Reference no: EM132945790
Questions -
Q1. You are given the following information: Ordinary Shares P80,000 (P80 par); Share Premium-Ordinary, P200,000; and Retained Earnings, P400,000. Assuming only one class of share the book value per share is?
P680
P400
P280
P80
Q2. The balance in the prepaid rent account before adjustment at the end of the year is P20,000, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is?
debit Prepaid Rent, P5,000; credit Rent Expense, P5,000
debit Rent Expense, P15,000; credit Prepaid Rent, P15,000
debit Rent Expense, P5,000; credit Prepaid Rent, P5,000
debit Prepaid Rent, P15,000; credit Rent Expense, P15,000
Q3. A corporation purchased 1,000 shares of its P10 par common stock at P20 and subsequently sold 500 of the shares at P30. What is the amount of revenue realized from the sale?
15,000
P2,500
P0
P5,000
Q4. Maniquiz Corporation was organized on January 1, 2015 at which date it issued 100,000 shares of P10 par ordinary shares at P15 per share. During the period January 1 to December 31, 2017, Maniquiz reported profit of P450,000 and paid cash dividends of P230,000. On January 10, 2017, Maniquiz purchased 6,000 shares of it ordinary shares at P12 per share. On December 31, 2017, Maniquiz sold 4,000 treasury shares at P8 per share and retired the remaining treasury shares. Maniquiz uses the cost method of accounting for treasury shares. What is Maniquiz's total shareholders' equity at December 31, 2017?
P1,720,000
P1,688,000
P1,680,000
P1,704,000
Q5. What is the total stockholders' equity based on the following account balances? Common Stock P500,000, Paid-In Capital in Excess of Par 40,000, Retained Earnings P190,000 and Treasury Stock P20,000?
P630,000
P540,000
P750,000
P710,000
Q6. A sales invoice included the following information: merchandise price, P8,000; transportation, P400; terms 2/10, n/eom, FOB shipping point. Assuming that a credit for merchandise returned of P800 is granted prior to payment, that the transportation is prepaid by the seller, and that the invoice is paid within the discount period, what is the amount of cash received by the seller?
P7,600
P7,456
P7,056
P7,200
Q7. The total assets and the total liabilities of a business at the beginning and at the end of the year appear below. During the year, the owner had withdrawn P50,000 for personal use and had made an additional investment of P35,000 in the business. Assets at beginning of the year was P295,000, Liabilities at Beginning of year was P190,000 End of year Asset and Liabilities was P355,000 and P220,000 respectively. The amount of net income for the year was?
P45,000
P135,000
P85,000
P40,000
Q8. Nozuelo, Campillo and Sorio are partners sharing profits and losses equally. The partnership is being liquidated and after all assets are converted to cash and all liabilities paid, there remained P52,000 cash available for distribution to the partners Nozuelo and Campillo have capital balances of P40,000 and P30,000 respectively. Sorio has a debit balance of P18,000 in her capital account. If Sorio is personally insolvent, how much cash will be distribute?
34,000
26,000
40,000
31,000
Q9. The capital account for the partnership of Saliut and Molina at Oct. 31, 2018 follows: Saliut 80,000 and Molina 40,000.The partners share profits and losses in the ratio of 6:4, respectively. The partnership is in desperate need of cash, and the partners agreed to admit Buenaflor as a partner with one-third in the capital and profits and losses upon her investment of P30,000. Immediately after Buenaflor's admission, what should be the capital balances of Saliut, Molina and Buenaflor, respectively, assuming goodwill is not to be recognized?
P66,667;P33,333;P50,000
P68,000;P32,000;P50,000
P60,000;P60,000;P60,000
P50,000;P50,000;P50,000
Q10. If Win Corporation has 80,000 ordinary shares authorized, has 50,000 ordinary shares issued and holds 4,000 ordinary shares as treasury stock, the total number of outstanding shares of Win Corporation amounts to?
34,000
76,000
46,000
30,000
Q11. The capital accounts of the partnership of Cebedo, Esparaguera and Chanjueco on June 1, 2018 are presented below with their respective profit and loss ratio: Cebedo P139,200 (1/2); Esparaguera 208,800 (1/3) and Chanjueco 96,000 (1/6) On June 1, 2018, Maongco is admitted to the partnership when he purchased, for P132,000, a proportionate interest from Cebedo and Chanjueco in the net assets and profits of the partnership. As a result, Maongco acquired a one-fifth interest in the net assets and profits of the firm. Assuming that implied goodwill is not to be recorded, what is the combined gain realized by Cebedo and Chanjueco upon the sale of a portion of their in the partnership to Maongco?
P62,400
P43,200
P0
P82,000
Q12. Equipment with an estimated market value of P45,000 is offered for sale at P65,000. The equipment is acquired for P10,000 in cash and a note payable of P40,000 due in 30 days. The amount used in the buyer's accounting records to record this acquisition is?
P50,000
P65,000
P10,000
P45,000
Q13. A 60-day, 10% note for P8,000, dated April 15, is received from a customer on account. The face value of the note is?
P8,000
P7,200
P8,600
P8,800
Q14. The net income reported on the income statement is P90,000. However, adjusting entries have not been made at the end of the period for supplies expense of P2,700 and accrued salaries of P1,300. Net income, as corrected, is?
P90,000
P87,300
P86,000
P88,700
Q15. X sold Y merchandise on account FOB shipping point, 2/10, net 30, for P10,000. X prepaid the P200 shipping charge. Which of the following entries does X make to record this sale?
Accounts Receivable-Y, debit P10,000; Sales, credit P10,000, and Transportation Out, debit P200; Cash, credit P200
Accounts Receivable-Y, debit P10,000; Sales, credit P10,000
Accounts Receivable-Y, debit P10,000; Sales, credit P10,000, and Accounts Receivable-Y, debit P200; Cash, credit P200
Accounts Receivable-Y, debit P10,400; Sales, credit P10,400
Q16. A corporation purchases 10,000 shares of its own P20 par common stock for P35 per share, recording it at cost. What will be the effect on total stockholders' equity?
increase, P350,000
increase, P200,000
decrease, P200,000
decrease, P350,000
Q17. Sunglao and Gadia are partners who have agreed to admit Sabado, who will invest P150,000 for a 20% interest. The previous capital balances were P150,000 and P300,000 for Sunglao and Gadia, respectively. Sunglao and Gadia shared profits and losses equally.What is Sunglao's Capital balance after admitting Sabado?
P180,000 credit balance
P120,000 credit balance
P165,000 credit balance
P135,000 credit balance
Q18. A 90-day, 12% note for P10,000, dated May 1, is received from a customer on account. The maturity value of the note is?
P450
P10,300
P10,000
P9,550
Q19. A sales invoice included the following information: merchandise price, P5,000; transportation, P300; terms 1/10, n/eom, FOB shipping point. Assuming that a credit for merchandise returned of P600 is granted prior to payment, that the transportation is prepaid by the seller, and that the invoice is paid within the discount period, what is the amount of cash received by the seller?
P4,356
P$4,400
P4,656
P4,950
Q20. The outstanding stock is composed of 10,000 shares of P50 par, cumulative preferred P5 stock, and 50,000 shares of P20 par common stock. Preferred dividends have been paid every year except for the preceding two years and the current year. If P240,000 is to be distributed as a dividend for the current year, what total amount will be distributed to the preferred stockholders?
P40,000
P50,000
P100,000
P150,000
Q21. The following information pertained to T. Lianza Corporation: Dividends on its 1,000 shares of 6%, P10 par value cumulative preference shares have not been declared for three years. Treasury stock that costs P15,000 was reissued for P8,000What amount of retained earnings should be appropriated as a result of these items?
P8,800
P0
P1,800
P7,000
Q22. The supplies account has a balance of 500 at the beginning of the year and was debited during the year for 2,900, representing the total of supplies purchased during the year. If 750 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year would be?
2,400
2,150
1,650
2,650
Q23. Salvador and Cureg are partners with capital balances of P60,000 and P20,000 respectively. Profits and losses are divided in the ratio of 60:40. Salvador and Cureg decided to form a new partnership with Lusterio, who invested land valued at P15,000 for a 20% capital interest in the new partnership. Lusterio's cost of the land was P12,000. The partnership used the bonus method to record the admission of Lusterio into the partnership. Lusterio's capital account should be credited for?
P19,000
P16,000
P12,000
P15,000
Q24. Jardiolin Corporation issued 10,000 shares of P20 par value ordinary shares at P50 per share. The amount that would be credited to Share Premium-Ordinary is?
P300,000
P200,000
P500,000
P700,000
Q25. Partners Cammayo and Tac-an share profits and losses in the ratio 7:3, respectively, on Feb. 1, 2008, their capital account balances were as follows: Cammayo P70,000 and Tac-an P 60,000 Cammayo and Tac-an agreed to admit Hernandez as a partner with a one-third interest in the partnership capital and profits or losses for an investment of P50,000. The new partnership will begin with total capital of P180,000. Immediately after Hernandez's admission to the partnership, the capital account balances of Cammayo, Tac-an and Hernandez, respectively are?
P63,333;P56,667;P60,000
P70,000;P60,000;P50,000
P63,000; P57,000;P60,000
P60,000;P60,000;P60,000
Q26. If the merchandise costs P5,000, insurance in transit costs P100, tariff costs P50, and the company receiving dock personnel costs P15, what is the total cost charged to the merchandise?
P5,150
P5,100
P5,165
P5,000
Q27. The balance in the office supplies account on June 1 was P5,200, supplies purchased during June were P2,500, and the supplies on hand at June 30 were P2,000. The amount to be used for the appropriate adjusting entry is?
P5,700
P4,500
P2,500
P9,700
Q28. Allen Company acquired a building valued at P155,000 for property tax purposes in exchange for 10,000 shares of its P10 par common stock. The stock is widely traded and selling for P15 per share. At what amount should the building be recorded by Allen Company?
P250,000
P150,000
P155,000
P100,000
Q29. After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of P450,000 and Allowance for Doubtful Accounts has a balance of P25,000. What is the net expected realizable value of the accounts receivable?
P450,000
P25,000
P425,000
P455,000
Q30. On March 1, 2012, Santos and Pablo formed a partnership with each contributing the following assets. Santos has the following Cash 30,000 Machinery and equipment 25,000 and Furniture and Fixture 10,000. Pablo contributed Cash 70,000; Machinery and equipment 75,000 and Building worth 225,000. The building is subject to a mortgage loan of P80,000, which is to be assumed by the partnership. The partnership agreement provides that Santos and Pablo share profits and losses 30% and 70% respectively. What is the balance in Pablo's capital account?
370,000
290,000
145,000
895,000
Q31. John Smith owns and operates Indoor Advertising Company. Recently, John withdrew P22,000 from Indoor Advertising, and he contributed P10,000, in his name, to the Red Cross. The contribution of the P10,000 should be recorded on the accounting records of which of the following entities?
John Smith's personal records, Indoor Advertising, and the Red Cross
Indoor Advertising and the Red Cross
John Smith's personal records and the Red Cross
John Smith's personal records and Indoor Advertising
Q32. On July 1, 2020, Moñuz and Pardo form a partnership, agreeing to share profits and losses in the ratio of 4:6, respectively. Moñuz contributed a parcel of land that cost him P25,000. Pardo contributed P50,000 cash. The land was sold for P50,000 on July 1, 2020 four hours after formation of the partnership. How much should be recorded in Moñuz capital account on formation of the partnership?
answer not given
P50,000
0
P25,000
Q33. If the prepaid rent account before adjustment at the end of the month has a debit balance of P1,500, representing a payment made on the first day of the month, and if the monthly rent was P1,000, the amount of prepaid rent that would appear on the balance sheet at the end of the month, after adjustment, is?
P1,000
P1,500
P500
P2,500
Q34. A vacant lot, originally purchased for P40,000, is sold for P80,000 in cash. What is the effect of the sale on the accounting equation?
assets increase P80,000; owner's equity increases P80,000
assets increase P80,000; liabilities decrease P40,000; owner's equity increases P40,000
assets increase P40,000; no change for liabilities; owner's equity increases P80,000
assets increase P40,000; owner's equity increases P40,000
Q35. The Tantingco, Mariano and Onate Company decided to liquidate its operations on January 1. The capital accounts and profit and loss percentages on that date for the three partners are as follows Tantingco, Mariano and Onate has the following Balance in Capital Accounts P10,000, 12,000 and (4,000) respectively. Profit & Loss Percentage 20%, 30% and 50% respectively.
6,000
8,400
10,000
9,200
Q36. Merchandise with an invoice price of P5,000 is purchased subject to terms of 2/10, n/30, FOB destination. Transportation costs paid by the seller totaled P125. What is the cost of the merchandise?
P5,000
P5,050
P4,900
P5,150
Q37. Partners Agaton and Valdepenas have capital balances of P15,000 and P12,000 respectively. They share profits and losses in a 2:1 ratio. They sold all the partnership assets for P60,000, which resulted to a P6,000 gain on realization. The amount that Valdepenas should receive as her share of cash upon liquidation of the partnership is?
23,000
20,000
12,000
14,000
Q38. X sold Y merchandise on account FOB shipping point, 2/10, net 30, for P10,000. X prepaid the P200 shipping charge. Which of the following entries will Y make if Y pays within the discount period?
Accounts Payable-X, debit P10,000; Transportation In, credit P200; Cash, credit P9,800
Accounts Payable-X, debit P10,200; Merchandise Inventory, credit P200; Cash, credit P10,000
Accounts Payable-X, debit P10,000; Transportation In, debit P200; Cash, credit P10,200
Accounts Payable-X, debit P10,200; Merchandise Inventory, debit P200; Cash, credit P10,400
Q39. Allowance for Doubtful Accounts has a debit balance of P500 at the end of the year (before adjustment), and uncollectible accounts expense is estimated at 3% of net sales. If net sales are P600,000, the amount of the adjusting entry to record the provision for doubtful accounts is?
P6,800
P18,000
P12,000
P16,000
Q40. Digao Corporation declared the regular quarterly dividend of P2 per share. Digao had issued 12,000 shares and subsequently reacquired 2,000 shares as treasury stock. What would be the total amount of the dividend?
P24,000
P20,000
P4,000
P28,000
Q41. Nozuelo, Campillo and Sorio are partners sharing profits and losses equally. The partnership is being liquidated and after all assets are converted to cash and all liabilities paid, there remained P52,000 cash available for distribution to the partners Nozuelo and Campillo have capital balances of P40,000 and P30,000 respectively. Sorio has a debit balance of P18,000 in her capital account. If Sorio is personally insolvent, how much cash will be distribute to Nozuelo?
40,000
26,000
31,000
34,000
Q42. The outstanding stock is composed of 10,000 shares of $100 par, cumulative, nonparticipating preferred $8 stock, and 50,000 shares of no-par common stock. Preferred dividends have been paid every year except for the preceding two years and the current year. If $160,000 is to be distributed as a dividend of the current year, what total amount will be distributed to the preferred shareholders?
$130,000
$80,000
$160,000
$0
Q43. Amos Company acquired land in exchange for 10,000 shares of its P10 par common stock. The fair market value of the land is not determinable, but the stock is widely traded and was selling for P25 per share when exchanged for the land. At what amount should the land be recorded by Amos Company?
P100,000
P350,000
P250,000
P150,000
Q44. The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 40,000 shares were originally issued and 5,000 were subsequently reacquired. What is the number of shares outstanding?
5,000
35,000
45,000
55,000
Q45. The balance of retained earnings of Inciong Company at the beginning of the year was P650,000. During the year, Inciong earned revenues of P4,500,000 and incurred expenses of P3,800,000, dividends of P500,000 were declared and paid, and the balance of the cash account increased by P220,000. The company's profit and the year-end balance in the retained earnings account, respectively, are?
P200,000; P1,070,000
P200,000; P850,000
P700,000; P1,070,000
P700,000; P850,000
Q46. The balance in the prepaid insurance account before adjustment at the end of the year is P10,000. If the additional data for the adjusting entry is (1) "the amount of insurance expired during the year is P8,500," as compared to additional data stating (2) "the amount of unexpired insurance applicable to a future period is P1,500," for the adjusting entry:
the accounts and amounts would be the same for both (1) and (2)
there is not enough information given to determine the correct accounts and amounts
the accounts for (1) would be the same as the accounts for (2) but the amounts would be different
the debit and credit amount for (1) would be the same as (2) but the accounts would be different
Q47. Merchandise subject to terms 1/10, n/30, FOB shipping point, is sold on account to a customer for P18,000. The seller paid transportation costs of P1,000 and issued a credit memorandum for P5,000 prior to payment. What is the amount of the cash discount allowable?
P130
P190
P180
P170
Q48. If total liabilities decreased by P22,000 during a period of time and owner's equity increased by P29,000 during the same period, the amount and direction (increase or decrease) of the period's change in total assets is?
P21,000 decrease
P7,000 increase
P12,000 increase
P3,000 decrease
Q49. Partners Agaton and Valdepenas have capital balances of P15,000 and P12,000 respectively. They share profits and losses in a 2:1 ratio. They sold all the partnership assets for P60,000, which resulted to a P6,000 gain on realization. The amount that Valdepenas should receive as her share of cash upon liquidation of the partnership is?
12,000
20,000
23,000
14,000
Q50. Ragasa and Mendoza are partners sharing profits in the ratio of 3:2, respectively. On Jan. 1, Ragasa and Mendoza decided to admit Gangoso as a new partner upon her investment of P8,000. On this date, their interests in the partnership are as follows: Ragasa P11,500; Mendoza, P9,300.Assuming that the new partner is given a 1/3 interest in the firm, with bonus being allowed to the new partner, the new capital balances of Ragasa, Mendoza and Gangoso respectively, would be?
P10,540,P8,660 and P9,600
P11,500;P9,300 and P8,000
P12,480, P8,320 and P8,000
P11,520; P7,680 and P9,600
Q51. At December 31, 2016 and 2017, Huerto Co. had 3,000 shares of P100 par, 5% cumulative preference shares outstanding. No dividends were in arrears as of December 31, 2015. Huerto did not declare a dividend during 2006. During 2017, Huerto paid a cash dividend of P10,000 on its preference shares. Huerto should report dividends in arrears in its 2017 financial statements as?
a disclosure of P20,000
an accrued liability of P15,000
a disclosure of P15,000
an accrued liability of P20,000
Q52. The outstanding stock is composed of 10,000 shares of P100 par, cumulative, nonparticipating preferred P8 stock, and 50,000 shares of no-par common stock. Preferred dividends have been paid every year except for the preceding year and the current year. If P380,000 is to be distributed as a dividend for the current year, what total amount will be distributed to the preferred stockholders?
P0
P160,000
P380,000
P80,000