FAR QUIZ BEE (easy round)

On September 1, 2021, Shogun Company purchased a machine for P300,000 that was placed in service on October 31, 2021. Shogun incurred additional costs for this machine, as follows:

Transportation cost 14,000

Installation cost 16,000

In Shogun’s December 31, 2021 balance sheet, the machine’s cost should be reported at

• 314,000

• 330,000

• 316,000

• 270,000

Contains all the assets, liability and stockholder’s equity accounts

• General Ledger

• Income Statement

• Special Ledger

• Statement of Cash Flows

Ayaka Company incurred the following costs:

Materials 850,000

Storage costs of finished goods 200,000

Delivery to customers 50,000

Irrecoverable purchase taxes 30,000

At what amount should the inventory be measured?

• 880,000

• 630,000

• 800,000

• 900,000

This information is useful in assessing an entity’s investing, financing, and operating activities

• Cash Flows

• Income Statement

• Economic Resources

• Balance Sheet

In the petty cash fund of Ningguang Company as of July 4, 2021, Keqing found the following composition of the petty cash fund:

Bills & coins counted 204,500

Approved and signed petty cash vouchers:

Dated June 2021 30,300

Dated July 1-4, 2021 80,500

IOU from Zhongli, an employee 150,000

The company’s reporting period ends on June 30.

What is the correct balance of the petty cash fund?

• 0

• 285,000

• 234,800

• 150,000

Under the accrual basis of accounting, revenues are reported in the accounting period when

• Cash is received

• Revenue matches the expenses

• Service or goods have been delivered or rendered

• None of the above

The bonus agreement of Qiqi Company provides that the general manager shall receive an annual bonus of 10% of the net income after bonus and tax. The income tax rate is 30%.

The general manager received P280,000 for the current year as bonus.

What is the income before bonus and tax?

• 4,000,000

• 4,280,000

• 2,800,000

• 3,720,000

Owner’s Equity is equal to

• Assets + Capital

• Asset – Capital

• Assets – Liabilities

• Capital – Liabilities

Jade Chamber Company reported the following liabilities on December 31, 2020:

Accounts payable and accrued interest 100,000

12% note payable issued Nov. 1, 2019

(maturing July 1, 2021) 200,000

10% debentures payable, next annual principal

installment of 50,000 due February 1, 2021 700,000

On Dec. 31, 2020, the entity consummated a noncancelable agreement with the lender to refinance the 12% note payable on long-term basis.

What total amount should be reported as current liabilities on Dec. 31, 2020?

• 150,000

• 750,000

• 300,000

• 200,000

When bank receives cash from a depositor, the cash should be credited to

• Accounts Receivable

• Cash in Bank

• Deposit Liability

• Accounts Payable