CPAR_P2 07.28.13

PRACTICAL ACCOUNTING PROBLEI""iS First Pre-hoald Exalnittation

problem

Sunday. July 28. 20 I 3 3:00 p.m to 5:00 P.nr

It

l.Ol October r.20l '. PPC \.'onipanv soltJ Article C)ne ct-rsting P270.000 for P400'000 Article years

ibr two Two, a used article was ae(;i:Dle,.j as down pu,o.,ir.nt aitd tlte balattce on monthly' instalments was allowed P 120,000 2013. l' 3 thar irrclgde both principal ari.l interesi at lSilo per,vear, starting October orrrlrearlicletraded-in, firecornparryestimatesretonditionin[costofPS,000ontlrisarticleandasales gross profit on sale of price of Pl i0,000 after sr.rt:ii r^eronditloning' Tlre company,ormally expects 20% usedarticles. Howrnui,irlstlier-ealrzedgrossprofitiriZOl:f(RoLrndoffpresentvalrrefactorsto3 decirnal places)

A.

i7"00i

Il. -18..16.1 a.

28.750

D.28.486

probleur ?.T5e rcr,.tyrts rlf tlre parruersliip r.rf'E,i'uiit. iialph arl'l Mcrir at the etld SepternLrer i0. 201-i ri'e as tbllorvs:

liii.000 i.0c0

()ther assets Loan to Raiph l"iahrlities

lf Mon receiveri

Loatt fi"o'nr Mon Erwil1. capitai (30%)

:.000

pI

Cash

ol its fiscal )ear ol.) Pl0'000 45.000

Ralph, capitut (50%) lvloa. capital (20%)

5u.000

30"000 15.000

initial sale of P9.000 on tlie first clistribution of cash. tlie cash realizecl ft-om the

assets was

A. 80.000

c.

B. 65.000

D. 15.000

95.000

December 3l' 2013' Froblem 3 apcl 4.psalrn is currently preparirrg its conrtrinecl fitrancial statenlents. On for P12,000 on December ihe houre ofllce accouni sl,{x,,';r balance of'{+s:,:OO. T'he branoh sent a check Psalm shipped Ftrrtherrnore' 4.2C14 3l ,:013.'lhe home ofl'ict di,J rtot receive tlie check urrtil ,lanuarlt P25'000''Ihe of price nrerc6andise costiug Pl0"00C to the branch ot.. l)ecenrber 28. l0ll at a transfer trf P8'500 expenses b' the brailcl-' i.ttltil iallititr'l lt.20l4' Lastly' adr"ertisirig merchandise was rrot lc:eiii:ci were allocated by. I?sallr i,r tire lrrarrch. Tlris rvas rectlrded a:: P5.800 by the brrarrclt'

j.

Hor.. rl;uch is the ad.iusted bala:,tle

A. P480.00;.

4.

Hc.', intt':I

rs

B.

cl the reciplt)t)al

1492.0(10

accotlnts'l'

c'

D. P4"71.399

P500.000

the ulad-ilisled balatlce of tlie branclt accoutrt'?

A. P-i1{0.000

Problem 5.Cerry |r,;rrpatl)' adds ttr:ter:'iaI is avaiiable lbr Jun,.::

(45% corlplete

as

"i. a.t

Pr'q2.C00 rhe,;1a:-i

of

C'

pr.oclrrctir--.r,,

!qqgryqMglU

D.

P5u0.U''r0

P411 .399

The follow'ing production infbrmatiott

110.000 units

units

_ __(80% 99ryp!9ii i;1o ,q!19tr19'il

I

Current Period C'osts: _MateLia Con t,e r!,

'a

it

V/hat is thl eost,';,"r ll lttrits iratt:;1i:rreii lLtt ttsittg the l'ti:O rnethcd'l

A.

P2Q r 0-l

+

B. P 191.289 c.

[']287.004D.P298.029

problem 6 par-rl arjr-i,iis Claire as a partner irr business. iust beli:re books shurred thc foilowing: Cash

th* t:afitlersliip's iormation.

2.60ij

Accounts receiv'able

i:"00i)

Merchatrd i se i ttvetrtcln Acccxrltts payahle PaLrl. capital

Iti.t,0(l 6.200 26.40(i

Paul's

shall It was agreed that. tbr establishing Paul's irrvestrrent in the tlrrn. the tollovrilrg adjustnrents

be

reflectrd:

o o o

Ailo*arrce tbr bad debts of 2o'i,

shourlci be set up'

Merchanclise inventory should be valued at P20.200'

of P350 and accrued expelrse of"P400 shorrld be rect-r5tltized'

lrr.epaid e\pense

Hclvr nruch cash should Claire iuvest U.

tr"r

9.{37

A l-i.155

SCCuli'A f)tli:-lhir,1 iilt*t"ir,.f irl

'".{i00 '1.

Problern 7.-t he tbllcw ing co*tts were aciluntulated

-

i- IL-___ It..r--Beirirtuirtur lrrr I Current

e

Pelir.-'d

L ___

ttttlrr r

__-I

Cost

i i

cnttr*,ltt'e;red tirn, "-"'"-r- Deot. ..-I

l,, i 7.()5{

I

I

i__

!

lrr Depaf'tent

j._ ]

-i

tl,'; pafiitership?

ii' ll'105

2 r:t Rodel ComPanY durirrg

l,rat"riul--

-t--c;i',er"*_ T-

Ctrsts ] --- I

-

C,tsts

ir i..150

]__

84.00(

I

I

April:

T"t^l

_---l

l

_,P_?l-._5t'q ]

rr2.@q

.___l;91,01(

Productiorr tbr A.pril iu Departurent 2 (in urtiis):

WIP-April

1.000

I

I rarrsli.rr':cl

OLrt dLir';nll

;\pril

60920

cornplete

10.000

5,000

WIP-Aprrl .i0

Matenals ale riot add','d irr Dr:;;artiletrt 2 until the r

le:r

409/o conrplete etrrJ crf pi-acessiltg

Hou much is the sosl irt'r*'orl; itt prrti:es:'-rtt,.i') 1'] l'-iJ.ti00 A. P I 0.000

Departinellt

2

D. P50.160

c. P4iJ.l l0

ProblemsSandg.ThepafinershipofJoriteand.larrnesbegattbr-rsitresso!1 Janttarl'1.2013' Thefollowing this assetii were contributeri 'oy eaclr partner (the nttn casi'r asselr are stated at their fhir rilarket Values on date). ,la\ ntri! P 10"00u

Jtxgc P l0.Lr00 .i0.000

('aslt Itrr crttories Laud

: 0(i.(rc0 r00-000

Eqri ipnrcnt

J'he larrcl ua.s srib.iect io a P65.000 nlorlgtrge. r,rhich th€ pafillerslrip as:'itt-'red on the sante date' The equipnrerit *ur r,,i,.1..r to sn in:;tairrent note-'payahle'tlrat iracl art trrtpaid princiPa! anlount of P35'000 on JanJa.l L l0l3. l-hE p..lrtnersl:ip also assurned this,lot. lrul'rtl.. Accordirlg to ilre partnership agreement. each panner \vas to har.,e a 50 percent cirpital int,rrest r,'tt January 1.2013" with total parlnership capitai breing P300.000. Jorse arrd Jal,nies agreed to sirtre pa(rrei'sllip itrcotne and losses in the fbllou irrg rnanrrer: .lr--.rg,e

Inieresl rlr bcginrring halauces Salaiies Renra i nder

Durirtg

e c I r r r

o r

Jaytnes 10 /AU

{'jlu PI

5.00{) t0oto

PI

6.00() ,1i9/o

l0l l.

tlrc ibllr-.w ing t.r ctrts or;curretl: ln,,errtol'\ \\as aettrire,l at a cost t-rf P]0"0()0. A-t l)t:t:erltb'-'r I i. 20 13. the partnership r'llvcci F6'0[10 to its suppliers { on rlroi'igage. ittte:est c\pell:ie lllc:urred on trre Prirrcipal ttl Pl$.000 rvas paid the ,irrrrroqrrp ^,r rlre nlortgage rlas P-i.CiO0. all