FEU DILIMAN

BSA 11
ACCOUNTING 4A

Name: ________________________________________ Date: ____________________

QUIZ 1A

1. The following information is available for the Lilac Company for the year
2015:

Gross profit on sales P 76,000

Cost of goods manufactured 272,000
Goods in process inventory, beginning 22,400
Finished goods inventory, beginning 36,000
Goods in process inventory, ending 30,400
Finished goods inventory, ending 41,600

How much was the sales of Lilac Company for the year 2015?

2. The following information was taken from Ray Companys accounting

records for the year ended December 31, 2015:

Increase in raw materials inventory P 15,000

Decrease in finished goods inventory 35,000
Raw materials purchases 430,000
Direct labor payroll 200,000
Factory overhead 300,000
Freight out 45,000

There was no work in process inventory at the beginning or end of the year.

What is Rays cost of goods sold for the year 2015?

3. Your review of the ledger of Lime Co. at December 31, 2015 reveal the
following:

Accounts due from customers P148,000

Land for future site 350,000
Accounts due to suppliers 124,000
Income taxes owed to BIR 16,000
Citibank current account 98,000
Advances from suppliers 150,000
Accrued interest on bonds payable 17,000
Sinking fund for bond retirement 30,000
Allowance for doubtful accounts 12,000
Estimated warranty obligations 60,000
Inventories including office supplies of P3,500 221,000

What is Limes working capital at December 31, 2015?

#4-10. Below is information for Gold Manufacturing for the year 2015.

a. Long-term debt of P450,000 was retired at face value.

b. New machinery as purchased for 48,000.
c. Common stock with a par value of P120,000 was issued for 150,000
 d. Dividends of P18,000 declared in 2014 were paid in January 2015 and
dividends of P27,000 were declared in December 2015 to be paid in
2016.
e. Net income for 2015 was P190,400. Included in this computation in
this computation were depreciation expense of P60,000 and goodwill
amortization of P30,000. Also included was a P2,000 loss on sale of
trading securities. There were no other transactions affecting these
securities in 2015.
f. Interest expense reported in the income statement is P20,000.
g. Income tax rate is 32%

Current assets and current liabilities at December 31, 2015 and December
31, 2014 were:

December 31, December 31,

2015 2014
Current Assets:
Cash and cash P 80,000 P206,300
equivalents
Trading Securities 39,000 60,000
Accounts receivable 213,000 200,000
Inventory 192,000 162,000

Current Liabilities:
Accounts payable 51,000 85,800
Dividends payable 27,000 18,000
Wages payable 84,000 12,000
Interest payable 11,100 12,000
Income tax payable 25,000 29,000

Based on the given data, determine the following:

4. Operating income before working capital changes
5. Cash generated from operations
6. Interest paid
7. Income taxes paid
8. Net cash flow from operations
9. Net cash flow from investing activities
10. Net cash flow from financing activities

11. Gumamela Companys prepaid insurance was P50,000 at December

31, 2016 and P25,000 at December 31, 2015. Insurance expense was
P20,000 for 2016 and P15,000 for 2015.

What was the amount of cash disbursed for insurance reported in

Gumamelas 2016 cash flow statement under the direct method?

#12-13. Sunflower Company is preparing a cash flow statement for the year
ended December 31, 2016. It has the following account balances:
Dec. 31, Dec. 31,
2015 2016
Machinery P250,000 P320,000
Accumulated Depreciation 102,000 120,000
Loss on sale of machinery - 4,000

During 2016, Sunflower sold for P26,000, a machine that cost P40,000
and purchased several items of machinery.
12. What is the depreciation expense for 2016?
13. Using the data of No. 12, what is the cost of machinery
purchased during 2015?

14. The plant assets and accumulated depreciation account balances for
Marigold Corporation are as follows:

Plant assets: 12/31/15 P513,000; 12/31/16 P470,000

Accum depreciation: 12/31/15 P182,000; 12/31/16 P170,000

Assuming all changes in the accounts resulted from the sale of an asset
and from depreciation expense of P8,000, what is the selling price of
the asset if a P3,00 net gain resulted from the transaction?

#15-18. Petal Company

Balance Sheet
January 1, 2016

Assets Equities
Cash P 800,000 Accounts P 380,000
Payable
Accounts 720,000
receivable
Bldgs and 3,000,000
equipment
Accum. (1,000,000) Capital stock 2,300,00
Depreciation
Patents 360,000 Retained 1,200,000
Earnings
P3,880,000 P3,880,000

Petal Company
Cash Flow Statement
For the Year Ended December 31, 2016

Cash flows from operating activities P1,000,000

Net Income
Adjustments for:
Depreciation buildings and 300,000
equipment
Amortization of patents 40,000
Gain on sale of equipment ( 120,000)
Operating Income before working P1,220,000
capital changes
Increase in accounts receivables (320,000)
Increase in accounts payable 160,000
Net cash provided from operating P1,060,000
activities
Cash flow from investing activities
Sale of equipment P240,000
Purchase of land (500,000)
Purchase of buildings and equipment (960,000)
Net cash used in investing activities (1,220,000)
Cash flows from financing activities
 Cash dividends paid P(300,000)
Sale of common stock 800,000
Net cash from financing activities 500,000
Net increase in cash P 340,000
Cash balance, January 1, 2016 800,000
Cash balance, December 31, 2016 P1,140,000

Total assets on the balance sheet at December 31, 2016 are P5,540,000.
Accumulated depreciation sold was P280,000.

15. What is the cost of the equipment sold during 2016?

16. What is the book value of the buildings and equipment at
December 31, 2016?
17. What is the accounts payable balance at December 31, 2016?
18. What is the balance in the retained earnings account at
December 31, 2016?

19. Cash received as rent of Queen Company in the year 2016 totaled
P132,300. Balance sheet data relating to rent income are as follows:
Rent received in advance: Rent receivable:
January 1 P14,500 January 1 P 3,600
December 31 15,900 December 31
2,700

What is the amount of rent income that would be shown in the

income statement for 2016?

#20-23. For each of the following independent items, make the required
calculations:
20. Prepaid insurance, beginning P__________
Prepaid insurance, end 13,480
Insurance expense for the period 38,900
Insurance premiums paid during the period 48,200

21. Sales revenue P__________

Cash, beginning 70,000
Cash, end 98,000
Total cash disbursed during the period 116,000
All cash receipts were from customers
Accounts receivable, beginning 120,000
Accounts receivable, end 166,000
Accounts written off during the period 3,000

22. Depreciation expense P__________

Equipment (net), beginning 210,000
Cost of equipment acquired during the period 80,000
Equipment (net), end 206,000
Equipment with an original cost of P60,000 was sold at a loss of
P4,000 during the period for P36,000.

23. Collections of rent P__________

Rent collected in advance, beginning 8,000
Rent collected in advance, end 10,000
Rent earned but not yet collected, beginning 5,400
Rent earned but not yet collected, end 3,000
Rent earned during the period 44,000
#24-26. The current years operations of CERELAC, INC.:

December January 1
31
Accounts receivable P 51,000 P 45,000
Accounts payable 60,000 33,000
Accrued wages - 7,000
Collections from 794,000
customers
Total cash payments 715,000

Selling expenses of P144,000 are 45% of gross profit. Administrative

expenses are 15% of sales. This amount includes depreciation which is 20%
administrative expenses. There are no unpaid selling and administrative
expenses as of December 31. Inventory per physical count at year-end
totalled P125,000.

24. The total sales for the period is?

25. The total purchases for the period is?
26. The cost of goods sold for the period is?

#27-30. The following selected date were taken from the records of
Trapezoid Company:

Merchandise inventory Accounts Payable

January 1 P 80,000 January 1 P 60,000
December 31 24,000 December 31
35,000
Accounts Receivable Accrued Wages
January 1 P 90,000 January 1 P 0
December 31 102,000 December 31
10,000

Total cash receipts during the period P950,000

Total cash payments during the period 750,000
Cash operating expenses reported in the income statement during the
period were P280,000.
Receipts from bank loan during the year 340,000
Payments of bank loan during the year 80,000

27. How mush were the cash receipts from customers during the
year?
28. How much were the sales during the year?
29. How much were the cash payments made to trade creditors
during the year?
30. How much is the cost of goods sold during the year?