MOCK EXAM (1ST) FOR BA 99.2 – FUNDAMENTALS OF ACCOUNTING A.Y.

20-21

ANSWER KEY

THEORY

1. F 25. C
2. T 26. D
3. T 27. D
4. F 28. A
5. T 29. C
30. B
6. F
7. T 31. D
8. T 32. B
9. F 33. C
10. F 34. D
35. A
11. T
12. F 36. D
13. F 37. C
14. F 38. D
15. T 39. C
40. A
16. T
17. F 41. B
18. F 42. C
19. T 43. A
20. T 44. C
45. A
21. D
22. D
23. C
24. C

PROBLEM-SOLVING (MC)

1. A 6. D 11. C 16. C
2. B 7. B 12. B 17. D
3. A 8. C 13. D 18. A
4. A 9. C 14. C 19. D
5. C 10. B 15. A 20. A

1. A
240,000 + (264,000 x 240/400) – 78,400 = 320,000

2. B
42,000 + 28,000 + 15,000 – 12,000 = 73,000
MOCK EXAM (1ST) FOR BA 99.2 – FUNDAMENTALS OF ACCOUNTING A.Y. 20-21

3. A
(P1,000,000 × 99%) + (P1,000,000 × 10% × 3/12) = 1,015,000

4. A
60,000 + 40,000 + 20,000 = 120,000; 120,000 x 10% = 12,000; 40,000 + [(20,000 – 12,000) x 3/5] = 44,800

5. C – Record those maturing within the next 12 months as Current

6. D

Phoenix Razor Sandking Total

Salary 122,325 82,625 204,950
Interest 47,250 23,865 16,235 87,350
Remainder (139,308) (139,308) (139,308) (417,924)
Total 30,267 (115,443) (40,448) (125,624)
7. B
646,200 x 5% = 32,310; [646,200 – (36,000 – 32,310)] x 5% = 32,126; 32,126 + 32,310 = 64,436

8. C
2,000 x 3% x 50 = 3,000 – 2,000 = 1,000

9. C
(900,000 x 103%) – (910,000) = 17,000 loss

10. B
(40 x 27) + (6 x 40.50) = 1,323; 1,323 – 350 – (300 x 6%) – (1,323 x 1.5%) = 935.155

11. C
30,000 + (30,000 x 5% x 90/360) = 30,375

12. B
52,000 – [15,179 – (52,000 x 6.5%)] = 40,201

13. D
[(P6,000,000 + P720,000 – P630,000 + P1,500,000) ÷ 1,500,000] × 450,000 = P2,277,000
14. C
180,000 x 32/120 = 48,000

15. A
220,000 – 30,000 = 190,000 ; 190,000 / 10 = 19,000

16. C
1st truck = 150,000 + 42,000 = 192,000 ; 2nd truck = 150,000; repairs expense – 4,200

17. D
1,600,000 + 165,000 + 185,000 = 1,950,000

18. A
MOCK EXAM (1ST) FOR BA 99.2 – FUNDAMENTALS OF ACCOUNTING A.Y. 20-21

Carrying amount, 1/1/20 (600,000 x 10/20) 300,000

Add overhaul costs: 120,000
Total remaining CA, 1/1/20 420,000
Divide by remaining life ______15
Depreciation for 2020 28,000

19. D
600,000 + 980,000 – 860,000 = 720,000

20. A
130,000 – 25,000 – 60,000 = 45,000 share in NI; 45,000 / 30% = 150,000

PROBLEM-SOLVING

1. For first year: 90,000 / 3 x 8/12 = 20,000

For second year: 90,000 / 3 = 30,000
For last year: 90,000 / 3 x 4/12 = 10,000

2.
A. Product Warranty Expense (150,000 x 6%) 9,000
Product Warranty Payable 9,000
#

B. Product Warranty Payable 285

Supplies/Parts Inventory 200
Wages Payable/Cash 85

3.
a) P100,000 X .01 = 1,000 premium
100,000 X .10 = 10,000 annual cash payment
10,000 X 10 years = 100,000
100,000 - 1,000 = P99,000 total interest expense

b) P240,000 X .05 = 12,000 annual cash payment

12,000 X 5 years = P60,000 total interest expense

c)P300,000 X .02 = 6,000 discount

300,000 X .09 = 27,000 annual cash payment
27,000 X 6 years = 162,000
162,000 + 6,000 = P168,000 total interest expense

4.

a)

Net income P 120,000

Division of net income

MOCK EXAM (1ST) FOR BA 99.2 – FUNDAMENTALS OF ACCOUNTING A.Y. 20-21

Taylor Swift Total

Salary allowance P 25,000 P 35,000 P 60,000
Interest allowance 16,800 19,200 36,000
Remaining income 12,000 12,000 24,000
Net income P 53,800 P 66,200 P 120,000

b)

Net income P 50,000

Division of net income

Taylor Swift Total

Salary allowance P 25,000 P 35,000 P 60,000
Interest allowance 16,800 19,200 36,000
Remaining income (23,000) (23,000) (46,000)
Net income P 18,800 P 31,200 P 50,000