Shown below is the bank reconciliation of Marikina Company for November 2010: Balance per book P150,0000 Add:

Deposits in transit 24,000 Total 174,000 Less: Outstanding checks P28,000 Bank credit recorded in error 10,000 38,000 Cash balance per books November 30, 2010 P136,000 The bank statement for December 2010 contains the following data: Total deposits P110,000 Total charges, including an NSF check of P8,000 and a service charge of P400 96,000 All outstanding checks on November 30, 2010, including the bank credit, were cleared in the bank in December 2010. There were outstanding checks of P30,000 and deposits in transit of P38,000 on December 2010. 1. How much is the cash balance per bank on December 31, 2010? a. P154,000 c. P164,000 b. P150,000 d. P172,400 2. How much is the December receipts per books? a. P124,000 c. P110,000 b. P96,000 d. P148,000 3. How much is the December disbursements per books? a. P96,000 c. P89,600 b. P79,600 d. P98,000 4. How much is the cash balance per books on December 31, 2010? a. P150,000 c. P180,400 b. P170,400 d. P162,000 5. The adjusted cash in bank balance as of December 31, 2010 is: a. P141,600 c. P172,000 b. P162,000 d. P196,000 The accountant for the Muntinlupa Company assembled the following data: June 30 Cash account balance P15,822 Bank statement balance 107,082 Deposits in transit 8,201 Outstanding checks 27,718 Bank service charge 72 Customers check deposited July 10, returned by the bank on July 16 marked NSF, and redeposited immediately: no entry made on books for return or redeposit Collection by bank of companys notes receivable 71,815 The bank statements and the companys cash records show these totals: Disbursements in July per bank statement P218,373 Cash receipts in July per Muntinlupas books 236,452 6. How much is the adjusted cash balance as of June 30? a. P87,565 c. P107,082 b. (P3,695) d. P15,882 7. How much is the adjusted bank receipts for July? a. P253,787 c. P245,537 b. P214,802 d. P232,881 8. How much is the adjusted book disbursements for July? a. P220,767 c. P181,782 b. P212,517 d. P206,673 July 31 P39,745 137,817 12,880 30,112 60

8,250 80,900

9.

How much is the adjusted cash balance as of July 31? a. P137,817 b. P112,335 10. How much I the cash shortage as of July 31? a. P8,250 b. P71,815

c. d. c. d.

P22,513 P120,585 P196,144 P0

The financial statements as of December 31, 2009 of Lidlidda Plastic Products Co. showed the following: Accounts receivable P3,600,000 Allowance for doubtful accounts 72,000 During 2010, transactions relating to the accounts were as follows: Sales on account, P38,400,000 Cash received from collection of current receivable totaled P31,360,000 after discount of P640,000 were allowed for prompt payment Customers accounts of P160,000 were ascertained to be worthless and were written off Bad accounts previously written off prior to 2010 amounting to P40,000 were recovered The company decided to provide P184,000 for doubtful accounts by journal entry at the end of the year Accounts receivable of P5,600,000 have been pledged to a local bank on a loan of P3,200,000. Collections of P1,200,000 were made on these receivables (not included in the collections previously given) and applied as partial payment to the loan 11. The accounts receivable as of December 31, 2010 is: a. P8,680,000 c. P4,240,000 b. P9,840,000 d. P8,640,000 12. The allowance for doubtful accounts as of December 31, 2010 is: a. P8,000 c. P184,000 b. P136,000 d. P176,000 13. The net realizable value of accounts receivable as of December 31, 2010 is: a. P8,544,000 c. P8,504,000 b. P8,456,000 d. P4,104,000 14. If receivables are hypothecated against borrowings, the amount of receivables involved should be: a. Disclosed in the statements or notes b. Excluded from the total receivables, with disclosure c. Excluded from the total receivables, with no disclosure d. Excluded from the total receivables and a gain or loss is recognized between the face value and the amount of borrowings Saicy Bank granted a loan to a borrower in the amount of P5,000,000 on January 1, 2010. The interest rate on the loan is 10% payable annually starting December 31, 2010. The loan matures in five years on December 31, 2014. Saicy Bank incurs P39,400 of direct loan origination cost and P10,000 of indirect loan origination cost. In addition, Saicy Bank charges the borrower an 8-point nonrefundable loan origination fee. (Round off the present value factors to four decimal places) 15. The carrying amount of the loan as of January 1, 2010 is: a. P5,000,000 b. P4,639,400 16. The effective interest rate of the loan is: a. 10% b. 11.94% 17. Interest income to be recognized in 2010 is: a. P500,000 b. P555,138

c. d. c. d. c. d.

P5,039,400 P4,649,400 12% 9.80% P493,861 P556,728

18. The carrying amount of the loan as of December 31, 2010 is: a. P5,000,000 b. P4,696,128

c. d.

P5,033,261 P4,704,538

Binalonan Sales Company uses first in first out method in calculating cost of goods sold for the three products that the company handles. Inventories and purchase information concerning the three products are given for the month of October. Product C Product P Product A Oct. 1 Inventory 50,000 units @ P6.00 30,000 units @ P10 65,000 units @ P0.90 Oct. 1-15 Purchases 70,000 units @ P6.50 45,000 units @ P10.5 30,000 units @ P1.25 Oct. 16-31 Purchases 30,000 units @ P8.00 Oct. 1-31 Sales 105,000 units @ P8 50,000 units @ P11 45,000 units @ P2.60 On October 31, the companys suppliers reduced their prices from the most recent purchase prices by the following percentages: product C, 20%; product P, 10%; product A, 8%. Accordingly, Binalonan decided to reduce its sales prices on all items by 10% effective November 1. Binalonans selling cost is 10% of selling price. Products C and P have a normal profit (after selling costs) of 30% on sales prices, while the normal profit on Product A (after selling costs) is 15% of sales price. 19. Total cost of inventory at October 31 is: a. P565,000 c. P557,310 b. P655,500 d. P617,500 20. The amount of Inventory to be reported on the companys statement of financial position at October 31 is: a. P569,850 c. P559,350 b. P543,810 d. P595,350 21. The allowance for inventory writedown at October 31 is: a. P5,650 c. P85,650 b. P13,500 d. P60,150 22. The cost of sales after loss on inventory write-down for the month of October is: a. P1,298,500 c. P1,022,260 b. P1,290,650 d. P1,208,000 The following information is reported by Villasis Corporation: Cost Retail Beginning inventory P1,987,200 P2,760,000 Sales 7,812,000 Purchases 4,688,640 6,512,000 Freight in 94,560 Markups 720,000 Markup cancellations 120,000 Markdown 240,000 Markdown cancellations 40,000 Villasis Corp. uses the average retail inventory method in estimating the values of its inventories and cost of goods sold. 23. The cost to retail ratio to be used in considering the provisions of IAS 2 is: a. 68.58% c. 70.00% b. 69.20% d. 75.78% 24. The estimated ending inventory at cost is: a. P1,412,786 c. P1,302,000 b. P1,275,588 d. P1,287,120 25. The estimated cost of goods sold is: a. P5,468,400 c. P5,357,614 b. P5,494,812 d. P4,685,117