#1 b. Accounting information is both quantitative and qualitative.

#2 a. Identifying
#3 d. Publicis accounting,
a. That private making.
useful for decision accounting, and government accounting
#4
#5 a. The revenue, expenses, and net income or loss for a period.
#6 d. Objective of financial reporting
#7 c. The objectives and concepts for use in developing standards of financial accounting and reporting
#8 d. Journal
#9 a. One nominal account and one real account
#10 c. Borrowing money by issuing a six-month note
#11 c. Cash equivalents will be converted to cash within 90 days.
#12 c. Imprest system
#13 b. Bad debt expense
#14 b. Increase asset
#15 a. R.A. No. 9298

#16
Cash Non-cash Liabilities A B
60,000 150,000 80,000 80,000 30,000
40,000 (150,000) (55,000) (22,000)
100,000 - 80,000 25,000 8,000
(80,000) (80,000)
20,000 - - 25,000 8,000
(9,286) (3,714)
20,000 - - 15,714 4,286
(20,000) (15,714) (4,286)
- - - - -

#17
Total Assets
Cash 50,000
Non-cash 160,000 210,000

Total Equity
A 70,000
B 30,000
C 50,000 150,000
Total liabilities 60,000

All available cash must be used to pay the liability. Note: The non-cash assets are not sold, and not to be presumed
Answer: 0

#18
Jeyms Nadyne Issa
 Initial 100,000 150,000 200,000
Investment
Net Income 29,000 63,000 58,000
(share)
Withdrawal (12,000) (12,000) (12,000)
Cap.
Balance12/31 117,000 201,000 246,000
/19

#19
Sales 70,000
Cost of Goods Sold (40,000)
Gross Profit 30,000
Operating Expenses (10,000)
Earnings before Interest and Taxes 20,000
Finance Cost (2,000)
Net Income 18,000

#20
Squeeze:
Contributed Property 25,000
Permanent Withdrawal (130,000)
Share to Net Income 45,000 *
Net Decrease (60,000)

*P45,000/30% (Elsa's interest to Net Income) = 150,000 (Partnership's Net Income)

#21
60% 40%
Edward Marco TOTAL
Salaries 90,000 60,000 150,000
Residual (60,000) (40,000) (100,000)
Share 30,000 20,000 50,000
Total salaries
and share 120,000 80,000 200,000

#22
Beginning Capital Balance (P50,000 x 10 months)
Balance after investment on 10/31/20 (75,000 x 2 months)

divide by months

Temporary withdrawals should not be considered in computing the amount of weighted average capital.
#23
Unadjusted cash and cash equivalents, 12/31/19 1,467,000
Time deposit that cannot be withdrawn until after 03/30/19 (338,300)
Customer NSF check (2,000)
Deposit in foreign bank - unavailable (130,000)
Overdraft in another bank 10,000
Time deposit in a closed loan association (30,000)
Cash advances to officers (24,000)
Adjusted cash and cash equivalents, 12/31/19 952,700

#24
Unadjusted cash and cash equivalents, 12/31/19 5,630,000
Customer postdated check (96,500)
Three certificates of deposit (250,000 x 3) (750,000)
Adjusted cash and cash equivalents, 12/31/19 4,783,500

#25
Coins and currency 2,800
Check drawn by the entity to the order
of the petty cash custodian 1,900
Correct amount of petty cash 4,700

#26
Petty cash fund, 03/30/19 5,000

Composition of petty cash fund:

Office supplies 7,820
Postage 3,640
Transportation expense 2,370
Cash short or over (shortage) 1,170
Coins and currency 5,000
Petty cash fund 20,000

#27
Cash balance per bank statement 3,250,000
Deposit in transit 1,300,000
Outstanding check (500,000-200,000) (300,000)
Adjusted bank balance 4,250,000
Customer note collected by bank for Dex (340,000)
NSF checks of customers returned by bank 170,000
Bank service charge shown in December bank statement 15,000
Error made by Dex in recording a check that cleared the bank in December 72,000
Cash balance per ledger 4,167,000

#28
Cash balance per ledger 920,000
Bank service charge (15,000)
NSF check (40,000)
Undeposited collections 35,000
Adjusted cash balance per ledger 900,000

#29
Balance per bank 187,387
Add: Deposit in transit 20,400
NSF Checks 1,191
Incorrect record 2,300
Service charge 19 23,910
Total 211,297
Less: Outstanding checks 50,645
Notes collected 8,684 (59,329)
Balance per book 151,968

#30
Balance per bank 50,000 Adjusted balance per bank
Add: Deposit in transit 20,000 Notes collected
Total 70,000 Service charge
Less: Outstanding checks 15,000 Balance per book
Adjusted balance per bank 55,000 Interest income

#31
Balance per bank - June 30 4,900,000
Total deposits - July 3,250,000
Total disbursements - July (4,500,000)
Balance per bank - July 31 3,650,000
Deposit in transit - July 31 600,000
Outstanding checks - July 31 (500,000)
Adjusted cash in bank - July 31 3,750,000

#32
Balance per bank - March 31 4,882,500
Bank deposits - April 6,132,000
Bank disbursements - April (5,218,500)
Balance per bank - April 30 5,796,000
Outstanding checks - April 30 (735,000)
Adjusted cash in bank - April 30 5,061,000

#33
Balance per bank - Nov 30 2,706,000
December bank deposits 3,915,000
December bank disbursements (3,363,000)
Balance per bank - Dec 31 3,258,000
Outstanding checks - Dec 31 (375,000)
Adjusted cash in bank - Dec 31 2,883,000

#34
Checks and charges by bank - Nov 412,500
Service charge - Nov (3,000)
NSF check redeposited - Nov (15,000)
Checks paid by bank - Nov 394,500

Total credits to cash in all journals during November 465,000

Service charge in October recorded in November (1,500)
Checks issued - November 463,500
Outstanding checks - Oct 31 172,500
Total checks to be paid by bank 636,000
Checks paid by bank in November (394,500)
Outstanding checks - Nov 30 241,500

#35
Accounts receivable, beg 648,200
Total credit sales for the year 4,780,000
Total collection for the year (2,240,000)
Accounts receivable, end 3,188,200
Allowance for doubtful accounts (159,410)
Net realizable value 3,028,790

#36
Aging of accounts receivable:
Not due (4,835,000 x 0%) 0
1-30 days past due (1,753,000 x 1%) 17,530
31-60 days past due (990,000 x 2%) 19,800
61-90 days past due (670,000 x 3%) 20,100
Over 90 days (245,000 x 8%) 19,600
Required balance of allowance 77,030

Required balance 77,030

Unadjusted allowance for doubtful accounts 65,000
Required adjustment 12,030

#37
Cash discounts:
May 8, 2020 (902,100/97%x3%) 27,900
May 10, 2020 (809,950/97%x3%) 25,050
 May 11, 2020 (620,800/97%x3%) 19,200
Total discount taken 72,150

#38
Accounts receivable, 12/31/20 167,000
NRV Accounts receivable, 12/31/20 120,500
Required allowance for doubtful accounts 46,500
Less: Allowance for doubtful accounts, 12/31/20
Beginning balance 23,000
Accounts written-off during the year (17,300)
Recovery of accounts written-off from prior year 6,500 12,200
Doubtful accounts expense, 12/31/20 34,300

#39
Date Annual Payment Interest Principal Carrying Amount
1/1/2020 6,000,000
12/31/2020 1,975,400 720,000 1,255,400 4,744,600
12/31/2021 1,975,400 569,352 1,406,048 3,338,552
12/31/2022 1,975,400 400,626 1,574,774 1,763,778
12/31/2023 1,975,400 211,653 1,763,747 32

#40
Principal amount 2,000,000
Origination fees received -200000
Direct origination costs incurred 52,262
Initial carrying amount of loan 1,852,262

Date Interest received Interest income Amortization Carrying Amount

5/1/2019 1,852,262
5/1/2020 180,000 203,749 23,749 1,876,011
5/1/2021 180,000 206,361 26,361 1,902,372
5/1/2022 180,000 209,261 29,261 1,931,633
5/1/2023 180,000 212,480 32,480 1,964,113
5/1/2024 180,000 216,052 36,052 2,000,165

#41
PV of the cash flows
12/31/2020 (500,000 x 0.9174) 458,700
12/31/2021 (1,500,000 x 0.8417) 1,262,550
Total present value of cash flows 1,721,250

Date Principal Payment Interest income Amortization Carrying Amount

12/31/2019 1,721,250
12/31/2020 500,000 154,913 345,088 1,376,163
 12/31/2021 1,500,000 123,855 1,376,145 17

#42
PV of the cash flows
12/31/2019 (500,000 x 1) 500,000
12/31/2020 (1,500,000 x 0.8929) 1,339,350
12/31/2021 (3,500,000 x 0.7972) 2,790,200
Total present value of cash flows 4,629,550

Carrying amount of loan 5,500,000

Present value of cash flows 4,629,550
Impairment loss 870,450

#43
Note receivable, 09/01/2020 2,400,000
Payment, 08/31/2021 (800,000)
Note receivable, 08/31/2021 1,600,000

#44
PV factor of ordinary annuity (10% for 3 years in advance) 2.7355 2.7355371901

Date Annual Payment Interest Principal Carrying Amount

12/31/2020 1,641,300
12/31/2021 600,000 0 600,000 1,041,300
12/31/2022 600,000 104,130 495,870 545,430
12/31/2023 600,000 54,543 545,457 -27

Face value (600,000 x 3) 1,800,000

Present value (600,000 x 2.7355) 1,641,300
Unearned interest income 158,700

#45
PV factor of 1 (12% for 5 years) 0.5674 0.5674268557

Date Unearned Interest Income Interest Income Carrying Amount

1/1/2020 3,244,500 4,255,500
12/31/2020 2,733,840 510,660 4,766,160
12/31/2021 2,161,901 571,939 5,338,099
12/31/2022 1,521,329 640,572 5,978,671
12/31/2023 803,888 717,441 6,696,112
12/31/2024 355 803,533 7,499,645

Face value 7,500,000

Present value (7,500,000 x 0.5674) 4,255,500
Unearned interest income 3,244,500

#46
Principal amount 3,000,000
Origination fees received (160,000)
Direct origination costs incurred 15,940
Initial carrying amount of loan 2,855,940

Date Interest received Interest income Amortization Carrying Amount

1/1/2020 2,855,940
1/1/2021 300,000 342,713 42,713 2,898,653
1/1/2022 300,000 347,838 47,838 2,946,491
1/1/2023 300,000 353,579 53,579 3,000,070

#47
Inventory shipped on consignment to Cristina Company 1,800,000
Freight paid by Meredith 90,000
Inventory, 12/31/20 1,890,000

#48
Direct Materials and Labor 180,000
Variable production overhead 25,000
Factory administrative costs 15,000
Fixed production costs 20,000
Total Product Cost 240,000

Note: Even if it is an administrative cost, if it's related to factory, it is a product cost. Factory administrative cost is a factory over

#49
Decrease in raw material inventory 55,000
Direct labor payroll 172,000
Factory overhead 93,000
Increase in work in process inventory (75,000)
Goods Manufactured 245,000

Effect of decrease in raw material inventory and increase in work in process inventory
Raw materials, beg 0 (assumed)
Purchases 335,000
Raw materials available for use 335,000
Raw materials, end (280,000) (decrease of 55,000: 335,000 - 55,000)
Raw materials used 55,000
Direct labor 172,000
Factory overhead 93,000
Total manufacturing costs 320,000
Work in process, beg 0 (assumed)
Goods held in process 320,000
Work in process, end (75,000) (increase of 75,000: 0 + 75,000)
Goods manufactured 245,000
Finished goods, beg 0 (assumed)
Goods available for sale 245,000
Finished goods, end 0 (assumed)
Cost of Goods Sold 245,000

#50
List Price 5,000,000
30% Trade discount (1,500,000)
Net of 30% Trade discount 3,500,000
20% Trade discount (700,000)
Invoice Price 2,800,000
2% Cash discount (56,000)
Net of Cash discount 2,744,000
Delivery cost shouldered in lieu of customer 200,000 Note: FOB Shipping point
Remittance from Shepherd 2,944,000
ccounting and reporting

C
20,000
(33,000)
(13,000)

(13,000)
13,000
-

re not sold, and not to be presumed sold.

rship's Net Income)

500,000
150,000
650,000
12
54,167
erage capital.
 Balance per book 151,968
Add: Notes collected 8,684
Total 160,652
Less: NSF Checks 1,191
Service charge 19 (1,210)
Adjusted balance per book 159,442

d balance per bank 55,000

(15,000)
6,000
(43,000)
3,000
 AR ADA
17,300 17,300 23,000
167,000 6,500
squeeze -> 46,500 12,200
120,500 34,300 <- squeeze
46,500

Interest Income
01/01/2020 - 05/01/2020 (203,749 x 4/12) 67,916
05/01/2020 - 12/31/2020 (206,361 x 8/12) 137,574
Interest Income, 2020 205,490
administrative cost is a factory overhead cost.
OB Shipping point
b. Accounting information is both quantitative and qualitative.
a. Identifying
d. Publicis accounting,
a. That private making.
useful for decision accounting, and government accounting

a. The revenue, expenses, and net income or loss for a period.

d. Objective of financial reporting
c. The objectives and concepts for use in developing standards of financial accounting and reporting
d. Journal
a. One nominal account and one real account
c. Borrowing money by issuing a six-month note
c. Cash equivalents will be converted to cash within 90 days.
c. Imprest system
b. Bad debt expense
b. Increase asset
a. R.A. No. 9298
15,714
0
246,000
18,000
150,000
200,000 or 120,000 and 80,000
54,167
952,700
4,783,500
4,700
5,000
4,167,000
900,000
159,442
3,000
3,750,000
5,061,000
2,883,000
241,500
3,028,790
12,030
72,150
34,300
3,338,552
205,490
1,376,163
870,450
1,600,000
1,041,300
571,939
2,898,653
1,890,000
240,000
245,000
2,944,000