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Problem 2-3: Multiple Choice: Solution

This document contains multiple choice problems and solutions related to accounting concepts. Problem 2-3 contains 11 multiple choice questions with answers ranging from A-D. Problem 3-4 contains 5 multiple choice questions with accompanying solutions showing calculations for subsidies, revenues, expenses, and surplus. Problem 6-3 contains 10 multiple choice questions with some solutions showing interest income and amortization calculations. The remaining problems follow a similar format of multiple choice questions with occasional solutions displaying accounting calculations.

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Paula Bautista
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515 views4 pages

Problem 2-3: Multiple Choice: Solution

This document contains multiple choice problems and solutions related to accounting concepts. Problem 2-3 contains 11 multiple choice questions with answers ranging from A-D. Problem 3-4 contains 5 multiple choice questions with accompanying solutions showing calculations for subsidies, revenues, expenses, and surplus. Problem 6-3 contains 10 multiple choice questions with some solutions showing interest income and amortization calculations. The remaining problems follow a similar format of multiple choice questions with occasional solutions displaying accounting calculations.

Uploaded by

Paula Bautista
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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PROBLEM 2-3: MULTIPLE CHOICE

1. B
2. D
3. A
4. A
5. D
6. C
7. A
8. D
9. C
10. B
11. B

PROBLEM 3-4: MULTIPLE CHOICE


1. A
2. E
3. A
Solution:
Subsidy from NG (NCA) 625,000
Subsidy from NG (TRA) 48,000
Unused NCA (6,000)
Net Financial
Assistance/Subsidy 667,000

4. C
Solution:
Revenue 290,000
Expenses (885,000)
Surplus (Deficit) from operations (595,000)
Subsidy from NG (NCA) 750,000
Subsidy from NG (TRA) 140,000
Unused NCA (43,000)
Net Financial
Assistance/Subsidy 847,000
Surplus (Deficit) for the period 252,000

5. A
Solution:
Adjusted Trial Balance (Dr. & Cr.) 2,765,000
Statement of Financial Position (Dr.) (1,880,000)
Statement of Financial Performance
(Dr.) 885,000
Statement of Financial Position (Cr.) 1,137,000
Surplus (Deficit) for the period 252,000
6. C

7. C

8. C

9. A

10. C

PROBLEM 4-3: FOR CLASSROOM DISCUSSION


1. D
2. B
3. D
4. C
5. C
6. D
7. B
8. A
9. A
10. D

PROBLEM 5-4: (FOR CLASSROOM DISCUSSION)


1. D
2. D
3. A
4. A
5. C
6. C
7. B
8. D
9. A
10. D

PROBLEM 6-3: MULTIPLE CHOICE


1. B
2. D
3. A
4. C (1,456,792 + 125,919) = 1,582,711
5. A (1,582,711 x 14%) = 221,580

6. C
Date Collections Interest income Amortization Present value
1/1/x1 1,582,711
12/31/x1 200,000 221,580 21,580 1,604,291
(1,800,000 – 1,604,291) = 195,709 gain

7. A
8. B
9. A
10. B

PROBLEM 7-3: MULTIPLE CHOICE


1. A
2. B
3. A (100,000 - 90,000) = 10,000 write-down
4. A (see solutions below)
5. B
Solutions:

Weighted Average Cost Perpetual


Units Unit Cost Total Cost
Balance at January 1, 2002 3,000 19.55 58,650
January 6, 2002 10,200 21.5 219,300
TGAS 13,200 21.06 277,950
  January 7, 2002 (2,700) 21.06 (56,862)
  January 26, 2002 2,250 20.6 46,350
TGAS 12,750 20.98 267,438
  January 31, 2002 (7,200) 20.98 (151,056)
Ending inventory 5,550 116,382

COGS = (56,862 + 151,056) = 207,918

PROBLEM 8-3: FOR CLASSROOM DISCUSSION


1. B
2. A
3. D
4. D
5. C
6. B
7. C
8. A
9. A

Formula:
(FVLCS, end. Age beg.) - (FVLCS, beg. Age beg.) x Qty.

Asset Group Change in FVLCS


From beg. (1 yr.; 1 yr.) (₱1,200 - ₱1,000) x 1 200
Purchased on July 1 (1 yr.; 1 yr.) (₱1,200 - ₱1,100) x 1 100
Born on Oct. 1 (0; 0) (₱600 - ₱500) x 1 100
Change in FVLCS due to Price Change 400
10. D

Formula:

(FVLCS, end. Age end.) - (FVLCS, end. Age beg.) x Qty.


+ FVLCS of newborn at date of birth

Asset Group Change in FVLCS


From beg. (2yrs.; 1yr.) (₱2,000 - ₱1,200) x 1 800
Purchased on July 1 (1.5yrs.; 1yr.) (₱1,500 - ₱1,200) x 1 300
Born on Dec. 31 (3 mos.; 0 yr.) (₱800 - ₱600) x 1 200
FVLCS of new born on Dec. 31 (₱500 x 1) 500
Change in FVLCS due to Physical Change 1,800

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