Midterm Examination for AC11N

Instructions: DO NOT WRITE ANYTHING ON THE QUESTIONAIRE. Use the worksheet for your answers.
Place the adjusting entries at the lower part of your worksheet. If you have questions, ask the professor
NOT YOUR CLASSMATES. You have 2 hours to complete the exam. The papers will be checked right after
the exams. Phones are not allowed. Use the (exact actual) account titles given in the table. God bless
and good luck.
PROBLEM:
Mr. Terkit Layk Mah Li owns a company named Wash Mi Wep Company. The company started doing
business on January 1, 2015. On February 30, 2015 the company is in the process of applying a loan at
Canduman Accident Bank. And they required Wash Mi Wep Company to prepare a worksheet showing
the Income Statement, Statement of Owner’s Equity and the Balance Sheet as of February 30, 2015.
Given below is the(Unadjusted) Trial Balance of Wash Mi Wep Company.

Wash Mi Wep Company

Trial Balance
February 30, 2015

Account Titles Debit Credit

Cash 55,000
Accounts Receivable 15,000
Prepaid Insurance 1,800
Supplies 4,200
Land 60,000
Building 300,000
Accumulated Depreciation – Building 60,000
Equipment 90,000
Accumulated Depreciation – Equipment 27,000
Unearned Fees Revenue 56,000
T. Mah LI, Capital 345,800
T. Mah Li, Drawings 12,000
Fees Revenues 209,000
Salaries and Wages Expense 105,000
Advertising Expense 13,000
Utilities Expense 28,000
Repairs Expense 10,000
Miscellaneous Expense 3,800
Totals 697,800 697,800
Additional Accounts:

Supplies Expense, Insurance Expense, Depreciation Expense- Building, Depreciation Expense-

Equipment, Salaries and Wages Payable.

Additional Information: The adjustments as of February 30, 2015 are the following;

1. The remaining unused supplies is P500.

2. Of the total prepaid Insurance, P1500 expired as of February 30, 2015.
3. Annual depreciation for Building is P36,000.
4. Annual depreciation for Equipment is P24,000.
5. Of the total unearned fees, P20,000 is earned during the year.
6. At the February 30, 2015, Salaries and Wages amounting to P30,000 is accrued.
(meaning, unpaid)

Requirements:
Prepare the worksheet, consisting; Unadjusted Trial Balance, Adjustments, Adjusted Trial
Balance, Income Statement, Statement of Owner’s Equity and Balance Sheet by using a 12-
column worksheet. Write the adjusting entries at the lower part of the worksheet.

“One exam does not determine a person’s intelligence, neither the grades do. Thus, despite the results,
continue and persevere in achieving your dreams”