31. While preparing the. 2017 trial balance, Rome Company's accountant committed the following errors: omission of the prepaid rent account amounting to P4,000; understatement of the inventory account by P72,000; overstatement of the sales account by P1,500; accounts receivables totaling to P123,000 was included in the trial balance as P213,000; accounts payable totaling to P153,000 was included as P135,0003; discount on bonds payable was included as a credit rather than as a debit, P1,500; Revenue expenditures of P35,000 was erroneously capitalized to furniture and fixtures. The difference between the debit and credit amounts in Rome Company's trial balance is a. P2,500 b. P26,000 c. P7,500 d. P27,500

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3:23
IR1_MIDTERM_20201.pdf
31. While preparing the, 2017 trial balance, Rome Company's accountant committed the following errors:
omission of the prepaid rent account amounting to P4,000; understatement of the inventory account by
P72,000; overstatement of the sales account by P1,500; accounts receivables totaling to P123,000 was
included in the trial balance as P213,000; accounts payable totaling to P153,000 was included as P135,000;
discount on bonds payable was included as a credit rather than as a debit, P1,500; Revenue expenditures of
P35,000 was erroneously capitalized to furniture and fixtures.
The difference between the debit and credit amounts in Rome Company's trial balance is
а. Р2,500
b. P26,000
c. P7,500
d. P27,500
32. The following items were taken from Paris Company's adjusted trial balance; except for its land and building
accounts
5/12
200,000
120,000
35,000
20,000
49,500
400,000
410,000
65,000
90,000
In Paris Company's post-closing trial balance, the credit total would amount to
300,000
420,000
11,000
11,500
75,000
800,000
23,000
35,000
45,000
Accounts receivable
Accounts payable
Accrued Interest Expenses
Accrued Interest Revenue
Inventory
Paris, capital
Prepaid supplies
Rent revenue
Salaries expense
P
Advances from customers
Cost of sales
Sales
Furniture and fixtures
Interest expense
Sales returns and allowances
Unearned rent income
Utilities expense
Interest revenue.
a. P903,500
b. Р938,000
с. Р1,561,000
d. P953,000
33. Lucerne Cómpany reported the following changes during the current year
Increase
Increase
(Decrease)
P 400,000
300,000
50,000
(150,000)
Accounts payable
Bonds payable
Discount on bonds payable
Common stock
(Decrease)
80,000
(100,000)
(10,000)
120,000
Cash
Accounts receivable
Allowance for bad debts
Inventory
60 000.
Transcribed Image Text:3:23 IR1_MIDTERM_20201.pdf 31. While preparing the, 2017 trial balance, Rome Company's accountant committed the following errors: omission of the prepaid rent account amounting to P4,000; understatement of the inventory account by P72,000; overstatement of the sales account by P1,500; accounts receivables totaling to P123,000 was included in the trial balance as P213,000; accounts payable totaling to P153,000 was included as P135,000; discount on bonds payable was included as a credit rather than as a debit, P1,500; Revenue expenditures of P35,000 was erroneously capitalized to furniture and fixtures. The difference between the debit and credit amounts in Rome Company's trial balance is а. Р2,500 b. P26,000 c. P7,500 d. P27,500 32. The following items were taken from Paris Company's adjusted trial balance; except for its land and building accounts 5/12 200,000 120,000 35,000 20,000 49,500 400,000 410,000 65,000 90,000 In Paris Company's post-closing trial balance, the credit total would amount to 300,000 420,000 11,000 11,500 75,000 800,000 23,000 35,000 45,000 Accounts receivable Accounts payable Accrued Interest Expenses Accrued Interest Revenue Inventory Paris, capital Prepaid supplies Rent revenue Salaries expense P Advances from customers Cost of sales Sales Furniture and fixtures Interest expense Sales returns and allowances Unearned rent income Utilities expense Interest revenue. a. P903,500 b. Р938,000 с. Р1,561,000 d. P953,000 33. Lucerne Cómpany reported the following changes during the current year Increase Increase (Decrease) P 400,000 300,000 50,000 (150,000) Accounts payable Bonds payable Discount on bonds payable Common stock (Decrease) 80,000 (100,000) (10,000) 120,000 Cash Accounts receivable Allowance for bad debts Inventory 60 000.
3:31
IR1_MIDTERM_20201.pdf
33. Lucerne Cómpany reported the following changes during the current year
Increase
Increase
(Decrease)
P 400,000
300,000
50,000
(150,000)
(50,000)
1,000,000
100,000
(Decrease)
80,000
(100,000)
(10,000)
120,000
60,000
30,000
Accounts payable
Bonds payable
Discount on bonds payable
Cash
Accounts receivable
Allowance for bad debts
Common stock
Inventory
Prepaid rent
Plant and equipment
Accumulated depreciation
There were no other entries in the Retained earnings account except for the dividend declaration of P50,00 5/12
which was paid in the current year
Net income for the year
Premium on common stock
Treasury stock at costs.
a. P1,200,000
b. P1,260,000
c. P1,280,000
d. P1,360,000
Use the following information for numbers 34 and 35
On April 12. 2017 unon the receint of the Manah 2017 L-1
II
Transcribed Image Text:3:31 IR1_MIDTERM_20201.pdf 33. Lucerne Cómpany reported the following changes during the current year Increase Increase (Decrease) P 400,000 300,000 50,000 (150,000) (50,000) 1,000,000 100,000 (Decrease) 80,000 (100,000) (10,000) 120,000 60,000 30,000 Accounts payable Bonds payable Discount on bonds payable Cash Accounts receivable Allowance for bad debts Common stock Inventory Prepaid rent Plant and equipment Accumulated depreciation There were no other entries in the Retained earnings account except for the dividend declaration of P50,00 5/12 which was paid in the current year Net income for the year Premium on common stock Treasury stock at costs. a. P1,200,000 b. P1,260,000 c. P1,280,000 d. P1,360,000 Use the following information for numbers 34 and 35 On April 12. 2017 unon the receint of the Manah 2017 L-1 II
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