Scribd Logo
Upload

Welcome to Scribd!

  • PRTC Far PDF

    Uploaded by

    Justin Miguel Iniego
    178 views18 pages

    Original Title

    PRTC_FAR.pdf

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    178 views18 pages

    PRTC Far PDF

    Uploaded by

    Justin Miguel Iniego

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 18
    macs Acouiing snd Reporing Natagenen Fi of Petes Excel Professional Services, Ine. an Tig Cre RTC) - end of examination - Please submit your answer sheet Keep the questionnaire. FIRST PRE-BOARD EXAMINATIONS . Thank you for taking the PRTC Open Pre-Board Examinations! © FINANCIAL ACCOUNTING AND REPORTING [Exam Cove Exam Cade {Date _ (Time — ‘of Questions | enya = Meta ttt 1 een re oe PSS, Bris ain NsTRUCTION' foronng questions be Eiieies purpose of the IFRS Advisory Counc sto 2, The parnoss eec"Gpolication of International Accounting Standaros bee" imerational adoption of Intersational Accounting ‘Standards cain users ond preparers. of accoutts and. so Infvence the IASB in ther agenda decision. 4. Organize the tanding ofthe JAS. 5, Ths organization is dedicated to ensuring that the global Iharkets con operate in an effcient and effective basis pe terationel Financial Reporting Standards Foundation Intemational Accounting Standards Boars Financial Accounting Standards Board 4 Intemational Organization of Securities Commissions 4. Lakers Company received P12,000 from a tenant on December 1 for four months’ rent of an office. This rent was for December, January, February, and March. if Lakers debited Cash and credited Rental Income for P12,000 09 December 1, the necessary adjustment December 31 wold TT Fat save aca | | ean acorteng oa Regoteg 1 et to Rental teame of ‘cre omental Icore 1 25 2 ete Uneamed eal cat 9,009 ‘ete to neared nate ee Sancta arenes ne St an ct tc eng de Feit Sig ley eats ne pce se ses aera on eA Sects a oes se ena we 0 period 2. debits Supplies on Hand and credits Supplies Expen 9,000. cna debits Supplies Expense and crests Supplies on a Pi2.625. eles on Hand for ‘6 debits Supplies on Hand and cedts Supple Expense for 15,600. avant 1. debits Supplies Expense and rests Suoples on Hand Pis,600. ™ 6, Which statement is inomect regarding the Conceptual Framework? 2. establishes the concepts thet underie nance reporting. b. TR's 9 coherent system of concepts that flow fom an objective. ls based on individual concepts developed by esch member of the IASB, 4. None ofthe above 7. Which of ‘the following groups” of users of accounts Is interested primarily inthe efficiency ofa company? a. Management ‘Investors B. Customers @. Lenders 8. According to the Conceptual Framework, the fundamental Qualitative characteristic of relevance indudes Ca ere aaa Predict Q an & PredicnaltYs neutraise®b2Ck vay, : gan linear POFity ang mentary yest ay aoe ince ; feprecige hou oe we aera rey tare coy cing concen MEM Sea + Relevanns’ & Somparabitn, @ Gee 0 infomation or cee for next aust, Sah ete on ee adjusting Non's trial balance 9 December sit cates or Wages Poyane vee Mortgage Payat Ne ae Divides yale soo repo ent ase Inventory aan Sinking Pung Assets sao Short-Term Investments: 15,200 Prem am Sonar Se Stock investment: ncaaste gga? Taxes Pot eae Accounts Poysbe See ‘counts RetenSie see. 10. The amount that should be reported as curent asets‘on Zechariah Corporation's statement of financa portions 2. PI51,300 fe PI68 900 b. P217'300 4. 267,300 414, The amount that soul be reported carer bites on Zechariah Corporation's statement of finane anid Azur na Rsctng a 91,800 Pe7,200 3. “P2380 4. 73,300 12, The general edger tral balance of Ki Sales revenue Icerest income ‘Share of prot of associates ‘tne income Raw materials and consumes 20 Employee benefit expenses {058 on translation of forelgnoperations Deorecaton of Imparment of proper) | ‘other expences ~ = Trcome tx expense 2. 8288;000 |B! Raestoon financiel statements also aaiesed i Depreciation Increase in accounts recehvabie Increase in inventory Decrease in accounts payable Increase i salaries payee Dividends pia | Purchase of equipment | "Increase in long-term nee payable | Decrease in inventories of fished goods ‘ond equipment imbery Umited indies the folowing accounts at December Shes °375,000 20,008 25}000 5,000, 25.00) 350,000 ‘50,009 © P213,000 6 83,000 23: yan CoMpany's Income statement for the year ended ecember 2, 2018, reported net income of asin Sed following information » 20,000 0'000 40.000 48.000 6.000 28,000, 120/000, 150;000, 300,000 435. ne cash Tepes Broiled by Ha ee 4 >. p04 "es for 2nng 000 oud be © pay Which 6 000 A contre etn can Pr. eau 2 hat wr MSS 35 rang entity eTeumens ang ge ted ne eae oy tN ee ens ete Contract te at stmeens °Y"26 mune equity instrument alate eae seat ase anes entity's own equity cB got e8URY instrament . Neither a nor b The cash account ef i lint of Riyadh Corp. on December 3,208 a balance of 127,600 and kcensisar ne oaagae Money order. os Checking account balance in Bank of Pi rect cash balance on December 31, 2018 of Kya The corp ae a Prete 5 Rae me: b. sera nt Arig a6 Raa Je cash account In the current asset section of the 16.1 Sent of financial postion of Grave Buster Company SECU paance of 56,500,” 1 was found to include the feliowing ems: petty cash fund (PI00 iin the for of paid ‘youcners) 500 ‘checking aecount balance in Philippine Trust "Coanpany, per bank statement (2 P2,500 check is siroutstandeo) awe 2 adepesited receps, including a post-dated check for P500 12,000, ‘currencies and coins awating deposit 5,500 ‘Bond sinking fund ~ cash 10,000, (Check drawn by management, returned by bank 2,000 marked NSP ‘The correct cash balance for Grave Buster Compeny's Statement of nancial postion is ‘a Pa3,000, c. pa2,400 b. P42,900 4. av,400 17,The cashier of Goblin Inc. prepared the following bank reconciliation ‘Balance per bank 728,375 Deposits in transit: 32/30/18 4,500 esis 1528 6.025 34400 Outstanding checks 160 11/30/18 ———P2,200 21412268 ‘o75 29 ATA 850 Bs BASE 2,500, 25 ass 725 443.450) 20,950 Customer note collected by bank 6,000) ag Ss ‘erroneously char, , = 100k balance 2 The aaj e djusted cash ja e 2 MSEC nace sotonemy, «Bea | ae crashes 18. ne August 31 bank tater m Showea ct 19 adalion to the bank spre ie, ancerng Ay Outstanding checks totaled 10.200, sed gust 31 (enor a adjestmene a Pi2L goo) eee bd. P115,400 6. P1700 18. Certain formation relative 10 the operation“ supes Company foliows: Ms : Accounts receivable, January 1 a00,000 Avcountrecelvable coliected 2,600,000 Cash sales 500,000 Tnventory, January 4,200,000 Inventory, December 31, 3/100,000, Purchases = 2/000,000 Gross profit on sales ‘900,000, What i the accounts receivable balance at December 31? a. Pi,700,000 e200 5, P1,300,000 ans Aco ns Peron sera 20, Tanja, Ine had net sales in 2018 of £700,000. At December i718, betore odjustng entries, the balances in selected Secounts were! accounts receivable P125,000" debt, and Sfowonce for doubtful aczourts 1-206" dente Tey SHtimates that 2% of HS accounts receivable wil prove to be Cincalectible. What ie the cash realzabie vaue of the ‘esevabies reported on the Stotement of financal poston at ‘December 31, 20187 109,600 p112,200 B. paizio00 3. 1221500 21, Lemonade Corporation had a 1/2/18 balance inthe Allowance or boabtt Recounts of P10,000.. Curing 2036, t wrote 7,200 of accounts and collected. P2100. on accounts rewously writen aff. The balance in Recounts Receivable fas P200,000 at 3/1 and P246,000 at 12/91. At 32/34/18, Tomanace esomates that Si of accounts receivable. wl prove tobe uncollecible. What is Oaubtul Accounte Expéise for 2018? 2,000 8. P70 © P9200 4. 12,000 22. Excel Company is a leading educational institution with Student population of mare than 50,000. "Excel contnucusiy ‘maintains good qualty education and 9 roster of queliied Drofessors.” As 2 recut, Excel continualsiy produces ep ‘Graduates in Several fields. As at December 31, Excl hos ah Butstanding receivable bance of P23,250000 broken gown Into: 0-60 days "outstanding, 79,000,000; 61-120 days ‘utstanding, 6,750,000; and’ over 120" daye outstanding, 7,500,000. “Estimated “percent neallecrble. of these accounts is 1%, 2% and 6%, respectively. Excel wrote off (525,000 of its! accounts recawabhe end recovered PS0,000 ‘rom’ accounts. previously wten of In prior eat. As at Aanuary 1, Excel has an llowance for unclleciie accounts ‘of P650,600.. Based on the aging) analy, Excel should ‘report doubtful accounts expense forthe yea acres aE Rae 23. at % De, 5 4 OF Decomr 35, 4. Fstow interast’900 in & Gar’, ORden i) Maturity ME of 19" £0 Cart King ordeg Infort ree yesceMt the, pens 8M har Pn ica REY King S2"S. ang” PAMCRal ia het Making a4 Indicate’ y2PeHencr © ail ©2Sh Flow wepeyMent te wing are Moy W Schedul % loan officer cag SPATE the fight Date Contractuat = 3231/1. Cashion — Exbecte 12329 Poa BRE Ait 10.000 * S000 340.000 92/609 How much, should by = Fus.o00 208 profit or ssa “°°°8224 a5 fan imparrert a Pi5,000 abe: miaetD ae 306 24 be foceved at the'o0 years, sof December 31, 2017, he meen eyes year has not yet been received nor recorded beesee ot borrower is experiencing financial uifiuiics, whe leads company negatiated a restructuring of te loan, The anymers Of all of the interest based on the original principal wi be elayed until the end the 5-year foan term. in aastion, the amount of principal repayment wil be dropped fam P200,000 to P100,000. The prevaling interest rete for similar typeof Toan as of December 31, 2017 ts 10%. The carving amount of the loan as of December 31, 2018 is P 67,700 7135.23 2 i 42,084 b. P132,300 ae anc Aegan eprig sera 95.0n August 1, Southeast Corporation assigned P20,000 ofits P6000. of accounts recewabie.” The’ finance’ company Revanced 90% of the assigned accounts less & P2,000 fee fnverest 1s 412% and payable monthly on the Beginning oF. penod loan balance. loan payment ie emitted atthe end of 28ch month, Each payment includes principal and incest. ‘The ammount of each lean payment equals the cash collected fn receWables during the month plus interest‘on the Tea Bhiones. 11 8,000 was collected on acceunts recewvable during August, the entry for the fst loan payment would include» ‘2 debt to Interest Expense of PL80. B._ creat to Cash of P8000. cred to Account Receivable Assigned of P8,000. ‘G. debit to Notee Payabie of 8,180, se the following information for the next two questions Crest Textes, Inc. factors P500,000 of accounts receivable with {Cornmercal Factors, Ine. Crest Testes transfers the receivable ‘recatds to Commercial Factors, whieh wil receive the colectons: Cornmercal Factors assetsen a fmance charge of 3 percent ef the amount of accounts receivable and retains an amount aval to 3 pareent of the accounts recelvate (or probable adjestrnents) 26.1f the transfer is‘on a non-guarantee (or without recourse) basis, whieh statement is correct {3 Crest Textiles reports both a receivable and a Raby of 500,000 in its statement af fnancal poston, b, Crest Textles records 6 loss of Pa, 000, ©. The factors net came wil be the iference between the financing income of 15,000 and the amount cf any Luncollectibie receivabies: 4, Nave of the above. cst nureg arse ser | ‘e. The Use of LIFO results in inventories being recognized in * The statement of financial postion at amounts tat may | bor ite relationship to recent cost levels of Inventories. eae 2 | 8 so oST dio . Be ew eh ogee Roe = BR a bt Telethanae : Bf ta = Ba ae a 8 c ° ~ : oa Grown ne 1098-0 mie) ¢ 1] Ss SEE a aesrsrenerapn Dm eieis i mj ai of be tes A Tee eee = ar) ow fade TERT se sree) gS 23 c a Pe © t resents 138-8 Rel aise a = we | j | =o 1 bs [| 8 | ¢ i mde See seman rim poaeaneeiehieeany Sau Serene ners ss conga amount, 211 "Goshated meet, 123118 190 Bh gewe eta Fon atnaton “Se (2) Goose purchased FOR awpping fom 8 00 ones invent T2138

    You might also like