Beruflich Dokumente
Kultur Dokumente
Manila
MULTIPLE CHOICFI: MAIIK FULLY with Pencil No. 2 the letter of your choice ott tlte answer sheet
provicleci. Make the marl< DARK but rlo nrrt use toc rnuch Fresstrre. ERASURES ARE STRICTLY NOT
ALLOWED.
B 1. The auclit of Bannecl Cornpany for the y'ear endecl December 31" 2013 was corrrpleted on
-fhe
March 1.201a. financial statements were sitjned by the managing director on March 15,
20l4ancl 0r.111sys(bytheshareholdersonMarchi! 201,i. I'henextevetltshaveoccitrred.
* On.lairuar.,, 15.2014, a customer orving P900.000 io Banned llled 1or lranknrptcl'' The
ilnanc.iai -ltarcirlents included or', rrllowance firr doubtfill accounts pertaining to tiris
customer cnli, ,.,f p50,000.
{' Banned Cor;pany's issued share capital comprised 100.000 orclinary shares with P100 par
value. The eriiity announcecl a bonus issue of 25.000 shares c-n March l^ 2014.
,'specialized equipment costing P545,000 pr.rrchased on September 1.2013 was destroyed
b,y tire on December 15. 21,13. Banned Company has booked a receivable of P400.000
tl-ont ti-re insurance compan). Aficr the insurance company completetl its investigation on
Febrr-rary l. 2014" it was cjiscovrrecl tirat tire fire took place dr"re to negligerlce of the
machine operator. As a result, the insr-rrer s iiability was zcio on this claim'
What total amourrt o1''':d,lr.rsting events" shoulci lte reporteci on Decenrber 31- 20ll?
a. 1.300.000
b. 1^25U.000
c, 1.345,000
d. 1.445.0t)0
A 2. Bad Compatiy's tria.l balance reflected the. tbll,rw'ing account balances on December3l.20l3:
Accor.rnts recc: val:,ie ( iret't 2.400.000
Financial as:ri:i i.lt ;rVTOCl 600.000
Ac-cunrulaterl r:: 311;,'a uti
1 on on equ ipment and I'urni tttre r.500.000
1 1 00.000
Clash "
lnventory, 3.000,000
Equipment 1.500"000
Patent 400.000
Pr*paid expenses 200.000
Land held for fbture business site 1.800.000
The inventory inclurJed goods held ci-t cor.rsi5:nnrent atnounting to P500.000. The piitent i'vas
classitled as held {lr:;aie on December 3i.2{11-1. \\'hai anror-rnt of total currerll assets should
be repofied on Decembe; J1.2013?
a. 6.600.000
b. 6,800,000
c. 7"200,000
d. 7.1 00.000
D 3. 'lhe otfice riitplriius, .tccount of Sicli Company had a balance at the beginning of 20li of
P80.000 lreli-,ie rli,r ieversiitg errtry. Piiy-ments for purchases of oflice supplies during 2013
;rrriounted io r)50r].000 and were recorcled as expense, A phvsical count at the end of 2013
re',,ealed ofili:e ilrpplies costing P95.000 were on hand. Reversitig enti'ies are recorded by
Sick.'l-he reqrilrerl acljusting entr),ar the er.rd ot'201i will include a debit to
a Ofl'ice Supolies Expense P15.000
b. {Jtl-rce Suptr;iies P15,000
c. Olfice Supplies Expense P485,U00
d, Ofll':e Supplies P95.000
Page 2
B 4. Mount Conrpany' provided the fbllowing account balances c;n Llecemb*r 31.2013:
Ittvetrtorv cn December 3 I . 201 i \\,as valuecl at P"i00"a(r0 (P850.0C0 less l'} l -i0.000
rr.,ritedo*'n ollobsolete inventory). What is the balance of retalned rarnings on Decemberil.
20l l'l
a. 2.001t.00{)
t). 11.000.000
c i.850.000
d. 5.000.000
C 6, Head (lompany preparcr.! quanerll intelint llnancial statements lrnd used the percentage of
credit sales method in cr):nput;ng ,.1,;ubtfirl ar.:sounts. 'l-he credit sales tbr the first. second.
third enc ircirrth quafters totaled P2.000.000, P1.500.000. F'3,500"000. and P4,000.000
respectively. The dor"rbtful account percentages fbr the first. seconrj. thirC and fourth qlrarters
efl-ective fbr thq entirc) year are 2%.2%.4o/o.and 5olo respectively,. Wlrat arnor.rnt of doubtlul
accotlnts eLpurrse shouid be recognized in the fotrrth quurter irrccirre statement?
a. 200.\t00
b. l3'i"500
c. 270.000
d. 550.000
Page 3
i-ias no cash
B 7. Bred Conrpan) :;old goods to w'holesale,:s on ternts ot'5i 15. t-ret -:0' fhe entitv
sales but 50% or customers take advar,tage oi tlte discoittrr based
otl past experience. The
enlrty nsed the gross rnethoii of lecorcling seles. An analy'sis ol accol-tt-its
receivable ou
December I1,2013 revealed the fbllowing:
Age Amount Collectible
- 15 days 00%
0 5,000.0110 1
a. 5.?00,000
b _s.050.000
r 5.070.000
d. 5.000.000
A Oreo Company started operations irr 2011. The loliowing data are abstracted
from the
purchases and sales records:
2All 2012 2013
a 7.100.000
tr. 7.800.000
c. 7.700,00ij
d. 8.300.000
B 10. Ah analysis of the ending inventory accout-tt of Sun Cornpany on December 31. 2013
cliscl'.r:.cd the inclusion of the fbllov"ing items:
i.jl . 400.00r1
h. i;sU.000
c. 750.000
c[. 687.500
A l2..lose Contpany is engaged in dair,r'livestock. The entitl'pro'r'icied the iollorving data fbr
201 i:
C'an'f ing atlloullt of biological assers on JanLran I 5.000.000
lncrease due tc ilrrcirase 2.000.000
Gain attributabie to price change of biological asset 1.000.000
Cain attribr-rtable to physical change of biological asset - 600.000
lVlilk produced during the r,:c.r br-rt r-rnsolil at 1,car'-end 'r 100.000
il'hat tr.ltal antount c1'gair.r .;itoulrj lre recogrriz-ed tbr 201 i']
l. 1.700.000
b. 1.600.000
c. l.l0{1.000
d. 7c)0.000
C 13. On Dcceir.iber 3i. 2011. .ltl llank ilrs :i i-',car', kran icccir.:f,i,: *ith a fhce value of
P6.000.000 dateci .lanuarl l. lfji2 thal is rlLic orr l)eccrritr*'r ii.2()16. lnterest is payable
olli-lllirliy ei'er)' Dcc':nri:e: .j i .l gyr. -f'he borrower rnadi-' tirc :equirecl riteicst pir)'ntent on
Decctttirer .) i , 2'.)l 2 Srri iiiitrrired the oank thai ir,teresi iliclLico on L)ecr,nrfLr,r 3 i . 2013 rvill
be piiicl aI Ittttti;rir;:. I'liere is a high probabilitl that f*rrtiriiiilii i,it;ic:lrr,\,uti:ilts
'rili not be
paiil l-.ceat;:re i.lf'linai..cial difficuritl,. The prevailing nta;rtyi lnicr,jsi rate on f)ecenrber jl.
l0l3 is lu%. l-he PV ot I tbr'3 periods i.s 0.771 atgoh and U.751 ar I0%. What is the loarr
inrpairrlent loss on December 3 l. 201 3'l
er. 1.90i1.0:l(,
b. r"6t8.460
c. I .491 .110
d. 1.368.000
D 14. Qr"rezon Conrpany acqurired new eqr"ripment bv excliarrging r,rsecl equipnterrt with the
fbllow'ing data:
Equipnrerrt s.000.000
AccunrulateC c'leprec iat ion 4.000.000
Irair value r.200.000
Cash receir r:d on exchange 500.000
T'he old and new flsrvi; What antount of gain or
':qr.iipment had siglrificantli cliiferenr ;;1sii
loss should ()ue"-on recogr,ize as a resuli of the exchange'.)
a. 500.00,0 loss
h. 500.0C0 gain
c. 200.00() loss
d. 2U0.000 gain
Page 5
A 15. Duripg 2013. Woocly Company purchased 200,000 ordinary shares ibr P6'300"000 as a
*o,trx-ling investment. Tire entitlL elected to nteasltre the investntent at fair valr-re through
other coniprehensive income. The tair value of tl.iese shares was P6,000,000 on Decenrber
11,2013. The eptity sold all of the shares lbr P34 per share on Decentber 3.2014. inctlrring
p2g0.000 in brokeiage contmissions. \\'hat amount of gain on disposal of financial asset
should be recognized in the incotne siatelllelrl 1'rr l0l4'i
it. 520.000
b. 800.000
c. 210.000
d. 500.000
C 16. On Jaluar;, 1. 201 3. EllyCompanv purchased 1Z% bonc'ls, haviug a tace valrte of
p8.000.000. for I,8,607,000, The bonds provicle rhe bonciholders u'itli a 10% yield" are dated
.lanr"rary 1.2013. and mature Januarv l,2018. with interest receivable I)ecenlber 3l
of each
vear. "l'he business nrodel is to hoid these bonds to coilect contlactLtal i:irsh tlori's. What
antourrt of interest income shourlcl be recogrtized by fbi' 2014'l
ri. 960.000
1,. 860,700
c. 850^770
d. 900.000
C 17. On 3arruary 1" 201i. Aint Cornpanr aci-,Lrired 25?o of the orttstanding ordinary shares o1'
another .niity for p,5.000"000. The can'y'ing amolu'rt of the acquiled shares was P4-000.000'
The excess 9f cost sver carr\,ing amounl ras attributable to an rtuicletrtitlable intangible asset
wtlic6 had an indefilite lif'e. Forthe year endeci December 31. 2013. the investee repofiecl net
income of p3.000.000 apd paicl cash di,,,iclends of P500.000 orr ordinary shares and therealter
issr-icci lt)% stoc[< dil,iilencl. \\1hat is the ploptr carrving amoL]Ilt of the investtrlent itr
associate on Decenrber 31. 2011:
a. 5.000.000
b. 5"750"000
c. 5.625.000
d. 5.575^000
D 18, Reverse Company purcliasecl i0% of anoiiri:i'c'irtity's 500,000 outstanding ordinary shares otl
.lanuary 1.20ti ibr P1.000,000. The investment was accounted for at FVTOCI' On
Decernber i i. 20 i 3. the f'air valite of the inriertment was P 1 "500,000. On January 1 - 2014. the
entity purchased additional 100,000 shares of'the same investee for P3,000.000. On this date'
it was cietermined that the carrying antount oi'the investee"s ttet assets was P9'000.000' All
identitlable assets'carrvir-rg amount eqLraiecl lsip value except fbr land rvhose t'air value
-fhe
exceeded carrying arlount by P1,000.000. investee reponecl eartrings of'P2.000,000 for
2014 and paid no tjividends. What anror.int shoi-rld be reported as investmettt in associate on
December 31.2014?
a. 4.500,000
b, 4"600.000
c, 4"900"000
d, s. 1 00.000
A 19. Doug Company's accounting policy fcr investmeirt properties is thc firir value model. Orle of
its investment properties was measured at P80.000.000 on lJecember 31,2013' I-he property
had been acqr-rired on January l. 20li ibr a total ol P76,000.000. rnade rtp o1'P6q"000.000
paid to the vencior. P3.000.000 paid tc the local autliority'as a property transtbr tax trrrd
P4.000.000 paicl to prof.essionai at1r iser:. T'he Lrseturl lif'e of the property is 40 years. What is
the amount of gain to be recognizecl iii pr'.tlit or loss fbr the yearended December 31.2013'i
a. 4.000.000
b. 7.000,000
c. 8.000"000
d, 5.900.000
Pa6re 6
A 20. On January' 1,2013. Rizal Company purclra-sed a tract of land r,vith an old building which was
razed shorlly after acquisition. The costs incr-rrred in conneclion with the acquisition were:
C 22. During 2013, Sole Con-rpany coristruc-'t:ii hLiiiding costing P18.500.000. 1'hr' rveighted
average accumulated expenditlrres on the bLiilding dLrring 2013 totaled P7"800.000.'Ihe
entity borrowed P4,000,000 at 7o/o on .lanitary 1. 2013. Funds not needed lbr c'onstnlctiorl
were temporarily invested in short-terrrr securitie:;. ancl earned Pi20,000 in intelest revenue.
In addition to the construcrion loan. the entity hacl tv,,o otlter noies outstanciing dLrring the
year. P3.000,000. 10-year. 10% notc pryable datecl October I . 201 1 . anci a 5-,r'ear
P2.000.000. 89'o note pa1,able dated November 2. 2011. 'r\hat anroLrnt ol intr'res1 shorrld be
capitalized on Decenrber I I 20li?
a. 574.000
b. 620.000
c. 509,600
d. 629.600
A 23. On .Ianuary l, 2013. the accurnulated dt'preciation account of Doer Company showed a
balance of P3.700,000. At the end o1'2013. aller the ad.jrrsting entries w'ere posted. it shorved
a bala'tce of P3,950,000. During2013" orre of tl.re machines rvith cost of P1,250,000 was sold
fbr P605.000 cash. 'fhis resulted ir-r a loss of P40.000 ]io ollier assets u,ere disposed o1'
clLiring tlre year. How rnuch was the depreciatii:n e\pensc fbr 2013'l
.i 855.000
b. 93s.000
c 250.000
d. 60s.000
rage t
C 24. llercher Company purchasecl a machin,'1.or P8,000.000 on.laniiarY l. i013. l'he rltrchine's
r:sefiri is i0..,.u.r. w.ith ir.r resiiirral r.'altte and is deprcciated Lrsirlg the cioLrble tli:i:lining
lilt
balance method, Also on tliis date. the cntitt, receii'ed a grant l 1'P-500.000 and the entitl''s
potic,v- is to cJedr.rct thc grant fror.n the cost uf the.assel. Orr.lrinttar-t' 1.
j014. tlre entitl'violated
certairr cor-rrJitions atti,ched to tl-re grant itnd hacl tc-, retrirn P500"000 to the goverlllllellt. What
arnount of deprec!ation expen"se should be recogt'tiz-cd tbr 2Ul4l
a. i.200.000
b. 1.280.000
c. 1"380.000
.i 1.500.000
D 25 On .lapuary, 1. 20i3. Stigma Company purchased buiitling at a cost of P10.000'000 w'ith a
lO-year gselLrl lif'e arrd no residual i,aiLre. The entity r,rsed the straight line deprecation
Og Janu:r.y,i.2015. the entity decideci to use the revaluation nrodel and it ivas
'ret6ocl.
cletermipecl that the thir value cf the equipnrent on this clate is P12.000.000' The inconre
tax
r.ate is 30%. \.Vhat is included in the entry to record the revalrtation on.!s.nuar)' l.
2015'l
B 26. Ol.Ianuary 1.2013, Act Company pr.rrchased equipurent rviih a cost of P10.440.000' a Lrsefirl
life ol9 vears and nc residr-ral value. The entity Lrsed straight line depreciation' Ott Decenrber
ll^ l0l3 ancl Decernber 31.2014. the enrit\,determinecl that impairment irrdicators are
year etld:
ilreseut. fhe follou,ing inlonlation is available fbl ir-npainrlent testing Llt each
Dccember 31.2011 f)ecember 3l , 201'l
B 29. In an elfbrf to increase sales, Blue Coiitpany iriarig,lratecl a sales prornotion campaign on
.lune 10.2013, wherelry the entity placeci i] colrpoit in eacli package of razc.'r blacies sold. the
coupolls being redeemable tbr a premium, Each premium costs P50 and t-ive coupons must
be presented by, a customer to receive a prentium. The entity estinlated that only 40 percent
of ine coupons issued will not be recieetned. For tiie six tnonths ended December 31' 2013'
tlre t-otlowing information is available:
a, i.000.000
b. 1.400,000
c. 1.800.000
d. 2.400.000
C 30. Op January 1.201-i, Kegin Contpany sold a P2,000.C00. t\'.'i;rnl\'-\'ea':', 8 percent bond issue
fbr P2.120"000. Each F1,000 borrci has trr,o detachable $'arrants. eaclr oi'rvhich permits the
purchase of olre share tbr P30. The shares have ii par i'altte oi P25 per share. Immediately
atler the sale of tire boncls, the fair values ale bonds vuilhout'warrilrtls 95. lvarrant 21. arld
ordinary share 28. Whai is ir-rcluded in the en1r,y to recor.j tl:c h'.,nd issile?
a. Credit share wa.rra.nLs ouistlnding Pii'l.C(JL)
tr. Credit bo:rci prcrrrium P36.01t0
c. Debit honci discount P80.000
d. Credit bond prr-mium Pi2i,'.000
D .il. Foot Compei:ry is involveci in iitigation regariling a fatiltv pro.lit;t suici in a prior 1'ear. l'he
c'r-rtity has icnsuite,J v.,irir its,ittorne),anc!detenlined ihat tlrere is:t iCc", c'iauce of losing the
case. T'tre attcrlte.l cstiirated tl-rar tlie tffiolriri.rfpay'ttrcnt *'oul,.l i,; P{110.{.'r10. l\'hat alrount
of liabilitl,is recognized in i.lie statelnent oil'inanciili posrtioit at iire cuC of the currerrt year?
a. 50rJ.(10(j
b. i00.000
c. 200"000
d. rJ
B 32. Dgrirrg 2013. Brave Clonipar:v decided ti; r^,,riieo1'l'Pi.d0tj.C00 tl'o:.n ittventol')'n'hich w'as
over 5 .vears old as it was obsolete. It rvas d;scoi'ered that saics cl P1.500.000 had been
omitttrii front the lrnanciril stetements of 201; Wh.iit ioti.il arriolrnt slto;.rld be reported as prior
p,-'riod err<-'r lir the financial statemen.s oi'101-l l
a. 1.000.000
b. 1,500.(100
c. ?"500.000
d.0
B 33. Enrill'Conipany had saies of P4.0C0,00C during l)ecentber 201?'. Experience showed that
nrerchandisrj eqLtaling 'lo,/o af sales will be retLlrrled wittrin 30 Cays itnd an aclditional 3% rryill
be retullr:d'urithiir 90 davs. Retumcd nrerchi,:rdise is.eadily resaliible. In addition.
merchandise equaling i50zb rii sales rvill b* erclr;ir.lge,-i l'ol' trterchairciise of eclual or greater
viilue. What aniount slroultl bt'repofteLl i1s n.lt sales tirr [,')rr:']lt'toer 1.013'/
a. 4.000.1t00
b. r.600.000
c. 3.000"000
d. i.400.000
Ilage 9
B i4. In 1013" Helen Company decided to di:;continue its Eleclronlcs Division, a separatelv
identiflable cotnponent of business. On f)ecernber i1.2013" thc clivision has not been
conrple'tely scld. Ilon'el'er, negotiatiorrs for the tinal and cornpiete sirle are progressing in a
positive manner anr1 it is probable that the disposal r','ill be contpletecl 'uvithin a ),ear.
Analysis of the recorCs {br the 1'ear clisclosecl tire fblkr*'ing reiatir.e to the Electronics
Div isiorr:
Operating lo:is firr the year 8,000.000
l.ris:; on disposal cf sorle Electronics []ii,isiorr assets riuring 201-1 500.000
Expected operating loss in,,"014 preceding trrral disposal r.000.000
Expected gain in 2011 c:n disposal of division 2"000.000
\Vhat an:ount shoulC be reporteC as pretax loss fiorit Cisconii;iur:rl r.:perrtioir in 20ij?
il 8 000.000
t,. it.500"000
c. 9.500.000
d. 7.500.000
B 35, Yves Company and its divisir-rns are engaged soiely'in rranut"acturing. 'l-he entity'reported
the operating profit or loss of its divisions at Segnrenr A P20.000.(Jt)0 profit. Segment B
P10.00C"000 loss, Segnrent C P6,000.000 loss. St'gnrent I-1 i)t.Ulr0.{i0(,r loss, and Segruent E
P2"000.000 profit. What is the nrirrirrunr c,pc.':ltirrg urtfit or lr)!s lbr a se6lment to be
classilleci as reportabie segnrent?
a 1.100,000
b. 2.500,000
c. 2"000.000
cl. 1.700.000
C 37. On.Ianuary 1,201i" Nikita Company receiveci a.5-.,,err',,ariable interest rate loan of
P6.000.000 witlr interest payrnent at the end of each ,"',:'.rr anrl the principal to be repaid on
Decenther:i1.2017. The interest rate lor 2013 is 8% anci tire rate in each slrcceeding year is
eclual tr.-', rttarket interest rate on January I ol'each y'car. On Jarruary i" 201i. tlre entity
entereti into an interest rate s\,ap agreenrent r.r'ith ii financiill instilution to the eff-ect that the
entitl'w'ill receive a swap payment if the interest on.lanrari, I is nio'e tl-ran u?o atrcl wilI nrake
a swail payrnent if the interest is less than 8%. The swap pa),ireills are n-ialie at tlre end of the
),ear. This interest rate swap agreenrent is ciesignated as a eiish llon,herlge. On.lanLrarl' l.
20i,4. the market ratc'of interest is 9ozir. fhe present l'alue of an ori.linarv annuitl,of I at 9?6
ii;L lbur pi:riods is 3.14. fhe prescnt i'alue of ari or,,1inar'\'rrrnriit\ ol I li t)ot tilr fir'..'periocls
is 1.89. Orr December 31.20ii. rr,'iuri amotint should be rejlortc(l as dcr-ryirtive asset'J
a. I j j.400
b. 240.000
c. l9-+.+00
d.0
Page l0
B j8. On.lanuary 1.2011. \ianessa Company acriuiled equiprtrent to be r-tsec-l in its matrtrtactLrrirlg
operatio,s. The eqLripment has an estin:aietJ useful lit'e ol'10 years aud att estintated residrral
value of P50"000. ff,. depreciatior-r applicable to this eqr-ripurerrt was P240,000 fbr
2013
computecl under the sum of y.urr' digiti, What rvas the acquisition cost of the eqr'ripment'7
a. 1.650,000
h,. 1"700,000
c. 1"100.000
d. 2"450.000
'I-he fblltlrving carrl'ing
C i9. Eunice Company purchased another erititi, for P5,000.000 cash.
amolnrt and fair roiu. were associated with the itenrs acqLrired in this birsiness conrbination:
l'he fair value associated with the acquired erltity'' s governnlent contrllct is not l:ased 0t1 ilily
legal or contractual relirtiollsirip. In acldilion. for obvioLrs reasott. there is no open tttarket
tlading fbr an intangible ol this sort. \\ihat is tlti .ltiotli' iil alisirrg from the bttsitru'ss
conTbirration?
a. 3"000.000
b. -r.600.000
c. 4.000,000
d.0
A 40. Il.aeapl Cornpany incurred the fbllou,ing costs dLtring the crtrretrt Yeat':
ln the inconre statenteltt fbr the cllrrent y-tar. r,lhat anlollllt shotrld be reported as lesearch and
devel,rpuient expensc?
a. 5.200.000
b. 4.700,000
c. 3.850.000
d.3,350.000
ENT)