Filipino Academy UK

Accounting Professional Diploma

Pre-final examination
Name:_____________________Score:________________________________________________
Batch:_____________________Prepared by: Dave Christian B. Cabo, CPA,CMA,MBA,CTT,MRITax,CDAA

I. Accounting for Receivables

1. ABC Company provided the following information:

Trade receivables, collectible in one year 200,000.00

Trade receivables, collectible in three years 450,000.00
Notes receivable, collectible 30 days (trade) 100,000.00
Notes receivable, collectible 380 days (non-trade) 300,000.00
Non-trade receivables, collectible 1 year 800,000.00
Non-trade receivables, collectible 2 years 900,000.00

Compute for the following:

1. Current trade receivables

2. Non-current trade receivables
3. Current non-trade receivables
4. Non-current non-trade receivables
5. Current Trade and Non-trade receivables

2. Prepare the journal entries.

A. Allowance method

1. 400,000.00 of the accounts receivables is estimated to be worthless.

2. 30,000.00 of the accounts receivables has been proven to be worthless.
3. 3,000 of the accounts previously written-off has been recovered.

B. Direct write-off

4. 300,000.00 of the accounts receivables is estimated to be worthless.

5. 40,000.00 of the accounts receivables has been proven to be worthless.
6. 6,000 of the accounts previously written-off has been recovered.

II. Accounting for Property, Plant and Equipment

1.
Description Amount
Installation and assembly cost 20,000.00
Cost of opening a new facility 3,000.00
Cost of introducing a new product or service 5,000.00
Cost of site preparation 2,000.00
Cost of employee benefits 4,500.00
Professional fees 6,000.00
Cost of testing 3,000.00
Net proceeds from selling 1,200.00
Initial operating loss 2,500.00
Cost of relocating or reorganizing 3,500.00
How much is the total expense from the list?_________________________
How much is the total capitalizable cost from the list?_____________________
 2. An asset has been acquired by an entity. Below are the details provided related to the asset.

Cash price- 200,000.00

Installment price- 20,000.00 for 12 months

How much is the cost of the asset?_ _____________

How much is the interest expense?_ _____________

3. An asset has been acquired by the entity through issuance of the share capital, below are the
details provided in relation to the acquisition.

A. Fair value of bond payable: 0.00

B. Fair value of asset received: 22,000.00
C. Face amount of bonds payable: 23,000.00

How much is the total cost of the asset?_________________

1. Compute for the depreciation expense of the following assets for the year 2024.

Acquisition Expected Number of

Method Asset Cost
date salvage value years
January
Straight-line depreciation Building 1,2023 2,000,000.00 0 10 years
Diminishing balance January
(100%) Office equipment 1,2023 200,000.00 30,000.00 9 years

 Building:____________
 Office Equipment:_____________

2. Compute for the accumulated depreciation for the year 2024.

Acquisition Expected Number of

Method Asset Cost
date salvage value years
January
Straight-line depreciation Building 1,2023 2,000,000.00 0 10 years
Diminishing balance January
(100%) Office equipment 1,2023 200,000.00 30,000.00 9 years

 Building:____________
 Office Equipment:_____________
 III. Accounting for Intangible Assets

1. Compute for the amortization expense of the below intangible assets:

Expected
Asset Acquisition date Cost Number of years
salvage value
Trade marks June 1,2023 100,000.00 0.00 10 years
1,000,000.0
Customer lists January 1,2023 0 0.00 10 years
2,000,000.0
Copy rights January 1,2023 0 0.00 41 years
1,000,000.0
Franchise (limited time) January 1,2023 0 0.00 10 years
1,000,000.0
Franchise (unlimited time) January 1,2023 0 0.00 not applicable
Patents January 1,2023 500,000.00 0.00 5 years
Patents January 1,2023 500,000.00 0.00 25 years

 Trademarks _____________
 Customer lists _____________
 Copy rights _____________
 Franchise (limited time) _____________
 Franchise (unlimited time) _____________
 Patents _____________
 Patents _____________

Item Amount
Trademarks 25,000.00
Accounts Receivable 14,000.00
Goodwill 20,000.00
Computer software 15,000.00

2. Compute for the total intangible asset.

B.

Intangible asset, specifically identifiable, purchased 20,000.00

Intangible asset, goodwill-type assets, purchased 5,000.00
Intangible asset, specifically identifiable, internally created, indirect cost 1,000.00
Intangible asset, specifically identifiable, internally created, direct cost 2,000.00
Intangible asset, goodwill-type assets, internally created 4,000.00

How much is capitalizable?_ _______________

How much is the total expense?_ ________________
 IV. Accounting for Current Liabilities:
Description Amount
Trade and other payables 150,000.00
Current provisions -10,000.00 110,000.00
Debts payable- due 1 year 115,000.00
Debts payable- due 2 years 116,000.00
Bonds payable 500,000.00- due 2 years; 600,000.00- due in one year
Current tax liability 19,000.00
Deferred tax liability 112,000.00

Compute for the current liabilities.

B.
Description Amount

A liability which is due 12 months after reporting period 45,000.00

A current liability which was refinanced for additional 3 years after

the reporting period before the issuance of the financial statements 20,000.00

A current liability which was refinanced for additional 3 years before

the end of the reporting period 15,000.00

Compute for the current liabilities.

Compute for the non-current liabilities

V. Accounting for Non-current liabilities

1. DEF Company provided the following ending balances.

Loans and advances Current portion- 200,000.00 ; Non-current- 1,250,000.00

Lease obligations Current portion- 150,000.00 ; Non-current- 1,150,000.00
Deferred tax liabilities 280,000.00
Current tax liabilities 210,000.00
Bonds payable Current portion-120,000.00 ; Non-current portion- 145,000.00
Defined benefit pension plan 160,000.00

How much is the total current liabilities?___________________________

How much is the non-current liabilities?____________________________

 2.
Description Amount

A current liability which is due 12 months after reporting period 35,000.00

A current liability which was refinanced for additional 3 years before

the end of the reporting period 61,000.00

How much is the total current liabilities?___________________________

How much is the non-current liabilities?____________________________