Professional Documents
Culture Documents
BSA –III
PROBLEM 3 :
1. B
2. A
3. D
4. B
5. C
6. D
7. C
8. D
9. D
10. B
PROBLEM 4 :
1. B
Cash received (20x3) P200,000
Royalties receivable 12/31/20x2 (90,000)
Royalties receivable 12/31/20x3 85,000
Unearned royalties 12/31/20x2 60,000
Unearned royalties 12/31/20x3 (40,000)
Royalty Income P215,000
2. C
Cash Fees Collected P200,000
Accounts Receivable, end. 60,000
Accounts Receivable, beg. (40,000)
Ending unearned fees (5,000)
Service Revenue for 20x3 P215,000
3. B
Cash Paid (Remitted Royalties) 20x3 P300,000
Royalties Payable 12/31/20x2 (80,000)
Royalties Payable 12/31/20x3 75,000
Prepaid Royalties 12/31/20x2 55,000
Prepaid Royalties 12/31/20x3 (45,000)
Royalty Expense 12/31/20x3 P305,000
4. D
Cash Basis Pre-tax Income 20x3 P60,000
Accounts Receivable 12/31/20x2 20,000
Accounts Payable 12/31/20x3 15,000
Income before taxes (Accrual Basis) P95,000
5. C
Revenues P30,000
Payments received but not earned (2,100)
Service performed but not yet collected 3,400
Revenue under accrual basis P31,300
6. C
7. C
Capital – February 1, 20x3 P2,000
Income (February & March) 5,000
Total 7,000
Less : Drawings during March (1,000)
Capital – March 31, 20x3 P6,000
8. D
Net Cash Sales collected P80,000
Less: Returns and Allowances (4,000)
Accounts Receivable, beginning 40,000
Net Credit Sales 120,000
Less : Discounts (6,000)
Accounts Receivable, ending (30,000)
Net Revenue 20x3 (cash basis) P200,000
9. D
10. D