RIZAL TECHNOLOGICAL UNIVERSITY

Boni Avenue, Mandaluyong City

Junior Philippine Institute of Accountants

SET A

ANSWER KEY 1ST SEM._SCHOOL YEAR 2017-2018

MOCK COMPREHENSIVE EXAMINATION ADVANCED ACCOUNTING 1

1. B 13. B 25. D 37. C 49. C

2. D 14. A 26. A 38. B 50. A
3. A 15. A 27. A 39. C 51. C Incidentally, the journal entry would be:
4. B 16. C 28. B 40. A 52. A
Legarda, capital Php. 700,000.00
5. C 17. C 29. C 41. D 53. D
Armuela, capital 5,000.00
6. B 18. D 30. C 42. C 54. D
Lunes, capital 5,000.00
7. D 19. D 31. B 43. A 55. B
F&F, carrying value Php. 115,000.00
8. A 20. C 32. A 44. C 56. A
Notes payable 595,000.00
9. B 21. D 33. C 45. D 57. C
10. D 22. C 34. D 46. D 58. A
35.
11. D 23. D 35. D 47. B 59. A
CENG FENG TOTAL
12. C 24. B 36. A 48. A 60. C
Interest on Average
Capital:
31. In the formation of a partnership, one or more of Ceng : 60% x 45,000 P27,000 P27,000
the partner will contribute noncash assets to the Feng: 60% x 36,250 P21,750 21,750
business such as inventory, land, or equipment, Balance 5,625 5,625 11,250
etc.. Retaining the recorded cost for such asset P32,625 P27,375 P60,000
would be inequitable to any partners investing
appreciated property. Therefore, the contribution of Average Capitals:
noncash assets to a partnership should be recorded  Ceng
based on fair values. In this case, the fair value of 1/1-4/1-----------50,000 x 3 P150,000
the land would be measured by its sales price on 4/1-8/1-----------35,000 x 4 140,000
the date of sale, Php. 100,000.00. 8/1-10/1---------45,000 x 2 90,000
10/1-12/1-------50,000 x 2 100,000
32. 12/1-12/31------60,000 x 1 60,000
CAPITAL ERICKA Divided by: 544,000/12
CASH Php. 1,200,000.00
Weighted-Average Capital P 45,000
EQUIPMENT 1,250,000.00
BUILDING 2,750,000.00  Feng
SUPPLIES 100,000.00 1/1-8/1-----------35,000 x 7 P245,000
Total asset invested Php. 5,300,000.00 8/1-9/1----------55,000 x 1 55,000
Less: Mortgage loan 1,300,000.00 9/1-10/1---------40,000 x 1 40,000
Capital balance Php. 4,000,000.00
10/1-12/1--------30,000 x 2 60,000
12/1-12/31------35,000 x1 35,000
33. Reduction in capital: Divided by: 435,000/12
F&F at carrying value Php.115,000.00 Weighted-Average Capital P 36,250
Less: F&F at second-hand value 100,000.00
(FV) 36. The weighted average capital would be:
Decrease in F&F Php. 15,000.00 Feola
Multiply by: P&L 1/3 January P100,000 x 6 (Jan.-Jun.) P600,000
Reduction in capital Php. 5,000.00 July P 88,000 x 1 (July) 88,000
August P128,000 x 5 (Aug.-Dec.) 640,000
34. Notes payable to Legarda: P1,328,000
Unadjusted capital of Legarda Php. 700,000.00 Divided by 12 months
Less: Share in the decrease of 5,000.00 Weighted Average Capital P 110,667
F&F
Adjusted capital of Legarda Php. 695,000.00  It should be noted that the number of months
Less: F&F received at second- 100,000.00 in the computation includes the current month
hand value
(before the date of investment or date of
Value of notes payable Php. 595,000.00
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 withdrawal) since the counting should start at
the beginning of the month (let’s say June 3, 42. 15% (P115,000 – B) = P15,000
therefore the month of June should be included
in the counting to compute the average capital 43. Credit Bal. in the Joint Venture Account P90,000
for the P100,000). Unsold Merch. 25,000
Net profit before bonus P115,000
Balogbog Bonus (15,000)
January P120,000 x 5 (Jan.-May.) P600,000 Net profit after bonus P100,000
June P 105,000 x 5 (June-Oct.) 525,000
Nov. P155,000 x 2 (Nov.-Dec.) 312,000 44. Purchases P300,000
P1,435,000 Expenses 34,500
Divided by 12 months Bal. End 225,000
Weighted Average Capital P 119,583 Sales P559,500

 Drawings are ignored as stated in the problem. 45. Bal. End P225,000
37. Unsold Merch. 11,500
Total agreed capital of the new partnership Total P236,500
(P310,000+P200,000+P190,000/80%) P875,000 Share equally 50%
Less: Contribution of old partners 700,000
Share in Joint Venture P118,250
Cash Investment of Danielle P175,000
Or, alternatively:
Total agreed capital of the new partnership P875,000 46. 215 @ 500 = P107,500 – 2100 = P105,400
Multiplied by: capital interest of Danielle 20%
P175,000 47. 186 @ 80 = P6880
129 @ 140 = 18060
38. Whether there is a profit or a loss, A will have a Total P29,940
greater advantage. When there is a profit, A will
obtain a 20% bonus on profit before the bonus, and 48. 7 x 12 x 2000 = P168,000
also take 40% of the profit after the bonus. B on the Commission .15
other hand, will receive only 60% of the profit after Net P142,800
the bonus. The following example illustrates this: Expenses (3,000)
A B Profit Remittance P139,800
P & L ratio 40% 60%
20 % bonus 200 0 200 49. Sales P168,000
Share in profit 320 480 800 Cost – 50% (84,000)
Total distribution 520 480 1000 Expenses (3,000)
Freight (210)
39.
Commission (25,200)
Total capital P174,000
Consignment Profit P55,590
(P50,000+P60,000+P20,000+44,000)
Total Liabilities 90,000
Total Assets P264,000 50. Under the cost recovery method, no profit is
Less: Cash 40,000 recognized until the cumulative receipts exceed the
Non-cash assets P224,000 cost of the asset sold. This means that the entire gross
Less: Loss on realization: profit (P5,000,000-P4,000,000 = P1,000,000) and the
(P52,200-P67,600*) / 40% 31,000 2016 interest revenue (P132,000) will be deferred
Proceeds from sale P193,000 until cash collections exceed P 4,000,000. Therefore,
*(P50,000 + (P44,000 x 40%) no income is recognized in 2016.
51. Installment Accounts Receivable,
40.
12/31/08 840,000
T O N Multiplied by: Gross profit rate:
Bal. before liquidation P40,000 P25,000 P5,000
Loss on realization
(339,750/755,000) 45%
(P28,000-P70,000) 3:2:1 (21,000) (14,000) (7,000) Deferred gross profit,
Balances P19,000 P11,000 P(2,000) December 31, 2016 378,000
Loss on possible insolvency of N:
3:2 (1,200) (800) 2,000
Cash received P17,800 P10,200 0

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52. Unrealized gross profit/gross profit rate =
192,000/(66 2/3/166 2/3) 480,000 59. Sales P74,000
Add: Collections 360,000 Cost of Sales
Installment sales 840,000 Shipments P67,680
Ending Inventory (9,180)
58,500
Gross Profit P15,500
53. P20,000,000 x 3,000,000 / 15,000,000 = P4,000,000 Expenses (6,820)
Net Profit P8,680
54. Contract Price P10,500,000
Total Estimated Cost 60. Home Office – Current P17,500
Cost to Date P3,150,000 Net Profit 8,680
Estimated Cost to Complete 6,300,000 Branch Current P26,180
(9,450,000)
Total Estimated Income P1,050,000
Percentage of Completion
(3,150,000/9,450,000) 33 1/3
Income P350,000

55. Contract Price P15,000,000 Prepared by:

Total Estimated Cost
(4,650,000 + 10,850,000) (15,500,000)
Loss P500,000 Diego Melo Buenconsejo
President, RTU-JPIA
56. Total Billed P843,750
AR Balance (300,000) Cedric Legaspi Tagala
Total Collections P543,750 VP for Information and Publicity, RTU-JPIA
Amt. Deposited (500,000)
Amt. not yet deposited P43,750 Checked by:

57. Sales P46,500 Prof. Macrina Violeta Vicente-Mutuc, CPA

.70 Faculty, Accountancy/ Adviser,RTU-JPIA
Cost of Sales P32,550
Freight 1,100 Recommending Approval:
Cost of sales with Freight P33,650

Prof. Elizabeth E. Salvador, CPA

58. Sales P46,500
Department Head, Accountancy
Sales Discount (36,690 / .98) – 39690 810
P45,690 Approved by:
Cost of Sales 33,650
Gross Profit P12,040
Expenses Prof. Amelia M. Arganda, CPA
Selling P2,820 CBET, Dean
Administrative 2325
Samples 1900
(7045)
Net Income P4,995

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