ACCTG26 PRELIM L1

____ 1. Tactful Company reported that the operating expenses other than interest expense fpr the year amount to 40%
of cosr of goods sold but only 20% of sales. Interest expense i 5% of sales. The amount of purchases is 120%
of cost of goods sold. Ending inventory is twice as much as the beginning inventory. The net income for the
year is P560,000. The income tax rate is 30%.

What is the amount of sales for the year?

____ 2. Bangladesh Company provided the following inforamation for the current year:
Sales 50,000,000
Cost of goods sold 30,000,000
Distribution costs 5,000,000
General and administrative expenses 4,000,000
Interet expene 2,000,000
Gain on early extinguishment of long-term debt 500,000
Correction of inventory error, net of income tax - credit 1,000,000
Investment income - equity method 3,000,000
Gain on exproriation 2,000,000
Income tax expense 5,000,000
Dividends declared 2,500,000

What is the income from continuing operations?

____ 3. Dahlia Company provided the following information for the current year:
Sales 9,500,000
Interest revenue 250,000
Gain sale of equipment 100,000
Revaluation surplus during the year 1,200,000
Share of profit of associate 350,000
Cost of goods sold 6,000,000
Finance cost 150,000
Distribution cost 500,000
Administrative expense 300,000
Translation loss on foreign operatoin 200,000
Income tax expense 950,000

What is the net income for the current year?

____ 4. Lotus Company provided the following data for the current year:
Sales 9,750,000
Share of profit of associate 450,000
Decrease in inventory of finished goods 250,000
Raw materials and consumables ued 3,500,000
Employee benefit expense 1,500,000
Unrealized gain on credit risk of a financial
liability designated at FVPL 300,000
Impairment loss 800,000
Finance cost 350,000
Other operating expenses 900,000
Income tax expense 900,000
 Unrealized gain on interest rate swap designated
as a cash flow hedge 200,000
What is the net income for the current year?
____ 5. Empress Company provided the following data for the current year:
Retained earnings, January 1 3,000,000
Dividends declared 1,000,000
Sales Dividend income 8,350,000
Dividend income 100,000
Inventory, January 1 1,040,000
Purchases 3,720,000
Salaries 1,540,000
Contrubution to employees’ pension fund 280,000
Delivery 205,000
Miscellaneous expense 125,000
Doubtful accounts expense 10,000
Depreciatoin expense 85,000
Loss on sale of securites 40,000
Loss on inventory writedown 150,000
Income from discontinued operation, net of tax 500,000
Income tax expense 105,000
Inventory on December 31 (P850,000 less P150,000
writediwn of obsolete inventory) 700,000

What is the cot of goods sold?

____ 6. Empress Company provided the following data for the current year:
Retained earnings, January 1 3,000,000
Dividends declared 1,000,000
Sales Dividend income 8,350,000
Dividend income 100,000
Inventory, January 1 1,040,000
Purchases 3,720,000
Salaries 1,540,000
Contrubution to employees’ pension fund 280,000
Delivery 205,000
Miscellaneous expense 125,000
Doubtful accounts expense 10,000
Depreciatoin expense 85,000
Loss on sale of securites 40,000
Loss on inventory writedown 150,000
Income from discontinued operation, net of tax 500,000
Income tax expense 105,000
Inventory on December 31 (P850,000 less P150,000
writediwn of obsolete inventory) 700,000

What is the total amount of expenses before income tax?

____ 7. Empress Company provided the following data for the current year:
Retained earnings, January 1 3,000,000
Dividends declared 1,000,000
Sales Dividend income 8,350,000
 Dividend income 100,000
Inventory, January 1 1,040,000
Purchases 3,720,000
Salaries 1,540,000
Contrubution to employees’ pension fund 280,000
Delivery 205,000
Miscellaneous expense 125,000
Doubtful accounts expense 10,000
Depreciatoin expense 85,000
Loss on sale of securites 40,000
Loss on inventory writedown 150,000
Income from discontinued operation, net of tax 500,000
Income tax expense 105,000
Inventory on December 31 (P850,000 less P150,000
writediwn of obsolete inventory) 700,000

What is the net income for the current year?

____ 8. Empress Company provided the following data for the current year:
Retained earnings, January 1 3,000,000
Dividends declared 1,000,000
Sales Dividend income 8,350,000
Dividend income 100,000
Inventory, January 1 1,040,000
Purchases 3,720,000
Salaries 1,540,000
Contrubution to employees’ pension fund 280,000
Delivery 205,000
Miscellaneous expense 125,000
Doubtful accounts expense 10,000
Depreciatoin expense 85,000
Loss on sale of securites 40,000
Loss on inventory writedown 150,000
Income from discontinued operation, net of tax 500,000
Income tax expense 105,000
Inventory on December 31 (P850,000 less P150,000
writediwn of obsolete inventory) 700,000

What is the balance of retained earnings on December 31?