Reference no: EM133138083

Question 1 - The cost of goods sold is P127, 000. The purchases and purchase returns and allowances during the period were P143, 500 and P4,500, respectively. There is no purchase discount nor freight-in. If the ending inventory is P30, 000, what is the amount of the beginning inventory?

Question 2 - Prada Company maintains a mark up of 60% based on sales. The company's selling and administrative expenses average 30% of sales. Annual sales were P 1,440,000. How much should the company record as its cost sales and operating profit for the year?

Question 3 - Merchandise subject to terms 1/10, n/30, FOB shipping point, is sold on account to a customer for 15,000. The seller paid transportation costs of 1,000 and issued a credit memorandum for 5,000 prior to payment. What is the amount of the cash discount allowable?

Question 4 - Marc Company sold merchandise to Jacobs Company on July 7, 2020 at a list price of P150,000, trade discounts of 8% and 5%, FOB shipping point. Transportation cost P1,000. Cash discount terms: 2/eom, n/60. Because defective merchandise with an invoice price of P7,000 was erroneously delivered, Marc Company issued a credit memorandum to the buyer on July 9, 2020. Jacobs Company paid in full the balance due on July 29, 2020. The invoice price of goods sold on July 7, 2020 is_______. (Ignore VAT).

Question 5 - Accumulated depreciation-Equipment of JAD Company at December 31, 2019 and December 31, 2020 were P143,000 and P155,000, respectively. During the year 2020, an equipment costing P85,000 with carrying amount of P63,000 was sold at a gain of P3,000. How much is the depreciation expense for the year 2020?

Question 6 - On January 1, 2020, Ocean Company's Allowance for Bad debts had a credit balance of P 120,000. During the year, the company wrote off P 205,000 of uncollectible Accounts Receivable, and unexpectedly recovered P 65,000 of bad debts written off in the prior year. Also at the end of this year, the company charged P 280,000 to bad debts expense. How much is the adjusted balance of Allowance for Bad Debts on Dec. 31, 2020?

Question 7 - Clippers Company is a calendar year company that uses reversing entries. An employee earns P225 per day in salaries and is paid every Friday for 5 workdays. If December 31, 2020 falls on a Tuesday, what entry would be made to record the payment on the first payroll of 2021?

Question 8 - Clippers Company is a calendar year company that uses reversing entries. An employee earns P225 per day in salaries and is paid every Friday for 5 workdays. If December 31, 2020 falls on a Tuesday, what entry would be the proper reversing entry on January 1, 2021?

Question 9 - A and B decided to form a partnership on January 1, 2022. Partner A contributed building which costed him P450,000 in 2017 and computer equipment with a book value of P17,500 and fair market value of P15,000. The building has a recorded accumulated depreciation of P50,000. Partner B, on the other hand, contributed cash equal to the contribution of Partner A. Shortly after the formation of the partnership, the building was sold for P420,000.How much should be recorded as Partner A, Capital in the partnership books?

Question 10 - A and G executed a partnership agreement that lists the following assets contributed at the partnership's formation: A - cash, P22,000 and Furniture and Equipment P12,000: B - cash, P32,000 Inventory, P17,000 Building, P42,000.The building is subject to a mortgage of P8,000, which the partnership has assumed. The partnership agreement also specified that profits and losses are to be distributed equally. What amounts should be recorded as capital for A at the formation of the partnership?

Question 11 - A and B entered into a partnership agreement in which A is to have a 60% interest in capital and profits and B is to have a 40% interest in capital and profits. A will contribute cash and the following non-cash assets: Land -Cost-P25,000 FMV-P40,000; Building-Cost-P200,000 FMV-P120,000; Equipment-Cost-P40,000 FMV-P30,000. There is a P60,000 mortgage on the Building that the partnership agrees to assume. B contributes P 100,000 cash to the partnership. How much is the additional cash investment of A to have a 60% share in the new partnership?

Question 12 - A and B entered into a partnership on April 1, 2020 by investing the following assets: A - Cash P30,000 and Office Equipment with an agreed value of P200,000. B - Accounts receivable P90,000 and Transportation Equipment of P160,000. The agreement between A and B provides that profits and losses are to be divided into 40% and 60% respectively, and that the partnership is to assume a liability on the Transportation Equipment of P60,000. The partnership further agreed that B is to receive a capital credit equal to his profit and loss ratio. How much cash is to be invested by B?

Question 13 - On April 1, 2020, A, B and C formed a partnership by combining their separate business proprietorships. A contributed cash of P 200,000. B contributed property with a carrying amount of P144,000, original cost of P160,000, and a fair value of P320,000. The partnership accepted responsibility for the P140,000 mortgage attached to the property. C contributed equipment with a carrying amount of P120,000, original cost of P300,000 and fair market value of P220,000. The partnership agreement specifies that profits and losses are to be shared equally. Assuming capital is based on their profit and loss agreement, how much is the implied bonus?

Question 14 - Marga, a partner in the JM partnership, is entitled to 40% of the profits and losses. During 2018, Marga contributed land with a cost of P 45,000 and a fair value of P 60,000. Also during 2018, Marga had drawings of P 80,000. The balance of Marga's capital account was P 120,000 at the beginning of 2018 and P 150,000 at the end of the year. What is the partnership's profit (loss) for 2018?

Question 15 - A and B formed a partnership on February 28, 2022 by contributing P430,000 and P570,000, respectively. The operations of the partnership for 2022 resulted to a profit of P375,000. Partners A and B agreed to the following allocation scheme: a. Weekly salary allowance of P1,000 is to be given to Partner A; b. 5% interest is to be credited to the partners; c. Bonus of 10% based on profit after salaries and interest to B. d. Residual income is to be allocated equally.How should the profit be allocated to A and B, respectively?

Question 16 - A, B and C are partners with average capital balances during 2020 of P945,000, P477,300 and P324,700, respectively. The partners receive 10% interest on their average capital balances, salaries of P 244,650 to A and P 165,250 to C, any residual profit or loss is divided in the ratio 3:2:1. In 2020, the partnership had a net loss of P251,248 before the interest and salaries to partners. What is the change in the capital balance of C?

Question 17 - A, B and C are partners with average capital balances during 2020 of P945,000, P477,300 and P324,700, respectively. The partners receive 10% interest on their average capital balances, salaries of P 244,650 to A and P 165,250 to C, any residual profit or loss is divided in the ratio 3:2:1. In 2020, the partnership had a net loss of P251,248 before the interest and salaries to partners. What is the share of B in the balance after deducting interests and salaries?

Question 18 - ABC Partnership has total Capital investments of P300,000 invested equally. Annual salaries amounting to P20,000, P25,000 and P10,000 to Partners A, B and C. B, an industrial partner will be allowed Bonus of P35,000. Any remainder will be divided in the ratio 4:3:3. Partner A will have a capital balance of how much after the distribution of net income of P120,000?

Question 19 - During the year, the ABC partnership's operations generated a loss. The partnership agreement provides for the following P/L sharing provisions:

Interest of P2,000, P3,000, and P5,000 to partners A, B, and C, respectively

Salary of P15,000 to partner A

Any remainder is allocated equally.If the share of partner A in the loss is P8,000, how much is the net loss for the period? NO NEED TO PUT A PARENTHESIS ON YOUR FINAL ANSWER.

Question 20 - Alvin and Hector agreed to form a partnership by investing P 390,000 and P 255,000 respectively. Profits and losses are shared 13:7. They agreed to have their respective capital interest in proportion to their profit and loss agreement in the partnership. The amount of implied bonus will be given to?