FEU MAKATI

PRELIMINARY EXAMINATION

PROBLEMS:
1. The December 31, 2016 trial balance of Yasmin Company includes the following accounts:
Petty cash fund 50,000
Current account First Bank 4,000,000
Current account-Second Bank (overdraft) (250,000)
Money market placement-Third Bank 1,000,000
Time deposit-Fourth Bank 2,000,000

The petty cash fund includes unreplenished December 2016 petty cash expense vouchers for
P15,000 and an employee check for P5,000 dated January 31, 2017.
A check for P100,000 was drawn against First Bank current account dated and recorded December
29, 2016 but delivered to payee on January 15, 2017.
The Fourth Bank time deposit is set aside for land acquisition in early January 15, 2017.

The December 31, 2016 balance sheet should report cash and cash equivalents at
Answer: 5,130,000

2. On December 31, 2016, Salve Company had the following cash balances:
Cash in bank 5,000,000
Petty cash fund (all funds were reimbursed on December 31,2016) 50,000
Treasury bills - six months due January 15, 2017 2,500,000
Saving deposit 1,500,000

Cash in bank includes P500,000 of compensating balance against short-term borrowing arrangement at
December 31, 2016. The compensating balance is legally restricted as to withdrawal by Salve. A check of
P1,000,000 dated January 15, 2017 in payment of accounts payable was recorded and mailed on December
31, 2016.

In the December 31, 2016 statement of financial position, what amount should be reported as "cash and cash
equivalents"?
Answer: 7,050,000

3. Lawson Corporation's checkbook balance on December 31, 2016, was P8,000. In addition, Lawson held the
following items in its safe on December 31:

Check payable to Lawson Corporation, dated January 2, 2017, not included in December
31 checkbook balance.. P2,000
Check payable to Lawson Corporation, deposited December 20, and included in
December 31 checkbook balance, but returned by bank on December 30, stamped
"NSF." The check was redeposited January 2, 2017, and cleared January 7 .. 400
Post-dated checks ....................................... 150
Check drawn on Lawson Corporation's account, payable to a vendor, dated and recorded
December 31, but not mailed until January 15, 2017 .................................. 1,000

The proper amount to be shown as cash on Lawsons balance sheet at December 31, 2016, is
Answer: P8,600.

4. The petty cash fund of the Liwanag Enterprises immediately after the close of the business on September
30, 2016, the end of the companys fiscal year is composed of the following:

Currencies 20,000
Coins 2,000
Petty cash vouchers:
Gasoline payments for delivery equipment 3,000
Medical supplies for employees 1,000
Repairs of office equipment 1,500
Loans to employees 3,500
A check drawn to the company payable to the order of Grace de la Cruz, petty cash 15,000
custodian representing her salary
 An employees check returned by the bank for insufficiency of funds 3,000
A sheet of paper with names of several employees together with contribution for a 5,000
birthday gift of a co-employee. Attached to the sheet of paper is a currency of

The petty cash general ledger account has an imprest balance of P50,000. Based on the above data, how
much should the petty cash fund account be reduced?
A. Answer: 13,000
B.
5. The following bank reconciliation is presented for the Kingston Company for the month of November 2016:
C. Balance per bank statement, 11/30/16
P18,040
D. Add: Deposit in transit 4,150
E. Less: Outstanding checks P6,300
F. Bank credit recorded in error 20 (
6,320)
G. Balance per books, 11/30/16
P15,870
H.
I. Data for the month of December 2016 per bank follows:
J. December deposits P26,100
K. December disbursements 22,420
L. Balance, 12/31/16 21,720
M.
N. All items that were outstanding as of November 30, cleared through the bank in December, including
the bank credit. In addition, P2,500 in checks were outstanding as of December 31, 2016. What is the
balance of cash per books at December 31, 2016?
O. Answer: P19,220
P.
6. The cash account shows a balance of P45,000 before reconciliation. The bank statement does not include a
deposit of P2,300 made on the last day of the month. The bank statement shows a collection by the bank of
P940 and a customer's check for P320 was returned because it was NSF. A customer's check for P450 was
recorded on the books as P540, and a check written for P79 was recorded as P97. The correct balance in the
cash account was
Q. Answer: P45,548
R.
7. The following information was included in the reconciliation for Rytton, Inc., for June:
S.
T. Checks and charges recorded by bank in June, including a June service charge of P30 U. P17,210
V. Service charge made by bank in May and recorded in the books in June W. 2
0
X. Total of credits to cash in all journals during June Y. 1
9,
8
0
2
Z. Customers NSF check returned in May and redeposited in June (no entry made on AA.
books) 250
AB. Outstanding checks at June 30 AC.
8,060
AD. Deposit in transit at June 30 AE.6
0
0
AF.
AG. The total outstanding checks at the beginning of June, assuming all other reconciling items are
listed
AH. Answer: 5,458
AI.
AJ. The following data pertaining to the cash transactions and bank account of Hurray Company for May
2015 are available to you:
AK.
AM.
AL.Cash balance, per accounting records, May 31, 2015 51,58
2
AN. Cash balance, per bank statement, May 31, 2015 AO.
 95,87
4
AQ.
AP. Bank service charge for May
327
AS. 3
AR. Debit memo for the cost of printed checks delivered by the bank; the charge
7
has not been recorded in the accounting records
5
AU.
AT. Outstanding checks, May 31, 2015 20,18
4
AW.
AV. Deposit of May 30 not recorded by bank until June 1 14,61
0
AY. 1
7
AX. Proceeds of bank loan on May 30, not recorded in the accounting records, net ,
of interest of P900 1
0
0
BA.
AZ.Proceeds from a customers promissory note; principal amount P24,000, collected by
24,30
the bank, taken up in the books with interest
0
BC.3
,
BB.Check No. 1086 issued to a supplier entered in the accounting records as P6,300 but
6
deducted in the bank statement at an erroneous amount of
0
0
BE. 2
,
BD. Stolen check lacking an authorized signature, deducted from Hurrays account
4
by the bank in error
0
0
BF. Customers checks returned by the bank marked NSF, indicating that the customers
BG.
balance was not adequate to cover the checks; no entry has been made in the
2,280
accounting records to record the returned check
BH.
8. The adjusted cash in bank balance of Hurray Company at May 31, 2015 is:
BI. Answer: P 90,000
BJ.
9. The cash in bank balance of Hurray Company at May 31, 2015 is:
BK. Answer: Understated by P38,418
BL.
10. In its December 31, 2015 balance sheet, Fleet Co. reported accounts receivable of P100,000 before
allowance for uncollectible accounts of P10,000. Credit sales during 2016 were P620,000, and collections
from customers, excluding recoveries, totaled P591,000. During 2016, accounts receivable of P45,000 were
written off and P17,000 were recovered. Total sales returns totaled P16,000, P7,000 of which were refunded
to customers in cash, Fleet estimated that P15,000 of the accounts receivable at December 31, 2016, were
uncollectible.
BM.
BN. In its December 31, 2016 balance sheet, what amount should Fleet report as accounts receivable
before allowance for uncollectible accounts?
BO. Answer: P75,000
BP.
11. When examining the accounts of Brute Company, you ascertain that balances relating to both receivables
and payables are included in a single controlling account called receivables control that has a debit balance
of P4,850,000. An analysis of the make up of this account revealed the following:
BQ.
BR. BS. Debit BT. Credit
BU. Account receivable customers BV. 7,800,0 BW.
00
BX. Accounts receivable officers BY. 500,00 BZ.
0
CA. Debit balances creditors CB. 300,00 CC.
0
 CD. Postdated checks from customers CE. 400,00 CF.
0
CG. Subscriptions receivable CH. 800,00 CI.
0
CJ. Accounts payable for merchandise CK. CL. 4,500,
000
CM. Credit balances in customers accounts CN. CO. 200,00
0
CP. Cash received in advance from customers for goods CQ. CR.
not yet shipped 100,000
CS. Expected bad debts CT. CU. 150,00
0
CV.
CW. After further analysis of the aged accounts receivable, you determined that the allowance for
doubtful accounts should be P200,000. What is the correct total of current net receivables?
A. Answer: 8,800,000
B.
12. Wren Company had the following account balances at December 31, 2016:
C. Accounts receivable D. P
900,
000
E. Allowance for doubtful accounts G. 16,0
F. (before any provision for 2016 doubtful accounts expense) 00
H. Credit sales for 2016 I. 1,75
0,00
0
J.
K. Wren is considering the following method of estimating doubtful accounts expense for 2016:
Based on credit sales at 2%
Based on accounts receivable at 5%
L.
M. What amount should Wren charge to doubtful accounts expense under each method?
N. Answer:
O. P. D
Q. Percentage of credit sales R. P35,0
00
S. Percentage of accounts T. P29,0
receivable 00
U.
V.
W.
X.
Y.
Z.
AA.
AB.
AC.
13. Easy Company sells directly to retail customers. On January 1, 2016, the balance of the accounts receivable
was P2,070,000 while the allowance for doubtful accounts was a credit of P78,000. The following data are
gathered:
AD. AE.Credit Sales AF. Write-offs AG. Recover
ies
AH. 2 AI. 11,100,000 AJ. 260,000 AK. 22,000
013
AL.2014 AM. 12,250,00AN. 295,000AO. 37,000
0
AP. 2015 AQ. 14,650,00AR. 300,000 AS. 36,000
0
AT. 2016 AU. 15,000,00 AV. 310,000 AW. 42,000
0
AX.
AY. Doubtful accounts are provided for as a percentage of credit sales. The accountant calculates the
percentage annually by using the experience of the three years prior to the current year. Cash receipts in
 2016 from the credit sales amounted to P13,800,000. For 2016, Easy Company should record doubtful
accounts expense at
A. Answer: 300,000
B.
14. The following information pertains to Tara Companys accounts receivable at December 31, 2016:
C. Days outstanding D. Estimated amount E. Collectability rate
F. 0 - 60 G. 1,200,000 H. 99%
I. 61 - 120 J. 900,000 K. 98%
L. Over 120 M. 1,000,000 N. 94%
O. P. 3,100,000 Q.
R.
S. During 2016, Tara wrote off P70,000 in receivables and recovered P40,000 that had been written off in
prior years. Taras January 1, 2016, allowance for uncollectible accounts was P100,000. Under the aging
method, what amount of allowance for uncollectible accounts should Tara report at December 31, 2016?
A. Answer: 90,000
B.
15. On December 31, 2016, Caande Company received two P5,000,00 notes receivable from customers in
exchange for services rendered. On both notes, interest is calculated on the outstanding principal balance at
the annual rate of 3% and payable at maturity. The note from Mark Corporation, made under customary
trade items, is due in nine months and the note from Tristan Company is due in five years. The market
interest rate for similar notes on December 31, 2016 was 8%.
C. At what amounts should these two notes receivable be reported in Caandes December 31, 2016 balance
sheet? (Round present value factors to 2 decimal places)
D. Answer:
E. F. D.
G. Mark H. 5,000,
000
I. Trista J. 3,910,
n 000
K.
16. On August 1, a firm assigned P30,000 of its P56,000 of accounts receivable. The finance company advanced
90% of the assigned accounts less a P2,000 fee. Interest is 12% and payable monthly on the beginning-of-
period loan balance. A loan payment is remitted at the end of each month. Each payment includes principal
and interest. The amount of each loan payment equals the cash collected on receivables during the month
plus interest on the loan balance. If P8,000 was collected on accounts receivable during August, the entry
for the first loan payment would include a
L. Answer:
M. debit to Interest Expense of P280.
N.
17. On December 1, 2014, Laramie Company received a P10,000, 60-day, 6% note from a customer. On
December 31, 2014, the company discounted the note at the bank. The banks discount rate is 9%. What
were the proceeds that Barnes received from the discounting of the note?
O. Answer: P10,024.25
P.
18. On December 26, 2016, Karen Company purchased goods costing P5,000,000. The freight term is FOB
destination. Some of the costs incurred in connection with the sale and delivery of the goods were:
Q.
R. Packaging for shipment 100,000
S. Shipping 200,000
T. Special handling charges 300,000
U.
V. These goods were received on December 31, 2016. In the December 31, 2016 balance sheet, what
amount of cost for these goods should be included in inventory?
A. Answer: 5,000,000
B.
19. The inventory account of Benson Company at December 31, 2016 included the following items:
C.
D. Merchandise out on consignment at sales price (including mark-up of 25% on selling price) E. P
8,000
F. Goods purchased, in transit (shipping FOB shipping point) G. 1
0,000
H. Goods held on consignment by Benson Co. I. 7
,000
J. Goods out on approval (sales price is P2,500, cost at P2,000) K. 2
 ,500
L.
M. Based on the following information, the inventory account should be reduced at December 31, 2016 by
A. Answer: P 9,500
B.
20. Flash Company's inventory at June 30, 2016, was P76,000 based on a physical count of goods priced at cost,
and before any necessary year-end adjustment relating to the following:
Included in the physical count were goods billed to a customer FOB shipping point on June 30, 2016.
These goods had a cost of P1,500 and were picked up by the carrier on July 10, 2016.
Goods costing P1,000 held on consignment from a vendor and located in the warehouse were included
in the physical count at June 30, 2016. The goods were sold on July 2, 2016 at sales price of P1,500.
Goods shipped FOB destination on June 28, 2016, from a vendor to Flash were received on July 3,
2016. The invoice cost was P2,500.
Goods fabricated to the order of a customer were included in the inventory count since the goods were
shipped only on July 1, 2016. The customer was billed at P3,000 including a markup of 50% based on
cost.
C. What amount should Flash report as inventory on its June 30, 2016, balance sheet?
D. Answer: P73,000
E.
F. Items 21 and 23 are based on the following:
G. On January 1, 2016, Kent Company had Accounts Receivable and Allowance for Doubtful Accounts of
P160,000 and P12,000 respectively. Sales (all on credit) during 2016 amounted to P1,800,000. Accounts of
P7,000 were also written off during the year. An analysis of Kents accounts receivable at December 31,
2016 revealed the following:
H. Age Amount Estimated Uncollectible
I. 0-60 P120,000 1%
J. 61-120 90,000 2%
K. Over 120 100,000 6%
L. There are no other transactions affecting accounts receivable.
M.
21. How much was the cash collected from customers during 2016?
A. Answer: P1,643,000
B.
C. 22. What is the net realizable value of accounts receivable at December 31, 2016?
A. Answer: P301,000
B.
C. 23. What is Kents bad debts expense for 2016?
A. Answer: P 4,000
B.
C. 24. You are attempting to determine an apparent cash shortage that you believe resulted from an
employees theft. You have assembled the following information for the month of March:
D.
E. Cash balance per books, F. G. H. P1,15
March 1 9,637
I. Cash receipts for March, per J. K. L. 2,464,
books 750
M. Cash disbursements for March, per books N. 3,347,
091
O. Cash balance, per bank statement, March 31 P. Q. 153,4
14
R. Deposit in transit, March 31 S. T. 100,0
00
U. Outstanding checks, March 31 V. W. 27,03
8
X. Bank service charge for March Y. Z. 920
AA. What is the amount of the suspected cash shortage?
AB. Answer: P50,000.
AC.
AD. 25. The following information is included in the bank reconciliation for ABC CO. for the
month of July
AE. 2016.
AF. AG. Checks and charges recorded by the bank in July, including a July AH.
a. service charge of P30 AI. P
17
 ,2
10
AJ. AK. Service charge made by bank in June and recorded in the books in AL.20
b. July
AM. AN. Total of credits to Cash in all journals during July AO.
c. 19,80
2
AP. AQ. Customers NSF check returned as a bank charge in July (No entry AR.
d. made in the books) AS. 10
0
AT.AU. Customers NSF check returned in June and redeposited in July (No entry AW.
e. made AX.
AV.in the books in either June or July) 250
AY. AZ.Outstanding checks, July 31 BA.
f. 13,26
0
BB. BC.Deposits in transit, July 31 BD.
g. 600
BE. BF. BG.
BH. How much is the amount of outstanding checks on BI. BJ.
July 01, 2016?
BK.
BL. Answer: P10,558
BM.
BN.
BO. Items 26 to 28 are based on the following:
BP. On January 01, 2016, Heart Corporation sold a piece of equipment that was acquired ten years ago for
P350,000. At the time of sale, the equipment had an accumulated depreciation of P240,000. Heart
received a non interest bearing note for P300,000 in exchange for the equipment. The note is due on
December 31, 2017. There is no readily available market value for the equipment, but the current
market rate of interest for comparable notes is 12%. Round your present value factor to 4 decimal
places and answers to nearest peso.
BQ.
BR. 26. What is the gain on the sale of equipment?
BS. Answer: P129,160
BT.
BU. 27. How much is the interest revenue for 2016?
BV. Answer: P28,699
BW.
BX. 28. How much is the interest revenue for 2017?
BY. C. P32,141
BZ.
CA. Items 29 to 30 are based on the following:
CB.On January 01, 2016, Doug Company sold land that originally cost P400,000 to Johnson Company. As
payment, Johnson Company gave Doug a P600,000 note. The note bears an interest rate of 14% and is
to be repaid in three annual installments of P200,000 plus interest on the outstanding balance. The first
payment is due on December 31, 2016. The market price of the land is not reliably determinable. The
prevailing interest rate for notes of this type is 14%.
CC.
CD. 29. How much is the gain on the sale of land?
CE. Answer: P200,000
CF.
CG. 30. Assume that the note received by Doug Company bears an interest rate of 4% (instead
of 14%) and the prevailing interest rate for comparable notes is 14%. How much is the gain on
sale of land?
CH. Answer: P103,105
CI.
CJ. Items 31 to 32 are based on the following:
CK. On January 01, 2016, Chelsea Company sold an equipment to Central Company which had a
carrying value on Chelsea Companys books of P100,000. Central Company gave Chelsea Company a
P600,000 non interest bearing note, payable in five annual installment of P120,000 with the first
payment due on December 31, 2016. There was no established price for the equipment and the note has
no ready market value.
CL.
 CM. The prevailing interest rate for a similar note on January 01, 2016 was 12%. Present value (PV)
and future amounts (FA) factors for 5 periods at 12% are:
CN. PV of P1-0.57 PV of annuity of P1 -3.6
CO. FA of P1-1.76 FA of annuity of P1 -6.35
CP.
CQ. 31. How much is the interest revenue for 2016?
CR. Answer: P51,840
CS.
CT. 32. How much is the carrying value of the note on December 31, 2016?
CU. Answer: P363,840
CV.
CW. 33. In preparing the August 31, 2016 bank reconciliation, JAY COMPANY had made available the
following information :
CX.
CY.Balance per bank statement, August 31, 2016 CZ. DA.
P180,
5
0
0
DB. Deposit in transit, August 31, 2016 DC.
32,50
0
DD. Return of customers check for insufficient funds. August DE. DF. 6,
31, 2016 0
0
0
DG. Outstanding checks, August 31, 2016 DH. DI. 2
7,
5
0
0
DJ. Bank charges, August 31, 2016 DK. DL.
1,
0
0
0
DM. DN. DO.
DP. What is the adjusted cash balance per books at August 31, 2016? DQ. DR.
DS. Answer: P192,500.
DT.
DU. Items 34-37 are based on the following:
DV.
DW. The following information on the current account of STEWART CORPORATION for
December 31, 2016.
DX. The bank statement on November 30, 2016 showed a balance of P76,500. Among the bank
credits in November was customers note for P25,000 collected for the account of the company which
the company recognized in December among its receipts. Included in the bank debits were cost of
checkbooks amounting to P300 and a P10,000 check which was charged by the bank in error against
STEWART CORPORATION account. Also in November you ascertained that there were deposits in
transit amounting to P20,000 and outstanding checks totaling P42,500.
DY.
DZ.The bank statement for the month of December showed total credits of P104,000 and total charges of
P51,000. The companys books for December showed total receipts of P183,900, disbursements of
P101,800 and a balance of P121,400. Bank debit memos for December were: No. 143 for service
charges, P400 and No. 145 on a customers returned check marked DAIF for P6,000.
EA.On December 31, 2016 the company placed with the bank a customers promissory note with a face
value of P30,000 for collection. The company treated this note as part of its receipts although the bank
was able to collect on the note only in January, 2017.
EB.
EC. A check for P990 was recorded in the company cash payments books in December as P9,900.
ED.
EE. Based on the application of the necessary audit procedures and appreciation of the above data, you are
to provide the answers to the following:
EF.
 EG. 34. How much is the adjusted cash balance as of November 30, 2016?
EH. Answer. P64,000
EI. 35. How much is the adjusted bank receipts for December?
EJ. Answer. P128,900
EK. 36. How much is the adjusted book disbursements for December?
EL. Answer. P98,990
EM. 37. How much is the adjusted cash balance as of December 31, 2016?
EN. Answer. P93,910
EO.
EP.
EQ. 38. Rosalie Corporation is located in Los Angeles but does business throughout Europe. The
company builds and sells equipment used in manufacturing pharmaceuticals. On December 31, 2016,
Rosalie's accounts receivable are as follows:
ER.
ES. Individually significant receivables
ET. Finley Company P
80,000
EU. Rios, Inc. 200,000
EV. Rafael Co. 120,000
EW. Hunter, Inc. 100,000
EX. All other receivables 500,000
EY. Total P 1,000,000
EZ.
FA. Rosalie Corporation determines that Finley Company's receivable is impaired by P40,000 and
Hunter, Inc.'s receivable is totally impaired. The other receivables from Rafael and Rios are not
considered impaired. Rosalie determines that a composite rate of 2% is appropriate to measure impairment
on all other receivables.
FB.
FC. What is the total impairment of receivables for Rosalie Corporation for 2016?
FD. Answer: 156,400
FE.
FF.
FG.
FH.
FI.
FJ.
FK. 39. During January, Stuart Company recorded the following information regarding its inventory:
FL.
FM. FN.U FO. FP. Total FQ. U
nit Unit cost cost nits on
s hand
FR. Balance on FS. 9 FT. 300 FU. 2,700,0 FV. 9,000
1/1 ,0 00
00
FW. Purch FX. 6 FY. 250 FZ. 1,500,0 GA. 1
ased on 1/9 ,0 00 5,000
00
GB. Sold GC. GD. GE. GF. 5,000
on 1/16 10,000
GG. Purch GH. GI. 400 GJ. 2,000,0 GK. 1
ased on 1/22 5,000 00 0,000
GL.Sold on 1/27 GM. GN. GO. GP. 6,000
4,000
GQ.
GR. What is the ending inventory of Stuart Company under FIFO method?
GS. Answer:. 2,250,000
GT.
GU. 40. Mary Grace Company sells to wholesalers on terms of 2/15, net 30. Mary Grace has no cash
sales but 50% of customers take advantage of the discount. Mary Grace uses the gross method of
recording sales. An analysis of accounts receivable on at December 31, 2015 revealed the following:
GV.Age GW. Amou GX. Collectibl
nt e
GY.0 15 days GZ.5,000,000 HA. 100%
HB. 16 HC. 2,000, HD. 80%
 30 days 000
HE.Over 30 days HF. 1,000,000 HG. 400,000
HH.
HI. In the December 31, 2015 balance sheet, what amount should be reported as net realizable value
of accounts receivable?
HJ. Answer. 6,950,000
HK.
HL. 41. Celeste Company provided the following transactions, among others, for the current year.
HM. HO.
HN. HP. Sold merchandise to XYZ Company for P500,000, terms 2/10, n/30.
Jun

HQ. HR. Factored the above account to Solid Finance under the following
3 agreement.
HS. HT.Commission based on gross amount 5%.

HU. HV.Hold back based on gross amount 25%.

HW. HX. XYZ Company paid in full its account to Solid Finance.
11
HY. HZ.Final settlement was made with Solid Finance.
15
IA.
IB. How much was the total amount received from the factoring
IC. Answer:. 350,000
ID.
IE. 42. On June 20, 2015, a fire destroyed the entire uninsured merchandise inventory of the Anson
Merchandising Company. The following data are available:
IF.
IG. A. Inventory, January 1 B. P
IH. 300,0 What is the
00
C. Purchases, January 1 through June 20 D. 2,200,
000
E. Sales, January 1 through June 20 F. 2,400,
000
G. Markup percentage on cost H. 25%
approximate inventory loss as a result of the fire?
II. Answer. 580,000
IJ. 43. Included in the deposits recorded by the bank is collection of a note for P400,000 and interest of
P20,000, and charges for the month of June was a P50,000 NSF check from a customer.
IK.
IL. The deposits in transit on June 30, 2015 amount to
IM. Answer:. 1,220,000
IN.
IO. 44. On December 31, 2014, Falls Company sold used equipment to Glass Corp. and received a
noninterest-bearing note requiring payment of P50,000 annually for ten years. The first payment is due
December 31, 2015, and the prevailing rate of interest for this type of note at date of issuance is 12%.
Present value factors are as follows:
IP.
IQ. Present value of 1 at 12% for 10 periods IR. 0.32
20
IS. Present value of ordinary annuity of 1 at 12% for 10 periods IT. 5.65
02
IU. Present value of annuity due of 1 at 12% for 10 periods IV. 6.32
82
IW.
IX. In its December 31, 2015 Statement of Financial Position, Falls Company should report the
carrying amount of the note at
IY. Answer. P266,410
IZ.
JA. Items 45-48 are based on the following:
JB. Barbie Company is making a four column bank reconciliation at April 30 from the following data.
JC.
JD. The amounts per bank statement were: Balance March 31, P32,500, April receipts, P65,000;
 JE. April disbursements, P55,000.
JF.
JG. The amounts per books were: Balance March 31, P38,175; April receipts, P57,740;
JH. April disbursements, P56,175, Balance April 30, P39,740.
JI.
MARCH APRIL
JJ. Deposit in transit P 6,000 P 7,500
JK. Outstanding checks 3,350 4,200
JL.
JM. The bank overlooked a check for P375 when recording a deposit on April 24. Customers checks was
understated by P135
JN.
JO. Items recorded after receiving the bank statement:
JP. March April
JQ. Note collected by bank 9,000
JR. Service charge 225 300
JS. NSF Checks 2,800 2,400
JT.
JU. 35,150 45. The correct March balance
JV. 46,175 46. The corrected balance per bank on April 30 is
JW. 66,875 47. The corrected April receipts per books is:
JX. 55,850 48. The corrected April disbursements per books is:
JY.
JZ.
KA. 49. The following data were taken from the books of Marina Co. for the year 2015:
KB. From cash records: KC.
KD. Cash purchases KE.P
3
0
,
0
0
0
KF. Payments to trade creditors for credit purchases KG.
302,6
0
0
KH. From Statement of Financial Positions KI.
KJ. Accounts payable KK.
KL. Jan. 1, 2015 KM.
37,50
0
KN. Dec. 31, 2015 KO.
43,30
0
KP. Merchandise inventory, Jan. 1, 2015 KQ.
12,80
0
KR. From other records: KS.
KT. Cost of goods for the year KU.
335,0
0
0
KV.
KW. The merchandise inventory at the end of the year is
KX. Answer. P16,200
KY.
KZ. 50. The work-in-process inventory of Burp Company were completely destroyed by fire on June 1,
2015. You were able to establish physical inventory figures as follows:
LA. LB. January 1, 2015 LC. June 1, 2015
LD.Raw materials LE. P 60,000 LF. P120,000
LG.Work-in-process LH.200,000 LI. -
LJ. Finished goods LK.280,000 LL. 240,000
LM.
 LN. Sales from January 1 to May 31, were P546,750. Purchases of raw materials were P200,000
and freight on purchases, P30,000. Direct labor during the period was P160,000. It was agreed with
insurance adjusters that an average gross profit rate of 35% based on cost be used and that direct labor
cost was 160% of factory overhead.
LO.
LP. The work in process inventory destroyed by fire is
LQ. Answer. P265,000
LR.
LS.
LT.
LU.
LV.
LW.