Financial Accounting 1 Reviewer

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Google Company provided some information on their financial records
on December 31,2013
Accounts Receivable, January 1
Collection of Accounts Receivable
Bad Debts
Inventory, January 1
Inventory, December 31
Accounts Payable, January 1
Accounts Payable, December 31
Cash Sales
Gross Profit on Sales

P 480,000
1,560,000
50,000
720,000
660,000
250,000
375,000
300,000
540,000

1. What is the ending balance of Accounts Receivable on December

31,2013?
PSBA Corporations checkbook balance on Dec. 21, 2013 was P160,000
on the same date, PSBA held the following items in its safe:
A P10,000 check payable to PSBA, dated January 2, 2014 was not
included in the December 31 checkbook balance
A P3,500 check payable to PSBA which was deposited December
19 and included in the December 31 checkbook balance, was
returned by the bank on December 30 marked NSF. The check
was re-deposited on January 2, 2014 and cleared on January 9
A P25,000 check payable to a supplier and drawn to PSBAs
account, was dated and recorded on December 31, but was not
mailed until January 19, 2014
2. In its December 31, 2013 statement of financial position, how much
should PCU reported as Cash?
On March 1, 2013 Mouse Company sold goods to Matrix Company.
Matrix Company signed a non-interest bearing note requiring payment
of P60,000 annually for seven years. The first payment was made on
March 31, 2011. The prevailing rate of interest for this type of note at
the date of issuance was 10%
PERIODS
of 1
6
7

Present Value of 1
At 10%
0.56
0.51

PV of Ordinary Annuity
at 10%
4.36
4.87

3. How much should Mouse Company report as Sales Revenue in March

2013?
MAGARALNATAYO company has 60,000 ordinary shares of AYOKONGA
corporation as an investment in available for securities. These Shares
were acquired at fair market value, which was P80 per share on May 2,
2013. On December 20, 2013 the market value of these shares is P90
per share. On December 22, 2013 MAGARALNATAYO company sold
42,000 shares of its investment in AYOKONGA corporation for P85 per
share. Market Value of AYOKONGA shares has yet to change; it
remained at P90 per share
4. What amount of realized gain or loss should MAGARALNATAYO
company recognize in selling those shares?
5. What amount of unrealized gain or loss should MAGARALNATAYO
company derecognize in selling those shares?
6. What amount of unrealized gain or loss should MAGARALNATAYO
Company carry over to the next measurement date?
CPA NA SILA Company acquired an asset that had a cost of P390,000.
The Asset is being depreciated over a 5-year period using the sum of
years digit method. It has a salvage value estimated at P30,000
7. If the asset is sold for P114,000 at the end of third year, how much
would be the loss/gain on sale?
8. How much is the Accumulated Depreciation until the date of sale?
The following information is available for Kaya ko ito Company for year
2013:
Net Sales
P3,600,000
Freight In
90,000
Purchase Discounts
50,000
Ending Inventory
240,000
The Gross Margin is 40% of net sales
9. What is the cost of good available for Sale?
In preparing its bank reconciliation at December 31, 2013, PASADO
company has the following available data:
Balance Per Bank Statement, December 31, 2013
P38,075
Deposit in Transit
5,200
Outstanding Checks
6,750
Amount erroneously credited by bank to Pasados account

December 28, 2013

Bank Service charges for December

400

75
10.
How much is PASADOs adjusted cash in bank balance at
December 31, 2013?
There is no end to education. It is not that you read a book, pass an
examination, and finish with education. The whole of life, from the moment
you are born to the moment you die, is a process of learning.
(c)reditcedric
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