Afar 2 Quizzes Acgsbdjxjcudhdh

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AFAR-2- Quizzes - Acgsbdjxjcudhdh
Accounting Information System (Tarlac State University)
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Quiz # 1 Topics covered: Partnership Formation and Operations

Item 1-9.On July 1, 2020, AA and BB decided to form a partnership. The firm is to take over business assets
and assume liabilities, and capitals are to be based on net assets transferred after the following adjustments:
a. AA and BB's inventory is to be valued at P62,000 and P44,000, respectively.
b. Accounts receivable of P4,000 in AA's books and P2,000 in BB's books are uncollectible.
c. Accrued salaries of P8,000 for AA and P10,000 for BB are still to be recognized in the books.
d. Unused office supplies of AA amounted to P10,000, while that of BB amounted to P3,000.
e. Unrecorded patent of P14,000 and prepaid rent of P9,000 are to be recognized in the books of AA and BB,
respectively.
f. AA is to invest or withdraw cash necessary to have a P40% interest in the firm.
Balance sheets for AA and BB on July 1 before necessary adjustments are given below:
AA BB
P62,000 P100,000 Cash
52,000 40,000 Accounts Receivable
64,000 48,000 Inventory
- 10,000 Office Supplies
40,000 48,000 Eqpt.
(18,000) (6,000) Acc. Dep'n - Eqpt.
P200,000 P240,000 Total Assets
P56,000 P40,000 Accounts Payable

144,000 200,000 Capitals
P200,000 P240,000 Total Liab. & Capital
Solution: AA BB
Unadj capital 144,000 200,000
Inventory (2,000) (4,000)
A/R (4,000) (2,000)
Accrued (8,000) (10,000)
Office supplies 10,000 7,000
Patent 14,000
Prepaid rent - 9,000
Adjusted capital 154,000 186,000
1.The net capital adjustment in the book of AA is a net credit of 1,000

Adjusted (AA) 154,000
Unadjusted (144,000)
Adjustment 1,000
2. The net capital adjustment in the book of BB is a net debit of 14,000
Adjusted (AA) 186,000
Unadjusted (200,000)
Adjustment (14,000)
3. The additional investment made by AA 0

4. The withdrawal made by AA is 3,000
186,000/60% = 310,000*40% =24,000 TAC- 154,000 TCC = 30,000 withdrawal
5. How much is the total assets of the partnership after formation? 424,000

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Total liablities 114,000

Total capital 310,000
Total assets 424,000
6. How much is the total liabilities of the partnership after formation? 114,000,
Accrued (8,000+10,000) 18,000
A/P 96,000
Total 114,000
7. How much is the total capital of the partnership after formation? 310,000
AA capital 124,000
BB capital 186,000
Total capital 310,000
8. The capital balance of AA in the combined balance sheet is? 124,000

9. The capital balance of BB in the combined balance sheet is? 186,000
10. A = Total Capital before admission

B = Total Capital after admission
C = New Partner’s Agreed Capital
D = New Partner’s Contributed Capital
E = Old Partners’ Capital before admission
F = Old Partners’ Capital after admission
Assuming the new partner was admitted by way of purchase, with assets being revalued before
admission, which may be true?
A<B and F>E
A
A=B and C=D
A=B and F
Your answer to question 10 is wrong. Correct answers: A<B and F
Item 11-14. DD and EE was organized and began operations on March 1, 2019. On that date, DD invested
P150,000 and EE invested land and building with current fair value of P80,000 and P100,000, respectively. EE
also invested P60,000 in the partnership on November 1, 2019 because of its shortage of cash. The
partnership contract includes the following remuneration plan:
Annual Salary
DD: P18,000
EE: P24,000
Annual interest on average capital:

DD: 10%
EE: 10%
Remainder:
DD: 60%
EE: 40%
The annual salary was to be withdrawn by each partner in 12 monthly installments. During the fiscal year
ended, February 28, 2020, DD and EE had net sales of P500,000, cost of goods sold of P280,000, and total
operating expenses of P100,000 (excluding partners' salaries and interest on average capital account
balances). Each partner made monthly cash drawings in accordance with partnership contract.

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11. The share of partner DD in the net income is 58,800

12. The share of partner EE in the net income is 61,200
13. The capital balance of DD on March 1, 2020 should be 190,800
14. The capital balance of DD on March 1, 2020 should be 277,200
Solution: DD EE TOTAL
Salaries 18,000 24,000 42,000
Interest 15,000 20,000 35,000
Remainder 25,800 17,200 43,000
Share 58,800 61,200 120,000
Item 15-18. FF and GG are partners in a merchandising business. During 2020, they withdrew their salary
allowances of P80,000 and P120,000, respectively. Profits and losses are shared in the ratio of 3:2. The
Income Summary account has a credit balance of P240,000 before any income allocation. Their capital
accounts reflect the following:
For FF:
Beg. Balance. : P100,000

Additional Investments: P60,000
Withdrawals other than for salary allowances: P20,000
For GG:
Beg. Balance. : P60,000

Additional Investments: P80,000
Withdrawals other than for salary allowances: P30,000
15. The share of partner FF in the net income is 104,000

16. The share of partner GG in the net income is 136,000
17. The capital balance of partner FF on December 31, 2020 after closing the Income Summary account
and withdrawal accounts is 164,000
18. The capital balance of partner GG on December 31, 2020 after closing the Income Summary account and
withdrawal accounts is 126,000
Solution:
FF GG total
Salaries 80,000 120,000 200,000
Remainder 24,000 16,000 40,000
Total share 104,000 136,000 240,000
FF GG
Beginning 100,000 60,000
Additional 60,000 80,000
Withdrawal (20,000) (30,000)
Share 140,000 110,000
Add 104,000 136,000
Withdrawal (80,000) (120,000)
Balance164,000 126,000
Item 19-20. WW and RR share profits and losses equally. WW and RR receive salary allowances of P20,000
and P30,000 respectively, and both partners receive 10% interest on their average capital balances. Average

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capital balances are calculated at the beginning of the following month regardless of when the capital
contributions and capital withdrawals were made, and partners’ drawings are not used in determining the
average capital balances. Total net income for 2011 is P120,000.
WW RR
January 1 capital balances 100,000 120,000
Yearly drawings (1,500 a month)
Permanent withdrawal-June 3 (12,000)
Permanent withdrawal- May 2 (15,000)
Additional investment-July 3 40,000
Additional investment- October 2 50,000
19. What is the weighted average capital of WW? 110,667

Solution:
Capital, Jan (100,000*12/12) 100,000
Withdrawal (12,000*6/12) (6,000)
Additional (40,000 * 5/12) 16,667
Weighted average capital 110,667
20. What is the weighted average capital of RR? 119,583

Solution:
Capital, Jan (120,000*12/12) 120,000
Withdrawal (15,000*7/12) (8,750)
Additional (50,000 * 2/12) 8,333
Weighted average capital 119,583
Quiz # 2 - Topics covered: Partnership Dissolution and Liquidation

Item 1-3. LL and QQ are partners with capital balances of P50,000 and P70,000, respectively,
and they share profits and losses equally. The partners agree to take DD into the partnership for
a 40% interest in capital and profits, while LL and QQ each retain a 30% interest. DD pays
P60,000 cash directly to LL and QQ for his 40% interest, and total revaluation of asset (or
goodwill implied) by DD's payment is recognized on the partnership books.
1. If LL and QQ transfer equal amounts of capital to DD, the capital balance of LL after DD's
admittance will be 35,000 (50,000+15,000-30,000)
2. If LL and QQ transfer equal amounts of capital to DD, the capital balance of QQ after DD's
admittance will be 55,000 (70,000+15,000-30,000)
3. If LL and QQ transfer equal amounts of capital to DD, the capital balance of DD after her
admittance will be 60,000
Solution: Amount paid 60,000
Interest 40%
Implied 150,000
TCC (120,000)
Goodwill 30,000
Entry: Goodwill 30,000
Llcapital 15,000
QQ capita 15,000
LL capital 30,000
QQ capital 30,000

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DD capital 60,000
4.The following condensed balance sheet is presented for the partnership of AA and BB, who
share profits and losses in the ratio of 6:4, respectively:
Cash P 67,500
Other Assets 937,500
BB, Loan 45,000
Total P1,050,000
Acc. Payable P180,000

AA, capital 522,000
BB, capital 348,000
Total P1,050,000
The assets and liabilities are fairly valued on the balance sheet. AA and BB decide to admit CC
as a new partner with 20% interest. No bonus or goodwill is to be recorded. What amount
should CC contribute or invest in cash or other assets? 217,500
Solution:
AA Capital 522,000
BB capital 348,000
Total 870,000
Divide by 8%
TAC 1,087,500
Interest of CC x20%
217,500
Item 5-6.In the AD partnership, Allen's capital is P140,000 and Daniel's is P40,000 and they
share income in a 3:1 ratio, respectively. They decided to admit David to the partnership. David
directly purchases a one-fifth interest by paying Allen P34,000 and Daniel P10,000. The land
account is increased before David is admitted.
5. By what amount is the land account increased? 40,000
Amount paid(34,000+10,000) 44,000
Less: BV of interest (36,000)
Excess 8,000
Divide by 1/5
40,000
6. What is the amount of inventory written down? 20,000

TAC (40,000*5) 200,000
Less: contrib of new 40,000
Capital before 160,000
Capital contrib (180,000)
Write down 20,000
Item 7-12. The following are the capital account balances and the profits and loss ratio of the
partners in Motorola Company on December 31, 2020:
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Capital P/L ratio

MM P120,000 25%
TT 160,000 50%
RR 400,000 25%
On January 1, 2021, LL is admitted to the partnership under the following agreement:

a. LL is to share 1/3 in the profits and loss while the other partners continue to participate in
profits and loss ratio in their original ratio.
b. LL is to pay TT, P48,000 for a 1/4 interest of the latter's equity in the partnership net assets
and is to invest P280,000 cash in the partnership.
c. LL's capital account after the admission is to show P300,000 and the total capital is
P1,040,000.
7. The capital account balance of MM after LL's admission is 145,000

8. The capital account balance of TT after LL's admission 170,000
9. The capital account balance of RR after LL's admission is 425,000
10. The new profit and loss ratio for MM after LL's admission is 17%
11. The new profit and loss ratio for TT after LL's admission is 33%
12. The new profit and loss ratio for RR after LL's admission is 17%
Solution: TCC TAC

MM 120,000 120,000 145,000 25,000 25%*2/3=17%
TT 160,000-40,000 120,000 170,000 50,000 50%*2/3=33%
RR 400,000 400,000 425,000 25,000 25%*2/3=17%
Total 680,000 640,000 780,000 100,000
LL 280,000+40,000 320,000 300,000 (20,000)
TOTAL 960,000 960,000 1,040,000
Item 13-15. On December 31, 2020, the accounting records of MM, NN, and OO Partnership ( a
general partnership) included the following ledger account balances:
(Dr) Cr
MM, drawing (P30,000)
OO, drawing ( 11,250 )
NN, loan 37,500
MM, capital 153,750
NN, capital 125,625
OO, capital 135,000
Total assets of the partnership amounted to P598,125, including P65,625 cash, and the
partnership liabilities totaled, P187,500. The partnership was liquidated on December 31, 2020,
and OO received P104,062 cash pursuant to the liquidation. MM, NN, and OO shared net income
and losses in a 5:3:2 ratio, respectively.

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13. The loss on realization is 98,440

14. The amount realized from sale of non-cash assets is 434,060
15. The cash balance after payment of liabilities 312,185
Item 16-18. Following is the balance sheet of DD, EE and FF Partnership (a general partnership)
on July 1, 2020, immediately prior to its liquidation:
Assets:
Cash P 12,000
Other Assets 188,000
Total P200,000
Liabilities and Capital
Liabilities P 40,000
EE, loan 8,000
DD, capital 54,000
EE, capital 78,000
FF, capital 20,000
Total P200,000
The partners shared net income and losses as follows: DD, 40% ; EE, 40% ; FF, 20%. On July
1, 2020, the other assets were realized at P61,400, and P41,000 had to be paid to liquidate the
liabilities because of an unrecorded trade accounts payable of P1,000. DD and EE were solvent,
but FF's personal liabilities exceeded personal assets by P10,000.
16. How much would DD receive? 200

17.How much would EE receive? 32,200
18. How much would FF receive? 0
Item19-20.A balance sheet for the partnership of Tree, Nee, and Dad who share profits in the
ratio of 2:1:1, shows the following balances just before the liquidation:
Cash P 12,000
Other Assets 59,500
Liabilities 20,000
Tree, capital 22,000
Nee, capital 15,500
Dad, capital 14,000
On the first installment of the liquidation, certain assets are sold for P32,000. Liquidation
expense of P1,000 are paid, and additional liquidation expenses are anticipated. Liabilities are

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paid amounting to P5,400, and sufficient cash is retained to insure the payment to creditors
before making payment to partners. On the first payment to partners, Tree receives P6,250.
19. The total cash payment to partners in the first installment amounted to 20,000
20. The amount of cash withheld for anticipated liquidation expenses and unpaid liabilities
amounted to 17,600
Solution:
Cash (12,000+32,000) 44,000
Less: payment (5,400)
Liquidation (1,000)
Net 37,600
Unpaid liab 17,600
Cash available 20,000
Quiz # 3 - Home office and branch accounting & Corporate liquidation

1.Nova Corporation operates a number of branches in the provinces. On December 31, 2020, its
Davao branch showed a Home Office account balance of P54,700 and the home office books
showed an Investment in Davao Branch account balance of P51,100. The following information
may help in reconciling both accounts:
1. A P24,000 shipment, charged by Home Office to Davao Branch, was actually sent to
and retained by Cebu Branch.
2. A P30,000 shipment, intended and charged to Aklan Branch was shipped to Davao
Branch and retained by the latter.
3. A P4,000 emergency cash transfer from Cebu Branch was not taken up in the Home
Office books.
4. Home office collects a Davao Branch accounts receivable of P7,200 and fails to notify
the branch.
5. Home office was charged for P2,400 for merchandise returned by Davao Branch on
December 30. The merchandise is in transit.
Home office erroneously recorded Davao Branch's net income for 2020 at P32,550. The branch
reported a net income of P25,350. What is the adjusted balances of the Home Office and Davao
Branch reciprocal accounts on December 31, 2020? 47,500
Solution H.O Book Branch book

Investment H.o
Unadjusted balance 51,100 54700
(1) (24,000) (7,200)
(2) 30,000
(4) (7,200)
(5) (2,400)
Adjusted Balance 47,500 47,500
2.Tarlac Company bills its Pampanga Branch for merchandise at P140% of cost. At the end of
February 2021, the branch reported the following information:
Inventory, beginning: P7,560
Shipments received: P28,280
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Inventory, ending: P8,400
All amounts given above are stated at billed price.

What should be the balance of the allowance account for overvaluation of the branch inventory
at February 28 before adjustment? 10,240
Solution Allowance
Ending Balance 2,400 2,160 Beginning balance
Realized 7,840 8,080 Current shipment
10,240
Item 3-4. Bulacan Branch was billed by Home Office for merchandise at 140% of cost. At the
end of its first month, Bulacan Branch submitted among other things, the following data:
Merchandise from Home Office (at billed price): P98,000
Merchandise purchased locally by Branch: P40,000
Inventory, December 31, of which P7,000 are of local purchase: P28,000 Net sales for the
month: P180,000
3. The ending balance of branch inventory at cost is 22,000

Solution:
Local 7,000
From HOC (21,000/140%) 15,000
Ending balance 22,000
4.The gross profit of the branch as far as the home office is concerned is 92,000
Solution:
Net Sales 180,000
Less:
Beg. Inventory -
Purchase 40,000
Shipment from 70,000
Less: ending inventory (22,000) (88,000)
Gross profit 92,000
Item 5-15 TGIF Corporation operates a branch in Cebu City. Selected accounts taken form the
books of TGIF and its branch show balances as of December 31, 2020 as follows:
Home Office Branch
Merchandise inventory, Jan. 1 ₱12,000 ₱8,000
Purchases 150,000 30,000
Shipments from home office - 93,750
Shipments to branch 75,000 -
Allowance for overvaluation 19,750 -
Sales 115,000 176,500 Merchandise inventory, Dec. 31
14,000 10,350
Operating Expenses 25,000 33,000

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The ending inventory of the branch includes items costing P4,350 which were acquired from
suppliers other than the home office. There were no shipments in transit
5. The billing price based on cost imposed by the home office to the branch is _____%? 125%
Solution: Shipment from = 93,750 = 125%
Shipment to 75,000
6.How much of the beginning inventory came from outside purchases? 3,000
Solution: Allowance
Ending balance 1,200 1,000 Beginning balance
Realized 18,550 18,750 Shipment from
19,750 19,750
Beginning 8,000
Shipment from HO (1,000 beg/125%) (5,000)
From outside 3,000
7.How much is the beginning inventory at cost? 7,000
Solution: Outside Purchase 3,000
5,000/125% 4,000
Beg. At cost 7,000
8.As far as the home office is concerned, the cost of sales of Cebu City branch is 102,850
Solution:
Beginning at cost 7,000
Add: Purchases 30,000
End [4,350+ (6,000/125%)] (9,150)
Cost of sales 102,850
9.How much is the ending inventory at cost? 9,150

Solution: [4,350 + (6,000/125%)] = 9,150
10.How much is the ending balance of allowance for overvaluation account? 1,200
Allowance
19,750 19,750
11.How much is the realized profit from inventory shipments? 18,550

Allowance
19,750 19,750
12.As far the branch is concerned, its net income is 22,100

solution:
Sales 176,500
Less: COGS
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Beginning inventory 8,000

Purchase 30,00
Ending inventory (10,350) 121,400
Gross Profit 55,100
OPEX (33,000)
Net income 22,100
13.As far as the home office is concerned, the net income of Cebu City branch is 40,650
Solution:
Net income 22,100
Add: Realized Profit 18,550
True income 40,650
14.The net income of the home office is 17,000

Solution:
Sales 115,000
Less: COGS
Beginning inventory 12,000
Purchases 150,000
Shipment to (75,000)
Ending balance (14,000 (73,000)
Gross Profit 42,000
OPEX (25,000
Net income of H.O 17,000
15.The combined net income of the home office and the branch (true net income) is 57,650
Solution:
Net income of H.O 17,000
True income of Brance 40,650
Combined net income 57,650
16.The following data are presented by Vigan Company:

Assets at book value: P1,000,000
Assets at NRV: P750,000
Liabilities at book value:
Fully secured mortgage: P400,000
Unsecured accounts and notes payable: P450,000
Unrecorded liabilities:
Interest on bank notes: P2,500
Estimated administrative expense: P40,000
The Statement of Affairs at this time should include an estimated deficiency to unsecured
creditors of 142,500
Solution:
Asset at NRV 750,000
Less: fully secured (400,000)
Without priority (40,000)
Net free assets 310,00
Recovery % = 310,000/452,500 = 68.51%

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Deficiency = [1-(310,000/452,500)] * 452,500 = 142,500
Item 17-23 The statement of affairs for the Passed Company contained the following relevant
information:
Assets pledged with fully secured creditors: P1,000,000

Assets pledged with partially secured creditors: P500,000
Free assets: P600,000
Unsecured liabilities with priority: P100,000
Fully secured liabilities: P800,000
Partially secured liabilities: P750,000
Unsecured liabilities without priority: P900,000
All assets are stated at net realizable values. The estimated recovery percentage of unsecured
creditors without priority is ____%? (Round off to two decimal places) 60.87%
Solution: Recovery % = 700,000 . . = 60.87%
(900,000 +250,000)
18.The estimated deficiency to unsecured creditors is 450,000
Solution: 1,150,000 * [1- (700,000/1,500,000) = 450,000
19.The amount paid to unsecured liabilities with priority is 100,000

20.The amount paid to fully secured liabilities is 800,000
21.The amount paid to partially secured liabilities is (round off to nearest peso amount) 652,174
Solution: Partially Secured
500,000 * 100% 500,000
250,000 * (700,000/1,150,000) 152,174
Total partially secured liab 652,174
22.The amount paid to unsecured liabilities without priority is (round off to nearest peso
amount) 547,826
Solution: 900,000 * (700k/1,500k) = 547,826
23.How much are the net free assets? 700,000

Solution:
Assets fully pledged 1,000,000
Assets partially pledged 500,000
Free Assets 600,000
Total Asset 2,100,000
Less: fully secured (800,000)
Partially secured (500,000)
Unsecured w/0 priority (100,000)
Net free asset xb

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Item 24-25 Zero Corp. has been undergoing liquidation since January 1. As of March 31, its
condensed statement of realization and liquidation is presented below:
Assets:
Assets to be realized P 1,375,000
Assets realized 1,200,000
Assets not realized 1,375,000
Assets acquired 750,000
Liabilities:
Liabilities assumed P 1,625,000
Liabilities liquidated 1,875,000
Liabilities to be liquidated 2,250,000
Liabilities not liquidated 1,700,000
Revenues and Expenses:

Supplementary charges P 3,125,000
Supplementary credits 2,800,000
24. Compute the ending cash balance assuming that common stock and deficits are P1,500,000
and P500,000 respectively. 1,325,000
Solution:
Common stock 1,500,000
Deficit (500,000)
1,000,000
Add: liab not liquidated 1,700,000
Total 2,700,000
Less: asset not realized (1,375,000)
Cash, end 1,325,000
25.The net gain on liquidation is 425,000

Solution
1,375,000 1,200,000
750,000 1,375,000
1,875,000 1,625,000
1,700,000 2,250,000
3,125,000 2,800,000
8,825,000 9,250,000
(8,825,000)
425,000 gain
BSA 3A - AFAR 2 - Quiz 1 - Final

1.As per PFRS 15, which statement/s should be met in order that a good or service that is
promised to a customer will be considered distinct? Statement I. The customer can benefit from
the good or service either on its own or together with other resources that are readily available

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to the customer. Statement II. The entity's promise to transfer the good or service to the
customer is separately identifiable from other promises in the contract.Single choice.
(1/1 Point)
Both statements
Statement I only
Statement II only
Either of the statements
2.An entity shall combine two or more contracts entered into at or near the same time with the
same customer (or related parties of the customer) and account for the contracts as a single
contract if
the amount of consideration to be paid in one contract depends on the price or performance of the other contract
All of the foregoing
the contracts are negotiated as a package with a single commercial objective
the goods or services promised in the contracts are a single performance obligation
Either of the foregoing
Item 3-8.Casio Construction Company has consistently used the percentage-of-completion

method. On January 10, 2011, Casio began work on a P6,000,000 construction contract. At the
inception date, the estimated cost of construction was P4,500,000. The following data relate to
the progress of the contract.
Income recognized at 12/31/2011: P600,000
Cost incurred 1/10/2011 through 12/31/2012: P3,600,000
Estimated cost to complete at 12/31/2012: P1,200,000
3. The percentage of completion as of 12/31/2011 is _____%? 40%

% of completion = CITD/TEC
= 1,800,000/4,500,000 = 40%
4. How much is the cost incurred in 2011? 1,800,000
5. How much is the cost incurred in 2012? 1,800,000
6. How much income should Casio recognize for the year ended 12/31/2012? 300,000
7. The percent completed in 2012 was? 35%
(75% as of 2012-40% on 2011) = 35% on 2012
8. What is the balance of the Construction in Progress account as of 12/31/2012? 4,500,000
Solution:
Cost incurred as of 2012 3,600,000
Construction profit (600k+300k) 900,000
CIP as of 12/31/2012 4,500,000
Given: 2011 2012

Cost incurred ? (1,800,000) ?(1,800k) (3,600,000) -assuming na equal)
Estimated cost ? 1,200,000
Solution: 2011 2012

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CP 6,000,000 6,000,000
% 40% 75%
CRTD 2,400,000 4,500,000
CITD (1,800,000) (3,600,000)
C P/L TD 600,000 900,000
C P/L PY - (600,000)
C P/L CY 600,000 300,000
Item 9-11.KJT Builders entered into a contract to build a small bridge for the city of Tarlac. The
contract price for the bridge was P7,500,000 and KJT estimated a total costs of P6,900,000 in
2019. The company incurred P2,300,000 of costs during 2019. By the end of 2020, it was
apparent that KJT had underestimated the real costs. The estimated total costs of the project
skyrocketed to P7,800,000. Construction costs incurred in 2020 totaled P4,000,000. The project
was completed in 2021 at a final costs of P7,800,000. No progress billings were made under the
contract and no cash was collected by the end of 2020.
9. The profit recognized in 2019 is 200,000
10. The loss that must be recognized in 2020 is 500,000
11. The loss that must be recognized in 2021 is? 0
GIVEN 2019 2020

Cost incurred 2,300,000 ?
Estimated cost 6,900,000 ? (2011-2012 = 7,800,000)
Solution: 2019 2020 2021

Construction price 7,500,000 7,500,000 7,500,000
% of completion 33.33% (2,300k/6,900k) - 100%
CRTD 2,500,000 - 7,500,000
CITD (2,300,000) -
C P/L TD 200,000 (300,000) 7,800K-7500K probable loss
C P/L PY - (200,000)
C P/L CY 200,000 (500,000)
12.The objective of the disclosure requirements in PFRS 15 is for an entity to disclose sufficient
information to enable users of financial statements to understand the nature, amount, timing
and uncertainty of revenue and cash flows arising from contracts with customers. To achieve
that objective, an entity shall disclose qualitative and quantitative information aboutSingle
choice.
(1/1 Point)
its contracts with customers
all of the foregoing
the significant judgements and changes in the judgements, made in applying the standard to those contracts
any assets recognized from the costs to obtain or fulfil a contract with a customer

lOMoARcPSD|34960251
Item 13-17.X Builders Inc. employs cost-to-cost method in determining the percentage of
completion for revenue recognition. The company’s records show the following information on a
recently completed project for a contract price of P5,000,000.
2010 2011 2012
P900,000 P2,550,000 P ? Cost incurred to date
100,000 350,000 (50,000) Gross profit
13. How much is the balance of the construction in progress account as of December 31, 2011?
3,000,000
Solution:
CITD 2,550,000
GP for 2 yrs (100,000+350,000) 450,000
Gross Profit 3,000,000
14. As of December 31, 2010, the percentage of completion is? 20%

% of completion= 1,000,000/5,000,000 -20%
15. How much is the estimated cost to complete the project at December 16, 2011? 1,700,000
% of completion = CITD/TEC
60%= 2,550,000/x
x = 2,550,000/60%
x = 4,250,000
2011 estimated cost 4,250,000

less: 2010 CID (2,550,000)
Actual cost incurred 1,700,000
17. How much is the actual cost incurred during the year 2012? 2,050,000
CITD 2012 4,600,000
CITD 2011 (2,550,000)
Actual cost, 2012 2,050,000
Solution 2010 2011 2012

Construction Price 5,000,000 5,000,000 5,000,000
% of completion *20% 60% 100%
CRTD 1,000,000 3,000,000 5,000,000
CITD (900,000) (2,550,000) (4,600,000)
C P/L TD 100,000 450,000 400,000
C P/L PY - (100,000) (450,000)
C P/L CY 100,000 350,000 (50,000)
18.Jason Construction Inc. has consistently use the percentage of completion method of
recognizing income. During 2020, Jason started work on a P3,000,000 fixed-price construction
contract. The accounting records disclosed the following data for the year ended December 31,
2020:
Cost incurred: P930,000
Estimated cost to complete: P2,170,000

lOMoARcPSD|34960251
Progress billings: P1,100,000

Collections: P700,000
How much loss should Jason recognize in 2020? 100,000
Total estimated cost of 3,100,000(2,170k + 930,000) is greater than the construction price
Construction price 3,000,000
Total estimated cost 3,100,000
Probable loss (100,000)
13. When determining the transaction price, an entity shall consider the effects ofSingle choice.
(1/1 Point)
variable consideration
significant financing component in the contract
all of the foregoing
non-cash consideration
Item 19-20.Altec Builders began operations on January 1, 2011. During the year, Altec Builders
entered into a contract with Energy Star Company to construct a manufacturing facility. At that
time, Altec Builders estimated that it would take five years to complete the facility at a total cost
of P4,800,000. The contract price for construction of the facility is P5,800,000.
During 2011, Altec Builders incurred P1,250,000 in construction costs related to the project.
Because of rising material and labor costs, the estimated cost to complete the contract at the
end of 2011 is P3,750,000. Energy Star Company was billed for and paid 30% of the contract
price in accordance with the contract agreement. It is further agreed, that any costs incurred is
expected to be recoverable.
19. Compute the amount of Progress Billings (net) - due to customers under the percentage of
completion method. 290,000
Solution 2011
Construction price 5,800,000
% of completion 25% [1,250,000/(1,250k+3750k)]
CRTD 1,450,000
CITD (1,250,000)
C P/L TD 200,000
C P/L PY -
C P/L CY 200,000
Amount received(30%*5,800,000) 1,740,000

CIP balance (1,250,000+200,00) (1,450,000)
Progress billings (net) 290,000
20. Compute the amount of Progress Billings (net) - due to customers under the cost recovery
method.490,000
Amount received(30%*5,800,000) 1,740,000
CITD (1,250,000)
Progress Billings (net) 490,000

lOMoARcPSD|34960251
BSA 3A - AFAR 2 - Quiz # 2 - Final Term (BSA 3A - AFAR 2)

Topics Covered: Franchise Accounting and Consignment
Item 1-3.On October 1, 2020, Octagon Company consigned 30 Apple computer units, costing P80,000 each,
to Techzone, Inc. The units were to be sold on either cash or credit basis at a commission of P15% of net
sales. The consignor paid freight of P18,000 on the shipment. On October 11, the consignee received the
goods. Sales were made as follows:
October 15: 10 units for cash at P130,000 each.
October 22: 12 units on account at P140,000 each.
On October 30, 2020, a sales allowance of P20,000 was given to a charge customer for a defective unit. On
November 10, 2020, a receivable balance of P70,000 was determined to be uncollectible. On November 11,
2020, the consignee made the proper remittance.
1.The amount due from Techzone, Inc. is 2,446,000
Solution:
Sales (140,000 units*12) + (130,000*10) 2,980,000
Less: Sales allowance 20,000
Doubtful accounts 70,000
Commission (2,980,000-20,000)*15% 444,000 (534,000)
Amount due from Techzone 2,446,000
2. The cost of inventory on consignment is 644,800 (use the unsold units)

Solution: Sales inventory
Cost 1,760,000 (22 units*80k) 640,000[(30*80k)-(22*80k)
Freight 13,200 (22/30 *18,000) 4,800[18,000-(22/30*18k)]
Sales allowance 20,000 -
Doubtful accounts 70,000 -
Commission 444,000(2,980k-20k)*15% -
Cost of inventory 2,307,000 644,800
3. The consignment profit or loss is 672,800 (use the sold units)

Solution: Consignment sale(140,000 units*12) + (130,000*10) 2,980,000
Less: cost & exp.
1,760,000
13,200
20,000
70,000
444,000 2,307,000
Consignment profit 672,800
4. On January 1, 2020, Federrer Inc. signed an agreement authorizing Sculptured Body works to operate as a
franchisee over ten years period for initial franchise fee of P 100,000 when the agreement was signed.
Sculptured Body works commenced operations on August 1, 2020, at which date all the initial services
required of Federrer had been performed. The agreement also provides that Sculptured Body works must
pay annually to Federrer a continuing franchise fee equal to 5% of the revenue of the franchise. Sculptured
Body works sales revenue for 2020 was P 800,000. For the year ended December 31, 2020, how much
should Federrer as revenue from franchise fee? 140,000
Solution:
Initial 100,000
(800,000*15%) 40,000
revenue 140,000

lOMoARcPSD|34960251
Item 4-5.Rex Company consigned five computer equipment, with cost of P8,000 each, to the SM Appliance
Store which was to sell these goods for the account and risk of the former for a commission of 15% of
selling price. Rex Company paid trucking costs of P2,000 on the shipment. Correspondingly, SM Appliance
Store paid P3,200 on the freight of the shipment.
On the last day of the year, SM Appliance Store reported that it sold three of the computers: two for cash at
P15,000 each and one on credit at P18,000 of which 25% was collected as down payment. SM Appliance
Store remitted all the cash due.
4. The amount of inventory on consignment of Rex Company is 18,080 (use unsold units)
solution:
Cost(2 units *8,000) 16,000
Trucking cost (2/5*2,000) 800
Freight (2/5*3,200) 1,280
Inventory 18,080
5. The amount remitted by SM Appliance Store is 24,100

Solution:
Collection
Cash (15,000*2) 30,000
Credit (18,000 * 25%) 4,500
Total Collection 34,500
Less: charges:
Freight 3,200
Commission (30k +18k)*15% 7,200 (10,400)
Total Remmittance 24,100
6. Consignment Income 13,680 (use sold units)

Solution:
Consignment sales [(2*15,000)+18,000)] 48,000
Less: cost
cost(3*8,000) 24,000
freight (3/5*3,200) 1,920
truck(3/5*2,000) 1,200
commission (30k+18k)*15% 7,200 (34,320)
Consignment income 13,680
Item 7-8.On August 1, 2020, JBL, Inc. consigned to Migs Store 10 ladies handbags costing P3,000 each,
paying freight charge of P3,000. At the end of the month, Migs Store reported sales of 6 handbags at P6,000
each and expenses incurred of P2,500, and remitted the net proceeds due to JBL after deducting a 20%
commission.
7. What is the total cost of inventory of unsold handbags? 13,200

Solution: Cost (4*3,200) 12,000
Freight out (4/10 *3,000) 1,200
Cost of inventory 13,200
8. How much net income did JBL realize in August on the consignment? 6,500
Solution:
Consignment sale (6,000*6) 36,000
Less: Consignor
COGS (3,000*6) 18,000
Freight (3,000*6/10) 1,800

lOMoARcPSD|34960251
Consignee
Expense 2,500
Commission (20%*36k) 7,200 (29,500)
Net income 6,500
Items 8-9 On December 31, 2013, SONA Company authorized NOY to operate as a franchisee for an initial
franchise fee of P 3,000,000. Of this amount, P 1,200,000 was received upon signing of contract and the
balance payable by a non interest bearing note, due in three annual payments of P 600,000, beginning
December 31, 2014. The collectability of the note is not reasonably assured. The market rate of interest is
18%. (use two decimal places for present value factor).
Round off final answer to the nearest peso amount.
8. On December 31, 2013, SONA Company should recognize revenue from franchise of?) 0 (zero) because
collectability is not reasonably assured
9. How much is the unearned interest on December 31, 2014? 263,640
Solution:
Notes payable (3M-1,200,00) 1,800,000
PV of (600,000*2.17) 1,302,000
Total 498,000
Interest earned (1,302,000*18%) (234,360)
Unearned interest on 2014 263,640
10.ASD Inc. enters into an agreement with ZXC Co., granting the latter with full authority to operate as its
franchisee for a period of 10 years. An initial franchise fee of P280,000, among others, was stipulated in the
contract and was promptly paid during the year.
Assuming that ASD Inc. was able to perform substantial services during the year, what is the revenue to be
recognized in its year end income statement? 280,000
11.On September 30, 2020, Criselda Inc. received from ABC Company P560,000 representing franchise fee.
Franchise services were immediately started by Criselda Inc. and these were completed on October 31, 2020
at cost amounting to P330,000. The revenue to be reported by Criselda in 2020 is 560,000
12.Rage Against The Machine charges an initial franchise fee of P 75,000 for the right to operate as a
franchise of Speed Racer. Of this amount, P 25,000 is collected immediately. The remainder is collected in
four equal annual installment payments of P 12,500 each. These installments have a present value of P
39,623. There is reasonable expectation that the down payment may be refunded and substantial future
services are yet to be performed by Rage Against The Machine.
How much should be recognized as revenue in the current year? 0 (ZERO)
15.JFC charges an initial franchise fee of P70,000. Upon the signing of the agreement that covers 3 years, a
payment of P28,000 is due. Thereafter, three annual payments of P14,000 are required. The credit rating of
the franchisee is such that it would have to pay interest at 10% to borrow money. The franchise agreement
is signed on May 1, 2020, and the franchisee commences operation on July 1, 2020. No future services are
required by the franchisor. Round off present value factors to 4 decimal places. Final answer must be
rounded off to the nearest peso amount.
How much should be recognized as revenue from franchise in 2020? 62,816
Solution:
Downpayment 28,000
PV of note (2.4869*14000) 34,816.6
Total 62,816

lOMoARcPSD|34960251
BSA 3A - AFAR 1 - Quiz # 3 - Final Term Topics covered: Foreign Currency

Transaction and Translation
1. A foreign subsidiary of Derick Corporation has certain balance sheet accounts at December 31,2020.
Information relating to these accounts in Philippine peso is as follows:
Translated at
Current Rates Historical Rates
Marketable securities at cost 65,000 75,000
Inventories at average cost 500,000 550,000
Patents 80,000 85,000
645,000 710,000
What total amount should be included in Derick’s December 31,2020 consolidated balance sheet for the
above accounts if the subsidiary’s foreign operation operates independently or foreign operations is not
integral to the parent’s operations?645,000
Solution:
Marketable securities 65,000
Inventory 500,000
Patents 80,000
Total 645,000
2. Property was purchased on December 31, 2018 for 2,000,000 baht. The general price index in the country
was 60.1 on that date. On December 31, 2020, the general price index had risen to 240.4. If the entity
operates in a hyperinflationary economy and ignoring depreciation, what would be the carrying amount in
the financial statements of the property after restatement? 8,000,000
Solution: 2,000,000 * (240.4/60.1) = 8,000,000
Items 3-4. Hizon Holdings, Inc. is a parent company of a group of companies, but also does its own trading.
It bought a fixed asset for $36,000 on November 1, 2020 when the exchange rate was $1.00 = P23.00. At
December 31, 2020, the company's year-end, the supplier of the fixed asset has not been paid and the
exchange rate at that time was $1.00 = P25.00. The company has not taken out a forward exchange
contract for this payment as hedge against adverse exchange rate movements.
3. On the balance sheet of Hizon Holdings, Inc., what will be the value for the liability? 900,000
4. On the balance sheet of Hizon Holdings, Inc., what will be the value for the asset? 828,000
Solution: 36,000 * 23= 828,000
5. A wholly owned subsidiary of WXC Company has certain expense accounts for the year ended December 31, 2020,
state in local currency units (LCU) as follows:
LCU
Depreciation of equipment (acquired 1/1/2018) 120,000
Provision for doubtful accounts 80,000
Rent 200,000
The exchange rates at various dates are as follows:

Peso equivalent of 1 LCU
December 31, 2020 0.40
Average for year ended 12/31/20 0.44
January 1, 2018 0.50
Assume that the LCU is the subsidiary’s functional currency. The charges to expense account occurred approximately
evenly during the year. What total peso amount should be included in WXC’s consolidated income statement to reflect
these expenses? 176,000
Solution:

lOMoARcPSD|34960251
Depreciation (120,000 *0.44) 52,800

Provision for DA (80,000*0.440) 35,200
Rent (200,000*0.44) 88,000
Total peso amount 176,000
Items 6-9. During June and July 2020, Petron Company (which reports on a calendar year basis and issues quarterly
financial statements) had the following transactions with foreign businesses:
Date Nature of transaction Billing currency Exchange rate (direct)

Vendor A:
6/15/20 Imported merchandise
costing 10,000 euros
from French
manufacturer Euros P65
7/15/20 Paid entire amount
owed P62
Customer A:
6/20/20 sold merchandise
for 20,000 real to a
Brazilian retailer Real P23
7/15/20 Received full payment P22
On June 30, 2020,the spot rate for euros was P64 and for real was P22.60
6. What is the foreign exchange gain on June 30, 2020 arising from the French manufacturer? 10,000
Solution: 10,000 * (65-64) = 10,000
7. What is the foreign exchange loss on July 15,2020 arising from the Brazilian
retailer? 12,000
Solution: 20,000 * (22.60-22) = 12,000 loss
8. What is the foreign exchange gain on July 15,2020 arising from the Brazilian
retailer? 0 (ZERO)
9. What is the foreign exchange loss on June 30, 2020 arising from French
manufacturer? 0 (ZERO)
10. Property was purchased on December 31, 2018 for 2,000,000 baht. The general price index in the
country was 60.1 on that date. On December 31, 2020, the general price index had risen to 240.4. The
following exchange rates per baht were available on the following dates:
12/31/18: P1.20
Average for 2018: P1.15
12/31/19: P1.22
12/31/20: P1.25
If the entity operates in a hyperinflationary economy and ignoring depreciation, what would be the
translated peso amount in the consolidated balance sheet on December 31, 2020? 10,000,000
Solution: 8,000,000 * 1.25 = 10,000,00
Items 11-13. On September 3, 2020, EG Company place a non-cancellable purchase order with a Japanese
company for a custom-built machine. The contract price was 1,000,000 yens. The machine was delivered on
December 23, 2020. The invoice was dated November 13, 2020, the shipping date (FOB Shipping point). The
vendor was paid on January 7, 2021. The spot rates for the Japanese yens on the respective dates are as
follows:

lOMoARcPSD|34960251
September 3, 2020: P0.20

November 13, 2020: P0.21
December 23, 2020: P0.22
December 31, 2020: P0.23
January 7, 2021: P0.24
11. What is the reported value of the payable to the vendor at December 31, 2020? 230,000
Solution: (0.23*1,000,000) = 230,000
12. What is the capitalizable cost of the equipment? 210,000
Solution: (1,000,000 * 0,21) = 210,000
13. What is the reportable foreign exchange loss amount in EG Company’s income statement? 20,000
Solution: 1,000,000 * (0.23-0.21) = 20,000
14. On May 1, 2020, MC Company purchase an original painting of Leonardo Da Vinci for 100,000 French
Francs, payable in 30 days. On May 1, the spot rate is P6.26 to 1 French franc and the 30 day forward rate is
P6.50 per French franc. On May 30, when the bill is paid, the spot rate is P6.70 per French franc. The cost of
the drawing should be recorded at 626,000
Solution: 100,000*6.26 = 626,000
Items 15-16. Certain balance sheet accounts in a foreign subsidiary of Rose Company at December 31,2020
have been stated into Philippine pesos as follows:
Translated at
Current Rates Historical Rates
Account receivable, short term 200,000 250,000
Account receivable, long term 100,000 120,000
Prepaid insurance 55,000 60,000
Goodwill 85,000 75,000
440,000 505,000
15. This subsidiary’s functional currency is a peso. What total amount Rose’s balance sheet include for the
preceding items? 435,000
Solution:
A/R short term 200,000
A/R long term 100,000
Prepaid insurance 60,000
Goodwill 75,000
Total amount 435,000
16. This subsidiary’s functional currency is a foreign currency. What total amount of Rose’s balance sheet
include for the preceding items? 440,000
Items 17.-20. PF Corporation operates in a hyperinflationary economy. Its balance sheet at December 31,
2020, follows:
Baht
Property, plant and equipment 1,080,000
Inventory 3,240,000
Cash 420,000
Share Capital (issued 2016) 480,000
Retained Earnings 2,820,000
Noncurrent liabilities 600,000
Current liabilities 840,000

lOMoARcPSD|34960251
The general price index had moved in this way:

December 31
2016 100
2017 130
2018 150
2019 240
2020 300
The following exchange rates were available on the following dates
December 31
2016 1.20
2017 1.24
2018 1.27
2019 1.50
2020 1.75
The property, plant and equipment was purchased on December 31,2018 and there was six month’s
inventory held. The noncurrent liabilities were a loan raised on March 31, 2020.
17. The total assets after adjusting for hyperinflation should be: 6,180,000
18. The retained earnings after adjusting for hyperinflation should be: 3,300,000
19. The retained earnings on December 31,2020 as translated should be 5,775,000
20. The remeasurement gain to be recognized in the profit or loss for 2020 is 480,000
Solution:
Cash 420,000 1 420,000 1.75 735,000
Inventory 3,240,000 300/270 3,600,000 1.75 6,300,000
PPE 1,080,000 300/150 2,160,000 1.75 3,780,000
Total 4,740,000 6,180,000 10,815,000
CL 840,000 1 840,000 1.75 1,470,000

NCL 600,000 1 600,000 1.75 1,050,000
SC 480,000 300/100 1,440,000 1.75 2,520,000
RE 2,820,000 480,000 3,300,000 1.75 5,775,000
TOTAL 4,740,000 6,800,000 1.751 10,815,000
BSA 3A - AFAR 1 - Quiz # 4 -

Topic covered: Foreign currency transactions with hedging
Items 1-6. On October 12, 2020, GJ Company obtain a noncancellable sales order from a
Thailand firm for a custom-made statue. The contract price was 100,000 baht. On October 12,
2020, GJ Company entered into a foreign exchange forward to sell 100,000 baht in 100 days at
the forward rate of P3.15. The statue was delivered on December 11, 2020 and collection on
January 20, 2021.
Spot rate Forward rate

10/12/20 P3.20 P3.15
12/11/20 3.00 2.98
12/31/20 3.09 3.08
1/20/21 2.97 2.97

lOMoARcPSD|34960251
1. What was the net increase on GJ Company's December 11, 2020 income as a result of this
fair value hedge? 0 (zero)
2. What was the net decrease on GJ Company's December 11, 2020 income as a result of this
fair value hedge? 0 (zero)
3. On December 31, 2020, the foreign exchange gain or loss on the accounts receivable
amounted to: 9,000 gain (3.09-3.00)*100,000=9,000
4. On December 31, 2020, the foreign exchange gain or loss on the firm commitment amounted
to: 0 (zero)
5. On December 31, 2020, the foreign exchange gain or loss on the hedging instrument
(forward contract) amounted 7,000 gain (3.15-3.08)*100,000=7,000 gain
6. What was the net impact on January 31, 2021 income statement as a result of this fair value
hedge? 1,000 net loss
(3.08-2.97) *100,000 = 11,000 gain
((3.09-2.97)*100,000 = 12,000 loss
1,000 loss
Items 7-10On December 12, 2020, RTZ Company entered into three forward exchange contract,
each to purchase 100,000 foreign currencies (FC) in 90 days. The relevant exchange rates are
as follows:
Spot rate Forward rate
11/30/20 P0.87 P0.89
12/12/20 0.88 0.90
12/31/20 0.92 0.93
7. RTZ Company entered into the first forward contract to hedge a purchase of inventory in
November 2020, payable in March 2021. At December 31, 2020, what amount of foreign
currency transaction gain from the forward contract should be included on the income statement
of RTZ Company? 3,000 (0.90-0.93)*100,000=3,000 gain
8.At December 31, 2020, what amount of foreign currency transaction loss should RTZ
Company include in its income statement from the revaluation of the accounts payable of
100,000 foreign currencies (FCs) incurred as a result of the purchase of inventory at November
30, 2020, payable in 2021? 5,000 (0.87-0.92)*100,000=5,000 loss
9. RTZ Company entered into the second forward contract to hedge a commitment to purchase
equipment being manufactured to RTZ's specifications. The expected delivery date is March
2021 at which time settlement is due to the manufacturer. The hedge qualifies as a fair value
hedge. At December 31, 2020, what amount of foreign currency transaction gain from this
forward contract should RTZ include in net income? 3,000 (0.90-0.93)*100,000=3,000 gain
10. RTZ Company entered into the third forward contract for speculation. At December 31, 2020,
what amount of foreign currency transaction gain from this forward contract should RTZ include
in net income? 3,000 (0.90-0.93)*100,000=3,000 gain
11.On December 16,2020, GMP Company sold flowers to a Venezuelan firm. Payment of
1,000,000 Venezuelan Bolivar is due on February 14, 2021. Concurrently, GMP company paid
P4,000 cash to acquire a 60-day put option for 1,000,000 Venezuelan Bolivar. GMP Company
follows calendar basis for reporting.

lOMoARcPSD|34960251
12/16/20 12/31/20 02/14/21

Spot rate (market price 0.16 0.15 0.147
Strike price(exercise price) 0.16 0.16 0.16
Fair value of call option 4,000 13,300 13,000
11. What is the notional amount? 1,000,000 bolivar

12. What is the intrinsic value of the option on December 31,2020? 10,000
13. What is the time value of the option on December 31, 2020? 3,300
14. The foreign exchange gain or loss on option contract (hedging instrument) due to change in
time value on December 31,2020 if changes in time value will be excluded from the assessment
of hedge effectiveness should be: 700 loss (4,000-3,300)
15. The foreign exchange gain or loss on option contract (hedging instrument) due to change in
intrinsic value on December 31,2020 if changes in time value will be excluded from the
assessment of hedge effectiveness should be: 10,000 gain (0-10,000)
Solution: 12/16/20 12/31/20 2/14/21

Intrinsic value 0 10,000 13,000
Add: time value 4,000 3,300 0
Fair value 4,000 13,300 13,000
PARTNERSHIP FORMATION
1. On June 1, 2019, Clavis and Cularlus formed a partnership. Clavis is to invest assets at a fair value which
are yet to be agreed upon. She is to transfer her liabilities and is to contribute sufficient cash to bring her
total capital to P210 000 which is 70% of the total capital of the partnership. Details regarding the book
values of Clavis’ business assets and liabilities and their corresponding valuations are:
Book Values Fair Values Agreed Values
Accounts Receivable 58,000 58,000 58,000
Allow. For Doubt. Accts. 4,200 102,300 5,000
Merchandise Inventory 98,400 102,300
CONSTRUCTION ACCOUNTING
Problem 1
San Jose Construction receives a contract to build a building over a period of 3 years for a price of
P7,000,000. Information relating to the performance of the contract is summarized as follows:
2014 2015 2016
Construction cost incurred during the year 1,500,000 2,420,000 1,680,000 Under CRM
Estimated costs to complete 3,500,000 1,680,000 -
Billings during th
eyear 1,200,000 2,600,000 3,200,000
Collections during the year 1,000,000 2,700,000 3,300,000

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AFAR-2- Quizzes - Acgsbdjxjcudhdh

Accounting Information System (Tarlac State University)

Studocu is not sponsored or endorsed by any college or university

Quiz # 1 Topics covered: Partnership Formation and Operations

P56,000 P40,000 Accounts Payable

1.The net capital adjustment in the book of AA is a net credit of 1,000

3. The additional investment made by AA 0

Downloaded by jim hsjsjs (nsy739jk@nishii.tech)

Total liablities 114,000

8. The capital balance of AA in the combined balance sheet is? 124,000

10. A = Total Capital before admission

Annual interest on average capital:

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11. The share of partner DD in the net income is 58,800

Beg. Balance. : P100,000

Beg. Balance. : P60,000

15. The share of partner FF in the net income is 104,000

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19. What is the weighted average capital of WW? 110,667

20. What is the weighted average capital of RR? 119,583

Quiz # 2 - Topics covered: Partnership Dissolution and Liquidation

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Acc. Payable P180,000

6. What is the amount of inventory written down? 20,000

Capital P/L ratio

On January 1, 2021, LL is admitted to the partnership under the following agreement:

7. The capital account balance of MM after LL's admission is 145,000

Solution: TCC TAC

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13. The loss on realization is 98,440

Liabilities and Capital

16. How much would DD receive? 200

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Quiz # 3 - Home office and branch accounting & Corporate liquidation

Solution H.O Book Branch book

Inventory, ending: P8,400

All amounts given above are stated at billed price.

3. The ending balance of branch inventory at cost is 22,000

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9.How much is the ending inventory at cost? 9,150

11.How much is the realized profit from inventory shipments? 18,550

12.As far the branch is concerned, its net income is 22,100

Beginning inventory 8,000

14.The net income of the home office is 17,000

16.The following data are presented by Vigan Company:

Recovery % = 310,000/452,500 = 68.51%

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Deficiency = [1-(310,000/452,500)] * 452,500 = 142,500

Assets pledged with fully secured creditors: P1,000,000

19.The amount paid to unsecured liabilities with priority is 100,000

23.How much are the net free assets? 700,000

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Revenues and Expenses:

25.The net gain on liquidation is 425,000

BSA 3A - AFAR 2 - Quiz 1 - Final

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Item 3-8.Casio Construction Company has consistently used the percentage-of-completion

3. The percentage of completion as of 12/31/2011 is _____%? 40%

Given: 2011 2012

Solution: 2011 2012

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