1.Kate Anne Enterprises purchased equipment costing P100,000 on July 1, 2020. The equipment has an estimated useful life of 10 years with an estimated scrap value of P10,000. How much is the Depreciation expense on December 31, 2020?

a. P4,500
b. P9,000
c. P10,000
d. P13,500

2.Refer to KATE ANNE Enterprise, how much is the Depreciation expense on December 31, 2021?

a. P4,500
b. P9,000
c. P10,000
d. P13,500

3.Marjorie Company has a P480,000, 12%, 90-day notes receivable outstanding on Dec. 31, 2021. The note is dated Nov 1, 2021. What is the adjusting entry on Dec. 31, 2021?

a. Debit Interest Receivable and Credit Interest Revenue, P9,600

b. Debit Interest Income and Credit Interest Revenue, P9,600

c. Debit Interest Receivable and Credit Interest Revenue, P14, 400

d. Debit Interest Income and Credit Unearned Interest, P14, 400.

4.Prepaid insurance account of BUGAGAO Construction has a balance of P10, 800 before adjustment. This amount represents insurance premium for three months beginning November 1, 2021. Based on these data, the amount of insurance expense as of December 31, 2021 is

a. P2,700
b. P3,600
c. P7,200
d. P10,800






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