RZP 1

NEW ERA UNIVERSITY 12.12.2020

MID TERM EXAMINATION
1st Semester, SY 2020-2021
FINANCIAL ACCOUNTING
(FA MTE2 2020 Problem)

NAME: _____________________________ SECTION: _____________ DATE: ____________

E Mail Address: ________________________________ Schedule Time: MW_______________

ANSWER SHEET
PLEASE INDICATE ALL YOUR ANSWERS BELOW. ONLY ANSWERS BELOW WILL BE CREDITED.

I. PROBLEM 1
Classification of Accounts
1. __________ 6. ____________ 11. ___________ 16. ___________
2. __________ 7. ____________ 12. ___________ 17. ___________
3. __________ 8. ____________ 13. ___________ 18. ___________
4. __________ 9. ____________ 14. ___________ 19. ___________
5. __________ 10. ____________ 15. ___________ 20. ___________

II. FINANCIAL STATEMENT – Mae Azimfa Corporation

1. __________ 6. ____________ 11. ___________ 16. ___________

2. __________ 7. ____________ 12. ___________ 17. ___________
3. __________ 8. ____________ 13. ___________ 18. ___________
4. __________ 9. ____________ 14. ___________ 19. ___________
5. __________ 10. ____________ 15. ___________ 20. ___________

III. MATCHING TYPE

1. __________ 6. ____________ 11. ___________ 16. ___________
2. __________ 7. ____________ 12. ___________ 17. ___________
3. __________ 8. ____________ 13. ___________ 18. ___________
4. __________ 9. ____________ 14. ___________ 19. ___________
5. __________ 10. ____________ 15. ___________ 20. ___________

IV. PROBLEMS

1. ___________________________ 5. ______________________________
2. ___________________________ 6. ______________________________
3. ___________________________ 7. ______________________________
4. ___________________________

THANK YOU FOR FOLLOWING INSTRUCTION.

 RZP 2

NEW ERA UNIVERSITY 12.12.2020

MID TERM EXAMINATION
1st Semester, SY 2020-2021
FINANCIAL ACCOUNTING
(FA MTE2 2020 Problem)

NAME: _____________________________ SECTION: _____________ DATE: ____________

E Mail Address: ________________________________Schedule Time: MW_______________

INSTRUCTION: There are two parts of this examination: 1) the ANSWER SHEET above and
2) the PROBLEM SHEET below.
ALL of your answers should be indicated in the ANSWER SHEET ONLY.
Only the answers on the ANSWER SHEET will be checked. SUBMIT ONLY THE ANSWER
SHEET WITH YOUR NAME AND E MAIL ADDRESS.
Please follow the instruction.

PROBLEM I. CLASSIFICATION OF ACCOUNTS

The classifications of accounts and their abbreviations in a merchandising company are:

ACCOUNTS Abbreviation ACCOUNTS Abbreviation

Current assets CA Net Sales NS
Contra current assets CCA Cost of Sales COS
Non-current assets NCA Selling expenses SE
Contra Non-current assets CNCA Administrative expense AE
Current liabilities CL Other income OI
Non-current liabilities NCL Other expense OE
Shareholders’ Equity SHE Financing cost FC
Retained earnings RE Income tax expense ITE

INSTRUCTION: On the blank provided in the ANSWER SHEET, indicate the abbreviation of the correct
classification of account. The business is a merchandising company.

____ 1. Accrued salary expense ____ 11 Prepaid advertising expense

____ 2 Freight in
____ 3. Unexpired insurance expense
____ 4. Office rent expense
____ 5. Premium on share capital
____ 6. Treasury shares
____ 7. Merchandise invtry. 1/1
____ 8. Allowance for bad debts
____ 9. Interest income
____ 10. Unearned rent income
____ 12. Freight out
____ 13. Salaries and wages - office
____ 14. Insurance expense – store
____ 15. Accumulated depreciation – store equipment
____ 16. Taxes and licenses
____ 17. Depreciation expense – Office equipt.
____ 18 Accrued interest income
____ 19. Bad debt expense
____ 20. Merchandise inventory 12/31

PROBLEM II FINANCIAL STATEMENT - Merchandising Company

The adjusted trial balance of Mae Azimfa Corporation, a trading company as of December 31, 2019, presented
below, is not in proper order.
Debit Credit
Unearned Interest Income 32,000
Office Utility Expense 12,000
Accounts Payable 180,000
Tax Payable ( payable in 4 months) 4,000
Income tax expense 21,000
Purchase discount 10,000
Depreciation Expenses – HO Bldg. 20,000
Share Capital – Ordinary* 400,000
Share Capital – Preference 100,000
Premium on share capital - Ordinary 12,000
Notes Receivable (trade) 80,000
Trading securities 20,000
Insurance Expense - office 8,000
Accrued Interest Expense 56,000
Purchase returns 60,000
Allowance for Bad Debts 12,000
Interest expense 12,000
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Retained earnings 110,000

Purchases* 240,000
Prepaid Interest Expense 8,000
Advertising expense 12,000
Office Salary Expense 92,000
Land 200,000
Interest Income 18,000
Building 400,000
Furniture and equipment 60,000
Acc. Depreciation – Bldg. 34,000
Acc. Depreciation – Furniture and Equipt. 6,000
Unused Office Supplies 4,000
Rent Receivable 12,000
Sales discount 20,000
Sales returns and allowances 40,000
Merchandise inventory, Jan 1 20,000
Freight in 2,000
Freight out 8,000
Office Supplies Expense 14,000
Loss on sale of trading securities 2,000
Tools 12,000
Cash* 140,000
Rent Income 30,000
Gain on sale of used furniture 2,000
Accounts Receivable 240,000
Transportation Expense - office 8,000
Salesmen commission expense 59,000
Bank loan payable (payable P25,000
Semi-annually) 200,000
Sales* 500,000
_________ _________
Total 1,766,000 1,766,000

Additional information:
1. Merchandise inventory, December 31, 2019 – P30,000.
2. Authorized capital stock of ordinary share, 10,000 shares at P100 par value.
3. Authorized capital stock of preference share, 5,000 shares at P100 par value.
4. No dividend was declared during the year.
MULTIPLE CHOICE
Indicate on the ANSWER SHEET ABOVE, the letter of the correct answer.

___1. - The net sales is

a. P600,000 b. P580,000 c. P560.000 d. P550,000 e. P540,000 f. None of these

___2. - The cost of goods sold is

a. P262,000 b. P260,000 c. P292.000 d. P300,000 e. P252,000 f. None of these

___3. - The other income is

a. P62,000 b. P82,000 c. P60.000 d. P50,000 e. P70,000 f. None of these

___4. - The selling expense is

a. P90,000 b. P79,000 c. P85.000 d. P78,000 e. P84,000 f. None of these

___5. - The administrative expense is

a. P134,000 b. P210,000 c. P146.000 d. P154,000 e. P155,000 f. None of these

___6. - The total other expenses is

a. P0 b. P1,000 c. P2,000 d. P20,000 e. P4,000 f. None of these
___7. - The finance cost is
a. P68,000 b. P13,000 c. P24.000 d. P6,000 e. P12,000 f. None of these

___8.- The net income before income tax is

a. P50,000 b. P60,000 c. P70.000 d. P81,000 e. P65,000 f. None of these

___9.- The net income after tax is

a. P40,000 b. P60,000 c. P70.000 d. P20,000 e. P55,000 f. None of these
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___10. The total Income is

a. P500,000 b. P380,000 c. P560.000 d. P450,000 e. P340,000 f. None of these

___11. The total Operating Expenses is

a. P268,000 b. P275,000 c. P385,000 d. P375,000 e. P308,000 f. None of these

___12 – The total current assets is

a. P412,000 b. P434,000 c. P402.000 d. P422,000 e. P424,000 f. None of these

___13 - The total non-current assets is

a. P620,000 b. P632,000 c. P672.000 d. P640,000 e. P638,000 f. None of these

___14 - The total assets is

a. P1,054,000 b. P1,062,000 c. P1,035.000 d. P1,052,000 e. P1,053,000 f. None of these

___15 - The total current liabilities is

a. P290,000 b. P266,000 c. P272.000 d. P322,000 e. P320,000 f. None of these

___16 - The total non-current liabilities is

a. P50,000 b. P150,000 c. P250.000 d. P100,000 e. P200,000 f. None of these

___17 - The total liabilities is

a. P325,000 b. P417,000 c. P520.000 d. P422,000 e. P472,000 f. None of these

___18. - The total share capital is

a. P400,000 b. P412,000 c. P522,000 d. P582,000 e. P410,000 f. None of these

___19. - The retained earning as of December 31, 2014 is

a. P110,000 b. P170,000 c. P120,000 d. P150,000 e. P200,000 f. None of these

___20 - The total stockholders equity is

a. P510,000 b. P572,000 c. P520.000 d. P522,000 e. P582,000 f. None of these

II. Matching Type

INSTRUCTION: Complete each statement below in Column II by selecting one of the terms being
referred to from Column I. Write the letter on the ANSWER SHEET ABOVE. Only those answers in the
ANSWER SHEET will be credited.

Column I Column II

a Corporation Sole
b. Members
c. Watered stock
d. Ecclesiastical corporation
e. Corporators
f Outstanding capital stock
g. Corporation aggregate
h. Spurious Stock
i. Authorized capital stock
j. Subscription book
k. Preferred stock
l. No par value shares
m. Callable Preference shares ___7. Created for the purpose of charities, such as orphanage.
n. De jure corporation
o. Promotion stock
p. Convertible Preference share
q. Stockholders’ equity
r. Outstanding shares
s. Founder’s stock
t. Corporation
u. Share premium
v. Stock and transfer book
w Treasury stock
___1. A class of capital stock which has a claim prior to ordinary
stockholders in terms of dividends and liquidation of assets.
___2. It is composed of more than one member or stockholder.
___3. Issued by corporation which permits the stockholder at his
option and within a specified period, to exchange shares
currently held for ordinary share at a specified rate.
___4. Is one created to secure the public worship of God.
___5. Stock issued by a corporation which may be retired at the
option of the corporation after a specified date at an amount
___6. It is an artificial being created by operation of law, having
the rights of succession and the powers, attributes and
properties expressly authorized by law or incident to its
existence.
above par value
___8. Stock which have been issued by the corporation as fully
paid up when in fact it is not because it has been issued as
bonus or without any consideration at all.
___9. It is required by law to have par value.
___10. Stock issued to the organizers or founders of a corporation.
___11. Stocks issued in excess of authorized capital stock.
___12. For par value shares it is that amount equal to the aggregate
of all issued and subscribed par value shares times its par value.
___13 Are the corporators of non-stock corporation.
___ 14. Is the maximum number of shares that a corporation may
 RZP 5

issue as stated in the articles of incorporation multiplied by

x. Unissued shares par value
y Legal capital ___15. Is the book where the names of stockholders, their stock
z. Voting Stock acquisitions and disposals are recorded.
aa. Eleemosynary corporation ___16. Is the residual amount after the claims of the creditors are
bb. Contributed capital subtracted from total assets of the corporation.
cc. Retained earnings ___17. Is the total shares of stock at the hands of stockholders plus
total shares subscribed, whether fully or partially paid, as long
dd. By laws as there is a binding subscription agreement.
ee. Stockholders’ Ledger
ff. Bonus stock ___18. Is the account title used for the amount paid in excess of par
gg. Formative stock or stated value.
hh. Shares in escrow ___19. Is the amount of cash and property received by the
corporation from stockholders for the shares of stocks
ii. Promoter sold.
jj. Subscriber ___20. Is the number of shares of stock that remain unsold after
deducting the issued capital stock from the authorized capital
stock.

IV. PROBLEMS

Problem 1 Net Sales

Mala Fod Talaga Corporation, a dealer of BIYAK NA MONAY for export, gave you the following partial financial
information from the adjusted trial balance for the year ending December 31, 2019:

Sales discount 50,000

Purchases 1,850,000
Purchase discounts 50,000
Freight in 15,000
Office supplies inventory. 1,000
Freight out 20,000
Merchandise inventory 12/31/2019 75,000
Purchase returns and allowances 250,000
Sales return and allowances 125,000
Rent income 50,000
Sales P 2,500,000
Merchandise inventory, 1/1/2019 30,000
Sales salaries 200,000

1. How much is the net sales? Answer: P ________________

2.How much is the cost of sales / cost of goods sold? Answer: P ________________
3. How much is the gross profit? Answer: P ________________

Problem 2 Selling Expense and Administrative Expense

Maqui Fut Talaga Corporation, an affiliate company , gave you the following partial financial information from the
adjusted trial balance for the year ending December 31, 2019:

Depreciation Expense – Delivery equipment 5,000

Indirect labor 20,000
Prepaid rent expense - Store 60,000
Depreciation Expense – Office equipment 18,000
Accrued office salaries 11,000
Rent Expense - office 80,000
Office supplies expense 5,000
Office salaries and wages 150,000
Taxes and licenses 30,000
Accumulated depreciation – HO Bldg 150,000
Prepaid office rent expense 10,000
Depreciation expense – O. Furn. & Equipment 32,000
Office light, water and telephone 29,000
Bad debts expense 12,000
Interest expense 5,000
Loss due to fire in the office 50,000
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Freight In 20,000
Freight Out 30,000
Store supplies expense 10,000
Sales salaries and wages 55,000
Advertising and promotion 25,000
Depreciation expense – store equipment 12,000
Accumulated depreciation – Store equipment 70,000

4. How much is the total selling or distribution expense? P ____________

5.How much is the total administrative expense ? P ____________

Problem 3 Current Assets

Mando Rucot Marketing Corporation, a dealer of “Sexy Doll” for old men, gave you the following partial financial
information from the adjusted trial balance for the year ending December 31, 2019:

Merchandise inventory, Dec. 31. 50,000

Accrued light and water expense - HO 1,000
Used office supplies 5,000
Office supplies expense 15,000
Sales 600,000
Interest receivable 50,000
Subscription receivable – ordinary (due 2025) 50,000
Store supplies expense 15,000
Office supplies expense 10,000
Prepaid insurance HO building 20,000
HO Building 1,000,000
Accumulated depreciation – HO building 200,000
Store delivery equipment 500,000
Accumulated depreciation – delivery equipment 100,000
Allowance for bad debts 12,000
Notes Receivable (installment of P5,000 a month) 220,000
Petty cash fund 10,000
Advances to employees (due January, 2020) 5,000
Accrued rent income 60,000
Cash on hand P 100,000
Cash in bank 40,000
Trading securities at cost 100,000
Accounts Receivable 280,000
Interest payable 5,000
Merchandise inventory, Jan. 1 50,000

6.How much is the total current assets as of December 31, 2019? P ___________

4. Problem Current Asset

The Taran Tado Corporation’s trial balance reflected the following account balances as of December 31, 2016:

Accumulated depreciation – equipment 1,500,000

Cash on Hand 1,150,000
Inventory of merchandise 3,010,000
Equipment 2,500,000
Cash in bank 405,000
Accounts receivable 1,620,000
Short term investments 500,000
Petty cash fund 10,000
Long term investments 1,000,000
Installment Notes receivable (10,000 per month) 450,000
Patent 400,000
Prepaid expenses 120,000
Land held for future business site 1,800,000
Unearned rent income 50,000
Franchise 600,000

7. In Varum Vado’s December 31, 2019 balance sheet, the current assets total is _______________

THE END