AE 112 MIDTERMS DEPTALS Set A

MC Problems Part 2
Increase in Assets 100,000
Decrease in Assets (50,000) Roy Robert Total
Net increase in assets = capital 50,000 Bonus 10.00% 10%
Balance (11:9) 49.50% 40.50% 90%
Accrued expenses P65,970 Decrease in assets 89,000 Share in NI 59.50% 40.50% 100%
Notes payable 145,000 Decrease in owners' equity (55,000)
Accounts payable 67,300 Decrease in liabilities 34,000 Bonus 0.00% 0%
Unearned revenue 125,900 Balance (11:9) -55.00% -45.00% -100%
Total Liabilities P404,170 Share in Net Loss -55.00% -45.00% -100%

MC Problems Part 1 Marko Marie Total

Service Fee ₱630,000 Cash ₱500,000 Bonus 25,000 25,000
Salary Expense (100,000) Accounts Receivable 100,000 Balance (5:7) 104,167 145,833 250,000
Depreciation Expense (40,000) Furniture and Fixtures 150,000 Share in NI 129,167 145,833 275,000
Miscellaneous Expense (30,000) Accumulated Depreciation (40,000)
Net Income ₱460,000 Total Assets ₱710,000 B = 10% (275,000 - B) B = 25,000
B = 27,500 - 0.10B
Total Assets (L + C) ₱220,000
Cash (30,000) Lorna Verna Total
Noncash Assets ₱190,000 interest on w.a. capital 4,860 3,390 8,250
Balance - equally 85,875 85,875 171,750
Gardo, Capital - desired (350T/2) 175,000 Share in NI 90,735 89,265 180,000
Gardo, Capital - adjusted (200T - 75T) (125,000)
Cash investment (drawing) 50,000
Lorna Verna
Jul. 1 (P80T x 6) 480,000 Jul. 1 (P50T x 6) 300,000
Alma 75,000
Sep. 1 (P 6T x 4) (24,000) Oct. 1 (P10T x 3) 30,000
Brenda 80,000
Oct. 1 (P10T x 3) 30,000 Dec. 1 (P 9T x 1) 9,000
Cathy (125T - 40T) 85,000
Total 486,000 Total 339,000
Total 240,000
Divide by 6 Divide by 6
Weighted Average 81,000 Weighted Average 56,500
Total Capital [50T/ (5/12)] 120,000
Mortgage Payable 20,000
Total Assets 140,000
Hilary Oliver Paul Edward Total
Salaries (9 months) 81,000 67,500 148,500
King Capital (50T + 70T) 120,000
Bonus (5:3) 12,125 7,275 19,400
Kong Capital (30T + 140T - 70T) 100,000
Interests 7,500 6,375 6,750 5,250 25,875
Total Capital Contribution 220,000 Balance -equally 23,500 23,500 23,500 23,500 94,000
Divide by 2
Share in NI 124,125 104,650 30,250 28,750 287,775
Agreed Capital (50:50) 110,000
AE 112 MIDTERMS DEPTALS Set A

B = 8% (287,775 - 25,875 - B) B = P19, 400 b. Accrued interest on N/R 100

B = 20,952 -.08B c. Decrease in inventory (12,000) (10,000)
d. Rent expense (15,000)
NI after S, I, B 77,500 e. Store supplies expense (6,000)
f. Accumulated depreciation
Add: Salaries 120,000 Furniture and fixture (6,500)
Interests 5,000 Office Equipment (15,750) (8,750)
Store Equipment (8,250)
NI b4 S and I but after Bonus 202,500 90% g. Other assets written off (10,000)
h. Accrued interest on N/P (292) (400)
Bonus (squeezed) 22,500 10% Adjusted Capital 235,558 212,000
True NI (squeezed) 225,000 100% Capital required (212,000) (212,000)
Cash drawing (investment) 23,558 0
STRAIGHT Problems
UMA ASA
Net Sales 750,000 a. Required ABD (20% x A/R) 10,000 11,600
ABD - beg (5,000) (8,000)
Cost of Goods Sold (603,000)
Increase in BDE/ABD 5,000 3,600
Gross Profit 147,000
45,00 b. I = P20,000 x 12% x (0.5/12) 100
Inventory, beginning 0 c. Decrease = 10% of inventory
Cost of Goods Purchased d. RE = (P30,000/3 months) x 1.5 15,000
Purchases 630,000 RE = (P30,000/90 days) x 45 15,000
Purchase Discount (11,000)
Purchase Ret. and Allow. (25,000) e. Supplies expense (2/3 x P9,000) 6,000
Freight-in 19,000 613,000
Goods Available for Sale 658,000 f. Required AD (25% x cost) 9,000 13,750
Inventory, end (55,000) AD - beg (2,500) (5,500)
Cost of Goods Sold 603,000 Increase in DE/AD - F&F; SE 6,500 8,250

Cash 21,000
Required AD (25% x cost) 21,250 16,250
Trading securities 6,000
AD - beg (5,500) (7,500)
Accounts receivable (net) 24,000
Increase in DE/AD - O.E 15,750 8,750
Inventory 30,000
Prepaid expenses 2,000
g. 100% of other assets
Total CURRENT ASSETS 83,000
h. I = P35,000 x 10% x 1/12 292
I = P35,000 x 10% x 31/360 301
Uma Asa
I = P30,000 x 8% x 2/12 400
Unadjusted Capital (TA - TL) 290,000 259,000
Adjustments
a. Increase in ABD (5,000) (3,600) Total Capital (212T x 3) 636,000
AE 112 MIDTERMS DEPTALS Set A

Liabilities
A/P (15T + 13T) 28,000
N/P (35T + 30T) 65,000
Accrued interest (292 or 301 + 400) 692 701
Total Assets 729,692 729,701

Sales 500,000
Cost of Goods Sold (300,000)
Gross Profit 200,000
Operating Expenses (80T - 40T) (40,000)
Operating Income 160,000
Finance Cost (12T - 4T) (8,000)
Income before tax 152,000
Income tax (30%) (45,600)
Net Income 106,400

Albert Aldrin Armand Total

Salaries (9 months) 225,000 225,000 225,000 675,000
Interest (10%) 25,000 35,000 30,000 90,000
Bonus 146,250 146,250
Balance - squeezed (25:35:30) (50,000) (70,000) (60,000) (180,000)
Share in NI (squeezed) 200,000 336,250 195,000 731,250
Capital - b4 income dis 250,000
Capital - after income dist 450,000

Income before bonus (squeeze) 731,250 100%

Bonus (squeeze) 146,250 20%
Income after bonus (S + I + balance) 585,000 80%