AFAR PREWEEK ANSWER KEY

PARTNERSHIP: FORMATION 22. B

2.2M – 2.48M = (280k x 3/5) – 2.08M
1. D
= 1,912,000
2. A
23. C
3. A
C, Cap 2.6M
4. C
A, Cap 240K
5. A
B, Cap 360K
Cash 2M
X Y
Equip 1.2M
Unadj 57,000 Unadj 49,500
M&E (1,500) M&E (4,500) PARTNERSHIP: LIQUIDATION
ADA (12,000) ADA (4,500)
Adj 43,500 Adj 40,500 24. C
25. B
6. C 26. D
Y: (40.5k/40% x 60%) – 43,500 = 17,250 27. D
28. A
PARTNERSHIP: OPERATIONS 29. B
7. C Proceeds (2M – 1.5M) = (500K)
8. D Liq Exp (100k)
9. D (600k)*
10. A
X(20%) Y(40%) Z (40%) TOTAL A B C TOTAL
I 10,000 15,000 20,000 45,000 200,000 350,000 450,000 1,000,000
S - 10,000 - 10,000 (360,000) (60,000) (180,000) (600,000)*
R 19,000 38,000 38,000 95,000 (160,000) 290,000 270,000 400,000
Share 29,000 63,000 58,000 150,000 160,000 (40,000) (120,000)
Beg 100,000 150,000 200,000 0 250,000 150,000
Drawings (12,000) (12,000) (12,000)
Cap bal 117,000 201,000 246,000 30. D
Proceeds 60K MPL = 100k
11. D Inventory (100k)
12. A Loss (40k)*

X Y Z TOTAL X y
I 11,700 20,100 24,600 56,400 120,000 80,000
S - 10,000 - 10,000 (40,000) (24,000) (16,000)
R 22,720 45,440 45,440 113,600 100,000 (60,000) (40,000)
34,420 75,540 70,040 180,000 36,000 24,000
13. C
Beg 201,000 31. D
Drawing (12,000) Proceeds 10k
Sh in NI 75,000 Inventory (100k)
Balance 264,540 Loss 90k

PARTNERSHIP: DISSOLUTION X Y
14. B 60,000 40,000
15. D (90,000) (54,000) (36,000)
16. B 6,000 4,000
17. D
18. B CORPORATE LIQUIDATION
19. D
WXY 150,000 32. A
x 6/5 33. B
Total Cap 180,000 x 1/6 = 30,000 34. B
20. D 35. A
21. D 36. D
C 2.2M x 2/5 = 880k + 1.32M = 2.2M
 37. B 44. D
IIB HOC
Unadjusted 225,770 276,485
a - 3,150
b - (675)
c - (90)
d - (800)
e - 700
f 3,000 -
Adjusted 228,770 228,770

JOB ORDER COSTING

45. D
46. C
47. C
48. D
49. A
50. B
51. C

38. C

17,500 105,000 52. A

332,500 147,000 COGS: 2,040,000 + 52,000* = 2,092,000
111,475 5,250 (OH-C: 700K) – (OH-A: 648K) = 52,000*
122,500 227,500
5,250 525 Sales 3,600,000
26,250 17,500 COGS (2,092,000)
87,500 OPEX (900,000)
615,475 590,275 NI 608,000
25,200 Loss 53. C

PROCESS COSTING
HOME OFFICE AND BRANCH ACCOUNTING
54. A
39. C
55. C
40. C
56. D
41. B
57. B
42. C
58. A
43. B
JOINT AND BY-PRODUCT COSTING

59. B
60. A
61. A
62. C
63. B
64. A
65. C
66. D
WIP 120,000
NRV (5,000)
Main 115,000
EI (15,000)
COGS 100,000
JIT AND BACKFLUSH COSTING 93. B
45 – 46 = 1 X 10K = 10,000 Loss
67. A
50 – 46 = 4 x 10k = 40,000 Loss
68. C
50,000
69. C
94. A, 0 → 4,000
RIP FG
38,700 12,000
S -X 11/1/25 12/31/25 1/31/26
680,000 676,800 676,800 678,800
IV 0 4,000 3,000
41,900 10,000
TV 300 500 0
70. B
FV 300 4,500 3,000
JOINT ARRANGEMENT
95. B, 300 → 500 = 200
71. A 96. C, 4,000 → 3,000 = Loss 1,000
72. C 97. D, 0 → 3,000 x 70% = 2,100
73. C 98. D
74. D 500 → 0 = Loss 500
75. C 0 → 3000 x 30% = Gain 900 = 400 Gain
Land- A 3,000,000
Inventory(60%) 600,000 BUSINESS COMBINATION
3,600,000
99. A
76. A
100. C
NP 1,000,000
101. D
AP 800,000
102. B
1,800,000
103. A
77. B
Shares (10k x 20) 200k
Sales rev of C 5M
BP (500k x 1.1) 550k
Unearned Sales of A (700k) → 1M X 70%
750k
Unearned Sales of B (800k) → 2M X 40%
FVNA 700k
3.5M x 60% = 2.1M
GW 50K
78. A
104. B – ARC = 40K + 30K = 70K
JV
105. C
2,000,000
Entity A 3M
4M X 30% 1,200,000 720,000 2.4M X 30%
800K X 30% 240,000 Entity B 1.8M
2,720,000 GW 50K
ARC (120K) → 10K + 20K + 70
4.75M
FOREX AND DERIVATIVES
CONSOLIDATION (PFRS 10)
79. A
80. D 106. A
81. A, C 107. B
82. D 108. A
83. B 109. A
84. C 110. A
85. A 111. C
86. A – 1,500 X 39 = 58,500 112. C
87. C – 1,500 X 45 = 67,500 113. A
88. D – 1,000 X 47 = 47,000 114. A
89. A – 10M X 4 = 40M 115. B
90. D 116. D
A 10M X 4 40,000,000 117. A
L 5M X 4 = 20M
SC 2M X 2 = 4M
RE 3M X 3 = 9M (33,000,000)
Credit 7,000,000
91. A, 3M X 3 = 9M
92. C, 51 – 48 = 3 X 10K = 30,000
 118. A IFRS 15
119. B
142. D
143. C
144. D

LONG-TERM CONSTRUCTION CONTRACTS (LTCC)

145. A
146. D
120. B 147. D
COS- X 3,015,000 148. C
COS- Y 1,755,000 149. B
WPEE (275,000) 150. C
4,495,000 151. B
121. A
122. D
123. C
124. B
125. D

FRANCHISES

152. C
153. C
154. B
155. C
156. B
157. A

CONSIGNMENT SALES

158. A
159. C
160. D
161. D
NON-PROFIT ORGANIZATIONS 162. A

126. C
127. D
128. C
129. C
130. D
131. A
132. C
133. A
134. B

GOVERNMENT ACCOUNTING MANUAL

135. C
136. A
137. G
138. E
139. A
140. D
141. A