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11.
Bagwis Corporation regularly buys sweater from Alab Company
and is allowed a trade
discount of 20% and 10% from the list price.
Bagwis made a purchase on May 4, 2016,
and received an invoice with
a list price of P90, 000, a freight charge of P5, 000, and payment terms of
net of 30 days.
Which of the following is true?
A.
Bagwis Corporation should record accounts payable of P95, 000
B.
Good Available for Sale will increase by P68, 400
C.
Alab Company will record a freight charge for P5, 000
D.
Total cost of inventory purchase is P69, 800
Mock Special Qualifying Examination
Financial Accounting and Reporting, P1 & P2
|2
C.
D.
Inventory
Property,
Plant
and
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25.
Joseph Company failed to amortize discount on outstanding 10year bonds payable. What is the effect to the failure to record
amortization on interest expense, profit and bond carrying
value,
receptively?
A.
Understate, Overstate, Understate
B.
Overstate, Understate, Overstate
C.
Understate, Overstate, Overstate
D.
Overstate, Understate, Understate
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220, 000
600, 000
150, 000
1, 500, 000
150, 000
500, 000
240, 000
2, 000, 000
350, 000
550, 000
50, 000
450, 000
2, 050, 000
250, 000
500, 000
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P 6, 300, 000
D.
P 7, 450, 000
34.
On December 31, 2015, Jorge Company had the following cash
balances:
Cash in bank
Petty cash fund
Time deposit (due January 31, 2016)
1, 500, 000
150, 000
300, 000
36.
In reconciling the cash balance on December 31, 2015 with that
shown in the bank statement, the following facts are gathered from the
records of Klein Company:
Balance per bank statement
000
Balance per book
Outstanding checks
000
Deposit in transit
Service charge
000
Proceeds of bank loan, December 1 discounted
For 6 months at 12%, not recorded on Kleins books
000
Customers check charged back by bank for
Mock Special Qualifying Examination
Financial Accounting and Reporting, P1 & P2
3,
850,
2, 650, 000
700,
495, 000
15,
960,
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70,
000
Deposit of P150, 00 incorrectly recorded by bank as
15, 000
Check of Calvin Company charged by bank against
Klein account
160, 000
Customers note collected by bank in favor of Klein Company.
Face
400, 000
Interest
40, 000
Total
440, 000
Collection fee
10,
000
Erroneous debit memo of December 28, to charge
Klein account with settlement of bank loan
210,
000
Deposit of Calvin Company credited to Klein account
195,
000
What is the adjusted cash in bank on December 31, 2015?
A.
P 4, 275, 000
C.
P 3, 955, 000
B.
P 4, 140, 000
D.
P 3, 885, 000
37.
Ericka Company provided the following information relating to
current operations:
Accounts receivable, January 1
P 3, 500, 000
Accounts receivable collected
7, 445, 000
Cash Sales
2, 565, 000
Inventory, January 1
6, 215, 000
Inventory, December 31
5, 985, 000
Purchases
7, 770, 000
Gross margin on sales
3, 675, 000
What is the balance of accounts receivable on December 31?
A.
P 5, 165, 000
C.
P 4, 950, 000
B.
P 5, 075, 000
D.
P 4, 825, 000
38.
Locre Company started business on January 1, 2015. After
considering the collection experience of other entities in the industry, the
entity established an allowance for
doubtful accounts estimated at 5%
of credit sales. Outstanding accounts receivable recorded on December
31, 2015 totaled P 460, 000, while the allowance for doubtful accounts
has a credit balance of P 50, 000 after recording estimated doubtful
account expense for December and after writing-off P 10, 000 of
uncollectible accounts. Further analysis
showed
that
merchandise
inventory was P 300, 000. Goods were sold at 40%
above cost. The
total sales comprised 80% sales on account and 20% cash sales. Total
Mock Special Qualifying Examination
Financial Accounting and Reporting, P1 & P2
|9
24,
34,
40,
50,
000
000
000
400
understated
understated
understated
understated
39.
Mervryl Company assigned P 6, 000, 000 of accounts receivable
as collateral for a
P 3, 500,000 with a bank loan of 10%. The entity also paid the finance
fee of 5% on the
transaction upfront. What amount should be recoded
as a gain or loss on the transfer of
accounts receivable?
A.
354, 872 loss
C.
236, 979 gain
B.
281, 395 gain
D.
0
40.
On April 30, 2015, John Paul Company sold goods for P 20, 000,
000 and accepted the
customers 12% one-year note in exchange.
The 12% interest rate approximately the
market return. What amount
should be reported as interest income for the year ended
December
31, 2015?
A.
P 1, 833, 000
C.
P 1, 600, 000
B.
P 1, 800, 000
D.
P 1, 333, 000
41.
Clark Company sold one of its factories on January 1, 2015 for
P8, 000, 000. The entity received a cash down payment of P 1, 500, 000
and a 4-year, 12% note for the balance.
The notes payable in equal
annual payments of principal and interest of P 1, 975, 400
payable on
December 31 of each year until 2018. What is the carrying amount of the
note
receivable on December 31, 2015?
A.
P 6, 205, 600
C.
P 5, 614, 600
B.
P 5, 915, 600
D.
P 5, 304, 600
42.
Cedrec Company incurred the following costs in relation to a
certain product:
Direct materials and labor
180, 000
Variable production overhead
25, 000
Factory administrative costs
15, 000
Fixed production costs
20, 000
What is the correct measurement of the product?
A.
240, 000
C.
205, 000
B.
225, 000
D.
195, 000
43. Honey Company provided the following for the current year:
Central Held
by
warehouse Consignees
Mock Special Qualifying Examination
Financial Accounting and Reporting, P1 & P2
| 10
1, 890, 000
3, 475, 000
150, 000
210, 000
775, 000
to
75, 000
300, 000
1, 450, 000
80, 000
565, 000
C.
D.
P 4, 365, 000
P 4, 150, 000
44.
Kate Company sold merchandise for P 800, 00 on December 31,
2015. The terms of the
sale state that payment is due in one years
time. The imputed rate of interest is 9%. What
amount
of
sales
revenue be recognized?
A.
872, 000
C.
800, 000
B.
733, 600
D.
712, 400
45.
Tricia Company has a herd of 10 2-year old animals on January 1,
2015. One animal aged
2.5 year was purchased on July 1, 2015 for
P108, and one animal was born on the same
day. No animals were
sold or disposed of during the year. The fair value less cost of disposal
per unit is as follows:
2 year old animal on January 1
100
2.5 year old animal on 1uly 1
108
New born animal on July 1
70
2 year old animal on December 31
105
2.5 year old animal on December 31
111
New born animal on December 31
72
3 year old animal on December 31
120
0.5 year old animal on December 31
80
What is the gain from change in fair value due to price and physical
change, respectively?
A.
292 and 55
C.
237 and 292
B.
55 and 292
D.
55 and 237
46.
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P 300, 000
(700, 000)
1, 200, 000
For each year, there were no deferred income taxes, and Dorias
effective income tax rate
was 30%. In its 2014 income tax return, Dorias
elected to carry back the maximum amount
of loss possible. Additionally,
there was more negative evidence than positive evidence concerning
profitability for Dorias in 2015. In its 2015 income statement, what amount
should Dorias report as total income tax expense?
A.
P 120, 000
C.
P 240, 000
B.
P 150, 000
D.
P 360, 000
54. Camille Corporation incurred the following costs in 2012:
Acquisition of R&D equipment with a useful
Mock Special Qualifying Examination
Financial Accounting and Reporting, P1 & P2
| 13
| 14
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8,350,000
The fair value of Plan asset at year end includes the unpaid
contributions due from the
Revised Inc. to the fund, as well as the
non-transferable FVPL issued by the Revised Inc. and held by the fund
amounting to P700,000 and P300,000, respectively. Determine the
amount recognized in profit or loss in accordance with revised PAS 19
Employee
Benefits.
A.
P 3, 050, 000
C.
P 3, 570, 000
B.
P 3, 070, 000
D.
P 2, 300, 000
65.
1.
2.
BONUS!
ANSWER SHEET
17.
18.
33.
34.
49.
50.
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64.
Prepared by:
Mervryl D. Mercado
Vice President for Academic Affairs
Academic Year 2016 2017
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