Karlo Dave Paler BSA 3rd year

Theory
1. D
2. C
3. D
4. B
5. C
6. D
7. B
8. A
9. D
10. A
11. D
12. D
13. D
14. A
15. B

1. Cash 70,000
AR (120k-26k) 94,000
Inventories (60k+(26k/130%) 80,000
Total current assets 244,000 C

2. Accounts payable 15,000

BP 25,000
Discount on bonds payable -3,000
Dividends payable 8,000
Total current liabilities 45,000 A

3. Earnings fr. Long-term contracts 6,680,000

Costs and expenses 5,1
Costs and expenses -5,180,000
Profit before tax 1,500,000
Income tax expense (1.5M x 30%) -450,000
Profit after tax 1,050,000
Retained earnings unappropriated 900,000
Retained earnings restricted for N/P 160,000
Total retained earnings 12/31 2,110,000 B

4. Note payable- noncurrent A

5. Income tax expense 450,000

Prepaid taxes 450,000

Cash 600,000
AR, net 3,500,000
Cost in excess of billings 1,600,000
Prepaid taxes
Total current assets 5,700,000 C

6. Unadjusted net sales 875,000

Treasury share of Mont error -24,000
Adjusted net assets 851,000 A