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SFFTFMBER 15, 2013

SUNDAY, B:00Al."1







The TGR Company commencecl operations on Janu,ary 1, 2009. -Ihe company's machinery
account is shown below.





I r0 t)ri
t -'l-

Sept. 30,






rl .:1.




2009 Purchase on installment

Payments from Sept. to Dec,
Oct 3, 2009 Freight and installation
Dec. 31, 2009 Depreciation
2010 Installment paymerrts foi- acgils;'ri:i,
June 30, 2010
Dec. 31, 2010
.rune 30, 2011
Dec. 31, 2011
lan. 1, 2012
Dec. 31, 2012
Oct. 1, 2013
Dec. 31, 2013



on Sept. 30, 2009




.f iil,Jt-l'i

Acquisition - trade in of oid t'aCiiii-:; i


tt: i,i){j


icii,7il L







The details of the ti-ansactions are as follours:


On September 30,2009, a machine was i-1r.rir:lt:tsrtd,.\:r iil ,.1;lttir,rn' r'.,3:;ii, -l-he Iist prrce
was P180,0C0. but 12 pay.nents gf P1c1,rlf,)0 tlcir \,1/er"i .r,.tce hv I te r:itr.;any. Only the
monthly payments were recoi'ded ir'the m,icl:iner\: aLa(runt sirrii;'g ^.'ith:it:piember 30,
2009' Freigirt and instailation clrai-tc:; ol'i)i:.IC'.1 1^/ere lar(-r a,]r-i il,a;.1_lefl lc ihe machinery
account on October"3, 2009,


On June 30, 2010, a machine was purclrasi:"*1 ici.
P240,000 when paid for on July 5, 20i0.


Cn June 30,ZALL, ihe machine acquired far Pi57,ZAL.r lrras ira,i€r{J i'cr a j.:ioer one having a
list price of P279,000. Ailowance of p129,00C r^,as recei;-ei on the tld rrai.tiine. r:l-re balance
of thc'lisi price being paid ln cash and,:hai-gc;r io ilre rra,.l'!lei;/ ijJ(.rLrr:1.




,-;,'j:, arrtj recorded at

d) On January 1, 2AL7, the machine acquireci on January i,

20U,1 rvirh cr:si o{' p132,000 was
sold fbr P75,000. The cost of removal ancl crating ictaierj t,3,75c.

e) On October 1,7A73, the machine

purchaserj nrr



21,'{-19 !,,,1i1,

s:.)ic i'or p24,000 cash.

Assume a S-year useful life for TGR Company,s nrachrnerT.

1, lVhat is the total amount of gain ,::t the Sul;+',,ii ;:i.if -i:.r Oi tr-e l1lc(,it,:-r?y
January 1, 2009?

A. P50,400



(:. F'16,.15r.1

Peae 1 ct .l P).);?





p63. but all entries relating to the sales were made in July.950 What is the adjusted balance of the Accumulaied depreciation account on December 31. The cost of gor.600 Page 2 of '14 Pages D.terea'in the voucher register in June but the goods were not received until July. luns-S. June 30. P462.e 20il:l a) Invoices totaling P27.200 D. b) Invoices totaling P8.600 .2.X2 a) June inrroices total:ng I. 201-? anpetars as follows: 201.740 What is the correct total depreciaticn provisior. What is the adjusted balance of the Machinery account on December 31. of P26. you discovered the following facts: illlt.2 You have been engaged to audit the financial stater"nents of HABAGAT.000 IO-L.04A L.ik.2012? A.707) a Expense P75. but the invoices wer:: daieu iune. P465. 3.2 Purchases Goods available for sale L.74A D.492 A. July 1.000 615. P703. D --:]-tr-t:1-------.i-i llre .ril . C.100 were enter-ed in the voucher register in July.807 (P18.irE paper trial balance is prepared showing all accounts with activity during the year. and the goods were received in July. for the fiscal year ended June 30.400 B. P457. P700. P705.ocoooooool-]-?'-1::----- PROBLEM NO. B. but the goods were rict received until -lr. d) were made on account on Jr-rne 30 and the goods were delivered at that time.000 7013? 5. both at the beglnning and end of the year.900 were entered .200 (the corresponding qoods forwhich were received in June) were entered in the voucher register.QAQ P51!*@ Although the books have been closed. P728. All purchases are FOB shipping point. Sales 6. c) Invoices totaling P16.0C0 Inventory. 540. P737. 2013 Cost of goods sold P 75. p94. 20L3? A. July. c.500 were enlered in the voucher register in June. 20t3. but the goods were received during June.19. The company uses the periodic inventory system.40A B. P694. INC.utoff. it. A.9/r0 D' P669.500 c. 4.4OO What is the adjusted inventory on lL. In the course of your examination of the lnvenii:ry r."I-. P397. your' \!r.100 were er.215 ?79.L40 C. b) June invoices totaling P11. r-hr.oucher register in July.540 The entry to correct the depreciaticn prr:vision for the years 2009-2013 should inciude debit (credit) to Depreciation Bclained_Earntngs P6L. p102.ds soicj sectjcn of the income statement prepared by your client for the year ended June 30.747 (P79. -lr..' 1 and -lune 30 inventories appearing above were deterr'nined through physical ccrnt anrl no reconciling items were considered.600 B.200 B.J0. P86.* the years 2009-20732 A.492) P18.

vlp .a){-)c ar:cj total chargls siroinrea-tr.2C0 i.y .. 2{11.000 ii Novembei !va5 correiiec I)l irli.000 B..:r rertit:.! .. r.. .lIffiilfff.r.-. f . p395.i.A.t7.6i..400 P256. ri< :n )ri--i--r.liorv 6ote with a face value of P120. .i.. 11..a.576. .00.).900 t The accounts payable balance on Jrrne 30. lJ"L.rr. r. l:n.. P507. What is the adjurstecl Decenrbe.\.rsemerimJ riisf.}AA D.ri..f i.2.lo.r-y_erbct-3-Q P256. 'ofirD.::i-....n. P361.itc:).c* accolint of Tandern Co' lvliich was recognized in Decentbei .960 72.. i..[tat ..339..r:_i.ZOat 'l-he cash .r "":r'" . i-:... What is the adjusted Decemi-. P592.000.960 was recorcled iri the c{)nrrpirn.i .:.3 si:ov.:..600 I is D. .. :.1C0 A.otirir i::-t baiii. L . P537.iuine 30.000 t3. 201-::? c.i.r.t +.) r:.600 [. .800 C.r1.:'-'.Jo. p735.00c.e. accouni. ' * r.!r_' i..000 D.../iB5..r-rrr €i 3 : is t. What are the adjusted bank batani..i.:'e:-. g...r l-l i..-.. P584.r".100 .t}r..c_: of F3C5. 2... p_]9... Iniirrcleti ri-r the bank crebits were cost of checkbooks amounting to p1.. y'rlso in No. A check for P3.i D.ilffiil what is the correct arlount of ourchases was charqed L:y.. -i1.yore: r.-r. i:.000 fori collection.10tj l 10.P10c. Whal is the total outstand:nE iiecks on tl.-t.boc.r -'-"'-""'' pRoBLEMs i. On December 29.-c. you obtained the foilowing inforrrration .tfr.i:{. ir:i.l0-Ce.AUpmNG 7._rre _is .i r_heck wri.c:. oi its receipts aithough the bank was abrelt" i.n :"r\r ''' and .rc.j. 113 on a Tl're bank error of -. i. Bank debit memos for December r.. [. P55.i)50 l.1ii " 6:4tl P3 i fi..000 A. 13.-.. B.rernber. piaceJ . P:i7..e.60il 15. P516. i.: 1-.5ilr'3i. of P204. 10^11 Tal.1r. [\ P259..500.3 I In connection with your audit of tlre financial stai.r.-e. for the year ended December 31.).000 Pi76..-.. P135. 2013..rhe year eniJerl .1 .... pl 19. F2.600 ?:. The bank statenient on December 31. pr urf p735.rgi{ iir [...-rti:. il r l)..t.960 B. a Lii.^itL. The correct cost of goo<is sold far the year *n. l. i43*t. i[.: fi ri.i. 1i2 ir:r t".cipis.-. i-r... . tutil et -.r . customer's returned check fc:. PZ7.i lhere were depositsintr"ansitamountingtoFBr-1..n hanl.3.r-i i)zi]6.50i) A.. n4b7 .tsi.cetn Co...i irr-'ir{.760 ... . Among the bank credits in November was a ct-rstonrer's rirjtrJ {oi.300 PROBLEM I\iO.1r1(c rb. 600 .ihe bank in error against Tandem Co.rec a Dsiar. t) r136._ .:i-nents of TAi\DEi'4 CO.] ..r-.i0c B. The colnr_. r 'The bank statenrent on Nover-ni:er 30. reqh o:j /i. P.360 What is the total deposits !n transit cir A.-:r-jilr:j . 8. t-. 201-J r.]?ii.. you ascert.10 anc a p40..' Ds-.C00 U. n. 2013 p553..:ii iei'i1? l_ P3.1.--riiectrcl fcr l.lula june 30..uie.4)3. I'i... p526.. *.r:e.A.ii..+i a.900 P744.j4' .:n rfre che:king acccunt of the company.. 2013?1 i.1r.r.)/ .s-Brjc What is the correct inventory on June 30.i..:_. C.l ti..l.ber a.r.1:1r1. a .''. 1396.!: i. (.shoulci lie increased bv A..1"r p17g.". Pti6.. B.rr.:.000 14..ial.600 and disbursemens of P4a"/. ir595..acp.200 P44... P715.

560.000 19.000.845.000 P4. It further estimates that 7.500 P690.000 P780. has acquired a track of minei'al land Mina Mining builds necessary structures and sheds on the site ai a total cost of P12.422.380.000 B. invested its excess cash ia r.000 P4. What are the estimated depletion and Ceprecietion charges for the 7'n year? A. B. P2.000 and was 50o/o depreciated when P3.740.000 P2.) The land will have a residual value of P1.on-t.422.000 D. (Assurne 1L years of mining operations.000 P1. and depreciation charges for the 1lth year? Depreciation Depletion P1. 4 for P50.422.000 Depreciation P1.560.000 A.845.000 tons of ore with sufficient mineral content to make mining and processing profitable. On initial recognition.000 C.845.560.000.500 A. P2.000 P4.380.000 P780.000. B" C.380.000 5th yearr . B.540 ooo000ooo-------PROBLEM NO. Depletion P2.000 B.422.550. Mining machinery installed charges for the 1't year? Depreciation P870.50A P2.500 tons of ore will be mined the first and last year and 1"5.000 P4.ading'equity securities during 2013.845.. P1. purchased.740.540 P2.845.845. P690.544 17.560.000' The company estimates that these struc'ures can be used for 15 years but. at the mine was purchased secondhand at a total cost of The machinery cost the former ou. C.504 P2. P2.PROBLEM NO. P1. What are the estimated depletion arid depreciation charges for the abouL one-half the present estimated mineral ore has been removed and yvill tl:r:n be rrvorthless.000 P1. 20. they have nc residual value.000 P1. Mina Mining does not intend to use the buildings elsewhere.000 P4.845.560.000 P1.000 P1. 18.845. MINA MINING CO.740. P1.000 What are the estimated depletior.000 P1. The remaining machinery rvi I iasi i. C. the entity rnade an irrevocabie erecr':ion to present its securities at fair value Paqe 4 of '14 Paqes .000 16. n e" Depletion P4.740.422. What are the estimated depletion and depreciation A.000 tons ever/ year in between.5 SANTOL CORP. Mina Mining estimates that the acquired property will yield 150.000 P870.422.380.ner p9.500 P4.000.500 P4.000 P4. Mina Mining estimates that irirout half ol" this machineny' v^rill still be useful when the present mineral resources have been exh. because they must be dismantled if they are to be movecl.000 D.500 []1.tuste.l b'rl tn. Depletion P2.422.472.600.845.000 What are the estimated depletion and deprer-iaticn charges for the 6th year? Depreciation Depletion P1.L dismantiing and removal costs will just ahout offset its value at that time.000 C.845. U. D.D-egeelalra! P1. Cost is to be allocated equally between these two classes of machinery.560.000.427. 1-hc ccmpany ooes not intend to use the machinery elsewhere.472. P4.000 P2.000.

000 purchased r.. Inc.130.980. Securitiqs 520. B.335.000 60.00g What are tl-re balances of the iollc.0c0 0 4.000 P 500.000 loss B. Kelly.380.085.3oo.:1t:3t0 and 60. and 30.i. trading equity securities consisted of the r>lii.:]:y:. 7013? Ui"ire. the company's I Investee Cdmpany Kelly. 2O!3.000 27.-0!!PL.00t) P 1.!.iiri'".000 P4 43_0-L00 and 15.000 ___ 130. 20L4-) lJi.7 .00c on L.000 A. Pi00.000 Eqirlg_SeeU![ies F.000 60.000 700p80 P3.000 P 450.0c0 74. A.3rJ0.000 I Fair Value Cost 450.000 gain D.110.ving a:ccuints as of December 31.130.000 7.000 60.llized Non-tradirtg Gairi on Ncn-trading Equily F-cruLly-$-sc-u-nllcs SecuritieS PO P4.380. What are the balances of the following accounts as of Decenrber 31.450.000 P4-UA.r:. D.000 gain .000 i60. Kongga Company Yogi Enterprises Totals 30.'*.000 2.000 P4.ecelrnber 31.0 1. ir.?:1^lrj:^.000 23.000 0 0 2.000 2. _--_ sEpTEMBER 1s.430.000 4. What are the balances of the following accrtlnts as of December 31. P90.160.-* .500.335. What is the realized gain or loss on the A.00c 2.006 additional sh{res of Kelly. P10.340. D.i.300.000 2. santor sord 60.l-.000 A.0Ct0 shai-es of Kongga Company' On December 31.000 saie ot Eloy Corp' shares in 2014? losr C.-. C. Inc.t1:tles sc. Eloy Corp.i'eaiized Non-trading Equifry Gaii'r on Non-trading ^l A. si:ares for P2.000 shares of During the year 2015.470. Yogi Enterprises Totais securities Shares Cost Fair Value 30.000 porrfolio oi ironsantol's Kongga Company at a loss of P90.13o.000 480.000 P4.090.951J.ii.200. B. 0 0 22-5.000 30. P4. Santol's porffoiic cif tton-irading equiby securities comprised the following: Investee ComPanY Kelly.zed Equity Gaiin c. 2013 - / suNpAy / 8:00AM 11:00AM I tlrrough other comprehensive incor"ne' portfolio consisted of the following.160. Inc.300.winq: Yogi Enterprises Kongga Company Totals ?t. EqurU-Seeunltes F.000 3.i*n .380.00Q Shares 6L).400 4.000 1.000 _loQ. Santol sold ali the Keliy.000 15. Inc.c:0?jli:.000 Investee ComPanY P2.610. i I D.000 4.&La 1.^'?1.000 4.450. tau-Valrc Cost .000 2. C. B. 2014.000 P 425.s of December 3L.fl. 2015? Non-trading tlnreal.2015.r i'jon-trading Securities P4.000 1.'- . P120.335.

: I ' _. b..3 lelierred at that time to have unlimited useful ?'1.. The balance in the Organization Cosis acccLinL inclur..j.v.'i 3.:.. P450.c' a.. ii.: ::.r.: r'r .JLii. A.000 cost of improvements 'r.'.r'r.'xorcted revenueproducing value of Licensing Agr-i:erne nt . : t..-j . . .1/1 r-I )IJ. 4..)ar-rrrft. nrovable assembly-line eq ripment ic. rnrl Lr*.. irot.: .: :i.i.r.l.l'.000 ... .l i.e covered by the patents arrn inclr-ided rn llre Pateni.'r l-. ''i ' ..00i1 ilt [''rr-:..4'J0.llance (part. which Donna.ri". A lrl. Uaterrts had a remaining ieqal life of 17 .-r rrave b9en ).ri :1. as tenant. Donna spent an additional P-c1...000 L.. In December 2A12...55.l : .i. an explosion causeC a fj0oz. made to leaseC fre-rt:se -"i. What is the net realized gain r:n the saie cf secirriries in 2015? A. 26. .r".000 for the advance collecticn qlf ..1.r.r u Ci]r\ engaged to auciit Donria': financrai l.: ?.] ers-ql: P 15.r .2013..i'.e.r -.grTsndf) fr-or.i '. p Cash Accounts receivable Allowance for bad debts Inventories Machinery Equipment Accu m ulated depreciation Patents (information 1) Leasehold improvements llnforrnaiicn 5) Prepayments Crganization costs (lnformation 5) Goodwill (Information 4) Licensing Agreerneirt i (infirrmation 2 anrl 3) Licensing Agreement 2 (informaticn 2) Additional information i r:r:r 3i. P. Z5i). The baia.iri.rt Decen..:r. DONNA MANLIFACTURING COMPA|{Y \^/as incorporate:1 or financial staterlents for its first year of cperalir-rns'/ on Dlccen'her 31. r:i:i.1013...r-rra:r. Pl-60.Ci."ldrre( [ Dr:cci'1b. -i.l(1ler-1 JanUafy 6.UJU L'..i.i'iI'l.1:.rCLr:..'!) ij'j i. :.920..l"ti '.i . Qqbii 330.c00 '.r'!'.r.J. . 2C72 for an advertising program which it is estir'natecl rrvill arssist i. ir'2.-.i j'ir 1.i{:iZ."l.000 l I I PROBLEM NO.:.:i rerluced by P30.r.r. : i -. 20i ..6 tl i janri.. ir.rith a tcrtal C-(iiri.iai-e'ne'.Lrt tif [-icensing Agreement l was determinei trL he P(r{10. P7)-Oj:A1113. i ri. P1.r:i]c: i ). -i':li.a lr il3ir id in the leased premises in Decembcr 2{i1J.-)1i :o ii:rr.-.l.:i' . P460.r P2.res.i.' I ".\io\/e ntachinery -i-. I .it ' at a cost Patents ior Donna's man'lfa -turinE fro(ess .000.i-.r:ce of l"i.i .r'..i l -...... JrVU\.lCf Presented beiow is Donna's trial L.040.: r r :l.Ji.:':'.io. P550.<.1i' . Donna paid its rent in fuil cliriing . Donna purchased two licensing aqreeinents on -l{lriuili-r. What is the carrying amount of the Patenis l.r. The balance in the Goocjwill account inclucle. tr.r '.i6i l-re6grri. ia . The Leasehold Improvement accounl lnci'ides the fc:lir.-. --'-..i.. i 2.r'ig litrrna's sales over a period of four years followinq the dtsbursernenf 5..t !i'.lrs.7ea. ].i-s 2. . i l:il.00{) n1\[ I n.25.000 B.b.LrCr0 i.1: ict 'int: yuai.r ri-r-i 3.e i.. B. t-..' -)l .040..000 a.i i.'r : 1..r \.t.. 2017 for lhe leased building thal Donna iis.r. t'r. .. l-i: .'-' 'cl \ e .-':i 'l Ji r.F ' . .rr...' .-1r.f r .lr-.t 2 -. r Ie r-ompany s Yl.:r.r 1.'.l the orqanizational period.

r'uil for tl-re v. 31 I 4. . P600.. P2.000 C.100.)/o Dgfi:tite..l:rrii:\ advance on a sales contract. ts.: i.1 I -:t.535.ZBA months 88. ...16A months 307.r.500. also there is a crc*ril f. C00 P. The only enLrie:..iE (0-1 .296 on L)elr. lji.i.i1r i'i.jr.tlA\rLA 27.ii. . i.tC ri the decisions i r rt lt.:150.l(. P1.fleci: ail the li.... P900.. A debiton December 31 fo: ihi.. t.i r. 2013? P1.S6a_ 5' There is a credit balance in one a. .-i to bi '.'. uf f)€:crjrrl).00c .c{:i..720 months 24.1 Particulars Jan Oct.100.i -n:: cds[0iner. P2.3irt. ii represents an re .000 A.1.000 A."'ii_./. l. : The December 31.al_a:ce E mr:nth P37Z..:..':r.' 2-:tt 3.QQM What is the carrying aniount of Licensing -----5EflEryl-EEts-$-?g..r.i c{.'.i1.. it le a. 2013.'le :"t. FINAL PREBOAT?D EXAMINATION I SUN[U]L'/ I s :-Q0A[1--1 ].rri.---.000 c.unts cjisclosed the foilowing information 1. wh i cl-: if : r) i i i r.t... P2.AAC AG 0-1 1-3 3-6 Over 6 t'J u r-ri.: i.i 'i r..000 B.r.iuv . u.-.if :htt . 28' 29.jr. '-'' .: 1'.000 debit B. ..t-l months *i. An aging scheduie of the accounts receivabl.1it6 f i . . ...i ''.--t!:er .. The Allowance for Bad Debts accoun'.._li I . rl'..2A13.. lCij ig i.mttrrt.11.r"'}r..-:. P1. receivar-. account charged off Octobcr" Ji..Accounts [leceivanls corrtrci aci:. 7 You are examining the financial staternents of SALUYO-T COMPAXT'/ Fcr lhe '7ear ended December 3t. 2C13? P624.000 debit C.13 agreement L on December 31.1cnts cit De.. 1-'j. i'r.."t -i r ll. P360.jt. .' '.iJ. l' r' 11.t: -r-.rit. P780.. 2.3.: -r:q. balance ln the. i.. What is the carrying amcunt cf the L"easehokl tffipirl'r3r.r vriii l. lO..911..500. f E. The net adjustment to to Retainec! earnings information 1 to 7 wili amount to A.000 necessa-rrv coi-rect. P60c...Jjr. P2.470.e:c"tui.000 c..* I i 1 31 Balance Uncollectible: Customer A Pl 290 i) I .or rryhich .]t-ti is P788.s: a:r")uitl t'..).".llusleil a.' :.*-- PROBLEM NO. ..I-i. Itlel Debit pi. 3nr:r. What is the cdrrying amount of Licerrsinq agreenient 2 on December 31. !i.535...'.irri'. Zt)t:.-nerrharici:. Your audit cf tire accounts receivanie ancl rlther relatecl accc-.. 3. 2013? P2.rr.c. :': . 1 -r1t i-ri1..000 B. r. e:.errlber A.l _ili.cPA REVIE\! SCHOOL OF THE pHILIpptNES (C9AR) . in the L-laiJ Dei-ts ExJr:i.r'il.. A credit for P1.ns from prg5sn1.ilO0 D. ' r.i:ie . l-. a.e ir. 1jr ?792.t.000 credit D' P2'sB0'0o0-::::1" - D.580.:."' b.000 D. ..._.i" accoLints receivable of P2.:. )rj Dec.000 30.r are as shown in the table belcw: .

is A. Bad debts Allowance for bad L.. Bad debts expense 13..vitl. A chreck clate. P793.r i. P3?-.:.A FINAL PREBOARD EXAMINATION _-----sr-]:TEpiarn is. A.296 I.796 C. P19.296 C. c.2013. Your re'riew of the bank reconciliation statement disclosed the follr:wii-.664 D' P33.yment of accounts payable was recorded as P:l2.-€ icCouflt at December 31. On December 22.. c.2013.'at-rle on Decemher 31.'-'. P19. 2013? 10.i.ei'. Saluyot should report bad debt expen$? ii-'i -{. 2013 amounts LU 34. P774. The company maintains its Lrank acccr-rnt .J:i1. MAr(i:.296 D. Accounts Ailowance for bad D.200 ii of C P10. P2g. B.296 A.796 debts Allowance for bad 13.'/cf the unadjusted trial balance as of December Bank.i.2013.2013. is 1. 2014.!'.l Decernber 12.296 ts. The required allowance balance (per:gi:lu) cn l-iecember 31.000.\qi - auprrlNc PROBTEMS 6.0il0 Tirese 4. ?-.crli'irs. 1.296 A. P13. Allowance for bad debts Bad-debts :ll-:::----- PR. On December 28.cpA REVIEW SCHOOL OF THE PHILIPPINES (CP. ?27.296 B. the company issueci <-hecks to creditors totaling checks were released on January 5. A.344 B.OBLEM oo'Gooooo-------- -----11:!-oo NO.:llidcd in the deposits in transit. P77g.-i-r.800 Allowance for bad debts 1A. You were given by your client's contrcller a cr.000'"t. No adjusting entry is necessary.rma ii. The adjustment to correct the entry rnade on Deccrnber 1. Allowance for bad debts 10.. Sr:cr.PCTIV\TIOr'] was incorporateci 3 years ago as a trading company engaged in the sale and distribution oi i'rardrruare and electrical supplies.936 What entry is necessary to adjust i. Upon examinatlon of the checks return3d by tire banli. P1i5. Its offlce and store is located in Batangas City.354 33. 20L3. These represent collections of accounts receivable from c.13 3ii. The checks were actually deposited on January 5.2013 in p. expense receivable expense debts receivable debts 32.296 D.858 The net r"ealizable value nf Saluyot's accr:unLs re. . the bank erronecusl'i credlted the account of San Felipe Trading for P195.gA2 35.ln : .2014. P788.058 1.8{i0 B. Bad debts Accounts 1.8 sAN FELipE TRADING CCR. and the company's accountant decides to adjust the control to the sum of the subsidiaries after corrections are made' 31.800 D.000 representing deposit for the acc. tlre actual amount was P21.34/. Postdated checks tctaiing P40.796 Bad debts expense ir.858 L. 3. Bad debts expense 1'A. The differences cannot be located.000.':t-r'ri :rf another company. zot: I s The Accounts Receivable control account is not in agreement with the subsidiary ledger.

fr20.-.ees'ed'yances for P5.y made an ' ir.iriirq -.ui ts i'eceivable..LPA RtVltW SLHUOL OF I HE PHiLiPPillES (CPA.rrbt: not reci:rded. issue Np.r'..ri-i'..".pment was not recorded on the compan'v books. 3. This pertains to p. 201"4.p.3 amilnteC to P89. ^.io:.000.11r...C{ Seniorit'i Bank 50c i4ultir.i i-r:t-c:.u..rtt'.of P75.R) AUDITING PROBLEMS - FINAL PREBCARD EXAMINATION FlANILA _ SEfltMsr:R t5. r-ash vr-:uchers i'or '.L) 'i'or qoods frorn accounts receivahie..e.j wei-e not yet i-ecoided.:n quoted prlce as of Decemb.r'.ccounts receivable pr +l:. 2.: rncluCerJ ori .i was deducted filrt of accc.nri .. :iU . Your physical count of stock certificates disr.t. Deposits in transit and outstanding checks at Decenrber-3i.. 4. Collection of P15. bi.q..:l: i".:lt'.r secur.77-0 was not recorCed. .eid at the last reporting dale.:.350 were not reccrded in the b:ck..i. aild all secr-rrities are consicr:..2!13.c-.' .:f P3-..r' i*dgers.. re i.\t Decernper 3L. The Petty cash fl.000 s. i...' .l 2 -)l .e i-leii.y ':':rr..alue chai-.i :.r:.<i:hedulo drscir::.oair.)0 Your reriiew of the accounts receivable .:0i3. : r i. 'iar r-t -r't-'r :rt.-. Goods scid cn account and ileiiriere(l o.'.oI_9lur€g 2.l..::c l.':\ lYi. ir".'evccabie election to present fa.-i ilrl -"....:'.3r:r. tr . :ia: r.'00 1r...cir.r .i'1.200 ancj P132.. -i 1 .810 were .275 on Ociobr:r 31.1i :i. San Feiipe purchased sever.i:raticii: i.r:s i1r-.'i.:. refti:1.2013. San Pliguel "A" Seniorify" Bank Multivit l-ofal Na.ilii was :r*ditecj lo rhe account of Supreme Mercantile. the compan..l5UlluAYf_8-Q0AM - i1:00AM 5. te r'. A customer's deposit of P38.. 6.090 n-raiirtaineo crt dt ini::ell basis lras countert cn )arutary 2.... co|. 20i. Transfer of fuhd of P59.' ')rll-.J cash advance to an officei. F Aliowance for doubifui accounts Sales i0. ?t-'i 3 anr':urr[ing rc P31..rr.:ra.rcrn Cetl.8Ci aii rlatec December 2013..ri it't. 2-013.C:: . 23i3 is P68i. 7.r.200. accounts: 'rlr:r l\. 9.0c0 1. A check for rlii "l The unadlusted trial balance of the compan'/ at DecerrLre r ar 1-1. 21013 1. I Oi : .:.i.hares of Wiiliarn Lines tr: be held . l:t I'i " 'r.ec1 1..._.\.'S tCtaling P17.:s trading securitles. the nrarket va!ue per share is P1 5.300 to Secured Bank current account of DBS Securities was not recorded.rcle petry. B.t.. [).750 in payment of a n-rinr.l .arioL:s expenses totaling P19.e. :.0C0 w i. i.30C and entplo'.g:]s in ... .trket(lbi€j :.ti.]-u :ti-f..r repair ol office eqir.rrr... Unreplenished erpenses of 5. The cash in bank balance per book orr Decerlber 31. l. interest earned arnounting ic P5. You alsu noted the following inloi.. iiste i b.v had the investmeitts rn equii. A.C1.-r I .

shipped FOB destinaticn by the supplrer on December 28. l.000.rir. ii. 2013.500. sorci to a customer on FOB shipping point on December 27. 2013.2013. A promissory note was issued by a customei' to San Felipe Trading for goods purchased worth P168. 2013. On May 3L. ?-A1. Orr july 9. -i'hes: irrrprovements will be amortized over 5 years. installation cost P11. Goods purchased In cash to San Felipe totaling P89. Goods consigned 5. Goods costing P195. 2013.600 r. 2013.700 were returned to the supplier on December 22. which ref 1.ri Paces . Your re.5?-0.045. Total advance rental for 3 months yuas rrade amounting to P165. A physical count of merchandise on hand rryes rnade on December 30 and 31.873.450 worth of suppiies was bought and included in the inv:niory.500'.. ann testing cost price of P52.637. These goods witrr a sal!. .000 1.000 _ (916. Prepayments consist of: Prepaid advertising Prepaid rent Unusecj office and store supplies Tolal ?'114.7C14.0110 _ 1e9-_Qgg B3e-080 Prepaid advertising consists of paymeni 'rr :ir . a total of P38. No amortizatlon was recorded as at December 2013.uit). 31.lo eni:ry lo set up the expense was recorded.vere included in the physical count. The computers' - - Paoe 10 - o1' 'i. iected a balance of P3. 2014. plant and equipment consist Furniture and equipment Delivery equipment Leasehold im provements Total Accu rn u lated depreciation Net book value cf lhe following: Pi. These goods were still inc!uded in tht. value dated November 15.000 which was booked as leasehold improvements on September 30. The promissory note carries an interest of 12o/o per annum with a term of 60 days.crl"redule and the refund was received and recorded on January 10.5. 2. it paid additional charges which were taken Lip as Repairs expense.000 was booked as Prepaid rent. 2013.r a cos[ of P363. San Felipe's propefty. The cornpany books purchaseo office supplies as irventory.s00) P2J_Q&lgA The building under lease was renovated . -ihis was reflected as part of accounts receivable. 7A13.830 and a cost of P35. Bad debts are provided based on 2o/s oi' outstandinq accounts receivable at the end of the year. These are delivery charges P12./ieu/ of lhe inventory list disclosed the following: Goods costing P148. San Felipe renewed its 5-year lease contract cn t:re office building which expired on October 31. unused suppiies inventory per physical count amounted to P53. the company bought new corrii-.4.2AI4.vere already recorded as sales on acc:rn!: i-:'-ri '3.000 __ lsJ-aQ0 P3. 2013 by a supplier to San Felipe was received on January':.300. In addition to the cost. As of year-end. 20L3.000.000.040 165. 4. 2013.'uters totaling p325.:i5.0.000. The purchase was recorded on December 30.3 shrpoed only on January 5. Included in the physical count were qood:.ear-enci.ip'rqpl6r.200. No interest was accnled as of ).er-tisiflg agency for the design of newspaper ad which will run for a period of one year f:onr . 3. were recorded and received on January 5..000 sl-iiprpsd FOit shipping point c'n December 30. for P41. The expense is normally taken up after the physical count is made at year-end. 6.2013.

.?}"A c.i. 1".20i3 are Accounts payable and Accrued expenses of P523. the foliowinq information was discovei-ed: 1.3 Representation expenses for Dec.ksl p S00.000. 2015 Sept. P75.i20 The adjusted Petty cash fund Lralance al [. ?.600 )9..3 .vater for l.l A.iJ. 1.n.deprecration was providecl or-i thr. 2013.1. respectively. a'rr.orr..000 down payment and the balance p*yable in four equal quarteriy installments. 38. but no entry was r.: equiomeni as 11:00AM of December 31... ii-r accourts pa.nade in the books. 2. p59. The goods were ejlready inciurleo in the year-end physical count.fjrl0 _h+UeSl_E:r. This will be repaici within 6 months'. . 20i3 for the folioir.000 was recorded as a debit t-o Deliverv equiprnent and a credit to Cash.000 lc be used as working capital. Transportation expenses fc:r 2At4 i..020 B.)&: i san Felipe Trading was granted a credlt lrmit ci end.. availments are as follows: t/alue Date July 1. ?g^6.qAu]g! The company issued P1.0t10 _1. 20.s oit iiec. 2018 and paying interest seini-ani:uatly or Jar:rijqi 1 find IL. 2014 revealed that no accrual I Light and . On December 26.i013 maturing on July 1.|. 3.990 1c. Your review of subsequent paynignts frorn Ja. The cash balance per bank staten"rent on Dorernber. As of year- pfl-n_c_. Included in the company's unacJjusted trial bralance on Lrecerrber:1.00.E& j5*zll!3 llule4.. 2J-3 Telepnone bills for Dec. San Felipe tradin( opened additional stores in nearby localities.-.r. P984.200 What is the carrying value of the investnrent A.ecerrrcr 3. 1. To service more deliveries. 36' 37.rirrc.000 B. 2013 Sept. 1 3. {-. P746..4.900 \l/illiarn Lin. The down payment of P200. A noninterest bearing promissory note was issued for the unpaid portion on December 30.L.ov.i"?_0 i" - i(ri3 '. P?9.2i. 25.100 and P63.!e_Ci$j$ Liro/c iS% P4.1 PRE BOARD EXAMINATION IEPIE!1!. 20 13.':rrrbei 31. 39. 2013? . li rs u]. P15.rsr 3. 2017 Due ui tc i)5 r'r ilro i-y liercur"t. 0 D.5i1.32.-7ltr..:t( L 0 !0 i... 2013' The installment price was P1. 2013 Dec. D748.200. pt56. P7A(].". The terms are P200.A FIN/.1. .abre: Accrued expenses totaling p37. 2016 Dec.ruar5r 2 was made on December 3l.372 .rr .iy 1.LyA Ktrvrtrw >LFIULTL AUDffiNG Ur I Ht pHtUpplllL5 PRoBLEMS useful life is 4 years.00r1 D" i! ii -P702. the company puirchased on account qoccls wortl'l P215. jit.tig 1jL.0 i The adjusted Cash in bank baiar"rce at Der_erni.r30 2L)1._r P35. amouniing to p:15C. . ?01j Minor repair of a deiivery car on Dec.I\iANI.r. (CPAR) .ii i.y I B:00AM - No . :.ithout interest. 2013 Date July i.700 B.300 C.000.250 represeniing adve nce pavment tbr goods ordered to be shipped by the supplier on January lZ. Dec.'r:l'i 1. n . A debit balance af PE7.4SA A cash advance from lhe president crf San Felipt_.1[l rotal P-.. 2.000 i:r-rt the cash price was P1.A1. A. c o - 15.r inciuded .r.000 face vaiue cf 1lolo bonrjs.: .ii Bank.200. .000.-)ili. The following items were erronecuslr. F.1.201"3. 1. additional 3 units of deliver:y equipment were bclught on instailment basis on December 29. ). Upon verification.3C0. A.22A R.

900 B.: 43.080 oayable at December 31. Answer the questions at the end of each sltuation. The total Prepayments at December A.1 Dlcae . B. COMPANY 1. The Accounts receivable balance at tlecember'31. P 60.862. 2013 sltould be \-.2A4 45.000 were incurrt:ri early in 2072. P33.900 D.900 c. P72. P54.868. P3. is c. Interest income of P45.027 PI4.rlten purchaseci on It for the year was recorded when juiy I.854.209.000 P437.200 P257.484 B.on:.750 P1. LvJl tP265. A computer costing P12.. P157. 2013 is A. 2013? c. P17. renLal of P24.nortization of P33. B.000 31. received in February 2013. which were expensed when paid.249. The company typicaliy uses straight-line depreciation for all propefi.868.ryable at December 31. What amount of unrealized 41.A7532A P3.320 P4. to have a 4-year life with no 3. P|9Z.litwancc ior doubtful accou nts? D.. P1.1r:uuAl"r loss should be shr:wn in the 2013 statement of comprehensive income as component of other comprehensive income? D.2A0 46.900 49. B.938. PO B.000 was recorded in 2012 and Research costs P33. A.52i: 50.630 B.000 was not ar. P153. ?L4. P395.211. LJJtwww rP193.820.D' P2. They were capitalized and were to be amortized over a 3-year periocl. you have been assigned to audit the financial statenrents of ZAIDE ended December 31.875. P3.820 B. P57. 2013.. P13. of P99.200 P3. You discover the fbilr:wing situations.1 i.330 c. ooo0OGooo-------- FROBLEM NO.332 48. P4. 47. PL. 2013 A. P4. D.000 was expensecj v. :.85?.070 D. It is expected resiC:. c. P32.900 P155.ltie. What is the year-errd acilustment A. plant and equipment at December 31.vinE ar-ncunts.709. The total cost of the company's Proper"ty.i:ruerJ at the end of 201?-. The Interest A.. The adjusted balance of Accrued expenses c'n December 31. The adjusted balance of Accounts p.800 D. 2"013 is D' P3.3? C. Z.000 / ZTUVV B.000 l'.889.852 P2. P3.500 D. 2013 should be A.816. A. P738.979.600 A.2L0 D.800 How much Sales should be reporte| in the 2-013 income statement? c" P4. F. plant and equipment at December 3t.300 C. P16.987 c.23L.3i0 44.798.2012. aild rql.800 What is the net book value of the cornpeny's Fi'operty..084.000 Security deposit First month's rent lf-aa 24. P2.354.9 presented below are two independenr sicuar-.:1'L31i1.984 A.238. - B. P543._-- SEPTEMBER 15.A0A P230. P4. Zaide leased a Lrr:iiCing fcr 5 years at a nionthl).000 for 2013. 2013 / SUNDAY / E:uuAM . 4.300 31-. Cn January i'.7Bi 42. D. 201"3 shculd be P247.334 the A. 2012. c.320 C. What is the adjusted Inventory on December A. P4.600 40.990 L. P4. plant.000' On that date. P1. - B. the company paid the fnllor.201.

ir.. is undersia.100 B.61.'r €:.000 What is the corrected net inccme fcr 2013? A Pr'162'2a0------:----B---ll:]-']:i!l-oooo**to"l]:-ll:t'l:l -- ". Inventories of supplies on hancj ai'. indicates that sorne experrses ani re'lt:niles haye been handled on a cash basis because of errors made by an inexperienced bookkeep.iirtr. 10 The following are two (2) unrelated situatioirs. p2-4. acccunts when received.:o 2. p28. 201-? 3. rent r suruonv Merchandise inventory costrng P54 600 was in il-re v.i i'..64C ZC1. The retaineo earnings reuorted on Zaide's statement ct financial position at December 201-?.r':tll ilr... Furlher examination of the records re\/eals tlrat tfte foiiowing items were handled LOVEY CORPOMI-ION has used improperly.e:'al ycars.000. inccme statements prepared by the bookkeeper reported P870. rlcne of the amounf as urrearned re'./iit( .i frcm tt:e "ecords of that date and have been enterecj as exljenses i\i:ci: l:ii..Z) C. . _ Lr-.rchaseci lr.900 C" D. rj ilr 28. recorded -..900 53.200 P39.?:' !-i-ri: .:t thai dete The cornpany uses the periodic inventory rnethod Assume all amounts are material and ignore iircorne tax effects 51.:: .1":01 The company.?--li:113'000i PROBLEM NO. . PB26.' A.2012 but was incorrectly omitted fronr the phvsical count . Z0IZ December 31..:.i100 D.received P108.rrudl basis:rt acil'rr.: .:ir l.500 lhe dc.'.11*...i\r(.. P56. 2013 54. and no :ntry has Deen made ior rhe:lt December 31.2C4) Invoices for office supplies pi.000 from a custonrer aI the beginnii"rg of 2L:12 fcr services that it is to a 3-year period beqinniiig in 2012.{nswer :lre question:.ive been c.:ad L.''r 3b.j. FB3_1.tirq fcr se..t /")... 55.".t . i.:r) '.j in :r] . P53. What is tne corrected net incorne ior the year A. 52.:LQ!.500 C.400 D.enue at il"r:: eild fi'?$:2.. Zaide's net income in 201? is understatecl by A. 2011 December 31..21(.rarehouse art Dacember 31. p30.4riC C P54. r'. P30. i g:ooeu . P32. lr: Ll.2..1r-i1 f i:. p102.110.ri. Wages payable on December 31 ll.500 B.le 1::r f.. 2rJ11 December 31.201-2 December 31. 1. Rent was received from a tenant iri Decenrber 2012 i'he anroil. PB{J6. p]3.nsrstr-. however..2AA B. P89.4Ci0 B. perform evenly over received was i'eporteo 6..iltt.iC0 Zaide's net income in 20 j3 is cverstatcd by A.t reen ignored.rtr. 31.000 net income for 2013. LlCi 28.i 1.t.v.. p901.'" "'""''tt"t'^^'' k-2or: - ororrrnu o*orarr'J Last month's i 5."1. at the end of each situation.cti -{-he amounts of accruals recorded in thiis manner \rere: December 31. P22. was as income at that time even though the rental pe:'tairi. A i'eview of the records. D..000 net income for Ztt? and P1.

0C0 2Al7 57. In 20.9AA P7Z.l P72.000 B.soO How much revenue frorn container sales shcitid be recognized ior 2013? A.900 P145.000 fcr labcr. P 0 C.800 P72. What is the total amount of Omega Corrrpairy's liabiliby for retr. The customer is charged for each container relurned within refund a receives anci deliverecj a deposit for each container for the containers not returned within the two years after the year of delivery.900 P72. What liability relative to the 2013 r. Omega accounts time iimit as being sold at the deposit amount.800 ''rov'..14.900 P0 l':otr.. statement of financial position and A.rnd 270 warratrty contracts for cash.ashing machines at an average price of P8.r tl^.000 2013 152_aq0 3s4.20L2. What liability relative to these tra:rsarcrion.500 D.gO0 P72.. The company estimates that the rrrarranl'/ r-. P85. r.000 DP. B..rnable containers at Decenrl:er 31.500 D.800 P0 ---END CF TXAMINATION--- on the December 31. P373.000 A.9O} P145.900 P72. seiis u.r. P127. What amount of warranty expense lvuuld be shown on the incor. 2C13? A. statenrent for the year December ended 3L. B. 58.500 2CL2 140. P27.2014. .800 P72.000 B../ould appear on statemeni of financial position and A. P 36. DP sold 300 washing rnachines .700 59. Current P145. P400. P267. P267.:jts are P1B0 for pats and P360 for labor. a dealer of household appliances.5A0 C. During 2013. DP rncurred actual costs relative to 2013 warran0z sales of PlB. D. reusable Containers held by customers at December 3L. c.500 c. iNC.ini:i:. 2013 / SUNDAY / 8:00AM - i1:00AM containers. P54.800 P218. c. Information for 2013 is as follows: OMEGA COMPANY sells its products in expensive.rrr-1 rrvculd appear il re ciassifir'd? Noncurren i P72.500 B. Assume sales occurred on December 31.000 57.2013..000 for parts and P36.900 P145.000 aAL? 240-!0Q 325.'i-:. D^ Current P145. vitould tt be classified? NPfqU[si.e December 31. P18.varr'.2013.000 60.rAli1l- r FINAL PREBOARD EXAMINATION __-SfptfNgER t5.100" The company also offers to eaci-t custorrer a separate 3-year wart'anty contract for PBl"0 that requires the company to provide pei'iodic maintenance services and to replace defective parts. 20t4? D.' r. from deliveries in: Containers delivered in 2013 Containers returned in 2013 from deliveries in: 56" 2011 85.CPA REVIEW SCHOOL OF THE PHILIPPINES (CPAR) AUDmNG pROBLEMS . DP's policy is to recognize income from ine warranties on a straight-line basrs.000 430.

C 18.4 PROBLEM 2 6. P94.2 (1. 20t2 P3l.20.000 Deposit in tiafl$..500 Ps75.9N PL78. 1.000 + banx seruice charges Custorner': rctt.0.ff)A 24.CPA REVIEW SCHOOL OF THE PHILIPPINES Manila AUDITING PROBTEMS FINAL PRE.000 x}Ctr.000 79.200) P94.800 7L. 10.600 114.M0 0 receipts P735. Nov.360 P204.000 PZ0020a (P186.9.400 P36i360 P 80.24O Date of 1.000 114.6W 129.000 + P27.8 B D A A C E5*04 PO 2013 PO 18..4s8) rzus24gJ 9.M0 47.100) Accounts payable.000 = P67C. ULl09 * rcfifi3 (P120.240 - P3.) 52.000 24.720 24.Lfil}g .600 l'.000 Cost .000 x20o/ox43/L2) + (P235.600 P170.7tl ? 12.000 x20o/o x 4 9lt2) Carrying value Proceeds P120.400 26.P8.r ned check Ourtstandlng clr*cks.204 158.018 L@.000 P44.0C0 x 98%) + P279.9AA +P11.040 P734.440 Ls4.500 + P576.000 P50.10O 55.100 Inventory.UUl? Accum depreciation (P132.850 (Pi80.2013 TGR Company .2oO .400 0 37.20fi _0 6130/7i_ 279.440 AEgurg.000) + (P2 .200 37.zffi 1s3i02 (P 24.A4O 108. 20i.200) (3s.200 23./ax26/LZ) P462.681fi1(Pl57.W0 26.300 0 235.200 47. 2013 (P27. Dec. C 370.Sffi 97.{II{ATION PROBLEI*I .200) Inventory. 9.360 540.. 1. 31 12. L!1.0o0 2011 P15.L40 PL42.000 x?^Qa/o J92W x 3 yrs. June 30.000 e86.200 47. A Outstanding checks.000 .000 186.44A 20@ 9l30lm 6l3O/tO zzu P3tr.524 26.400 Sale-Jan.Z5A Carryirig vaiue Net proceecls SE--Adahei . 30 Add: Checks issued in December: tsook disbursements Cost of checkhook Error in recording a disbursement (P39.200 x}Aa/ox36/t2) + (P279. 11.900 + P16.!figl .June 30.000 Correct depreciation Depreciation per client P97.000 + P6.000 24.20i2 P132.M0 P158. C 3.960) (1.icte coiiected by barrk in November (100. June 3O 2013 (P105.791 82. Nov./U09 Cost P157.75.13 Cost Accum del:reciation .f.640 139. F - September 15.100 +P27.000 0 Totat P 78. Juiy 1. 30 Add: Collecti+ns: tio.800 37.000 Total gain 2.152 Over (under)statern:rnl 4.hlA$A{xAI.000 PROBLEMS-TANDEMCO.450 18.000) .000 24.600) (24.000 P4A7.000 (1.BOARD EXAI.640) Total Less: Checks paici L"y bank: Bank ciisbursernents Decerrrl.000 P1S1.s00 GJLSOZ) {PJ3ZAZZ) 5.400 37.900 + P16. IilC.200 x20o/o x 2.600 79.500) Purchases (P540.t.1W Carrying value Trade-in value Trade-in PL57.233 597.300 132.500 - P525-500 P144. 8.200 120. 7.000) 178.5 yrs. 2011 Cost Accum.000 6.) 78.444 __55940 P164. depreciation .

376.----_-_--.-'.200.7c il?()) E2:f.84ii.500 I Les: Deposits credited by bank: Bank receipts Correction of erroneous November charge Deposit in transit.CPA REVIEW SCHOOL OFTHE PHIUPPINES (CPAR) AUpmNG PROBLEMS I - MANILA "---__--IIUAL gMeaABD 0(AUJMIISX I (12L000) 5ts-609 Note sent to tlrre bank for ctrtlection Total 595.600) {?-4..?3300 Pl.500) Building (P80 x 7.80. -DS[ursements Dec-31 P735..000 80.irCIf) Aee* C jl P5i8."ffiq ffl.-YeaL(.000) Machinery (1/2) 24.000) Building (P80 x 15.00{) P'+i5.ti?"519 P. A 4.80"900 .000) Machinery {U2) (P24 x 7.400) (120.:.000 i8!.000i F:i(]b.500) Machinery Glz) (P24 x 7.l=)epreciation P7.I.5A0) Machinery Ul?) (P12 x 7.000 i+i).1204.c6)H .000) Machinery $12) tP24 x 15.000) Machinery Glz) (P72 x 15.i.000) ___yeer_L- Derlcilen 18.'trr. C Mineral property (P323 x 7.200) .e00 l.000) Machinery (112) (P12 x 15.000) (120.000) Building (P80 x 15.CI00 9i. p4 s.5l.CI00 7 Deprexratiu rr4.200.500) I:4.500) 77..000 180. D Mineral propety (P323 x 15. 74.Adjusted book balances Bank balances Erroneous bank charge Deposits in transit Novemhr 30 December 31.'-- .00(}) (r.000 9C.k*"] .000 219. Outstanding checks November December 31 Adjusted bank balances ($.000 _.iJ$0s00 11*ii*i-{$O -------""---Yea:JL-0egie-tr-rfi .000 I 90.600 (i70.000 Note collected by bank in November Cost of checkbook Service charges Customer's returned check Note with bank recorded as receipt Overstatement of d isbu rsement 30 13.000) Machinery G/2) (P12 x 15.000 P219-600 (1.gl0 P515.200 (1.SZSSS{} Va:.200) 1. g--_ E -----l-se!: Pepieaalim Ile. D Mineral property (P323 x 7. P485. 5 000 --- r- - Pi.50CI) Machinery G/2) (PtZx 7.000) 19.000) Building (P80 x 15.e00 e3S5"96! ."Dspresratlon [:r.fr00 P. Dec.:: r$]CI .b45.00u1) :i19.000 _135.l*li.t00 r.000 C Yeer pen.ffo 15.500) Building (P80 x 7.:.$39) __35"6t0 "B25S.".5#.500) Machinery (112) P*ks8.5U0 P600.(36L960)] -i.e375.000 __ie0$00 P3fi#i. A PROBLEM 16.500 P3.:#etLr"U Mineral property (P323 x 15./t2"?.000 i.e00) -Deeresiatia! P2"4:11.1mgr0 flf.0{)0 rr1.200.400 C -.600 P407.u00 . i00.600 (i00.Strtillelnerils I rft!.fio0 : (1..200 100.64! Uur-30 ik$e195 D.L.CI00 l Nov-30 tsook balances P157..0gl .ri{bn Mineral propeflry (P323 x 15.000 P.MINA MINING CO.s. 31 P41S..l*Z*0.0fi0 _"r.

987 - P10.300 - P5.000 40.720 Allowance P 3.000) Loss on sale of Kongga Net realized gain on sale PROBLEM 26.550.P19.000) A Retained earnings .800) TradrnE securities at FV (William Lines) (P15 x 5.020 (40.400 P77q.P900.640 -'Pt.000 FV) Pt.000) P12. A P1.P510.000) 115. D 39.debit (n00.000 P7q8. D 24.000 Proceeds from sale of Kelly Carrying value (P1.000 17.000) D Licensing agreement 2 (P1.000 - - (9.295 * P10.000) (s2. D 27. A 3s. A 37. 36.000 + P720.000) Unre.cPA REVIEW SCHOOL OFTHE PHILIPPINES (CPAR) .000 1.q20.000 DOFINA MANUFACTURIilG COMPAHY A Patents (P2.20. A 4L. 28.. c P350.000 (75.058) - P360.000 .000 .296 Outstanding cnecks Deposit in transit {Pi39.960 P8.000 2.810 (168.9O2 Adjusted balances 42.000) Over 5 months PROBLEM 8 P1.200) P14.0@ 6- (e0.00! P2.724 3-6 months 24.200 . A FINAL PREBOARD EXAMINATION CORP.330 = ?24.000) (4.960 309.ifi SAN FELIPE TRADING CORPORATIOil P984.34 + P1.000) 31. A 40.000 Required Adjusted Net Debit Age Ealance AdjustmenE P372.830) P1.350) 38. B 33.000 month 307.750) (59.600. Eatilsc Rate (P798.000 1-3 months 88.000 .452.610.A00 + P30.liized ioss (P314. 20o/o P23.662 4.960.PX.7ffi Accounls receivable per books Postdated check Unrecorded collections Customer's deposit Cash advance to an officer Unrecorded sale Prornissory note received from custorner Unshipped goods Adjusted balance Increase in allowance (P7.000 817.000 1.P40.280 7o/o 3o/o 8. 29.P90.000 Proceeds from sale of Eloy Carrying value Loss on sale 25.000 (17.s35.000 .000) Adjusted peity cash funrl (P35.720 (132.000) A Leasehoid improvements (P780.249.470.s00.600 P297. L10.000) P260. P2. C 2o/o 88. A 34.sANTOL PROBLEM 2t. 30.0A0 (4.000) 49.810 6.000) B Licensing agreement 1 (P1.000 * P330.249.200 (195. B P380.000 SALIIYOT COMPANY 0-1 31.000 P500.q60 59o/o P19 058 a3.950.000) Unrecorded cailecliens B 2.220 P9 900 E25.60C Cost - P7A6.500.200 38.296 = ?22.350 P706.000 + P500. A 22.450. ?3.000 12.224 P19.000 + P870.280 2.300) 5.000 U nrecorded disbu rsernent checks Unrecorded transfer of fund Interest earned .300.020 Cash balance per bank statement tsoot P681.000) PROBLEM 7 - 12.MANILA AUDM- 5.000'+ F45.330 x2o/o Bank P984.186 B Unadjusted balances Erroneous bank credit Postdated checks Unreleased check Understatement of baok disbursement (P21.000 P1.787 .

000 - P57 P27sW ste) P325.000 parts P72-900 ---END*- .S00 + P36.000) 1.0to) B 53" A i".l Unrecorded purchase Accrued expenses Cash advance from the company presiCeni Advance payment for goods ordered erroneoirsiy debiteri tc ntcoLl::fs payable Accounts payable. 43.200) Prepayments.000) 2. as adjusted 46.875.sCIO) eL.0m) (33.000 (33.500 2013 container returns 2013 container sales Liability for returnable containers 59.852 B Accounts payable per books P523. D Secured bank loans (P32.000) 215. D - . C 50. " 55.150 _ttgg6.4.000 * P200.O(iC.520i Unrecorded cost of delivery equiprnent (Pl. C 44.{.:.000/5 x Depreciation .000 P35. 10 P2$5X40 i)7. leZ ^ :i. Over Gtdgrj P (12.000 labor) P54. A PROBLEM NO.100 + ?37.EE"EABDEXAUI$ATIQN Adjusted inventory (P3.000 Unearned warranty revenue: Current (P810 x27AxU3) Non-current (P810 x 27C x Ll3) ?77500 PJEgIP (P18.100 1. p93o. P155. 57.600) (36.1.0m. A A. Correct{rd "r'1: il'corilF: 30. OMEGA COMPAT{Y/DR rNC.820.045.raried {3- 1.000 x2l3) ffice supplies expense (P129.000 7.000 x SILZ) (60.000) 52.000) (84.450) (350.400 (s4.15A + P5'1.Leasehold improvements {P363. 51.798-980 P52. .000) (110.700 Adjusted sales (P4.000) Rent expense (P165.000 Prepayments per books Adveftising o(pense (P144.500 3.i.110.320 PPE books Accumulated depreciaticn per Depreciation .500) + rr. 5.000 3. D 60.800 _1-i-!L80i:) L4.500 3.m0 Unreleased checks Understatement of book disbursemenls iP2L. 31.000 (12. Revenue from container sales (P85.000 -i P22.ti30) P438.070 ZAIDE COMPANYILOVEY e(ftPCRATIOiU Net income over (under) C A {37.r$.(.000) 72.MANILA AUDmNGPRoBLEMS . C 2013 p.200 (66.400 i:hr5r$0 P1J5Z.000 A\"58i (382.cpA REVTEW SCHOOL OFTHE PHIIiPPiNES (CPAR) .000) Adjusted cost of PPE P3.0C0) 1.873.\ Total 58. 2012 Deliveries in 2013 1l!J00 755.112) 18.500 + Pi. as acijusted 49. B (75. Dec.200 Total cost of PPE per books Additional charges to computers bought (P12.320 4 ><7 Adjusted net book value !i2) 48.{68) -s-t"&l$ PL85&.P41. Dec.rCS RE.60q P33-600 Pr22l0o) Pf56. D 47.000 P3 875.000 + P148..000) Adjusted accrued expenses (P63.000 4. 9 56.Computers t?355. B 45.s8g800 P.uT 3.320 Total cosr of P3.000 + P31.000 30. (9.100) - Net incorrre.000 Liability for returnable containers.NAL$.000 99. 31.Pltil.000 (84.P1i.810 - .6.300 + P6. B 000) (. . + P13E. 6.15.000 P1.000) saml 54.2013 99.000) P_373-000 Unearned warranty revenue: Current (P810 x 270 x U3) Non-current (P810 x 274 x 43) 8145.320 800.000.520) PROBLEM NO.1't0fi. 2013 P45. ____L].500 - 82250 Ps43-900 2012 P(45.000 x P53.8m) P192.0C0 .