1. Presented below is information pertaining to ABC Co.:

Cost Retail

Inventory, January 1 21,750 35,000

Purchases 138,250 200,750

Freight In 5,000---------

Purchases Discounts 1,250---------

Purchases Returns 13,000 21,500

Departmental Transfers-In (Debit) 2,500 3,750

Departmental Transfers-Out (Credit) 2,000 3,000

Markups 15,000

Markup Cancellation 5,000

Markdown 30,000

Markdown Cancellations 7,500

Abnormal Spoilage (Theft and Casualty Loss) 12,500 17,500

Sales 109,500

Sales Returns 6,250

Sales Discounts 2,500

Employee Discounts 1,250

Normal Spoilage (Shrinkage and Breakages) 500

How much is the ending inventory under the Average Cost Method?

A.60,000

B.62,400

C.61,050

D.Answer not given

E.60,750

2. Jam Co. has the following data related to an item of inventory:

Inventory, March 1 200 units @4.20

Purchase, March 7 00 units @4.40

Purchase, Mach 16 140 units @4.50

Inventory, March 31 300 units

The value assigned to cost of goods sold if Jam uses FIFO is

A. 3,270

B. ANSWER NOT GIVEN

C. 3,216

D. 1,280

E. 1,334

3. Transactions for the month of June were:

Purchases sales

June 1(balance) 1,200 @ 3.20June 2 900 @ 5.50

June 3 3,300 @3.10 June 6 2400 @5.50

June 7 1,800 @3.30 June 9 1,500 @5.50

June 15 2,700 @3.40 June 10 600 @6.00

June 22 750 @3.50 June 18 2,100 @6.00

June 25 450 @6.00

Assuming that perpetual inventory records are kept in pesos, the ending inventory on a FIFO basis is

A. P5,700

B. Answer not given

C. P6,300

D. P6,195

E. 5,760

4. ABC Co. showed the following balances on December 31, 2018:

Accounts Receivable P2,000,000

Allowance for doubtful accounts (60,000)

The following transactions transpired for ABC Company during the year 2016:

a. On May 1, received a P300,000, six-month, 12% interest bearing note from Ed, a Customer in settlement of an account.

b. On June 30, factored P400,000 of its accounts receivable to a finance company. The finance company charged a factoring fee of 5% of the accounts factored and withheld 20% of the amount factored.

C. On August 1, ABC discounted the Ed Note at the bank at 15%.

d. On November 1, Ed defaulted on the P300,000 note. ABC company paid the bank the total amount due plus a P12,000 protest fee and other bank charges.

e. On December 31, ABC Company assigned P600,000 of its accounts receivable to a bank under a non-notification basis. The bank advanced 80% less a service fee of 5% of the accounts assigned. ABC Company signed a promissory note for the loan.

f. On December 31, ABC collected from Ed in full including interest on total amount due at 12% since default date.

g. On December 31, it is estimated that 5% of the outstanding accounts receivable may prove uncollectible.

Question: Amount of cash received on August 1 discounting.

Select the correct response

A. P306,075

B. P318,000

C. P300,000

D. Answer not given

E. P329,925

5. Jerry Company had the following account balances on December 31,2020:

Petty cash fund = 25,000

Cash on Hand = 250,000

Cash in bank-current account = 2,000,000

Cash in bank- payroll account 500,00

Cash in bank- restricted account for plant addition for disbursement in early 2021 =250,000

Cash in sinking fund set aside for bond payable, due June 30,2021 = 750,000

Time deposit = 1,000,000

The petty cash fund included unreplenished December 2020 PCF vouchers of 2,500 and employee IOUs of 2,500 .

The cash on hand included a 50,000 check payable to the entity dated January 31,2021

What total amount should be reported as Cash and Cash equivalents on December 31,2020?

A.3,970,000

B.4,470,000

C.Answer not given

D.3,470,000

E.3,720,000

6. On January 1, 20x1, Entity A had the following general borrowings. A part of the proceeds was used to finance the construction of a qualifying asset.

Principal

12% bank loan (1.5 years) 1,000,000

10% bank loan (3-year) 8,000,000

Expenditures made of the qualifying asset were follows:

Jan. 1 5,000,000

March 1 4,000,000

Aug 31 3,000,000

Dec 1 2,000,000

Construction was completed on December 31, 20x1. How much borrowing costs are capitalized to the cost of the constructed qualifying assets?

A. Answer not given

B. 1,026,667

C.1,045,000

D.971,111

E. 920,000

7. The following information pertains to ABC's long-term marketable equity securities portfolio:

December 31, 2017 December 31, 2016

Cost P200,000 P200, 000

Fair Value 240,000 180,000

Differences between cost and fair values are considered to be temporary. The decline in market value was properly accounted for at December 31, 2016. At December 31, 2017, what is the net realizable holding gain or loss to be reported as:

A. Answer not given

B. OCI: P0; Accumulated OCI: P0

C. OCI: P20,000; Accumulated OCI: P20,000 loss

D. OCI: P40,000; Accumulated OCI: P60,000 gain*

E. OCI: P60,000; Accumulated OCI: P40,000 gain

8. ABC Company had trading and non trading investments held throughout 2016 and 2017. The non trading investments are measured at fair value through other comprehensive income. The investments had a cost of 3,000,000 for trading and 3,000,000 for non trading. The investments had the following fair value at the year-end:

December 31,2016 December 31,2017

Trading 4,000,000 Trading 3,800,000

Non Trading 3,200,000 Non Trading 3,700,000

What amount of unrealized gain or loss should be reported in the income statement for 2017?

A. 200,000 loss. -

B. 200,000 gain

C. 300,000 loss

D. 300,000 gain

E. Answer not given

9. ABC Co. showed the following balances on December 31, 2018:

Accounts Receivable P2,000,000

Allowance for doubtful accounts (60,000)

The following transactions transpired for ABC Company during the year 2016:

a. On May 1, received a P300,000, six-month, 12% interest bearing note from Ed, a Customer in settlement of an account.

b. On June 30, factored P400,000 of its accounts receivable to a finance company. The finance company charged a factoring fee of 5% of the accounts factored and withheld 20% of the amount factored.

C. On August 1, ABC discounted the Ed Note at the bank at 15%.

d. On November 1, Ed defaulted on the P300,000 note. ABC company paid the bank the total amount due plus a P12,000 protest fee and other bank charges.

e. On December 31, ABC Company assigned P600,000 of its accounts receivable to a bank under a non-notification basis. The bank advanced 80% less a service fee of 5% of the accounts assigned. ABC Company signed a promissory note for the loan.

f. On December 31, ABC collected from Ed in full including interest on total amount due at 12% since default date.

g. On December 31, it is estimated that 5% of the outstanding accounts receivable may prove uncollectible.

Question: Amount paid on November 1 default on the P300,00 note.

A. answer not given

B. P336,600

C. P318,000

D. P312,000

E. P330,000.

10. ABC Company acquired building on January 1, 2016 for 9,000,000. At that date, the building had a useful life of 30 years. On december 31,2016 the fair value of the building was 9,600,000 and on Dec 31,2017, the fair value is 9,800,000. The building was classified as an investment property and accounte for under the fair value model.

What amount should be carried in the statement of finacial position and recognized in profit or loss in 2017?

A. CA:8.4M; P/L:300,000 expense

B. CA:9M; P/L:800,000 gain

C. CA:8.7M; P/L:300,000 expense

D. CA:9.8M; P/L:200,000 gain

11. Light Company bought a machine for 300,000 on January 1, 20x8. The machine's useful life is 10 years and it is estimated to have a zero residual value and is depreciated using a straight-line method.

The revalued amount of the machine is as follows:

December 31 Fair values of the machines

20x8 360,000

20x9 335,000

2x10 320,000

The enacted tax rate was 30% for each year.

The revaluation surplus in the equity section of Light Company's December 31, 2x10 statement of financial position is:

A. Answer not given

B. 123,443

C.109,500

D.77,000

E. 110,000

The amount of revaluation surplus transferred to retained earnings in 20x9 is

A. answer not given

B. P10,000

C. P7,000

D. P6,667

E. P4,333

12. The following information pertains to ABC's long-term marketable equity securities portfolio:

December 31, 2017 December 31, 2016

Cost P200,000 P200, 000

Fair Value 240,000 180,000

Differences between cost and fair values are considered to be temporary. The decline in market value was properly accounted for at December 31, 2016. At December 31, 2017, what is the net realizable holding gain or loss to be reported as:

A. Answer not given

B. OCI: P0; Accumulated OCI: P0

C. OCI: P20,000; Accumulated OCI: P20,000 loss

D. OCI: P40,000; Accumulated OCI: P60,000 gain

E. OCI: P60,000; Accumulated OCI: P40,000 gain