The Mercy Sales Co. employs the perpetual inventory basis in its accounting for new cars. On August 15, 2021 a new car was sold to Rose Castro with a list price of P220,000 costing P165,000. It granted Ms. Castro an allowance of P85,000 for her old car as trade-in, the current value of which was estimated to be P81,700. The balance of P135,000 was payable as follows: Cash at the time of purchase - P35,000; balance in 20 monthly payment of P5,000, first payment being made on September 1,2021. On April 1,2022, Ms. Castro defaulted in the payment of March 1,2022 installment. The new car sold was reposed; its value to the seller is P40,000/ (use 2 decimal places for gross profit percentages). What is the total realized gross profit on installment sales in 2021 and gain/(loss) on repossession in 2022?*

1 point

P32,617 and P(15,811)

P32,617 and P(13,298)

P37,889 and P(13,298)

P87,966 and P13,298

The Bengal Furniture Company appropriately used the installment sales method in accounting for the following installment sales. During 2018, Bengal sold furniture to an individual for P3,000 at a gross profit of P1,200. On June 1, 2018, this installment account receivable had a balance of P2,200 and it was determined that no further collections would be made. Bengal therefore repossessed the merchandise. When reacquired, the merchandise was appraised as being worth only P1,000. In order to improve its salability, Bengal incurred costs of P100 for reconditioning. What should be the loss on repossession attributable to this merchandise?*

1 point

P220

P1,100

P880

P320

The Cindy owns the Highest crown in Dipolog City and a branch in Dapitan City. During 2021, the home office shipped to the branch supplies costing P120,000 at a billed price of 20% above cost. The inventories of supplies at the branch were as follows: January 1, 2021 - P90,000; December 13, 2021 - P108,000. On December 31, 2021, the home office holds inventories of P160,500 which includes P10,500 held on consignment. Both locations use the periodic inventory method. How much is the inventories in a combined balance sheet as of December 31, 2021?*

1 point

P240,000

P300,000

P210,000

P270,000

S, D, R and P are partners sharing earnings in the ratio of 3/21. 4/21, 6/21 and 8/21, respectively. The balances of their capital accounts on December 31,2011 are as follows: S - P1,000; D - P25,000; R - P25,000 and P - P9,000. The partners decide to liquidate and they accordingly convert the noncash assets into P23,200 cash. After paying the liabilities amounting to P3,000, they have P22,200 to divide. Assume that a debit balance in any partner's capital is uncollectible. After the P22,200 was divided, what is the capital balance of D?*

1 point

P3,200

P17,800

P4,500

P3,920

The following data were ascertained for the month of November in the Statement of realization and liquidation of ZEROBALANCE Corp.: Estate equity at the end of October was (P18,500). Liabilities not paid at the end of October were P310,000. Liabilities assumed were P36,500. Assets to be realized in December were P23,500. Liabilities to be paid in December were P30,800. Supplementary credits and charges were P100,800 and P28,750 respectively. Estate equity at the end of the month was (P12,450).What are the assets to be realized for the month?*

1 point

325,000

288,000

263,100

300,100

A, B and C decided to form ABC Partnership. It was agreed that A will contribute an equipment with assessed value of P200,000 with historical cost of P1,600,000 and accumulated depreciation of P1,200,000. A day after the partnership formation, the equipment was sold for P600,000.B will contribute a land and building with carrying amount of P2,400,000 and fair value of P3,000,000. The land and building are subject to a mortgage payable amounting to P600,000 to be assumed to be assumed by the partnership. The partners agreed that B will have 60% capital interest in the partnership. The partners also agreed that C will contribute sufficient cash to the partnership. What is the total agreed capitalization of the ABC Partnership?*

1 point

6M

5M

3M

4M

The balance sheet as of September 30, 2019, for the partnership of D, E and F shows the following information: Assets, P360,000; D, loan, P20,000; D, capital, P83,000; E, capital, P77,000; F, capital, P180,000. It was agreed among the partners that D retires from the partnership, and it was also further agreed that the assets should be adjusted to their fair value P345,000 as of September 30, 2019. Net loss prior to the retirement of D amount to P70,000. The partnership is to pay D P62,000 cash for D's partnership interest, which would include the payment of his loan. D, E and F share profit 40%, 15% and 45% respectively. After D's retirement, what is F's capital balance?*

1 point

185,250

66,000

136,500

147,000

Dragon and Nest are partners with capital balances of P60,000 and P140,000, respectively. Dragon has a 30% interest in profits and losses. At this time, the partnership has decided to admit Tiger and Cat as new partners. Tiger contributes cash of P110,000 for a 20% interest in capital and a 30% interest in profits and losses. Cat contributes cash of P20,000 and and equipment for a 25% interest in capital and a 35% interest in profits and losses. If bonus amounting to P36,500 is given to the old partners, what is the value of the equipment contributed by Cat?*

1 point

100,276

63,500

100,000

87,500

On July 1, 2020, Mcgreen Inc., a franchisor, entered into a contract with a franchisee for the operation of a restaurant. The franchise agreement provides that the franchisee shall pay a non-refundable upfront franchise fee amounting to P2,500,000 with P500,000 payable at the signing of contract and the balance payable in five equal semi-annual instalments every December 31 and June 30. The franchisee issued a non-interest bearing note with effective interest rate of 10%. The present value of the note receivable is P1,731,791. The collection of the note receivable is unlikely. The franchise agreement further provides for the payment of on-going royalties equivalent to 3% based on franchisee's sales revenue.During 2020, Mcgreen Inc. has substantially performed the direct cost of services required by the franchise in the amount of P1,785,433. In the same year, Mcgreen Inc. has also incurred indirect cost amounting to P10,000. For the years 2020 and 2021, the franchisee has reported sales revenue amounting to P400,000 and P600,000, respectively. What is the net income to be reported by Mcgreen Inc. for the year ended December 31, 2021?*

1 point

529,574

278,307

517,579

378,307

On July 1, 2020, Mcgreen Inc., a franchisor, entered into a contract with a franchisee for the operation of a restaurant. The franchise agreement provides that the franchisee shall pay a non-refundable upfront franchise fee amounting to P2,500,000 with P500,000 payable at the signing of contract and the balance payable in five equal semi-annual instalments every December 31 and June 30. The franchisee issued a non-interest bearing note with effective interest rate of 10%. The present value of the note receivable is P1,731,791. The collection of the note receivable is unlikely. The franchise agreement further provides for the payment of on-going royalties equivalent to 3% based on franchisee's sales revenue.During 2020, Mcgreen Inc. has substantially performed the direct cost of services required by the franchise in the amount of P1,785,433. In the same year, Mcgreen Inc. has also incurred indirect cost amounting to P10,000. For the years 2020 and 2021, the franchisee has reported sales revenue amounting to P400,000 and P600,000, respectively. What is the net income to be reported by Mcgreen Inc. for the year ended December 31, 2020?*

1 point

278,307

251,272

291,470

236,870

A, B and C decided to form ABC Partnership. It was agreed that A will contribute an equipment with assessed value of P200,000 with historical cost of P1,600,000 and accumulated depreciation of P1,200,000. A day after the partnership formation, the equipment was sold for P600,000.B will contribute a land and building with carrying amount of P2,400,000 and fair value of P3,000,000. The land and building are subject to a mortgage payable amounting to P600,000 to be assumed to be assumed by the partnership. The partners agreed that B will have 60% capital interest in the partnership. The partners also agreed that C will contribute sufficient cash to the partnership. What is the cash to be contributed by C in the ABC Partnership?A. 1,000,000*

1 point

1.6M

1.4M

1M

1.2M