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CORPORATION ACCOUNTING PAPAT 2022
Started: Jul 16 at 8:37am
Quiz Instructions
"COURAGE COMBINED WITH INTEGRITY IS

THE FOUNDATION OF CHARACTER."
Question 1 1 pts
Which of the following accounting principle is applied in recording properties received

at its fair value or fair value of the stock whichever is more clearly determinable in
exchange of shares of stock?
Going concern
Matching principle
Entity principle
Cost principle
Question 2 1 pts
When there is no bidder for delinquent subscription, the subscribed shares will be
Retained as subscribed
Issued to delinquent subscriber
Issued in the name of the corporation
Reverted back to unsubscribed shares

Question 3 1 pts
A company declared a cash dividend on its ordinary share capital in December 2014
and payable in January 2015. Retained Earnings would
Decrease on the date of payment
Not affected on the date of declaration
Increase on the date of declaration
Not affected on the date of payment
Question 4 1 pts
Dividends in arrears on preference shares are reported in the financial statements a

(an)
Reduction from retained earnings
Liability
Footnote to financial statements
Expense
Question 5 1 pts
Treasury shares are reported as

Liability
Contra shareholders’ equity
Asset
Contra asset
Question 6 1 pts
A corporation declared dividends on December 1 payable on January 15 to

shareholders of record of December 30. The balance of Retained Earnings
Decreases on January 15
Is not affected on December 1
Is not affected on December 30
Decreases on December 30
Question 7 1 pts
The number of treasury shares is equal to the difference between
Issued and unissued shares
Authorized shares and unissued shares
Issued and outstanding shares
Authorized shares and issued shares

Question 8 1 pts
A non-cash asset received in exchange for share capital is recorded at
the higher of its book value and fair market value
its fair market value
its book value
the lower of its book value and fair market value
Question 9 1 pts
Which of the following statements about preference share capital is NOT true?
Preference share capital usually share s the right to receive assets pro-rata with the ordinary
share capital in case of corporate liquidation
Preference share capital usually caries the right to vote
In addition to being paid dividends prior to those paid to ordinary shareholders, preference
shareholders have the right to receive assets pro-rata with the ordinary share capital in case
of corporate liquidation
Preference share capital dividends are usually paid prior to payment of ordinary share capital
dividends
Question 10 1 pts
The peso equity in corporate capital for each share owned by a shareholder is known
as
Dividends per share
Share premium per share
Earnings per share
Book value per share
Question 11 1 pts
Under the provision on corporate term, a corporation shall exist for a period not
exceeding
30 years
45 years
25 years
50 years
Question 12 1 pts
Which of the following is NOT typically a characteristic of preference shares?
Preference over ordinary shareholders during liquidation
Cumulative and callable terms
Preference as to dividends
Preference as to voting rights

Question 13 1 pts
A preference share capital that may be exchanged for ordinary share capital is known
as
Participating
Cumulative
Convertible
Noncumulative
Question 14 1 pts
Cash dividends declared but not paid as of the statement of financial position date is
reported as
Additional to share capital
Current liability
Deduction from cash
Addition to share premium
Question 15 1 pts
At the end of the reporting period, ordinary shares issued would exceed ordinary
shares outstanding as a result of the
Payment in full of the subscribed shares

Declaration of share split
Declaration of a share capital dividend
Purchase of treasury shares
Question 16 1 pts
Bassig Corp. was organized on January 1, 2017, at which date it issued 100,000
shares of P12 par ordinary share capital at P16 per share. For the period 2017 to
2019, the company reported profit of P400,000 and paid cash dividends of P220,000.
On January 10, 2019, the company purchased 6,000 of its own shares at P13 per
share. On November 20, 2019, Bassig sold 4,000 treasury shares at P10 per share.
What is the total shareholders’ equity on December 31, 2019?
1742000
1680000
1754000
1354000
Question 17 1 pts
SALP Corp. reported the following in its statement of shareholders’ equity on January
1, 2019:
Ordinary share, P5 par value,

200,000 shares authorized, 100,000 P500,000
shares issued
Additional paid-in capital 1,500,000
Retained earnings 516,000
Treasury shares, 6,000 shares at cost 42,000
The following events occurred in 2019:
May 1 – 2,000 treasury shares were sold for P20,000
July 9 – 15,000 shares previously unissued shares were sold for P12 per share
Oct. 15 – There was a 3-for-2 share split
How many shares are outstanding at December 31, 2019?
160500
166500
333000
212000
Question 18 1 pts
The capital accounts of PSS Co. on January 1, 2019 are as follows:
5% Preference share capital, P100 par, 50,000

P5,000,000
shares
Preference share premium 250,000
Ordinary share capital, P20 par, 250,000 shares
authorized, 150,000 shares issued and 3,000,000
outstanding
Ordinary share premium 750,000
Retained earnings 1,500,000
Each preference share is convertible into four ordinary shares. The following
transactions affected the shareholders’ equity section of the financial position during
2019:
1. Reacquired 5,000 ordinary shares at P16

2. Preference shareholders converted 10,000 of their shares
3. Issued 500 ordinary shares in settlement of a liability of P12,500
4. Declared regular dividends on preference shares and a cash dividend of P2.00
per share on ordinary shares
5. Reissued 2,000 treasury shares in exchange for land valued at P50,000
6. The ordinary shares were split two for one
7. Reported profit of P200,000 for the year
What is the total shareholders' equity of PSS Co. on December 31, 2019?
10,064,500
10,231,500
9,911,500
10,111,500
Question 19 1 pts
The shareholders’ equity section of the balance sheet of SBU2 Corporation showed
the following information:
10% Preference Share Capital, P100 par value, P1,000,000
Ordinary Share Capital, P50 par value, P1,000,000
Retained Earnings, P2,500,000
SBU2 Corporation has not declared dividends only for last year. If the preference
shares are cumulative and fully participating, what amount of dividend will a
shareholder who owns 2,500 ordinary shares receive out of P1,180,000 cash
dividends declared by SBU2 Corporation?
160000
73750
135000
67500
Question 20 1 pts
Easy Corporation has the following information relating to its share capital:
12% Preference shares, cumulative, P100 par value, 30,000 shares authorized,
20,000 shares outstanding, P2,000,000
Ordinary shares, P10 par value, 500,000 shares authorized, 300,000 shares
outstanding, P3,000,000
Compute basic earnings per share assuming that the reported profit of the company
is P1,200,000
3.20
2.80
1.68
1.92
Question 21 1 pts
On December 29, 2018, Sunny Company was registered at the Securities and
Exchange Commission with 100,000 authorized ordinary shares of P100 par value.
The following were Sunny’s transactions:
Dec. 29, 2018 – Issued 40,000 shares at P105 per share
May 14, 2019 – Purchased 600 of its ordinary shares at P110 per share
Aug. 9, 2019 – 400 treasury shares were sold at P95 per share
Dec. 31, 2019 – Profit of P830,000 and cash dividends paid amounting to
P200,000
What is the total shareholders’ equity of Sunny Company on December 31, 2019?
10602000
4352000
4802000
4820000
Question 22 1 pts
Academia Corp. was incorporated on June 1, 2019 with an authorized 250,000 share
of no-par ordinary share capital, stated value P20 and 10,000 shares of 10%
preference share capital, par value P45. Transactions affecting company’s share
capital as of June 30, 2019 were as follows:
June 1 – Issued 40,000 ordinary shares for cash at P25 per share
June 5 – Issued 50,000 ordinary shares in exchange for assets with total market
value of P1,200,000
June 15 – Received subscriptions for 100,000 ordinary shares at P28 and 5,000
preference shares at P52
June 25 – Received full payment for subscriptions received on June 15 and the
corresponding stock were issued
How much is the total shareholders' equity?
5260000
1235000
4925000
4025000
Question 23 1 pts
The SBU Co. has paid dividends for the last two years as follows: 2018 – P2,600,000;
2019 – P3,700,000. During the last two years, the company has the following
outstanding share capital: 100,000 shares of P100 par, 12% Preference Share
Capital and 500,000 shares of P10 par value Ordinary Share Capital. Dividend are in
arrears for two years at the beginning of 2018.
What is the amount of dividend per share on preference shares for 2019 assuming
the preference shares are cumulative and fully participating?
24.67
26.00
32.67
28.00
Question 24 1 pts
The statement of financial position of Ace Company reported the following:
8% Preference share capital, P50 par value,

P450,000
cumulative and convertible
Ordinary share capital, P10 par value, 2,000,000
16,000,000
shares authorized
Ordinary share premium 8,000,000
The company has not declared dividends for the last two years, including the current
year. The market value of the ordinary shares is P75 per share. The preference
shares have liquidation value of P60 per share. Based on the foregoing information,
what is the book value per share on ordinary shares?
17.00
13.68
13.60
17.10
Question 25 1 pts
The Reconstruction Corporation was organized on January 1, 2019 with authorized

share capital consisting of 50,000 preference shares with a par value of P60 and
1,000,000 of no-par ordinary shares with a stated value of P10. At December 31,
2019, the ledger included the following balances pertaining to shareholders’ equity:
Preference Share Capital P1,080,000

Preference Share Premium 120,000
Ordinary Share Capital 3,000,000
Ordinary Share Capital in Excess of
4,500,000
Stated Value
Ten thousand of the preference shares were issued for equipment having a fair value
of P680,000 and the remaining preference shares were issued for cash. All ordinary
shares were issued for cash.
What is the price per share of preference share capital issued for cash?
62.40
57.00
66.67
65.00
Question 26 1 pts
My Hero Corp was organized on January 2, 2019, with authorized capital of 100,000
shares of P10 par ordinary share capital. During 2019, My Hero had the following
transactions affecting shareholders’ equity:
January 7 – Issued 40,000 shares at P12 per share. My Hero paid transaction
cost of P30,000
December 2 – Purchased 6,000 treasury shares at P13 per share
Profits for the year amounted to P300,000. What is the amount of shareholders’
equity as of December 31, 2019?
592000
720000
672000
702000
Question 27 1 pts

P5,000,000
shares
outstanding
2019:

What is the total contributed capital to be reflected in shareholders' equity of PSS Co.
on December 31, 2019?
7,810,000
8,830,500
9,030,500
8,812,500
Question 28 1 pts
On December 10, Sunflower Co. split its share capital on a 5-for-2 when the market
value was P60 per share. Prior to the split, Sunflower had 200,000 shares of P15 par
value share capital. What is the par value of the share capital after the split?
15.00
37.50
24.00
6.00
Question 29 1 pts
Ashe Company was organized on January 1, 2019, with authorized capital of 100,000
shares of P210 par value. During 2019, Ashe had the following transactions affecting
shareholders’ equity:
January 10 – Issued 25,000 shares at P225 a share
March 25 – Issued 1,000 shares for legal services when the fair value was P230 a
share. The fair value of the services received was P245,000.
Sept. 30 – Issued 5,000 shares for a tract of land when the fair value was P260 a
share. The fair value of the land was P1,250,000. Ashe paid transaction cost of
P35,000.
What amount should Ashe report for Share Premium on Dec. 31, 2019?
575000
610000
605000
655000
Question 30 1 pts

P5,000,000
shares
outstanding
2019:

What is the total amount of retained earnings of PSS Co. on December 31, 2019?
1249000
1129000
1329000
1300000
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OBLIGATIONS & CONTRACTS PAPAT 2021
Started: Jul 17 at 4pm
Quiz Instructions
THAT IN ALL THINGS, GOD MAY BE GLORIFIED!
Question 1 1 pts
Aligada orally offered to sell his 2 hectare rice land to Balane for P10 Million. The offer was
orally accepted. By agreement, the land was to be delivered (through execution of a notarized
deed of sale) and the price was to be paid exactly one-moth from their oral agreement. Which of
the statement is most accurate?
If Aligada refused to deliver the land, Balane may successfully sue for fulfillment of the obligation even if
he has not tendered payment of the purchase price
The contract between the parties is rescissible
The contract between parties is subject to ratification by the parties
If Aligada refuses to deliver the land on the agreed date despite payment by Balane, the latter may not
successfully sue Aligada because the contract is oral
Question 2 1 pts
When bilateral contracts are vitiated with vices of consent, they are rendered
Void
Voidable
Unenforceable
Rescissible
Question 3 1 pts
Michael Fermin, without the authority of Pascual Lucas, owner of a car, sold the same car in the
name of Mr. Lacas to Atty. Buko. The contract between Atty. Buko and Mr. Lucas is –
Valid because all of the essential requisites of a contract are present
Unenforceable because Michael Fermin had no authority but he sold the car in the name of Mr. Lucas,
the owner
Rescissible because the contract caused lesion to Atty. Buko.
Void because of the absence of consent from the owner, Mr. Lucas.
Question 4 1 pts
Which of the following statements is wrong?
If a contract should contain some stipulations in favor of a 3rd person, he may demand its fulfillment
provided he communicated his acceptance to the obligor before its revocation.
Creditors are protected in cases of contracts intended to defraud them.
Contracts take effect only between the parties, their assign and heirs, except in case where the rights
and obligations arising from the contract are not transmissible by their nature, or by stipulation or by
provision of law.
In contracts creating real rights, 3rd persons who come into possession of the object of the contract are
not bound thereby.
Question 5 1 pts
Asiong borrowed P1 million from a bank, secured by a mortgage on his land. Without his
consent, his friend Boyong paid the whole loan. Since Asiong benefited from the payment, can
Boyong compel the bank to subrogate him in its right as mortgagee of Asiong’s land?
No, but the bank can foreclose and pay Boyong back.
Yes, since a change of creditor took place by novation with the bank’s consent.
No, since Boyong paid for Asiong’s loan without his approval.
Yes, since it is but right that Boyong be able to get back his money and, if not, to foreclose the mortgage
in the manner of the bank.
Question 6 1 pts
Lino entered into a contract to sell with Ramon, undertaking to convey to the latter one if the 5
lots he owns, without specifying which lot it was, for the price of P1 million. Later, the parties
could not agree which of the 5 lots he owned Lino undertook to sell to Ramon. What is the
standing of the contract?
Unenforceable
Void
Rescissible
Voidable
Question 7 1 pts
Contracts take effect only between the parties or their assigns and heirs, except where the rights
and obligations arising from the contract are not transmissible by their nature, by stipulation, or
by provision of law. In the latter case, the assigns or the heirs are not bound by the contracts.
This is known as the principle of
Relativity of contracts
Mutuality of contracts
Freedom to stipulate
Obligatory force of contracts

Question 8 1 pts
Knowing that the car had a hidden crack in the engine, X sold it to Y without informing the latter
about it. In any event, the deed of sale expressly stipulated that X was not liable for hidden
defects. Does Y have the right to demand from X a reimbursement of what he spent to repair
the engine plus damages?
No, because Y waived the warranty against hidden defect.
Yes, X is liable whether or not he was aware of the hidden defect.
No, because Y is in estoppel, having changed engine without prior demand.
Yes, since the defect was not hidden; X knew of it but he acted in bad faith in not disclosing the fact to Y.
Question 9 1 pts
The liability of the partners, including industrial partners for partnership contracts entered into in
its name and for its account, when all partnership assets have been exhausted is
Solidary
Pro-rata
Joint
Voluntary
Question 10 1 pts
Consent was given by one in representation of another but without authority. The contract is:
Rescissible
Voidable
Unenforceable
Void
Question 11 1 pts
Leni bought a business class ticket from Alta Airlines. As she checked in, the manager
downgraded her to economy on the ground and that a Congressman had to be accommodated
in the business class. Leni suffered discomfort and embarrassment of the downgrade. She sued
the airlines for quasi- delict but Alta Airlines countered that, since her travel was governed by a
contract between them, no quasi-delict could arise. Is the airline correct?
Yes, since the facts show a breach of contract, not a quasi-delict.
No, denying Leni the comfort and amenities of the business class as provided in the ticket is a tortious
act.
Yes, since quasi-delict presupposes the absence of a pre-existing contractual relation between the
parties.
No, the breach of contract may in fact be tortious as when it is tainted as in this case with arbitrariness,
gross bad faith, and malice.
Question 12 1 pts
Which of the following expresses a correct principle of law? Choose the best answer.
Failure to disclose facts when there is a duty to reveal them, does not constitute a fraud
Violence or intimidation does not render a contract annullable if employed not by a contracting party but a
3rd person
Absolute simulation of a contracts always results in a void contract
A threat to enforce one’s claim through competent authority, if the claim is legal or just, does not vitiate
consent
Question 13 1 pts
Which of the following contracts is void?
A donation of a wrist watch worth P4,500.00
A relatively simulated contract.
A sale of land by an agent in a public instrument where his authority from the principal is oral.
An oral sale of a parcel of land
Question 14 1 pts
Rudolf borrowed P1 million from Rodrigo and Fernando who acted as solidary creditors. When
the loan matured Rodrigo wrote a letter to Rudolf, demanding payment of the loan directly to
him. Before Rudolf could comply, Fernando went to see him personally to collect and he paid
him. Did Rudolf make a valid payment?
Yes, since Fernando was a solidary creditor, payment to him extinguished the obligation.
No, since Rudolf should have split the payment between Rodrigo and Fernando.
Yes, since the payment covers the whole obligation.
No, since Rodrigo, the other solidary creditor, already made a prior demand for payment from Rudolf.
Question 15 1 pts
Which phrase most accurately completes the statement- Any 3rd person who induces another to
violate his contract:
Shall not be liable for damages if the parties are in pari delicto
Shall not be liable for damages to the other contracting party

Shall be liable for damages to the other contracting party
Shall be liable for damages only if he is a party to the same contract
Question 16 1 pts
Roy and Carlos both undertook a contract to deliver to Sam in Manila a boat docked in Subic.
Before they could deliver it, however, the boat sank in a storm. The contract provides that
fortuitous event shall not exempt Roy and Carlos from their obligation. Owning to the loss of the
motorboat, such obligation is deemed converted into one of indemnity for damages. Is the
liability of Roy and Carlos joint or solidary?
Neither solidary nor joint since they cannot waive the defense of fortuitous evet to which they are entitled.
Joint since the conversion of their liability to one of indemnity of damages made it joint.
Solidary since Roy and Carlos failed to perform their obligation to deliver the motorboat.
Solidary or joint upon the discretion of Sam.
Question 17 1 pts
X, who was abroad, phoned his brother, Y, authorizing him to sell X’s parcel of land in Pasay. X
sent the title to Y by courier service. Acting for his brother, Y executed a notarized deed of
absolute sale of the land to Z after receiving payment. What is the status of sale?
Void, since X should have authorized agent Y in writing to sell the land.
Valid, since Y was truly his brother X’s agent and entrusted with the title needed to effect the sale.
Valid, since the buyer could file an action to compel X to execute a deed of sale.
Valid, since a notarized deed of absolute sale covered the transaction and full payment made.
Question 18 1 pts
Upon the proposal of a 3rd person, a new debtor substituted the original debtor without the
latter’s consent. The creditor accepted the substitution. Later, however, the new debtor became
insolvent and defaulted in his obligation. What is the effect of the new debtor’s default upon the
original debtor?
The original debtor is freed of liability since novation took place and this relieved him of the obligation.
The original debtor shall pay or perform the obligation with recourse to the new debtor.
The original debtor remains liable since he gave no consent to the substitution.
The original debtor shall pay or perform 50% of the obligation to avoid unjust enrichment on his part.
Question 19 1 pts
Six tenants sued X, the landowner, for willfully denying them water for their farms, which water
happened to flow from land under X’s control, his intention being to force them to leave his
properties. Is X liable for his act and why?
Yes, since X willfully caused injury to his tenants contrary to morals, good custom or public policy.
No, since X own both the land and the water.
Yes, because the tenants’ farms have the natural right of access to water wherever it is located.
No, because the tenants must be content with waiting for rainfall for their farms.
Question 20 1 pts
X bought a land from Y, paying him cash. Since they were friends, they did not execute any
document of sale. After 7 years, the heirs of X asked Y to execute a deed of absolute sale of
formalize the verbal sale to their father. Unwilling to do so, X’s heirs filed an action for specific
performance against Y. Will their action prosper?
Yes, after full payment, the action became imprescriptible.

No, after more than 6 years, the action to enforce the verbal agreement has already elapsed.
No, since the sale cannot under the Statute of Frauds be enforced.
Yes, since X bought the land and paid for it.
Question 21 1 pts
1. Culpa aquiliana as distinguished from culpa contractual:
The source of liability is the negligent act of the person causing damage to another.
Proof of the contract and its breach is sufficient to warrant recovery.
Proof of due diligence in the selection and supervision of employees is not considered a defense.
The negligence of the defendant is only an incident in the performance of the obligation.
Question 22 1 pts
1. The duty to pay taxes and to support one’s family are classified as:
Natural obligations
Legal obligations
Conventional obligations
Civil obligations
Question 23 1 pts
1. A, B and C secured a loan from D. The promissory note which evidence the obligation
states; “I promise to pay D or order P10,000 payable on demand” (sgd) A B C. The
obligation is:
Joint
Divisible
Indivisible
Solidary
Question 24 1 pts
1. 1st Statement – In alternative obligations, the choice shall produce no effect except from the
moment it has been communicated.
2nd Statement - In facultative obligations, the creditor may have the right to choose the
substitute in lieu of the principal obligation.
Both statements are wrong.
1st statement is wrong, 2nd statement is correct
1st statement is correct, 2nd statement is wrong.
Both statements are correct.
Question 25 1 pts
1. Which of the following is excluded in the determination of liability arising from criminal
offenses:
Subrogation
Restitution
Indemnification
Reparation
Question 26 1 pts
1. 1st Statement - A quasi-contract is an implied contract.
2nd Statement - Acquittal in the criminal case will excuse the accused from civil liability.
1st statement is wrong, 2nd statement is correct
Both statements are correct
1st statement is correct, 2nd statement is wrong.
Both statements are wrong.
Question 27 1 pts
1. Monica, a minor owns a specific ring valued at Php100,000. Gina, the guardian of Monica,
by means of fraud induced Brian, a minor to buy the ring for Php 75,000, which Brian did so
and Gina effected delivery to Brian. The contract is not in writing. Which is correct?
The contract is unenforceable because Monica and Brian are both incapacitated to give consent
The contract is rescissible because Monica suffered a lesion of 1/4 of the value of the ring
The contract is voidable but Brian can only ask the annulment within 4 years from discovery of the fraud
The contract is voidable but Gina cannot ask for annulment of the contact
Question 28 1 pts
1. This contract is without effect unless ratified
Contract of sale between two insane persons
Marriage between first degree cousins
Contract of sale between a guardian and his ward
Donation between husband and wife

Question 29 1 pts
1. In facultative obligations, if substitution has been made, which of the following is false?
The obligation is converted into a simple obligation
The loss of the original prestation is immaterial
The obligation ceases to be facultative
The obligation is extinguished
Question 30 1 pts
1. “I’ll give you a diamond ring if you will go to Hong Kong Disneyland this year”. This obligation
is:
Voidable
Rescissible
Valid
Void
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7/17/2021 Quiz: COMPACCT PAPAT 2021
COMPACCT PAPAT 2021

Started:
Jul 17 at 10:46am
Quiz Instructions
THAT IN ALL THINGS, GOD MAY BE GLORIFIED!
Question 1 1 pts
The debts or obligations of a business are known as its __________.
liabilities
assets
owner's equity
capital
Question 2 1 pts
If the beginning capital balance for William’s Consulting Service is $23,000, net
income is $4,000, and the ending capital balance is $20,000, what were the
withdrawals for the period?
$20,000
$3,000
$7,000
$1,000
https://sanbeda.instructure.com/courses/3993/quizzes/14580/take 1/14
Question 3 1 pts
Ginger Yale Ice Company receives money from a customer on account. Recording
this transaction will:
increase Cash.
increase Accounts Receivable.
decrease Accounts Payable.
decrease G. Yale, Capital.
Question 4 1 pts
When Tamar Snyder opened a shoe store, her accountant did not include the cash in
her personal savings account as one of the assets of the business. This is an
example of
the separate entity assumption.
industry practice constraint.
the conservatism constraint.
the materiality constraint.
Question 5 1 pts
Whenever a sales department needs goods, it sends the purchasing department a

form called a(n) __________.
purchase order.
receiving report.
purchase requisition.
purchase invoice.
Question 6 1 pts
The __________ is the financial report that shows the assets, liabilities, and owner's
equity of a business on a specific date.
profit and loss statement
balance sheet
statement of owner’s equity
income statement
Question 7 1 pts
If the following are the only accounts of Jones Supply Company, what is the missing
Supplies balance?
Cash: $8,000
Supplies: ?????
Accounts Payable: $4,000
John Smith, Capital: $9,000

$13,000
$21,000
$3,000
$5,000
Question 8 1 pts
Which of the following groups of accounts will have zero balances after the closing
process is completed?
Purchases and Purchases Returns and Allowances
Merchandise Inventory and Sales
Depreciation Expense and Accumulated Depreciation—Equipment
Allowance for Doubtful Accounts and Uncollectible Accounts Expense
Question 9 1 pts
In a business transaction, when expenses increase, owner's equity will __________.
remain unchanged
increase
either increase or decrease
decrease
Question 10 1 pts
For the current fiscal year, Purchases were $187,000, Purchases Returns and
Allowances were $4,200 and Freight In was $10,500. If the beginning merchandise
inventory was $98,000 and the ending merchandise inventory was $103,000, the
Cost of Goods Sold is:
$188,300
$196,700
$193,300
$ 167,300
Question 11 1 pts
All accounts appearing in the ____________________ section of the worksheet are

closed to the Income Summary account.
adjustments
income statement
trial balance
balance sheet
Question 12 1 pts
When a business sells services for cash, assets increase and revenue __________.
is unchanged
may either increase or decrease
increases
decreases
Question 13 1 pts
The amount of an allowance received from a creditor is posted to the __________

column of the creditor's account in the accounts payable subsidiary ledger.
description
credit
balance
debit
Question 14 1 pts
Which of the following statements is correct?
The Purchases account is reported as an asset on the balance sheet.
The customer refers to a supplier's invoice as a purchase order.
The purchase requisition is the form sent to a supplier to order goods
Credit terms of 2/10, n/30 allow the customer to take a 2 percent discount if payment is made
within 10 days of the invoice; otherwise, payment is due in full in 30 days.
Question 15 1 pts
The account used to record amounts that will be collected from charge account
customers in the future is referred to as __________.
merchandise inventory
accounts receivable
accounts payable
withdrawals
Question 16 1 pts
On May 1, Brown's Antiques paid $18,000 for 12 months of advance rent on its store
and immediately debited the asset account Prepaid Rent for the full amount. Select
the adjusting entry made on December 31, to record the amount of rent that had
expired.
Account Name Debit Credit

Prepaid Rent 12,000
Rent Expense 12,000

Prepaid Rent 18,000
Rent Expense 18,000

Rent Expense 10,500
Prepaid Rent 10,500

Rent Expense 12,000
Prepaid Rent 12,000
Question 17 1 pts
In a small firm, the creditor accounts are placed in __________ order in the accounts
payable ledger.
dollar value (low to high)
dollar value (high to low)
alphabetical
numerical (account number)
Question 18 1 pts
Funds taken from the business by the owner for personal use are called __________.
withdrawals
assets
expenses
liabilities
Question 19 1 pts
Marvin’s Appliance Store sold a 3-year service contract on a refrigerator receiving the
entire amount in cash at the time of the sale. Recording the revenue from the prepaid
service contract over its 3-year life is an example of
applying the realization principle.
following the objectivity assumption.
applying the conservatism constraint.
applying the revenue recognition principle.
Question 20 1 pts
When a firm experiences a net loss, the owner's capital is decreased.
true
false
Question 21 1 pts
Credit terms of 1/10, n/30 means that:
if the invoice is paid within 1 day of its date, a 10% discount may be taken; otherwise the
total amount is due in 30 days.
if the invoice is paid within 10 days of its date, a 1% discount may be taken; otherwise the
total amount is due in 30 days.
a 1% discount may be taken for up to 30 days.
payment in full is due 10 days after date of the invoice.
Question 22 1 pts
A reversing entry should not be made for an adjusting entry to record
an accrued expense item that will involve future cash payments.
an accrued income item that will involve future cash receipts.
depreciation.
the accrued salaries.
Question 23 1 pts
The accountant of John’s Roofing has closed all of the temporary income statement
accounts. The accountant is now ready to close the Income Summary account. The
owner of the company is J. Lee. Using the Income Summary T-account below,
determine the correct closing entry the accountant needs to make in order to close
the account.
Income Summary
Debit Credit
12/31 beginning inventory 4,000 12/31 ending inventory 11,000
12/31 expenses 51,000 12/31 revenues 77,000

Income Summary 33,000
J. Lee, Capital 33,000



Question 24 1 pts
At the end of the first month of operations for SloMo Delivery Service, the business
had the following accounts: Accounts Receivable, $11,350; Prepaid Insurance, $400;
Equipment, $26,200 and Cash, $21,650. On the same date, SloMo owed the
following creditors: Simpson Supply Company, $17,000; Allen Office Equipment,
$14,500.
The total amount of Liabilities is:
$31,500
$28,100
$17,000
$14,500
Question 25 1 pts
Cash short or over would be reported as a selling expense in the operating expenses
section of a multiple-step income statement.
true
false
Question 26 1 pts
Which of the following is an example of an expense?
the receipt of cash from a credit customer
the payment of the monthly utility bill
an owner withdrawal for personal use
the payment of a creditor on account
Question 27 1 pts
The adjusting entry to record depreciation should be reversed at the start of a new
fiscal period to make subsequent financial record keeping easier.
true
false
Question 28 1 pts
The Daniel Insurance Agency reported revenues of $29,000 and expenses of

$31,000 for the current period. What was the final figure reported on the company’s
income statement?
$2,000 net income
$2,000 net loss
$29,000 net income
$31,000 net loss
Question 29 1 pts
At the end of its first year of operations, Shapiro’s Consulting Services reported net
income of $27,000. They also had account balances of: Cash, $16,000; Office
Supplies, $3,200; Equipment, $24,000 and Accounts Receivable, $8,000. The
owner’s total investment for this first year was $15,000 and the owner withdrew
$2,000 for personal use.
What are the total liabilities of Shapiro’s Consulting Services at the end of the first
year of operations?
$27,000
$42,000
$24,200
$11,200
Question 30 1 pts
An accountant charged the Repairs Expense account for a tool that cost $12. The
tool had an estimated useful life of 5 years; however, the accountant chose not to
depreciate it. The modifying constraint that the accountant followed was
objectivity.
conservatism.
industry practice.
materiality.
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7/17/2021 Quiz: INTERMEDIATE ACCOUNTING 1 PAPAT 2021
INTERMEDIATE ACCOUNTING 1 PAPAT 2021

Started:
Jul 17 at 12:45pm
Quiz Instructions
THAT IN ALL THINGS GOD MAY BE GLORIFIED!
Question 1 1 pts
On July 31. 2022, the bank statement of Rose Company had an ending balance of
P3 735 000. The following data were assembled in the course of reconciling the bank
balance:
The bank erroneously credited Rose Company for P21 000on July 25.
During the month, the bank charged back NSF checks amounting to P23 000 of
which P8 000 had been redeposited by July 28.
Collection for July 31 totaling P103 000 was deposited the following month.
Checks outstanding on July 31 amounted to P302 000.
Note collected by the bank for Rose Company was P80 000 and the
corresponding bank charge was P5 000.
What is the unadjusted cash in bank per ledger on July 31, 2022?
3,575,000
3,455,000
3,515,000
3,795,000
Question 2 1 pts
In preparing its bank reconciliation for the month of December 2019, Promotion
Company has the following information:
Balance per bank statement, December 31 P396,550
Deposit in transit, December 31 68,750
Outstanding checks, December 31 63,250
Promotions account erroneously credited by bank on
December 19 2,750
Bank service charges for December 550
What amount should be the balance of cash at December 31?
P402,050
P398,750
P399,300
P387,750
Question 3 1 pts
In reconciling the Cash in bank balance of Cadbury Company with the bank
statement for the month of November 2022, the following data are summarized: Book
debits for November, P800,000, including credit memo for notes collected last
October, P60,000; Book credits for November, P620,000, including NSF check of
P20,000 and service charge of P1,000 for October; Bank credits for November,
P700,000, including credit memo for the bank loan of P100,000 and October deposit
in transit for P80,000; Bank debits for November, P600,000, including outstanding
checks of P170,800 and November service charge of P1,200. How much is the
deposit in transit at the end of November?
P340,000
P220,000
P100,000
P40,000
Question 4 1 pts
The following information pertains to F Company’s accounts receivable at December

31, 2022.
Days outstanding Estimated Amt. %uncollectible
0-60 days 1,200,000 1%
60-120 days 900,000 2%
Over 120 days 1,000,000 6%
During 2022, F Company wrote off P70,000 in accounts receivable and recovered
P20,000 that had been written off in prior years. The December 31, 2021 allowance
for uncollectible accounts was P60,000.
Under the aging method, what amount of uncollectible accounts expense should F
Company report for 2022?
P70,000
P60,000
P90,000
P80,000
Question 5 1 pts
The following accounts were abstracted from G Company unadjusted trial balance on
December 31, 2023.
Accounts receivable P3,000,000
Allowance for doubtful accts. 10,000
Net credit sales 8,000,000
G Company estimated that 3% of the gross accounts receivable will become

uncollectible.
What should be the doubtful accounts expense for 2023?
P100,000
P240,000
P90,000
P80,000
Question 6 1 pts
On December 1, 2023, Hubby Company assigned specific accounts receivable

totaling P2,000,000 as a collateral for a P1,500,000, 12% note from a certain bank.
The entity will continue to collect the assigned accounts receivable. In addition to the
interest of the note, the bank also charged 5% finance fee deducted in advance on
the P1,500,000 value of the note. The December collections of assigned accounts
receivable amounted to P1,000,000 less cash discounts of P50,000. On December

31, 2023, the entity remitted the collections to the bank in payment for the interest
accrued on December 31,2023 and the note payable.
What amount of cash was received from the assignment of accounts receivable on
December 1, 2023?
1,425,000
1,500,000
1,900,000
2,000,000
Question 7 1 pts
On December 1, 2022, Hubby Company assigned specific accounts receivable

totalling P2,000,000 as a collateral for a P1,500,000, 12% note from a certain bank.
The entity will continue to collect the assigned accounts receivable. In addition to the
interest of the note, the bank also chared 5% finance fee deducted in advance on the
P1,500,000 value of the note. The December collections of assigned accounts
receivable amounted to P1,000,000 less cash discounts of P50,000. On December
31, 2022, the entity remitted the collections to the bank in payment for the interest
accrued on December 31,2022 and the note payable.
What amount should be disclosed as the equity of Bamboo Company in assigned

accounts on December 31, 3022?
435,000
500,000
270,000
450,000
Question 8 1 pts
During January of the current year, Metro Company which maintains a perpetual
inventory system, recorded the following information pertaining to its inventory;
Units Unit cost Total Cost Units on Hand
Balance on 1/1 10,000 100 1,000,000 10,000
Purchased 1/7 6,000 300 1,800,000 16,000
Sold on 1/20 9,000 7,000
Purchased 1/25 4,000 500 2,000,000 11,000
Under the moving average method, what amount should Metro report as inventory on
January 31?
3,900,000
P3,225,000
P3,300,000
P2,640,000
Question 9 1 pts
The inventory card of Lane Company as at February 28 is as follows:
Purchase Units Balance
Price Units Used Units
Jan 10 100 20,000 20,000
Jan 31 10,000 10,000
Feb 8 110 30,000 40,000
Feb 9 returns from
Factory (Jan 10 Lot) (1,000) 41,000
Feb 28 11,000 30,000
Using the weighted average method, what is the cost of inventory on
February 28?
P3,150,000
P3,120,000
P3,300,000
P3,180,000
Question 10 1 pts
On September 30, 2022, a fire at Brock Company’s warehouse caused severe

damage to its entire inventory. Brock Company has a gross profit of 30% on cost. The
following data are available for nine months ended September 30, 2022:
Inventory at Jan 1 P1,100,000
Net purchases 6,000,000
Net sales 7,280,000
A physical inventory disclosed usable damaged goods which can be sold for
P100,000. What is the estimated cost of goods sold for the nine months ended
September 30, 2022?
P5,500,000
P5,096,000
P5,600,000
P4,970,000
Question 11 1 pts
Chocolate Company uses the average retail method. On December 31, 2023, the
following information relating to the inventory was gathered:
Cost Retail
Inventory, Jan 1 P190,000 P450,000
Purchases 2,990,000 4,350,000
Purchase discounts 40,000
Freight in 150,000
Mark-ups 300,000
Markdowns 400,000
Sales 4,400,000
Sales return 100,000
Sales discount 50,000
Sales allowance 30,000
What is the estimated cost of the inventory on December 31, 2023?
P280,000
P315,000
P400,000
P245,000
Question 12 1 pts
On January 1, 2022, Butchie Company purchased a short term investment of 50,000

ordinary shares of Binkie Company for 32 per share. On December 31, 2022, the
market price of Binkie’s share was 23 per share reflecting a temporary decline in
market price. On Dec. 23, 2023, Butchie sold 32,000 shares of Binkie Company for
20 per share. What should be reported as loss on disposal of short term investment
in Dec. 31, 2023?
90,000
218,000
384,000
96,000
Question 13 1 pts
On January 1, 2023, Icefrog Company purchased 4,000 of P1,000 face value, 10%
bonds of Guinsoo Company for P4,270,600. The bonds will mature on January 1,
2024 pay interest semi-annually on January 1 and July 1. Bonds effective interest
rate is 8%. Icefrog Company measures its investment at amortized cost.
In its December 31, 2023 profit or loss, how much should Icefrog Company report as
interest income on the bonds?
P170,824
P169,657
P340,481
P160,000
Question 14 1 pts
Richman Co. purchased P300,000 of 8%, 5-year bonds from Carlin, Inc. on January
1, 2022, with interest payable on July 1 and January 1. The bonds sold for P312,474
at an effective interest rate of 7%. The business model of Richman is both to collect
contractual cash flows arising from principal and interests and sell financial assets.
Using the effective interest method, Richman Co. decreased the non-trading Debt
Investments account for the Carlin, Inc. bonds on July 1, 2022 and December 31,
2022 by the amortized premiums of P1,062 and P1,098, respectively. At December
31, 2022, the fair value of the Carlin, Inc. bonds was P318,000. What should
Richman Co. report as unrealized gain to other comprehensive income for the year
2022?
P2,160
P5,526
P0
P7,686
Question 15 1 pts
At December 31, 2023, Jeter Corp. had the following equity investments that were
purchased during 2023, its first year of operation:

Unrealized Gain
Cost Fair Value
(Loss)
FVPL Investments:
Security A P 90,000 P 60,000 P(30,000)
B 15,000 20,000 5,000
Totals P105,000 P 80,000 P(25,000)

FVOCI Investments:
Security Y P 70,000 P 80,000 P 10,000
Z 85,000 55,000 (30,000)
Totals P155,000 P135,000 P(20,000)
Fair value adjustments at December 31, 2023 should be established with a

corresponding charge against
INCOME: P45000; EQUITY:P0
INCOME:P25000; EQUITY: P20000
INCOME:P30000; EQUITY: P30000
INCOME:25000; EQUITY:P0
Question 16 1 pts
The following information is available for Raphael on August 31, 2023:
Cash per bank statement balance, August 31, 2023 P400,000

Note, including interest of P1,000 collected by bank
(not yet taken up in the 21,000

books)
NSF check returned with the bank statement (not yet taken up in the
5,000
books)
Deposit in transits: as of July 31, 2023 15,000
Deposit in transits: as of August 31, 2023

20,000

Outstanding checks as of August 31, 2023 (including P5,000 certified

30,000
checks)
Bank service charge for August 2023

500

A deposit made by Raphael's customer was erroneously
credited to Rafael 3,000

Company
A check drawn against the account of Ralph Company was

erroneously debited against Raphael Company's account by the 5,000
bank
Customer checks deposited during August, P3,000 was recorded as P30,000 by

the bank
Check No. 23456 for P25,600 was recorded in the disbursements journal as
P26,500
Check No. 23459 for P58,500 was recorded in the disbursements journal as
P55,800
The unadjusted balance per ledger is
P437,700
P377,300
P357,300
P362,300
Question 17 1 pts
During 2023, the City State Savings Bank purchased marketable equity securities as
a short-term investment and classified them as available for sale securities. The cost
and market value at December 31, 2023 are as follows:
Security Shares Cost 12/31/2023

Market value
X 200 P84,000 P102,000
Y 2,000 430,000 459,000
Z 4,000 945,000 885,000
City State Savings Bank sold the investment in security Y on March 9, 2023 for P250
per share.
How much should City State Savings Bank report as realized gain on sale?
70,000 LOSS
70,000 GAIN
41,000 GAIN
Question 18 1 pts
During 2020, Berry Corporation purchased several equity securities, all of which are
designated as equity investments at fair value through profit or loss. The cost and
market values at December 31, 2020 were as follows:
Security Cost Market
AB Company ordinary (200 shares) P28,000 P34,000
CD Company ordinary (1,000 shares) 170,000 153,000
EF Company ordinary (2,000 shares) 315,000 295,000
Appropriate valuation entry was made on December 31, 2020. On January 31, 2021
Berry sold 1,000 ordinary shares of CD Company at P155 per share, incurring P900
in broker’s commission and taxes.
On December 31, 2021, the market values of the ordinary shares of AB Company
and EF Company were P150 and P153 per share respectively.
What is the unrealized gain (loss) reported in the stockholders' equity section for the
year 2020?
31,000 LOSS
40,000 LOSS
40,000 GAIN
Question 19 1 pts
During 2020, Citibank Corporation purchased several equity securities, all of which
are designated as equity investments at fair value through profit or loss. The cost and
market values at December 31, 2020 were as follows:
Security Cost Market
AB Company ordinary (200 shares) P28,000 P34,000
CD Company ordinary (1,000 shares) 170,000 153,000
EF Company ordinary (2,000 shares) 315,000 295,000
Appropriate valuation entry was made on December 31, 2020. On January 31, 2021
Citibank sold 1,000 ordinary shares of CD Company at P155 per share, incurring
P900 in broker’s commission and taxes.
On December 31, 2021, the market values of the ordinary shares of AB Company
and EF Company were P150 and P147 per share respectively.
What is the equity investment at FVPL balance reported at December 31, 2021
statement of financial position?
343,000
239,000
329,000
324,000
Question 20 1 pts
On October 1, 2020, Michael Company purchased 30,000 shares of Jackson

Company at P180 per share that reflected book value as of that date. At the time of
the purchase, Jackson had 100,000 ordinary shares outstanding. Michael had no
ownership interest in Jackson before the purchase. The nine months ending
September 30, 2020 of Jackson recorded profit of P2,960,000. For the year ended
December 31, 2020, Jackson reported profit of P4,800,000. Jackson paid Michael
dividends of P120,000 on December 31, 2020.
For the year 2021, Jackson reported profit of P2,800,000 and paid dividends of
P1,700,000 to its ordinary shareholders.
On January 2, 2022, Michael sold 20,000 ordinary shares of Jackson for P250 per
share. For year ended December 31, 2022, the reported profit of Jackson was
P4,000,000 and dividends of P40,000 was paid to Michael. Market value of the
remaining shares at this time is P2,300,000.
What is the investment carrying value at December 31, 2021?
5,970,000
5,832,000
6,162,000
5,400,000
Question 21 1 pts
Egg Company purchased P8,000,000, 11%, 5-year bonds on April 1, 2022, when the
market interest was 10%. The financial instruments meet the business model test and
are classified as debt investments at amortized cost. The bonds are purchased at
P8,295,000 and pay interest annually on March 31. Egg Company uses the effective
interest method of amortization and its accounting year ends on December 31.
At how much were the debt investments reported in the December 31, 2023
statement of financial position?
8,188,950
8,244,500
8,257,125
8,202,837
Question 22 1 pts
On the December 31, 2023 balance sheet of Yount Co., the current receivables
consisted of the following:
Trade accounts
receivable P
75,000
Allowance for uncollectible

accounts (2,000)
Claim against shipper for goods lost in transit (November 2023)

3,000
Selling price of unsold goods sent by Yount on consignment
at 130% of cost (not included in Yount 's ending inventory)

26,000
Security deposit on lease of warehouse used for storing
some
inventories
30,000
Total
P132,000
At December 31, 2023, the correct total of Yount 's current net receivables was
P102,000.
P106,000.
P132,000.
P76,000.
Question 23 1 pts
May Co. prepared an aging of its accounts receivable at December 31, 2023 and
determined that the net realizable value of the receivables was P300,000. Additional
information is available as follows:
Allowance for uncollectible accounts at 1/1/23—credit balance

P 34,000
Accounts written off as uncollectible during 2023

23,000
Accounts receivable at 12/31/23

325,000
Uncollectible accounts recovered during 2023

5,000
For the year ended December 31, 2023, May's uncollectible accounts expense would
be
P23,000.
P25,000.
P9,000.
P16,000.
Question 24 1 pts
On October 1, 2022, Ming Co. purchased 600 of the P1,000 face value, 8% bonds of
Loy, Inc., for P702,000, including accrued interest of P12,000. The bonds, which
mature on January 1, 2029, pay interest semi-annually on January 1 and July 1. Ming
used the effective interest method of amortization and appropriately recorded the
bond . On Ming's December 31, 2023 balance sheet, the carrying value of the bonds
is
P684,000.
P681,600.
P672,000.
P690,000.
answer not given
Question 25 1 pts
On July 1, 2022, Clarrian Company paid P1,198,000 for 10% bonds with a face
amount of P1,000,000 to be held to maturity. Interest is paid on June 30 and Dec 30.
The bonds were purchased to yield 8%. The entity used the effective interest method
to recognized interest income from this investment. What is the carrying amount of
the bond investment on December 31, 2022?
1,198,000
1,195,920
1,193,050
1,207,900
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7/17/2021 Quiz: PARTNERSHIP ACCOUNTING 1 PAPAT 2021
PARTNERSHIP ACCOUNTING
You started 1 due,
this quiz near when it was PAPAT 2021
so you won't
 have the full amount of time to take the quiz. 
Started:
Jul 17 at 1:46pm
Quiz Instructions
Question 1 1 pts
1. How much was the cash balance immediately before the non-cash assets were
sold?
P120,000
P80,000
P60,000
P100,000
Question 2 1 pts
On June 1, 2016, May and April formed a partnership. May is to invest her assets at
fair values, transfer her liabilities and is to contribute sufficient cash to bring her total
capital to P210,000 which is 70% of the total capital of the partnership. Details
regarding the book values of May’s business assets and liabilities and their
corresponding fair values are:
Book Values Fair Values
Accounts receivable (net) 53,800 53,000
Inventory 98,400 107,000
Equipment 25,800 34,000
Notes Payable 56,000 56,000
April agrees to invest cash of P42,000 and merchandise at its current price.
You started this quiz near when it was due, so you won't
1. What is the amount of cash to be reported in the book of the partnership?
72,000
30,000
141,000
114,000
Question 3 1 pts
The net income of the West and Allen partnership is P180,000. The partnership
agreement
specifies that West and Allen have an annual salary allowance of P48,000 and
P72,000, respectively. The partnership agreement also specifies an interest
allowance of 10% on capital balances at the beginning of the year. Each partner had
a beginning capital balance of P120,000. Any remaining net income or net loss is
shared equally.
What is the balance of Allen's Capital account at the end of the year after net income
of P180,000 has been distributed?
222,000
102,000
192,000
210,000
Question 4 1 pts
A partnership
is dissolved only by the withdrawal of a partner.
is dissolved upon the acceptance of a new partner.
has unlimited life.
dissolution means the business must liquidate.
Question 5 1 pts
1. The partnership agreement for the partnership of Mayo and Pack provided for
salary allowances of P45,000 to Mayo and P35,000 to Pack, and the residual
profit was allocated equally. During 2009, Mayo and Pack each withdrew cash
equal to 80 percent of their salary allowances. If during 2009 the partnership had
profits in excess of P100,000 without regard to salary allowances and
withdrawals, Mayo’s equity in the partnership would
Increase more than Pack’s.
Decrease more than Pack’s.
Increase the same as Pack’s.
Decrease the same as Pack’s.
Question 6 1 pts
1. If the partnership agreement does not specify how income is to be allocated,

profits should be allocated
Equally
Based on court decision
In proportion to the weighted-average of capital invested during the period


Based on original
have thecapital
fullinvestment
amount of time to take the quiz. 
Question 7 1 pts
A partnership has the following capital balances
BOOTS 60,000
WITH-THE 30,000
FUR 90,000
Profits and losses are split as follows: BOOTS, 20%, WITH-THE 30% and FUR,
50%. Fur wants to leave the partnership and is paid P100,000 from the business
based on provisions in the articles of partnership.
1. If the partnership uses the bonus method, what is the balance of WITH-THE’s
capital account after FUR withdraws?
27,000
24,000
36,000
33,000
Question 8 1 pts
1. ROCK was credited with a salary of P72,000 as managing partner and interest of
P12,000 on her capital contribution. She was charged with P6,000 as her share in
the negative balance on a 1:2 ratio. The capital contributions are P100,000 for
ROCK You started for
thisSTAR.
quiz near when it was
was due, so you won'tshare of STAR?
 andhave
P200,000 How much the profit
the full amount of time to take the quiz.
or loss 
12,000
(24,000)
(12,000)
36,000
Question 9 1 pts
Wayne invests for one-half equity in the firm by paying the old partners P200,000,
with an agreed partnership capital upon admission of P600,000 . RAZ, AL and GU
share profits and losses in the ratio of 1:1:2 respectively. Upon admission of Queen,
ratio will now be based on beginning capital. Capital Balances before admission are
P100,000, P100,000 and P200,000 respectively. How much is Raz's capital balance
upon admission of Wayne?
75,000
100,000
125,000
50,000
Question 10 1 pts
Ellen joins the partnership of John and Lloyd by paying P300,000 in cash. If the net
assets of the partnership are still the same amount after Ellen has been admitted as a
partner, then Ellen
must have received a bonus upon being admitted.
must have been admitted by purchase of a partner's interest.


must have been
haveadmitted
the full by investment
amount of assets.
of time to take the quiz. 
could have been admitted by an investment of assets or by a purchase of a partner's

interest.
Question 11 1 pts
Lorna, Olga, Kira and Ira are liquidating their partnership. The capital balances prior
to liquidation are P100,000, P200,000, P50,000 and P50,000, respectively.
Partnership had cash balance of P60,000, noncash assets amounted to P540,000
with an outstanding payables of P200,000. All, except Kira, were deemed solvent.
PnL distribution agreement was 1:2:3:4.
If the noncash assets were sold off for P300,000, how much was the cash received
after liquidation by Kira?
58,571.43
145,714.29
72,857.14
Question 12 1 pts
The following maybe causes of dissolution, except:
Retirement of partner
Death of partner
admission of new partner
All are causes of dissolution

Question 13 1 pts
Mai, Nit, Tin, and Yulo formed a partnership. Their capital contribution for the year
were P200,000, P300,000, P400,000, and P0, being Yulo as an industrial partner.
Profit sharing arrangement are as follows:
Interest of 10% of capital be given to all partners

Salary of P20,000 per month be given to Yulo and P5,000 per month for the rest.
Bonus of 20% of net income after interest and salary be given to Yulo
Remainder would be distributed equally.
If net income for the year amounted to P600,000, how much is the bonus given to
Yulo?
100,000
18,000
120,000
80,000
Question 14 1 pts
Mai, Nit, Tin, and Yulo formed a partnership. Their capital contribution for the year
were P200,000, P300,000, P400,000, and P0, being Yulo as an industrial partner.
Profit sharing arrangement are as follows:
Interest of 10% of capital be given to all partners

Salary of P20,000 per month be given to Yulo and P5,000 per month for the rest.
Bonus of 20% of net income after interest, salary and bonus be given to Yulo
Remainder would be distributed equally.
If net income for the year amounted to P600,000, how much is the bonus given to
Yulo?  You started this quiz near when it was due, so you won't 
have the full amount of time to take the quiz.
18,000
15,000
120,000
Question 15 1 pts
Which of the following statements about partnerships is incorrect?
The industrial partner does not share in the losses of the partnership.
If a partnership is terminated, the assets do not legally revert to the original contributor.
Right over profits and right over assets represent claims of partners that are allocated based
on partners’ capital accounts.
Partnership assets are co-owned by partners.
Question 16 1 pts
with an outstanding payables of P200,000. All, except Kira and Ira, were deemed
solvent. PnL distribution agreement was 1:2:3:4.
If the noncash assets were sold off for P300,000, how much was the capital returned
to Ira?
0
 
53,333.33 have the full amount of time to take the quiz.
72,857.14
106,666.67
Question 17 1 pts
1. A partnership cannot use salary allowances or interest allowances as a way of

determining profit share if the operation is a net loss.
2. In a limited partnership the general partner has unlimited liability.
Which of the following is true?
statement 1 is true
Both statements are false
Statement 2 is true
Both statements are true
Question 18 1 pts
Dina and Toto decided to combine their talents and started Dina Toto Learning
Center. The following are the assets of the following partners:
Book Agreed Book Agreed

Dina's Toto's
Value value Value value
Cash P150,000 P150,000 Cash P20,000 P20,000
AR- NET 200,000 100,000 AR-NET 0 0
Inventory 350,000 200,000 Inventory 0 0
Furniture-net 200,000 150,000 Building-net 450,000 600,000
Land 0 0 Land 230,000 480,000

Accounts
 Mortgage 
have300,000
the full amount of time to take the quiz. 100,000
200,000 100,000
payable payable
.If the agreed capital upon formation is equal to that the contributed capital and the
partners have an equal interest over the partnership, how much is the bonus to be
credited to Toto's capital upon formation?
400,000
700,000
300,000
Question 19 1 pts
with an outstanding payables of P200,000. All, except Kira, were deemed solvent.
PnL distribution agreement was 1:2:3:4.
If the noncash assets were sold off for P300,000, how much was the share in the loss
of realization by Ira?
72,000
24,000
96,000
48,000
Question 20 1 pts
1. In theabsence of a partnership agreement, the law says that income of a

have the full amount of time to take the quiz.
partnership will be shared equally by the partners.
2. If partners devote their time and services to their partnership, their salaries are
expensed on the income statement.
Which of the following is true?
Both statements are true
Statement 1 is true
Statement 2 is true
Both statements are false
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7/17/2021 Quiz: COST ACCOUNTING PAPAT 2021
COST ACCOUNTING PAPAT 2021

Started:
Jul 17 at 3pm
Quiz Instructions
THAT IN ALL THINGS GOD MAYBE GLORIFIED!
Question 1 1 pts
Noah Corp. estimates factory overhead to be P800,000 for the coming year. It was
also estimated that the company would incur material cost of P1,200,000. It will also
estimated to incur P600,000 for direct labor at 20,000 direct labor hours. The
company estimates that they will use 40,000 machine hours.
Actual cost for the year are as follows: Materials –P 1,000,000; Direct labor cost at
30,000 direct labor hours consumed – P750,000. Machine hours – 30,000 hours
1. Using answer in number 22, if actual overhead was P1,150,000 by how much is
overhead over or (under) applied?
(P350,000)
P350,000
P50,000
(P50,000)
Question 2 1 pts
1. Work in Process is debited and Materials is credited for:
the application of materials overhead
the return of materials to the storeroom
the issuance of indirect materials into production
the issuance of direct materials into production
Question 3 1 pts
1. If the company uses as its base for overhead is direct labor cost, and actual
overhead incurred was P1,250,000, by how much is it over or (under) applied?
P1,000,000
(P250,000)
P250,000
(P1,000,000)
Question 4 1 pts

1. If the company uses as its base for overhead is machine hours, how much is the
overhead rate?
P40
P50
P20
P26.67
Question 5 1 pts
1. If the company uses machine hours as basis for estimating overhead, by how
much is overhead over or under applied?
P100
(P100)
P200,000
(P200,000)
Question 6 1 pts
Mabigat Machinery had the following experience regarding power costs:
Month Machine hours Power cost
Jan. 300 P680
Feb. 600 720
Mar. 400 695
Apr. 200 640
1. Assume that management expects 500 machine hours in May. Using the
high-low method, calculate May’s power cost using machine hours as the basis for
prediction.
P710
P1,320
P700
P705
Question 7 1 pts
1. In job order costing, when materials are returned to the storekeeper that were
previously issued to the factory for cleaning supplies, the journal entry should be
made to:
Work in Process; Materials
Purchases Returns; Work in Process
Materials; Factory Overhead
Materials; Work in Process
Question 8 1 pts
1. Malay Co. developed the following equation to predict certain components of its
budget for the coming period:
Costs = P50,000 + (P5 x direct labor hours)
The P5 would approximate:
total cost
fixed cost per direct labor hour
variable costs per direct labor hour
the coefficient of determination
Question 9 1 pts
1. In relationship to changes in activity, fixed overhead changes
in total: yes; per unit: no
in total: no; per unit: no
in total: no; per unit: yes
in total: yes; per unit: yes
Question 10 1 pts
1. Finished Goods is debited and Cost of Goods Sold is credited for:
return of materials to the supplier
return of goods by the customer
sale of a customer order
transfer of completed goods to the customer
Question 11 1 pts
1. Supplies needed for use in the factory are issued on the basis of:
job cost sheets
time tickets
materials requisitions
factory overhead analysis sheets
Question 12 1 pts
1. If the company uses as its base for overhead is material cost, how much is the
overhead rate?
0.80
0.67
0.83
0.70
Question 13 1 pts
1. If the company uses as its base for overhead is direct labor hours, how much is
their applied overhead for the year?
P800,000
P1,200,000
P20
P40
Question 14 1 pts
The following information was available from the inventory records of the Rapsa
Company for January 2019:

Unit Total
Units
Cost Cost
Balance at January 1, 2019..................... 2,000 P 8.725

P17,450
Purchases:
January 6, 2019.................................... 1,800

10.25 18,450
January 26, 2019................................. 4,200 10.50

44,100
Sales:
January 10, 2019................................. 1,900
January 28, 2019................................. 4,100
Balance at January 31, 2019................... 2,000
1. How much is the cost of goods sold using FIFO method?
P59,655.74
P60,000
P59,000
P62,000
Question 15 1 pts
The following information has been taken from the cost records of Lo Co. for the past
year:
Raw material used in production P326
Total manufacturing costs charged to
production during the year (includes
direct material, direct labor, and
overhead equal to 60% of direct labor cost) 686
Cost of goods available for sale 826
Selling and Administrative expenses 25

Inventories Beginning Ending
Raw Material P75 P 85

Work in Process 80 30
Finished Goods 90 110
1. The cost of raw material purchased during the year was
P411.
P336
P316
P360
Question 16 1 pts
All of the following increase (are debited to) the Work-in-Process Control account
EXCEPT:
actual plant insurance costs
direct materials
direct manufacturing labor
allocated manufacturing overhead costs
Question 17 1 pts
The Macon Company uses the high-low method to determine its cost equation. The
following information was gathered for the past year:
Machine Direct Labor

Hours Costs
Busiest month (June) 14,000 P 200,000
Slowest month (December) 6,000 P 120,000
What is the annual fixed cost component of the direct labor cost of the company?
720,000
60,000
10
1,440,000
Question 18 1 pts
The Profit and Loss Statement of MIMING Mining Inc. includes the following
information
for the current fiscal year.
Sales P160,000
Gross profit 48,000

Year-end finished goods inventory 58,300
Opening finished goods inventory 60,190
The cost of goods manufactured by MIMING for the current fiscal year is
49,890
110,110
46,110
113,890
Question 19 1 pts
The following are the information for Bantay Industries:
Purchases for the year P250,000
Increase in raw materials inventory 100,000
Decrease in work in process inventory 50,000
Increase in finished goods inventory 75,000
Direct labor 100% of direct materials used
Overhead 75% of direct labor
How much is the total manufacturing cost of the company?
300,000
387,500
412,500
262,500
Question 20 1 pts
For a manufacturing company, direct labor costs may be included in:
direct materials inventory, work-in-process inventory, and finished goods inventory accounts
both work-in-process inventory and finished goods inventory
merchandise inventory only
direct materials inventory only
Question 21 1 pts
How much is the cost of goods manufactured of the company?
412,500
462,500
662,500
562,500
Question 22 1 pts
Blair Company has found that its total electricity cost has both a fixed component and
a variable component within the relevant range. The variable component seems to
vary directly with the number of units produced. Which one of the following
statements concerning Blair’s electricity cost is incorrect?
The total electricity cost will increase as production volume increases.
The variable electricity cost per unit of production will remain constant as production volume
increases.
The total electricity cost per unit of production will increase as production volume increases.
The fixed electricity cost per unit of production will decline as production volume increases.
Question 23 1 pts
If each furnace requires a hose that costs P20 and 2,000 furnaces are produced for
the month, the total cost for hoses is:
considered to be an indirect variable cost
considered to be a direct variable cost
considered to be an indirect fixed cost
considered to be a direct fixed cost
Question 24 1 pts
A painting contractor maintains a job-order cost system. Job costs are accumulated
by tracking the actual cost of paint and other materials used on each job, as well as
the actual cost of wages earned by the painters on each job. In addition, overhead is
applied to each job by using a predetermined rate based on the actual painters’
wages. A painter earned P168 today by working on Job 08-45. In computing prime
cost and conversion cost for Job 08-45, how would the wages earned today by the
painter be classified?
As a component of both prime and conversion cost.
As a component of neither prime cost nor conversion cost.
As a component of conversion cost but not as a component of prime cost.
As a component of prime cost but not as a component of conversion cost.
Question 25 1 pts
How much is the prime cost of the company?
412,500
300,000
262,500
150,000
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7/17/2021 Quiz: CONFRA 1 PAPAT 2021
CONFRA 1 PAPAT 2021

Started:
Jul 17 at 9:47am
Quiz Instructions
Question 1 1 pts
1. When 20% stock dividend is declared and issued,
There is no effect on contributed capital, earned capital and total shareholders’ equity
Contributed capital increases, earned capital decreases, but total shareholders’ equity is
unaffected
Contributed capital decreases, earned capital increases, but total shareholders’ equity is
unaffected.
Contributed capital increases, earned capital increases, and the total shareholders’ equity
increases.
Question 2 1 pts
1. Which of the following provides the best explanation for why warranty expense
should be estimated recorded in the year of the related sales?
Materiality
Matching
Revenue recognition
Full disclosure
Question 3 1 pts
1. At the end of the current reporting period, an entity carried a receivable from a
major customer. The customer declared bankruptcy after the end of reporting
period but prior to authorization of financial statements. How should the entity
account for this event?
Disclose in the notes the fact that the customer declared bankruptcy.
Reverse the sale pertaining to this receivable in the comparative statement for the prior
period and treat this as an error.
Make a provision for this post-reporting period event.
Ignore the event.
Question 4 1 pts
1. Under PAS 1, which of the following is true about PFRS requirements?
There are no specific requirements regarding comparative financial statements.
Prior year comparative financial statements are required.
Income statements for three years are required.
Statements of financial position for three years are required.
Question 5 1 pts
1. An unrealized holding gain on a company's FV-OCI securities should be reflected

in the current financial statements as
a note or parenthetical disclosure only.

a current gain resulting from holding securities.
an extraordinary item shown as a direct increase to retained earnings.
other comprehensive income and included in the equity section of the balance sheet.
Question 6 1 pts
1. IFRS 5 states that a non-current asset that is to be abandoned should not be

classified as held for sale. The reason for this is because:
It is unlikely that there will be an active market for he noncurrent asset.
Its carrying amount will be recovered principally through continuing use.
It is unlikely that the noncurrent asset will be sold within 12 months.
It is difficult to value,
Question 7 1 pts
1. Which information should be disclosed in the summary of significant accounting

policies.
Guarantee of indebtedness of others.
Refinancing of debt subsequent to the end of reporting period.
Criteria for determining which investments are treated as cash equivalents.
Adequacy of pension plan assets relative to vested benefits.
Question 8 1 pts
1. Non-Trading equity securities shall be classified
As at fair value through other comprehensive income
As at fair value through profit or loss.
Based on irrevocable choice at the reporting date during period of acquisition as either at fair
value through profit or loss or at fair value through other comprehensive income.
Based on irrevocable choice at date of initial recognition either at fair value through profit or
loss or at fair value through other comprehensive income
Question 9 1 pts
1. An investor purchased a bond as an amortized cost investment on Jan 2. The

investor’s carrying value at the end of the first year would be highest if the bond
was purchased at
Premium and amortized by the straight-line method.
Discount and amortized by the straight-line method.
Discount and amortized by the effective interest method.
Premium and amortized by the effective interest method
Question 10 1 pts
It is a decrease in economic benefit during the accounting period related to a

decrease in asset or an increase in liability that results in decrease in equity other
than distribution to equity participants.
Liability
Asset
Expense
Liability
Question 11 1 pts
1. Which of the following liabilities is not contingent?
A liability to pay any adverse judgement for a product liability case currently on appeal.
A liability to pay for books received by the college bookstore; terms allow for the return for full
refund of any books not sold.
A liability to pay pension benefits if a specific employee lives to retirement.
A liability to replace specific defective television set already returned to the manufacturer.
Question 12 1 pts
1. Under PAS 8, which of the following is the first step within the hierarchy of
guidance when selecting accounting policies?
Apply a standard from PFRS if it specifically relates to the transaction, other event or
condition.
Apply the requirements in PFRS dealing with similar and related issues.
Consider the applicability of the definitions, recognition criteria and measurement concepts in
the Conceptual Framework.
Consider the most recent pronouncements of other standard setting bodies.
Question 13 1 pts
1. The most common method of recording depletion for accounting purposes is the
percentage depletion method.
units-of-production method.
straight-line method.
decreasing charge method.
Question 14 1 pts
1. Which is not acceptable in reporting other comprehensive income?
Single statement of comprehensive income
Note to financial statements
Separate statement of comprehensive income.
Statement of changes in equity
Question 15 1 pts
1. The notes to the financial statements should not be used to
Describe the principles and methods peculiar to the industry.
Describe depreciation method employed
Describe significant accounting policies.
Correct an improper presentation in the financial statements.
Question 16 1 pts
1. What is the purpose of reporting comprehensive income?
To report a measure of overall entity performance.
To combine income from continuing operations with income from discontinued operations.
To report changes in equity due to transactions with owners.
To replace a net income with a better measure.
Question 17 1 pts
1. A conceptual framework for financial reporting
An embodiment of generally accepted accounting principles that guide users of financial

statements in assessing the reliability of financial statements
Theoretical foundation that guides the financial reporting standards council, preparers and
users of financial accounting information in the preparation and presentation of financial
statements.
A statement of financial accounting standards that deal with the presentation of financial
statements.
A basic accounting assumption that guides the accountants in the preparation of financial
statements.
Question 18 1 pts
1. Where there is a production cycle of more than one year for a biological asset,
IAS 41 encourages separate disclosure of the
Both the physical change and price change.
Physical change only.
Total change in value
Price change only
Question 19 1 pts
1. Goods in transit which are shipped f.o.b. destination should be
included in the inventory of the seller.
included in the inventory of the shipping company.
none of these.
included in the inventory of the buyer.
Question 20 1 pts
1. An operating segment is a reportable segment if
the absolute amount of its operating profit or loss is 10% or more of the company's combined
operating profit or loss.
its operating profit is 10% or more of the combined operating profit of profitable segments.
its operating loss is 10% or more of the combined operating losses of segments that incurred
an operating loss.
none of these.
Question 21 1 pts
1. Net realizable value is
Estimated selling price less estimated cost to complete
Estimated selling price
Estimated selling price less estimated cost to complete and estimated cost to sell.
Current replacement cost
Question 22 1 pts
1. An unrealized holding gain on a company's FV-OCI securities should be reflected

in the current financial statements as
other comprehensive income and included in the equity section of the balance sheet.
an extraordinary item shown as a direct increase to retained earnings.
a current gain resulting from holding securities.
a note or parenthetical disclosure only.
Question 23 1 pts
1. An entity has several subsidiaries that operate in a hyperinflationary economy

which uses the zloty as the local currency. Management wishes to show the
financial statements in US dollars. Many of the operations are within countries
that are not hyperinflationary and these subsidiaries use the euro as the functional
currency. Under PAS 29, what currency should the entity use to present the
consolidated financial statements?
The euro
The US dollar
The zloty
The entity may use any currency
Question 24 1 pts
1. Which is not within the definition of an intangible asset?
Identifiable non-monetary asset without physical substance.
A resource from which future economic benefits are expected to flow to the entity.
Held for use in the production or supply of goods or services, for rental to others, or for
administrative purposes.
A resource controlled by an entity as a result of past events.
Question 25 1 pts
1. When a company holds between 20% and 50% of the outstanding stock of an
investee, which of the following statements applies?
The investor should always use the fair value method to account for its investment.
The investor must use the fair value method unless it can clearly demonstrate the ability to
exercise "significant influence" over the investee.
The investor should use the equity method to account for its investment unless circum-
stances indicate that it is unable to exercise "significant influence" over the investee.
The investor should always use the equity method to account for its investment.
Question 26 1 pts
1. The cost of an intangible asset includes all of the following except
all of these are included.
purchase price.
other incidental expenses.
legal fees.
Question 27 1 pts
1. If a dividend is declared after the balance sheet date but before the financial
statements are authorized for issue, the dividend is:
Recognized as a liability at the balance sheet date
Not recognized as a liability at the balance sheet date
Recorded as a direct reduction of equity at the balance sheet date
Recorded as a reduction against the asset “cash” at balance sheet date.
Question 28 1 pts
A journal entry that contains more than two accounts is called
A posted journal entry
A compound journal entry
An erroneous journal entry
An adjusting journal entry
Question 29 1 pts
1. Changes in accounting policy are
Permitted if the change will result in a more reliable and more relevant presentation of the
financial statements.
Permitted if the entity encounters new transactions, events or conditions that are
substantively different from existing or previous transactions.
Required if an alternate accounting policy gives rise to a material change in assets, liabilities
or the current year net income.
Required for all material transactions.
Question 30 1 pts
1. Which of the following is accounted for under IAS 41?
Processed fruit
Sugar
Apples
Sausages, cured hams
Question 31 1 pts
Preparation of consolidated financial statements when a parent-subsidiary

relationship exists is an example of the
comparability characteristic.
economic entity assumption.
relevance characteristic.
neutrality characteristic.
Question 32 1 pts
The objectives of financial reporting include all of the following except to provide
information that
is useful to the Internal Revenue Service in allocating the tax burden to the business
community.
is helpful in assessing future cash flows.
is useful to those making investment and credit decisions.
identifies the economic resources (assets), the claims to those resources (liabilities), and the
changes in those resources and claims.
Question 33 1 pts
The two primary qualities that make accounting information useful for decision
making are
materiality and timeliness.
reliability and comparability.
comparability and consistency.
relevance and reliability.
Question 34 1 pts
Application of the full disclosure principle
is theoretically desirable but not practical because the costs of complete disclosure exceed
the benefits.
is violated when important financial information is buried in the notes to the financial
statements.
requires that the financial statements be consistent and comparable.
is demonstrated by the use of supplementary information presenting the effects of changing

prices.
Question 35 1 pts
Which of the following is an implication of the going concern assumption?
The historical cost principle is credible.
Depreciation and amortization policies are justifiable and appropriate.
All of these.
The current-noncurrent classification of assets and liabilities is justifiable and signify-cant.
Question 36 1 pts
Information is neutral if it
can be compared with similar information about an enterprise at other points in time.
is free from bias toward a predetermined result.
provides benefits which are at least equal to the costs of its preparation.
would have no impact on a decision maker.
Question 37 1 pts
Revenue generally should be recognized
at the end of production.
at the time of cash collection.
cwhen realized.
when realized or realizable and earned.
Question 38 1 pts
Which of the following is not an objective of financial reporting?
To provide information that is helpful to investors and creditors and other users in assessing
the amounts, timing, and uncertainty of future cash flows.
To provide information that is useful to those making investment and credit decisions.
All of these are objectives of financial reporting.
To provide information about economic resources, the claims to those resources, and the
changes in them.
Question 39 1 pts
According to Statement of Financial Accounting Concepts No. 2, which of the

following relates to both relevance and reliability?
Usefulness
All of these
Materiality
Understandability
Question 40 1 pts
Proponents of historical cost ordinarily maintain that in comparison with all other
valuation alternatives for general purpose financial reporting, statements prepared
using historical costs are more
reliable.
conservative.
indicative of the entity's purchasing power.
relevant.
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CORPORATION ACCOUNTING PAPAT 2022

Started: Jul 16 at 8:37am

"COURAGE COMBINED WITH INTEGRITY IS

Which of the following accounting principle is applied in recording properties received

Issued to delinquent subscriber

Issued in the name of the corporation

Reverted back to unsubscribed shares

Decrease on the date of payment

Not affected on the date of declaration

Increase on the date of declaration

Not affected on the date of payment

Dividends in arrears on preference shares are reported in the financial statements a

Reduction from retained earnings

Footnote to financial statements

Treasury shares are reported as

Contra shareholders’ equity

A corporation declared dividends on December 1 payable on January 15 to

Is not affected on December 1

Is not affected on December 30

The number of treasury shares is equal to the difference between

Issued and unissued shares

Authorized shares and unissued shares

Issued and outstanding shares

Authorized shares and issued shares

A non-cash asset received in exchange for share capital is recorded at

the higher of its book value and fair market value

its fair market value

its book value

the lower of its book value and fair market value

Preference share capital usually caries the right to vote

Share premium per share

Earnings per share

Book value per share

Which of the following is NOT typically a characteristic of preference shares?

Preference over ordinary shareholders during liquidation

Cumulative and callable terms

Preference as to voting rights

Additional to share capital

Deduction from cash

Addition to share premium

Payment in full of the subscribed shares

Declaration of a share capital dividend

Purchase of treasury shares

Ordinary share, P5 par value,

May 1 – 2,000 treasury shares were sold for P20,000

Oct. 15 – There was a 3-for-2 share split

How many shares are outstanding at December 31, 2019?

The capital accounts of PSS Co. on January 1, 2019 are as follows:

5% Preference share capital, P100 par, 50,000

1. Reacquired 5,000 ordinary shares at P16

10% Preference Share Capital, P100 par value, P1,000,000

Ordinary Share Capital, P50 par value, P1,000,000

Retained Earnings, P2,500,000

Dec. 29, 2018 – Issued 40,000 shares at P105 per share

How much is the total shareholders' equity?

The statement of financial position of Ace Company reported the following:

8% Preference share capital, P50 par value,

The Reconstruction Corporation was organized on January 1, 2019 with authorized

Preference Share Capital P1,080,000

December 2 – Purchased 6,000 treasury shares at P13 per share

The capital accounts of PSS Co. on January 1, 2019 are as follows:

5% Preference share capital, P100 par, 50,000

1. Reacquired 5,000 ordinary shares at P16

January 10 – Issued 25,000 shares at P225 a share