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1.

0 year eld 7, 000 3, 500 x 50 *75,000


1.5 year old 7.000 5,250 x 20 - >5,000
2 .6 ycsar old 10.500 - 7,000 x 50 = 175,000
2.5 year old 10.500 3,750 x 20 = 35,000
mc;igo
2.0 year old 70 x P7,000 P, 490.000
,3.0 year old 79 x P10,500 P 735.000
Total PI,225,000
25. D
27. D'
Revenue from sale PS,000,000
Increase in fair value of aquaculture stocks:
Opening aquaculture stocks- at fair value:
(7.0 x P.5,000 + 25 x PI0,000 + 25 x 15,000 + 15 x 20,000) PI,205,000
Closing aquaculture stocks - at fair value;
(15 x P5.000 + 25 x P10.000 + 20 x P15.000 + 30 x P20.000) 1.225.000 200,000
Total net income from aquaculture P6.200.00
20. A
29. A.
30. A ...............
31. D
.0!
32. C 320,000 x 20% 10,000 goodwill amortization
33. D
34. C
Transaction cost ( 50,0001
Dividend .Income 200,000
Unrealized gain 81.25 x 40,000 - 3,000,000 250.000
Net amount 400.000

35. D
Fair value of investment 40,000 x 64 P2,560,000
Cos i. 3,000,000
Impairment loss ( 4 4 0., 000)
Dividend income 200,000
Net (P 240,000)

36. C
Cost P4,500,000
Nat income 4,000,000 x .40 1,600,000
OCI 500,000 x .40 200,000
Dividend•3,000,000 x .40 (1,200,000)
Carrying value P5,100,000
Share in the proceeds 6,600,000 x. 1,650,000
Deemed sold 5,100,000 x 15/40 (1,912,500)
Carrying value P4.637.5O0

37. C
Cost 3,000,000 x .614 + 120,000 x 7.722 = P2,768,640
Discount amortization ( 1/1 -€/30); .
Interest income 5% x 2,760,640 = 138,432
' Interest receive 120*000 16,432
Amortized cost 6/30/14 P2,7077072

Interest income 1/1/14 to 3/30/14 130,432


Interest Income 7/1/14 to 12/3V14 2,787,072 x 5% 139,353
Total interest income 277.786

38. B
39. C
40. A

PRACTICAL ACCOUNTING l - FIR ST PRE-HOARD EXAMINATION j ,,/v

\
, mV

17. B
13 . D
? 898.500 1,460,000
:rc 80,000 0
PD ( 18,000) 0
PR { 60,000) PR ( 80,000
NP 900.500 NP 1,380,000 65.2536%
IB 250,000 IB 390,000
TGAS 1,150,500 TGAS 1,770,000 = 65,00%
TGAS PI,770,000
Net sales 1,234,800 - 95,550 4- 98% 1,162,500
Estimated inventory end P 607,500
Inventory end, average 607,500 x 65.00% - P394,B75
Inventory end, FIFO 607,500 x 65.25% = P396,394

19. B
Inventory, January 1 P 750,000
Add: Purchases, January to September 14 2.770.000
Total goods available for sale P3,520,000
Less: Estimated cost of sales (P4,910,000* x 60%) 2.946.000
Estimated inventory, end P 574,000
Less: Salvage value of damaged inventory 90,000
Inventory loss P 484,000

Accounts receivable, end P 530,000


Add: Collections of receivables 4,230,000
Sales return 70,000
Write-off 50,OOP
Total P4,880,000
Less: Accounts receivable, beginning ■;V 350,000
Sales on account P4,530,000
Add; Cash sales 450,000
Total sales P4,980,000
Sales return ( 70,000
Net sales P4,910,000*
20. D
21. b'
Sales 30 units @ P20,000 P600,000
Transport cost P40,000 x 35/50 (, 28,000) '
Return transport cost 1 4,000)
■Commission on sold units 600,000 x 15% ( 90,000)
Net income (118,000)
Cost of purchase or. sold units'" ' P3GOVOOO
4- units sold 30,000
Original purchase price P 12,000 per unit

22. B
Building Tuition Fee
1/2/14 Deferred Grimt P180, 000', 000 iV' - P60/ O00,000f'
Realized 2 years;
2014 ( 36,000,000) (15,000,000)
2015 ( 28,800,000) (15,000,000)
12/31/15 Deferred grant £115,200,000 P30,000,000

23. C
24 . D
25. C
Price ;.;£
Price change: Pec. 31 Jan. 1 of July 1
1.0 year old 3,500 2.500 x 50 - ' 50,000
1.5 year old 5.250 4.500 x' 20 = 15,000
2.0 year old 7,000 5,000 x 50 = 100,000
2.5 year old 8.250 7.500 x 20 “ 15,000
Total 180.000
1

PRACTICAL ACCOUNTING 1 - FIRST PRE-BOARD EXAMINATION Page s of 4

■;v
; ' »*' !, ;H--.
09. C"
Balance per book P6,000,000
T irae depo s it4, - 120 days ( 500,000;
• Pci; f'da tied check { 125,000)
r- -Stale check' ; so, coo
Maintaining balance ( 500,000)
Commercial' paper (2,100,000)
Correct cash balance £2.-7. 25,000

10.
Total PI,785,000 PI 932.000
Deposit in transit ~ Nov ( 240,000)
Deposit in transit ~ Dec. 118.000
Credit memo ~ Nov. 150,000)
Credit memo - Dec. 120,000
Errors- ( 20,000) ( 15,000)
Error 60,000
Correct receipt Pl.J9J.iOOO P1*795J)00

ii. c
Total P977,600 P986,080
Outstanding check - June (162,480)
Outstanding check - July 200,000
Service charge June { 12,000)
Service charge - July 10,000
NSF checK - June ( 75,000}
NSF check - July 60,000
Error 11 : 18,000
Error ( 5,000) ( 50,000)
Correct P973.600 P97 3^,600

12.
13.
35 x. 140 x 95%. x 92% = 4,28.2.60
15 x 140 x,95%,x 93% = 1,855.35
Total P6.137.95
14, B
Celling price P7 5,0.00 P108,000
Cost to sell (21,000) ( 15,000)
NRV P54,000 P 93,000
Cost 56,600 90,000
-
Lower P54 , OOP' P 90,.000 El* Mm
15. C
Sales P5,720,000
Gross'profit 2,141,650
■; • ' f ■(. <V!Vi- -inn
;' -
L v.* L .'4 j \y i/'io 2* * . \ « *! ; ■•1

"Less: total purchases 3,192,250**


inventory beginning 1,367,000
Inventory beginning units 21,700
Unit ’'dost 63.
Inventory end 16,000 units P981,000
July 12 acquisition 2,000 6 P60 120,000
July 23 acquisition 14,OOP 8 P61.50 861,000
**Purchases; 10,000 x 65 + 12,500 x 62.50 + 15,000 x 60 14,000 x
61.50 - P3,192,250
16. C
Inventory end (FIFO) 363,900 6,900
October acquisition 270,300 5,100 units
September acquisition ;• l1 -’ 93.600 @ 52- $,8 00 units

Ave unit cost. 966,800/19600 «= P51.98


Inventory end (Average) 6,900 x 51.98 P658,662.

PRACTICAL ACCOUNTING 1-FIRST PRE-BOARD EXAMIN ATION ri>s<: 21’/ <


m^f\ReSA
/>/The Review School of Accountancy
«Tel. No. 735-9807 & 734-3989

PRACTICAL ACCOUNTING I Saturday, July 18, 2015


First Pre-board Examination 1:00 p.m. to 3:00 p.m.

Sofefion

l. C

Equity investment to profit or loss, at cost 150, COO


Prepaid insurance 30.000
Cash and cash equivalents 330.000
Inventory, at cost 900.000
Accounts receivable 480.000
Asset held for sale (fair value) 400.000
Provision for returns and discounts 50,000)
Provision for inventory decline 100,000)
Fair value allowance on equity investment 70.000
Total P2,210,000

Cash 340,000 - 300 - 5,000 334,700


Acct receivable 050,000 + 5,000 - 250,000 -8,000= 597.000
Note receivable = 360.000
Prepaid rent = 20,000
Merchandise inventory 600,000 + 200,000 + 80,000 880,-000
Accrued interest income 360,000 x 6% x 90/360 ~ 5,400
Trading investment 300,000 - 20,000 =■ 280.000
Total P2.477.l00
03. C
B Se l l i n g pr i c e ;
Down P15,000
Balance (30,000 x 2.531295) 75,939 P90,939
Carrying value, 80,000
Gain P10,939
Interest income (75,939 x 9%) 6,834
Total P17,7?3
4. C
5. C
connection .10, 000 10/80 x 70,000 8,750
access and trouble shooting 70/80 x 70,000 x ^ 30,625
t ot al 39,375

06. A

Total selling price P480,000


x Ratio (P12,000/P500,000) 4.8%
Deferred Warranty P 23,040
x Ratio 11/12
Realized revenue F 1.920

07. A
P/L 10,000,000 - 5,000,000 - P5,000,000
I/L 12,500,000 - 15,000,000 2,500,000
Net , P2.500.000
*• '

08. A
Carrying value as of January 2, 2014 P4,300,000
Less; 2014 depreciation (P4,300,000 - 300, 000 + 20 years) 200,000
Carrying value as of December 31, 2014 P4,100,000
Recoverable amount P4,000,000

PRACTICAL ACCOUNTING 1 - FIRST PRE-BOARD EXAMINATION Page J of 4