SET A SET B

1 C 26 A 1 C 26 C
2 D 27 D 2 D 27 C
3 B 28 D 3 A 28 B
4 C 29 A 4 C 29 A
5 D 30 B 5 C 30 B
6 C 31 C 6 A 31 C
7 B 32 B 7 D 32 D
8 A 33 B 8 D 33 B
9 A 34 C 9 A 34 C
10 A 35 C 10 B 35 D
11 B 36 D 11 C 36 C
12 C 37 D 12 B 37 B
13 A 38 D 13 B 38 A
14 B 39 D 14 C 39 A
15 A 40 C 15 C 40 A
16 B 41 C 16 D 41 B
17 D 42 C 17 D 42 C
18 C 43 C 18 D 43 A
19 A 44 A 19 D 44 B
20 B 45 B 20 C 45 A
21 C 46 C 21 C 46 B
22 D 47 C 22 C 47 D
23 A 48 B 23 C 48 C
24 C 49 A 24 A 49 A
25 C 50 B 25 B 50 B

PROBLEM NO.2 - Ramos Corporation

Requirement No. 1
Cash on hand, per trial balance 465,000
(a) NSF check redeposited 60,000
(c) Postal money order 36,000
Cash on hand, as adjusted 561,000

Requirement No. 2
Petty cash fund per total 15,300
Employees' vales (2,600)
Currency in envelope marked "collections for charity" (2,200)
Unreplenished petty cash vouchers (1,800)
Petty cash fund, as adjusted 8,700
 Alternative computation:
Currency and coins 3,100
Replenishment check 5,600
Petty cash fund, as adjusted 8,700

Requirement No. 3
Computation of shortage:
Currency and coins 3,100
Employees' vales 2,600
Unreplenished petty cash vouchers 1,800
Replenishment check 5,600
Cash and cash items counted 13,100
Cash accountability 15,000
Unaccounted/Shortage (1,900)

Requirement No. 4
Maybank current account, per trial balance 1,188,000
Post dated check delivered (86,000)
BPI current account, as adjusted 1,102,000

Requirement No. 5
Cash on hand (see no. 1) 561,000
Petty cash fund (see no. 2) 8,700
Maybank current account (see no. 3) 1,102,000
BDO current account 1,280,000
CitiBank time deposit (cash equivalent) 300,000
Cash and cash equivalents, as adjusted 3,251,700

PROBLEM NO.3 - Gatchalian Company

Requirement No. 1 to 5 May

April 30 Receipts Disb May 31
Balance per books 257,000 247,000 159,200 344,800
Note collected by bank, April 15,000 (15,000)
Bank service charge, May 800 (800)
Unreleased checks (4,750) 4,750
Post dated check issued (7,210) 7,210
Post dated check received (5,000) (5,000)
Deposits in transit
April (48,000) 48,000
May (P76,000 - P5,000) (71,000) (71,000)
Outstanding checks
April 56,000 56,000
May (P60,000 - P4,750 - P7,210) (48,040) 48,040
Bank error 20,000 20,000
NSF check redeposited 16,000 16,000

Balance per bank 300,000 220,000 192,000 328,000

 May
April 30 Receipts Disb May 31
Balance per bank 300,000 200,000 172,000 328,000
Deposits in transit
April 48,000 (48,000)
May (P76,000 - P5,000) 71,000 71,000
Outstanding checks
April (56,000) (56,000)
May (P60,000 - P4,750 - P7,210) 48,040 (48,040)
Bank error (20,000) (20,000)
NSF check redeposited (16,000) (16,000)
272,000 207,000 128,040 350,960

May
April 30 Receipts Disb May 31
Balance per books 257,000 227,000 139,200 344,800
Note collected by bank, April 15,000 (15,000)
Bank service charge, May 800 (800)
Unreleased checks (4,750) 4,750
Post dated check issued (7,210) 7,210
Post dated check received (5,000) (5,000)
272,000 207,000 128,040 350,960
- - - -

PROBLEM NO.4 - Pugong Company

Requirement 1
Sales 14,535,360
Less accounts receivable, 08/14 3,842,100
Collection from sales 10,693,260

Requirement 2
Cost of sales (P14,535,360/1.4) 10,382,400
Add merchandise inventory, 08/14 4,226,400
Purchases 14,608,800
Less: Accounts payable, 08/14 2,082,780
Payments for purchases 12,526,020

Requirement 3
Purchase of real estate 9,000,000
Payment for furniture and fixtures
(P1,305,000 - P270,000) 1,035,000
Expenses paid 2,734,020
Payments for purchases 12,526,020
Total cash disbursements 25,295,040
Requirement 4
Proceeds from issuance of common stock 14,400,000
Proceeds from mortgage note payable 3,600,000
Proceeds from notes payable - bank 1,440,000
Collections from sales 10,693,260
Total cash receipts 30,133,260
Less cash disbursement 25,295,040
Unadjusted cash balance 4,838,220

Requirement 5
Cash accountability 4,838,220
Less cash accounted (Adjusted cash balance)
Unadjusted bank balance 1,184,760
Deposit intransit 231,300
Outstanding checks (83,340) 1,332,720
Cash shortage 3,505,500

PROBLEM NO.5 - Christmas Company

Requirement No.1 to 4
Profit Profit WC RE
2015 2016 12/31/16 12/31/16
Salaries payable
2015 1,747,200 (1,747,200)
2016 1,560,000 1,560,000 1,560,000
Interest receivable
2015 (518,400) 518,400
2016 (426,000) (426,000) (426,000)
Prepaid insurance
2015 (768,000) 768,000
2016 (615,600) (615,600) (615,600)
Advances from customer
2015 940,800 (940,800)
2016 1,122,000 1,122,000 1,122,000
Machinery
2015 (1,128,000) (1,128,000)
56,400 112,800 169,200
2016 (1,044,000) (1,044,000)
52,200 52,200
Over (Under) 330,000 (640,200) 1,640,400 (310,200)
PROBLEM NO.6 - Gray Company

Requirement No. 1 to 7

RE Profit Loss Loss

2013 2014 2015 2016
Unadjusted balances 580,000 310,000 (205,000) (165,500)
(b.1) Prepaid expense
2013 8,500 (8,500)
2014 6,200 (6,200)
2015 7,400 (7,400)
2016 9,500
(b.2) Accrued expenses
2013 (5,400) 5,400
2014 (7,300) 7,300
2015 (8,700) 8,700
2016 (9,000)
(b.3) Unearned income
2013 (6,900) 6,900
2014 (7,800) 7,800
2015 (8,900) 8,900
2016 (9,600)
(b.4) Accrued income
2013 4,700 (4,700)
2014 5,600 (5,600)
2015 6,200 (6,200)
2016 7,800
(d) Purchase of machinery expensed
on April 2013 270,000
Unrecorded depreciation (60,000) (90,000) (90,000) (30,000)
( e) Unrecorded transportation
equipement received as
donation on 9/30/15
Expenses paid 30,000
Unrecorded depreciation (20,000) (80,000)
(f) Understatement of inventory
2014 64,000 (64,000)
2016 44,500
(g) Understatement of inventory
and purchases
2015 43,400 (43,400)
(43,400) 43,400
2016 32,600
(32,600)
Adjusted balances 790,900 279,800 (349,700) (228,300)
 Retained earnings, 12/31/13, as adjusted 790,900 1
Net income for 2014 279,800 2
Dividends declared (140,000)
Retained earnings, 12/31/14 930,700 3
Net loss for 2015 (349,700) 4
Dividends declared (100,000)
Retained earnings, 12/31/15 481,000 5
Net loss for 2016 (228,300) 6
Retained earnings, 12/31/16 252,700 7

PROBLEM NO.7 - Balasa Company

Balasa Company
Proof of Cash - Book to Bank Method
For the month of December, 2016

December
Nov. 30 Receipts Disb Dec. 31

Unadjusted book balances 756,000 1,102,500 1,050,000 808,500

Undeposited collections:
November 30 [P366,000 - (P250,000 x 80%)] (166,000) 166,000
December 31 [P450,000 - (P280,000 x 80%)] (226,000) (226,000)
Outstanding checks:
November 30 225,000 225,000
December 31 (180,000) 180,000
DAIF checks:
Returned in Nov., recorded in Dec. (15,000) 15,000
Returned and recorded in Dec. 30,000 30,000
Returned in Dec., recorded in Jan. 45,000 (45,000)
Erroneous bank debit 135,000 (135,000)
Unrecorded bank collection in Dec. 159,000 159,000
Anticipated loan proceeds from AR hypothecation
Nov. 30 sales (P250,000 x 80%) (200,000) 200,000
Dec. 31 sales (P280,000 x 80%) (224,000) (224,000)
Deposits with loan payment (P1,087,500 x 80%) (870,000) (870,000)
Anticipated loan payment from undeposited collections
Nov. 30 (P166,000 x 80%) 132,800 132,800
Dec. 31 (P226,000 x 80%) (180,800) 180,800
Interest charge for bank loan in Dec. 57,000 (57,000)

Unadjusted bank balances 732,800 352,500 444,000 641,300