Prtc 1st Preboard Solution Guide

8/20/2019 Prtc 1st Preboard Solution Guide

1/48

RTC - FIRST PREBOARD (SOLUTION GUIDE)

EBRUARY 5 - 6,2011

EY ANSWERS (SET B)

MANAGEMENT SERVICES BUSINESS LAW TA!ATION AUDITING T"EORY T"EORY OF ACCOUNTS AP

1 B #6 C 1 B #6 D 1 D $1 D 1 B $1 D 1 A

2 D #% A 2 B #% C 2 A $2 C 2 D $2 B 2 D

# A #& C # A #& A # D $# B # D $# B # C

$ A #' A $ B #' A $ A $$ C $ A $$ C $ D

5 D $0 D 5 B $0 D 5 B $5 A 5 B $5 C 5 B

6 D $1 A 6 A $1 D 6 C $6 B 6 D $6 B 6 A

% A $2 B % B $2 D % B $% A % A $% D % C

& B $# B & C $# B & D $& D & B $& B & D

' A $$ C ' B $$ B ' C $' A ' D $' D ' A

10 A $5 B 10 D $5 A 10 B 50 B 10 C 50 D 10 B

11 B $6 C 11 D $6 B 11 C 51 B 11 A 51 C 11 B

12 A $% C 12 D $% C 12 C 52 D 12 C 52 C 12 D

1# B $& D 1# A $& D 1# B 5# C 1# C 5# D 1# D

1$ C $' A 1$ D $' C 1$ D 5$ C 1$ C 5$ C 1$ A

15 D 50 D 15 A 50 D 15 A 55 B 15 B 55 C 15 D

16 D 51 C 16 C 51 A 16 C 56 D 16 D 56 D 16 B

1% D 52 B 1% C 52 B 1% B 5% C 1% D 5% A 1% C

1& A 5# A 1& B 5# D 1& D 5& C 1& A 5& D 1& A

1' A 5$ B 1' C 5$ C 1' D 5' D 1' A 5' A 1' A

20 D 55 D 20 C 55 D 20 C 60 B 20 B 60 B 20 B

21 D 56 A 21 D 56 C 21 D 61 D 21 D 61 A 21 B22 B 5% D 22 C 5% C 22 B 62 B 22 A 62 A 22 C

2# BONUS 5& A 2# A 5& C 2# D 6# D 2# A 6# B 2# A

2$ A 5' B 2$ D 5' C 2$ C 6$ D 2$ B 6$ D 2$ D

25 B 60 B 25 D 60 B 25 C 65 A 25 B 65 B 25 B

26 A 61 B 26 B 61 D 26 B 66 D 26 C 66 C 26 C

2% A 62 D 2% C 62 B 2% D 6% A 2% D 6% D 2% A

2& C 6# A 2& B 6# C 2& A 6& D 2& A 6& B 2& B

2' B 6$ B 2' C 6$ D 2' A 6' B 2' C 6' B 2' B

#0 A 65 D #0 B 65 C #0 A %0 B #0 A %0 C #0 D

#1 D 66 D #1 B 66 B #1 C %1 A #1 C %1 A #1 D

#2 B 6% D #2 A 6% D #2 B %2 B #2 C %2 A #2 A

## A 6& C ## C 6& D ## B %# D ## D %# D ## B

#$ A 6' C #$ D 6' D #$ C %$ D #$ C %$ B #$ C

#5 C %0 B #5 D %0 B #5 D %5 C #5 D %5 B #5 A#6 D %6 C #6 A %6 C #6 C

#% B %% C #% B %% B #% B

#& D %& C #& B %& B #& B

#' B %' C #' C %' D #' A

$0 A &0 C $0 C &0 C $0 B

$1 C

$2 B

$# D

$$ B

$5 A

$6 B

$% D

$& B

$' B50 C


2/48

P 1 P2

1 C

2 D

# B

$ A

5 C

6 A

% A

& D

' C

10 D

11 C

12 B

1# C

1$ A

15 C

16 B

1% A

1& A

1' D

20 A

21 D22 A

2# B

2$ B

25 A

26 A

2% D

2& D

2' B

#0 D

#1 C

#2 B

## D

#$ C

#5 D#6 C

#% C

#& D

#' B

$0 B


3/48

PRTC FIRST OPEN PREBOARD - SET B

AUDITING PROBLEMS

FEBRUARY 6,2011

SUGGESTED SOLUTION - SET 2 STARTS AT PROBLEM NO. 6

PROBLEM 1 - MANILA CORPORATION

INVENTORY COS PROFIT

ITEM (ERROR) OVER (UNDER) OVER (UNDER) OVER (UNDER)

A (1&0,00000) 1&0,00000 (1&0,00000)

B 200,00000 (200,00000) (100,00000)

C 150,00000 000 000

D ($00,00000) $00,00000 200,00000

E 250,00000 (250,00000) 250,00000

F (160,00000) 160,00000 (160,00000)

(1$0,00000) 2'0,00000 10,00000

1 - C 2 - A # - B

PROBLEM 2 - MORNING CORPORATION

6-D

SALES PROCEEDS

CARRYING AMOUNT, 022&11

CA AMOUNT 010111 (P1&0,000-16&,%50) 11,25000

DEPRECIATION - 2011 (P1&0,000!25!212) (%,50000)

GAIN (LOSS) ON SALE

% - A

TRADE IN VALE

CARRYING AMOUNT, 0'0111

CA AMOUNT 010111 (1&0,000-6%500) 112,50000

DEPRECIATION - 2011 (P1&0,000!25!&12) (#0,00000)

GAIN (LOSS) ON TRADE-IN

& - B

MAC"INE 1 SOLD 022&

MAC"INE 2 DESTROYED 1201

MAC"INE # TRADED IN 0'01

MAC"INE $

MAC"INE 5 - AC*UIRED 022&

MAC"INE 6 - AC*UIRED 0'01

MAC"INE % - AC*UIRED 1201

AD+USTED BALANCE, 12#111

RECORDED (DEBITS - CREDITS)


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S"OULD BE

OVER (UNDER)

' - C

10 - A

DA FRACTION DEPRECIATION

MAC"INE 1 1&0,00000 212 %,50000MAC"INE 2 1&0,00000 1112 $1,25000

MAC"INE # 1&0,00000 &12 #0,00000

MAC"INE $ 1&0,00000 1212 $5,00000

MAC"INE 5 #'6,00000 1012 &2,50000

MAC"INE 6 216,00000 $12 1&,00000

MAC"INE % $#2,00000 112 ',00000

2##,25000

11 - C

MAC"INE A

FAIR VALUE &$,00000CA, 1210

COST 100,00000

ACCUMULATED DEPR 20,00000

&0,00000

INCREASE (DECREASE) $,00000

TO BE RECOGNIED IN OCI

12 - B

PROFIT OR LOSSOT"ER COMPRE"ENSIVE INCOME (OCI)

COMPRE"ENSIVE INCOME

1# - B

SALES PROCEEDS

LESS CARRYING AMOUNT 0%0111

CARRYING AMOUNT 12#110 #&,00000

DEPRECIATION UP TO 0%01 (#&0002 ! 612) (',50000)

GAIN ON SALE OF MAC"INE B

1$ - A

MAC"INE A (&$000 $)

MAC"INE B (#&000 2 ! 612)

MAC"INE C (&0000 $ ! 612)

TOTAL DEPRECIATION - 2011

15 - B MAC"INE 1


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FAIR VALUE 61,00000

CA 12#110

PREVIOUS CA &$,00000

DEPRECIATION - 2011 (21,00000)

6#,00000

INCREASE (DECREASE) (2,00000)

TO BE RECOGNIED IN OCI

PROBLEM $ - EVENING CORPORATION

16 - C

COST OF LAND - 2006

200% COST TO BUILD ROAD

200% MINE IMPROVEMENTS

TOTAL 2006- 200% COST

LESS RESIDUAL VALUECOST SUB+ECT TO DEPLETION

DIVIDE BY TOTAL ESTIMATED RESERVES

200' DEPLETION PER TON

DEPLETION FOR 200' (5000 ! 1#0)

1% - B

ORIGINAL COST TO BE DEPLETED

LESS 200' DEPLETION

REMAINING DEPLETABLE AMOUNT, 10110

2010 MINE IMPROVEMENTS

NEW COST TO DEPLETE

DIVIDE BY REMAINING EST RESERVES, 1110

($,000,000-5,000 #,000,000)

2010 DEPLETION PER TON

DEPLETION FOR 2010 (1,000,000 ! P0%&)

1& - D

BUILDING COST (200&)

LESS. RESIDUAL VALUE

ORIGINAL COST TO BE DEPRECIATED

LESS 200' DEPRECIATION (5,000!P0#1)

REMAINING DEPRECIABLE AMOUNT, 1110

2010 NEW BUILDINGS

NEW COST TO DEPRECIATE

DIVIDE BY REMAINING EST RESERVES (SEE NO 1%)

2010 DEPRECIATION PER TON

DEPRECIATION FOR 2010 (1,000,000 ! P021)


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1' - B

NEW COST TO DEPLETE, 010110

LESS 2010 DEPLETION

REMAINING DEPLETABLE AMOUNT, 010111

2011 MINE IMPROVEMENTS

NEW COST TO DEPLETEDIVIDE BY REMAINING EST RESERVES,010111

(6,''5,000-1,000,000)

2011 DEPLETION PER TON

DEPLETION FOR 2011 (P2,500,000 ! P021)

20 - A

DEPRECIATION FOR 2010 (P2,500,000 ! P021)

PROBLEM 5 - WEEKEND CORPORATION

21 - B

PRESENT OF NOTE RECEIVED ('5,000,000 ! 6%5)

LESS CARRYING AMOUNT OF PATENT, 050111

CARRYING AMOUNT, 010110 2,$50,00000

AMORTIATION UP TO 050111 (P#,150,00015!#) (%0,00000)

GAIN ON SALE OF PATENT

22 - D

NOTE RECEIVABLE FROM SALE OF PATENT (P#,#%5,000!1$/ !&12)

INSTALLMENT CONTRACT

0101 TO 0##1(P%2M ! 1# ! #12) 2#$,00000

0$01 TO 12#1(P5$ ! 1# ! '12) 526,50000

TOTAL INTEREST INCOME - 2011

2# - B

INSTALLMENT CONTRACT RECEIVABLE, 12#110

LESS PRINCIPAL PAYMENT RECEIVED, 0##111

BALANCE, 12#111

LESS PRINCIPAL PAYMENT TO BE RECEIVED, 0##112

NONCURRENT PORTION

2$ - B

CA, 05111

AMORTIATION OF DISC ( 0501 TO 12#1 P#,#%5,000 ! 1$ ! &12)

NONCURRENT PORTION

25 - C

AC*UISITION COST


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DIVIDENDS RECEIVED (%50K ! 2)

S"ARE OF PROFITS (%,0$0,000 ! 25)

CARRYING AMOUNT, 12#111

PROBLEM 6 - DAVAO COMPANY (START OF SET B)

26 -APURC"ASES TGAS

LESS MI, 12#1

COST OF SALES

ADD GROSS PROFIT (220,000 ! 120)

SALES

LESS. AR 12#1

COLLECTIONS FROM SALES

2% - D

CAS" RECEIPTS.OWNERS INVESTMENT

PROCEEDS FROM LOAN

COLLECTIONS FROM CUSTOMERS (SEE NO 26)

TOTAL

CAS" DISBURSEMENTS.

PURC"ASES (P250 - 15K) 2#5,00000

STORE FI!TURES ( 50K-5K) $5,00000

LOAN PAYMENT &0,00000

E!PENSES PAID 1&0,00000

CAS" BALANCE PER BOOKS, 12#1

2& - C

UNAD+USTED BALANCE PER BANK, 12#1

OC , 12#1

UNDEPOSITED COLLECTIONS, 12#1

AD+USTED BALANCE PER BANK, 12#1 (CAS" ACCOUNTED)

CAS" BAL PER BOOKS, 12#1 (CAS" ACCOUNTABILITY)

CAS" - OVER (S"ORT)

2' - D

#0 - B

PROBLEM NO % - CEBU COMPANY

11#011 RECEIPTS

BALANCES PER BANK (A,G) 1$,01000 2&1,0%000

DIT (B)

NOV #0 2,%$000 (2,%$000)


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DEC #1 #,11000

OC

NOV #0 ($,26000)

DEC #1(P#,&%0 - %00)

BANK COLLECTIONS NOT IN BOOKS (D)

NOV #0 (1,20000) 1,20000

DEC #1 (1,60000)BANK C"ARGES NOT IN BOOKS (E)

NOV #0 '5000

DEC #1

DAIF C"ECKS

RETURNED IN DEC (")

RETURNED IN NOV (I) 1,05000 (1,05000)

RETURNED RECORDED IN DEC (+) ('0000)

BANK ERROR (K)

CAS" RECEIPTS USED FOR PAYTS (L) %5000

BOOK ERRORS (M,N)CUSTOMERS C"ECKS ($65-165) (#0000)

DISB C"ECKS (#,250-#25)

BALANCES PER BOOKS 1#,2'000 2%',5$000

#1 - A #2 - C

#6 - B

#% - D

#& - D

#' -A

ROBINSON (%0,000 - #0,000)

TRIPPER (RECEIVED PDC ON 111)

AD+USTED NOTES RECEIVABLE - TRADE 12#111

$0 - D

ROBINSON

+AN TO AUG - %0,000 ! 06 ! &12 2,&0000

SEPT TO DEC - $0,000 ! 06 ! $12 &0000

TRIPPER P&,000 ! 006 ! 1212

PEPPER - P$2,$#% - P$0,500

ANNA - 25,000 ! 06 ! 212

+ULIA (NON INTEREST)

TOTAL INTEREST INCOME

$1 - B


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$2 - C

PRINCIPAL

DIRECT ORGANIATION COST

ORIGINATION FEE RECEIVED FROM BORROWER (10M ! 05)

CARRYING AMOUNT, 010111

$# - ACA, 12#112

LESS PV OF E!PECTED CAS" FLOWS.

12#11$ - P$M ! &116 #,2$6,$0000

12#116 - P$M ! 65&% 2,6#$,&0000

LOAN IMPAIRMENT

$$ - A

$5 - B

$6 - B

UNAD+USTED CAS" BALANCE

CAS" SALES

UNDELIVERED C"ECKS

POST DATED C"ECKS

COMPENSATING BALANCE - RESTRICTED

AD+USTED CAS" BALANCE

$% - C

UNAD+USTED BALCLAIMS AGAINST S"IPPER

SP OF UNSOLD GOODS OUT ON CONSIGNMENT

SECURITY DEPOSIT ON LEASE WARE"OUSE

POST DATED C"ECKS

UNRECORDED SALE - P$6,000 ! 1#)

AD+USTED AR

$& - A

AR, NET (SEE NO $%)

CLAIMS AGAINTS S"IPPER TRADE OT"ER RECEIVABLES, NET

$' - D

UNAD+USTED INVENTORY

GOODS SOLD FOB DESTINATION - IN TRANSIT

GOODS PURC"ASED FOB S"IPPING POINT - IN TRANSIT

AD+USTED INVENTORY


10/48

50 - B

CAS" - SEE NO $6

TRADE OT"ERS - SEE NO $&

INVENTORY - SEE NO $'

INVESTMENTS

PREPAID INSURANCE

CAS" "ELD AS COMPENSATING BALANCECURRENT ASSETS


11/48

WORKING CAP

OVER (UNDER)

(1&0,00000)

(100,00000)

000

200,00000

250,00000

(160,00000)

10,00000

$ - B 5 - D

6,00000

#,%5000

2,25000

2$,00000

&2,50000

(5&,50000)

COST

000

000

000

1&0,00000

#'6,00000

216,00000

$#2,00000

1,22$,00000

1,%#$,00000


12/48

1,22$,00000

510,00000

A/D CA

000 -000 -

000 -

'0,00000 '0,00000

&2,50000 #1#,50000

1&,00000 1'&,00000

',00000 $2#,00000

1'',50000 1,02$,50000

MAC"INE B

#&,00000

60,00000

20,00000

$0,00000

(2,00000)

P L

(2,00000)$,00000

2,00000

#2,00000

2&,50000

#,50000

21,00000

',50000

10,00000

$0,50000

MAC"INE C


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6&,50000

&0,00000

(10,00000)

%0,00000

(1,50000)

P L

50,00000

5,000,00000

%50,00000

5,&00,00000

600,000005,200,00000

$,000,00000

1#0

6,50000

5,200,00000

6,50000

5,1'#,50000

2%5,00000

5,$6&,50000

6,''5,00000

0%&

%&0,00000

1,500,00000

250,00000

1,250,00000

1,55000

1,2$&,$5000

225,00000

1,$%#,$5000

6,''5,00000

021

210,00000


14/48

5,$6&,50000

%&0,00000

$,6&&,50000

1,100,00000

5,%&&,50000

5,''5,00000

0'%

2,$25,00000

525,00000

#,#%5,00000

2,#&0,00000

''5,00000

#15,00000

%60,50000

1,0%5,50000

%,200,00000

1,&00,00000

5,$00,00000

1,&00,00000

#,600,00000

#,#%5,00000

#15,00000

#,6'0,00000

1&,&00,00000


15/48

(1,500,00000)

1,%60,00000

1',060,00000

250,00000

#0,00000

220,00000

26$,00000

$&$,00000

%0,00000

$1$,00000

150,00000

'&,00000

$1$,00000

662,00000

5$0,00000

122,00000

'1,50000

($,50000)

5,00000

'2,00000

122,00000

(#0,00000)

DISBURSEMENTS 12#111

2%5,$5000 1',6#000


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#,11000

($,26000)

#,1%000 (#,1%000)

(1,60000)

'5000

(6$000) 6$000

(&0000) &0000

('0000)

(2,01000) 2,01000

%5000

(#0000)

2,'2500 (2,'2500)

2%$,6#500 1&,1'500

## - D #$ - A #5 - B

$0,00000

&,00000

$&,00000

#,60000

$&000

1,'#%00

25000

000

6,26%00


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10,000,00000

1#0,'0000

(500,00000)

',6#0,'0000

',%56,2#200

5,&&1,20000

#,&%5,0#200

1,056,00000

(150,00000)

'#,00000

(%&,00000)

($00,00000)

521,00000

1,220,00000(#0,00000)

(260,00000)

(#00,00000)

%&,00000

5',&0000

%6%,&0000

%6%,&0000

#0,00000%'%,&0000

$$1,00000

#&,00000

51,00000

5#0,00000


18/48


19/48


PRACTICAL ACCOUNTING 1

FEBRUARY 6,2011

SUGGESTED SOLUTION - SET B STARTS AT PROBLEM NO.

1 - C YR 2010

SERVICE CONTRACT SOLD 250,00000

EARNED IN 2010 FROM.

2010 (250T ! $ ! 12) (50,00000)

EARNED IN 2011 FROM.

2010 (250T ! $ ! 12) (50,00000)

2010 (250T ! 6 ! 12) (%5,00000)

2011 (#00T ! $ ! 12)

UNEARNED, 12#111 %5,00000

2 - B

# - A

$ - D

COST OF GOODS SOLD - B GRADE (1M&&M-125M)

COST RATION (1-25)

SALES REVENUE

5 - D

UNAD+USTED NET SALES

UNRECORDED SALES RETURN - AUT"ORIED 122%11UNRECORDED SALES - S"IPPED 12#011

UNS"IPPED GOODS RECORDED AS SALES

GOODS LOST IN TRANSIT

AD+USTED NET SALES

6 - B

DM

DM PURC"ASES IN TRANSIT

WIP

FGCOST OF GOODS OUT ON CONSIGNMENT (2%T ! &0)

TOTAL INVENTORY

% - D

INVENTORY PER RECORDS

B

C


20/48

D

E

CORRECTED INVENTORY

& - B

INVENTORY, 12#110

PURC"ASES TOTAL

LESS. INVENTORY, 12#111 - &5M 60M

COST OF INVENTORY BEF LOSS ON INVENTORY WRITEDOWN

LOSS ON INVENTORY WRITEDOWN - 500K - #00K

COST OF SALES AFTER WRITEDOWN

' - A

10 - D

11 - A

12 - A

1# - A

INVENTORY BEGINNING

PURC"ASES

PURC"ASE DISCOUNT

PURC"ASE ALLOWANCE

PURC"ASE RETURNS

FREIG"T IN

NET MARK UP

NET MARK DOWN

DEPARTMENTAL TRANSFER - IN

DEPARTMENTAL TRANSFER - OUT

ABNORMAL WASTAGES

GOODS AVAILABLE FOR SALE

COST RATIO

GOODS AVAILABLE FOR SALE AT RETAIL

LESS.

NET SALES

SALES DISCOUNT

SALES ALLOWANCE

NORMAL WASTAGES

EMPLOYEE DISCOUNTS

ESTIMATED INVENTORY, 0'#010 AT COST

! COST RATIO


21/48

EST INVENTORY 0'#010 AT COST

COST OF USABLE DAMAGED GOODS

ESTIMATED INVENTORY FIRE LESS

1$ - B

15 - D

16 - D

1% -B

1& - D

C 34

P7897:; 5,000,000,00000 0620'

I8


22/48

D=:=978< (P20,000,000P%0,000-P100,000)

D77= ? >=>; ;7=

D=:=979=, 8=< 4 =7>; ;>= (P10M - P2M)

M78= 7@:4=@=8=9<


23/48

#0 - B

P


24/48

#$ - B

TOTAL CAS" ('25T - 1%T '&T &00)

#5 - A

LOAN AMOUNT ('00 T - 50T) &5

ANNUAL INTEREST PAYMENT (P1M ! 12)

ANNUAL INTEREST INCOME ON INCREMENTAL CB (100T ! 0$)

NET INTEREST PAYMENT

NET LOAN PROCEEDS (1M - 100T)

EFFECTIVE INTERST RATE

#6 - D

#% - C

#& -C

AR , 010111

ADD. DEBITS TO AR

SALES ON ACCOUNT 2,$00,00000

RECOVERY OF ACCOUNTS WRITTEN OFF $,&0000

TOTAL

LESS. CREDITS TO AR

CAS" RECEIVED FROM CUSTOMERS 2,560,00000

SALES DISCOUNT

P1,$11,200 '& ! 02 2&,&0000

P%'2,000 '' ! 01 &,00000 #6,&0000

ACCOUNTS WRITTEN OFF 1%,60000

ACCOUNTS RECEIVABLE, 12#111

ALLOW FOR DA, (P2%0,$00 ! 05)

NRV, 12#111

#' - B

TOTAL AMOUNT TO BE RECEIVED (P5,00' ! 5)

LESS INITIAL CARRYING AMOUNT

TOTAL INTEREST INCOME OVERTERM OF NOTE

$0 -B

$1 -A

ERRONEOUS CREDIT TO GAIN ON SALE OF MAC"INE (&00T - 6$0T)

UNRECOGNIED LOSS (SEE COMPUTATION BELOW)

UNRECOGNIED INTEREST INCOME (P56',$$0 ! 12 ! 612)


25/48

NET OVERSTATEMENT

COMPUTATION ON LOSS ON SALE OF MAC"INE.

SALES PRICE (PV OF NR) P&00 ! %11&

CARRYING AMOUNT

LOSS ON SALE

$2 -A

CAS" (15M ! %5) 1,125,00000

RECEIVABLE FROM FACTOR (15M ! 1) 150,00000

ALLOWANCE FOR DA #5,00000

LOSS ON FACTORING 190,000.00

ACCOUNTS RECEIVABLE

$# - D

AR FACTORES

FACTORS "OLDBACK - 110,000 !0&COMMISSION - 110,000 ! 015

NET AMOUNT BEFORE INTEREST

INTEREST C"ARGE ('',550 ! 16 ! 60#60)

NET PROCEEDS

$$ - A

AC*UISITION COST

CAS" DIVIDENF RECEIVED (1M ! 25 !P22)

S"ARE OF PROFIT - P$&M ! 25

CARRYING AMOUNT, 12#111

$5 - D

$6 -D DEBIT

CAS" (5,'12 $50 - 1'0) 6,1%200

AR (5,2$0 - $50) $,%'000

SUPPLIES ON "AND 2,'6%00

FURNITURE FI!TURE (6,100 #,200) ',#0000

AP

S"ARE CAPITAL

RETAINED EARNINGS

SERVICE REVENUE - P5,200 2,025 &0

OFFICE E!PENSE - P$,#20 - #,200 1,12000

TOTAL 2$,#$'00

$% -B

$& - C


26/48

$' - D

50 - A EFFECT ON

EQUITY

CAS" &00,00000

AR, NET ($0,00000)INVTRY #00,00000

E*UIPMENT #60,00000

BUILDING, NET 600,00000

LOANS PAYABLE (1,000,00000)

ACCOUNTS PAYABLE #00,00000

NET INCREASE IN E*UITY 1,#20,00000

CONTRIBUTIONS FROM OWNERS (&00,00000)

DISTRIBUTION TO OWNERS 250,00000

NET INCOME - 2011 %%0,00000


27/48

18

YR 2011 TOTAL

#00,00000

(60,00000)

2$0,00000 #15,00000

&,550,00000

0%5

11,$00,00000

1,#00,00000

(50,00000) &0,00000

(100,00000)

-

1,2#0,00000

'',00000

16,20000

6&,$0000

&1,0000021,60000

2&6,20000

#05,00000

100,00000

($6,00000)


28/48

(150,00000)

61,00000

2%0,00000

1',$50,00000

12%,&50,000001$%,#00,00000

1$,500,00000

1#2,&00,00000

200,00000

1##,000,00000

COST RETAIL

1'0,00000 #00,00000

2,'00,00000 $,000,00000

(50,00000)

('0,00000)

(60,00000) (120,00000)

20,00000

60,00000

(&0,00000)

#&6,&0000 $#0,00000

($00,00000) (550,00000)

(&0,00000) (120,00000)

2,&16,&0000 #,'20,00000

0%2

#,'20,00000

2,'0&,00000

&,20000

#2,15000

120,00000

',50000 #,0%%,&5000

&$2,15000

0%2


29/48

606,#$&00

(50,00000)

556,#$&00

PV 1111

#,10$,500,00000

'$%,%00,00000$,052,200,00000

5,000,000,00000

$,052,200,00000

94,800,000.00

&$0,00000

#0,00000

80,000.00

#00,00000

120,00000

$20,00000

15

28,000.00

62',00000

20

#1,$5000

2,%0000

!4,1"0.00


30/48

42,"00.00

1,'%0,00000

10

19,000.00

6,2$000

$1%00

2,1$500

8,801.00

!06,2"0.00

,8".00

&,000,00000

%50,00000

&,%50,00000

2,000,00000

$#&

50,00000

219,000.00

&,%50,00000

21',00000

&,5#1,00000

#,150,00000

2%1

150,00000

406,"00.00

98,000.00

12,000,00000

10,000,00000

2,500,00000

24,"00,000.00


31/48

!!,000.00

11,000,000.00

2,00000

',00000

11,000.00

CA


32/48

'1&,60000

1,000,00000

120,00000

($,00000)

116,00000

'00,00000

12'0/

$&0,00000

2,$0$,&0000

2,&&$,&0000

2,61$,$0000

2%0,$0000

(1#,52000)

256,&&000

25,0$500

1',$&500

5,56000

160,00000

%0,56000

(#$,16600)


33/48

1'6,#'$00

56',$$000

6$0,00000

(%0,56000)

1,500,00000

110,00000

(&,&0000) (1,65000)

'',55000

2,65500

'6,&'500

5,000,00000

(550,00000)

1,200,00000

5,650,00000

CREDIT

%,0$$00

&,00000

2,00000

%,#0500

2$,#$'00


34/48


35/48


PRACTICAL ACCOUNTING 2

FEBRUARY 6,2011

SUGGESTED SOLUTIONS - SET B STARTS AT PR

1 A

CONSTRUCTION IN PROGRESS (2$M ! 60/) - (1'5M ! 20/)

MISCELLANNEOUS ACCOUNTS

2 B

T"E INDICATED GAIN OF P2,0&0 WILL NOT BE RECOGNIED AT DATE OF RE

BE DEFERRED TO T"E POINT OF SALE, BY LOWERING T"E FAIR VALUE TO E

OF T"E MERC"ANDISE

UNPAID BALANCE (#2T-6$T-6$T)

LESS. DEFERRED GP (1',200 ! $0/)

UNRECOVERED COSTLESS. FAIR VALUE

GAIN

# B

REVENUE RECOGNIED - &$M ! 5&0%25

LESS. COST INCURRED TO DATE

PROFIT TO DATE

LESS. PROFIT RECOGNIED - 2010

REVENUE RECOGNIED - &,$00,000 ! #26$

LESS . COST INCURRED TO DATEPROFIT - 2010

ENTRY . CONSTRUCTION COST (P5,&00,000 - P#,200,000) 2,600,000

CONSTRUCTION IN PROGRESS

CONSTRUCTION REVENUE (P6,%20,000- P$,200,000)

$ A

REVENUE RECOGNIED TO DATE

LESS . COST INCURRED TO DATE (#,200,00 2,600,000 1,$50,000)

PROFIT TO DATELESS . PROFIT RECOGNIED PRIOR YEARS

PROFIT RECOGNIED - 2011

ENTRY . CONSTRUCTION COST (P%,250,000 ! 20/)

CONSTRUCTION IN PROGRESS (:1,150,000 ! 20/)

CONSTRUCTION REVENUE (P&,$00,000 ! 20/)


36/48

NOTE 20/ IS A WORK ACCOMPLIS"ED IN 2011

5 A

REALIED GROSS PROFIT (200,000 ! #0/)

6

INTEREST ON T"E FIRST PAYMENT (1,000,000 ! #/)INTEREST ON T"E SECOND PAYMENT ('2',5#%&6)

TOTAL COLLECTIONS APPLYING TO T"E INTEREST

% D

BALANCE PRINCIPAL (1,$00,000 - $00,000)

LESS .PAYMENT APPLIED TO PRINCIPAL Q100,$6210 - (1,000,000 ! #0/)

BALANCE PRINCIPAL

LESS .PAYMENT APPLIED TO PRINCIPAL Q100,$6210 - ('2',5#%&6 ! #/)

UNPAID BALANCELESS . DEFERRED GROSS PROFIT (#5/)

UNRECOVERED COST

LESS . VALUE OF REPOSSESSED MERC"ANDISE

LOSS

& - B

ENTRY . INVESTMENT IN *UEON BRANC"

INVESTMENT IN NAGA BRANC"

TO REVERSE T"E ERRONEOUS CREDIT TO T"E *UEON BRA

REFLECT REMITTANCE OF NAGA BRANC"

'- D

REALIED GROSS PROFIT - REGULAR SALES (#&5,000 ! #0/)

REALIED GROSS PROFIT - IS - 2010 5$1#5 $0/(1#5,000-15,000-%,&00)

REALIED GROSS PROFIT - IS - 2011-26#,500$25,000 #&/ ($25,000-200,

TOTAL REALIED GROSS PROFIT

LESS . LOSS ON REALIATION

TOTAL REALIED GROSS PROFIT, NET OF LOSS ON REPOSSESSION

10 - C

BILLED PRICE OF S"IPMENTS TO BRANC" (150,000 ! 120/)

S"IPPING C"ARGES

AMOUNT DEBITED TO T"E "OME OFFICE ACCOUNT


37/48

11 - B

SALES

COST OF SALES (%0,000125/)

"OME OFFICE DISBURSEMENT C"ARGEABLE TO SALES AGENCY

SAMPLE E!PENSE (15,%50-10,000)

DEPRECIATION OF FURNITURE AND FI!TURES (25,000 ! 1/)NET INCOME - AGENCY

12 - D

S"IPMENT TO BRANC"

MERC"ANDISE RETURNED

MERC"ANDISE INVENTORY, END

COST OF GOODS SOLD AT BILLED PRICE

LESS . COST OF GOODS SOLD AT COST (25,#&0120/)

REALIED PROFIT TO BE TAKEN UP IN T"E "OME OFFICE BOOKS

1# - C

SALES

1$0/

E!PENSES

TRUE NET INCOME - BRANC"

1$ - D

TOTAL ALLOWANCE FOR OVERVALUATION

LESS . ALLOWANCE FOR OVERVALUATION ON CURRENT S"IPMENT (2&&,00

PROFIT IN BEGINNING INVENTORY

WPEE. ALLOWANCE FOR OVERVALUATION

MERC"ANDISE INVENTORY, DECEMBER 1, 2010

TO ELIMINATE T"E OVERSTATEMENT OF T"E BRANC" BEGINNING INVEN

15 - C

1',000,000

LESS . REVENUE RECOGNIED - 200' (20,000,000 ! $16)

CONSTRUCTION REVENUE - 2010

CONSTRUCTION PROFIT (10,%50,000-10,250,000)

COST OF GOODS SOLD AT COST (16&,000 - 50,$00) 11%,600

CONSTRUCTION REVENUE (21,000,000 ! 1$,250,000)


38/48

16 - C

&0/

S"ARE OF NEW PARTNER

AMOUNT T"AT PARTNER S"OULD INVEST

1% - DINITIAL FRANC"ISE FEE

CONTINUING FRANCISE FEE ( 2,%02,500 ! 5/)

TOTAL FRANC"ISE REVENUE

1& - B

DOWN PAYMENT

5,000,00000

REALIED GROSS PROFIT

1' - B

DOWN PAYMENT

PV OF INSTALLMENTS (2,000,000 ! 2$0)

TOTAL

FRANCISE COST

REALIED GROSS PROFIT - COLLECTION OF NOTES REASONBLY ASSURED

GP RATE 5,%50,0006,&00,000 &5/

DOWN PAYMENT

FIRST INSTALLMENT 2,000,000 - ($,&00,000 ! 2$/) TOTAL

! GP RATE

REALIED GROSS PROFIT - COLLECTION OF NOTES NOT REASONABLE ASSU

20 - C

ACTUAL COST-TO-DATE, 12#110 (:2$,000,000 ! 60/)

ADD PROFIT-TO-DATE, 12#110 H(P26,000,000 ! 60/)-P1$,$00,000

CIP, 12#110

LESS PROGRESS BILLINGS TO-DATE, 122110

DUE FROM CUSTOMERS (A CURRENT ASSETS)

21 - D

FACE AMOUNT OF NR (P#,000,000 - P1,200,000)

PRESENT VALUE (P600,000 ! 21%)

UNEARNED INTEREST AT DECEMBER #1, 200'

EARNED INTEREST DURING 2010 (1,#02,000 ! 1&/)

UNEARNED INTEREST AT 12#110

TOTAL CAPITAL AFTER ADMISSION (#%,000 65,000 $&,000)

GROSS PROFIT RATE (5,000,000 - 500


39/48

22 - B

PASIG PRO+ECT. IGNORE T"E INITIAL PROFIT

CAINTA PRO+ECT (P%5M - &M)

2# - A

REVENUE TO DATELESS. REVENUE RECOGNIED TO END OF 200' (&$M ! &0/)

RECOGNIED REVENUE FOR 2010

2$ - C

COST (&00T 1#20M)

LESS FV OF NA (1%60M - 2&0T)

GOODWILL

DAVID CORP (#,0$0,000-&00,000-#2,000)

AC*UIRED ASSETS (160T $00T &0T 1120M)GOODWILL (SEE 2$ - C)

TOTAL ASSETS AFTER COMBINATION

25 - A

TOTAL S"E (16&0M $00T1#20T-#2T)

STOCK"OLDERS E*UITY .

CAPITAL STOCK (1,6&0,000 '00T)

APIC (1,#20,000 - '00T - 12T)

RE ($00T - 20T)

TOTAL

26 - A

TA (#5M (21M ! 50/)

2% - D

UNDER E*UITY MET"OD "ER OWN LIABILITIES IS ONLY P1,&00,00000

2& - C

NET INCOME FROM 48 4:=


40/48

COST J FV ((&60T ( 50T ! 2/))

FV OF NA AC*UIRED

IFA

RE (55M #'T - %T)

#1 - B

COSTLESS FV OF NA (220T 550 T 60T -50T -'5T)

GOODWILL

NET C"ANGE IN TOTAL ASSETS (220T 550T 60T $0 T -%25T)

#2 - C

PERSONAL ASSETS

PARTNERS"IP ASSETS

TOTAL AMOUNT AVAILABLE TO PERSONAL CREDITORS AT T"IS POINT

## - A

#$ - C

SALARIES ($0T #5T 2$T)

INTERESTS ( '600 1$$00 21600)

BALANCE #

RE*UIRED PARTNERS"IP INCOME

#5 - B

LITAS CONTRIBUTION

BERTAS CONTRIBUTION

CARLAS CONTRIBUTION

TOTAL CONTRIBUTION

DIVIDE BY

CAPITAL CREDIT TO CARLA ( T"E TWO OT"ERS)

#6 - A

#% - A

BANK LOAN

#& - D 1'6,25000

TOTAL BOOK VALUES 1#0,00000

RV OF ASSETS PLEDGED 66,25000

BALANCE (UNSECURED)

TOTAL ESTIMATED PAYMENTS TO 2 PARTIALLY SECURED CREDITORS

#' - A

$0 - D


41/48

TOTAL BOOK VALUE

REALIABLE VALUE OF PLEDGED ASSETS

BALANCE

ESTIMATED PAYMENT TO PARTIALLY SECURED CREDITORS


42/48

BLEM NO. 20

10,500,00000

10,500,00000

OSSESSION IT WILL

UAL T"E UNRECOVERED COST

1',20000

%,6&000

11,520001#,60000

(2,0&000)

$,200,00000

#,200,00000 1,000,00000(&0,00000)

&0,00000

2,520,00000

&,$00,00000

%,250,00000

1,150,00000'20,00000

2#0,00000

1,$50,00000

2#0,00000

1,6&0,00000


43/48

60,00000

#0,000002%,&&61$

5%,&&61$

1,000,00000

%0,$621$

'2',5#%&6

%2,5%600

&56,'61&62'','#665

55%,02521

500,00000

",02".21

P#0,00000

P#0,00000

C" AND TO

115,50000

$',&&000

000) &5,50000

2$5,&&000

1,6&000

2$$,20000

1&0,00000

$,00000

1&$,00000


44/48

%0,00000

(56,00000)

(#,60000)

(5,%5000)

(25000) $,20000

125,00000

(15,26000)

(&$,00000)

25,#&000

21,15000

4,2!0.00

1#$,$0000

(&$,00000)

(10,&0000)

#',60000

60,00000

-2$0,000) $&,00000

12,000.00

12,000

12,000

ORY

15,%50,00000

5,000,00000

10,%50,00000

50000


45/48

1&%,50000

20/

!,"00.00

$,000,00000

1#5,12500

4,1!",12".00

2,000,00000

'0/

1,800,000.00

2,000,00000

$,&00,00000

6,&00,00000

(1,020,00000)

",80,000.00

2,000,00000

&$&,000002,&$&,00000

&5/

RED 2,420,800.00

1$,$00,00000

1,200,00000

15,600,00000

1#,000,00000

2,600,00000

1,800,000.00

1,#02,00000

$'&,00000

2!4,!60.00

26#,6$000

,000)


46/48

-

(500,00000)

&,$00,000006,%20,00000

1,6&0,00000

2,120,00000

1,$&0,00000

6$0,00000

2,20&,00000

1,%60,000006$0,00000

4,608,000.00

!,!68,000.00

2,5&0,00000

$0&,00000

#&0,00000

#,#6&,00000

$,550,00000

1,500,00000

125,00000

1,625,00000

$6#,6#600

$#0,00000

##,6#600


47/48

&61,00000

'00,00000

(#',00000)

5,5#2,00000

%25,000006&5,00000

$0,00000

1$5,00000

200,00000

120,00000

#20,00000

'',00000

$5,60000

(2%,%5000)

116,&5000

1,$%%,%0000

$%%,05000

#2#,%5000

2,2%&,50000

#00

%5',50000

AP TOTAL PSC

150,00000 #25,00000

11$,00000 2$$,00000 ! 100/ 2$$,00000

#6,00000 102,25000 ! #%/ #%,50

2&1,50


48/48

&%,%0000

&$,00000 ! 100/ &$,00000

#,%0000 ! 6&/ 2,51600

&6,51600

Prtc 1st Preboard Solution Guide

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