Professional Documents
Culture Documents
Ans: A: 48,000
*Expenses computation:
Payments for expenses P 490,000
Prepaid expenses, beg. 21,000
Prepaid expenses, end (35,000)
Accrued expenses, beg (76,000)
Accrued expenses, end 98,000
Depreciation expense (76,000 – 53,000) 23,000
Accrual expenses P 521,000
Problem 6: Ans. C
Assets available to unsecured creditors P 70,000
Add: Unsecured creditors with priority (administrative expenses
12,000
P3,500; taxes: P6,000 and wages: P2,500)
Less: Assets not pledged to any liabilities (10,000)
Excess of assets pledged to Fully secured liabilities 72,000
Add: Payments to Fully secured creditors 68,000
Total assets pledged to Fully secured liabilities (1) P 140,000
Problem 7: Ans. A
Estimated gains on realization of assets P 1,450,000
Less: Estimated losses on realization of assets 2,500,000
Unrecorded/additional assets 1,300,000
Less: Unrecorded/additional liabilities 520,000
Stockholders’ Equity
Capital stock P 2,220,000
Less: Deficit 1,320,000 900,000
Estimated amount to be recovered by stockholders P 630,000
Googleplus(35)
Unsold merchandise received.......................................... P 10,850
Cash payment (P315,000 – P133,750 + P102,000) 283,250
Total interest of Googleplus............................................. P 294,100
Problem 9: Ans. D
Joint Venture
Investment of Mdse P 234,000 P 360,000 Sales
Sales discount 1,875 22,500 Unsold Mdse
Sales returns 4,200 17,100 Unsold Mdse
Bad debts expense 9,675
(w/off)
Expenses 87,840
P 62,010 Net Income
Jennifer Beyonce
Investment of Merchandise.......................................... P 99,000 P 135,000
Interest
P99,000*6% *(3/12) ................................................ 1,485
P135,000*6% *(3/12)............................................... 2,025
Remainder (P62,010 – P12,402^ – P1,485 – P2,025)/3 15,366 15,366
Unsold Merchandise...................................................... (22,500) (17,100)
Cash received................................................................. P 93,351 P 135,291
Q10 – 2
Dividend Income (P85,000* 25%)............... P 21,250
Transaction Cost (P270,000* 1%)............... (2,700)
Change in fair value (P300,000^ - P270,000) 30,000
Profit under Fair Value method: ................ P 48,550
Less: Profit under Equity method: ............. 31,250
Difference................................................... P 17,300
2011
Collections:
- 2011 (P2,275,000 – P1,706,250) P 568,750
- 2012 (P1,706,250– P287,500) 1,418,750
Total collections: 1,987,500
Less: Cost of Instalment Sales (Sales / 1+GP rate) P1,750,000
Realized gross profit to date P237,500
Realized gross profit (breakdown):
0
- 2011
- 2012 P237,500
Total RGP on 2012 (P215,000 + P237,500) = P452,500
Problem 18: Ans. B
(P76,000 + P266,000) +
(P684,000 + P1,254,000) = 60%
P3,800,000
(P76,000 + P266,000)
= P570,000
60%
P3,672,500
= 65% (2012)
(P3,672,500 + P1,977,500)*
^2011:
Correct cost incurred to date
P2,990,000
(P3,040,000 – P50,000)
Correct cost to complete
2,010,000
(P1,960,000 + P50,000)
Total estimated cost, 2011 5,000,000
P2,990,000
= 59.80% (2011)
P5,000,000
Mark-up percentage: P232,200/ (P425,700 - P232,200) = 120% above cost (or 220% of cost)
Amount of ending inventory (EI):
Shipments from HO – EI = Cost of goods sold
X – 0.25X = P425,700
X = P567,600 (Shipments from HO)
0.25X = P141,900 (Ending Inventory)
Effect on RE
Income from acquisition P5.5M
Loss on contingent consideration 8.5M
Net effect – LOSS P3.5M
Problem 30.
Problem 31.
Problem 32.
Problem 33.
Problem 35.
(Final selling price – Selling price at split-off) – Additional processing cost = Incremental profit
(3 – 1.50) – 2.50 = (1)
Problem 36.
Problem 37.
40000x = 42000x – 28500 14.25/60% = 23.75 total OH rate per machine hour
28500 = 2000x 23.75 * 40% = 9.50 Variable overhead rate per MH
x = 14.25 per machine hour
Problem 38.
Problem 39. B
Problem 40. C
Problem 41. C
Problem 42. C
Problem 43. B
Problem 44.
Problem 45.
Problem 46.
Answer – letter B: 3 million /2 = $1.5 million plant; .667 - .5 = .167 x 3 million = $0.5 million loss; 3
million x .667 = $2 million
Problem 47.
Problem 48.
Answer – letter D:
Consolidation adjustment – reclassify to OCI since it forms part of net investment in the foreign
subsidiary
Dr. Other comprehensive income CU 476
Cr. Profit or loss – exchange difference CU 476
Problem 49.
Answer – letter A: The July 30 update is within the measurement period, hence goodwill is
adjusted accordingly. The CC payable at this date amounted to 170,000 compared to the final
actual consideration of P195,000.
Problem 50.