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FIRSTPREBOARDEXAMINATION
Writeyourfinalanswersintheanswersheet
providedfor.
CreditsalesWriteoffs Recoveries
200910,000,000250,00020,000
201014,000,000400,00030,000
201116,000,000650,00050,000
201225,000,0001,100,000145,000
4. SydneyCompanyreportedthefollowingbalances
(afteradjustment)attheENDof2012and2011.
2012 2011
TotalAccountsreceivable 105,00096,000
NetAccountsreceivable 102,00094,500
9. OnOctober1,2012,Cloycecompanydiscounted
with recourse at 12% a one year noninterest
bearing note of P5,000,000 maturing on January
1, 2013. What amount of contingent liability for
this note must Cloyce disclose in its 2012
financialstatement?5,000,000
ItemCostReplace.CostSalesP.NRV
A89869187
B94929385
C125135129111
D194114205197
11to12
The following information for the month of
Augustisgivenbelow:
Date
Units
unitCost
1
2,000
36
Beg.
7
3,000
37.2
Pur
12
3,600
Sale
21
4,800
38
Pur
22
3,800
Sale
29
1,600
38.60
Pur
Howmuchisthecostofendinginventoryusing:
FIFOperpetual?152,960
Weightedaverageperiodic?150,080
13to16
A physical inventory taken on December 31,
2012 resulted in an ending inventory of P1,440,000.
The company suspects some inventory may have
been taken by employees. To estimate the cost of
InventoryDec31,2011
1,280,000
Purchasesduring2012
5,640,000
Cashsalesduring2012
1,400,000
Shipmentreceivedon26December
2012,includedininventorybutnot
recordedaspurchases
40,000
Depositsmadewithsuppliers,entered
aspurchases.Goodswerenotreceived
in2012
80,000
Collectionsonaccountsreceivable
in2012
7,200,000
AccountsreceivableBeg2012
1,000,000
AccountsreceivableEnd2012
1,200,000
Grossprofitpercentageonsales
40%
OnDecember31,2012,whatare:
Totalcreditsales?7,400,000
Totalcostofgoodsavailableforsale?6,880,000
Costofgoodssold?5,280,000
Estimatedcostofmissinginventory?160,000
17to19
Chans uses the retail inventory method. The
following information is available for the current
year:
Cost
Retail
Beg.Inv.
1,300,000
2,600,000
Purchases
18,000,000
29,200,000
Freightin
400,000
Purchasereturns
600,000
1,000,000
Purchaseallowance
300,000
DepartmentalT.in
400,000
600,000
Netmarkups
600,000
Netmarkdowns
2,000,000
Sales
24,700,000
Salesreturns
350,000
Salesdiscount
200,000
Employeediscounts
600,000
Lossfrombreakage
50,000
Whatistheestimatedcostofendinginventory:
Conventionalapproach?3,000,000
Averageapproach?3,200,000
FIFOapproach?3,250,000
20.OnJanuary1,ChayzesassetstotaledP210,000,
and its liabilities amounted to P120,000. During the
year, owner investments amounted to P72,000, and
CurrentaccountatMetrobank
1,800,000
CurrentaccountatAlliedbank
(100,000)
Payrollaccount
500,000
Foreignbankacct.(inpesovalue)
800,000
Savingsdepositinclosedbank
150,000
Postagestamps
1,000
Employeespostdatedchecks
4,000
IOUfromemployees
10,000
Creditmemofromavendor
20,000
Travelerscheck
50,000
Moneyorder
30,000
Pettycashfund(P4,000incurrency
andexpensereceiptsforP6,000)
10,000
Pensionfund
2,000,000
DAIFcheckofcustomer
15,000
Customercheckdated1/1/13
80,000
Timedeposit30days
200,000
Moneymarketplacementsdue6/30/13500,000
Treasurybilldue3/31/2013(purchased
on12/31/2012)
200,000
Treasurybilldue1/31/2013(purchased
on1/1/2012)
300,000
Whatistheamounttoberecordedascashandcash
equivalentsasof31December2012?3,584,000
Cashonhandandinbank
P2,500,000
Cashrestrictedforbondspayable
dueonJune30,2013
1,000,000
Timedeposit
3,000,000
Savingdepositsetasidefordividends
payableonJune30,2013
500,000
InthecurrentsectionofJaylensDecember31,2012
balance sheet, what is the total amount of cash and
cashequivalents?7,000,000
1/1
12/31
Cash
47,000
?
Inventory
101,000
93,000
Accountsreceivable 82,000
116,000
Accountspayable
68,000
63,000
Sales
1,150,000
Costofgoodssold
900,000
Operatingexpenses
200,000
Whatistheexpectedcashbalanceon12/31?66,000
Balanceperbankstatement
11,164
Receiptsrecordedbutnotyet
depositedinthebank
1,340
Bankchargesnotrecorded
16
Notecollectedbybankandnot
recordedonbooks
1,120
Outstandingchecks
1,100
NSFchecksnotrecordedonbooks
160
26to29
The following bank reconciliation is presented for
HyuencompanyforthemonthofNovember2012:
Balanceperbankstatement(11/30) 3,600,000
Depositintransit
800,000
4,400,000
Outstandingchecks
(1,200,000)
Bankcreditrecordedinerror
(200,000)
Balanceperbook,(11/30)
3,000,000
DataperbankstatementforthemonthofDecember
follow:
Decemberdeposits(includingnote
collectedofP1,000,000forHyuen) 5,500,000
Decemberdisbursements(including
NSF,P350,000,andservicecharge
P50,000)
4,400,000
WhatisthecashbalanceperbookonDecember31?
4,300,000
What is the cash balance per bank statement on
December31?4,700,000
How much is the cash receipts per book in
December?4,400,000
How much is the cash disbursement per book in
December?3,100,000
30.TheunadjustedtrialbalanceofCloyceCompany
as at December 31, 2012 showed Accounts
receivabletrade with a balance of P693,000.
Investigation revealed that it included amounts due
from officers P75,000; claim pending against freight
company P9,000; and refund on insurance policy
P4,500. According to the subsidiary ledger which
have been thoroughly checked and rechecked, the
trade accounts receivable totaled P600,000
(composed of current accounts P375,000; two
monthsaccountP120,000;andthreemonthsormore
P105,000). Responsible officials have acknowledged
definiteuncollectibilityofthreemonthsaccountwith
balancetotalingP22,500;theyhaveexpresseddoubt
with respect to an additional P24,000 worth of
accountsinthesamecategory,andtheyconsiderall
other accounts collectible. At what net realizable
valueshouldtheaccountsreceivabletradebecarried
in the balance sheet as of December 31, 2012?
553,500
Security
Cost
FMV(12/31)
A
240,000
255,000
B
420,000
390,000
C
296,000
290,000
35.Sydneypurchased50,000shares(5%ownership)
of Cloyce company on January 15, 2012. Sydney
received a share dividends of 15% on March 31,
2012. On November 30, Sydney paid P20 per share
special assessment on the shares. On December 15,
2012, Sydney received a cash dividends of P8 per
share.WhatamountshouldSydneyreportasincome
inthesetransactions?460,000
38.OnJuly1,2012,Chayzepurchasedasalongterm
investment P5,000,000 face value 8% bonds for
P4,615,000 to yield 10% per year. The bonds pay
inters semiannually on January 1, and July 1. In its
December 31, 2012 balance sheet, Chayze Company
should report accrued interest receivable at what
amount?200,000
Presentvalueof1at4%for10periods .6756
Presentvalueofanordinaryannuityat
4%for10periods
8.11
Presentvalueof1at5%for10periods .6139
Presentvalueofanordinaryannuityat
5%for10periods
7.72
42.OnJuly1,2012,SydneyCompanypurchased10%
ofCloyceCompanysoutstandingordinarysharesfor
P4,000,000. Sydney is the largest single shareholder
in Cloyce and Sydneys officers are a majority of
Cloyces board of directors. Cloyce reported net
incomeofP5,000,000for2012andpaiddividendsof
P1,500,000. On December 31, 2012, what is the
amount to be reported as investment in Cloyce?
3,900,000
43.During2011,JaylenCompanyboughttheshares
ofTreyCompanyasfollows:
June1
20,000shares@P100
December1
30,000shares@P120
Thetransactionsfor2012are:
January10receivedcashdividendsatP10pershare
January20received20%stockdividend
December10 sold30,000sharesatP125pershare
IftheFIFOapproachisused,whatisthegainonthe
saleoftheshares?1,150,000
WhatamountshouldWrayreportasdividendincome
initsincomestatementfortheyearendedDecember
31,2010?40,000
Additionalinvestmentin2011
700,000
Dividendsoninvestments
150,000
Interestincome
300,000
Administrationexpenses
40,000
Carryingamountofbondspayable
7,000,000
Bondsinkingfund,January1,2011
8,200,000
Whatisthecarryingamountofthebondsinkingfund
onDecember31,2011?9,310,000
Futurevalueof1at10%for4periods
1.46
Futurevalueofanordinaryannuityof
1at10%for4periods
4.64
Futurevalueofanannuityof1inadvance
at10%for4periods
5.11
Whatistheannualdeposittothefund?2,739,726
50.TreyCompanyacquiredamachineryonAugust1,
2012. The cost of the machinery is P1,200,000 with
an estimated residual value of P120,000 and an
estimatedusefullifeof8years.
END
ANSWERSHEET
FIRSTPREBOARDEXAMINIATION
PRACTICALACCOUNTING1
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