Excel Professional Services, Inc Management Fim of Professional Review and Training Center (PRTC) CPA REVIEW OPEN FINAL PRE-BOARD EXAMINATIONS PRACTICAL ACCOUNTING 1 RPCPA Licensure ‘Exam Code __-|Pt.OpenFinPB.1000 September 27, 2009 “18:00 AM to 11:00 AM (No. of Questions ‘SET S|somesmiors PS geemrewmn __ sre ret © istoneunmexg pivog-aig uedo o1Nd 94 BUDIe2 405 OA HUEY ‘aireuucnsand ol day qBOUS JaMSUE 4NOA yUUANs BseoIq = voReUlWexe 0 pus - (o00'at}e 'P o00'std “4 (o08'ét)a > oos’6td “e 51 s0s0d pua-i204 queysu09 ur passoudxe G00Z 203 (S50) 40 WIeB 1Mod ByiseLcund ous € ie 200 ZI 4284 10} BBa10ny 7 ver mora, Jeadde g00z Suuinp n-id> aua Jo sanjen panaes ‘Te 4aquiazeq UO parepap 18m 000'02d $0 SPYRPIAID YseD + 222k 343 3noUsnO.UR AluaKD PALIMdU: 21M 900'09e Jo asuecxe xe} Sus0Du) pUe 900'D6d Jo SesuEdxe SuneIedQ 2224 34 induBrosy Ajuens spew som oo0‘0ztaJ0 seseiound pus Doo'90ES Ho S=IeS + Ae n2uOW OU pey AueduOD ayL 26002 404 Aueduiod snoipo 91 suiead uoReULops BuIMoio} 3U4L “OS uo goo‘osd so sway A vias 1 Bpunaacy ie ee see et pee eae net 000’S9E’Td “Pp 900°S8z7d -q goo'sos g 7D 000'00%d “2 St 223A 943 Jo aWwOsUt quad 7210) BYE “o00'000"ve iam seylend unos aia ur soe: ayy Aq sales “suB3enD PuoDas pue 3644 ou) ui apew saersiU a\y aLz09 oy ape Bem Anue sqeudesdde aut pue ‘eyenb puny ays vu! Ao92100 Suop sem Bupunooe ay peypeas Udaq Sey PIOYSOALS ui Jeye Ajuo paziubo08i aq pinous peaxsul ang ‘powewlss 34 16U pynoys siaquas yweBuquod J2Uy paused] AURCWOD 10. 40) qwequnaade au Jeniend pula aug ul 's2K9%0H “900'00S'ed auome sayenb pins au ui sajes yads quaduques aun SuIpiesen Bunpadoid sues auz peroyjas AvedWOD JaUMO 40) weyuNODDe Bu pue ‘000/008'zd 94m OF BURT paps sauienb au 19) $0125 "ues qusBLUeD parewnse u) goo'Szd JeuaUE puE 4522 | Pawa}Ie> OO‘OOTA JeUEND rsuy Ou3 30} 0O0'CZTA JO Bnuands ques [2303 Paz1UB0D2s AvEdUWIOD sOUMO 10) JuelUNOZIE Bux ‘AlBuipios.y —“SeIeS_u1 900'D00'OTa JO pjousera gubs qUaBuRue aga peyrea: ssque: ayy SIEM asola jo pea UI pue ‘s129K g ised aun 103 Gurpuing ayy pasn sed saved SUES BLL 900'000'Es PoUDeA! ey JeIUes ayy J04 SOIeS “OWI yeu W “queued jess ys1y aly paniavas AuedWOS 2UMO Tre ule uo "TE Jequesag Uo WweuLded 2u0 Ui pled SI 82 uaBURUCD ay “900'900'OTd JO S590x9 Ur SaIES HE 40 Nes 30 ai quabuRUCD Aed ySOWw aaqUE! Ly “UL soqend oes jo pus a 32 anp QOD'OTA Jo swoWAed Auowiend Rm jeIuas JeBA-T © peuB[s AvECUIOS seUMO "T AeMUeE UO.“ @iNDMIGOOD “AtUO zZ “ON TIONAd @5N) GMVANE 122yS JaMsue UOREUIWEXS JMOk zapusL j\IM SoINseIy GEMOTW SSUNSVEs ON AnDINS —“papiacid joays soMsue 84) UO WEY YES 10} JaMSUUe BLO Ajuo EW “suORSEND Bum Bla Jo YpeR 40} JAmsuR ys9q 943 S/S ESNOTLONYISNT vas 1 BugunoooyPract 48. 5 Acoourting 1 SETA Oleandar Company Is a diversified company with nationwide interests in commercial real estate developments, banking, mining and food distribution. The food distribution division Practical Accounting 4 SETA 2, Ovation Company asks you to review its December 31, 2009, inventory values the books, The fol id prepare the necessary adjustments to ormation is given to you. was deemed to be inconsistent with the iong-term direction of 1. Qvation uses the periodic method of recording inventory. the company. Qn October 1, 2009, the board of directors A physical count reveals P2,348,900 inventory on hand at voted to approve the disposal of this division. The sale is December 31, 2009. expected to occur in August 2030, The food distribution had 2. Not included in the ical count of inventory is the follwing revenue and expenses in 2009: January 1 to 134,200 of merchandise purchased on December i5 September 30, revenue of P42,000,000 and expenses of from’ Standing. This -perchandise wes shipped f.0.b. 32,400,000; ‘October 1 to December 31, revenue of shipping point on December 29 and arrived in January. 18,000,000 and expenses of P12,000,000. | The carrying ‘The invoice arrived and was recorded on December 31 amount of the division’s assets at December 31, 2009 wes 3. Included in inventory is merchandise sold to Oval on 67,200,000 and the recoverable amount was estimated to jecernber 30, f.0.b. destination. This merchandise was be P70,800,000. The contract of sale requires Oleandar to Shipped after It was counted. The Invoice was prepared terminate cercain employees incurring an expected and recorded as a sale on account for 128,000 on termination cost of P4,800,000 to be paid by December 25, jecember 31. The merchandise cost 73,500, and Oval 2010. The income tax rate is 35%. The income statement ived it on January 3. for the year ended December 31, 2009 will report income 4 ded in Inventory was merchandise received from Ow! from discontinued operation at fon December 31 with an invoice price of P156,300. The 2. Pi0,140,000 c P3,752,000 merchandise was shipped f.0.b destination. The invoice, b. P19,800,000 3. 77,020,000 ‘which has not yet arrived, has not been recorded, 5. Not included in inventory is P85,400 of merchandise 49. During the second quarter of 2 calendar-year company, the purchased from Oxygen Industries. The merchandise was received on December 31 after the inventory had been asset on which interest is to be capit ized: 60,000 on Apri counted. The invoice was received and recorded on 41, P90,000 on May 1, December 30. the period. What was the average amount of acc 6, Included in inventory was P104,380 of inventory held expencitures for this quarterly accounting period? Ovation on consignment feom Ovoid Industries, 3. P180,000 fc. P150,000 7. Included in inventory is merchandise sold to Kemp f.0.b. b. P190,000 d. 170,000 g point. This merchandise was shipped after it was ‘ted, The invoice was prepared and recorded as 2 sale for P389,000 on December 31, The cost of this merchandise wes P105,200, and Kemp received the merchandise on January 5. 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Accounting + SETA 45. Ode Company reported the following changes in its balance sheet accounts for 2009: Increase Decrease Cash {? 50,000) Accounts receivable (net) 000 Merchandise inventory 125,000 Prepaid expenses (75,000) Buildings and equipment 75,000 Accumulated deprec buildings and equipment 50,000 Land 250,000, Accounts payable 65,009 ‘Accrued expenses ( 30,000) Notes payable - bank, long-term (200,000) Mortgage payable 150,000, Share capital, P10 par 250,000 Retained earnings 115,000, Land was acquired for P250,000 in exchange for ordinary shares, par P250,000, during the year; all equioment Purchased was for cash. Equipment costing 25,000 was soid for P10,000; carrying amount of the equipment wes 20,000 and the loss was reported as an ordinary item in net income. Cash dividends of ®0,000 were charged to retained earnings and paid during the year; the transfer of net income to retained earnings was the only other entry in the Retained Earnings account. in the statement of cash flows for the year ended December 31, 2008, for Ode Company, the net cash provided by operating a is 3. 120,000 . P140,000 b. 130,000 6. 165,000 Practica aosounting 4 SETA Factory machinery 220,000 Accumulated depreciation ~ machinery (Depreciated at 945,000 per annum) (40,000) Sood! Inventory Receivables Allowance for doubtful debts Cash Oak Corporation determined the valu 535,000. The receivables were cor except those considered doubtful, During 2009, Cak Corporation increased the depreciation charge on buildings to P65,000 per annum, and to P50,000 per annum for factory machinery. The inventory on hand at 31 December 2008 was sold by the end of 2009. At 31 December 2009, Oak in the market to the use of Corporation, due to a ret ‘traditional barrels for wines ssessed the recoverabl 4 How much is the carrying amount of bul December 2008 after allocating impairment loss? 3. P230,400 c. 231,028 b. P224,300 6. 228,571 S. How much is the 1g amount of factory machinery at 32 December 2009 after the reversal of impairment joss? a. c. P131,322 B, a P123,271 6. The cash account of Peter Corp. on Decer , 2009 has balance of Pi27,600 and it consists of the following: 's and coins on hand 52,780, Petty cash including petty cash vouchers of P650——1,000 is account with a bank closed by 36,000 Customer's check dated January 15, 2010 $,000 pita “wae 1 ii Bye sera Z Bi GpentinPBIOEseotgwmetore Po RUBIA 420 9 oda so-oreauveco're emer Ze ocr ates o00'serd “Pp oo0'serd “¢ 000's8re > ooo'srsd “8 26002 1! pj08 9p005 jo 3809 #95 Voda. snoredensqo pinoys qunewe eum "6002 "Te sequisz—eq papus seah au3 Buunp 000'D6vre siaiiédne pled snoieda.4sqQ o09'os ooo'se ‘aigedeg syunoasy o90'06zd 00'S ‘Aioquenul BOORITETET OUOLTTEPZE #9002 pue 6002 ‘Te s9quIeDsq 32 "00 snoladansgo q pexiodes sim saDueleg BUIMOlION AL “b> coos d “PB oo0'ttd “a o00'0Td “> doo'eta “2 gqusuiaye3s swoou! Z 128k Bip Uo UMeUS aq Pinoys Ssuadxe aduEJNsu JO UNCLE EU (eek Buunp} shed eoueinsut ooc'et ago‘ot oo9'r —900'9 ‘aigeded oouesnsut g00'%e 090'T: ‘(4eaA Jo pus) asuesnsu pledsig Zea TaeaR ‘Suonpesuen souins: sAuzdwios 2 BuipeSar uoneuuojuy Sumolo: ayy uaNg Ey 000'sZte “P oga‘seza “4 o0o'reTa > oea'reTd “e 51 6002 ‘TE soquanag pepus 4204 au2 103 suowesedo SuIunUOD Wo) aLuodu: paYsnIpe Sut (Buipuersino ave soieys ueuip0 o00'se) 422K ays eco ayy 4q_paie299 919M 00'Ohd JO SPUAPIAIG “UoISIAID soRaLISCD aya Jo 22S ay UO S50] B42 oj LONDADE: xer gOO'OZd 2 589} ‘uleS Aleuipioenxe uz Woy Q09'0Te pue UoISIm SoMBWISOD panuudDsip ay Jo suoRevde Woy Guninss. 000'ed snid ‘suonesad Gulnuguos uo xe; ax 4o pays|suCD ypu ‘oc0'zed sam gooZ GuLIMp pied Sexey suoou vias 1 Bapunosay yosoel “sejgeniaoes asour unin Uo;t2eUUOD 4! QoO'SZd JO 1480 PEG 405 S0vEMO}fy Ue PaUSliqerss Aysnoinaid pey J8N0 1000°009d Jo Junawe 02; 2 pey saiqenissa: ays VeHO Aq PSIaPUBUINS Sem joUAD “ayndsip ur S| SalqzAradaL Buy Jo BUOU BUR S91Z20A 4ONE) ay} Bud paAIsDa: |q flu COLA SuMIEWe! dL soe} By} Woy AjsyeIPBWILU! YSeI QO0'ODSd PAAR! “HO ‘000'0ESd 40) asinosas yy SalqeAaDes IOS AUEdWOD JNO “6 eet'sd 7B zecista “¢ 262'02d "3 z56'Ttd e 26002 Ui 550} Yusu1eduit ued} se paz1460391 3g Pinoys UsMW MOH “9BTT MOU s} SIMBU SKN Jo SUBO} UO qSesdqU} Jo BBs NEUE ayL “AUMEW 32 QOO'SLE AIUD 229 Bajades pjnom 3 IeUR tm ‘6007 ‘TE 18qUIaIOG 32 /ynso @ Sy aguaadxs 0} uebsq 18AQ ‘6g9z BuluNp. 2S8OIUl WOT PISA OF pans SEM DIOU F4L ‘OO0'OOTS 3} B}OU Suesg-2se19|UI-UoU JBaA-g & SuUB'S yuEE WIoUA woys pemouzog UoReIOdeD J8AQ “ZZ ‘TE 19qWIIIEG LO “8 oov‘oTd “P ooo'ord “9 00's > 00s, 4 *e 32 ajes aut Lode: pinoys ano ‘quaweqers WOU! BOOT Si UT “9TO2 ‘Te Jequisseq Uo alqeAed si ajOU 242 “00S'LE 40 20Ud User e pUE OOp’ed Jo aoud 3s) © YM suIpEW. 8 40) abueyaxa ut ‘ganz ‘Te Jequiazeg uo AUedUIED 21007 1304) auou BuuesG-3Se181U! %z ‘OGO'OTd @ Paydaoze Auadwoy IO *L oge’std “B uEE'oed “9 versed 2 08s'9/d *e si “dio3, uaIad 42 6002 ‘TE JeqWIaDag LO soURIEG USED aLiOD aYL coe’, Tid 30 5Ueg U! a2uR}eq ZUNo208 BUD;I9uD oor ‘sahojdusa ue 30 NOT 008 4apio AauoW oer sowiers a5e%s00 005'3 —Suunyau saseyaund 493 sueyddns wou owou 3ipas5 vase 1 Baraneooy jeomesraces! Accounting + sera 41. Presented below is Oblivion Company's statement for the current year end. Sales 2 inventory, January 1 2 Purchase: 300,000 Goods available ? Inventory, December 31 7 Cost of goods sold 210,800 Operating expenses a Income before taxes 2 Income tex expense 2 Net income 2 Bernings per share (32,000 shares outstanding) 4.20 Additional date: the income tax rate is 30 percent; oper: expenses amount to six times the peso amount of incame t expense. Ending inventory is five times the amount of beginning invectery. How much is the total cost of goods available for sale? c. P277,700 6. P322,300 incomplete income Inc. shows a retained earnings balance 2009, of 620,000. For 2009, the income from jons was P210,000 before income tex, of special items! discontinued P18,000 Loss on the sale 50,000 Extraordinary gai 25,000 Correction of saies understatement in 2008 (net ne taxes of P21,000 to be paid when file 39,000 ges of prior years (2 fed for an income tax refund 20,000 BS aA Fi. DpeaFinPBia.0S Practical Accounting + SETA ‘The fair vaiue of the recourse obligation is P13,000. The toss on factoring te be recognized by Otter Company is 2. 88,000 c. 45,000 b. 58,000 . P83,000 Use t jon to answer the next two questions: During 2008, the first year of its operations, Osprey Industries purchased the fo lowing infor value Sacutity Classification cost 12/3/08 3/31/09 A 720,000 340,000 90,000 8 79,000 100,000 110,000 c 360,000 150,000 360,000 3 200,000 250,000 120,000 During 2009, Osprey sold one-half of security A for P100,000 and one-half of security D for P130,000. 40. The total amount to be recognized in the 2009 profit or loss related to Osprey’s trading secur a 60,000 c. P 10,000 b. 40,000 ¢. P100,000 he total amount to be recognized in the 2009 profit or loss ed to Ospreys at r-sale securities is 2. 30,000 ¢. P70,000 b. P 5,000 dP 0 12.0n December 31, 2007, Obelisk Co. purchased equity securities designated as financial assets at fair value through profit or loss. Pert Cost 22/31/08 12/21/09 C Company 900,000 P 880,000 780,000, P Company 1,100,000 1,120,000 1,240,000, ACompany 2,000,000 1,920,000 1,720,000, ae ae aE ‘BEOpanaInPBTO.EScovreunmcors rman seo 1g tes eoornengsedora SEUSS cz weg 00S'S6Ed 'P O0E'r6Ed “4 O0E‘P8Ed > 006'66Ed e Osr'srzd “¢ sem B60°E02d "2 € Jequieoad 2e Siesse qWasinD Jo Wnowe pasI09 SUL g02E {Asowsnut uw papnou you $9005 ayi) 9TOz ‘Ot Alenuer uo paranjap Ng 600Z ‘22 JEqUIEDaG UO 3809 J0 940} 28 seworsnD © 0} peatonu! spoo6 Jo adtud BulloS (0046) Sug20 peg 404 20u! oov’eoze sanueyeg gan §3 oorreca oosez™ (0064 Ag dn vanes 34 you 600; saBiey9 yu29 smoys UonssueDa2) ‘yueG UF YSeD 00L'> ¢ 002’ 40 aye SSN SJawoysno 2 Buipniout ‘puey LO USED uonew Buymoyoy 3y3 pamous syuncose ay) Jo ud} waNrzora ore xe} pauiayag o00'ret ‘AoqUaAuT oos’se saguinses Bulpesy, o02'802 Bigenianas syunossy ones 4 use) ‘smotjog 6002 ‘TE J9quis9aq 32 Se “0 aniiG Jo qweAUNODVe 24 Ag pasedasc Jeays souejeq |u2 0 uoDeS SJasse qUaLIMD By! “D> oos‘ostd “Pp ons‘ertd ‘o O0s‘ebig > o0s’setg 'e 25002 ‘TE sSqWsDSq 94 103 pEpUD seBA 919 40) Aueduio> sauaindo Jo swoou yu parsnip] ayy si 2eum. vias 1 Bunurosoy oRDe1e GuBuRsenuy sy 07 payeia1 6ONz ul BUIODLt eaisuayasdwo> Jaye se pazjubo>e1 aq pincys onus oH ur panave snid ‘rep ‘qm ‘TOT 3 spuog FO “TE JaqueDag uO. 8S O19m SpuoG aun GON ‘TE saCUIEDSG LO “ETOZ Joguisvag uo eimeu spuog su, “Te saquie2sg Alans. Ue olqeAed S| rsalaIU] “%~ZT DIaIA 02 Paseyind sum SDUCG Bu "UIRG payeposse ozijeas 0} spuog ut juUNSEAuI [95 J9pISUOD jm AySSQ ‘AQUD!IYNS Ye) Save! yszaNU) IDUU 4] “TeABMOY “AUMJeW 0} SpUdg Ul IUALISOAU! oy Bioy a suid Asiss0 -0z5'TTL"Ed 404 spUEG %OT 000'000'rE paseysind uonziodioy ASSO ‘5002 'T | AuenUeE LQ “py ooo'sasd “e ooo’szed “4 000'TSd ooo'sevd gue Ul ysausauT 9662 SU! 10 PIP Yan won “6002 SuLiNp gao’eZTs Sulle%O3 P bled pue “6002 ‘te eqiser9Q papue JedK 212 10; 000'00ge 10 awioduy yu periods: way “gQ0Z ‘Te sequDIeG 32 000'08hd Sem yuno>e qusuRSaAu! —S.0N9 UI sOUeIeq 218 pue Aunbe ye queunsanur siuy souueo Ajs¥eudosdde ono ‘ASeUDING By2 WO) pases [MpOOS OU IseleYS ALBUIp.O 5,10 UeW Jo Ez PaseyDiNd "0 ONO ‘GOO ‘T KleNUEL UO “ET ENP coo'oetd 4 ooo's8d 2 coo‘o924 @ esaniinoas asauy 03 payeye! 690z ISuByezdU0D Jato Se paziuGosa: 8q pjnaYs yonU JPOURUY [eqoIS ayy Jo asneraq aIeS-104-2198)/2A2 92 Soqunoes eur paxiaysuel ySY2E0 ‘go0z ‘TE sequEI= UO wage 1 Buguncaey oroPract Accounting + SETA Disregarding income taxes, the adjusted profit is a, P39,224 cai 912 b. P41,384 4. 944,072 38. Onus Co. made the following errors in counting its year-end physical inventories: 2007 sore 60,000 overstatement 2008 -.... 108,000 understatement 2009... ~~ 90,000 overstatement As a result of the above undetected errors, 2009 understated by P18,000. was the records of Opulent’s Company, the jere discovered for the year ended December + "A fire premium of 4,000 was paid and charged as Insurance expense in 2009, The fire insurance policy fr 1, 2008. 109 was understated by P8,000. 1 December 31, 2009 was understated by Business taxes of P5,500 for the fourth quarter of 2009 were paid on January 20, 2010 and charged as expense in 2010. + On December 5, 2008, @ cash advance of P£0,000 by a customer y's gross profit on sales is 40%. nome of Opulent’s Company on the income for the year ended December 31, 2009, before any adjustments for the above information, is P155,000. Pracicel Accourcing 1 SETA 15, On December 1, 2009, Ornery Company, a celendar-year-end firm, enters into 2 dé fe contract designed to hedge the risk of cash flows associated with the forecast future sale of 300,000 bushels of wheat. The anticipated saies date Is February 1, 2010, The notional amount of the derivative contract 's 300,000 bushels, the underlying is the price of th same variety and grade of wheat that Ornery expects to st and the rent date of the derivative is February 1, 201 The fair vaiue of the derivative contract on December 3: 2009 increased by 30,000, an amount equal to the decrease in the fair value of the wheat, The fair value of the derivative contract had increased by an additional P25,000 on February 2010, aiso sn amourt equal to the decrea! value of the wheat. On February 1, the settled. The gain attribut recognized in 2009 profit or loss is a. 55,000 <. P25,000 & P30,000 a PO 16. In a cash flow hedge, the gin om the hedging instrurnent he first period after designation is P1,000,000 and the on the hedged 's_ P800,000. | How much recognized in profit or loss? 2. P1,000,000 « >. P 800,000 4a Jn 2005 Occhi Company put ‘on its president, oF 8 1g the policy for the year iciary, ended December 31, 2009 f Cash surrender value, Jaa. 1, 2008 435,000 Annual advance premium paid Jan. 1, 2009 200,000 Life insurance expense recognized 95,000 During 2009, dividends of 30,000 were applied to increase the cash surrender value of the policy. The cash surrender se a5 of December 31, 2009 is BE Dae Bi GpentinnBra.0ssvorsamsndors CTO cz 9626s seroreauisusdo'td Rouoyoarnm 707 obey 000'pS¢ ‘Te saquiareg uo Asowuanut (y szs'eoc'ta ‘2 ons'secd a “paseupind uauis asuadx3 ooc’60s a> Ste"besd "2 Bou 0} pabeyo “goz’te ‘puey uo saydcns e240 (6 ‘09G¢ ‘@auenpe ul pied Susanpy 026't¢ ‘pied IU yng passNdU! seLe|es sales (2 -989'2d ‘2IqeAed Sa}0u uo pansnde wa!eUT (P “DpO'2d “120K ou Sulinp pautcxe eouaunsut (2 “482K aad quedued 07 32 pereraidap 5) uawdinds pue ainymuny (q “aigeniozay squnooae oy qnog 40) sauemony aug rsnioy (e SOuIue jeusnot Sunsnfpe Jo uoeiedaid ayy 40) Auessezeu uoneULICJUT Jo qwaoied g 0} sjunossy wre SLOT wor asusdxg S010 0075 —=s«asuadxg sauzjeg anensiuupy age’ uadxg Bustuenoy 00"or asuadxg Seue|eS S3I25 oo0'oze seseyoung S225 yeudea “s0umo ‘1qeked $9300 o80'y pouesnsuy piedard oge’sz, 1 Aenuer + tyonerseudad payenunsoy o0z'z9 queuidinba pue auniuing 09°29 F Avenue ‘Auowenut ogre squnosoy IRgNog 403 “Moly oos‘ee ‘ajgeniadsy squnozoy o08'rt sea, wep | yasd 6002 ‘Te sew soueieg FeuL Auredwog 812987300 “Avedwod axe2snjq0 jo a2ugjeg jeUy TE sequieeg au S| Mosq paUassg Le vas 1 Bugunoaay eoreeia ‘sumquagap aig 30 aseyaindas ax Jo 3 2 Se 850) 10 yoid uw paziuGoze: aq 0} junowe ay? aind a 2 uso sad 8 50 912s 350183 uodnes © Bun2oq wer 1294-99 2 yum 1e—P sJqRUAALOD ~uou pens) axey pine woReiodie5 siseo. /aseusindas 40 a1eD aWR ay - “siéeD3e Japjoy ax uDIUK ‘o99'00S'Se Go} aimuagap ot aseudinde: 0) simwuaqap ax jo J9I0u un 02 Jao repuay @ sajeu uojselodi09 S152 -000'009"Se J0 anjen ile} ® Sey samuaqap sjqnuenio> aun ‘goa Alenuer 7 uO 29 Jad TT yo sye1 ysauanV} uadnas 2 ey aigeded Ss} ISOs0QUE "SUE ‘oud uoisisauos 2 32 UoeI0de5 sis2Q 40 sales AseUIpIO oyUE aiqaieauod sl aimuagap S41 "eToZ Jequwaveg Te vo Suumeu 000'000'Sd Jo anjen ase} e uaim suMquegep aiqneaue 3u89 48d QT @ pans: uoReicd:99 siseQ ‘pOOZ AIBMUEL T UO *6T ooa'e6zs 'e ooo'ezta “¢ n00's¢24 > 0 de gsuawioxsn> wo seouenpe 40; Aypqey) quan e se papoda: aq pinous qunowe eum "Jeays eouzleq 600g ‘TE JaquIAIAG SaIeWIO UT 0004007 600 ul pareaued suapio 01 aiqeouidde ssuenpY ooo'see 6007 U1 paddiys siapio 0} patidde seouenpy a00’89e 6007 tI StapI0 yrim panjsoa: SaDUeAPY oG0'seze 80/TE/ZT aaue|eq-saouenpe 18UI03SO SIMo}}03 Se S| GO0Z 40 UoReWLO;U; “ajgepuNJeiuoU ave saoUeRpe asoui “suoHeoYIneds sawoysn9 0} payonaasued ABUUpeW 30} S1@puo Je;seds uains sqUAWARd ODueApE sOuINba! “0D EYEULO “BT ooo'serd “p ooo'orss “¢ 900'0bSd “> oo0‘orse “e vas | Sununccoy yeosoeiPracieal Accounting + SETA 36. The trial balance of Ogle Traveler Corporation does not balance. Debit Credit Cash P 5,912 Accounts Recelvable 5,240 Supplies on Hand 2,967 Furniture and Equipment 6,106 Accounts Payable P 7,044 Share capital 8,000 Retained Earnings 2,000 Service Revenue 5,200 Office Expense 4.320 24.539 P22,288 ‘An examination of the ledger shovis these errors. 1 ‘2 customer oa account was recorded a5 P1,380 ft 2 t of @ computer 3 for a client, 2,250, debited P2,250 and Service Reve 4. A payment of P95 for telephone charges was entered as 2 9 Office Expenses and a debit to Cash. 5. The Service Revenue account was totaled at PS,200 instead of P5,280. ‘The corrected trial balance of the company should show total debits of 2. 224,593 c. P2448 b. 24,539 dg, P24,349 Page soa aa a ai apentanaIOOS EF Practical Accounting 4 Sera 20, 22 Orloie Corp. has an outstanding 10% note payable dated October 1, 2007 and is payable in three equal annu payments of P600,000 pius interest. The first interest and payment was made on October 1, 2008. , 2009 statement of should be reported as accrued interest payable for this note? 2. P135,000 cc. P90,000 b. P 45,000 d. 30,000 Oracle Company, a lessor of office sew machine for PS00,0 he same day to Lee. machines, ides for annual rent “y 1, 2009. Ad Lee paid vase bonus. In 19 Incorne Statement, what amount of revenue and expense should Oracle report on this leased asset? Revenue Expense P100,000 PO PL36,000 PO PLi6,000 55,000 P164,000 P55,900 payments of Ordeai Company teased equipment to Lessee Inc. on Jani 1, 2008. The lease is for an eight-year period expiring December 31, 2015. The fi of P900,000 was made on Jenvary 1, 2008. Ordeal had purchased on December 28, 2007, for ‘appropriately accounted for as 2 ‘Assume that the present value at January 1, 2008, of ail rent payments over the lease t discounted at 2 20 percent interest rate was P5,280,000. What amount of interest income should Ordeal record in 2009 a8 a result of the lease? a. 490,000 <. P438,000 b. 480,000 é. P391,800 oF aimee FiO aaaAPBIO DSpee ee RemessTOMAR __yeyozt ase gororsaunsvedorrd = ETH Lesa 4 3008 oLee -P “Lid ‘a ete 2 ELTd 'e 16002 “TE ABW papue 1294 1 ut Joy aueys ad sOummee oy) “2002 Wi UE seUBIY HOT 5 "002 'Te AeW PSPUE 4eBk aty Jo! 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No consideration is paid or received at the inception of the contract. The market interest rate s 10% on January 1, 2009 2nd 12% on December 31, 2009. At December 31, 2009, what amount should Obsisance Corporation show in notes to financial statements as 2 restriction of retainec esrnings? 2 P60,000 cc. P53,574 Db. P54,5a5 a PO 32, Obscure Corp.'s outstanding share capital et December 15, 2009, consisted of the following * 30,000 5% cumulative preference shares, par value P10 per share, participating as to dividends, No Gividends were in arreers, © 200,000 ordinary shares, par value P1 per share. On December 15, 2008, Obscure declared cividends of 100,000. What wes the amount of es OF SUS! 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