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WorksheetsACCOUNTING 101 QUIZ 2
Total questions: 90
Worksheet time: 2hrs 46mins
Shelby and Mortonson formed a partnership with capital contributions of $300,000 and $400,000, respectively. Their partnership agreement calls for Shelby to receive a $60,000 per year salary. Also, each partner iss to receive an interest allowance equal to 10% of partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $135,000, then Shelby and Mortonson's respective shares are:
$67,500; $67,500
$92,500; 42,500
$57,857; $77,143
$90,000; $40,000
The disadvantages of the partnership form of business organization,
compared to corporations, include
the requirement for the partnership to pay income taxes.
the legal requirements for formation
the extent of governmental regulation.
unlimited liability for the partners.
Adjustments are often prepared:
After the statement of financial position date but dated as of that date
Before the statement of financial position date and dated after that date
After the statement of financial position date and dated after that date
Before the statement of financial position date but dated as of that date
Which of the following is characteristic of a change in an accounting
estimate?
It should be reported through the restatement of the financial statements
It makes necessary the reporting of pro-forma amounts for prior periods
It usually need not be disclosed
It does not affect the financial statements of prior period
Which of the following statements is false?
A certified check should not be included in the outstanding check
A certified check is a liability of the bank certifying it
A certified check is one drawn by a bank upon itself
A certified check will be accepted by many persons who would riot otherwise
accept a personal check
These are accounting information users who are interested in information
that enables them to determine whether their loans, and the interest attaching to
them, will be paid when due.
General public
Shareholders
customers
lenders
At the beginning of the year, the assets of BigTime Services were P495,765
and its owner’s equity was P257,321. During the year, assets increased by
P123,456 and liabilities increased by P25699. What was the owner’s equity at the
end of the year?
(a)
The liabilities of Tanda Foods equal one-third of the total assets and the
owner’s equity is P3,563,211. What is the amount of the liabilities?
(a)
Leonardo Company started operations in 2013. For the year ended December
31, 2013, Leonardo had the following data:
Purchases for the year 8,000,000
Inventory at December 31, 2013 2,500,000
Collection from customers 3,000,000
Leonardo sold all of its products on credit and has a gross profit of 20% on
sales. What is the balance of Leonardo’s accounts receivable on December 31,
2013?
(a)
It is the first process used in accounting. It refers to the
identification of events as to whether they are recognized or not in the
financial statements
(a)
Primary users of financial statements under the Conceptual Framework
include which of the following:
I. Existing and Potential Investors
II. Employees
III. Lenders and other Creditors
IV. Suppliers and other Trade Creditors
V. Customers
VI. Government and their agencies
VII. Public
VIII. Professional Accountants including auditors
I, II, III
I, II, IV
I, II, III,V,VII,
I, III
Which of the concepts relates to using the allowance method in accounting
for accounts receivable?
Bad debt expense is based on the actual amounts determined to be uncollectible
Bad debt expense is an estimate that is based only on an aging of the accounts
receivable
Bad debt expense is an estimate that is based on historical and prospective
information
Bad debt expense is management's determination of which accounts will be sent
to the attorney for collection
Balance per bank is less than correct balance. No error was committed.
There must be
Outstanding checks
Deposits credited by the bank but not yet recorded by the
company
Bank charges not yet recorded by the company
Deposits in transit
All cash receipts are deposited intact and all cash disbursements are made
by means of check. This internal control is known as
(a)
One-Day-Millionaire received cash (P106,208 from Customer A and P53,104from Customer B) in advance for revenue that will be earned later. The cash receipt entry debited cash and credited unearned revenues. At the end of the period, P51,151 is still unearned relating to the services to customer A and P13,331 is earned relating to the services to customer B. The adjusting entrywill include a credit to Revenue account of how much?
(a)
On August 3, 2013, Pogi Traders purchased from a supplier merchandise with
a list price of P50,000, subject to a trade discount of 15%. The goods were
purchased on terms 2/10, 1/15, n/30, FOB Destination. Pogi paid P2,500
transportation costs. On August 7, Pogi returned merchandise with a list price of
P10,000. On August 14, Pogi paid the amount due. The amount paid on August 14 is.
(a)
On September 21, 2013, Ganda Traders purchased from a supplier merchandise
with a list price of P125,000, subject to a trade discount of 10% and 10%. The
goods were purchased on terms 3/10, 2/15, n/30, FOB Shipping Point. The supplier
paid P5,000 transportation costs. On September 30, Ganda returned merchandise
with a list price of P25,000. On October 2, Ganda paid the amount due. The amount
paid on October 2 is.
(a)
Nami company’s stockholders’ equity at December 31, 2013 consisted of the
following:
Preferred stock, 12%, P50 par, 20,000 shares issued 1,000,000
Common stock, P25 par, 100,000 shares issued 2,500,000
APIC 200,000
Retained earnings 400,000
Retained earnings appropriated 100,000
Revaluation surplus 300,000
Dividends on preferred stocks have not been paid since 2011. The preferred stock
has a liquidating value of P55 and a call price of P58. What is the book value of
the preferred stock?
(a)
Sanji Co.'s accounts payable balance at December 31, 2013 was P1,500,000
before considering the following transactions:
Goods were in transit from a vendor to Sanji on December 31, 2013. The invoice
price was P70,000, and the goods were shipped f.o.b. shipping point on December
29, 2013. The goods were received on January 4, 2014.
Goods shipped to Sanji, f.o.b. shipping point on December 20, 2013, from a
vendor were lost in transit. The invoice price was P50,000. On January 5, 2014,
Sanji filed a P50,000 claim against the common carrier.
In its December 31, 2013 balance sheet, Sanji should report accounts payable of
(a)
On December 31, 2012, Roronoa Company had the following cash balances:
Cash in bank 1,800,000
Petty cash fund (all funds were reimbursed on 12/31/2012) 50,000
Time deposit (due February 1, 2013) 250,000
Cash in bank includes P600,000 of compensating balance against short-term
borrowing arrangement on December 31, 2012. The compensating balance is legally
restricted as to withdrawal by Victor. In the December 31, 2012 statement of
financial position, what total amount should be reported as cash and cash
equivalents?
(a)
Based on the physical inventory taken on December 31, 2013, Chopper
Company has an ending inventory costing P950,000 but with a fair value less cost
to sell of 750,000. During the year 2014, Chopper has yet to sell this inventory
due primarily to the nature of the business. On December 31, 2014 the inventory
has a fair value less cost to sell of P1,100,000. In the December 31, 2014
balance sheet, what amount should the inventory be valued?
(a)
Comprehensive income does not consider the effect of
(a)
On April 1, 2008, Mugiwara Co. purchased a building for P 100,000,000. The
building has an estimated life of 50 years. 9 months depreciation was taken on
the year of purchase and the book value of the building on December 31, 2013,
after depreciation adjusting entry, is P 90,512,500.
Using straight line depreciation, solve for the salvage value.
(a)
On January 1, 2008, Trafalgar Co. purchased a building for P 50,000,000.
The building has an estimated life of 20 years. Full year depreciation was taken
on the year of purchase and the book value of the building on December 31, 2013,
after depreciation adjusting entry, is P 26,125,000
Using Sum-of-the-years-digit method of depreciation, solve for the salvage value.
(a)
The following amounts are shown on the 2013 and 2012 financial statements
of Salamander Co:
2013 2012
Accounts receivable ? 470,000
Allowance for bad debts 20,000 10,000
Net sales 2,600,000 2,400,000
Cost of goods sold 1,900,000 1,752,000
Salamander Co.’s accounts receivable turnover for 2013 is 6.5 times.
What is the accounts receivable balance at December 31, 2013?
(a)
The following information pertains to Heartfilia, inc. for the year ended
December 31, 2013:
Credit sales during 2013 4,450,000
Collection of accounts written of in prior periods 170,000
Worthless accounts written off in 2013 191,000
Allowance for doubtful accounts, Jan. 1, 2013 155,000
Heartfilia, Inc. provides for doubtful accounts based on 1 1/2% of credit sales.
What is the balance of the allowance for doubtful accounts at December 31, 2013?
(a)
net loss is P132,000 and the partners agreed that certain asset is to be revalued
at P176,000 from its original cost of P110,000. The partners agreed further to
pay BossKenn P495,000 in settlement of his interest. The remaining partners,
BossSoji and BossArvee continue to operate under a new partnership, Bosses’
partnership.
What is the total capital of Bosses’ partnership?
(a)
Makarov Company’s checkbook balance on December 31 2013 was P5,000,000. In
addition, Makarov held the following items in its safe on that date:
Check payable to Makarov, dated January 2, 2014 in payment of a sale
made in December 2013 not included in December 31 checkbook balance 2,000,000
Check payable to Makarov, deposited December 15 and included in
December 31 checkbook balance but returned by bank on December 30
stamped “NSF”. The check was redeposited on January 2, 2014, and
cleared on January 9, 2014 500,000
Check drawn on Makarov’s account, payable to a vendor, dated and
recorded in Makarov’s books on December 31, 2013 but not mailed until
January 10, 2014 300,000
The proper amount to be shown as cash on December 31, 2013 should be
(a)
Following data are selected information for Quattro Puppy Company for the
current year:
Cash balance, January 1 130,000
Accounts receivable, January 1 190,000
Collections from customers 2,100,000
Shareholder’s equity, January 1 380,000
Total assets, January 1 750,000
Total assets, December 31 880,000
Cash balance, December 31 160,000
Accounts receivable, December 31 360,000
Total liabilities, December 31 390,000
The net income for the current year is
(a)
Purchase of land 3,900,000
land survey 52,000
fees for search of title for land 6,000
building permit 35,000
Temporary quarters for construction crews 107,500
Payment to tenants of old building for vacating premises 46,000
Razing old building 470,000
Excavating basement 100,000
Special assessment tax for street project 20,000
Dividends 50,000
Damaged awarded for injuries sustained in construction (no
insurance)84,000
Costs of construction 29,000,000
Cost of paving parking for adjoining building 400,000
Cost of shrubs, trees, and other landscaping 330,000
What is the amount to be capitalized as the cost of the Building?
(a)
Which of the following statements regarding accounting concepts is/are
correct?
I. Under the materiality concept, items deemed material and affect decision
making should be separately disclosed.
II. Underlying assumptions are those that are mentioned in the Conceptual
Framework; Implicit assumptions are those that are not mentioned in the
Conceptual Framework; Pervasive concepts are those that affect virtually all
aspects of accounting.
III. Under the Cost/ Historical Cost Concept, the value of an asset is to be
determined on the basis of acquisition cost.
IV. Under the matching concept, revenues are matched with expenses to properly
determine the profit for the period
I,II
I,II,III
I,IV
I,II,IV
Easy Inc. received a 3-year, non-interest bearing trade note for P50,000 on January 1,
2012. The current interest rate at that time was 15% for similar notes. The Company
recorded the receipt of the note as follows:
Notes Receivables 50,000
Sales 50,000
What is the effect of this accounting for the notes receivable on the Company’s profit for
years 2012, 2013, and 2014 and the carrying value of the said receivables at the end of
2014, respectively? (Indicate the effect only) .
ANSWER MUST BE UNDERSTATE, OVERSTATE , NO EFFECT PERO 4 YRS YAN AH
(a)
On December 31, Ruth Company has the following data:
Trade receivables 232,500
Allowance for uncollectible accounts (5,000)
Claim against shipper for goods lost in transit, FOB shipping point 7,500
Selling price of unsold consigned goods 65,000
Security deposit 75,000
How much is the total current receivables?
(a)
X Factor Corporation is installing a new plant at its production facility. It has
incurred the following costs:
Purchase price of plant – P2,500,000;
Initial delivery and handling costs – P200,000;
Cost of site preparation – P600,000;
Consultants used for advice on the acquisition of the
plant – P700,000;
Estimated dismantling costs to be incurred after 7 years – P300,000;
Operating losses before commercial production – P400,000.
The total costs that can be capitalized as PPE(PROPERTY PLANT EQUIPMENT) is
(a)
A used delivery truck was traded in for a new truck. Information relating to the
trucks were as follows:
Used truck: Cost – P1.6M;
Accumulated depreciation – P1.2M;
Estimated fair value –P320,000
New truck: List price – P2M;
Cash price without trade-in – P1.9M;
Cash price with trade-in– P1.56M
The amount that should be capitalized as the cost of the new truck is
(a)
A check register may be used in lieu of what special journal?
(a)
Accounting for the interest in a non interest bearing note receivable is an example of
what aspect of accounting theory?
(a)
THREE COMMONLY USED TOOLS OF FINANCIAL STATEMENT ANALYSIS, EXCEPT:
HORIZONTAL ANALYSIS
VERTICAL ANALYSIS
RATIO ANALYSIS
DIAGONAL ANALYSIS
A TECHNIQUE FOR EVALUATING A SERIES OF FINANCIAL STATEMENT DATA OVER A PERIOD OF TIME
(a)
IT EXPRESSES THE RELATIONSHIP AMONG SELECTED ITEMS OF FINANCIAL STATEMENTS DATA.
(a)
A TECHNIQUE FOR EVALUATING FINANCIAL STATEMENT DATA THAT EXPRESSES EACH ITEM IN A FINANCIAL STATEMENT IN TERMS OF A PERCENT OF A BASE AMOUNT.
(a)
THE CLOSE RELATIONSHIP THAT EXISTS AMONG THE FINANCIAL STATEMENTS THAT ARE PREPARED ON THE BASIS OF THE SAME UNDERLYING TRANSACTION INFORMATION.
(a)
A LANDMARK PIECE OF OF SECURITIES LAW, DESIGNED TO IMPROVE THE EFFECTIVENESS OF CORPORATE FINANCIALREPORTING THROUGH ENHANCE ACCOUNTABILITY OF AUDITORS , BOARD OF DIRECTORS , AND MANAGEMENT
(a)
A SYSTEM OF RECORDING EVERY BUSINESS TRANSACTIONS WITH EQUAL DOLLAR AMOUNTS OF BOTH DEBIT AND CREDIT ENTRIES.
(a)
BORN IN PAGSANJAN, CALABARZON, HE IS CONSIDERED AS THE VERY FIRST FILIPINO CERTIFIED PUBLIC ACCOUNTANT AND FOUNDER OF JOSE RIZAL UNIVERSITY
(a)
YOU HAVE DISCOVERED THAT A CHECK WRITTEN FOR P6,200 WAS CREDITED IN ERROR TO ACCOUNTS RECEIVABLE , RATHEN THAN TO CASH FOR P 2,600. THE CORRECTING ENTRY SHOULD INCLUDE IS::::
WHAT AMOUNT OF SUPPLIES EXPENSE TO BE DEBITED?
ACCOUNTS RECEIVABLE (DEBIT)
SUPPLIES EXPENSE(DEBIT)?
CASH(CREDIT)
(a)
KNOWN FOR BECOMING THE VERY FIRST AFRICAN-AMERICAN CERTIFIED PUBLIC ACCOUNTANT. WHO IS HE?
(a)
ABM COMPANY PROVIDED THE FOLLOWING ASSETS IN A FOREST PLANTATION AND FARM:
FREESTANDING TREES P2,500,000
LAND UNDER TREES 300,000
ROADS IN FOREST 170,000
ANIMALS RELATED TO RECREATIONAL ACTIVITIES 540,000
BEARER PLANTS 1,000,000
BEARER ANIMALS 1,950,000
WHAT TOTAL AMOUNT OF ASSETS SHOULD BE CLASSIFIED AS BIOLOGICAL ASSETS?
(a)
BUBLE GUM WAS INVENTED IN 1928 BY AN ACCOUNTANT. WHO IS HE?
(a)
EQUIPMENT WAS PURCHASED AT A COST OF P 390,000. THE EQUIPMENT HAD AN ESTIMATED USEFUL LIFE OF FIVE YEARS AND A RESIDUAL VALUE OF P15,000. ASSUMING THE EQUIPMENT WAS SOLD AT THE YEAR 4 FOR P40,000, WHICH OF THE FOLLOWING WILL BE INCLUDED IN THE JOURNAL ENTRY DEBITED ACCUMULATED DEPRECIATION OF WHAT?
(ASSUME STRAIGHT LINE METHOD DEPRECIATION IS USED)
(a)
THE PROCESS OF ACCOUNTING HAS 9 STEPS.
(TRUE OR FALSE)?
(a)
THE FIRST FILIPINO WHO TOPPED BOTH THE CPA BOARD AND BAR EXAMS?
(a)
ABM INDUSTRIES PURCHASED A GENERATOR THAT COST P150,000. IT HAS AN ESTIMATED LIFE OF FIVE YEARS AND A RESIDUAL VALUE OF P30,000. IT IS ETIMATED THAT IT WILL BE GOOD FOR 7,000 HOURS. CAN YOU COMPUTE THE DEPRECIATION EXPENSE FOR THE FIRST YEAR USING THE UNITS-OF ACTIVITY METHOD OF DEPRECIATION ASSUMING THE GENERATOR WAS USED FOR 1,505 HOURS?
DEPRECIATION EXPENSE????P (a)
THE PURPOSE OF BANK RECONCILIATION ARE THE FOLLOWING, EXCEPT:
I. TO DETERMINE IF THE BANK ACCOUNT AND THE ENTITY CASH BALANCE WILL AGREE AFTER CONSIDERING UNRECORDED ITEMS.
II. TO INCLUDE RECORDING ERROR AND OTHER PROBLEMS IN THE BANK RECORDS OR IN THE ENTITYS ACCOUNTING SYSTEM
III. TO ESTABLISH THE ADJUSTING ENDING CASH BALANCE
IV. TO PROVIDE INFORMATION FOR ADJUSTING ENTRIES.
A. I B. I,II C.II D. IV
(a)
ASSUME THAT SALES ARE P500,000, SALES DISCOUNTS ARE P20,000, NET INCOME IS P25,000 , AND COST OF MERCHANDISE SOLD IS P380,000. GROSS PROFIT AND OPERATING EXPENSES ARE?
A. 105,000 AND 80,000
B. 100,00 AND 75,000
C. 100,00 AND 80,000
D. 105,000 AND 75,000
(a)
ON JANUARY 1, YEAR ONE, ABC COMPANY SPENT P39,000 TO BUY A NEW PIECE OF MACHINERY WITH AN EXPECTED RESIDUAL VALUE OF P3,000 AND A USEFUL LIFE OF TEN YEARS. THE STRAIGTH LINE METHOD OF DEPRECIATION IS APPLIED BUT NOT THE HALF YEAR CONVENTION. ON OCTOBER 1, YEAR THREE, THE COMPANY WANTS TO EXCHANGE THIS ASSET(WHICH IS NOW WORTH P31,000) FOR A NEW MACHINE WORTH P40,000. TO FINALIZE THE EXCHANGE, THE COMPANY ALSO PAYS CASH OF P9,000. WHAT IS THE GAIN OR LOSS ON THE TRADE?
(a)
BOOK OF LUCA PACIOLI WHICH WAS HIS FIRST PRINTED IS:
(a)
ABM COMPANY PROVIDED THE FOLLOWING DATA:
VALUE OF BIOLOGICAL ASSET OF ACQUISITION COST ON DECEMBER 31, 2018 P550,000
FAIR VALUE VALUATION SURPLUS ON INITIAL RECOGNITION AT FAIR VALUE ON DECEMBER 31, 2018 P600,000
CHANGE IN FAIR VALUE TO DECEMBER 31, 2019 DUE TO GROWTH AND PRICE FLACTUATION P85,000
DECREASE IN FAIR VALUE DUE TO HARVEST IN 2019 P63,000
WHAT IS THE GAIN FROM CHANGE IN FAIR VALUE OF BIOLOGICAL ASSET THAT SHOULD BE REPORTED IN THE 2019 INCOME STATEMENT?
(a)
ABM COMPANY PURCHASED A GENERATOR THAT COST P150,000. IT HAS AN ESTIMATED LIFE OF FIVE YEARS AND A RESIDUAL VALUE OF P30,000. IT IS ESTIMATED THAT IT WILL BE GOOD FOR 7,000 HOURS. CAN YOU COMPUTE THE DEPRECIATION EXPENSE FOR THE FIRST YEAR USING THE UNITS-OF-ACTIVITY METHOD OF DEPRECIATION ASSUMING THE GENERATOR WAS USED FOR 1,505 HOURS?
(a)
YOU HAVE DISCOVERED THAT A CHECK WRITTEN FOR P6,200 WAS CREDITED IN ERROR TO ACCOUNTS RECEIVABLE, RATHER THAN TO CASH FOR P2,600. THE OTHER PORTION OF THE ENTRY INCLUDED A DEBIT TO SUPPLIES EXPENSE FOR P2,600. THE CORRECTING ENTRY SHOULD INCLUDE WHICH OF THE FOLLOWING?
DEBIT TO SUPPLIES EXPENSE OF??????/
(a)
WHICH OF THE FOLLOWING CLASSIFIED AS BIOLOGICAL ASSETS?
I. FREESTANDING TREES
II. LAND UNDER TREES
III. ROADS IN FORESTS
IV. ANIMALS RELATED TO RECREATIONAL ACTIVITIES
V. BEARER PLANTS
VI. BEARER ANIMALS
A. I, II,III B. I, VI C.I, V, VI D. V,VI
(a)
EQUIPMENT WAS PURCHASED AT A COST OF P390,000. THE QUIPMENT AN ESTIMATED USEFUL LIFE OF FIVE YEARS AND A RESIDUAL VALUE OF P15,000. ASSUMING THE EQUIPMENT WAS SOLD AT THE END OF YEAR 4 FOR P40,000,
WHICH OF THE FOLLOWING WILL BE INCLUDED IN THE JOURNAL ENTRY? ( ASSUMING STRAIGHT LINE METHOD)
DEBIT TO ACCUMULATED DEPRECIATION????
(a)
ASSUME THAT SALES ARE P500,000, SALES DISCOUNTS ARE P20,000, NET INCOME IS P25,000, AND COST OF MERCHANDISE SOLD IS P380,000.
HOW MUCH IS THE GROSS PROFIT AND OPERATING EXPENSES ARE?
(a)
On January 1, 2007, Mann Company borrows $2,000,000 from National Bank at 11% annual interest. In addition, Mann is required to keep a compensatory balance of $200,000 on deposit at National Bank which will earn interest at 5%. The effective interest that Mann pays on its $2,000,000 loan is
a. 10.0%.
b. 11.0%.
c. 11.5%.
d. 11.6%.
(a)
Hamilton Company has cash in bank of $10,000, restricted cash in a separate account of $3,000, and a bank overdraft in an account at another bank of $1,000. Hamilton should report cash of
a. $9,000.
b. $10,000.
c. $12,000.
d. $13,000.
(a)
Horvath Company has the following items at year-end:
Cash in bank $20,000
Petty cash 300
Short-term paper with maturity of 2 months 5,500
Postdated checks 1,400
Horvath should report cash and cash equivalents of
a. $20,000.
b. $20,300.
c. $25,800.
d. $27,200.
(a)
Marshell Company has cash in bank of $15,000, restricted cash in a separate account of $4,000, and a bank overdraft in an account at another bank of $2,000. Marshell should report cash of
a. $13,000.
b. $15,000.
c. $18,000.
d. $19,000.
(a)
Peterson Company has the following items at year-end:
Cash in bank $30,000
Petty cash 500
Short-term paper with maturity of 2 months 8,200
Postdated checks 2,100
Peterson should report cash and cash equivalents of
a. $30,000.
b. $30,500.
c. $38,700.
d. $40,800.
(a)
If a company purchases merchandise on terms of 1/10, n/30, the cash discount available is equivalent to what effective annual rate of interest (assuming a 360-day year)?
a. 1%
b. 12%
c. 18%
d. 30%
(a)
The following information is available for Reagan Company:
Allowance for doubtful accounts at December 31, 2006 $ 8,000
Credit sales during 2007 400,000
Accounts receivable deemed worthless and written off during 2007 9,000
As a result of a review and aging of accounts receivable in early January 2008, however, it has been determined that an allowance for doubtful accounts of $5,500 is needed at December 31, 2007. What amount should Reagan record as "bad debt expense" for the year ended December 31, 2007?
a. $4,500
b. $5,500
c. $6,500
d. $13,500
(a)
Simpson Company has the following account balances at year-end:
Accounts receivable $60,000
Allowance for doubtful accounts 3,600
Sales discounts 2,400
Simpson should report accounts receivable at a net amount of
a. $54,000.
b. $56,400.
c. $57,600.
d. $60,000.
(a)
Holtzman Corporation had a 1/1/07 balance in the Allowance for Doubtful Accounts of $10,000. During 2007, it wrote off $7,200 of accounts and collected $2,100 on accounts previously written off. The balance in Accounts Receivable was $200,000 at 1/1 and $240,000 at 12/31. At 12/31/07, Holtzman estimates that 5% of accounts receivable will prove to be uncollectible. What is Bad Debt Expense for 2007?
a. $2,000.
b. $7,100.
c. $9,200.
d.$12,000.
(a)
In preparing its bank reconciliation for the month of April 2007, Gregg, Inc. has available the following information.
Balance per bank statement, 4/30/07 $39,140
NSF check returned with 4/30/07 bank statement 450
Deposits in transit, 4/30/07 5,000
Outstanding checks, 4/30/07 5,200
Bank service charges for April 20
What should be the correct balance of cash at April 30, 2007?
a. $39,370
b. $38,940
c. $38,490
d. $38,470
(a)
Tanner, Inc.’s checkbook balance on December 31, 2007 was $21,200. In addition, Tanner held the following items in its safe on December 31.
(1) A check for $450 from Peters, Inc. received December 30, 2007, which was not included in the checkbook balance.
(2) An NSF check from Garner Company in the amount of $900 that had been deposited at the bank, but was returned for lack of sufficient funds on December 29. The check was to be redeposited on January 3, 2008. The original deposit has been included in the December 31 checkbook balance.
(3) Coin and currency on hand amounted to $1,450.
The proper amount to be reported on Tanner's balance sheet for cash at December 31, 2007 is
a. $21,300.
b. $20,400.
c. $22,200.
d. $21,750.
(a)
The cash account shows a balance of $45,000 before reconciliation. The bank statement does not include a deposit of $2,300 made on the last day of the month. The bank statement shows a collection by the bank of $940 and a customer's check for $320 was returned because it was NSF. A customer's check for $450 was recorded on the books as $540, and a check written for $79 was recorded as $97. The correct balance in the cash account was
a. $45,512.
b. $45,548.
c. $45,728.
d. $47,848.
(a)
In preparing its May 31, 2007 bank reconciliation, Dogg Co. has the following information available:
Balance per bank statement, 5/31/07 $30,000
Deposit in transit, 5/31/07 5,400
Outstanding checks, 5/31/07 4,900
Note collected by bank in May 1,250
The correct balance of cash at May 31, 2007 is
a. $35,400.
b. $29,250.
c. $30,500.
d. $31,750.
(a)
If the month-end bank statement shows a balance of $36,000, outstanding checks are $12,000, a deposit of $4,000 was in transit at month end, and a check for $500 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is
a. $27,500.
b. $28,500.
c. $20,500.
d. $43,500.
(a)
On the December 31, 2007 balance sheet of Yount Co., the current receivables consisted of the following:
Trade accounts receivable $ 75,000
Allowance for uncollectible accounts (2,000)
Claim against shipper for goods lost in transit (November 2007) 3,000
Selling price of unsold goods sent by Yount on consignment
at 130% of cost (not included in Yount 's ending inventory) 26,000
Security deposit on lease of warehouse used for storing
some inventories 30,000
Total $132,000
At December 31, 2007, the correct total of Yount 's current net receivables was
a. $76,000.
b. $102,000.
c. $106,000.
d. $132,000.
(a)
May Co. prepared an aging of its accounts receivable at December 31, 2007 and determined that the net realizable value of the receivables was $300,000. Additional information is available as follows:
Allowance for uncollectible accounts at 1/1/07—credit balance $ 34,000
Accounts written off as uncollectible during 2007 23,000
Accounts receivable at 12/31/07 325,000
Uncollectible accounts recovered during 2007 5,000
For the year ended December 31, 2007, May's uncollectible accounts expense would be
a. $25,000.
b. $23,000.
c. $16,000.
d. $9,000.
(a)
The following accounts were abstracted from Todd Co.'s unadjusted trial balance at December 31, 2007:
Debit Credit
Accounts receivable $750,000(DR)
Allowance for uncollectible accounts 8,000(DR)
Net credit sales $3,000,000 (CR)
Todd estimates that 2% of the gross accounts receivable will become uncollectible. After adjustment at December 31, 2007, the allowance for uncollectible accounts should have a credit balance of
a. $60,000.
b. $52,000.
c. $23,000.
d.$15,000.
(a)
In preparing its August 31, 2007 bank reconciliation, Adel Corp. has available the follow-ing information:
Balance per bank statement, 8/31/07 $21,650
Deposit in transit, 8/31/07 3,900
Return of customer's check for insufficient funds, 8/30/07 600
Outstanding checks, 8/31/07 2,750
Bank service charges for August 100
At August 31, 2007, Adel's correct cash balance is
a. $22,800.
b. $22,200.
c. $22,100.
d. $20,500.
(a)
Sandy, Inc. had the following bank reconciliation at March 31, 2007:
Balance per bank statement, 3/31/07 $37,200
Add: Deposit in transit 10,300
47,500
Less: Outstanding checks 12,600
Balance per books, 3/31/07 $34,900
Data per bank for the month of April 2007 follow:
Deposits $46,700
Disbursements 49,700
All reconciling items at March 31, 2007 cleared the bank in April. Outstanding checks at April 30, 2007 totaled $6,000. There were no deposits in transit at April 30, 2007. What is the cash balance per books at April 30, 2007?
a. $28,200
b. $31,900
c. $34,200
d.$38,500
(a)
When an investment in a debt instrument that was originally acquired to be
held up to maturity is transferred to FVOCI, the carrying amount assigned to the
FVOCI is
a. the original acquisition cost
b. the fair value at the date of transfer
c. the lower of its original acquisition cost and its fair value at the date of
transfer
d. NONE
(a)
(a)
which of the following POSSIBLE TEMPORARY DIFFERENCES will be recognized OUTSIDE profit or loss?
i. PAS 17 adjustment where rent expense is deductible only upon actual payment
ii. Fair value changes related to the measurement of investment in shares classified as FVPL under PFRS 9
iii. Actuarial gains related to the measurement of pension asset under PAS 19-employee benefits
iv. Fair value changes related to the measurement of investment in shares classified as FVOCI under PFRS 9
a. i,ii,iii and iv
b. ii,iii and iv only
c. iii and iv only
d. iv only
(a)
the accounting treatment of REVALUATION follows the principle that (a) .
a. any revaluation surplus is realized and forms part of earnings
b. any revaluation surplus is realized but does not form part of earnings
c. any revaluation surplus is not realized but does form part of earnings
d. any revaluation surplus is neither realized nor forms part of earnings
Leomel Majer Inc. pays salaries of P10,000 every Monday for the preceding 5-day week( Monday-Friday). Assume December 31 falls on Wednesday. Further assume the company used reversing entry on January 1 next year. How much is the credit to salaries payable on January 5 of next year?
(a)
Romabelle Co. purchased an insurance policy of P65,000 on 2013. The Co. made the following adjusting entry at the end of the reporting period.
December 31 Prepaid Expense 16,250
Prepaid Insurance 16,260
If the insurance was good for 3 years, when did Romabelle Co.took the insurance policy?
(a)
Ariamel Company is engaged in providing a magazine subscription to its customers starting January 1, 2013. At the beginning of the year, there are 15,000 customers for which the company bill at P10 per subscription. On April 1, 2013, the company decided to raise its billing to P12 per subscription. The customers had evenly increased during the year and the company had a total of 16,200 customers at year end. Find Ariamel's subscription revenue at December 31, 2013.
(a)
The following transactions occured during July:
1. Received 900 cash for services provided to a customer during JUly.
2. received 2,200 cash investment from Barbara Hanson, the owner of the business.
3. received 750 from a customer in partial payment of his account receivable which arose from sales in June
4. provided services to a customer on credit 375
5. borrowed 6,000 from the bank by signing a promissory note
6. received 1,250 cash from a customer for services to be rendered next year.
What was the amount of revenue for JUly?
(a)
