Académique Documents
Professionnel Documents
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Problem 1. D
JMs capital balance before share in profit
P21,000
Cash received by JM
(22,200)
Share in profit
P 1,200
Balance before adj
15,000
Joint venture profit (1,200*3)
3,600
Joint Venture
18,600
merchandise
Cost of unsold
Problem 2. A
Cash (135,000 + 65,000 + 93,600
31,000)
AR (312,000*70%)
Merchandise (250,000 218,400)
Total assets
AYs share in the total assets
(512,600*55%)
P262,600
P218,400
P31,600
P512,600
P281,930
Problem 3. D
Fully secured
Cash
Inventory
Receivable
Less:
Unsecured
with priority
Trustees
salary
Salaries
payable
Taxes
Net free assets
Total
unsecured
without priority
P124,200
53,000
13,000
P222,000
Partially
secured
P 59,640
375,000
Unsecured
P
360
79,000
(9,500)
58,500
(50,000)
80,000
(4,000)
126,700
217,860
Problem 7. A
Amounts charged to patients
Contractual Adjustments
Net patient service revenue
P384,000
(90,000)
P294,000
Page 2
Problem 8. B
Unrestricted contributions
P250,000
Contributions from a donor who stipulated that
the money be spent in accordance to the wishes
of the hospitals board of trustees
P 75,000
Contributions used for scholarship
P 75,000
Current fund revenue
P400,000
Problem 9. A
115,000
90,000
Exchange
rate
45
Peso
P5,175,0
00
43.75
3,937,50
0
40
(15,000)
22,500
(600,000
)
45
1,012,50
0
212,500
47.50
9,525,00
0
10,093,7
50
56,8750
Problem 10. C
7,850 (11.50 10.75) = (5,887.50)
Problem 11. B
Intrinsic Value
Time Value
May 31
12,500
5,000
June 30
37,500
1,500
May 1
0
14,000
Equity
Earnings (5000 1500)
37,500 gain
3,500 loss
Problem 13. D
125,000 * (92.20 91.90) = 37,500 loss
Problem 14. A
Hedged item:
2,750 (48 43)
Hedging instrument:
2,750 (43 49)
Net forex loss
13,750 gain
16,500 loss
2,750
Page 3
Problem 15. C
MV of stocks issued
Contingent
consideration
Total
Goodwill
Cost of
investment
875,000
15,000
You Corp.
Net assets at FV
890,000
660,000
660,000
230,000
Assets:
Loves assets at BV
Add: Goodwill
Less: Cash payments
Yous assets at FV
Total assets
900,000
230,000
(53,000)
695,000
1,772,000
Problem 16. B
FV of net assets
Common stocks issued, at
par
Related APIC
Cost of investment
Goodwill/(income fr. acq.)
Ayiziel
2,990,000
Vianney
903,000
2,843,750
789,250
406,250
3,250,000
112,750
902,000
260,000
(1,000)
Retained earnings:
Acquirers RE + income from acquisition related costs stock issuance costs in
excess of related APIC
4300000 + 1000 118500 69750 = P4,112,750
Problem 17. D
Problem 18. D
Problem 19. A
Problem 20. A
Cash
Cost of investment
2,500,000
BV of net assets
Sy Corp.
2,800,000
FV of NCI
Total
Goodwill
685,000
3,185,000
300,000
Inventory
Land
Patent
FV of net assets
Goodwill:
Controlling (2,500,000 2,308,000)
Non-controlling (685,000 577,000)
(90,000)
50,000
125,000
2,885,000
192,000
108,000
Amortization
Inventory
Patent
Total
2012
90,000
(18,750)
71,250
2013
(25,000)
(25,000)
Impairment of Goodwill
Controlling (192/300) *
22500
Non-controlling (108/300)
*22500
Total
2012
14,400
2012
14,400
8,100
8,100
22,500
22,500
Page 4
NCINAS
SHE at date of acquisition
Excess
Net income, 2012 (from date of acq.)
Amortization
Dividends declared
SHE as adjusted (before adj. for goodwill and
impairment
3406250 * 20%
Share in the goodwill
Share in the impairment of goodwill
NCINAS
2,800,000
85,000
485,000
71,250
(35,000)
3,406,250
681,250
108,000
(8,100)
781,150
RE Parent, end
Intercompany dividend
Income from own operations
Dividends declared
RE Parent, beg.
2,460,000
(28,000)
(525,000)
50,000
1,957,000
525,000
485,000
71,250
(22,500)
1,058,750
(103,150)
RE Parent, beg.
CNI Parent
Dividends declared
CRE
1,957,000
955,600
(50,000)
2,862,600
520,000
(25,000)
(45,000)
(75,000)
3,125
378,125
955,600
Goodwill
378125 * 20%
Impairment of goodwill
NCINIS
75,625
(8,100)
67,525
550,000
520,000
(25,000)
(22,500)
(45,000)
(22,500)
(75,000)
3,125
883,125
(67,525)
815,600
Problem 21. B
Page 5
Problem 22. C
Direct Cost
Set-up (25*7500)
Utilities (7.60*15000)
No. of parts (20*550)
Total Cost
Cost per Unit (387500/25000)
P75,000
187,500
114,000
11,000
387,500
P15.50
Problem 23. D
Direct materials
Direct labor
FOH
Direct materials rework
Direct labor rework
FOH rework
Total cost
Cost per unit (233150/450)
P42,500
65,250
78,300
13,550
15,250
18,300
233,150
P518.11
Problem 24. C
Direct materials
Direct labor
OH (5.50*120000)
Less: Disposal value
Total cost of good units
P450,000
520,000
660,000
(24,000)
1,606,000
Problem 25. A
AVERAGE
Completed and
Transf.
WIP end
Total
Cost per EUP
Units
12,000
Materials
12,000
Conversion
12,000
7,000
19,000
7,000
19,000
2.78
(52,750/19,000)
4,200
16,200
3.71
(60,025/16,200)
FIFO
Units
Materials
Conversion
WIP beg.
Started and
Completed
WIP end
Total
Cost per EUP
9,500
2,500
2,500
2,850
2,500
7,000
9,500
4.50
(42,750/9,500)
4,200
9,550
5.50 (52,525/9,55
0)
Units
15,000
60,000
Materials
60,000
Conversion
4,500
60,000
3,000
2,000
80,000
3,000
2,000
65,000
1.20
(78,000/65,000)
7,000
19,000
Problem 26. A
Problem 27. D
WIP beg.
Started and
Completed
WIP end
Lost units
Total
Cost per EUP
Total current cost per
EUP
1,500
2,000
68,000
1.25
(85,000/68,000)
2.45
Page 6
Cost of WIP beg, May 1, 2013
Additional conversion cost (4,500*1.25)
Cost of started and completed units
(60,000*2.45)
Cost of lost units (2,000*2.45)
Total cost of completed units
Cost per unit (202,525/75,000)
45,000
5,625
147,000
4,900
202,525
2.70
Problem 28. B
(Final selling price Selling price at split-off) Additional processing cost =
Incremental profit
(3 1.50) 2.50 = (1)
Problem 29. C
Joint cost
Less: NRV of by-product (4,000*4)
Joint cost to be allocated to joint
products
Product
NRV
A
B
Total
20,000
30,000
50,000
105,000
(16,000)
89,000
Share in the
joint cost
35,600
53,400
89,000
Addtl
processing cost
6,000
-
TOTAL
41,600
-
Problem 30. D
Let x = Fixed Overhead rate per machine hour
40,000x = 42,000x 28,500
machine hour
28,500 = 2,000x
rate per MH
x = 14.25 per machine hour
Problem 31. B
Material price variance:
80,000 * (5 4.75) = 20,000 unfavorable
Material quantity variance:
4.75 * (70,000 52,500) = 83,125 unfavorable
Problem 32. B
GP rates:
2011 = 35%
2012 = 40%
2013 = 35%
Repossessed merchandise
3,400
Deferred gross profit
3,000
Loss on repossession
1,100
Installment AR 2012(3,000/40%)
7,500
Page 7
Problem 33. A
Invoice price
97,500
Add: Under allowance (17,500-15,000)
2,500
Adjusted Installment Sales
100,000
CGS
65,000
Gross profit
35,000 (35%)
Repossessed merchandise
DGP
Loss on repossession
Installment AR
15,000
8,085
15
23,100
Net income:
RGP [(24,750 + 17,500) + (11,550*3)] * 35%
26,915
Loss on repossession
(15)
Net income
26,900
Problem 34. C
2011: 14,625,000/32,500,000 = 45%
2011 RGP:
Construction price
34,000,000
Est. total cost
(32,500,000)
GP
1,500,000
Percentage of Completion
45%
RGP
675,000
2012:
Construction price
Est. total cost
Anticipated total loss
34,000,000
(34,250,000)
(250,000)
675,000
(925,000)
Problem 35. D
2011: Anticipated total loss
50,000
2012: 28/35 = 80% Percentage of completion
Construction price
33,600,000
Estimated total cost
31,900,000
Gross profit
1,700,000
Percentage of completion
80%
RGP to date
1,360,000
Less: RGP, 2010
(50,000)
RGP, 2011
1,410,000
Problem 36.
1,750,000
(912,100)
837,900 (47.88%)
RGP (850,000*47.88%)
Continuing franchise fee
Interest income
Indirect costs
Net income
406,980
28,750
27,000
(50,000)
412,730
Page 8
Problem 37. A
Deferred revenue:
500,000 * 3.60478 = 1,802,390
Problem 38. C
Sales, net of discount
CGS
Samples
Expenses
Net income
516,330
(393,750)
(42,000)
(35,000)
45,580
Problem 39. B
Branch Current Manila
9/1
322500
430000
9/1
11/1
26300
125000
12/1
Bal
206200
Problem 40. B
Unadjusted balance
a.
b.
c.
d.
Adjusted balance
Problem 41. C
Problem 42. C
Mark-up above cost = 25%
Ending inventory, Home office
Ending inventory, Branch, at cost
Total ending inventory
Sales
CGS
Beginning inventory
Purchases
Less: ending inventory
Expenses
Net income
630,000
240,000
870,000
11,250,000
1,100,000
7,150,000
(870,000)
(7,380,000)
(570,000)
3,300,000
Problem 43. A
Mark-up above cost = 35%
Cost of ending inventory (43,750/35%)
Add: mark-up
Ending inventory, billed price
125,000
43,750
168,750
Page 9
Problem 44. D
Net investments before Quadribatchs cash
investment/withdrawal
Capital Credit of Quadribatch (203000*1.20)
Additional Cash investment
203,000
243,600
68,600
CY
35,000
30,000
(8,000)
57,000
CR
48,000
24,000
3,325
7,000
18,000
28,325
85,325
4,200
8,750
12,000
24,950
96,950
72,000
Problem 46. A
Salaries
Remaining (115,000
104,000)
Based on interest:
Aubrey 6000 (50%)
Ann
6000 (50%)
Share in profit
AY
52,200
AN
51,800
5,500
57,700
175,000
5,500
57,300
Problem 47. C
Net assets before TDs withdrawal
Adjustment for depreciation
Net assets, adjusted
Payment to Thaddeus
Net assets after TDs withdrawal
Problem 48. D
Patricks capital before Cassys
admission
Patricks capital after Cassys admission
Increase of
Total bonus to old partners (9,250/25%)
Old partners capital, adjusted
Cassys capital credit
(252,000/75%)*25%
Add: bonus to old partners
Cash invested by Cassy
75,000
(84,250)
9,250
37,000
252,000
84,000
37,000
121,000
Page 10
Problem 49. C
Chonas interest before liquidation
Cash received for settlement
Total deduction from Chonas interest
Total loss = 172,500/50%
CHECK:
Elaines interest
Share in the total loss
Elaines interest, after loss
Beths interest
Share in the total loss
Beths interest after loss
225,000
52,500
172,500
345,000
60,000
(69,000)
(9,000)
103,500
(103,500)
Roma
246,800
Rian
643,333
Dina
768,000
(124,667)
246,800
643,333
(396533)
643,333
(396533)
Excess of loss
absorption potential
of Rian and Dina over
Roma
Balances
246,800
246,800
246,800
24,933
118,960
7,9307
198,267
223,200
CASH:
Let x = cash received from sale of noncash assets during January
30,000 + x 80,000 223,200 = 0
x = 273,200