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,NSTRUCT'ONTO CANDIDATES

1. Thisis a FINALpaper.
2. Thispaperconsists of 5 sheetsor 10pages(backto back)..PLEASECHECKBEFORE
COMMENCING.
3. Pleasereadthe problemandthe instructions darefully.
4. Youaregiven4 hoursto read,comprehend, andsolvetheproblem.
5. All requiredsolutionsmustbe presented provided.
in theanswersheets/forms
6. Electronichandheldcalculators are permitted.
7. Useblackpen.

t , -

LEVEL1 . ACCOUNTING
GATEXAMINATION

1
PROBLEM

As at December31, 2OOA, recordsfor MonicaOutdoorAd Gonceptscontained

the accounting
thefollowingbalances:

Assets Equities
Gash P 180,000 Accountspayable P 34000
Accountsreceivable 110,000
Land 90,000 Nolasco,Capital 346000
Total P q80,000 Total P 380,000

Thefollowingaccounting
eventsapplyto 2008:

Jan.1 Received
P100,000
additional fromtheowner.- T t
cashinvestments
o) Purchased The vehiclehas an P8,000salvage
a servicevehiclethat costsP80,000.
valueanda three-yearusefullife.- r

.) Feb.1 BorrowedP100,000by issuinga notethatcarrieda 9% annualinterestrateand a one-

yearterm. ,-Y

PaidP24,000cashin bdvancefor a oneyearleaseof officespace. ,. o

")

LEVEL1 - ACCOUNTING
CATEXAMINATION
 I

Mar.1 MonicawithdrewP3O,OOO personaluse. \

for emergency

Apr.1 AcqulredlandthatcostsP70,000cash. \

to P15,000. o
May1 Madea cashpaymenton accountspayableamounting

d) iuty 1 ReceivedP42,OO0cash in advanceas a retainerfor servicesto be performedmonthly

overthecomingyear. o
P90,000.\
cash.Thelandorlginallycost
Sept.1 Soldlandfor PlOO,O00

P20,000of supplieson account.o

Oct.1 Purchased

I ttov.1 Purchaseda one-year,P50,000certificateof depositthat paid a 6% annualrate of

interest.t

Dec.3lTotalservicerevenues(g :gggltt)for theyear,P250,000.o

Totalcashcollections
fromaccountsreceivable
amounted o
to P200,000.

o
Accruedsalariesamountedto PS2,OdO.
I'
on handat theendof theperiod.o
remained
Pl,000of supplies

REAUlRED:

answerthefollowingquestions.
Basedon the precedinginformation, All questionspertainto the
2008financialstatements. yourcomputations.
Usethe tablebelowto facilitate (45points)

1. What is the total amount of revenuesfrom operationsappearingon the income

statement? R enr.occ)
€-:=::' i
expensethatwouldappearon the incomestatement?
2 . Whatis the amountof sup-plies

3. Whatis ,n" t expensethatwouldappearon the incomestatement?

"ro q ere
4. Whatis the amountof rentexpensethatwouldappearo4 the incomestatement?
RE
5. Whatis the amountof total wouldappearon the incomestatement?
< \ggrzso "rpens"ffi.t
6. what is the amountof lfi-ffiLom thesateof landappearing on the incomestarement?
\ \gree
7. Whatis the aniountof profitappearing_on me statement?
Q qs, as;Q
L Whatis the amountof un""rnffi" thatwouldappearon the balancesheet?
q#me
sheet?
L Whatis the amountinterestpayablethatwolld tp@r6n fne barance
Q
:- . < E
e F
wouldappear'onthe balancesheet? r
10. What is the amcjuntof total assetsthdT-t
( '1\a, soI)
43-
. . i i , , ,
f
thatwouldapBearon:thebalancesheet? :
11.Whatis the amountgf totalliabilities
R zoo. 45o ; :'
12.Whatis the amountoflhffiDital?
13'What|stheamountofnet"".,ffioperatingactivitiesthatwou|dappearonthe
statement
of cashflows? q rz.6tosc)
14. Whatis the amount.ofnet cashflowsfromInvestlng
activitiesthatwouldappearon the
statement of cashflows? (< oo,ooo )
-=:
15.Whatis the amount.ofnet cashflowsfromfinancingactivitiesthat wouldappearon the
statement of cashfloyvs? { r-.g€
: , 1 1 , , , , i i _ < # ,

LEVEL1 - ACCOUNTING
CATEXAMINATION
 i?k
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5
-
supporting computatlons , Answers for Questions 1-15 above
gg-tgsn-e8 o". *c-Sp"r'*\ aSp*crS
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CATEMMINATIONLEVEL1 . ACCOUNTING
 \. .:rr.
\- -\-

/ Answersfor Questions1.15above

C€^ .\ 2q.€cD

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rg\t*^Arar.cal,g lo,qr
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CAT EXAMINATIONLEVEL 1 . ACCOUNTING

 PROBLEM2

The following selected adjusted account balanceswere taken from the worksheet of Simply
Divine,distributorof craftsand frames,for the year ended December31, 200x.

AccountTitle Debit Credit

C, Celis. Caoital 220.000
C. Celis, Withdrawals 35.000
Sales 550,000
Sales Returnsand Allowances 7.000
SalesDiscounts 13,000
Purchases 200.000
Transportation
In 10.000
PurchbsesReturnsandAllowances 14.000
PurchasesDiscounts 16,000
Deliverv
Expense 45,000
CommissionExpense 85,000
SalesSalaries
Exoense 130.000
Pag-ibigPremiumExpense- Sales 2.400
SS & EC PremiumsExoense- Sales 8,248
PhilHealthPremiumsExoense- Sales 1.500
Bad Debts 5,500
Insurance
Exoense 12,000
OfficeSalariesExpense 75,000
Pag-ibig
PremiumExpense- Office 1.200
SS & EC PremiumsExpense- Office 5.668
PhilHealthPremiums
Exoense - Office 900
Interest
Income 8,000
Interest
Expense 5,000
Beginningand closingstocksare P50,000and p60,000,respectively.

Required:
1. Preparean income statementusing the functionof expensepresentation
format.
(15points)

SimplyDivine
IncomeStatement
FortheyearendedDec.31,2012

NetSales(note:l) P e+cr-.'Stro 3 3B\ccs

Costof Sales(note2) f€rqTocD C \-rorccrs \_
GrossProfit P ereenn'o 3l.eo\ooo
OtherOperatingIncome k BPco
SellingExpenses(note3) Care, rs)
General Expenses (note4) ( -+=e-og C t.o, 2uS)
OtherOperatingExpenses [+e) .oo)
NetIncome(loss) I J--ffi+\rA ( 1,rcs

LEVEL1 - ACCOUNTING
CATEXAMINATION
Notel: l/ef sales
Sales
P .9so,oog
Less,:
Salesreturnsandallowances P 1'oao
Salesdiscount \lr eED e.o.ooo
NetSales P g g3g,ocD

Note2: Cosf of sa/es

Merchandise Inventory, beglnning P 5o,ooo
NetCostof Purchases
Purchases zobr€Oo
P
Transportation in to,ooct
Total
Less:Purchasereturnsandallowances P lcl,c€ tepro€O
_
Purchase discounts z \
k -o,. o c P (3b.at'o) %-
GoodsAvailable for Sale
fucO Zaoroeb
Merchandise lnvty.End **|erc<€- boroob
Costof Sales
P -.z-ao''eog h.€

A/ofe3; Se///ngexpenses
Pag-ibig Premium Expense P 2., qsQ
SS& ECPremiums Expense 8,aqg
PhilHealthPremiums Expense tr SsP
Delivery expense 4s,oc()
Commission 9s,eP<>
SalesSalaries I oo,sob
SellingExpenses
_E_3i13 \qS
Note4: Generalexpenses
Pag-ibig
PremiumExpense P \ r?..eQ
SS& ECPremiums Expense S. br4g
PhilHealthPremiumsExpense Qo
Baddebts
Srsto
Insurance \a.looo
OfficeSalaries
4S.oo
GeneralExpenses
-P too.
. 2to$

PROBLEM3

1,200A,t^::nt*Tl"r1:tt,compurer
!1-J-alyarv saresandserviceenterprise
P900'000cash.Thenewcompany byinvestins
nai tneioilowing
transactions during
January.
a. PaysP60,000 in advancuiot th*" ,ontn,.-r"nioi orii"u]showr,oom,
andrepairspace.

CAT EXAMINATIONLEVEL 1 . ACCOUNTING

 b. Purchases40 personalcomputersat a cost of P15,000 each, 6 graphic computersat a
cost of P30,000each, and 25 printersat a cost of P4,500each, payingTSo/o
of the total
amountdue upon delivery.
c. Sales,repair and office employeesearn P126;000in salariesduringJanuaryof which
P30,000was still payableat the end of January.
d. Sells 30 personal computers at P25,500 each, 4 graphic computers at P45,000 each,
and 15 printersfor P7,500each;P750,000is received,incash in Januaryand P307,500
is sold on a deferredpaymentbasis,
e. Otheroperatingexpensesof P84,000'breincurredand paidfor duringJanuary;P20,000
additionalincurredexpensesare payableat January31.

Required:
Computethe profitor loss for the month of Januaryusing
a. Cash basis of accounting(3pts)
b. Accrualbasis of accounting(3pts)

Sales
Cost of sales
Salariesexpense
Rentexpense
Other operatingexpense
Profit(Loss)

4
PROBLEM

Nilo BurgosHaulersis in the cargobusiness. The entityis servicing;the cargoforwarding

requirements
of businesses withinthe Calabarzon year,Dec.
region.At the end of accounting
31,2008,thefollowingdatamustbe consideredto effectthe adjustingentries:

a. On July 1, 2008,an Q,lghteen-m-9nthinsurance coverageon truckswas paidanddebited

to Prepaidlnsurance. Premiums afrunted to P18,000 andcoverage beganimmediately.
b, During2008,officesuppliesamounting to P8,000 were purchased for cashand debited
to OfficeSupplies.At the end of 200A,the inventorycountof supplieson handwas
P2,000. Inventoryof suppliesas at Dec.31,2008showedP3,000.
c. On December31, 2008,LipaMotorscompleted repairson one of the trucksat a costof
P8,000;the amountis not yet recordedand by agreementwill be paidduringJanuary
200c.
d. ln December 2008,a real property tax assessment for P16,000on landownedduring
2008was receivedfromthe city.Thetaxeswhichare unpaidand unrecorded arealready
duebutthecompany intendsto paythemon February 15,200C.
e. On December31, 2008, Burgoscompleted a bulk-hauling project.The bill was for
P80,000payablewithin30 days.No cashhasbeencollected, and no journalentryhas
beenmadefor thistransaction.
f. On July 1 2008,the companypurchas_ed a newhaulingvan at a cashpriceof P236,000.
The estimatedusefullife of the van was 10 years,with an estimatedresidualvalueof
P36,000.No depreciation hasbeenrecorded for 2008.
g. On October1,2008,Burgosborrowed P100,000 froma multi-purpose cooperativeon a
six-month, perannumnotepayable.
12o/o Theprincipalplusinterestis payableat theend
of sixmonths.

Required:
1. Prepare entries.(20pts)
theadjusting

LEVEL1 - ACCOUNTING
CATEXAMINATION
 f f4i n S S T S g l
2' Describethe eflegtsgltr",adjusting entries profit,
on totat total liabititiesand
owner'sequity'Fillin the tableandis".1*1to inoicate'an'in-.r"u""
---- -" "': ".r"t., and (-) to indicate
decrease ' a
to thementioned items.tf A ptsi .

Effecton
Amount Total Total Owner's
Profit Assets Liabilities Gaoital
a. (o.9OQ

b. n.ab(3
c. q.obo + -\-
d. I\o.OO(5 +
e. 60roOA + +
f.
+
lL€ob - O
q. e. EFs -+-

LEVEL,t-,o&ourr,*n
cATEXAMTNATT.N