Chapt

er7
Probl
emI
1.
20x4:NoPr
ofi
tisr
ecog
nize
d.P4,
000downpa
ymen
tist
rea
teda
sar
etu
rnofi
nve
stme
nt.
20x
5P750i
spr
ofi
t.
P250i
str
eat
eda
sar
etu
rnofi
nve
stme
nt.
Fol
l
owi
ngye
ars
:Ea
cha
nnu
ali
nst
all
men
tfP1
,
000i
spr
ofi
t.

2.
20x
4:P4,
000i
spr
ofi
t.
20x
5:P1
,
000i
spr
ofi
t.
20x
6:P750i
spr
ofi
t,
andP250i
str
eat
eda
sre
tur
nofi
nve
stme
nt.
Fol
l
owi
ngye
ars
:Ea
cha
nnu
ali
nst
all
men
tisP1
,
000i
str
eat
eda
sar
etu
rnofi
nve
stme
nt.

3.
Prof
itPe
rce
nta
gei
s5,
750/P1
0,000,
or5.
75% ofs
ale
s
20x
4:P4,
000x57.
5% ,
orP2,
300,
ispr
ofi
t;
P1,
700i
str
eat
eda
sar
etu
rnofi
nve
stme
nt.
Fol
l
owi
ngye
ars
:P1
,
000x57.
5% ,
orP575pe
rye
ar,
isr
ega
rde
daspr
ofi
t.
P425pe
rye
ari
str
eat
eda
sre
tur
nofi
nve
stme
nt.

Probl
emII
1.
En t
ri
esi
n20x
4:
Ca
sh…………………………………………………………………….
……….
. 3,
500
Mor
tga
geNot
esRe
cei
vabl
e……………………………………………….
. 20,
500
Re
alEs
tat
e……………………………………………………………. 9,
000
Gai
nonSal
eofRe
alEs
tat
e……………………………………….
. 1
5,000
Ca
sh……………………………………………………………………………… 500
Mor
tga
geNot
esRe
cei
vabl
e………………………………………. 500

En
tryi
n20x
5:
Re
alEs
tat
e………………………………………………………………………. 1
6,500
L
ossonRe
pos
ses
si
onofRe
alEs
tat
e……………………………………….
. 3,
500
Mor
tga
geNot
esRe
cei
vabl
e……………………………………… 20,
000

2.En
tri
esi
n20x
4
Ca
sh……………………………………………………………………………… 3,
500
Mor
tga
geNot
esRe
cei
vabl
e……………………………………………….
. 20,
500
Re
alEs
tat
e…………………………………………………………….
. 9,
000
Def
err
edGr
ossPr
ofi
tonI
nst
all
men
tSa
les……………….
.
.
..
.
..
.
.
.. 1
5,000
Ca
sh………………………………………………………………………………. 500
Mor
tga
geNot
esRe
cei
vabl
e………………………………….
.
….. 500
 Re
cei
ptP500c
ashi
n20x
4appl
i
cabl
etopr
inc
ipa
lofn
ote

De
fer
redGr
ossPr
ofi
tonI
nst
all
men
tSa
les……………………………….
.
. 2,
500
Re
ali
zedGr
ossPr
ofi
tonI
nst
all
men
tSa
les
……………………….
.
. 2,
500
Gr
ossPr
ofi
tPe
rce
nta
ges
1
5,000/
24,
000,
or62.
5%
6.
25% ofP4,
000(
col
l
ect
ion
sinc
ont
rac
tin20x
4)
OrP2,
500

En
tryi
n20x
5
Re
alEs
tat
e……………………………………………………………………….
.
.16,
500
De
fer
redGr
ossPr
ofi
tonI
nst
all
men
tSa
les………………………………….
.12,
500
Mor
tga
geNot
esRe
cei
vabl
e……………………………………….
. 20,
000
Ga
ini
nRe
pos
ses
si
onofRe
alEs
tat
e……………………………….
. 9,
000

Probl
emI
II
1.
a
.Ins
tal
l
men
tCon
tra
ctsRe
cei
vabl
e19X8………………………………… 250,
000
I
nst
all
men
tSa
les…………………………………………………… 250,
000

b. Ca
sh………………………………………………………………………….
.120,
000
I
nst
all
men
tCon
tra
ctsRe
cei
vabl
e19X8……………………… 1
20,
000

c
. Cos
tofI
nst
all
men
tSa
les………………………………………………….
. 200,
000
Me
rch
andi
seI
nve
ntor
y………………………………………….
. 200,
000

d. Me
rch
andi
seRe
pos
ses
si
ons……………………………………………… 1
4,500
De
fer
redGr
ossPr
ofi
tonI
nst
all
men
tSa
les1
9X8…………….
. 4,
000
L
ossonRe
pos
ses
si
on…………………………………………….
.
. 1
,
500
I
nst
all
men
tCon
tra
ctsRe
cei
vabl
e,1
9X8……………. 20,
000
Gr
ossPr
ofi
tPe
rce
nta
ges
:50,
000/
250,
000,
or20%
De
fer
redGr
ossPr
ofi
tonRe
pos
ses
si
on:
20% ofP20,
000orP4,
000
 Fa
irv
alu
eofr
epos
ses
sedme
rch
andi
se.
. P1
4,500
L
ess
:Un
rec
ove
redc
ost
:
Un
pai
dba
lan
ce…………………………P20,
000
L
ess
:De
fer
redGr
ossPr
ofi
t
20% xP20,
000…………………… 4,
000 1
6,000
L
ossonr
epos
ses
si
on……………………. P1
,
500

e
. Ex
pen
ses……………………………………………………………………… 1
6,000
Ca
sh…………………………………………………………………. 1
6,000
2.
Adj
ust
men
ttoRe
cog
nizeGr
ossPr
ofi
tonI
nst
all
men
tsS
ale
s:

a
. Tos
et-u
pCos
tofI
nst
all
men
tSa
les
:
Noe
ntr
y(s
inc
epe
rpe
tua
lin
ven
tor
yme
thodi
sus
ed)

b. Tos
et-u
pDe
fer
redGr
ossPr
ofi
tonI
nst
all
men
tSa
les
:
I
nst
all
men
tSa
les……………………………………………………… 250,
000
Cos
tofI
nst
all
men
tSa
les…………………………………. 200,
000
De
fer
redGr
ossPr
ofi
tonI
nst
all
men
tSa
les
-20x
4..
……… 50,
000

c
. Adj
ust
men
ttoRe
cog
nizeGr
ossPr
ofi
tonI
nst
all
men
tSa
les
:
De
fer
redGr
ossPr
ofi
tonI
nst
all
men
tSa
les–20x
4………….
.
……. 24,
000
Re
ali
zedGr
ossPr
ofi
tonI
nst
all
men
tSa
les–20x
4………. 24,
000
Re
ali
zedGr
ossPr
ofi
t:
20% ofP1
20,
000(
col
l
ect
ion
s),
orP24,
000

d. Cl
osi
ngofn
omi
nala
cco
unt
s.
Re
ali
zedGr
ossPr
ofi
tonI
nst
all
men
tSa
les–20x
4………………… 24,
000
Ex
pen
ses………………………………………………………. 1
6,000
L
ossonRe
pos
ses
si
ons………………………………………. 1
,
500
I
ncomeS
umma
ry……………………………………………. 6,
500
Toc
los
eth
eac
cou
ntsf
or20x
4.

Pr
obl
emI
V
1
.
J
anu
aryt
oDe
cembe
r31 20x
4 20x
5
(
1)Tor
ecor
dre
gul
ars
ale
s:
Ac
coun
tsre
cei
vabl
e 600,
000 1
,
080,
000
Sa
les 600,
00 1
,
080,
000

(
2)Tor
ecordi
nstal
l
mentsa
le:
Cash 60,
000 144,
000
I
nst
all
menta
ccount
sre
cei
vabl
e 300,
000 336,
000
Ins
tal
l
mentSal
es 360,
000 480,
000

(
3)Torecordc
ostofsa
les
:
Per
iodicMet
hod:Noentr
y

Pe
rpe
tualMeth
od:
Re
gul
a rSal
es:
CostofSal
es 480,
000 864,
000
Merch
andi
sei
nve
ntor
y 480,
000 864,
000

I
nst
all
mentSal
es:
Costofi
nst
all
ments
ale
s 252,
000 31
2,
000
Mer
chandi
sei
nve
ntor
y 252,
000 31
2,
000

(
4)Tor
ecordcol
lect
ion
s:
Re
gularSal
es:
Cas
h 1
44,
000 360,
000
Account
sre
cei
vabl
e 1
44,
000 360,
000

I
nst
all
mentSal
es:
Cash 1
08,
000 204,
000
Ins
tal
lmentAc
coun
tsr
ece
iva
ble–
20x2 72,
000 72,
000
Ins
tal
lmentAc
coun
tsr
ece
iva
ble–
20x3 60,
000
Int
eres
tincome 36,
000 72,
000

(
5)t
ore
cor
dpaymentofoper
ati
nge
xpe
nse
s:
Ope
rat
ingexpen
ses 90,
000 1
02,
000
Ca
sh 90,
000 1
02,
000
2.

Adj
ust
inge
ntr
ies(
endoft
heye
ar)
:
(
6)Tor
ecog
nizea
ccr
uedi
nte
res
tre
cei
vabl
e
I
nte
res
tre
cei
vabl
e 1
,
440 2,
880
I
nte
res
tin
come 1
,
440 2,
880

(
7)Tos
et-u
pCos
tofS
ale
s:
Pe
riodi
cMe
thod:
Cos
tofi
nst
all
men
tsa
les 480,
000 864,
000
Me
rch
andi
sei
nve
nto
ry 480,
000 864,
000

Pe
rpe
tua
lMe
thod:
Noe
ntr
y

(
7)Tos
et-u
pCos
tofI
nst
all
men
tSa
les
:
Pe
riodi
cMe
thod:
Cos
tofi
nst
all
men
tsa
les 252,
000 31
2,
000
S
hipme
ntsoni
nst
all
men
tsa
les 252,
000 31
2,
000

Pe
rpe
tua
lMe
thod:
Noe
ntr
y
 (
8)Tos
et-u
pDe
fer
redGr
ossPr
ofi
t
I
nst
all
men
tsa
les 360,
000 480,
000
Cos
tofi
nst
all
men
tsa
les 252,
000 31
2,
000
De
fer
redg
ros
spr
ofi
t– 20x
4 1
08,
000
Def
err
edg r
osspr
ofi
t– 20x5 1
68,
000
Gros
sprof
itrat
e–20x4:
P1 08,
000/P360,
000=30% .
Gros
sprof
itrat
e–20x5:
P168,
000/P480,
000=35% .

(
9)Torecor
dre
ali
zedg
ros
spr
ofi
toni
nst
all
men
t
s
ale
s:
De
fer
redg
ros
spr
ofi
t–20x
4 25,
200 25,
200
De
fer
redg
ros
spr
ofi
t–20x
5 21
,
000
Re
ali
zedg
ros
spr
ofi
t 25,
200 46,
200
20x
4: Re
alizedgrossprofi
to nins
tal
l
mentsal
es:
Col
lecti
onsapplyin
ga stoprinc
ipa
l.
.……………………………P72,
000
Mul
tipli
edby: Grossprofi
trat
e……………………………………. 30%
Rea
li
ze dgrossprofit
…………………………………………………P21 ,
600
20x
5:Re
ali
zedg
ros
spr
ofi
toni
nst
all
men
tsa
les
;
20x
4 20x
5
Col
l
ect
ion
s–pr
inc
ipa
l…………… P72,
000 P60,
000
____30 ____35
Mu
lti
pli
esby:
Gros
spr
ofi
t% .
.
.
..
.
..
.
. % %
Re
ali
zedg
ros
spr
ofi
t……………… P21
,
600 P21
,
000 P42,
600

Cl
osi
nge
ntr
ies
:
(
10)Toc
los
ere
ali
zedg
ros
spr
ofi
tac
cou
nt:
Re
ali
zedg
ros
spr
ofi
t 21
,
600 42,
600
I
ncomes
umma
ry 21
,
600 42,
600

(
11
)Toc
los
eot
hern
omi
nal
acc
oun
ts
S
ale
s 600,
000 1
,
080,
000
I
nte
res
tin
come 37,
440 74,
880
Cos
tofs
ale
s 480,
000 864,
000
Ope
rat
inge
xpe
nse
s 90,
000 1
02,
000
I
ncomes
umma
ry 67,
440 1
88,
880

(
12)Toc
los
ere
sul
tsofope
rat
ion
s:
I
ncomes
umma
ry 89,
040 231
,
480
Re
tai
nede
arn
ing
s 89,
040 231
,
480
Probl
emV
1.
TypeofS al
e Amou
nt Ra
tiot
oTot
alS
ale
s Al
l
oca
tedCos
t
Regula
rS al
es:
Ca s
hs a
les P 225,
000 P*146,
250
Creditsal
es ___450,
000 **292,
500
To t
alregul
ars
ale
s P 675,
000 675/
1,
800 P438,750
I
n s
tal
lmentSale
s _ 1
,1
25,
000 1
,1
25/
1,
800 __731,
250
TotalSal
es P1,
800,
000 P1,
170,
000
*P225,
000/
P1,
800,
000xP1
,
170,
000=P1
46,250
**P450,
000/P1
,
800,
000xP1
,1
70,
000=P292,
500
Thea
ll
ocat
ionabovewasbas
edontheas
sumpt
ion
stha
tth
ema r
kupforeac
htypeofs
alei
sth
esa
me.
Nor
mal
l
y,
th
esel
l
ingpri
cesofth
eme r
chan
dis
earenott
hesamef
oreac
htypeofsa
les
.
2.
Amountba
sedonCa
sh Rat
io t
o Tot
al
Typeo
fSa
le Amou
nt Sal
es(
100% ) Sa
les Al
l
oca
tedCos
t
 Cas
hs a
les P 225,
000 P 225,000 225/
1,
500 P 175,500
Cre
ditsal
es 450,
000 375,000* 375/
1,
500 292,
500
I
nst
all
mentSal
es 1,1
25,
000 900,000** 900/
1,
500 __ 702,000
Tot
alSal
es P1
,500,
000 P1
,250,000 P1,1
70,000
*P450,
000/1
20% =P375,
000
**P1,
1
25,
000/1
25% =P900,
000

3.
TypeofSal
e Amount Gr
osspr
ofi
tra
te Cos
tra
tio Al
l
ocate
dCos t
*
Cas
hs a
les P 225,
000 30% 70% P1 57,500
Cre
ditsal
es 450,
000 36% 64% 288,000
I
nst
all
mentSal
es 1,1
25,
000 40% 60% __675, 000
Tot
alSal
es P1
,800,
000 P1,
170,000
*Amountofs
alexc
ostr
ati
o.

Pr
obl
emVI
Thee
ntr
iesa
rer
equ
ire
dun
dert
hepe
riodi
cme
thod:
Reposs
esse
dme rcha
n di
se……………………………………..
..
.
. 68,
400
Deferr
edg r
ossprof
it–20x 4………………………………..
.
..
.
..
.
.
.. 48,
000
Lossonreposs
ess
ion………………………………………………. .. 3,
600
I
nsta
ll
me n
taccountsr
e c
eiv
abl
e–20x4……………………. 1
20,
000
Tor
ecor
dre
pos
ses
sedme
rcha
ndi
se.

Re
pos
ses
sedme r
chandi
se……………………………………..
.
..
. 1
2,
000
Ca
sh,et
c(orvar
iousc
r e
dit
s)
…………………….
.
.
..
.
..
.
.
..
.
..
. 1
2,
000
Tor
ecor
dre
condi
ti
oni
ngc
ost
s

Thel
ossonr epossess
ioni scompu tedasf oll
ows:
Est
imateds el
li
ngpr i
cea f
terrecondi
tioningcost
s.
.
..
.
.
..
.
..
.
.
. P1
08,
000
Les
s:Reconditi
oningc osts
……………………………………… P12,
000
Coststosellanddi spose…………………………………. 6,
000
Norma lprofi
t(20% x1 08,
000) ……………………………. __21
,600 __39,
600
Marketval
u ebeforer econdit
ioningcosts…………………. . P68,
400
Les
s:Unrecoveredcos t
I
nstall
me ntaccoun t
sr e
c ei
vabl
e–20x 4,
u n
pa i
dba l
ance……………………………………. .
. P1
20,
000
Less
:De fe
rredg rosspr ofi
t–20x 4(P120,
000x40% )
.
..
.
. __48,
000 __72,000
Los
sonr epos s
essi
on……………………………. P(3,
600)
Pr
obl
emVII
Thee
ntr
ytore
cor
dth
esa
leoft
hen
ewv
ehi
cl
eun
dert
hepe
riodi
cme
thod:
Tr
ade-inMerchandi
se…………………………………. .
.
..
.
.
..
.
..
.
.
. 840,
000
Ove
r-all
owanceontrade-i
nme r
cha
ndi
se…………………. 360,
000
Cas
h…………………………………………………………………. . 2,
400,
000
I
nst
all
mentaccount
srecei
vabl
e–20x4……………..
..
.
.
..
.
..
. 3,
360,
000
I
nst
all
me n
tsal
es………………………………………. ..
.
..
. 6,
960,
000
Tor
ecor
dins
tal
l
ments
ale
swi
tht
rade
-in.

Al
te
rnat
iv
ely,
theove
r-a
ll
owa
nceont
rade
-inme
rch
andi
sema
yal
sobet
rea
teda
sne
tofi
nst
all
men
tsa
les
,th
een
try
woul
dbeasfoll
ows
:
Tr
ade-inMerc
handi
se…………………………………. .
.
..
.
.
..
.
..
.
.. 840,
000
Cas
h…………………………………………………………………. . 2,
400,
000
I
nst
all
mentacc
ount
srecei
vabl
e–20x4……………..
..
.
..
.
.
..
. 3,
360,
000
Ins
tal
lme
ntsal
es(
netofover
-al
l
owanc
e)…….
..
.
..
.
.
..
.
..
. 6,
600,
000
Tor
ecor
dins
tal
l
ments
ale
swi
tht
rade
-in.

Th
eov
er-a
ll
owa
ncei
scompu
teda
sfol
l
ows
:
Tra
de -i
na l
lowanc
e…………………………………. ..
.
..
.
..
.
.
..
.
..
.
. P1
,
200,
000
Le
ss:Marketval
uebeforerecondit
ion
ingcosts
:
Est
ima t
edresal
epr i
cea f
terrec
on di
ti
oni
ngcos
ts. P1
,
680,000
Les
s:Recondi
ti
on i
ngcosts………………………………. . 420,000
Cost
stosell(
5% xP1 ,
680,000)…………………… 84,
000
Normalprofi
t(20% xP1 ,680,
000)……………..
..
.
.
. __336,00 __840,
00
0 0
Ov
er-a
ll
owa
nce
…………………………………………………… P360,
000

Th
egr
osspr
ofi
tra
teoni
nst
all
men
tsa
lesi
scompu
teda
sfol
l
ows
:
I
nst
all
ments
ale
s…………………………………………………………….
..
.
.
. P6,
960,
000
L
ess:
Ov e
r-a
ll
owanc
e………………………………………………………… ___360,
000
 Adj
ustedIns
tal
lmentSa
les
…………………………………………………… P6,
600,
000
Les
s:Costofins
tal
l
mentsal
es………………………………………………. __3,
920,
000
Grossprof
it………………………………………………………………………. P2,
680,
000
Grossprof
itrat
e(P2,
680,
000/P6,
600,
000)
……………………………….
. 40.
60%

Fu
rth
er,
thee
ntr
ytor
ecor
dth
ere
con
dit
ion
ingc
ost
sisa
sfol
l
ows
:
Tr
ade
-inMer
cha
ndise
…………………………………..
.
.
..
.
..
.
..
.
.. 420,
000
Ca
sh,e
tc(
orva
riou
scr
edi
ts
)…………………….
.
..
.
..
.
.
..
.
.. 420,
000
Tor
ecor
dre
condi
ti
oni
ngc
ost
s.

I
nci
den
tal
l
y,t
her
eal
i
zedgr
osspr
ofi
toni
nst
all
ments
ale
soft
hene
wme
rcha
ndi
sef
ort
heye
ar20x
4isc
ompu
teda
s
f
oll
ows
:
Trade-inmerchandise(marke
tval
uebefor
erecondit
ion
ingcost
s)
……… P 840,
000
Downpa ymen t
…………………………………………………………………… 2,
000,
000
I
nst
a l
lmentcoll
ecti
on( Mar
ch31–De cember31
: P80,
000x1 0mon t
hs) ___800,
000
Tot
a lcol
le
cti
on s
…………………………………………………………………. . P3,
640,
000
Mul
t i
pli
edby: Grossprofi
trat
ein20x4………………………………………. . ___40.
60%
Rea
lizedgrossprofitonins
tal
lmen
tsal
esofnewme rchan
dise………… P1
,
477,
840
Probl
emVI
II
1.Ent
ri
esa
ssu
mi ngt
hatmon
thl
ypa
ymen
tscon
sis
tofP600pl
usi
nte
res
tonth
eun
pai
dba
lan
ce:
Oct.31Ca
sh……………………………………………………………………… 20, 000
Mor
tga
geNot
esRe
cei
vabl
e………………………………………….55,
000
Re
alEs
tat
e………………………………………………………. 60,
000
De
fer
redGr
ossPr
ofi
tonI
nst
all
men
tSa
les…………………. 1
5,000

Nov
.30Ca
sh………………………………………………………………………. 1
,
150
Mor
tga
geNot
esRe
cei
vabl
e………………………………… 600
I
nte
res
tIn
come…………………………………………………. 550
I
nte
res
tRe
cei
ved:
P55,
00a
t12% f
or1mon
th,
orP550

De
c.31Ca
sh………………………………………………………………………… 1
,
144
Mor
tga
geNot
esRe
cei
vabl
e………………………………….
. 600
I
nte
res
tIn
come…………………………………………………… 544
I
nte
res
tre
cei
ved:
P54,
400(
P55,
000-P600)a
t12% 1mon
th,
orP544

31De
fer
redGr
ossPr
ofi
tonI
nst
all
men
tSa
les…………………………….
.4,
240
Re
ali
zedGr
ossPr
ofi
tonI
nst
all
men
tSa
les…………………… 4,
240
Gr
ossPr
ofi
tPe
rce
nta
ge:
15,
000/
75,
000,
or20%
Re
ali
zedGr
ossPr
ofi
t:
20% ofP21
,
200(
col
l
ect
ion
sappl
i
cabl
etopr
inc
ipa
lin1
9X3)orP4,
240

2.En
tri
esa
ssu
min
gmon
thl
ypa
yme
ntsofP600t
hati
ncl
udei
nte
res
tont
heu
npa
idba
lan
ceoft
hec
ont
rac
t:
De
c.31Ca
sh……………………………………………………………………… 20,
000.
00
 Mor
tga
geNot
esRe
cei
vabl
e………………………………………… 55,
000.
00
Re
alEs
tat
e……………………………………………………… 60,
000.
00
De
fer
redGr
ossPr
ofi
tonI
nst
all
men
tSa
les……………….
. 1
5,000.
00

Nov
.30Ca
sh……………………………………………………………………… 600
Mor
tga
geNot
esRe
cei
vabl
e……………………………….
. 50.
00
I
nte
res
tIn
come………………………………………………… 550.
00

I
nte
res
tRece
ive
d:P55,
000a
t12% f
or1mon
thorP550.
Bal
anc
ePa
yme
nt,
P600-P550,
orP50,
is
r
educt
ioni
nprinc
ipal
)

De
c.31Ca
sh………………………………………………………………………. 600.
00
Mor
tga
geNot
esRe
cei
vabl
e………………………………… 50.
50
I
nte
res
tRe
cei
ved……………………………………………… 549.
50

I
nte
res
tRe
cei
ved:
P54,
950.
Bal
anc
ePa
yme
nt,
P600.
00-549.
50,
oP50.
50,
isr
edu
cti
oni
npr
inc
ipa
l.

31De
fer
redGr
ossPr
ofi
tonI
nst
all
men
tSa
les………………………… 4,
020.
1
0
Re
ali
zedGr
ossPr
ofi
tonI
nst
all
men
tSa
les………………… 4,
020.
1
0
Gr
ossPr
ofi
tPe
rce
nta
ge:
15,
000/
75,
000,
or20%
Re
ali
zedGr
ossPr
ofi
t:
20% ofP20,
1
00.
50(
col
l
ect
ion
sappl
i
cabl
etopr
inc
ipa
lin1
9X3)
,orP4,
020.
1
0
ProblemIX
1.
6/ 30x4:
Ca s
h…………………………………………………………………………….25,000
Not
esRe
cei
vabl
e…………………………………………………………… 1
25,
000
Ac
cumu
lat
edDe
pre
cia
tion(
3.
1/
2[2% ofP90,
000]
)…………………… 6,
300
De
pre
cia
tionEx
pen
se(
1/
2[2% ofP90,
000]
)…………………………… 900
L
and…………………………………………………………………… 1
0,000
Bu
il
din
g……………………………………………………………….
. 90,
000
De
fer
redGr
ossPr
ofi
tonS
aleofPr
ope
rty……………………… 57,
200

De
fer
redGr
ossPr
ofi
tonS
aleofPr
ope
rty………………………………… 9,
553
Re
ali
zedGr
ossPr
ofi
tonS
aleofPr
ope
rty……………………….
.
. 9,
553
Amou
ntr
eal
i
zed:
(P25,
000/
150,
000)x57,
200

2.
6/30x
5:Ca
sh…………………………………………………………………………… 30,000
Not
esRe
cei
vabl
e…………………………………………………….
. 30,
000
 De
fer
redGr ossPr
ofi
tonS al
eofPrope
rty……………………………….11,
440
Re
a l
i
ze dGrossProf
itonSal
eofProper
ty………………………… 1
1,
440
Amou ntr
eali
zed(P30,
000/P1
50,000)x57,
200
6/
30/
x6Ca
sh…………………………………………………………………………. 50,000
Not
esRe
cei
vabl
e…………………………………………………… 50,
000
De
fer
redGr ossProf
itonSaleofProper
ty……………………………… 1 9,
067
Re
a l
i
ze dGr os
sProfi
tonS al
eofPrope
rty………………………… 1
9,
067
Amou ntReal
ize
d:(P50,
000/ P1
50,
000)X57,
200
6/
30/
x7Ca
sh…………………………………………………………………………. . 1
5,000
Not
esRe
cei
vabl
e…………………………………………………… 1
5,000
De
fer
redGrossPr
ofi
tonS al
eofProper
ty………………………………. 5,
720
Re
ali
zedGrossProf
itonSal
eofPropert
y………………………… 5,
720
AmountReal
ize
d:(P15,
000/P1
50,000)X57,
200
Pr
obl
emX
I
nst
all
mentCont
ract
sRece
iva
ble…………………………………………. 200,
000
I
nst
all
mentSal
es……………………………………………………… 200,
000

Cos
tofI
nst
all
men
tSa
les…………………………………………………….
. 1
20,
000
Me
rch
andi
seI
nve
ntor
y……………………………………………… 1
20,
000

Cos
tofS
ale
s:60% ofP200,
000
I
nst
all
men
tSa
les……………………………………………………………….
. 200,
000
Cos
tofI
nst
all
men
tSa
les…………………………………………… 1
20,
000
De
fer
redGr
ossPr
ofi
tonI
nst
all
men
tSa
les……………………… 60,
000

Ca
sh……………………………………………………………………………….1
24,
000
I
nst
all
men
tonCon
tra
ctsRe
cei
vabl
e–20x
4…………………….
.
. 30,
000
I
nst
all
men
tonCon
tra
ctsRe
cei
vabl
e–20x
5…………………….
.
. 34,
000
I
nst
all
men
tonCon
tra
ctsRe
cei
vabl
e–20x
6…………………….
.
. 60,
000

De
fer
redGr
ossPr
ofi
tonI
nst
all
men
tSa
les-20x
4…………………………… 1
3,800
De
fer
redGr
ossPr
ofi
tonI
nst
all
men
tSa
les
-20x
5………………………….
.
. 1
4,280
De
fer
redGr
ossPr
ofi
tonI
nst
all
men
tSa
les-20x
6………………………….
.
. 24,
000
Re
ali
zedGr
ossPr
ofi
tonI
nst
all
men
tSa
les……………………….
………….
. 52,
080
Re
ali
zedGr
ossPr
ofi
t
20x
4:46% ofP30,
000orP1
3,800
20x
5:42% ofP34,
000orP1
4,280
 20x
6:40% ofP60,
000orP24,
000

Probl
emXI
1.
Ca l
cul
ati
onofg
ros
spr
ofi
tpe
rce
nta
geoni
nst
all
men
tsa
les
20x
6:P88,
000g
ros
spr
ofi
toni
nst
all
men
tsa
les
,20x
6,/
P320,
000i
nst
all
men
t
s
ale
s20x
6………………………………………………………………………………….27.
5%
20x
5:P45,
000de
fer
redg
ros
spr
ofi
t,
20x
5,/
P150,
000i
nst
all
men
tac
cou
nts
r
ece
iva
ble20x
5………………………………………………………………………….
. 30%
20x
4:P9,
600de
fer
redg
ros
spr
ofi
t,
20x
4,/
30,
000i
nst
all
men
tac
cou
nts
r
ece
iva
ble20x
4………………………………………………………………………….
. 32%

2.
WW EQUI
PMENT,
Inc
.
Ba
lan
ceS
hee
t
De
cembe
r31
,20x
6
As
set
s
Ca
sh………………………………………………………………………………….
.
.
..
.
..
.
.
..
.
..
.
.
..
. P27,
500
I
nst
all
men
tAc
cou
ntsRe
cei
vabl
e20x
6………………………….
.P55,
000
20x
5………………………….
.12,
000
20x
4………………………….
. 3,
000 70,
000
Ac
cou
ntsr
ece
iva
ble…………………………………………………………………………. 1
7,000
I
nve
ntor
y……………………………………………………………………………………….
.
.
. 60,
000
Ot
herAs
set
s…………………………………………………………………………………….
.
. 40,
000
Tot
alAs
set
s……………………………………………………………………………………… P21
4,500

L
iabi
l
iti
es
Ac
cou
ntspa
yabl
e……………………………………………………………… P40,
000
De
fer
redGr
ossPr
ofi
t 20x
6……………………………P1
5,1
25
20x
5…………………………… 3,
600
20x
4…………………………… 960 1
9,
685
Tot
alL
iabi
l
it
ie
s P 59,
685

S
toc
khol
der
s’Equi
ty
Ca
pit
alS
toc
k…………………………………………………………………….
.P1
00,
000
Re
tai
nedEa
rni
ngs……………………………………………….
.P68,
400
Ba
lan
ce,
Jan
.1,
20x
6………………………………………. 1
3,585
Ba
lan
ce,
Dec
.31
,20x
6……………………………………………………. 54,
1
85
Tot
alS
toc
khol
der
’sEqu
ity……………………………………………………… P1
54,
815
Tot
alL
iabi
l
it
ie
san
dSt
ock
hol
der
’sEqu
ity……………………………………. P21
4,500
WW EQUI
PMENT,
Inc
.
I
ncomeS
tat
eme
nt
ForYe
arEn
dedDe
cembe
r31
,20x
6

I
nst
all
men
tSa
les Regu
lar Tot
al
Sal
es
Sal
es………………………………………………………. .
.
..
.
.
..
.
.. P320,
000 P125,
000 P445,
000
Costofgoodss old:
MerchandiseInve
n t
ory,Jan.1………………P52, 000
Purchase
s…………………………. ..
.
..
..
.
..
.
..
.
.
.. 350,000
MerchandiseAvail
ableforsale.
..
.
..
.
..
.
..
.
.
..
. 402, 000
Les
s:Me r
ch andi
seInv.Dec.31………… 60,000 232,
000 11
0,000 342,
000
GrossProfi
t………………………………………………………. . P88,
000 P1
5,000 P1
03,000
Les
s:DeferredGr ossProf
iton19X34………………………… 15,
1
25 15,
1
25
Real
izedGr ossProfi
tonc urren
tye ar’
ssal
es………………. P78,
875 P1
5,000 P87,
875
Add:real
izedg rossprofi
tonpr i
orye ars
’sal
eson
I
nstal
lmentba si
s(seegrossprofi
ts c
hedule
)………………. 50,
040
TotalReal
izedGr ossProfi
t……………………………………. P1
37,
915
Operati
ngEx pen se
s…………………………………………. .
. 1
51,
500
NetLoss…………………………………………………………. . P13,
585

WW EQUI
PMENT,
Inc
.
An
alys
isofGr
ossPr
ofi
tonI
nst
all
men
tSa
les
S
che
dul
etoAc
compa
nyI
ncomeS
tat
eme
nt
ForYe
arEn
dedDe
cembe
r31
,20x
6

De
fer
redGr
osspr
ofi
toni
nst
all
men
tsa
les
,20x
6

I
nst
all
men
tcon
tra
ctsr
ece
iva
ble
,P320,
000l
essc
oll
ect
ion
sP265,
000

OrP55,
000;
P55,
000x27.
5% …………………………………………………………P1
5,1
25

Re
ali
zedGr
ossPr
ofi
t:

20x
6 20x
5 20x
4

Col
l
ect
ion
sonI
nst
all
men
tCon
tra
ctsRe
cei
vabl
e……….
.
.P265,
000 P1
38,
000P27,
000

I
nst
all
men
tsa
lesg
ros
spr
ofi
tpe
rce
nta
ge………………….
. 27.
5% 30% 32%

Re
ali
zedGr
ossPr
ofi
t…………………………………………….
.P72,
875 P41
,
400P8,
640

I
nst
all
men
tSa
les…………………………………………………… 320,
000

Cos
tofI
nst
all
men
tSa
les…………………………………………. 232,
000

De
fer
redGr
osspr
ofi
t……………………………………………… 88,
000
 De
fer
redGr
ossPr
ofi
t,
20x
6…………………………….
.
.
..
.
..
.
.
..
.
.. 72,
875

De
fer
redGr
ossPr
ofi
t,
20x
5…………………………….
.
.
..
.
..
.
.
..
.
.. 41
,
400

De
fer
redGr
ossPr
ofi
t,
20x
4…………………………….
.
.
..
.
..
.
.
..
.
.. 8,
640

Re
ali
zedGr
ossPr
ofi
tonI
nst
all
men
tsa
les
……………1
22,
91
5

I
ncomeS
umma
ry………………………………………………… 1
70,
000

S
hipme
ntonI
nst
all
men
tofS
ale
s……………………………… 232,
000

Me
rch
andi
seI
nve
ntor
y,J
an.
1,20x
6………………. 52,
000

Pu
rch
ase
s……………………………………………… 350,
000

Me
rch
andi
seI
nve
ntor
y,De
c.31
,20x
6…………………….
. 60,
000

I
ncomeS
umma
ry…………………………………… 60,
000

S
ale
s………………………………………………………………. 1
25,
000

I
ncomeS
umma
ry……………………………………. 1
25,
000

Re
ali
zedGr
ossPr
ofi
tonI
nst
all
men
tSa
les
……….
.
……….
.
. 1
22,
91
5

I
ncomeS
umma
ry……………………………………. 1
22,
91
5

I
ncomeS
umma
ry……………………………………………… 1
51,
500

Ope
rat
ingEx
pen
ses……………………………….
.
. 1
51,
500

Re
tai
nedEa
rni
ngs…………………………………………….
. 1
3,585

I
ncomeS
umma
ry………………………………….
.
. 1
3,585

Probl
emXII
1
.Ca l
cul
ati
onofgrosspr
ofi
tperc
ent
ageonins
tal
l
mentsal
es
20x6:P1
90,000g r
osspr
ofi
tonin
sta
ll
ments
ale
s,20x6,
/P500,
000i
nst
all
men
t
s
ale
s20x
6……………………………………………………………………………………38%
20x
5:P96,
000de
fer
redg
ros
spr
ofi
t,
20x
5,/
P240,
000i
nst
all
men
t
a
ccou
ntsr
ece
iva
ble20x
5……………………………………………………………….
40%
20x
4:P22,
500de
fer
redg
ros
spr
ofi
t,
20x
4,/
50,
000i
nst
all
men
t
a
ccou
ntsr
ece
iva
ble20x
4……………………………………………………………….
45%

2.
De
fer
redGr
ossPr
ofi
t,
20x
6……………………………… 1
,
900
 De
fer
redGr
osspr
ofi
t,
20x
5……………………………… 4,
000
De
fer
redGr
ossPr
ofi
t,
20x
4……………………………… 3,
600
L
ossonRe
pos
ses
si
ons
………………………….
. 9,
500
Ca
nce
ll
ati
onofde
fer
redg
ros
spr
ofi
t,
ba
lan
cesu
ponr
epos
ses
si
ons
:
20x
6:38% ofP5,
000,
orP1
,
900
20x
5:40% ofP1
0,000,
orP4,
000
20x
4:45% ofP8,
000,
orP3,
600

GGS
ALESCORPORATI
ON
I
ncomeS
tat
eme
nt
ForYe
arEn
dedDe
cembe
r31
,20x
6

I
nst
all
ment Re
gul
arS
ale
s Tot
al
Sal
es
Sal
es………………………………………………………. .
..
.
..
..
.
.
. P500,
000 P1
92,
000 P692,
000
Costofgoodss old:
MerchandiseInve
n t
ory,Jan.1…………… P30, 000
Purcha
s e
s…………………………. .
..
.
..
.
..
.
.
..
.
..
. 445, 000
Reposs
e s
sedMe rchandise………………. . 10,
000
MerchandiseAvail
ableforsa l
e..
.
..
.
..
.
..
.
.
..
.
. 495, 000
Less
:Me r
ch andi
seInv.Dec.31………… 35,000 310,
000 150,
000 460,000
GrossProfi
t………………………………………………………. . P1
90,
000 P42,
000 P1
03,000
Les
s:De f
err
e dGr ossProf
iton20x 6sal
es(seesche
du l
e) 32,300 32,
300
Real
izedGr ossProfi
tonc urrentyear’
ssales………………. P1
57,
700 P42,
000 P1
99,700
Add:real
izedg rossprofi
tonpr ioryears’
saleson
I
nstal
lmentba si
s(seegrossprofitsche
dule)………………. 1
00,650
P300,350
De
duc
tlos
sonr
epos
ses
si
on…………………………………. 3,500
Tota
lReali
zedGrossPr
ofi
t……………………………………. P296,
850
Operat
ingExpe
nses…………………………………………… 300,
000
NetLos
s…………………………………………………………. . P 3,150

Ana
lys
isofGr
ossPr
ofi
tonI
nst
all
mentS
ale
s

S
che
dul
etoAc
compa
nyI
ncomeS
tat
eme
nt

ForYe
arEnde
dDe
cembe
r31
,20x
6

De
fer
redg
ros
spr
ofi
tonI
nst
all
men
tsa
les–be
for
ede
fau
lts
,19X8:
I
nst
all
men
tcon
tra
ctsr
ece
iva
ble
,P500,
00,
les
scol
l
ect
ion
s,P41
5,000,
or
P85,
000;
P85,
000x38% ………………………………………………………. P32,
300
Re
ali
zedGr
ossPr
ofi
t:
20x
6 20x
5 20x
4
Col
l
ect
ion
sofI
nst
all
men
tcon
tra
ctsr
ece
iva
ble
..P41
5,000 P21
0,000 P37,
000
I
nst
all
men
tsa
lesg
ros
spr
ofi
tpe
rce
nta
ge……….
. 38% 40% 45%
Re
ali
zedg
ros
spr
ofi
t………………………………….
.
P157,
700P84,
000 P1
6,650

GGS
ALESCORPORATI
ON
Ba
lanc
eShe
et
De
cembe
r31
,20x
6

As
set
s
Ca
sh………………………………………………………………………………….
.
. P25,
000
I
nst
all
men
tAc
cou
ntsRe
cei
vabl
e20x
6…………………P80,
000
20x
5………………… 20,
000
20x
4………………… 5,
000 1
05,
000
Ac
cou
ntsr
ece
iva
ble………………………………………………………………….
. 40,
000
I
nve
ntor
y…………………………………………………………………………………. 35,
000
Ot
herAs
set
s……………………………………………………………………………… 52,
000
Tot
alAs
set
s……………………………………………………………………………….
P 257,
000

L
iabi
l
it
ie
s
Ac
cou
ntspa
yabl
e……………………………………………………. P75,
000
De
fer
redGr
ossPr
ofi
t20x
6……………………………….
P30,
400
20x
5………………………………. 8,
000
20x
4………………………………. 2,
250 40,
650
Tot
alL
iabi
l
iti
es P 1
15,
650

S
toc
khol
der
s’Equ
ity
Ca
pit
alS
toc
k…………………………………………………………. P1
00,
000
Re
tai
nedEa
rni
ngs……………………………………….
P44,
500
Ba
lan
ce,
Jan
.1,
20x
6……………………………… 3,
1
50
Ba
lan
ce,
Dec
.31
,20x
6…………………………… 41
,
350
Tot
alS
toc
khol
der
’sEqu
ity…………………………………………. 1
41,
350
 Tot
alL
iabi
l
iti
esa
ndS
toc
khol
der
’sEqu
ity……………………….
. P257,
000
4.I
nst
all
men
tSa
les……………………………………………………………….
.500,
000
Cos
tofI
nst
all
men
tSa
les……………………………………………….
. 31
0,000
De
fer
redGr
ossPr
ofi
t,
20x
6…………………………………………….
. 1
90,
000

De
fer
redGr
ossPr
ofi
t,
20x
6…………………………………………………… 1
57,
500
De
fer
redGr
ossPr
ofi
t,
20x
5…………………………………………………… 84,
000
De
fer
redGr
ossPr
ofi
t,
20x
4…………………………………………………… 1
6,650
Re
ali
zedGr
ossPr
ofi
tonI
nst
all
men
tSa
les
…………………………… 258,
350

I
ncomeS
umma
ry……………………………………………………………… 1
85,
000
S
hipme
ntonI
nst
all
men
tSa
les……………………………………………… 31
0,000
Me
rch
andi
seI
nv,
Jan
uar
y1,
20x
6……………………………………. 30,
000
Pu
rch
ase
s…………………………………………………………………. 455,
000
Re
pos
ses
sedMe
rch
andi
se…………………………………………….
. 1
0,000

Me
rch
andi
seI
nv,
Dec
embe
r31
,20x
6…….
.
………………………………. 35,
000
I
ncomeS
umma
ry……………………………………………………….
. 35,
000

S
ale
s…………………………………………………………………………….
.
.
. 1
92,
000
I
ncomeS
umma
ry………………………………………………………… 1
92,
000

Re
ali
zedGr
ossPr
ofi
tonI
nst
all
men
tSa
les
………………………………….
. 258,
350
I
ncomeS
umma
ry……………………………………………………….
. 258,
350

I
ncomeS
umma
ry……………………………………………………………… 3,
500
L
ossonRe
pos
ses
si
on……………………………………………………. 3,
500

I
ncomeS
umma
ry……………………………………………………………… 300,
000
Ope
rat
ingEx
pen
ses…………………………………………………….
. 300,
000

Re
tai
nedEa
rni
ngs……………………………………………………………… 3,
1
50
I
ncomeS
umma
ry…………………………………………………………. 3,
1
50
Pr
obl
emXI
II
1
.
De
fer
redgrosspr
ofi
t–20x4……….
……………………………………. 8, 407.
00
De
fer
redgrosspr
ofi
t–20x5……….
……………………………………. 93,438.
80
De
fer
redgrosspr
ofi
t–20x6……….
……………………………………. 71,
006.70
Re
a l
i
zedGrossPr
ofi
tonI
nst
all
men
tSa
les(
20x
4–20x6)….
. 1
72,
852.
50

Compu
tat
ionofGPr
ate
s:
20x
4:P247,
000/
P380,
000=65% ,
cos
tra
te;
GPr
ate=1
00% -65% =35%
20x
5:P285,
1
20/
P432,
000=66% ,
cos
tra
te;
GPr
ate=1
00% -66% =34%
20x
6:P379,
260/
P602,
000=63% ,
cos
tra
te;
GPr
ate=1
00% -63% =37%

Ca
lcu
lat
ionofc
oll
ect
ion
sin20x
6:
20x
4:Be
gin
nin
gba
lan
ce P24,
020
20x
5:P344,
460(
beg
inn
ingba
lan
ce)–P67,
440(
endi
ngba
lan
ce)–
P2,
200(
wri
te
-of
fsonde
fau
lt) 274,
820
20x
6:P602,
000(
sal
es)–P41
0,090(
endi
ngba
lan
ce) 1
91,
91
0

Ca
lcu
lat
ionofr
eal
i
zedg
ros
spr
ofi
t:
20x
4:35% xP24,
020 P 8,
407.
00
20x
5:34% xP274,
820 93,
438.
80
20x
6;37% xP1
91,
91
0 71
,
006.
70
Tot
al P1
72,
852.
50

2.De
fer
redg
ros
spr
ofi
t20x
5……………………………………………………… 748.
00
I
nve
ntor
yofRe
pos
ses
sedMe
rch
andi
se………………………………. 748.
00
Toreduceby20x 5def
erre
dg ros
sprofi
tr e
lat
edtode fault
edc ont
ractandrequir
ing
canc
ell
ati
on,34% ofP2,200(P5,
400salespri
ce-P3,
200c ol
lec
ti
onstoda t
e);i
nve
ntory
nowreport
eda tP2,
200(
bala
nceofi
nst
all
mentcont
rac
t),
les
sP748orP1 ,452.

L
ossonr
epos
ses
si
on…………………………………………………………….
. 381
.
00
I
nve
ntor
yofr
epos
ses
sedme
rch
andi
se……………………………….
. 381
.
00
Tor e
duceinve
ntoryto”mark
et”asf
oll
ows:torea
lizeag r
ossprof
itof37% onar esal
e
es
timate
da tP1
,700,t
herepos
sess
edmerchandi
seshoul
dber e
porte
da taval
ueof63% of
P1
,700,orP1,
071;t
heinv
ent
orythenr
equi
r e
safurt
he rwr
it
e-downofP381(P1
,452–P1
,071
)

Reposse
sse
dme rchandi
secoul
dber e
cordeda ti
tsresa
levaluele
sstheu su
a lgrosspr ofi
tma r
ginons a
les
.
Recordi
ngtheme r
chandi
seatP1,
452willres
ulti
nthereal
iza
tionofle
ssthant henorma lprofi
tma r
ginonthe
re
sa l
eofthegoodsinthesu
bsequen
tpe ri
od.i
fexpe
nsesoftheres
aleexc
e e
dP248( P1
,700–P1 ,
452),t
helat
er
peri
odwou ldact
uall
yh a
vetoabsorbal os
sa sares
ultofsuchval
uat
ion.Recordi
ngt heg oodsatresa
leva
lue
 re
du c
edbythec
ompany’
sus
ualprofi
tmargi
nonsal
esi
srec
ommen
ded,f
ors
uchpr
act
ic
ewi
l
lch
arg
eth
ene
xt
per
iodwi
thn
omor et
hant
heuti
l
ityoftheg
oodsc
arr
iedf
orwa
rd.

Probl
emXI
V–HHI nst
ruments
1. I
nst
all
mentContrac
tsRece
ivable……………………………………. 1 ,
600.
00
Me r
chandi
seInv
entory(Pi
ano)……………………………… 1
,
000.
00
De f
erre
dGr os
sProfitonI
nstal
l
mentS
ale
s………………… 600.
00
Ca
sh………………………………………………………. .
..
.
.
..
.
..
.
.
..
.
..
.
.
..
.
..
. 1
60.
00
I
nst
all
men
tCon
tra
ctsRe
cei
vabl
e…………………………… 1
60.
00
2. Ca
sh…………………………………………………………. .
.
.
..
.
..
.
.
..
.
..
.
.
..
.
..
. 1
60.
00
I
nte
restI
ncome…………………………………………………… 1
4.40
I
nst
all
mentCont
rac
tsRe
cei
vabl
e……………………………. 1
45.60
Ca
sh……………………………………………………………. .
.
.
..
.
..
.
.
..
.
..
.
.
..
.
. 1
60.
00
I
nte
restI
ncome……………………………………………………. 1
1.
47
I
nst
all
mentCont
rac
tsRe
cei
vabl
e……………………………… 148.
53
3. De
fer
redGrossProf
itonIns
tal
lmentofS ale
s…………………………. . 225.
45
Re
ali
zedGr os
sProfi
tonIn s
tall
me ntofS a
les………………… 225.
45
GrossProf
itPer
centage:37.
5% ( P600/ P1
,600)
Real
izedGrossProfi
tfor20x 4:37.5% of601 .
1
9
(
sumofpa ymentsonin s
tal
lme n
tc ont
ract)
4. Merch
andiseInventory(piano)…………………………………………. ..560.00
Def
erredGr ossProfi
tonI nstal
l
me ntofSal
es……………………. .
..
.
.
..
.
..374.55
Los
sonRe possessi
ons………………………………………………………. 64. 36
I
nstall
me ntContractsRece
ivabl
e……………………………… 998.
81
De ferredGr ossprofi
tcancell
eduponrepos
ses
si
on:
37.5% ofP998. 81(balanc
einins
tal
l
me n
tcontr
acts
rec
e i
vableaccount)orP374.55
Probl
emXI V–BigBear
20x4:
I
nstal
l
me n
tr e
cei
vabl
es 250,
000
I
nve
ntory 1
50,000
Def
erredgr
ossprof
it 1
00,000
Ca
sh 80,
000
I
nst
all
men
tre
cei
vabl
es 80,
000
20x
5:
Cas
h 1
20,
000
I
nst
all
men
tre
cei
vabl
es 120,
000
De
fer
redgros
sprof
it 50,
000
Re
ali
zedgr
ossprof
it 50,
000
20x
6:
Cas
h 50,
000
I
nst
all
men
tre
cei
vabl
es 50,
000
I
nst
all
mentrec
eiv
abl
es 300,
000
Inv
ent
ory 21
0,000
Defer
redgros
sprof
it 90,
000
Ca
sh 1
35,
000
I
nst
all
men
tre
cei
vabl
es 135,
000
De
fer
redgros
sprof
it 40,
500
Re
ali
zedgr
ossprof
it 40,
500
Gr
osspr
ofi
tdef
err
edatsa
le=30% x  
P300,
000=P90,000.
Gr
osspr
ofi
tea
rnedatc
oll
ect
ion=(
P135,
000/P300,
000) 
xP90,
000=P40,
500
(
Orc
ashc
oll
ect
ed 
xGP% =P1
35,
000 
x30% =P40,
500)
Probl
emXV–Ta ppa nI
ndustria l
(1
)Reasona
blyas
sured-a c
c ru
a lba si
sshoul
dbeu
sed:
ful
lgr
osspr
ofi
tre
cog
nize
dint
heye
aroft
hes
ale
.
Det
ermi
nat
ionofsell
ingpr i
ce:
PV
n=R (PVAFn/i)TableIV
PV
n=P 187,500x4. 3553n=6,i=10%
PV
n=P 816,619( rounded)
Grosspr ofi
tonsal
e:
 S ales P816,619
 Cos tofsal
es 637,500
 Gr ossprofi
t P1
79,119
In
t erestr
evenu
e--4mon
ths
:P81
6,61
9x10% x4/
12= _ 27, 221
Totalincomefor20x5=P1
79,
11
9+P27,221= P206,340
(
2)Norea
s onableass
urance–assu
met h
eu seofi
nstal
l
men
tsa
lesme
thod
In
sta
llmen tsal
e:Gros
sprof
it(
P179,
11
9/P816,
619)= 22% r ounded
Grossprofitear
n e
din20x5(P0x22% ) P 0
In
ter
e streven
ue 27,221
Tota
li nc
omef or20x5 P27, 221
Mul
ti
pleChoi
ceProbl
ems
1.c
20x4:P1
,
200,
000x30% =P360,
000
20x5:
P1,
400,
000x40% = 560,
000 P920,
000
2.d–[
P225,
000+(
P120,
000/
40% )
]
3.b (
P36,
000÷24% )+( P198,000÷30% )=P810,
000.
4.d
I
nst
all
mentAc
cou
ntsRecei
va bl
e,De
cembe
r31
,20x5:
DGP,
12/
31/
20x
5/GP%
20x4Sal
es:
P120,000/30% P 400,
000
20x5Sa
les
:P440,000/40% 1,
1
00,
000
P1
,
500,
000
5.b–[
(P1
,
000,
000–P200,
000)x(
P1,
000,
000–P600,
000)
/P1
,
000,
000=P320,
000
6.b [
(P1
,
400,
000–P980,
000)÷P1
,
400,
000]xP840,
000=P252,
000.
7.c P1
,
200,
000–P720,
000=P480,
000grosspr
ofi
t(40% g r
osspr
ofi
tra
te)
P480,
000–(P288,
000×.4)=P364,800.
8.c P300,000+P50,000=P350,000
P350,
000–P245,000=P105,
000g r
osspr
ofi
t(30% g
rosspr
ofi
tra
te)
(P300,
000–P1 00,
000)x30% =P60,000.
9.c P1
,
800,
000–P1
,
080,000=P720,
000(
40% g r
osspr
ofi
tra
te)
P720,
000–(P825,
000x40% )=P390,
000.
1
0.a–assu
metheuseofins
tal
lmen
tsale
sme th
od.
Itsh
ou l
dbenote
dt h
ati
fth
ecol
l
ect
abi
l
it
yish
igh
lyu
nce
rta
inor
ex
tre
melyu
ncert
ain
, t
heuseofcos
trecov
erymet
hodispre
fer
able
.
P8,
000x(P30,000–P24,000)/P30,
000=P1,600
1
1.b–
20x
4:P500,
000x30% =P1
50,000
20x
5:P600,
000x40% = 240,000 P390,
000
1
2.d–s amewi t
hNo. 4
1
3.b
I
nsta
llmentAccountsRecei
vabl
e,en
dof20x4 P320,
000
x:Grossprofi
trat
e( 662/ 3/1662/3) _____40%
Defe
r r
edGr ossProfi
t,endof20x4 P1
28,
000
1
4.b
20x4:P150,000–( P568,620x1 0% )=P93,
138.
20x5:(P568,620–P93, 138)x10% =P47,548.
1
5.d
Re
ali
zedGrossPr
ofi
tonIns
tal
l
men
tS al
esi
n20x6:
20x4sal
es:
P10,
000x22% P 2,
200
20x5sal
es:
P50,
000x25% 1
2,500
20x6sal
es:
P45,
000xP28,200/(P28,
200+P91
,
800) 1
0,575
P 25,
275
Re
a l
izedGr os
sProf
itonSalesin20x 5 P1 0,
500
Le
ss:Reali
zedGrossProfi
tin20x 5for20x5sal
es:
(P20,
000x25% ) 5,
000
Re
a l
izedGr os
sProf
iti
n20x 5f or20x4s a
les P 5,
500
Di
videdby: Col
le
cti
onsin20x 5for20x 4sal
es P 25,
000
GrossProfi
t% for20x 4sale
s 22%
1
6.a
I
nst
all
mentSal
esMe t
hod:
20x3S al
es:
P240,000x25/ 1
25P 48,
000
20x4S al
es:
P180,
000x28/ 128 39,375
Real
i
ze dGrossPr
ofitonIns
tal
l
men
tSale
sP87,
375
Cos
tRecov
eryMe t
hod:
20x3Cos t
:P480,
000/1 .25 P384,
000
Les
s:Coll
ect
ionsi
n20x 3 140,
000
Coll
ecti
onsi
n20x 4 240,
000
Unrecov
eredCost
, 1
2/31/
20x4 P 4,000
Underthec os
trecov
eryme thod,noinc omeisrec
og ni
ze donas aleunti
lthecostoft heitems oldi sre
c overed
thr
oughc as
hrecei
pts
.Allcas
hr ecei
pts,bothint
ere
sta ndpr i
ncipalport
ions,ar
ea ppl
ie dfir
s ttot hecostoft he
i
temssold.Then,al
lsubse
que ntrece
iptsa rere
porteda sr e
venue.Becauseallcost
sha v
ebe enr ecov
ere d,the
rec
ogni
ze drev
enueaftert
hec os
trecoveryrepres
entsincome(inte
r e
standr ea
li
zedg rosspr ofit
).Thismet hodis
use
donlywhe ntheci
rcumst
anc e
ssurroundingasal
ea res ouncert
ainthatearl
ie
rr ec
og nit
ioni si
mpos si
ble.
1
7.a
(
1) Ga
inorL ossonr epos
sessi
on:
Est
imatedse l
li
ngprice P1
,
700
Les
s:Norma lprof
it(37% xP1,700) 629
Marketval
ueofr eposse
ssedmerchandi
se P1
,
071
Les
s:Un r
ecoveredCost:
Un paidbalance–20x 3 P2,
200
Less:DGP–x 3(P2,
200x 34% ) 748 1
,
452
Los
sonr epossess
ion P(381
)
(
2)Re
ali
zedgros
sprofitonins
tal
l
me ntsal
es:
20x2Sal
es:
(P24,020–P0)x35% P 8, 407.
0
20x3Sal
es:
(P344,460–P67, 440–P2, 200)x34% 93,
438.
8
20x4Sal
es:(
P602,000–P41 0,090)x37% 71
,
006.
7
Rea
li
zedgrossprofi
tonins
tall
mentsal
es P1
72,
852.
5
1
8.c
De
fer
redGrossPr
ofi
t,end( 1
2/31
2/20x
4:I
AR,
endof2004xGP% )
20x
2S al
es:
P0
20x
3S al
es:
(P67,440x34% . 22,929.
6
20x
4S al
es:
(P410,090x37% ) 151
,
733.3
P1
74,662.
9
1
9.a–r
efe
rtoNo. 16fordi
scus
si
on.
Cost,
J a
nuary1,20x4 P 60,
000
Less
:Coll
ecti
onsinc
ludi
ngin
ter
est–20x
4 32,
170
Unrecover
edCos t
,Dece
mber31,20x
4 P 27,
830

20.b (
P300,000÷P750,
000)xP250,
000=P100,
000
[
(P270,
000÷P900,
000)xP300,
000]+P100,
000=P1
90,
000.
21
.d [
P5,
600x(
1–.
40)
]–(
P2,
1
00–P1
40)=P1
,
400.
22.d P8,400–P5,
880=P2,
520
(P3,
000–P300)–P2,
520=P1
80g
ain
.
23.b P24,
000–P7,200=P1
6,800
P16,
800–P1
3,500=P
3,300los
s.
24.
d (
P2,
000,
000–P1
,
500,
000)÷P2,
000,
000=25%
25.a (
P800,
000x.
25)–P90,
000=P1
10,
000,
26.
d P700,
000x.
25=P1
75,
000;
P500,
000x.
25=P1
25,
000.
27.
a (
P3,
000,
000–P2,
1
00,
000)÷P3,
000,
000=30% .

28.
d (
P1,
200,
000.
30)–P
120,
000=P240,
000.

29.
a P1,
050,
000.
30=P315,
000
P900,
000–[(
P1,
200,
000+P1,
050,
000).
30]=P225,
000.
30.
c (
P3,600,000–P2,
400,
000)÷P3,
600,
000=331 /
3%
(
P3,
600, 000.
20)+[(
3,
600,
000.80)4/
12)
]=P1,
680,
000
P1,
680,000331/3% =P560,
000.

31.b [ (
P3,
600,000. 20)+( P3,600,000. 80x8/1
2]–P2,
400,
000=P240,000.
32.a P0.
33.c
Sa
le:I
nst
all
mentrecei
vabl es 4,500,000
I
nvent
or y 3,600,000
Defer
redg r osspr o
fit 900,000
Payment
:Cash 500,
000
I
nstal
lme n tre
c ei
vables 500,000
Defe
rredg ros sprofit 1
00,000
Real
izedg ros
spr ofit 100,000
Bala
nceSheet
:
Ins
tal
lme ntre cei
vables(4,
500,000–500,
000) P4,000, 000
De f
erredg rosspr ofi
t(900,000–100,
000) 800, 000
Ins
tal
lme ntre cei
vables(net
) P3,200,000
34.
b
12/
15/
x5Ca sh[(P4,
500,000–P500, 000)
/2=P2,000,
000] 2,
000,
000
Inst
all
mentr e
cei
vabl
es 2,
000,000
Def
erredgrossprofi
t[P2,
000,
000x(900/4,
500)
] 400,
000
Reali
zedg ros
sprofi
t 400,
000
Bal
anceshe
et:
Def
erre
dg r
ossprofi
t:P800,000 400,000=P400,000
Re
a l
i
zedgrossprof
itofP400,000woul
dbereport
edint
hei
ncomes
tat
emen
t.
35.b–re
fertoNo. 1
6discus
sion.
Cost
,J anu
ary1,20x4……………………………………………………………. P 500,000
Les
s:Colle
cti
onsinc
ludingint
eres
t–20x 4……………………….
P241,
269
Col
lec
ti
onsincl
u din
ginte
rest–20x5……………………… 241,
269 482,
538
Unrecover
edCos t
,Dece mber31,
20x5………………………………………. P 17,
462
36.c
Tra
de -i
na l
lowance P43,
200
Le
ss:MVo ftrade-i
na l
l
owa nce
:
Es
ti
ma tedres
alepriceaft
err
eco
ndi
ti
oni
ngc
ost
s P36,
000
Le
ss:Recondi
ti
oningcost
s 1,
800
Nor
ma lprof
it(1
5% xP36,
000) 5,
400 28,
800
Over
-a l
lowance P1
4,400
I
nsta
llmentsal
es P1
22,400
Les
s:Over-al
lowance 14,
400
Adj
ustedInst
all
mentSal
es P1
08,
000
Les
s:CostofInstal
l
me n
tSal
es 86,400
Grossprofi
t P21,600
Grossprofi
trate
:P21,
600/
P108,
000 20%
Re
ali
zedg
rossprof
it:
Downpa yment P 7,
200
Trade-i
n(atma r
ketv
alu
e) 28,
800
I
nstal
l
me ntcol
l
ecti
ons
:
 (
P108,000–P28,800–P7,
200)/1
0mos
.X3mos
. 21
,
600
Tota
lcoll
ecti
onsin2008 P57,
600
x:Gros
sprofi
tr a
te 20%
Real
i
zedg rossprof
it P1
1,
520
37.a- Costsnotyetrec
overe
d.
38.c 
Cost
,20x4 P30,000
20x4costrecov
ery (20,
000)
Remai
nin
gc ost,
12/
31/x4 P1
0,000
20x5col
lec
tion 1
5,000
Gros
sprofi
t–20x 5 P 5,000
39.d 
Cost P30,
000
20x4costr
e c
over
y (20,000)
20x5costr
e c
over
y (10,
000)
Remai
nin
gc ost 0
Th
een
tir
eP20,
000pa
yme
ntr
ece
ive
din20x
6isr
ecog
nize
dasg
ros
spr
ofi
t.
40.
d 
S
ale
: I
nst
all
mentrec
e i
vabl
es 55,
000
I
n v
entory 30,
000
Defer
r e
dg r
osspr
ofi
t 25,
000
Pa
yme
nt:
Cas
h 20,
000
I
nst
all
men
tre
cei
vabl
es 20,
000
Ba
lan
ceS
heet
:
I
nst
all
mentrec
eiv
abl
esP55,
000–20,
000 P35,
000
Def
erre
dg r
ossprof
it (25,
000)
I
nst
all
mentrec
eiv
abl
es(n
et) P10,
000
41
.a
S
ale
: I
nst
all
mentrec
e i
vabl
es 55,
000
I
n v
entory 30,
000
Defer
r e
dg r
osspr
ofi
t 25,
000
2008: Ca
sh 20,
000
I
nst
all
men
tre
cei
vabl
es 20,
000
Ca
sh 15,
000
I
nst
allmentrece
ivabl
es 15,
000
2009: De
fer
redgrossprofi
t 5,
000
Re
a l
i
ze dgrossprofi
t 5,
000
Ba
lan
ceS
heet
:
I
nst
all
mentrec
eiv
abl
es P20,
000
Def
erre
dg r
ossprof
it (20,
000)
I
nst
all
mentrec
eiv
abl
es(n
et) P 0
42.
c-P300,
000(
20x
4sa
les
)+P500,
000(
20x
5sa
les
)=P800,
000
43.a
 Gr os
sprofi
t% =(P900,
000 P450, 000)
/P900,000=50%
20x
4:50% xP300,000=P150,000
44.c
20x4sa
les
:Gros
spr
ofi
t% =( P900,000 P450, 000)/P900,
000=50%
50% xP300,000receiv
edin2010=P1 50,
000
20x
5s al
es:
Grosspr
ofi
t% =(P1
,
500,000 P900,
000)/
P1,
500,
000=40%
40% xP400,
000rece
ive
din201
0=P160,
000
Tot
al:
P150,
000+P1 60,
000=P310,
000
45.
c
20x
4Sa
les
:Inst
all
mentrecei
vabl
e s=P900,000–P300,000(x4col
lecti
ons)
-P300,000(x5col
le
ctions)= P300,
000
Def
erre
dg rossprof
it=P450,000–P150,000(x
4c ol
le
cti
on s
)
-P150,
000(x5coll
ect
ions)= 150,
000
Ne
tinst
all
me n
tr e
cei
va bl
efor20x4s
ale
s = P1
50,
000
20x
5Sal
es:I
nst
all
mentrecei
vabl
es=P1,500,
000–P500,
000(x
5c ol
le
cti
ons)
= P1
,
000,000
Def
erre
dg rossprof
it =P600, 000–P200,
000(x
5c ol
le
cti
ons)= 400,000
Ne
tinst
all
me n
tr e
cei
vabl
efor20x5 = P 600,000
Tot
al = P 750,
000
46.
a
I
nst
all
mentrec
eiv
abl
e=P200,000
Def
erre
dg r
ossprof
it =P80,
000(P200,
000x40% )
Fa
irval
ue =P75,
000
Reposs
ess
edi n
ventor
y P75, 000
Deferr
edg r
ossprofi
t P80,
000
Lossonreposs
ess
ion(pl
ug)P45,
000
I
n s
tal
lmentrec
eiv
abl
e P200,
000
 
47.b-P450,
000c
ost P300,
000c
oll
ect
ion
s=P1
50,
000u
nre
cov
ere
dcos
ts
 
48.b
20x
4s al
es:Cos
t=P450, 000;P300,
000col
lec
tedineachyear20x 4-20x6.P300,
000ofc ost
re
c over
edin20x4,t
heothe
rP150,
000ofc ostr ec
over
edin20x5,soP150,
000ofgros
s
profitr
ecogni
zedi
n20x5,le
avi
ngP300,000r e c
ogni
zedin20x6.
20x
5s al
es:Cos
t=P900, 000;P500,
000col
le
ctedin20x5,P400,000c ol
lec
tedin20x6.P500,
000ofcost
re
c over
edin20x5,t
heoth
erP400,000ofc ostrecov
eredin20x5,s
oP0ofg r
ossprof
it
re
c ogni
zedin20x6.
Tot
al:
P300,000+P0=P300, 000
 
49.
d
20x
4Sa
les
:Inst
all
mentrecei
vabl
e s=P900,000–P300, 000( x
4c oll
e c
ti
ons)
-P300,000(x5c oll
ecti
ons)= P300,
000
Def
erre
dg rossprof
it=P450,000–P0( al
lx4coll
e ct
ionstocost
rec
over
y-P1 50,
000( P150,000ofx 5
col
le
cti
onstocos
trecovery)= 300,
000
Ne
tinst
all
me n
tr e
cei
va bl
efor20x4sal
es = P 0
20x
5Sal
es:I
nst
all
mentrecei
vabl
es=P1,500,
000–P500,
000(x
5c ol
lec
tion
s)= P1
,000,
000
Def
erre
dg rossprof
it =P600, 000–P0(a
llx
5coll
ect
ionsto
c
ostrecove
ry) = P600,
000
Ne
tinst
all
me n
tr e
cei
vabl
efor20x5 = P400,000
Tot
al = P400,
000
50.b–s amewithNo. 59.
51.c
Note:
S i
ncethecoll
ecti
bil
i
tyoft h
en ot
eisrea
sonabl
yas
sur
ed,
thea
ccr
ual
bas
iss
hou
ldbea
ppl
i
ed.There
for
e,
ful
lgros
sprofiti
srecognizedintheyearofsa
le.
Grossprofi
tons ale
:
 
  Sal
es(P187,
500x4. 3553) P816,
619
 
  Costofsale
s 637,
500
Grossprofi
t(real
ized) P179,
11
9
52.c
TotalI
ncomef or20x4:
Gros
spr ofi
t(r
eali
zed)–No.51 P1
79,
119
I
nter
estr e
venue
—4mon t
hs:
P81
6,61
9x1
0% x4/
12.
. _27,221
Tot
alinc
omef or20x4 P206,
340
53.b
Tot
alI
ncomef or20x5:
Grossprofi
t(r
eali
zed)–alr
eadyrecogn
izedi
n20x 4 P 0
In
ter
e s
trevenue– 8mon t
hsinYea
r1(P81,
662*x8/ 1
2) P54,
441
4month
sinYear2(P71
,078*x4/12) 23,
693 78,
134
 Tot
alI
ncomef
or20x
5 P 78,
1
34
*S
che
dul
eofDi
scou
ntAmo
rti
zat
ion
/In
ter
estI
ncomec
ompu
tat
ion
:
(1
) (
2) (3) (
4)
Face Net Di
scou
nt
Amount Una
mor ti
zed Amount Amort
izat
ion
1
Ye
ar ofNote 3
Discount (
1)–(2) 1
0% ( 3)
1 P1
,
125,
000P308,
381 P816, 9281
61 6625
,
2 937,
500 226, 7194 710,
781 71
,
078
1
2
P187,500x6ye ars=P1,
125,000;ev
eryyearP187,
500shoul
dbededuct
edont
hepr
evi
ousba
lan
ce.
3
T h
e pres
entva
lueofsa
les/r
e c
eiv
abl
es:P1
87,500x4.3553=P816,
619
4
P1,
125,
000–P81 6,
619
5
(2)–(4)
Discou
nta mor
ti
zati
ongiveris
etorecogni
ti
onofint
ere
stre
venu
e/i
ncome.
54.a
Note
:S i
ncethecoll
ect
ibi
l
ityofthenotecannotbereas
onablyass
ured,t
hei
nst
all
me ntsal
esme t
hodshouldbe
appl
ied.Al
so,
ifthethe
reishi
ghdegreeofuncert
aint
yastocol
le
cti
bil
i
ty,t
hec
ostrecover
yme t
hodma ybeu sed.
I
nst
allments
ale
:Grossprofi
t(P
179,
1
19/P81
6,619) 22% (r
ou nded)
Gr
osspr
ofi
tear
nedin20x4(
P0*x22% ) P 0
*nocol
le
cti
onsi
n20x4.
55.a
Tot
alI
ncomefor20x4:
Gros
sprofi
tearn
edin20x4(P0*x22% ) P 0
I
nter
estre
venu
e(ref
ertoNo.
52 27,
221
Tot
ali
ncomefor20x4. P27,
221
56.d
Coll
ect
ionsin20x 5(Augu s
t31,20x
5) P1
87,
500
Less
:In
terestrevenu
e /
incomefromS e
ptember1,
20x4to
August31,20x5( r
efe
rtoschedul
eofamor
tiza
tioni
nNo.
53) 81
,
662
Coll
ect
iona stoprinci
pal P1
05,
838
x:GrossProfi
t% ( ref
ert oNo.54) 22%
Grossprofi
trea l
i
zedi n20x 5 P 23,284
Add:In
terestrevenu
e /
incomefor20x5( r
efe
rtoNo.
53) 78,134
TotalI
n c
omef or20x 5 P101
,418
57.
d*
Res
aleValue P8,
500
Les
s:Norma lprof
itf or20x 6-ye arofre
possess
ion
[(
P3,010,000–P1 ,896,300)/
P3,01
0,000]x8,500 3,
145
MarketValueofRe possessedMe r
chandi
se P5,
355
Les
s:UnrecoveredCos ts–20x 5
De f
ault
e dbalanc e
*( P27,000–P1 6,
000) P1
1,
000
Less
:DGP[ (
P2,160,000-P1 ,
425,
600)/P2,
160,000]x
P11,
000 ___3,
740 __7,260
Los
sonr epos s
ess
ion P(1
,
905)
En
tryma
de:
Inv
ent
oryofRM* 1
1,
000
IAR-20x
5 1
1,
000
Cor
rec
tEn t
ry(
Shouldbe)
:
I
n v
ent
oryofRM(a tMV
) 5,
355
DGP-20x5 3,
740
Los
sonreposs
ess
ion 1,
905
IAR-20x5 1
1,
000
Cor
rec
ti
ngEn t
ry:
DGP-20x5 3,
740
Los
sonreposs
e s
si
on 1,
905
Inv
entoryofRM 5,
645**
58.d
20x4:P24,
000– P0=P24, 000c ol
le
cti
onsx39% P 9,
360
20x5:P300,000–P60,000–P1 0,000defau
lts=P230,
000x42% 96,
600
20x6:P480,000–P320,000–P5, 000defaul
ts=P155,
000x40% 62,
000
Real
izedgrosspr
ofi
tonins
tal
lme
n tsal
esi
n20x 6 P1
67,
960
59.b
20x
5Sal
es 20x
6S al
es Ne
t
MarketValue
s P4,
500 P3,500
Les
s:Unrecover
edCost
:
IAR,unpai
dbala
nces P1
0,000 P5,
000
x :
CostRati
o 50% 5,
800 60% 3,
000
Ga
in(loss
) P(1
,
300) P 500 P(800)
60.c
I
nstal
lmentS ale
s P3,
600,
000
Less
:Over-a ll
owance
:
Trade -inall
owance P1
,
500,
000
Less
: MVofTr ade-inMe rch
andi
se:
Est
imate
dRe sal
ePr i
ce P1
,
400,000
Les
s:Normalprofi
t(25% xP1,400,
000) 350,
000
Recondit
ioni
ngcosts 1
50,
000 900, 000 600,
000
Adjus
tedInstall
mentSales P3,000,000
Less
:CostofI /S 2,
500,000
GrossProfi
t P 500,000
Grossprofi
tr ate
:P500,000/P3,000,000 1
62/ 3%
x:Coll
ect
ions–Tr ade-inmer c
handi
se(atMV) P 900,000
RGPonI /Sin20x 4 P 1 50,
000
Theor
ies
1. True 6. Tr
ue 1
1. Fa
lse 1
6. Tr
ue 21
. c 26. a 31
. c
2. True 7. Tru
e 1
2. Tr
ue 1
7. Tr
ue 22. d 27. b 32. c
3. Fals
e 8. Tru
e 1
3. Tr
ue 1
8. b 23. d 28. d 33. c
4. Fals
e 9. Tru
e 1
4. Tr
ue 1
9. c 24. c 29. b 34. b
5. True 1
0, Fal
se 1
5, Tr
ue 20. c 25. b 30. d 35. b

36. c 41
. d
37. d 42. c
38. b 43. c
39. b 44. c
40. d 45.