of San Carlos answer the following questions by shadiag the answer sheet provided. Avoid erasures, Use pencil lend no try December 31, 2014, the end of a monthly accounting peri, the following ere prepared for the Spencer Company and its brancly Merchandise was ied forthe branch by the home office at 12096 of ¢ et Horne Offies Branch 2,050 42,050 ventory, Deo, 1 44,400 utnilure and fh 3,800. Accum. depreciation-F and F Unrealized intercompany invtry po colts aya Yome Office Currant Slipmant to branch Burchecss Stiscelancous Rent expense Miscalianoous cenoral a (includes taxes end Insurance) The following dsta were available on Decesnber 31. & Merchandiss Inventoriss: home office, cast P24,200; br coinposed af: merchandise received itom home office, 4,700 and merchandlse pureed rom outsiders (at, }. Store supplies on hand: home office, P280; brench, Popo & repel oxpenscs (cect Misetlancets general expense): home ofice, PE: branch, Pi; &. Accrued expente (debit Miscellansous genoral expense); branch, P05, » Petreciation of fumiture and fistures is recorded et 1% a month, sachin femitence of P1,600 hed been recorded on the branch bobks, but the fasion Pot Yet been received by the home office and no enty roe tenes nade, ‘he hee offce had charge the branch withthe folowing expenses that have hotyet been tocerded by the branch: taxes and inaurance PosyFrom the given data, calculate the following: 1. Net loss reported by the branch: a. P1271 b. P2\e97, ©, P3,021 d. Past ©. P2741 2, Beginning inventory ofthe branch that ¢ a. 12,000) b. P 2,000 cP 4:40) d. P10,000 2. P 2,400 3. Combined nat income: a. P4916 b P2374 © P 943 d. P3645 8 P3145 4, Combined assets: a. P100,610 b. P 93,184 fc, P133.544 d. P102;374 e. P100,489 For tems 5-6: Operating daia for Paxton Company of Manila and its Cebu branch for 2044 follow: Manila Office Sales 4,080,000 Inventory, Jan, 4 (at cost) 115,000 (atbilled price) Purchases 20,000 Shipments to Cebu branch (at ecst) 210,000 Shipments from Manila office (at billed prica) Inventory, Dec, 31 (at cost) 142,500 (atbilled price) Operating expenses 382,000 Cebu Branch 315,000 44,500 252,000 58,500 101.500 Records show that Cebu branch was biled for merchandise shipments as follows: 1n.2013, cost+ 25% In2014, cost + 20% From the foregoing information, determine the following:8. Branch net income per home office reckonin: P14,650. 16,650 25,050 P15,167 P17,a50 4. Combined net income: a. 110,150 b. P120,550 ©. P110/687 4d. P113,360 =. P112,150 The Berkeley branch of the Bruin Company office at 20% above cost. Ths Puposes at 25% above billed Ierchandise is destroyed by fra. No Accounts show the following informatio: Merchandise inventory, Jin, (abil Shipments fro Sales Solas retums: Whet was the cost of the mer ‘a. P36,400. ', P46,400. 1. P36,000 «. P30,000. e. P28,800 rchandize dest. ‘Sampaguita Intemational operates @ bran merchandise at an arbitrary price representi ‘The following data are gaths for 2014; Inventories, Jan. 1 Purcttases Shipments to branch Sales: Inventories, Deu, 31 ‘Shipments fromm main store ESponesil Net income of the main store ‘income statsment must be: a, 64,500, b, P63.550 P63,500 d, 64,100 fe; P64,050, 1. Hone office bills merchandise shipments to ts January 1, 2014, the branch hed inve ta 2,400, During the year, shipments to December 31, 2014 the branch inventor red from the books of the main the branch to be reported in a: fs billed for morchencive by the home branch, In turn, prices its merchandise for aales ‘On January 47, ll of the brenich urance Wes maintained, The brandi d price) mm home office (Jan, 1= 17) oyed by fire? ich In Bacolod City to which i bills Ing @ maricup of 83-1/296 ahove cost, lore and the bran Main Store P. 30,000. 245,000 60,000. Branch P 12,000, 52,000 15,000 80,000 10,200 the combined ranch at 40% above cost, As of Bcquired from home offics of h amount to 40,000, Coming from homs offes is P14. ny Dranct ry al 209,ranch books fs P3,60. What is the branch net income per of 2013 the branch reported an Inventory of P15,625, The home office bills this branch at 125% of cost. During 2014, goods costing P300,000 were shipped ta the branch. The “Allowance for overvaluation of branch inventory” after adjustments, shows a balance of P16,250 at the end of the Year. What was the amount of ending inventory (December 31, 2014) at billing price? a. P12,500 b, P31,250 ©. P97,500 4. P65,000 11, The bolance sheet ao of June 30,2014 forthe pertnership of Vas, Wilsco, and Gan shows the following informtion Total assis 360,000 Vas, Loan Vas, Capital Wilson, Copitsl Gan, Cepital Parnas that Vas retires from the partnership and it was further agreed a bbe adjusted to thelr fair value of P408,000 as of tune 30, 2014, The partnership would pay Vas P123,000 cash for his partnership interest and includes beyruent of oan to him: No goodilistobe recorded Vas, Wlton, and Gan share profs nad losses 25%, 25%, and 50%, respectively, ‘What is Gan's capital balance after ieirement of Vas? = 120,000: . P180,000. & 200,000 &. P360,000. ©. 190.000 12, Dasa Corporation uae the installment mesnd of ascounting to recognize income and ‘pertinent dats are us follows ‘ 212 2013 2014 Cost of sales P337,500 47,500 _P378,000 Gross profit 112,500 135,000 62,000 Deferred gross profit balance Atyeat end; f 2012) 78,250 22,500 2013 81,000 2014‘The balance of the Installment accounts Receivable on Dec. 31, 2014is a. P40s,000 b. 416,250. © P418,400 4. P4s0,000 & P4I7400 15, On April 1,2014, Poppy Company sold for PL4,000 an appliance which had a cost of 9,100. A down payment of P1,500 wins made ith « provision tha sditional paymenis of P1,250 be mode monthly theresfer with interest of 2% per month on mipeid belanice of the principal, the monthly installment was to appy fret io the isterest then the balence on th brincipal, After completing four monly smortizations the custome defaulted. The fi Value ofthe repossessed appliance waa estimt to be P3,750, The pain (loss) on repossession and ths realized gross profit tobe recog Gain (oss) on repossession Reelized gross profit 8. (P1,695.95) 2,275.00, b. (1,695.96) PL 967.56 © (PI;125,00) P1,750.00 @ (1,125.00) 1,967.56 (P1/125.00) 2,275.00 14, Pie Corporation has operations in two locations —a main plant and a branch plant. The ‘branch receives most ofits inventory fror the main plat, but ie als) purchases sons lle from local purchases, The main pl merchandise tothe brash at 120% of tnd this merehandize is inventories bythe oranch at billed price. The fellowing dala forts year are available MAINPLANTBOOKS BRANCHPLANTEODKS Inventory. U1 P 126,000 24,000 Puschases 1,490,036 3,000 Shipments to braach 300,000 - Shipmicns ftom home office et 366,000 Tiventory, 231 120,00 ‘One-fourth ofthe beginning bivach inventory wee scquized ftom ovis: branch ending inventory includes P5,000 fois cule supptiers, of goods sold amount to bs inl in the corabined income: P1,542,500 Prsis00. 1,452,500 a. Pi,309,500 ©. PLA42,500: “15: Lage Co. whieh began operations on January 22014, appropiately now ie intalinene ‘method of accounting. The following information is variable for 2044s Installment accounts receivable December 31,2014 800,000 Deferred gross profit, Deo, 31 (before recosnition of ealized gross profit for2014) $60,000 Gross profit on salesand realized gross profit on sales Realized Gross Pr 320,000 P24,000 220,000 600,000 240,000, None ofthese ing Company operates a branch in Cebu. As of Desembee 3 unt inthe ome office books shovied a ounts were in agreement at the beginning ofthe year. For parposes of caciling the intzroffire accounts, the following facts were ascertained: 8. The branch wates off uncollectable accounts of P10,400. The allowance for doubtful ‘secounts is mainiained on the books ofthe home office. The home office is not yet hotified about ke write-off Home office eredit memo for P34,300 was not recorded by the branch, Geb recorded a debit memo ftom home office af PS6,720 as P47,720, 4. The home office inadve ‘remittance for P38,000 frem its Bohol Brunch as a remittanc ‘Tow much is the adjusted balance of the Home Olilce Current account? 324,000 ,P349,300 0, P248,000 4,273,300 2.7 348,000 On Tenuary 1, 2014, Mavic Company ecablished an agcaey in Dumagicte City sending samples costing F10,500 aad a each working fund of P6,000 to be malstained unler the linprest systenn, During the month the agency forwarded to the main effice eslea orders Which were billed a:P91,875 of which P52,500 was collected, The agency paid expenses of 3,615 and received replenishment theresf fom the main store, On January 31, the apency samples were Yalund at P7,875, twas eimated thatthe gros profit on the goods shipped fo epeicy customers aveznged 25% of eos. The cost of sxles'end net income tobe recorded by Muvie Compaiyt CostofAgcney Sales Agency Net Income 10,500 12,075 10,500 73,500 None of these N Bin and Laden ae joining separate business to form a parinersip, Propeny aod cash ee to be contributed for & total capital of P400,000. The propery to be contibued and liailie, to be assumed areAccts Revble Inventories 3 i P $0,000 Equipment 50,000 90,0 Accis Payable 15,000 1 10.000 The partners’ capital accounts re to be etal efter all conbibations of assumptions of liabilities Determine the (1) amount of cash each partner must contribute end (2) total a partnership, @ ® Bin Laden 8.P100,000 P25,000_P425,000. 100,000 25,000 400,000 © 215,000 210,000 425,009, 285,000 15,000 400,000 © 215,000 25,000 400,000 Lint, Mina, and Pina are partners with copitels of P40,000, 25,000 and P15,000, respectively. The partnership provides that each partner shal be allowed 5% interest capital and sat Lina shall be allowed an annual salary of F8,500 ord shat Mina oh entided to @ minimum of P14,000 per sncum including amount alloyed am fr capital and osu share of profit, Profit after inietest and salary allowroote isto bet among Lina, Mins and Pina $:3:2 respeottely, ‘What amount must be eared by the partnership during the year before charges for fi Consality if Lina isto receive an ageregate cf P20,000 ts inclode intrest salary end skann of proiit? 8 P38.000 -b. PS0,000PI8550 4.725.880 « P3aga0 20, City Bank of Manila (CBM) commenced conespondence relatinship with Minewoia Banking Corporation (MBC) in May 2014, The following ae the: taasactona Guree a ‘month Debits: May 01 Remittance, cable $1,000 (at P56.30/05$) ‘May 15 Remitiance, cable = $5,000 (at P56.35/U25) Cres May 10 Demand draft = $1,000 at P56 30/088) May 25 Sight draft =$ 500 (at PS6.45/08$) If the prevailing exchange rale on May 31, 2014 was P56.75/:%5 balances, on this date, for CBM and MBC axe? a. CBM: P170,725 ‘MBC: $1,500 b. CBM; 253,325 MBG; $4509 ©. CBM: 255,375 MBC: $4551 4. CBM: 293,050crea athe a Urach Ia Naga Cy. Mega Compontion Pee 2eyegso ths bunch 881308 ot coc. The flown somal bataer eee ‘he ledger maintained by the home office and branch ty Branch, i P 650,000 250,000 ' 800,000 150,000 Shipments to Brauch 300,000 es Cost of Sal 600,000 372,500 300,000 200,000 Inventory 12/3) 150,000 102,500 he fnventory ofthe branch ineludes purchases ought from local supplier inthe amount of P37,500, The cost of shipme i & 25000, — P so,009 bP 65000 4. -P 75.000. P4s,000 {Ds eas of inventory at December 31 tobe shown in the combined fnancalststementt & P2550, p 237500 b P287500 dP 317,500. pai7s00 Danielle Corporation presented th fllowing asoounts as of December 31, 2014; coeivable-2013 f P 2,500 Installment Accotnis Receivable 2014 300,000, 12712013 185,000 £2,500 4500 nation Talent Accounts esivable- Yenuary 1,2013 =P 180,00 Inventory ssersed at December 31,2014 = 14.500 > Gross profit an Regular Sales = 30% 7 Sezppesson was made a 2014, Tvs from 2013 sales and he deualted balance ‘was P 10,600, ‘The realized gross profit in 2014; a P 128250 & P 367515 bP 365075 dP 194.265 ©. P196.255 The following account bslances are provided: Installment Contracts Reseivable~ 2014 P 855,000 Purchases 852,000 Cost of Installment Sales 720,000 Trade In 45000trtaleat 1200000 Regular als T3000 Lesson repossession 900 Operling Expenses 105000 Merchandise inventory (old and new) as of Lec=mber 31, 2014 amotnis to 103,509, ‘The net income for 2014; a P 88,500 & 50,500 b. P 59,500 a P 75,500 &. 68,500 King Company filed a voluntary bunkruptey petition on July 1, 2044, The following selected account balances wets taken from its Sat Cemyira Ya ed with partially reditors Tova fre esses Preferred Clsims = Partially secured liabitties 22, P 37,500 ‘Wasecured liabilities 7 542/500 What isthe amount of deficiency w a P 126,000 © P 480,000 b. P 630,000 & — P 503,000 NU Firm Toc. a new corporation formed snd oraniond eonsolidstion af Neo i Inty shall sue 10% pariipnting prefereed siocks ‘witha par value of P100 for Neo's nd Uni's net asst conttibutions end comtagh raves ‘witha par value of P 50 forthe citfmence between the total shires tn be Feusi te tae Drofered shares to be issued. ‘The teal share to be isoued by NU Fim Ine, alll quivalent to average anol »xmings captilized at 10%, Relevant dsta on Ne follows: I Uni Total Assets P 720,000 P 921,609 ‘Total Liabilities 432 000 345.609 Annual Averave Eamines 45,020 oni ‘Goodwill o be recognized by NU Fina In. a. 288,000 © PI72,000 b. P864,000 4 P278,000 ©. P372,000 Material is added at the beginning of a process in a process costing system. The beginning Workin Process Inventory forthe process was 30% com:aleta 35 to conversion es. Using the FIFO method of costing, the number of equvetent us Is of material for the provess during this period Is equal to the 2. beginning inventory this period for tne process, , Units strted this period Inthe process © nls started this period inthe process plus the beginning Werk a Precess in4. units started end completed this period plus the units in ending Workin Process The following data ae elven onthe production of Perez Mfg Co for uly, 2030 Total equWvalent production 22,500 Placed in process, frished and transfered 20,000 inlshed and on hand 6,000 In process, end 1/8 : 3,000 In proces, begin ? Placed In proces 2 Tha FFO costing meted Is used. How many units were there inthe beginning tory of workin process? b, 2.000 6,000. 4. 20,000 ‘Acapulco Mfg. Co. processes its product in three consecutive departments A, B, and C, ‘The following data ere glven on the third department's production for July 2014, Production data In process, 1uly /s Transfecred i In process, July 31% st datas In process, uly. P30610 Transferred in 410,000 Current Cost Mstertal 415,750 labor 8400 Factory overiead 6.300 ‘at unt cost must be sssened tothe uns traneerred out? (Use FIFO) 2.7645 b.PSA4 @ PLAS 4.75.00 heroes Company apples factory overlies on the basis of direct abo: hours. Budget ‘and actual data for direct labor end ovcrhesd for the year areas followsBudget Actual Directlaborhours 600,000 680,000 Factory overhead costs P720,009 _P760,000 ‘The factory overhead for Cherokee forthe yeer is: overapplied by P20,000 ‘overapplied by P40,000 tunderapplied by P20,000 tunderapplied by P40,000 nelther underapplied nor overappied At the end of the year, Paola Company had th following account balances after aprlied factory overhead had been closed to Factory 0 Factory Overhead Control. Cost of Goots Sold eee Work in Process i ey 36,00) DR Finished 60048 nnn 82.009 BR ‘The most common treatment of ha balance in Factory Overhead Central would bs 1 a. cary it asa deferred credit on the balance sheet b. report its miscellaneous operating revenue on the inenme statin snt ©. credititte Cost of Goods Sold 4 prorate it between Work In Process and Finished Goods ©. prorate it among Work in Proces, Snished Goods, and Cost of Gsods Sold . J.D. Doonesbury Company manufactures tools te customer spsciRcatons. The f data pertain to Job 1501 for Apr Direct matorials used Direct labor hours worked Direct labor rate por hour Machine hours used. Applied factory overhead rate per machine hour a. Whats the total manufacturing cot recorded on Job 1503 for Apsi? P 9,600, 10,300 41,400 P5400 P 8,30034) The following information is available for Hazel Company for Apri Started this month 20,000 units Beginning WIP (40% complete) Normal spollage (éisrete) Abnormal spoilage Ending WIP (70% complete) Transferred out Beginning Work in Process Costs Material 10,400 Conversion 23,800 current Costs Material 120,000 Conversion 350,000 ‘All materials are added et the start of preducton and the inspection point i at the end of the process What are equivalent units of production for material using FIFO? ‘£0,000 b. 79,00 & 78,900 d. 87,500 ‘What are eaeivaleunts of production for conversion cost using velghted average? 3. 83,600 b, 82,700) & 82/500 81,60035, /- QD Inc Started operation atthe beginning of 2013, sll ‘Treacy Company uses a ob-order costing system, Assu in process. The following information Is avallabe: 04 Is the only ons Budgeted direct labor Bud 00 hours se machine hours oad Budgeted overhead 350,000 Direct material 110,500 Direct labor cost P70,000 ‘What isthe overhead application rate If Treacy uses a predetermined overhead application rate based on direct labor hours (rounded to the nearest whcle dal}? a P 020 b. P 590 © Ps3e é P3889 ‘tthe end of the last scal year, Hilton Company had the followlrg account balances: verapplied overhead P 600) st of Goods Sold 920,000, Work in Process Inventory 38,000, Finished Goods Inventory : 82,000, Ifthe most common treatment of assiming overaoptied overhead were used, the fina balance in Cost of Goous Sold: 2 P974,000, 974,660, 85,340, 936,000, g home epplances exchisively fon the instalment basls Data for 2013 and 204 follow: 2013 2014 Instalment sales 1,800,000 2,250,000 Costofinstalment sales 1.260,000 _4/350,000, Deferred gross profit, end of 2013 256; 20,250 2014 260,0004uly 2, 2024, 2 2033 instalment account of P112.500 was defaulted andthe appliance repossessed, Aterreconditioning It t a cost of F2,250, the repossessed spolonce ld be price to tell for P90,000. the end of 2014, the realized gross profit is: P724,500 772,650, 742,500, P776,250 762,500, Lexus Company, which began operations on January 3, 2013, appropriately used the lnstalment method of revenue recognition, The following information pertains to Lexus Company's operation for 2013 and 2014: Collections from: 2015 sales s0p00 2014selee 150,000 Accounts writen off 2018 sles x 75,000 2016 sales 350,900 Gross profitrates_ SBREN 071 40%. What amount shovid Lexus Company report as eferred oss profit In its December 31, 2024 balance sheet for 2013 and 2014 sales? 112,500 b. P125,000, P 75,000) P 30,000 None of these {On January 2, 2013, Mustang Company sold a car to Me, De Jesus for 2,050,000. On this date, the cer cust P735,000, Nr. De Jesus paid P150,000 as down-payment urd Signed 8 P900,000 interest bearing note at 10 percent, The note was pryable tne aumual installments of P300,000 begining January 12014, Mr. De Jesus mades tiny payment forthe first installment on anvary 1, 2014 of 390,000 which insuded Interac, of P80,000 to dats of payment. Musiang Company uecs the instalment mernogh ot accounting. ints December 34,2014 balance sheet, whet amount should Mustang Company report as deferred gress profit? ‘2, P180,000 , P153,000 ©. 270,000 . 225,000” 2, None ofthese {On Getober 31, 2025, Darwin bought propery from Green Acres which tad earier cost the latter 250,000, Greon Acres recslved a down payment of P100,000 avd the balance 4m 400,000 mortgage note payable n ten equal annual installments startep.on Gorsher31, 2014, Assuming thatthe gross profit Is recognized In the petted of sal, the amow of ross profit to be recognized by Green Acres n 2014 would be a. 250,000 . P 50,000) 100,000 4. 150,000 * ©. None of these 41. These data pertain to instalment sales of Mickey's Stores own payinent, 20% Installment sales: P545,000 in year 1; P785,000 in Year 2; and P963,000 In Year 3. Mark-up on cost, 25% Collections after dav payment: 40% in tha year of sale, 35/¢In the year after sale and 25% In the third year. The unrealized gross profit at the and of Year 3 3.°221,047, €.P198,574 6 None ofthese b.Pis1166 217,578 (On May 45, 2024, AA Sales Company (AA received a shipment of merchandise with a selling prlea of P15,000 from PC Company (PC). The conslgned und: eos: PC PAG,tO and freight charges of F120 had been pali to chip the goods to AA. The consigninan arrangement provided fora sale of mercianclse on credit with tesms of 2/20, n/30 415% commission is to be based on the accounts racelvable calscved by the cans h discounts taken by customers, expanses applicable to goes an consignen ‘any eash advanced to the canskenor are darictible from th consignee, AA advanced P6,000 t9 PC upon recript of the ahi 800 was paid by AA. By June, 2014, 79% of ths shioment had beer the resulting accounts recelvable had Deen enflected, all within Remittance of the amount 212 was mads>9 hina 30, 2044; mitted by AA ammount to The profit on consignment i a PLags + b. pi,42e cP 928 dP 873 ©. P 750 44, The cost of Unsold units in the hands of AA et 3. P3,186 .P3,036 © 73,004 .P3,420 073,306,tember 1, 2044, Andrew intemtionl, 9 Plippine company, committed to cane ete) wns of raw materia for 100.000 FC from a foe see ember J. Assume that on September 1 the company would Nevada acute forward contract to Duy 100,00 FC wth a formed tare Te eaten pet Bequle a option to buy FCin November ata sre pee af Ph den retin Premium i P2100, Various spot rates, fxward rates, mal eoton cree Forward rate for Time value of ___Spotrate___Hovember 1 Option September November 4 Cea nE thatthe tne vale component of the hedging struments is exuded from the assessmont of hedea effectiveness, Whats the effet on earings, the forward contract was purthased to. hedge the purchase comm 3, P2,000 loss . P2,000 gain © P7,000 lees 7,060 gain 5,000 gala she effect on exenings, the option contact was purchased to edge the chase commitiants P7,000 loss 7,000 gain 22,100 lose ins 47-50: ae beeengampany hod the folowing items ins unadjusted and adjusted tal balances at December 31, 2014: Tial Bslance Unadjusted ‘Accounts receivable denominated in alin doll 42,000 43,700 Peso receivable from Matro Bank 40,600 2 Foreign currency receivable from Bank 82,000 83,000 Accounts payable denaminated In Korsan Wont 30/009 20,300, Peso payable to Bank 82,000, 82,000. Forelgn currency payable to Bank 40,500 2 Additional information: Prema ipai3 Zot Denmark sold socds to = company in usr for 70,000 the ramet ASE Rayment in Auta an dolce is u’on Jovecar a core On $e tassaction date, Denmark entered to a Gday forward eorran ell 70,000fautrain dellrs on January 30,2015. Ths 30day forwart rete on December 32 2014 was AS1=P.57, ©n October 2, 2014, Denmerk pi pment from @ Korean company for 400,000 Korean won (KRW), paya FY 30, 2015, On the transaction date panmark entered Ito 3 120-day forward contract to purchase 401,000 oon nt ‘on January 30, 2015, On December 31, 2914, the spot rate wa 47 Winat waste indirect exchange rae for strain dollars on Dece December 31, 20147 December 3,204 December 31, 20:4 a. PL» AS1.667 PL=Asi gr b. PL=asi720 Pi 31.970 € Pi =A51.679 P1=A31.657 d. PL =AS1.667 PL= $1787 © PL =A$1.720 P1=A51.679 rat atts the balance nthe account Foreigr Currency Payable toBenk inthe adjusted trial balance? 2, P40,600 », pa1,600 & P49,900, «. 43,600 . P39,900, Wihatle the amount of Peso Receivable From Bankin the adjuster a. P39,900 . 10,600 © P46,000 4, P42,600 fe, PA9.s00 * war anak entered into 2 120-Sy forward contract a purse 400000 K wehatwas the direct exchenge rate for 120-day foruard content Pi = 2050 KRW AKRW = P20.50) PL = .205KRW _d: KRW = P.205 e PL = P2.SoKRW