Drill 1 - Obligation

1D 6A 11 C 16 C 21 B 26 D
2A 7B 12 B 17 D 22 A 27 B
3D 8C 13 D 18 E 23 B
4B 9D 14 B 19 B 24 D
5A 10 B 15 D 20 B 25 B

Drill 2 - Obligation
1A 11 A 21 D
2C 12 H 22 C
3D 13 A 23 B
4B 14 C 24 B
5C 15 B 25 C
6C 16 A 26 D
7B 17 B 27 C
8B 18 A
9C 19 D
10 A 20 C

Drill A - Contract
1A 11 C 21 D
2A 12 A 22 C
3D 13 C 23 D
4C 14 B 24 C
5B 15 B 25 D
6C 16 C
7C 17 C
8B 18 C
9C 19 D
10 C 20 D

Drill 2 - Contract
1D 11 B 21 C
2A 12 B 22 C
3D 13 C 23 C
4C 14 C 24 B
5D 15 D 25 B
6A 16 B 26 D
7C 17 D 27 C
8D 18 A
9C 19 C
10 D 20 C

Drill 1 - Partnership
1C 11 D
2A 12 B
3A 13 C
4D 14 D
 5D 15 B
6D 16 D
7C 17 B
8B 18 A
9C 19 D
10 A

BL 2505-CORPORATIONS
DRILL1 DRILL2
1D 11 B 1A 11 A 21 D 31 C
2B 12 C 2B 12 D 22 B
3D 13 A 3D 13 D 23 A
4D 14 C 4D 14 A 24 C
5C 15 A 5B 15 C 25 A
6C 16 A 6D 16 D 26 A
7B 17 B 7A 17 C 27 D
8D 18 A 8D 18 A 28 A
9D 9C 19 C 29 D
10 A 10 D 20 D 30 D

NEGOTIABLE INSTRUMENTS
DRILL 1 DRILL 2
1C 11 C 21 B 1B 11 C 21 D
2B 12 C 22 A 2D 12 D 22 C
3B 13 C 23 D 3A 13 D 23 D
4B 14 B 24 A 4C 14 B 24 B
5D 15 B 25 A 5B 15 B 25 C
6D 16 A 6C 16 C 26 C
7D 17 B 7B 17 A 27 A
8B 18 C 8C 18 A
9B 19 D 9C 19 B
10 B 20 D 10 A 20 B

DRILL 3 DRILL 4
1B 11 A 21 C 1E 11 C 21 D
2A 12 D 22 D 2A 12 C 22 A
3C 13 A 23 D 3B 13 B 23 C
4D 14 A 24 D 4A 14 A 24 A
5C 15 C 25 C 5B 15 A 25 A
6C 16 A 26 B 6C 16 B 26 C
7B 17 A 7C 17 B 27 D
8B 18 D 8C 18 B 28 C
9C 19 D 9E 19 A 29 C
10 A 20 D 10 A 20 A
MAS 5201
1 a. Variable cost = 4x 5 1. CSE = 9,000 + 1.5x
Fixed cost = 96,000 2. Cannot be determined
b. Y=96,000 + 4x
c. TC=536,000 6 a. VC = 2.50x
FC = 8,800
2 a. Variable cost = 0.0181x b. TC = 21,300
Fixed cost = 8,840
b. EC=25,154 7 a. TFC = 38,000
b. VC/u = 5.75
3 1. VC = 7/bed/day c. TC = 66,750
FC = 270,000/month d. 85%
2. TOC = 336,150 8 1. VC = 35x
PC = 20,000
4 1. VC = 1,750x 2. Nov.2016 Nov. 2017
FC = 3,700 VC 35 35
2. Cannot be determined FC 10,000 20,000.00
3. EC = 81,250
MAS 2502
Problem 1
1 CM/u = P160
CMR = 20%
2 TCM = P3,840,000
3 BEP(u) = 16,000 units
BEP (₱) = 12,800,000
4 MS(u) = 8,000
MS (₱) = P6,400,000
MS (%) = 33.33%
5 DDL = 3
6 64,000 units
7 P853.33/unit
8 38,500 units

MAS 2502
PROBLEM 2 PROBLEM 3 PROBLEM 4
1 AP P2,000 1 24,000 units 1
2 P9,000 2 11,250 2
3 No 3 48,000 units 3
4 In terms of BEP(₱): No 4 P600,000 4
In terms of BEP(U): Yes 5 64,000 units 5
5 1,000 u 1,500u 20,000u 6 60,000 units
Sales 25,000 37,500 50,000 7 P15.85/unit
VC (15,000) (22,500) (30,000) 8 P937,500
CM 10,000 15,000 20,000 9 P80,000
FC (15,000) (15,000) (15,000)
OI (5,000) - 5,000

MULTIPLE CHOICE
1 C
2 D
3 C
4 C
5 C
6 B
7 C
8 B
9 C
10 D

MSQ-A
1 MA 11 MA
2 FA 12 MA
3 FA 13 FA
4 MA 14 FA
5 MA 15 MA
6 MA 16 MA
7 FA 17 MA
8 FA
9 FA
10 MA

EXERCISE 2
1 C 11 C 21 C
2 D 12 A 22 C
3 A 13 B 23 B
4 C 14 D 24 B
5 B 15 C 25 C
6 C 16 C 26 D
7 D 17 D 27 A
8 C 18 D 28 B
9 A 19 B 29 D
10 C 20 A 30 A

MAS 2502
Problem No. 4 Problem No. 5
1 Dscnt % Total 1 WA CMR=[(40% x .03) + (35% x 0.2) + (30% x 0.5)]
Sales 40 2,000,000 =34%
Less: VC 14 40% 800,000
CM 24 60% 1,200,000 Total BEP (pesos) =
Less: FC 700,000
NI b4 tax 500,000
Less: ITE(40%) 200,000 =
NI 300,000

Increase in CM (200,000 x 24) 2 Sales =

=4,800,000
2 Increase in Peso Sales =
(96,000 / 0.60) = 160,000

3 DP before tax =
(500,000 x 1.1) 550,000
Fixed costs 700,000 Multiple Choice
Required CM 1,250,000 1A 5B
Divide: Unit Sales 50,000 2A 6B
Req'd CM/Unit 25 3D 7B
Existing VC/Unit 16 4D 8C
Req'd SP/Unit 41
Problem 6
4 Ratio Current New 1 WA USP = [(20 x 0.75) + (40 x 0.25)]
SP/Unit 100% 40 45 = 25
VC/Unit 40% 16 18
CM/Unit 60% 24 27 Total Unit Sales =

5 Case A
Effect on BEP =
Increase by 15%

Case B =
Effect on before tax profit
(700,000 x 0.15) Bluejets 75%
Decrease by 105,000 Bluepens 25%

Case C
Effect on CM 2 Total BEP (units) =
None

Case D =
Effect on required sales
Increase by 175,000
=

3 Composite UCM =
=

Composite Brkdown =
Comp. UCM

4 WAUCM =
 =
WAUSP =
=
WA ONR =

Total BEP (pesos) =

5 CM (1M x 0.50)
Less: FC
Net Income

Required Sales (pesos)

Problem No. 7
Sales 100%
Less: VC 70%
CM 30%
Less: FC 20%
NI 10%

1 Required peso sales = FC

Ratio of FC to Sales

= 30,000
20%

= 150,000

2 CM% = A in NI or A in CM
A in Sales
 = 40,000
100,500

= 40%

BEP(pesos) = FC
CM%

= 100,000
40%

= 250,000

3 Ratio
Sales 1,000,000
Less: VC 70% 700,000
CM 30% 300,000
Less: FC 190,000
NI before tax 110,000

4 CM/Unit = A in NI or A in CM
A in Unit Sales

= 200,000 - 0
100,000 - 75,000

= 8

FC [Equal to CM @ BEP]
(75,000, x 8) = 600,000

5 CMR = A in NI or A in CM
A in Sales

= 40,000 - 0
400,000 - 300,000

= 40%

FC [Equal to CM @ BEP]
(300,000 x 40%) = 120,000

6 Current Breakeven
Sales 100,000 70,000
Less: VC
CM (40%) 40,000 28,000
Less: FC 28,000 28,000
 NI [12%] (120,000/100,000) 12,000 -

MAS 2503
Multiple Choice
1B
2A
3A
4A
5D
6A
7A
8A
9B
10 A
11 B
12 A
13 D
14 B
15 B

Problem No. 5
A 1.
Indirect materials 0.80
Indirect labor 1.00
Utilities 0.40
VOH rate 2.20

2.
FOH Rate/MIT= Budg'd FOH
Budg'd Hours
= 8,000 + 32,000
25,000

= 1.6

3.
VOH rate 2.20
FOH rate 1.60
Total OH rate 3.80

B. 1.
VOH RV = (AR-SR) X AH
= 54,400 - (24,000 x 2.2)
= 1,600 U

2.
VOHEV = (AH-SH) X SR
= (24,000-,27,000) X 2.2
 = (6,600)F

3.
Actual FOH (8,000+32,000) = 40,800
Budg'd FOH= (40,000)
Fixed OH SV 8,000

4.
Budgeted FOH 40,000
Applied FOH (27,000 x 1.6) 42,200
Volume V. (3,200)F

June 22, 2018

MAS 2503
Problem No. 1
Flexible budget (32,000 units)

Per unit Total

Materials @P2.25 72,000
DL @P1.5 48,000
VOH @P0.75 24,000
FOH 100,000
Total 244,000

Problem No. 2
1. For SALEX
No. of liters in final batch 7.2
Divide by: 80%
Std. liters to produce one batch 9
Multiply by: 6
Std. liters to produce six batches 54
Divide by: 5
Std. liters to produce 1 acceptable batch 10.8

For NYCLYN
No. of kg. in final batch 16
Std. kg. to produce 1 batch 80%
20
Multiply by: 6
Std. kg. to produce 6 batches 120
Divide by: 5
Std. kg. to produce 1 acceptable batch 24

For PROTET
No. of kg. in final batch 5
Multiply by: 6
Std. kg. to produce 6 batches 30
Divide by: 5
 Std. kg. to produce 1 acceptable batch 6

Problem No. 2
2. Actual working min./day (7*60) 420
Divide by: one unit 35
No. of units produced/day 12

Idle mins. In a day # of units 60

Divide by:produced/day to be absorbed 12
Idle min. per unit 5

No. of unit to produce 1 batch (35+5) 40

Multiply by: 6
Std. min. to produce 6 240
Divide by: 5
Std. min. to produce 1 acceptable batch 48

3. Direct Materials
SQ SP SC
Salex 10.8 liters 1.5/liter 16.2
Nyclyn 24 kg. 2.8/kg. 67.2
Protet 6 kg. 3/kg. 18
Standard DM costs/batch 101.4

Direct Labor SH SR SC
DL (48/60) 0.80 hr. 9/hr. 7.2

Problem No. 3
MPV = (AP-SP) X Aqp
= (7.8-8) X 100,000

1. =(20,000)F
2. MPV=(AQ-SQ) X SP
=(105,000-104,000) x 8
=8,000 u

3. LRV = (AR-SR) X AH
= 3,119,750- (79,000x40)
=19,750 u

4. LEV=(AH-SH) X SR
=(79,000-78,000) X40
=40,000 u

VOH EV=(AH-SH) X SR
=179,000-78,000) x16
=16,000 u
5. VOH RV 11,850 u
WHEV 16,000 u
FOH SV (5,000 F)
OH Budget (controllable)variance 22,850 u

6. Vortex = (AR-SR) x AH
=1,275,850-(79,000x16)
=11,850 u

VOH EV=(AH-SR) X SR
=179,000-79,000) X 16
=16,000 u

7 Actual FOH 745,000

Less: Budg'd FOH (75K X 10) 750,000
FOH SV (5,000) F

Problem No. 4
1. MPV= (AP-SP) X Aqu
=[(28,200/12K)-25)] X 10,500
=(1,575)F

2. A. LRV = (AR-SR) X AH
=13,800 - (1,150 x 14)
=(2,300)F

LFV = (AH-SH) X SR
=(1,150-900) x 14
=3,500 u

B. No

3. VOHRV=(AR-SR) X AH
=(1,150-900) x 6
=1,500 u

MSQ 2502 MSQ 2501

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

Problem No. 7 (continuation)

Total cost (Machine A) = 20X + 450,000
Total cost (Machine B) = 14X + 600,000
20x + 450,000 = 14x + 600,000
20x - 14x = 600,000-450,000

6X 150,000
=
6 6
8. FC / BEP (units)
= 150,000 / 1,000
= ₱150
 Ratio
9. Sales 100% 6,000,000
Less: VC 65% 3,900,000
CM 35% 2,100,000

BEP (pesos) = FC / CMR

= 1,400,000
35%
= 4,000,000

10. Sales= FC / Ratio of FC to Sales

= 30,000
30%
= 100,000

11. DOL = CM / Operating Income

Operating Income= CM / DOL
= 24,000 / 6
= 4,000

12. CMR = Inc. in FC

Inc. in BEP (p)
= 78,750
975,000-750,000
= 35%

FC before
FC = BEP (pesos) X CMR
= 750,000 x 35%
= 262,500

FC after
FC = BEP (pesos) X CMR
= 975,000 x 35%
= 341,250

13. WAUCM = [(15 x 0.6) + (1 X 0.3) + (3 X 0.1)]

= 1.5

BEP (units) Total FC

=
WAUCM
= 600,000
1.5
1.5
= 400,000
BEP
Y (60%) 240,000
 K (30%) 120,000
Z (10%) 40,000
400,000

14. Profit to recover (40,000 + 8,000) 48,000

CM / unit (80-60) ÷ 20
2,400
A in Sales = ₱25

Current Breakeven
15. Sales 100 75
Less: VC
CM
Less: FC
NI 10 -0-

A in NI or CM
=₱10
MI (100 x 0.06) 6
NI b4 tax (6/0.6) 10
CMR = 10/25 40%

7-Jul-18
Drill 1 - Partnership Drill 2 - Partnership
1C 11 D 1B 11
2A 12 B 2C 12
3A 13 E 3C 13
4D 14 D 4B 14
5D 15 B 5C 15
6D 16 D 6C 16
7C 17 B 7B 17
8B 18 A 8C 18
9C 19 D 9D 19
10 C 20 - 10 D 20

MAS 2503
STANDARD COSTS AND VARIANCE ANALYSIS
Problem No. 6
Variable Overhead Spending Variance
VOHSV=(AR-SR) x AQ
=(*3.80-4) x SR *Units x SH
=(115,000-100,000*) x 4 20,000 x 5
=P60,000 Unfavorable =100,000

Requirement No. 3
FOHSV=Actual Fixed OH-Budgeted Fixed OH
=P1,320,000 - P1,350,000
=P30,000 Favorable
Requirement No. 4
FOHVV=(Budgeted Hrs-SQ) X SR
=(90,000-100,000) x 15
=P150,000 Favorable

Multiple Choice (2503)

1C
2C
3A
4D
5A
6A
7B
8C
9B
10 D
11 D
12 D

Problem No. 7 BUDGETED BUDGETED Standard

Actual F/VOH Allowed @AH Allowed @ SH Hours @ SR
(AFOH) (BAAH) (BASH) (SHSR)
FOH P1,920,000 P1,980,000 P1,980,000 P2,190,375
VOH 2,150,000 2,052,750 2,289,938 2,289,938
Total P4,070,000 P4,032,000 P4,269,938 P4,480,313

4way VOHRV P97,250V

FOHSV 60,000E P237,188 F P210,375
SV P37,250N

3way Spending Variance Efficiency Variances Volume Variance

(SV) (EV) (VV)

2way
P199,938 F P210,375 F

BUDGET VARIANCE/ Volume Variance/

Controllable Variance Non-Controllable Variance
P410,313 F
Total Variance

Problem No. 8
Requirement No. 1
AVOH=VOH Rate x Actual Hours
=9 per MH x 28,000
=P252,000
Requirement No. 2
BVOH=Budgeted Allowed Hours x BVOH Rate
=(27,500* x 8) *M Hrs 25,000
X
units 20,000
=P220,000 =1.5 hrs/unit X Actual units
=1.5x22,000 - 27,500

Requirement No. 3
VOHSV=(AQ-SQ) X SR
=(28,000-27,500) x 8
=P4,000 Unfavorable

Problem No. 9
1. Flexible budget amount is P120,000
2. Fixed overhead allocated to production:
MHPS 8,000 hrs 0.8 hrs / unit
= =
UNHS 10,000 units

FOH P120,000 15 rate

= =
MHIS 8,000

BFOH = (Units X hrs required X Rate)

=12,000 X 0.8 X 15
=P144,000

Problem No. 10
Requirement: Material Usage Variance
Formula: (AQ-SQ) X SP
Echol (26,600-27,000) X 20 = P8,000 F
Protex (12,880-13,500) X 42.5 = 26,350 F
Benz (37,800-33,750) X 15 = 3,960,750 U
CT-40 (7,140-6,750) X 30 = 11,700 U
Material Usage Variance = P38,100 U

MUV = 38,100

MIX Yield
Echol 30,800 F (26,600-28,140) X 20 A = 135 Batches
Protex 50,575 F (12,880-14,070) X 42.5 S = 140.7 Batches
Benz 39,375 U (37,800-35,175) X15 5.7
CT-40 3,150 U (7,140-7,035) X 30 X 13,500
P38,850 F P76,950 U

MSQ 2503 - Standard Cost

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

MAS 2504 - ABSORPTION AND VARIABLE COSTIN

Problem No. 1
1. Unit = (Produced-sold)
Ending unit = 2,000
Cost of FG = 2,000 X 17 = P34,000

2. Unit cost = (DM + DL X FOH + VOH)

30,000 units
= (120,000 + 150,000,+ 90,000 + 300,000)
30,000
= P22.00/Unit
Cost of FG = 2,000 X 22 = P44,000

Problem No. 2
1. Inventoriable cost for variable costing
DM P320,000
DL 120,000
VOH 80,000
Total P520,000

2. Inventoriable cost for absorption costing

DM P320,000
DL 120,000
VOH 80,000
FOH 200,000
Total P720,000

3. (a) Variable Costing (b) Absorption Costing

Sales Revenue P1,120,000 P1,120,000
VOH (468,000) (468,000)
FOH (200,000) (180,000)
Total OI 452,000 472,000
VS and Ad (60,000) (60,000)
FS and Ad (90,000) (90,000)
Net Income P302,000 P322,000

3. FOHVV = (BP-AP) X Std FOH/U

-4,000 = (62,500 - X) X .32
.32 X = 24,000
.32 .32
 X = 75,000 Units

4. Budgeted Production = Budgeted FOH

Std. FOH / Unit
= 20,000
.32
= 62,500 Units

5. Decreased by 5,000 units

6. (a) Absorption (b) Variable
Change in Inventory in Inventory
=5,000 x 1.32 = 5,000 X 1
= 6,600 = 5,000

7. Variable CCY S @ Standard

= 80,000 X 1 = P80,000

8. Manufacturing CCY S @ Standard

= 80,000 X 1.32 = P105,600

MSQ 2504 VS & AC

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

MAS 2505 - SHORT-TERM DECISION

Problem 1 #1 #2 #3 I=Irrelevant
Insurance I-R I R R=Relevant
Licenses R I R
Taxes I I R
Garage Rent I I R
Depreciation I I R
Gas, tores & Repairs R R I

Pert II
1D 6B
2A 7C
3C 8C
4B 9D
5C 10 D
Problem No. 2 #2
#1 DM P1000 Cost-Produce P132,000
MH 200 OC 25,000
DL 8,000 Total = M P157,000
VOH 4,000 Total Cost=B 180,000
Unit Cost=N P13,200 Increase by P23,000
Unit Cost=B 18,000
Increase by P4,800

#3
Cost to Produce P132,000
GC 52,000
Total - M P184,000
Total Cost - B 180,000
Net Cost P4,000

Problem No. 3
1. Relevant Cost to Produce P37
Relevant Cost to buy 36
Advantage P1
Decision: Buy

2. Maximum amount @ P37

= (DM + DL + VOH)
= 20 + 10 + 5 = 37

Problem No. 3
1. a. Variable Costing Method a. Through Put Costing
DM P400,000 DM 400,000
DL 200,000 ÷ 80,000
VOH 160,000 = 5/Unit
Total Cost P760,000 x End 5,000
÷ 80,000 End FG P25,000
Cost/Unit 9.5
X (80,000-75,000) 5,000
End FCT P47,500

2. Variable Costing NI 3. Absorption Costing NI

Sales P1,875,000 P1,875,000
VOH @ 9.5 (712,500) (712,500)
FOH @ 3AC (240,000) (225,000)
CM P922,500 P937,500
FS & Ad (90,000) (90,000)
Net Income (45,000) (45,000)
P787,500 P902,500
*Under through put, Net Income = P765,000
MSQ 2505
Requirement 1
1A 6B 11 C
2A 7D 12 A
3A 8B 13 D
4C 9B 14 B
5C 10 B 15 A

Problem 4
Requirement 1
1. Units sold = P180,000 units
2. Income Under VC = P236,000
3. Units in End FG = 11,500 units

Problem 5
1. Treatment of Fixed Overhead Cost
CA 2. P110,000 net income under Absorption Costing
CB 3. P162,000 Net Income under AC

Problem 6
1. Cost of Ending Inventory under V+C/VC
Cost of Goods Sold Composition:
VOH = 138,600 @5.25
FOH = 19,800 @ .75
Under = 3,000

Ending FG = (27,000-20,400) X (5.25 + .75)

= P3,600 Under Absorption

Ending FCT = (27,000-26,400) X 5.25

= P3,150

2. Variable Costing Net Income

AC Net Income = P35,400
Less FOH (450)
VC Net Income P34,950

Problem 7
BEP in Units= FOH
CM Price
= (P40,000 ÷ 20,000 X 100,000_
[(40,000 ÷ 20,000 X 100,000) + 440,000] /80
= P200,000
(200,000 + 440,000) /80
P20,000
8
= 25,000 units
Problem 8
1. Standard CM P48,000
V C Variances (5,000)
Actual CM p43,000
Less: FC
FOH P21,000
FS & AE 6,000 (27,000)
P16,000

2. Standard VC P80,000
÷ Strd Cost/Unit 1
Unit Sales P80,000

MAS 2505
MULTIPLE CHOICE PAGE 3 OF 8
1D 11 C
2B 12 B
3D 13 A
4D 14 D
5B 15 C
6A
7D
8B
9B
10 C

PROBLEM 4
PRODUCTS THAT SHOULD BE SOLD AT SPLIT-OFF POINT
-DELUXE (DUE IN INCREMENT LOSS OF p15,000 IF PROCESSED FURTHER)

PRODUCTS THAT SHOULD BE PROCESSED FURTHER

-ECONOMY (WITH INCREMENTAL PROFIT OF P5,000)
-SUPREME (WITH INCREMENTAL PROFIT OF P2,000)

MAS 2505
PROBLEM 5
1. SILKY SHINY TOTAL
Revenue 17,280,000 1,872,000 36,000
Costs (10,080,000) (4,320,000) (14,400,000)
Gross Profit 7,200,000 14,400,000 21,600,000
Common Cost (8,400,000)
Operating Profit 13,200,000

2. SILKY SHINY TOTAL

Inc. Revenue 17,280,000 35,040,000 52,320,000
Inc. Costs (20,160,000) (3,840,000) (24,000,000)
Inc. GP (2,880,000) 31,200,000 28,320,000
Inc. Common Cost (16,800,000)
Inc. OP 11,520,000
Accept

Problem 6
a. SP/U 66.10
VMC/U (37.90)
VSA/U (0.70)
Inc. P/U 27.50
x Units X 2,000
Inc. Profit 55,000

b. SP/U 72.90
VMC/U (37.90)
VSA/U (1.80)
CM/U 33.20 -opportunity cost/u

c. CM/U 33.20
x Units x 1,300
Opp. Cost 43,160
Allocated Opp. Cost 2,000
VC/U 21.58
SP/U @ minimum 38.60
60.18

Problem 7
1. Product A Product B Total
Sales 630,000 340,000 970,000
VC (280,000) (85,000) (365,000)
CM 350,000 255,000 605,000
FC (140,000) (180,000) (320,000)
Profit 210,000 75,000 285,000
Old Profit (260,000)
Inc. Profit 25,000

2.
Inc. in Profit (A) 70,000
Dec. in Profit (B) [300,000 X 23.33%] (70,000)
Effect on Profit -0-

3.
Required Profit - C 250,000
Inc. FC-C 75,000
Req. CM-C 325,000
CMR 40%
Req. Sales -C 812,500

Multiple Choice (Page 5 of 8)

 1C
2D
3C
4D
5C
6D
7C

Problem 8
1. Buy
DM/U 10.35
DL/U 4.20
VOH/U 1.05
Supervision/U 0.75
Future Dep'n/U 2.25
Total RC/U (make) 18.60
Unit RC to buy (18)
Adv. (Disadv) of buying/U 0.60
X # of units X 60,000
Total Adv. (Disadv.) of buying 36,000

MAS 2505
Problem 8
2. Indifferent @ 75,000 units
Make @ 90,000 units

DM/U 75,000 u. 90,000 u.

DL/U 10.35 10.35
Supervision/U 4.20 4.20
Future Dep'n/U 1.05 1.05
Total RC/U (make) 0.60 0.50
Unit RC to buy 1.80 1.50
Adv.(Disadv.) of buying/U 18 17.60
X # of units (18) (18)
Total Adv.(Disadv.) of buying -0- (0.40)
X 90,000
(36,000)

3. Reliability of scheduled delivery

Reliability of quality
@ smaller units choose to buy outside
@ larger units choose to make

Problem 9
1. SP/U 56
DM/U (25)
DL/U (22)
MS/U (2)
 CM/U 7
X # of units X 500
Inc. in CM 3,500
Batch level cost (4,000)
Decrease in Profit (5,000) Reject Special Order

2. CM/U 7
X # of units X 1,000
Inc. CM 7,000
Batch level cost (4,000)
Inc. in Profit 3,000 Accept Special Order

3. Small orders does not justify or maximize the batch level cost.
Check the capacity
Check the effect on regular customers

Problem 10
1. SP/U 14
VC/U (9+1.5) (10.5)
CM/U 3.5
X # of units X 15,000
Inc. in CM 52,500 Accept Offer

2. SP/U 14
VC/U (10.5)
CM/U 3.5
X # of units X 40,000
Inc. in CM 140,000
Opp. Cost @ 5.7cm (114,000)
Inc. in CM 26,000 Accept Offer

3. @ 15,000 units =10.50

@ 40,000 units =13.35
*10.50 + (114,000/40,000 u)

4. Inc. in CM 140,000
CM/U / 5.7
24,561 units

Problem 11
1. SP/U 32
VC/U (18)
CM/U 14
X Inc. in unit sales X 12,000
Inc. CM 168,000
Inc. FC (80,000)
Inc. Profit 88,000
2. DM 10
DL 4.5
VOH 2.3
VSE 3
Import Duties 1.70
Permits & Licenses 0.45
21.95

3. VSE 1.2

4. Avoidable FOH 20,000

Avoidable FSE 7,000
Advantage 27,000
Opp. Cost (42,000)
Disadvantage of (15,000)
Closing the Plant

Decision: Kee the plant open

5. FOH 3.75
VSE 0.40
VMC/U 16.80
RC/U 20.95

6. DM/U 10
DL/U 4.5
VOH/U 2.3
Inc. FOH/U 3
Add'l Processing 5
SC 3.5
Inc. Costs 28.3
Opp. Cost 6
Minimum SP 34.3

Problem 12
1. Process Further
Inc. Revenue (30.20) 10
Inc. Costs (2+5.8) (7.8)
Inc. Profit 2.2

2. SP of wool yarn/U 20
Add'l Cost/U 7.8
Minimum Price/u 27.8

Problem 14
Total Capes Hand bags
Complete set (70%) 1,050 1,050 1,050
Dress & Capes (6%) 90 90 -
Dress & Bags (15%) 225 - 225
Dress only (9%) 135 - -
Total Sales 1,500 1,140 1,275

Total Capes Bags Total

SP/U 320 44 15.2
VC/U (128) (31.2) (10.4)
CM/U 192 12.8 4.8
X # OF UNITS X 1,500 X 1,140 X 1,275
INC. CM 48,000 14,592 6,120 68.712
ADD'L MATERIAL COST (20,000)
ADD'L CUTTING COST (8,000)
ADD'L SPECIAL CUTTING COST (19,656)
OPPORTUNITY COST (8,920)
INC. PROFIT 12,136

Multiple Choice (Page 8 of 8)

1A
2D
3A
4A
5C
6B
7C
8D
9A
10 C

MSQ 2505
1A 11 D 21 A 31
2D 12 B 22 C 32
3D 13 A 23 C 33
4C 14 A 24 B 34
5 D;D 15 A 25 C 35
6A 16 C 26 A 36
7C 17 B 27 D 37
8B 18 C 28 C 38
9B 19 A 29 C 39
10 A 20 B 30 C 40

MAS 2506
Marcelino Company
a. None; due to excess capital of P375,000
b. Sustainable Growth Rate 36.36%
c. Need additional fund of P120,000
d. No need for additional capital fund due to excess capital of P187,500

MAS ECONOMICS
 1C 11 D 21 B 31
2A 12 A 22 B 32
3A 13 B 23 A 33
4C 14 C 24 C 34
5A 15 D 25 C 35
6C 16 B 26 C 36
7A 17 D 27 B 37
8B 18 A 28 D 38
9D 19 A 29 D 39
10 D 20 A 30 B 40

MAS - RESPONSIBILITY ACCTG AND TRANSFER PRICING

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

MAS - PERFORMANCE MEASURE AND BALANCED SCORECARD

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

MSQ 2506
1B 11 C 21 D 31
2D 12 B 22 C 32
3D 13 C 23 B 33
4C 14 B 24 D 34
5A 15 A 25 D 35
6D 16 A 26 B 36
7A 17 C 27 D 37
8C 18 D 28 B 38
9C 19 B 29 D 39
10 D 20 C 30 D 40

MSQ 2507
 1C 11 A 21 B 31
2A 12 A 22 D 32
3D 13 D 23 A 33
4B 14 C 24 D 34
5A 15 B 25 A 35
6A 16 B 26 A 36
7B 17 D 27 D 37
8C 18 D 28 D 38
9C 19 C 29 D 39
10 C 20 B 30 B 40
WORKING CAPITAL MANAGEMENT - 2508
Answers in Straight Problems

PROBLEM 1 1 ₱ 972,000
Reina Company 2 ₱ 954,000
3 ₱ 1,015,200

PROBLEM 2 a ₱ 2,200,000
Crop Insurance b NO

PROBLEM 3 1 ₱ 3,200,000
Tagum Specialties 2 ₱ 192,000

PROBLEM 4 a ₱ 244,949
Bicol Company b ₱ 122,475
 c ₱ 14,696
d ₱ 244,949
e.1 ₱ 244,949
e.2 ₱ 172,475
e.3 ₱ 17,969
e.4 ₱ 50,000 minimum
₱ 244,949 maximum

PROBLEM 5 1 ₱ 525,000
Santiago Inc. 2 ₱ 42,000
3 ₱ 469,800

PROBLEM 6 ₱350,000
Daily Mart

PROBLEM 7 a 2,236 units

CDO Pipe b 54 orders
c 1,118 ave inventory
d ₱2,684

PROBLEM 8 a 300 units

Hingis Athletic Wear b 150 ave. inventory
₱225
c 200 ave. inventory
₱300

PROBLEM 9 a Yes
Tiger Sports Equip. b 8.75%

PROBLEM 10 a 108 days

Cebu Manufacturing 63 days
b ₱4,200,000
c ₱75,000

PROBLEM 11 a 25 days
Mildree Company b ₱416,667
c 22 days = ₱366,667
Effect: Decease in Ave. Receivables

PROBLEM 12 Approximate Int. Effective Int. Decision

SA 24.48% 27.42% Avail
SB 44.54% 55% Avail
SC 36.37% 43.59% Avail

PROBLEM 13 8.70%
Solar Company

PROBLEM 14 a 9%
 b 10%
c 11.11%
d 13.85%

PROBLEM 15 1 23.10%
Blumax Corp. 2 12.77%

PROBLEM 16 a 14.24%
Care Centers b 13.71%

PROBLEM 17 a 8.29%
Friendly Bank b 10.38%

INVESTMENT BANKING
Answers in Straight Problem

PROBLEM 18 a .3 dilution
Mindanao Timber b Yes (2.23>1.8)
c No (1.77<1.8)

PROBLEM 19 a 8.33%
Winston Sporting Goods b 1,100,000 shares

PROBLEM 20 a 1.59%
Walton and Co. b 12.94%
c 14.71%

PROBLEM 21 a 760,000 Shares

Wonder Drug Co b To address potential dilution
c EPS=3.2
P/E=12.5
P/Sh=34.75
d EPS=3.34/share
P/E=41.75

PROBLEM 22 a ₱7,040,000
Spears Corp. b 1.67
c 1.43
d 12%
e 16.15%

WORKING CAPITAL MANAGEMENT - 2508

Multiple Choice MSQ 2508
1D 1C 11 D 21 A 31 D
2B 2C 12 B 22 B 32 B
3D 3C 13 A 23 C 33 C
4C 4A 14 A 24 D 34 C
5B 5C 15 C 25 D 35 D
 6C 6C 16 D 26 D 36 B
7B 7A 17 D 27 C 37 C
8D 8A 18 B 28 B 38 A
9B 19 A 29 C 39 B
10 D 20 A 30 C 40 D

RISK, RETURNS AND CAPITAL STRUCTURE - MAS 2509

Answers in Straight Problems

PROBLEM 1 1 ₱1,010.17
2 ₱980.05

PROBLEM 2 7.43%
PROBLEM 3 6.21%
PROBLEM 4 9.98%
PROBLEM 5 AD
BC
CC

PROBLEM 6 a ₱93.75
b ₱103.45

PROBLEM 7 6.44%
PROBLEM 8 a 7.67%
b 7.86%

PROBLEM 9 a 7.10%
b 69.52

PROBLEM 10 a 3 years from now

b 283.5
c 243.04

PROBLEM 11 ₱20

PROBLEM 12 a 7.45%
b 7.50%
c2

PROBLEM 13 53.32
PROBLEM 14 50.38
PROBLEM 15 1 10.85%
2 ₱2,500,000
3 11.57
4 ₱50,000,000
5 12.05%
6 PA-Accept (13.5>10.85)
PB_Accept (12.3>11.57)
 PC-Reject (11.5<12.05)
PD-Reject (11.25<12.05)

RETURNS AND CAPITAL STRUCTURE - MAS 2509

Multiple Choice
1C 11 D 21 C 31 C
2A 12 C 22 B 32 D
3D 13 D 23 D 33 D
4C 14 B 24 B 34 D
5 D/D 15 B 25 B 35 B
6D 16 A 26 D
7D 17 D 27 C
8D 18 B 28 D
9A 19 B 29 D
10 D 20 A 30 A

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

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

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

MAS DRILL 4
1C 11 B 21 D
2B 12 C 22 A
3A 13 A 23 B
4C 14 A 24 B
5A 15 D 25 C
6A 16 C 26 A
7A 17 B 27 B
8C 18 B
9B 19 A
10 B 20 C
 9 1. Recline Company
2. Relax Co. - P100,000
Recline Co. - P0.00
3. Relax Company

Multiple Choice
1B 11 C 21 D
2D 12 D 22 C
3D 13 C 23 D
4A 14 C 24 B
5C 15 A 25 C
6D 16 A
7C 17 C
Nov. 2017 8B 18 A
35 9D 19 D
20,000.00 10 B 20 C

PROBLEM 4
4,800,000
160,000
41.67/unit
P45/unit
a 4,375,000 increase
b 105,000 decrease
c No changes
d 175,000 increase
 31 A 41 A 51 B 61 A 71 B
32 D 42 C 52 A 62 D 72 B
33 C 43 D 53 C 63 A 73 A
34 B 44 B 54 D 64 C 74 A
35 D 45 C 55 C 65 B 75 B
36 D 46 C 56 A 66 C 76 D
37 A 47 D 57 C 67 B 77 E
38 A 48 B 58 C 68 D 78 E
39 C 49 A 59 C 69 C 79 D
40 A 50 D 60 C 70 B 80 C

% x .03) + (35% x 0.2) + (30% x 0.5)]

Total FC
WA CMR

1,020,000
34%

FC + DI
WCMR
 1,020,000 + 113,900
34%

3,335,000

x 0.75) + (40 x 0.25)]

Total FC
WA USP

100,000
25

40,000 units

30,000
10,000
40,000

Total FC
WA CMR

390,000
0.52

750,000

[(12 x 3) + (16 x 1)]

52

Total FC
Comp. UCM

390,000
52

7,500

[(12 x 2/3) + 16 x 1/3)]

 13.33
[(20 x 2/3) + (40 x 1/3)]
26.67
WAUCM
WA USP
13.73
26.67
50%

Total FC
WACMR

390,000
0.50

780,000

500,000
390,000
110,000

= DP b4 tax + FC
WACMR

= 328,400 + 390,000
52%

= 1,382,500
C 21 C
D 22 D
D 23 D
D 24 D
A
B
D
A
D
D
 Standard
Hours @ SR
(SHSR)
P2,190,375
2,289,938
P4,480,313

P210,375

Volume Variance
A 41 D
A 42 A
A 43 D
C 44 C
D 45 D
B 46 A
C 47 D
B 48 A
B 49 C
B 50 C
A
B
B
B
B
B
D
B
A
A
B 41 B
D 42 D
C 43 D
C 44 A
C 45 C
B
A
A
C
C
B 41 C 51 D 61 C 71 D 81 A
C 42 A 52 A 62 C 72 D 82 A
D 43 C 53 B 63 D 73 C 83 A
A 44 C 54 C 64 D 74 D 84 C
A 45 C 55 C 65 D 75 D 85 A
B 46 D 56 C 66 D 76 B 86 A
C 47 D 57 D 67 D 77 A 87 D
D 48 D 58 A 68 C 78 B 88 C
B 49 A 59 A 69 A 79 D 89 A
C 50 C 60 A 70 D 80 C 90 A

D 41 C 51 A 61 C 71 D 81 D
D 42 D 52 C 62 B 72 C 82 B
D 43 C 53 C 63 A 73 A 83 C
C 44 D 54 A 64 D 74 C 84 A
C 45 B 55 C 65 A 75 D
A 46 B 56 B 66 B 76 A
B 47 C 57 B 67 C 77 B
D 48 D 58 D 68 A 78 C
D 49 D 59 A 69 A 79 A
A 50 B 60 A 70 C 80 D

41 D 51 C 61 C
42 D 52 D 62 A
A 43 B 53 B 63 B
D 44 C 54 B 64 C
C 45 D 55 A 65 D
C 46 A 56 C 66 A
47 A 57 C 67 A
48 B 58 B 68 B
B 49 D 59 D 69 B
C 50 C 60 B 70 A

C 41 B
A 42 A
A 43 C
D 44 B
B 45 D
C 46 D
C 47 D
A 48 A
C 49 A
A 50 B
B 41 D 51 D
B 42 A 52 A
D 43 A 53 D
D 44 A 54 B
B 45 B 55 C
A 46 A 56 C
A 47 D
B 48 A
D 49 D
B 50 D
41 C 51 D 61 B 71 A 81 C
42 D 52 D 62 A 72 D 82 C
43 D 53 B 63 C 73 B 83 C
44 B 54 D 64 C 74 B 84 C
45 D 55 A 65 C 75 B 85 D
46 C 56 C 66 A 76 D 86 C
47 C 57 C 67 D 77 C 87 D
48 D 58 B 68 A 78 B 88 D
49 A 59 C 69 B 79 D
50 D 60 B 70 D 80 D
51 A
52 D
53 C
54 B
55 D
56 C
57 B
58 D
59 C
60 C

51 D
52 D
53 D
54 B
 91 C 101 B 111 C
92 A 102 A 112 D
93 B 103 C 113 C
94 A 104 A 114 D
95 C 105 A 115 B
96 C 106 D 116 C
97 C 107 C 117 B
98 B 108 C
99 C 109 B
100 D 110 C
AT 2502
1C 11 C 21 D 31 A 41 A
2C 12 B 22 D 32 A 42 D
3C 13 D 23 B 33 C 43 B
4B 14 D 24 D 34 B 44 A
5B 15 D 25 D 35 C 45 D
6D 16 D 26 D 36 C
7A 17 D 27 D 37 A
8A 18 C 28 C 38 C
9D 19 C 29 A 39 C
10 D 20 A 30 C 40 C

AT 2503 DIY DRILL

1A 11 D 21 D 31 D 1C 11 C 21 D 31
2D 12 C 22 D 32 D 2A 12 A 22 D 32
3D 13 B 23 C 33 D 3D 13 D 23 B 33
4D 14 A 24 B 34 A 4B 14 C 24 B 34
5B 15 D 25 C 35 C 5A 15 A 25 A 35
6C 16 D 26 C 6C 16 A 26 A
7C 17 A 27 A 7A 17 B 27 A
8B 18 D 28 C 8D 18 A 28 B
9C 19 A 29 B 9D 19 D 29 D
10 B 20 D 30 C 10 B 20 C 30 C

AT 2501 AT 2504 DIY DRILL

1A 1D 11 B 21 A 1C 11 C
8A 2A 12 D 22 D 2D 12 A
9D 3D 13 D 23 C 3C 13 B
10 A 4D 14 A 24 B 4C 14 D
11 D 5C 15 C 25 C 5C 15 A
14 D 6D 16 B 26 A 6B 16 B
7D 17 C 27 D 7A 17 D
8B 18 B 28 D 8A 18 D
9C 19 D 29 C 9C 19 B
10 D 20 B 30 B 10 D 20 A

AT 2505 DIY DRILL

1B 11 A 21 D 1B 11 D
2C 12 D 22 B 2D 12 D
3A 13 C 23 D 3B 13 B
4B 14 C 24 B 4D 14 D
5D 15 C 25 C 5B 15 A
6D 16 D 26 D 6A 16 A
7D 17 C 27 C 7D 17 B
8C 18 D 28 A 8A 18 D
9D 19 A 29 B 9A 19 A
10 C 20 C 30 D 10 C 20 D
AT 2506
2B
3A
6A
14 B
17 C
18 D
19 C

AT 2507 DIY DRILL

1D 11 A 21 A 31 A 1A 11 D
2B 12 D 22 A 32 D 2B 12 B
3D 13 C 23 B 33 D 3A 13 A
4B 14 C 24 D 4B 14 C
5A 15 D 25 B 5D 15 D
6A 16 D 26 B 6D
7A 17 D 27 B 7C
8A 18 C 28 A 8D
9B 19 A 29 D 9C
10 A 20 C 30 A 10 C

AT 2508 DIY DRILL

1A 11 D 21 B 31 A 41 C 51 B 1A 11
2A 12 D 22 C 32 B 42 D 52 B 2B 12
3D 13 A 23 B 33 D 43 D 3C 13
4D 14 B 24 A 34 A 44 D 4D 14
5D 15 C 25 A 35 B 45 D 5B 15
6B 16 B 26 B 36 D 46 C 6A 16
7C 17 C 27 A 37 D 47 D 7A 17
8B 18 B 28 A 38 D 48 D 8D 18
9B 19 D 29 D 39 B 49 C 9C 19
10 B 20 C 30 B 40 D 50 A 10 D 20

AT 2509 DIY DRILL

1C 11 D 21 A 1C 11 B
2D 12 A 22 C 2C 12 D
3C 13 B 23 A 3A 13 A
4A 14 A 24 A 4A 14 B
5D 15 C 25 D 5D 15 A
6C 16 A 26 C 6B
7B 17 B 7D
8A 18 D 8A
9D 19 A 9B
10 A 20 A 10 C

AT 2510 DIY DRILL

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

AT 2511 DIY DRILL

1C 11 D 21 C 31 C 1B 11 D
2B 12 C 22 C 32 A 2D 12 A
3D 13 B 23 B 33 B 3A 13 D
4C 14 B 24 A 34 B 4D 14 B
5A 15 D 25 B 35 B 5B 15 D
6A 16 C 26 B 6D 16 D
7B 17 A 27 A 7B 17 B
8B 18 B 28 B 8B 18 A
9D 19 C 29 A 9B 19 A
10 B 20 B 30 10 B 20 A
 Ex. 5
C RGP = P389,810 (Principal)
D x 20%
D P77,962
A
B Ex. 6 Year-end Procedures m. Installment Sales
1. Adjusting Entries
Installment Sales P400,000
Cost of Installment Sales 260,000
DGP - 2018 146,000

DGP - 2017 P62,400

DGP - 2018 76,300
RGP P138,700

Closing Entries
RGP P138,700
Sales 706,000
Cost of Sales P510,000
Loss on Rep 1,600
Expenses 256,008
Income Summary 77,100

Income Summary P77,100

Retained Earnings 77,100

2.
Regular Sales P706,000
Cost of Sales (510,000)
Realized Gross Profit 138,700
Total Gross Profit P334,700
Expenses (256,000)
Loss on Rep (1,600)
Net Income P77,100

Ex. 7 Analysis of Installment Sales Account

 1. DGP 2016 P2,800
DGP 2017 12,800
DGP 2018 69,400
RGP P85,000

2.
Cash 2016 P8,000
2017 38,788
2018 216,875
Total P263,662

B 21 B 31 D
C 22 B 32 B
C 23 A 33 D
A 24 C
D 25 C
B 26 B
A 27 C
A 28 D
A 29 C
B 30 B

B
B
C
TAX 2501
1C 11 C 21 A 31 C 41 A 51 B 61 B 71 C
2D 12 A 22 D 32 D 42 B 52 C 62 A 72 B
3B 13 B 23 D 33 C 43 D 53 C 63 B 73 A
4B 14 A 24 C 34 A 44 D 54 B 64 B 74 C
5C 15 B 25 C 35 C 45 C 55 A 65 C 75 B
6C 16 D 26 C 36 D 46 A 56 A 66 A 76 D
7D 17 A 27 B 37 D 47 D 57 B 67 A 77 B
8D 18 D 28 A 38 A 48 C 58 D 68 C 78 B
9C 19 C 29 A 39 B 49 A 59 B 69 C 79 A
10 C 20 C 30 D 40 B 50 C 60 D 70 C 80 D

TAX 2502
1C 11 D 21 B 31 D 41 C 51 C 61 D 71 D 81 C
2A 12 B 22 A 32 B 42 D 52 D 62 D 72 C 82 C
3B 13 A 23 B 33 D 43 D 53 D 63 A 73 D 83 A
4D 14 B 24 C 34 A 44 D 54 C 64 B 74 B 84 B
5B 15 B 25 B 35 D 45 D 55 B 65 C 75 B 85 C
6B 16 A 26 B 36 B 46 C 56 D 66 A 76 B 86 A
7A 17 D 27 C 37 C 47 B 57 C 67 D 77 D 87 C
8B 18 B 28 A 38 C 48 D 58 C 68 A 78 A 88 A
9B 19 C 29 C 39 A 49 D 59 A 69 D 79 B 89 C
10 C 20 A 30 D 40 A 50 D 60 D 70 C 80 C 90 D

Percentage Tax (MC)

1D 11 A 21 A 31 A 41 B 51 D 61 D 71 A
2D 12 A 22 A 32 D 42 A 52 C 62 C 72 B
3C 13 D 23 A 33 C 43 D 53 B 63 C 73 C
4A 14 B 24 D 34 C 44 B 54 A 64 C
5B 15 B 25 C 35 B 45 A 55 B 65 D
6A 16 A 26 A 36 D 46 B 56 D 66 D
7D 17 B 27 D 37 B 47 B 57 A 67 C
8C 18 C 28 D 38 B 48 D 58 C 68 C
9D 19 B 29 A 39 D 49 B 59 B 69 C
10 B 20 C 30 D 40 A 50 A 60 D 70 A

Cash P21,875
FR CFF P21,875

YEAdj. Entries
DFR-IFFranchise fee P6,551,562.50
FR-IFFee P6,551,562.50
F Cost P1,965,468.25
Df Cost P1,965,468.75
RGP=P4,586,094.25

Installment Sales Method

FR-IFF P6,551,562.50
 Franchise Cost P1,965,468.75
DGP P4,586,093.75

DGP P2,604,656.5
RGP P2,604,656.25

MC Franchise Donor's Tax

1A 1C 11 A 21 B 31 A 41 C 51 C 61 A 71
2D 2B 12 B 22 C 32 B 42 C 52 C 62 D 72
3C 3C 13 C 23 D 33 C 43 C 53 A 63 C 73
4B 4C 14 B 24 C 34 C 44 C 54 D 64 B 74
5D 5D 15 D 25 D 35 A 45 A 55 B 65 C 75
6D 6B 16 C 26 C 36 C 46 A 56 D 66 D 76
7B 7B 17 C 27 B 37 A 47 B 57 C 67 A 77
8C 8A 18 A 28 B 38 D 48 B 58 A 68 B
9B 19 A 29 A 39 D 49 D 59 D 69 C
10 C 20 C 30 D 40 C 50 B 60 C 70 B

Exercise 1 FRANCHISE
(a) Cash P56,000
Notes Receivable 84,000
Discount on NR P14,368
Franchise Revenue 125,632
*FV FACTOR 2.48685

(b) Cash P56,000

Unearned Franchise Revenue P56,000
*NR is recorded through Memorandum Entry

© Cash P56,000
Notes Receivable 84,000
Discount on N/R P14,368
Revenue from FF 56,000
Unearned FF 69,632

Exercise 2
a. P79,134.35
b. Cash P20,000
Notes Receivable 80,000
Discount on N/R P20,865.60
Unearned FF P79,134.40

c. (1) Cash P20,000

N/R 80,000
Disc. On NR P20,865.60
Revenue on FF 20,000
Unearned FF 59,134.35
(2) Cash P20,000
 Revenue of FF P20,000
(3) Ignore

Exercise 3
Cash P4,687,500
Notes Receivable 3,125,000
DFR-IFF P7,812,500

Deferred FC P1,875,000
Cash P1,875,000

Cash P1,175,781.25
Note Receivable P781,250
Interest Revenue 312,500
Franchise Revenue 82,031.25

YEA Entries
DFR-IFF P7,812,500
FR-IFF P7,812,500

Franchise Cost P1,875,000

Deferred Cost P1,875,000
*RGP 2018 = P5,937,500

INSTALLMENT METHOD
(2) FR-IFF P7,812,500
Franchise Cost P1,875,000
DF Revenue 5,937,500

DGP P4,156,250
RGP P4,156,250
*(781,250 + 4,687,500) x .76

Exercise 4
(1) Reasonably Assured
Cash P3,281,250
Notes Receivable 5,468,750
Disc. On NR P2,198,437.50
DFR IFF 6,551,562.50

Deferred FC P1,964,468.75
Cash P1,964,468.75

Expenses P46,875
Cash P46,875

Cash P1,093,750
Discount on NR 654,062.50
 N/R P1,093,750
Interest Revenue 654,062.50

INSTALLMENT SALES
STRAIGHT PROBLEMS
Ex 1 - Cost Recovery and Installment Sales Method
1. a. GROSS PROFIT - Cost Recovery Method
2016 2017 2018
Sales P688,128 P98,304 P294,912 P294,912
Cost of Sales (516,096) (98,304) (294,912) (122,880)
Gross Profit P172,032 P - P- P172,032

b. GROSS PROFIT - INSTALLMENT SALES METHOD

2016 2017 2018
Sales P688,728 P98,304 P294,912 P294,912
Cost of Sales (516,096) (73,728) (221,184) (221,184)
Gross Profit P172,032 P24,576 P73,728 P73,728

2. YEAR END ADJUSTMENT

-Under Cost Recovery Method
2016 2017 2018
DGP - - P172,032
RGP - - P172,032

-Under Installment Sales Method

2016 2017 2018
DGP P24,576 P73,728 P73,728
RGP P24,576 P73,728 P73,728

Ex 2 - Cost Recovery and Installment Sales Method

a. Realized GROSS PROFIT
2017 P240,000 x .25/1.25 = P48,000
2018 P160,000 x .28/1.28 = P35,000
Total RGP P80,000

b. Deferred Gross Profit

2017 (480K - 130K - 240K) x .25/1.25 P22,000
2018 (620K - 160K) x .28/1.28 P100,625
Total DGP P122,625

Ex 3 INSTALLMENT SALES METHOD

JOURNAL ENTRIES
1. YEAR 2017
DTD Entries (2017) P491,520
Installment Accounts Receivable P491,520
Installment Sales

Cash P92,160
 IAR-2017 P92,160

=Installment Accounts Receivable Balance 2017

P399,360

YEA Entries (2017)

Cost of Installment Sales P368,640

Shipment on Inst. Sales P368,640

Installment Sales P491,520

Cost of Installment Sales P368,640
DGP-2017 P122,880

DGP-2017 P23,040
Realized Gross Profit P23,040

=Deferred GROSS PROFIT BALANCE 2017

-P99,840

2. Year 2018
IAR-2018 P512,000
Installment Sales P512,000

Cash P250,880
IAR-2017 P153,600
IAR-2018 P97,280

Rep. Merchandise P13,312.50

DGP P6,400
Loss on Repossessio P5,887.50
IAR-2017 P25,000

MC INSTALLMENT SALES
1C 6D
2D 7B
3A 8D
4C 9B
5B 10 A

Installment Accounts Receivable 2017

=P220,160
Installment Accounts Receivable
=P414,720

Year End Adjustments

Cost of Installment Sales P371,200
Shipment on Inst. Sales P371,200
Installment Sales P512,000
Cost of Inst. Sales P371,200
DGP 2018 P140,800

DGP-2017 P38,400
DGP-2018 P326,752
RGP P65,152

DGP Balance 2017 P55,040

DGP Balance 2018 P144,048

Ex. 4 Over/Under Allowance on Trade Ins

DTD Entries
Automobile - Trade in P172,800
Over - Allowance on Trade in 57,600
ICR - 2018 979,200
Installment Sales P1,209,600

Cost of Installment Sales P864,000

Automobile - New P864,000

Cash P144,000
ICR - 2018 P144,000

YEA Entries
Installment Sales P1,209,600
Cost of Installment Sales P954,000
Over allowance on Trade In 57,600
DGP 2018 288,000

DGP 2018 P79,200

RGP-2018 P79,200

TAX 2505
1A 11 D 21 A 31 B 41 D 51 C 61 C 71 C 81 D
2B 12 D 22 A 32 D 42 A 52 B 62 C 72 C 82 C
3D 13 C 23 A 33 B 43 C 53 A 63 D 73 B 83 A
4B 14 D 24 C 34 A 44 A 54 D 64 D 74 B 84 D
5B 15 D 25 D 35 A 45 B 55 D 65 C 75 D 85 C
6B 16 C 26 D 36 C 46 A 56 D 66 B 76 D 86 B
7C 17 A 27 B 37 B 47 D 57 D 67 A 77 D 87 B
8A 18 C 28 D 38 D 48 A 58 D 68 A 78 D 88 B
9D 19 A 29 B 39 C 49 B 59 C 69 C 79 A 89 B
10 C 20 A 30 A 40 A 50 A 60 C 70 C 80 D 90 D

TAX 2506
1D 11 D 21 A 31 B 41 D 51 A 61 B 71 C 81 A
 2D 12 A 22 D 32 C 42 A 52 B 62 B 72 D 82 C
3B 13 C 23 A 33 D 43 A 53 C 63 C 73 D 83 C
4A 14 C 24 C 34 A 44 D 54 A 64 C 74 D 84 C
5A 15 A 25 C 35 B 45 C 55 A 65 D 75 A 85 D
6C 16 D 26 D 36 D 46 C 56 C 66 D 76 A 86 C
7A 17 B 27 A 37 D 47 D 57 A 67 C 77 A 87 C
8D 18 B 28 D 38 A 48 C 58 C 68 B 78 B 88 A
9B 19 D 29 A 39 D 49 A 59 B 69 B 79 B 89 D
10 B 20 D 30 A 40 50 D 60 C 70 C 80 A 90 A
800,000

TAX 2509 GROSS INCOME TAX 2510

1A 11 D 21 A 31 A 41 D 51 A 1B 11 D 21 A
2C 12 C 22 B 32 D 42 D 52 C 2B 12 C
3B 13 D 23 D 33 D 43 C 53 B 3C 13 B
4D 14 A 24 C 34 B 44 A 54 D 4D 14 C
5B 15 A 25 C 35 D 45 C 55 D 5C 15 B
6C 16 B 26 A 36 D 46 D 56 C 6D 16 A
7A 17 A 27 C 37 C 47 B 57 B 7B 17 A
8C 18 D 28 A 38 B 48 B 8D 18 C
9D 19 C 29 B 39 C 49 C 9A 19 D
10 B 20 C 30 B 40 B 50 D 10 20 B

TAX2511
1D 11 D 21 D 31 D 41 C 51 D 61 B 71 C
2B 12 C 22 C 32 D 42 A 52 B 62 B 72 A
3D 13 A 23 A 33 A 43 B 53 B 63 D 73 C
4B 14 D 24 C 34 B 44 B 54 C 64 D 74 D
5D 15 D 25 D 35 D 45 C 55 C 65 D 75 D
6D 16 D 26 A 36 A 46 C 56 B 66 B 76 A
7C 17 A 27 C 37 C 47 D 57 D 67 A 77 A
8C 18 B 28 D 38 A 48 A 58 A 68 B 78 A
9B 19 B 29 C 39 C 49 C 59 C 69 C 79 C
10 B 20 C 30 D 40 D 50 D 60 D 70 A
91 B
92 C
93 B
94 D
95 A
C
B
B
C
B
B
A
91 D
92 C
93 A
94 D A
95 C
96 A
97 B
98 C

91 B
92 A
93 B
94 A
95 D
96 B
True or False 2501
1T 6T 11 T
2T 7F 12 T
3T 8F 13 F
4T 9F 14 F
5F 10 F 15 F

Straight Problem: Formation

1 Contribution
a P1,125,000 45%
b P750,000 30%
c P625,000 25%
2a P1,125,000
b P750,000
c P625,000
3 Entries
Cash P500,000
A/R 81500.00
Inventory 320,000
PPE 1,775,000
Mortgage Payable P1,756,500
A Capital 1,125,000
B Capital 750,000
C Capital 625,000

4 Cash P500,000
A/R 81,500
Inventory 320,000
PPE 1,775,000
Mortgage Payable P1,756,500
A 1,000,000
B 750,000
C 750,000

Straight Problem: Operation

1 Division of Profit
Greggy: P249,900
Nelly: p156,300
2 Capital Balances
Greggy: P620,400
Nelly: P419,800

Straight Problem: Dissolution

1B Elmo P522,000
Lito P180,900
Romy P78,100
C Elmo P53,140
Lito P16,860
 Romy -
2B Elmo P570,940 67%
Lito P194,960 23%
Romy P85,100 10%

Straight Problem: Retirement

2 P198,750
Straight Problem: Liquidation
Lump Sum
D P27,800
J P128,205
E -
Straight Problem: Liquidation
Installment
C D O
1st - P32,327 P9,653
2nd P3,090 P15,819 P21,091
3rd P11,592 P11,592 P15,456

MC: Formation
1C
2C
3A
MC: Operations
1A
2B
3D
4A
5B
MC: Liquidation
1C
2A
3D
4C
5D
MC: Retirement
1A
2B
3D
4B
MC: Incorporation
1C
2B
3B
MC: Lump Sum
1A
2C
3C
 4C
MC: Installment
1D
2D
3C
4A
5B
6C

AFAR 2502
Problem 1
ERR = 75%
Recoverable Amt.
Fully secured creditors 451,585
Partially secured creditors 181,440
Unsecured credotprs
w/ priority 295,680
w/o priority 530,880

Problem 2
ERR=42.67%

Recoverable Amt.
Fully secured creditors 1,000,000
Partially secured creditors 0
Unsecured credotprs
w/ priority 152,500
w/o priority 480,000

Multiple Choice
1C 6A 11 C 16 B
2A 7B 12 28,621.50 17 D
3C 8D 13 C
4C 9B 14 D
5A 10 A 15 A

AFAR 2503
Multiple Choice
1C 6A 11 B
2A 7D 12 C
3B 8B 13 D
4C 9C
5C 10 B

AFAR 2506 - LONG-TERM CONSTRUCTION COST

MULTIPLE CHOICE
1B
2A
 3A
4C
5

STRAIGHT PROBLEMS
EXERCISE 1
1. JOURNAL ENTRIES
DTD ENTRIES 2016 2017 2018
CIP 1,512,000 2,520,000 504,000
CASH 1,512,000 2,520,000 504,000
A/R 2,240,000 2,240,000 1,120,000
PB 2,240,000 2,240,000 1,120,000
CASH 1,960,000 2,240,000 1,400,000
A/R 1,960,000 2,240,000 1,400,000

Const. Cost 1,512,000 2,520,000 504,000

CIP 168,000 840,000 56,000
Const. Revenue 1,680,000 3,360,000 560,000

Year-end Supporting Computations

2016 2017 2018
Contract Price 5,600,000 5,600,000 5,600,000
Less: ACTD 1,512,000 4,032,000 4,536,000
ACTC 3,528,000 448,000 -
ESTC 5,040,000 4,480,000 4,536,000
Estimated GP 560,000 1,120,000 1,064,000
% of completion 30% 90% 100%
(1,512,000/5,040,000) (5,032,000/4,480,000) (4,536,000/4,536,000)
2.
CIP
Beg. 2016 2017 2018
DTD-ACTD - 1,680,000 5,040,000
YEA-GPTD 1,512,000 2,520,000 504,000
End 168,000 840,000 56,000
1,680,000 5,040,000 5,600,000
3.
PB 2,240,000 4,480,000 5,600,000

Exercise 2 Straight Problems

1. Journal Entries 2016 2017 2018
Year-end Entries
Construction Cost 1,843,200
CIP 230,400
Revenue 2,073,600
Const. Cost 1,689,600 2,288,640
CIP 445,440 76,800
Revenue 1,244,160 2,211,840
Closing Entry
 PB 5,529,600
CIP 5,529,600

Year-end Supporting Computations

2. 2016 2017 2018
Contract Price 5,529,600 5,529,600 5,529,600
Less: ACTD 1,843,200 3,446,784 5,821,440
ACTC 3,072,000 2,297,856 -
ESTC 4,915,200 5,744,640 5,821,440
Estimated GP 614,400 (215,040) (291,840)
% of Completion 37.5% 60% 10%
(1,843,200/4,915,200) (3,446,784/5,744,640) (5,821,400/5,821,400)

CIP 2016 2017 2018

Beg. - 2,073,600 3,231,744
DTD-ACTD 1,843,200 1,603,584 2,374,656
YEA-GPTD 230,400 (445,440) (76,800)
End 2,073,600 3,231,744) 5,529,600
PB

AFAR 2506 Straight Problems

Exercise 3
Project 1 Project 2 Project 3
Contract Price 560,000 670,000 520,000 CIP
Cost-to-dare 450,000 126,000 330,000 Cost
Add'l Cost to Comp. 150,000 504,000 - GP/GL
Total Estimated Cost 600,000 630,000 330,000 Due from Cust.
(Current Asset)
Estimated GP/GL (40,000) 40,000 190,000 PB:
% of Completion 75% 20% 100%
GP/(GL) PARTIAL BALANCE SHEET
Proj. 1 Revenue (P560,000 X 75%) 420,000 Current Asset
Cost (420,000 + 40,000) 460,000 (40,000) Accounts receivable (1,080,000
Inventories
Proj. 2 Revenue (670,000 X 20%) 134,000
Cost (630,000 X 20%) 126,000 8,000

Proj. 3 Revenue (520,000 X 100%) 520,000

Cost (330,000 X 100%) 330,000 190,000 Current Liabilities
Progress Billings
Total Gross Profit (1,074,000 - 916,000) 158,000 Construction in Progress (670,0

PARTIAL INCOME STATEMENT

Revenues from Construction Fees 1,074,000
Cost of Construction 916,000
Gross Profit 158,000

Exercise 4
1. Amount billed 147,600
Accounts receivable, end 51,600
Cash collected 96,000

2. Profit recognized to date 46,800

Divide by 6.5%
Total est. initial profit 720,000

3. CIP, 12/31/16 156,000

Less: Profit recognized 46,800
to date
Actual cost in 2018 109,200

4. Actual cost to date 109,200

Divide by 6.5%
Total estimated cost 1,680,000

5. Journal Entries
Day-to-day
CIP 109,200
Cash 109,200
A/R 147,600
PB 147,600
Cash 96,000
A/R 96,000

Year-end adjustments
Construction cost 109,200
CIP 46,800
Const. revenue 156,000

Exercise 5
a. Contract Price 192M
Less Costs: Actual-to-date 124.8M
Add'l cost to comp. 28.8M 153.6M
Estimated GP 38.4M
% Completed (140.5M/192M) 73.33%
To-date RPV RTY
Sales Revenue (192M X 73.33%) 140.8M 96M 44.8M
Cost (153.6M X 73.33%) 112.64M 72M 40.64M
Gross Profit (38.4M X 73.33%) 28.16M 24M 4.16M

b.
CIP (124.8M + 28.16M) 152.96M
PB 128M
Due from customers 24.96M

Multiple Choice
1C 6B
 2D 7B
3D 8B
4D
5B

AFAR 2507 CONSIGNMENT SALES

ILLUSTRATIVE EXERCISES
CASE 1
1. Sales (8 TV sets X P35,000) 280,000
Less: Delivery Expenses 3,000
Commission Expenses (280,000 x 10%) 28,000 31,000
Check enclosed 249,000

2. NET PROFIT
Sales 280,000
Cost of Sales (250,000 + 5,000) X 8/10 204,000
GP 76,000
OPEX:
Delivery Exp. 3,000
Commission Exp. 28,000 31,000
Net Profit 45,000

3. Cost of consigned (250,000 + 5,000) X 2/10 51,000

4. JOURNAL ENTRIES (Profits not kept separate by consignee)

CONSIGNOR CONSIGNEE
Merchandise on Consignment 250,000 Memo entry
Shipment on consignment 250,000
Merchandise on consignment 5,000 No entry
Cash 5,000

No entry Consignor receivable 3,000

Cash 3,000
No entry Cash 280,000
Consignor payable 280,000

Cash 249,000 Consignor payable 280,000

Commission expenses 28,000 Consignor receivable 3,000
Delivery expenses 3,000 Commission revenue 28,000
Consignment sales 280,000 Cash 249,000

Case 2
1. Account sales
Sales (12 gas oven X 20,000) 240,000
Less: Delivery expenses 5,000
Shipping cost (consigned) 4,500
Commissions (240,000 x 5%) 12,000 21,500
218,500
2. Net profit
Sales 240,000
Less: Cost of Sales (240,000 + 4,500) X 12/20 149,700
Shipping Expenses 5,000
Commission Expenses 12,000 163,700
Net Profit 76,300

3. Adjusted balance of consignment - out account

(240,000 + 4,500) X 8/20 97,800

4. As expensed earlier, the shipping cost of the consigned goods from

the consignor to the consignee pertains to all the consigned goods
and therefore must be capitalized, preferably to cost of the consigned
goods, regardless of which party paid for it. Obviously, the shipment
cost on the sold units should be expensed immediately.

5. Journal Entries (Profits kept separate for each consignee)

CONSIGNOR CONSIGNEE
Consignment - out 240,000 Memo Entry
Inventory 240,000
No Entry Consignment-in 9,500
Cash
No entry Cash 240,000
Consignment-in
Cash 218,500
Consignment - out 21,500 Consignment-in 240,000
Consignment - out 240,000 Consignment-in
Commission rev.
Consignment-out 76,300 Cash
Consignment profit 76,300 No Entry

Reclassification entries for the consignment-out at year-end Reversing entry at the beg. Of the next period
Year-end Consignment-out
Cost of Sales 146,700 Inventory of consigned merch.
Shipping Exp. 5,000
Commission Exp. 12,000 No Entry
Consignment profit 76,300
Consignment sales 240,000
Inv. Of consigned merch. 97,800 No Entry
Consignment-out 97,800

AFAR 2507 - CONSIGNMENT SALES

CASE 3
1 JOURNAL ENTRIES
Consignment-out 2,490
Consignment profit 2,490
2. Balance of consignment-out
after adjustmenet (2,316+2,490) 4,806
Cost of inventory of unsold units
[(11,520+936+360) X30/80] 4,806

3. RECLASSIFICATION ENTRY
Cost of consignment sales 8,010
Commission expense-consignment sales 2,625
Consignment Profit 2,490
Consignment Sales 13,125

Other reclassification entry for the cost of the

ending consigned inventory for balance sheet purpose:
Inventory of consigned merchandise 4,806
Consignment-out 4,806
This entry has to be reversed to August 1, 2016 in preparation for
accounting of next month's consignment transactions.
*Computation of consignment profit
Sales 13,125
Cost of Sales (11,520+936+360) X50/80 (8,010)
Commission expenses (2,625)
Net profit 2,490

MULTIPLE CHOICE
1A 6C
2B 7C
3C 8D
4A 9A
5D 10 A

HOME OFFICE AND BRANCH

CASE 1
Requirement 1 Home Office Branch Books
Books
1. Branch P17,920 Cash P17,920
Cash P17,920 Home Office P17,920
2. Branch P38,400 Shipment from HO P38,400
Shipments-branch P38,400 Home Office P38,400
3. Fixed asset-branch P7,680 Home Office P7,680
Branch P7,680 Cash P7,680
4. No Entry Purchase P27,520
A/P P27,520
5. No Entry Cash P22,400
A/R P54,400
Sales P76,800
6. No Entry Cash P28,160
A/R P28,160
7. No Entry A/P P17,920
 Cash P17,920
8. No Entry Selling Expense P9,600
GA and Admin P7,680
Cash P17,280
9. Investment in Branch P1,280 Insurance Expense P1,280
Insurance Expense P1,280 Home Office P1,280
10. Depreciation Expense P640
-original entry
A.D. P640
Home Branch Approach
Branch P640 Dep. Expense P640
H.O. P640 H.O. P640
11. Cash P6,400
Branch P6,400

2. Adjusting Entries
Home Office Branch
Branch P12,800 -
Branch I/S P12,800

3. Closing Entries
- Sales P76,800
Merch. End 21,120
SH-HO 38,400
Purchases 27,520
SE 9,600
C+AE 7,480
Ins. Exp ,1280
De. Exp 640
Income Summary 12,800

Income Summary P12,800

Home Office P12,800

Case 2
2.1 Home Office Branch
1. Branch P36,000 Cash P36,000
Cash P36,000 HO
2. Branch P200,000
AFOVAL P40,000 Shipment-HO P200,000
Shipment-Branch P160,000 Home Office
3. - Purchases P120,000
A/P
4. - A/R P320,000
Sales
5. Branch P8,000 Advertising Expense P8,000
Advertising Expense P8,000 HO
6. No Entry Cash P180,000
A/R
7. No Entry OPEX P70,000
A/P
8. Cash P28,000 HO P28,000
Branch P28,000 Cash

Case 2
#1 P420,000
Cash (375,000)
Less FV of Assets P45,000
Goodwill

#2
Cash P50,000
A/R 30,000
Land 60,000
Buidlings 250,000
Equipment 150,000
Goodwill 45,000
A/R 55,000
BP 110,000

#3
Cash 50,000
A/R 30,000
Land 60,000
Buildings 250,000
Equipment 150,000
Goodwill 45,000
A/P 55,000
B/P 110,000
SC 120,000
SP 300,000
Expenses 10,000
SP 15,000
Cash 25,000
Total Assets= P1,800,000

Multiple Choice
1D
2D
3B
4A
5B
6A
7D

ADJUSTING ENTRIES Home Office Branch Office

2.3 P50,000
Branch P50,000 No Adjusting Entries
Branch Income Summary
AFDVOBI P24,000
BIS/RIA P24,000
Closing Entries 2.2
- Sales 320,000
MI.end 128,000
Shipment from HO 200,000
Purchase 120,000
Advert.Ex. 8,000
OPEX 70,000
Inc. Sum. 80,000

I/S (RBNI) 50,000

HO 50,000

Case 3
3.1 Home Office Branch
Cash 32,000 SH from HO 19,200
Branch 32,000 HO 19,200

3.2
a. HO 166,400
Branch 166,400
b. Deferred GO 5,120
Branch B/I 5,120

Deferred GP 26,880
SH to Branch 107,520
SH from HO 134,400

Branch EI(IS) 11,520

Branch EI (BS) 11,520

Closing Entries #4
Home Office Branch
BIS 71,680 Sales 409,600
IS (TBNI) 71,680 MI end 83,200
IS (RBNI) 51,200
Sales 1,228,000 MI, Beg. 89,600
MI, end 230,400 Purchases 153,400
SH-Branch 107,520 SH from HO 134,400
MI Beg. 294,400 OE 64,000
Purchase 1,024,000
OE 217,600
I/S (CNI) 102,400
RE 102,400
#5
Net Income:
HO 30,720
BO 51,200
Combined 102,400

Assets:
HO 1,729,280
BO 275,200
Combined 1,786,880

Liability/Equity 1,729,280
HO 275,200
BO 1,786,880

Case #4
Home Office Branch
Unadjusted Bal 240,000 235,040
1. Intransit - 8,000
2. Collection 3,200
3. Gen. Ex 16,000 16,000
4. Error 1,440
5. Error (1,600)
Adjusted Bal. 259,040 259,040

Case 5 HO BO
#1 Adjusted 291,000 291,000
a Remittance (254,000) (284,000)
b Instransit 752,000 681,000
c Ad. Expense 24,000
d A/R (46,080)
e Remittance 16,000
f Error 240,000 16,000
g Return (20,000) (20,000)
Unadjusted 730,920 684,200

#2
Unadjusted 730,920 684,200
a (30,400)
b 70,400
c 24,000
d (46,080)
e 16,000
f (16,000)
g - -
Adjusted 291,000 291,000

Case 6
1. Shipment in Transit -P30,000
2. Overstatement of Branch Cost of Sales
during P76200
3. Combined Net Income:
HONI 555,000
RBNI 81,000
Realized Allowance 76,200
Combined NI 712,200

Case 7
Branch A Branch B HO
HO 2,400 Cash 2,400 Branch 2,400
Cash 2,400 HO 2,400 Branch A 2,400

Case #8
Books of HO Books of Balgan
Balgan 16,000 SH fr HO 16,000
SH to Balgan 16,000 F-in 500
Cash 500
HO 16,000

Flores Br 16,320 HO 16,500 SH fr. HO 16,000

Exc freign 180 F-in 500 F-in 560
Balgan 16,500 Sh fr. HO 16,000 Cash
HO

SH to Balgan 16,000
Sh to Flores 16,000

Multiple Choice
1B 6D
2D 7D
3A 8D
4A 9B
5D 10 B

Business Combination
Case #1
1. Shares 137,500
Guarantee Pay 1,500
Cash 30,000
Payable 1 year 54,545
KIA Delivery Van 35,000
Total 258,545

2. FV Asset 645,000
FV Liab (400,000)
 Provision damages (12,500)
Net Assets 232,500

3. Consideration 258,545
Net Assets (232,500)
Goodwill 26,045
 Project 1 Project 2 Project 3

450,000 128,000 -
(40,000) 8,000 -
410,000 134,000 Due to Cust.
(Current Liability)
360,000 220,000

ccounts receivable (1,080,000-40,000) 90,000

Const. in Progress (450,000-40,000)

410,000
360,000 50,000

rogress Billings 220,000

onstruction in Progress (670,000 X 20%) 134,000 86,000
 9,500

240,000

9,500
12,000
218,500

at the beg. Of the next period to restore the consignment-out account

97,800
onsigned merch. 97,800
 -should be entry

P36,000

P200,000

P120,000

P320,000

P8,000

P180,000
P70,000

P28,000
 240
16,320
FAR 2501 DIY DRILL
1A 11 D 21 D 31 D 1D
2D 12 D 22 A 32 D 2C
3A 13 D 23 D 33 D 3A
4D 14 A 24 A 34 D 4A
5D 15 B 25 A 35 D 5A
6B 16 B 26 D 36 D 6A
7D 17 D 27 D 37 B 7D
8D 18 B 28 D 38 D 8D
9A 19 C 29 A 39 D 9B
10 D 20 D 30 B 40 D 10 C

FAR 2502 DIY DRILL

1A 11 B 21 D 31 C 1D 11 B
2A 12 B 22 A 32 C 2C 12 C
3D 13 B 23 D 33 B 3C 13 D
4A 14 B 24 A 34 C 4C 14 D
5D 15 D 25 A 35 A 5A 15 A
6D 16 A 26 D 36 D 6B
7D 17 C 27 B 37 D 7A
8D 18 B 28 B 8C
9D 19 D 29 D 9B
10 D 20 A 30 C 10 C

FAR 2503 DIY DRILL

1C 11 B 1C
2D 12 A 2D
3D 13 C 3A
4D 14 A 4C
5D 15 D
6B 16 B
7C 17 A
8C 18 B
9D
10 D

FAR 2504 DIY DRILL

1A 11 A 21 A 31 B 41 C 1D 11 D
2A 12 D 22 D 32 A 42 D 2D 12 D
3C 13 D 23 A 33 C 3B 13 C
4A 14 B 24 D 34 D 4B 14 D
5D 15 D 25 A 35 C 5D
6D 16 C 26 A 36 B 6B
7D 17 C 27 D 37 A 7B
8D 18 D 28 B 38 C 8B
9D 19 D 29 A 39 D 9A
10 D 20 D 30 D 40 C 10 B
FAR 2505 DIY DRILL
1D 11 C 21 C 1D 11 D
2A 12 B 22 D 2C 12 B
3D 13 B 23 D 3D 13 A
4D 14 D 24 C 4B 14 B
5D 15 B 25 C 5D
6C 16 A 26 B 6C
7C 17 C 27 C 7A
8D 18 D 28 A 8B
9A 19 B 29 B 9B
10 C 20 D 30 D 10 B

FAR 2506 DIY DRILL

1A 11 C 21 A 1A
2A 12 A 22 C 2B
3D 13 C 23 D 3B
4C 14 B 24 A 4A
5A 15 B 25 B 5D
6A 16 D 26 D 6D
7D 17 D 27 D 7B
8A 18 B 28 D 8B
9C 19 D 29 D 9C
10 A 20 D 30 D 10 C

FAR 2507 DIY DRILL

1C 11 C 1D
2D 12 D 2B
3B 13 C 3C
4C 14 C 4B
5C 15 B 5D
6D 16 D 6B
7C 17 D 7A
8A 18 D 8B
9A
10 D

FAR 2508 DIY DRILL

1B 11 C 21 C 1A
2D 12 D 22 D 2A
3C 13 A 23 D 3D
4D 14 B 24 D 4D
5C 15 D 25 D 5C
6C 16 A 26 B 6B
7A 17 D 27 D 7B
8A 18 C 28 D 8C
9C 19 A 9D
10 A 20 A 10 D
11 A
FAR 2509 DIY DRILL
1A 11 B 21 C 31 D 41 B 1A 11 D
2D 12 D 22 C 32 D 42 A 2D 12 B
3C 13 D 23 D 33 C 43 A 3D 13 C
4C 14 D 24 A 34 A 44 B 4D 14 D
5A 15 D 25 A 35 A 45 C 5C
6D 16 D 26 B 36 A 46 A 6D
7A 17 A 27 A 37 A 47 D 7D
8D 18 C 28 D 38 B 48 C 8C
9B 19 B 29 B 39 A 9B
10 A 20 D 30 C 40 D 10 C

FAR 2510 DIY DRILL

1B 11 D 21 D 1D
2D 12 D 22 D 2D
3D 13 C 23 D 3D
4C 14 D 24 B 4C
5A 15 D 25 A 5B
6B 16 D 26 C 6B
7D 17 B 27 D 7C
8B 18 B 28 D 8C
9C 19 D 29 B 9A
10 D 20 C 10 D

FAR 2511 DIY DRILL

1D 11 D 21 B 31 C 1C
2D 12 A 22 D 32 D 2D
3D 13 A 23 C 33 C 3D
4D 14 D 24 A 34 A 4B
5D 15 D 25 C 35 C 5C
6D 16 D 26 D 36 D 6B
7D 17 C 27 A 7B
8D 18 C 28 D 8B
9D 19 C 29 C 9B
10 D 20 B 30 C 10 D

FAR 2512 DIY DRILL

1A 11 A 21 A 1D
2C 12 A 22 D 2D
3A 13 B 23 C 3B
4C 14 A 24 D 4B
5D 15 C 5A
6B 16 D 6B
7D 17 C 7C
8D 18 D 8A
9D 19 A
10 C 20 A
FAR 2513 DIY DRILL
1C 11 B 21 D 1D
2D 12 B 22 A 2D
3D 13 D 23 D 3D
4C 14 C 24 B 4D
5D 15 B 25 A 5B
6B 16 C 26 D 6B
7A 17 C 7D
8B 18 D 8B
9B 19 D
10 B 20 D

FAR 2514 DIY DRILL

1D 11 D 1D
2A 12 A 2D
3D 13 B 3A
4A 14 A 4B
5A 15 D 5D
6D 16 D 6A
7B 17 B 7B
8D 8C
9C
10 B

CASH AND CASH EQUIVALENT (2515) DIY DRILL FAR-BANK RECON(2516) DIY DRILL
1A 11 A 21 B 1D 1D 11 D 1B
2A 12 D 22 A 2B 2B 12 C 2A
3A 13 C 23 D 3C 3D 13 A 3B
4A 14 D 24 C 4B 4A 14 A 4D
5C 15 A 25 A 5D 5D 15 B 5C
6D 16 D 26 D 6B 6C 6A
7D 17 B 27 C 7D 7D
8D 18 D 28 C 8C
9D 19 D 29 - 9C
10 A 20 D 10 D

FAR 2417 Trade and Other Receivables

Discussion Problems DIY DRILL
1D 11 D 21 A 31 C 1A
2B 12 D 22 C 32 B 2B
3D 13 A 23 D 33 D 3A
4A 14 C 24 D 34 B 4D
5D 15 C 25 D 35 D 5D
6C 16 D 26 A 6A
7D 17 A 27 C 7D
8A 18 D 28 A
9D 19 D 29 A
 10 C 20 C 30 B

FAR 2518 Loans and Receivables - Long-term

Discussion Problems DIY DRILL
1D 11 D 21 C 31 B 1D
2B 12 A 22 D 32 B 2C
3D 13 C 23 A 33 B 3A
4B 14 D 24 D 34 C 4C
5C 15 A 25 C 35 A 5D
6B 16 D 26 D 36 C 6A
7D 17 B 27 A 37 D 7D
8B 18 D 28 D 38 B 8C
9C 19 D 29 B 39 D 9B
10 A 20 D 30 A 10 A

FAR 2519 - Generating Cash from Receivables

Discussion Problems DIY DRILL
1A 11 D 21 C 1D
2C 12 C 22 A 2C
3C 13 D 23 C 3A
4D 14 C 4C
5A 15 D 5B
6D 16 C 6A
7D 17 A 7C
8D 18 B 8B
9C 19 C 9C
10 A 20 B 10 A

FAR 2520 - INVESTMENTS IN DEBT INSTRUMENTS

Discussion Problems DIY DRILL
1C 11 C 21 A 1C 11 B
2D 12 B 22 B 2D 12 A
3C 13 A 23 B 3D
4C 14 D 24 D 4C
5C 15 C 25 C 5A
6D 16 A 26 A 6B
7C 17 D 27 D 7C
8A 18 C 28 A 8B
9C 19 D 29 A 9B
10 D 20 A 10 A

FAR 2521 INVESTMENTS IN EQUITY INSTRUMENTS-FINANCIAL ASSETS AT FV

Discussion Problems DIY DRILL
1A 11 C 21 D 1C
2A 12 B 22 D 2A
3B 13 D 23 D 3B
4C 14 A 24 A 4B
5D 15 A 25 A 5B
 6D 16 D 26 C 6A
7D 17 B 7C
8D 18 D 8C
9C 19 A 9C
10 A 20 D 10 A

FAR 2522 DIY DRILL

1A 11 B 21 A 31 B 1A
2D 12 D 22 C 32 D 2D
3A 13 B 23 D 33 C 3A
4D 14 A 24 C 34 C 4C
5B 15 B 25 C 35 D 5C
6D 16 D 26 C 36 D 6A
7C 17 C 27 D 37 D 7C
8D 18 A 28 B 38 A 8D
9D 19 C 29 D 9B
10 D 20 B 30 D 10 D

FAR 2523 DIY DRILL

1A 11 A 21 A 1A
2D 12 B 2A
3A 13 B 3C
4D 14 A 4B
5D 15 D 5A
6B 16 D 6A
7A 17 D 7A
8B 18 D 8B
9D 19 A 9D
10 C 20 B 10 B

FAR 2524 DIY DRILL

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

FAR.2525
1 D 11 B 21 D 31 A 41 C 51 A 61 D 71 A
2 C 12 D 22 B 32 A 42 D 52 D 62 C 72 D
3 D 13 D 23 A 33 D 43 A 53 D 63 D 73 D
4 D 14 A 24 A 34 D 44 C 54 D 64 D 74 D
5 D 15 C 25 D 35 D 45 D 55 A 65 A 75 A
 6 D 16 D 26 C 36 C 46 A 56 C 66 D 76 D
7 A 17 D 27 A 37 C 47 D 57 B 67 A 77 D
8 D 18 C 28 D 38 C 48 C 58 D 68 A 78 D
9 D 19 D 29 D 39 D 49 B 59 D 69 D 79 D
10 A 20 D 30 A 40 D 50 D 60 C 70 D 80 D

FAR.2526 DIY DRILL

1 D 11 C 1 C
2 C 12 D 2 D
3 D 13 C 3 A
4 C 14 D 4 D
5 D 15 D 5 B
6 A 16 D
7 D
8 C
9 C
10 A

FAR.2527 DIY DRILL

1 A 11 A 21 D 1 C
2 D 12 B 2 C
3 A 13 C 3 B
4 D 14 D 4 A
5 B 15 C 5 D
6 B 16 C
7 C 17 D
8 C 18 C
9 B 19 B
10 D 20 D

FAR.2528 DIY DRILL

1 A 11 D 1 C
2 C 12 B 2 D
3 C 13 C 3 D
4 D 14 B 4 A
5 D 15 C 5 D
6 A 16 C 6 A
7 B 17 B 7 C
8 D 18 B 8 B
9 D 9 B
10 C 10 B

FAR.2529 DIY DRILL

1 D 11 C 21 D 1 B 11 D
2 D 12 C 22 D 2 A 12 D
3 D 13 D 23 A 3 B
4 D 14 D 4 B
5 D 15 C 5 D
 6 C 16 D 6 A
7 C 17 D 7 C
8 D 18 D 8 D
9 A 19 B 9 A
10 C 20 D 10 A

FAR.2530 DIY DRILL

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

FAR.2531
1 A 11 C
2 D 12 C
3 D
4 D
5 D
6 C
7 C
8 C
9 C
10 C

FAR.2535 2535 DIY DRILL FAR.2536 2536 DIY DRILL FAR.2537

straight problems 1C 1A 11 B 1A 1D
1 1,400,000 2D 2D 12 D 2D 2A
2 4,960,000 3C 3B 13 D 3C 3A
3 544,000 4C 4A 14 C 4C 4A
4 6,640,000 5C 5D 15 D 5B 5C
5 3,680,000 6C 6B 16 A 6A 6C
7D 7D 17 D 7C 7C
8A 8A 18 D 8A
9B 9A
10 C 10 C

FAR.2538 2538 DIY DRILL FAR.2539 2539 DIY DRILL

1D 11 B 21 D 1C 1A 11 B 21 C 1
2D 12 D 22 A 2D 2A 12 A 22 C 2
3A 13 C 23 A 3B 3A 13 D 23 C 3
4D 14 D 24 A 4B 4A 14 A 24 A 4
5C 15 A 5A 5D 15 D 25 B 5
 6D 16 D 6A 6A 16 D 26 A 6
7B 17 B 7C 7C 17 B 7
8A 18 B 8A 8D 18 A 8
9B 19 B 9A 9B 19 B 9
10 B 20 B 10 C 10 D 20 C 10
11

FAR.2540 2540 DIY DRILL

1D 11 C 21 C 31 D 41 D 51 D 61 D 1D
2D 12 D 22 A 32 C 42 C 52 D 62 A 2D
3A 13 C 23 D 33 A 43 C 53 D 63 B 3D
4C 14 D 24 D 34 C 44 D 54 D 4A
5D 15 D 25 D 35 C 45 D 55 D 5A
6D 16 B 26 B 36 B 46 A 56 C 6D
7A 17 A 27 C 37 D 47 B 57 A 7A
8A 18 C 28 D 38 C 48 D 58 A 8C
9B 19 D 29 D 39 A 49 D 59 B 9C
10 D 20 D 30 A 40 C 50 A 60 D 10 D
 DIY DRILL
81 D 1 B 11 B
82 D 2 C 12 A
83 A 3 A 13 D
84 D 4 A 14 C
85 A 5 D 15 D
 6 C
7 C
8 D
9 B
10 C
 2537 DIY DRILL
1D
2B
3C
4C
5C
6B

2539 DIY DRILL

D
B
D
B
B
 D
A
A
A
A
C

2540 DIY DRILL

11 B
12 D
13 D
14 D
15 D
Problem 1
1C 11 A
2D 12 C
3D 13 A
4A 14 B
5A 15 A
6A
7C
8D
9C
10 B

Problem 2 Problem 3
1C 1D
2A 2A
3B 3B
4B 4A
5D 5D
6C

July 8, 2018 -AP-2501

Problem No. 4 Problem No. 5
1A 1A
2A 2A
3C 3B
4C 4D
5C 5A
6A 6D
7D 7D

DIY Drill
1B 6B 11 C
2B 7D 12 C
3A 8C 13 B
4A 9A 14 A
5C 10 B 15 B

AP-2502
Prob.#1
#1 LAND
Before After
1. Option Fees P1,000 P1,000
2. Loan - -
3. Settlement 100,000 100,000
4. Arrears 50,000 50,000
5. Land 1,000,000 1,000,000
6. Demolition 120,000 -
7. Sale Proceeds (55,000) -
P1,216,000 P1,151,000

#2 LAND IMPROVEMENTS
12. External Driveways etc. P540,000
19. New fence 50,000
Total P620,000

#3 BUILDING
Before After
8. Architect fee P230,000 P230,000
9. Approval 120,000 120,000
10. Safety fence 34,000 34,000
11. Building Cons. 2,400,000 2,400,000
13. Inspection 30,000 30,000
14. Safety fence Removal 20,000 20,000
7. Demolition 120,000
8. Sales Proceeds (55.000)
Total P2,384,000 2,899,000

#4 EQUIPMENT
14. Payment P640,000
15. Freight and insurance 56,000
16. Installation cost 120,000
17. Safety equipment 110,000
22. Equipment Adjustment 33,000
Total P959,000

Problem No. 2 Problem No. 3 Problem No. 4 Problem No. 5 Problem No. 6
1C 6D 1A 6A 1D 1B 1
2C 7D 2A 7D 2B 2B 2
3C 8A 3B 8A 3D 3A 3
4B 9D 4C 9A 4A 4C 4
5A 10 D 5A 5C 5D 5

DIY DRILL
Problem No. 1 Problem No. 2 Problem No. 3
1B 6B 11 C
2B 7D 12 A
3D 8B 13 A
4D 9A 14 D
5B 10 C 15 B

AP-2503
Problem No. 1
1. Adjusting Journal Entries
Dec. 1 Organization Expense P233,000
Intangible Assets P233,000
 Advertising Cost 15,000
Intangible Assets 15,000
Patent 490,000
Intangible Assets 490,000
License 200,000
Trademark 100,000
Intangible Assets 300,000
Building 1,310,000
Intangible Assets 1,310,000
Research and Dev't 1,750,000
Intangible Assets 1,750,000

2. Carrying Amount of Intangible Assets

Patent P490,000
License 200,000
Trademark 100,000
Total Cost P790,000
Amortization (790,000 / 5) (158,000)
Carrying Amount 12/31/18 P632,000

3. Expenses
1/2 Organization Expense P233,000
1/15 Advertising Expense 15,000
12/31 R&D Expense 1,750,000
Total Expenses P1,998,000

4. A
5. A

Problem No. 2 Problem No. 3 Problem No. 4

1A 1C 1B
2C 2B 2A
3B 3C 3C
4A 4C 4D
5C 5A 5C

DIY DRILL
Problem No. 1 Problem No. 2
1A 6D
2B 7A
3C 8A
4A 9A
5B 10 C

AP 2504-AUDIT OF CASH AND CASH EQUIVALENTS

Problem No. 1
1A
 2A
3A
4A
5A
6B

Problem No. 2
1. Cash and Cash Items
Bills and Coins P7,528
Checks 85,960
Unreplenished Vouchers 19,140 112,628

Cash accountability P20,000

Petty cash fund 85,960
Collections per OR 85,960
Collection without OR 85,960
Excess travel advance 85,960
Unclaimed salaries 85,960
Cash shortage 19,140 152,960
(P40,332)

2. Bills and coins 7,528

Checks 85,960
Shortage 40,332
Total expected cash 133,820
Less:
Collections with OR (86,600)
Collections without OR (28,000)
Unclaimed salaries (15,000)
Adjusted PCF 4,220
Imprest balance 20,000
Required credit
adjustmenet to PCF 15,780

Adjusting journal entries

a. Unreplenished petty cash vouchers
Advances to O&E 14,000
Postage expense 3,240
Transportation expense 300
Repairs and maintenance 1,600
Petty cash fund P19,140

b. Unused postage
Unused postage P730
Postage Expense P730

c. Liquidation of cash advance

Travel expense P10,160
 Petty cash fund 3,360
Advance to O&E P13,520

d. Collection without OR
Cash P28,000
Accounts receivable P28,000

e. Unclaimed salaries
Cash P15,000
Salaries payable P15,000

f. Shortage P40,332
Receivable from custodian P40,332
Cash
3C
4C
5B

Problem No. 3
1B 6A
2D 7D
3B 8A
4C 9C
5A 10 B

Problem No. 4
1A
2D
3C
4B
5A

Problem No. 5
1. BANK
November 30 Receipts Disbursements December 31
Unadjusted bal P230,000 P420,000 P500,000 P150,000
DIT -11/30 200,000 (200,000)
-12/31 120,000 120,000
OC -11/30 (80,000) (80,000)
-12/31 60,000 (60,000)
Error, Dr. -11/30 10,000 (10,000)
-12/31 (20,000) 20,000
Error, Cr. -11/30 (40,000) (40,000)
-12/31 (30,000) (36,000)
NSF check redeposited (10,000) (10,000)
Adjusted bal. P320,000 P290,000 P410,000 P200,000

Problem No. 6 DIY DRILL

 1A 1C 6C 11 C
2C 2C 7C 12 A
3D 3B 8B 13 D
4A 4D 9D 14 A
5A 5D 10 B 15 B
6C

BOOKS November 30 Receipts Disbursements December 31

Unadjusted bal. P227,000 P270,000 P407,000 P90,000
Note collected -11/30 100,000 (100,000)
-12/31 120,000 120,000
BSC -11/30 (2,000) (2,000)
-12/31 3,000 (3,000)
NSF Check -11/30 (5,000) (5,000)
-12/31 7,000 (7,000)
NSF check redeposited
Adjusted bal. P320,000 P290,000 P410,000 P200,000

AP 2505-AUDIT OF RECEIVABLES
Problem No. 1
1A
2D
3C
4A
5C

Problem No. 2
1. Adjusting entries
Advances to O&E P16,400
Accounts receivable P16,400

Accounts receivable 15,000

Allowance for D/A 15,000

Allowance for D/A 21,000

Accounts Receivable 21,000

Sales return 12,000

Accounts receivable 12,000

Sales 18,000
Accounts receivable 18,000

Freight-out 1,500
Accounts receivable 1,500

2. Beg. Bal (unadjusted) P442,500 3B

AJE 1 (14,400) 4A
 AJE 2 15,000 5D
AJE 3 (21,000) 6D
AJE 4 (12,000)
AJE 5 (1,200)
AJE 6 (18,000)
AJE 7 (1,500)
Adj. Bal. (2/31/18) P387,400

Problem No. 3
1C
2A
3D
4A
5D

Problem No. 4
2016 2017 2018 Total
Sales-Cash 68,000 P104,000 P124,800 P296,800
Sales-Credit 666,400 721,600 948,000 2,336,000
Total P734,000 P825,600 P1,072,800 P2,632,800
Less: COS 587,520 660,480 858,240 2,106,240
Gross Profit P146,880 P165,120 P214,560 P526,560

Problem No. 5 Problem No. 6 DIY DRILL

1C 1A 1B 6D 11 A
2C 2C 2D 7A 12 C
3C 3A 3C 8B 13 B
4C 4D 4A 9C 14 C
5A 5B 5B 10 D 15 C

AP 2506-AUDIT OF INVESTMENTS
Problem No. 1 DIY DRILL
1A 6A 1A 6A 11 A
2A 7D 2B 7D 12 D
3C 8C 3D 8A 13 A
4C 9A 4C 9B 14 B
5D 10 B 5A 10 C 15 C
Problem No. 6
A
D
D
A
C
2. Adjusting Entries
a. Deposit in Transit
Cash in Bank P120,000
Notes receivable P120,000

b. Bank service charge

Bank service charge P3,000
Cash P3,000

c. NSF Check
A/R P7,000
Cash in bank P7,000
ecember 31