Beruflich Dokumente
Kultur Dokumente
JOSE
2.
4.
5.
6.
B.
as advertising
the year ended
P140,000
P155,000
P 75,000
250,000
25,000
175,000
P1,000
1,500
2,000
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P1.MB5.14
8.
b. P53,500
d. P50,000
Rabb Co. records its purchases at gross amounts but
wishes to change to recording purchases net of
purchase discounts. Discounts available on purchases
recorded from October 1, 2012, to September 30,
2013, totaled P2,000. Of this amount, P200 is still
available in the accounts payable balance.
The
balances in Rabb's accounts as of and for the year
ended September 30, 2013, before conversion are
Purchases
Purchase discounts taken
Accounts payable
P100,000
800
30,000
Labor = P3,000
During February 2014, the entitys production team
developed the manufacturing technique and made
further modifications necessary to bring the
inventories to the conditions specified in the
agreement. The following costs were incurred in the
testing phase:
Labor = P11,000
Labor = P65,000
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P 90,000
85,000
32,000
220,000
52,000
180,350
30%
3,500
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P1.MB5.14
P40,000
10,000
32,000
14,000
and
Estimated life
10 years
25 years
15 years
Cost
P470,000
750,000
180,000
P62,400
P4,400
10 years
P10,000
P250
6 years
P15,250
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12/31/13
P 25,000
195,000
12/31/12
P 25,000
195,000
695,000
915,000
650,000
870,000
Less accumulated
depreciation
400,000
P515,000
370,000
P500,000
Cash
Accounts receivable
Inventory
Net equipment
Patents
Goodwill
Accounts payable
Long term debt
Carrying
amount
P 200,000
250,000
350,000
700,000
400,000
500,000
( 200,000)
( 300,000)
P1,900,000
Fair value
P 200,000
250,000
400,000
700,000
450,000
?
( 200,000)
( 300,000)
P2,250,000
125,000
1,600,000
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P1.MB5.14
a.
b.
c.
d.
Risk of
Accounting Loss
P
0
P230,000
P230,000
P250,000
Off-Balance
Sheet Risk
P
0
P
0
P20,000
P20,000
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a.
b.
P 80,000
P100,000
c. P120,000
d. P200,000
P236,000
368,000
328,000
100,000
P 60,000
60,000
80,000
360,000
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P1.MB5.14
Issued
On
1/1/14
7/1/14
Total Value
P500,000
720,000
Consumer
Expiration
Date
06/30/14
12/31/14
Amount
Disbursed
as of
12/31/14
P236,000
300,000
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12/31/14
P8 million
P10 million
6 million
5 million
30%
30%
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P1.MB5.14
42. Net income for Vivo Company for the calendar year
2013 and 2014 is shown below. A review of the
accounts disclosed the following errors:
Net income per books
Errors disclosed:
Equipment purchased at
year-end charged to
expense (with estimated
10-year life)
Increase of Reserve for
Contingencies charged
to operations
Overstatement of inventory
at year-end
Goods purchased not
recorded as liability and
not included in inventory
Rent received in advance
Unpaid salaries not taken up
in the books
Insurance premium on oneyear fire policy taken
and paid on May 1,
2014, all charged to
expense
2013
P75,600
2014
P96,900
10,000
12,000
3,000
4,000
1,500
900
1,200
P24,000
11,200
13,700
8,400
P1,200,000
24,000
50,000
45,000
20,000
5,000
840,000
18,000
76,000
35,000
85,000
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P1.MB5.14
P 800,000
40,000
1,200,000
60,000
P21,000
25,000
10,000
70,000
5,000
increase
increase
decrease
increase
decrease
P7,680,000
406,000
P15,000
P12,000
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