1 ACCOUNTEAM Exercises 1 3 PDF

 

Exercise 1-1

Exercise 1-2

Exercise 1-3

Exercise 1-4

1. Relevance

1. Recognition

1. True

1. True

2. Material

2. Measurement

2. True

2. True

3. Faithful Representation

3. Historical Cost

3. False

3. True

4. Neutral

4. Current Cost

4. False

4. False

5 - 6. Comparability

5. Fair Value

5. True

5. True

7. Consistency

6. General-Purpose Financial Statements

6. True

6. False

8. Verifiability

7. International Financial Reposting Standards (IFRS)

7. True

7. True

9. Timeliness

8. Notes to Financial Statement

8. True

8. True

10. Understandability

9. Other Comprehensive Income

9. False

9. True

11. Going Concern

10. Profit or Loss

10. True

10. True

12. Assets

11. Total Comprehensive Income

13. Liability

12. Statement of Financial Position

14. Equity

13. Income Statement

15. Income

14. Statement of Changes in Equity

16. Expenses

15. Statement of Cash Flows

 

Exercise 2-1 Currencies and coins awaiting deposit

Exercise 2-6 Php45,000 David Company's checkbook balance

Php1,200,000

Checking account balance

185,000 Undelivered check

300,000

Undeposit receipts

125,000 Redeposited check

50,000

Savings account balance Total Cash and Cash Equivalent

250,000 Postdated check

Exercise 2-2 Cashier's check Bank Draft Traveler's check Undeposited check Money order Petty cash fund Checking account - Unibank Savings account - Unibank Total Cash and Cash Equivalent

(150,000)

Php605,000 Cash Balance

Php1,400,000

Exercise 2-7 Php46,000.00 Cash on Hand

Php560,000

40,000 Cash in Bank

490,000

40,000 Petty cash

5,500 Php1,055,500

120,000 Cash Balance 50,000 4,000 Exercise 2-8 450,000 Ch C hecking account - BPI

Php1,200,000

325,000 Sa Savings account - BPI

1,500,000

Php1,075,000 Cash on hand

10,000

Current Cash

Php2,710,000

Exercise 2-3 Cash in checking account per bank statement Treasury bill Total Cash and Cash Equivalent

Php74,000 Exercise 2-9 600,000 Checking Balance

Php1,750,000

Php674,000 Post dated Check

(70,000)

Check payable to a supplier Exercise 2-4 Total Cash and Cash Equivalent Two 180-day certificates of deposit  A check dated January January 6,2020

300,000 Php1,980,000

Cash Balance Php5,465,000 (650,000) Exercise 2-10 (225,000)

Pustovoytov Co.

Cash accumulated in special fund for plant expansion

(1,200,000)

Bank Reconciliation Statement

Commercial paper

(1,000,000)

June 30

Unreplenished Voucher Cash Balance Current Cash and Cash Equivalent Exercise 2-5 Cash Balance Notes Receivable

(2,500) (450,000) Unadjusted Balance Php1,937,500 Bank service charge

48,000 1,440

Php900,000 Bank service charge

(220)

(150,000) Deposit in Transit (45,000) Outstanding checks (60,000) Cu C ustomer's uncollectible check

Mandela's check

(1,000)

Interest receivable

NSF Customers' check

New Cash Balance

Per Banks Php166,100

Note receivable

Customers' check Petty cash vouchers for transporation expense

Per Books Php158,794

(2,500) Error in recording cash receipts

135,600 (85,442) (10,128) 1,200

145,000 Error in recording check

(2,880)

Php787,500 Error in recording check

21,052 Php216, 25 258

Php216,258

 

Exercise 3-1

Exercise 3-4 Age

Current

B Ba alance

%Uncollectible

Allowance

Php3,500,000

0 .5

Php17,500

1 to 30 days past due

2,000,000

2

40,000

31 to 60 days past due

1,200,000

5

60,000

61 to 90 days past due

1,000,000

8

80,000

91 to 120 days past due

800,000

15

120,000

121 to 180 days past due

400,000

30

120,000

Exercise 3-6

Present value of principal Present value of interest T ot ot a all p re res s en en t v al al u ue e

Php6,809,122.27

2018

4,325,731.44

Accounts Receivable Turnover

Php Php 11 11 ,1 ,1 34 34 ,,8 85 53 3 ..7 71

22500000 (1300000+1200000)/2

18 times

A ve ve ra ra g ge e Co oll lle ec ttii o on n Pe err io iod

2 0d a ay ys

Amortization table Date

Interest

Cash receipt

Amortization

January 1, 2019

CV Php11,134,853.71

181 to 360 days past due

200,000

50

100,000

December 31, 2019

1,336,182.45

1,200,000.00

136,182.45

11,271,036.16

2019

More than 360 days past due

100,000

100

100,000

December 31, 2020

1,352,524.34

1,200,000.00

152,524.34

11,423,560.49

Accounts Receivable Turnover

Php637,500

December 3 31 1, 20 2021

1,370,827.26

1,200,000.00

170,827.26

11,594,387.75

21,600,000

December 31, 2022

1,391,326.53

1,200,000.00

191,326.53

11,785,714.28

(1700000+1300000)/2

December 31, 2023

1,414,285.71

1,200,000.00

214,285.71

12,000,000.00

Dobutful account Balance  ALLOWANCE FOR BAD DEBTS Php80,000

A ve ve ra ra g ge e Co oll lle ec ttii o on n Pe err io iod

557,500 Doubtful Accounts Expense Php637,500

 Account Receivable  Allowance for Doubtful acct. Net Reliazable Value

Interest Income 1,336,182.45

2020

1,352,524.34

Php9,200,000

2021

1,370,827.26

(637,500)

2022

1,391,326.53

Php8,562,500

2023

1,414,285.71

Present value of principal

704,960.54

Exercise 3-2 0 - 3 0 d a ys

2019

₱6,865,146.29

Exercise 3-5 Php5,000,000

3%

Php150,000

31- 60 days

3,500,000

8%

280,000

Present value of interest

61- 90 days

1,000,000

18%

180,000

Total present value

91-180 days

500,000

50%

250,000

Over 180 days

100,000

79%

79,000 Php939,000

Php10,100,000

344,212.70 ₱1,049,173.24

Amortization table Date

Interest

Cash receipt

Amortization

January 1, 2019 Doubful accounts expense

Php175,000

June 30, 2019

62,950.39

70,000.00

(7,049.61)

₱1,042,123.63

764,000

December 31, 2019

62,527.42

70,000.00

(7,472.58)

₱1,034,651.05

Php939,000 Net Realizable Value

Php9,161,000

June 30, 2020

62,079.06

70,000.00

(7,920.94)

₱1,026,730.12

December 31, 2020

61,603.81

70,000.00

(8,396.19)

₱1,018,333.92

June 30, 2021

61,100.04

70,000.00

(8,899.96)

₱1,009,433.96

December 31, 2021

60,566.04

70,000.00

(9,433.96)

₱1,000,000.00

Exercise 3-3  Accounts Receivable wance for Doubtful Accou Cash Receipts Beginning Balance

Php1,000,000

Php40,000

(a) Cash sales (a) Credit sales (b) Coll ection with Discount (b) Coll ection without Discount (c) Sales returns (d) Accounts written off

2

10,800,000

Net Realizable Value 4 Doubtful Accounts Expense

62,527.42

June 30, 2020

62,079.06

(836,000)

819,280

December 31, 2020

61,603.81

7,524,000

June 30, 2021

61,100.04

December 31, 2021

60,566.04 ₱370,826.76

(400,000) (40,000)

(40,000) 3,000

Php3,000,000

-

Php9,546,280

1,800,000

2%

Php36,000

600,000

20%

120,000

360,000

40%

144,000

150,000

60%

90,000

90,000

100%

90,000 Php480,000

 Accounts Receivable

62,950.39

December 31, 2019

(7,524,000)

3  Allowance for Doubtful Accounts Accounts

Interest Income June 30, 2019

Php1,200,000

(d) Accounts Recovered Ending Balances

CV ₱1,049,173.24

Php3,000,000 (480,000) Php2,520,000 Php480,000

14.4 times 2 5d a ay ys