits
A. decrease both assets and liabilities.
B. decrease assets and increase liabilities.
C. increase both assets and liabilities.
D. increase assets and decrease liabilities.

2. A Prepaid expense account?

A. is a current liability.
B. is an expense.
C. is a current asset.
D. is a revenue.

3. At June 1, 2008, Groober Industries had an accounts receivable balance of $12,000.

During the month, the company performed credit services of $25,000 and collected
 accounts receivable of $27,000. What is the balance in accounts receivable at June 30,
2008?
A. $2,000
B. $10,000
C. $12,000
D. $64,000

4. Adjusting entries are made to ensure that:

A. expenses are recognized in the period in which they are incurred.
B. revenues are recorded in the period in which they are earned.
C. balance sheet and income statement accounts have correct balances at the end of an
accounting period.
D. All of the above.

5. Dawson’s Delivery Service purchased equipment for $2,500. Dawson paid $500 in cash
and signed a note for the balance. Dawson debited the Equipment account, credited
Cash and
A. nothing further must be done.
B. debited the Dawson, Capital account for $2,000
C. credited another asset account for $500.
D. credited a liability account for $2,000.

6. The effects on the basic accounting equation of performing services for cash are to:
A. increase assets and decrease stockholders’ equity.
B. increase assets and increase stockholders’ equity.
C. increase assets and increase liabilities.
D. increase liabilities and increase stockholders’equity.
7. Genesis Company buys a $900 machine on credit. This transaction will affect the:
A. income statement only.
B. balance sheet only.
C. income statement and retained earnings statement only.
D. income statement, retained earnings statement, and balance sheet.

8. In recording an accounting transaction in a double-entry system

A. the number of debit accounts must equal the number of credit accounts.
B. there must always be entries made on both sides of the accounting equation.
C. the amount of the debits must equal the amount of the credits.
D. there must only be two accounts affected by any transaction

9. Which of the following events is not a business transaction?

A. Investment of cash by the owner
B. Hired employees
C. Incurred utility expenses for the month
D. Earned revenue for services provided
10. At January 31, 2014, the balance in Bota Inc.’s supplies account was $500. During
February, Bota purchased supplies of $600 and used supplies of $800. At the end of
February, the balance in the supplies account should be
A. $500 debit.
B. $700 credit.
C. $1,100 debit.
D. $300 debit.
11. As of June 30, 2008, Houston Company has assets of $100,000 and owner’s equity of
$5,000. What are the liabilities for Houston Company as of June 30, 2008?
a. $85,000
b. $90,000
c. $95,000
d. $100,000
12. Collection of a $500 Accounts Receivable
a. increases an asset $500; decreases an asset $500.
b. increases an asset $500; decreases a liability $500.
c. decreases a liability $500; increases owner's equity $500.
d. decreases an asset $500; decreases a liability $500.
13. A Statement of Financial position shows
a. revenues, liabilities, and owner's equity.
b. expenses, drawings, and owner's equity.
c. revenues, expenses, and drawings.
d. assets, liabilities, and owner's equity
14. The left side of an account is
a. blank.
b. a description of the account.
c. the debit side.
d. the balance of the account.
15. An account consists of
a. a title, a debit balance, and a credit balance.
b. a title, a left side, and a debit balance.
c. a title, a debit side, and a credit side.
d. a title, a right side, and a debit balance.
16. The normal balance of any account is the
a. left side
b. right side.
c. side which increases that account.
d. side which decreases that account.
17. An account will have a credit balance if the
a. credits exceed the debits.
b. first transaction entered was a credit.
c. debits exceed the credits.
d. last transaction entered was a credit.
 18. In the first month of operations, the total of the debit entries to the cash account
amounted to $900 and the total of the credit entries to the cash account amounted to
$500. The cash account has a(n)
a. $500 credit balance.
b. $800 debit balance.
c. $400 debit balance.
d. $400 credit balance.
19. At December 1, 2008, Marco Company’s accounts receivable balance was $1,200.
During December, Marco had credit revenues of $5,000 and collected accounts
receivable of $4,000. At December 31, 2008, the accounts receivable balance is
a. $1,200 debit.
b. $2,200 debit.
c. $6,200 debit.
d. $2,200 credit.
20. A journal provides
a. the balances for each account.
b. information about a transaction in several different places.
c. a list of all accounts used in the business.
d. a chronological record of transactions

Problem II: (7 points)

Question 1 (4 points)
Robin Klann created a corporation providing legal services, Robin Klann Inc., on August 1, 2017.
Its trial balance before adjustment on August 31 is as follows
ROBIN KLANN Inc.
Trial Balance
August 31, 2017
Account Debit Credit

Cash $5,000

Supplies 1,200

Prepaid Insurance 2,400

Land 50,000

Equipment 15,000

Unearned service revenue $ 3,300

Mortgage Payable 38,000

Share Capital - Ordinary 24,000

Service Revenue 12,000

 Advertising expense 700

Salaries and Wages expense 3,000

$ 77,300 $ 77,300

Other data:
1. Prepaid insurance is a 1-year policy starting August 1, 2017.
2. The mortgage interest rate is 12%. (The mortgage was taken out on August 1.)
3. Two-thirds of the unearned rent revenue has been recognized for services performed.
4. A count of supplies shows $250 of unused supplies on August, 31.
5. Annual depreciation is $1,500 on equipment.
6. Salaries of $750 are accrued and unpaid at August 31.
Instruction:
a. Journalize the adjusting entries on August 31.
b. Prepare a ledger using T-account.
c. Prepare an adjusted trial balance on August 31.

Question 2 (3 points)

Calculate the cost of goods sold dollar value for A65 Company for the month, considering the
following transactions under three different cost allocation methods and using perpetual
inventory updating. Provide calculations for first-in, first-out (FIFO); Average cost and Moving
Average cost.