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531 views18 pagesPRTC Far PDF
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© © All Rights Reserved
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/ 18
macs Acouiing snd Reporing
Natagenen Fi of Petes
Excel Professional Services, Ine.
an Tig Cre RTC)
- end of examination -
Please submit your answer sheet
Keep the questionnaire.
FIRST PRE-BOARD EXAMINATIONS . Thank you
for taking the PRTC Open Pre-Board Examinations! ©
FINANCIAL ACCOUNTING AND REPORTING
[Exam Cove
Exam Cade
{Date _
(Time —
‘of Questions | enya =
Meta ttt
1 een re oe
PSS, Bris ain
NsTRUCTION'
foronng questions
be
Eiieies
purpose of the IFRS Advisory Counc sto
2, The parnoss eec"Gpolication of International Accounting
Standaros
bee" imerational adoption of Intersational Accounting
‘Standards
cain users ond preparers. of accoutts and. so
Infvence the IASB in ther agenda decision.
4. Organize the tanding ofthe JAS.
5, Ths organization is dedicated to ensuring that the global
Iharkets con operate in an effcient and effective basis
pe terationel Financial Reporting Standards Foundation
Intemational Accounting Standards Boars
Financial Accounting Standards Board
4 Intemational Organization of Securities Commissions
4. Lakers Company received P12,000 from a tenant on
December 1 for four months’ rent of an office. This rent was
for December, January, February, and March. if Lakers
debited Cash and credited Rental Income for P12,000 09
December 1, the necessary adjustment December 31 wold
TT Fat save
aca
|
|
ean acorteng oa Regoteg
1 et to Rental teame of
‘cre omental Icore 1 25
2 ete Uneamed eal cat 9,009
‘ete to neared nate ee
Sancta arenes
ne St an ct tc eng de
Feit Sig ley eats ne pce
se ses aera on eA
Sects a oes se ena we 0
period
2. debits Supplies on Hand and credits Supplies Expen
9,000. cna
debits Supplies Expense and crests Supplies on a
Pi2.625. eles on Hand for
‘6 debits Supplies on Hand and cedts Supple Expense for
15,600. avant
1. debits Supplies Expense and rests Suoples on Hand
Pis,600. ™
6, Which statement is inomect regarding the Conceptual
Framework?
2. establishes the concepts thet underie nance
reporting.
b. TR's 9 coherent system of concepts that flow fom an
objective.
ls based on individual concepts developed by esch
member of the IASB,
4. None ofthe above
7. Which of ‘the following groups” of users of accounts Is
interested primarily inthe efficiency ofa company?
a. Management ‘Investors
B. Customers @. Lenders
8. According to the Conceptual Framework, the fundamental
Qualitative characteristic of relevance indudes
Ca
ere aaa Predict
Q an
& PredicnaltYs neutraise®b2Ck vay, :
gan linear
POFity ang mentary yest ay
aoe ince ;
feprecige hou
oe we aera rey tare coy
cing concen MEM Sea
+ Relevanns’ & Somparabitn,
@ Gee
0 infomation or
cee for next aust,
Sah ete on ee
adjusting Non's trial balance 9 December sit
cates or
Wages Poyane vee
Mortgage Payat Ne ae
Divides yale soo
repo ent ase
Inventory aan
Sinking Pung Assets sao
Short-Term Investments: 15,200
Prem am Sonar Se
Stock investment: ncaaste gga?
Taxes Pot eae
Accounts Poysbe See
‘counts RetenSie see.
10. The amount that should be reported as curent asets‘on
Zechariah Corporation's statement of financa portions
2. PI51,300 fe PI68 900
b. P217'300 4. 267,300
414, The amount that soul be reported carer bites on
Zechariah Corporation's statement of finane
anid Azur na Rsctng
a 91,800 Pe7,200
3. “P2380 4. 73,300
12, The general edger tral balance of Ki
Sales revenue
Icerest income
‘Share of prot of associates
‘tne income
Raw materials and consumes 20
Employee benefit expenses
{058 on translation of forelgnoperations
Deorecaton of
Imparment of proper)
| ‘other expences ~ =
Trcome tx expense
2. 8288;000
|B! Raestoon
financiel statements also aaiesed i
Depreciation
Increase in accounts recehvabie
Increase in inventory
Decrease in accounts payable
Increase i salaries payee
Dividends pia
| Purchase of equipment
| "Increase in long-term nee payable
| Decrease in inventories of fished goods
‘ond equipment
imbery Umited indies
the folowing accounts at December Shes
°375,000
20,008
25}000
5,000,
25.00)
350,000
‘50,009
© P213,000
6 83,000
23: yan CoMpany's Income statement for the year ended
ecember 2, 2018, reported net income of asin Sed
following information
» 20,000
0'000
40.000
48.000
6.000
28,000,
120/000,
150;000,
300,000 435.
ne cash
Tepes Broiled by
Ha ee 4
>. p04 "es for 2nng
000 oud be
© pay
Which 6 000
A contre etn can Pr.
eau 2 hat wr MSS 35 rang
entity eTeumens ang ge ted ne eae
oy tN ee ens ete
Contract te at stmeens °Y"26 mune
equity instrument alate eae
seat ase anes
entity's own equity
cB got e8URY instrament
. Neither a nor b
The cash account ef i
lint of Riyadh Corp. on December 3,208
a balance of 127,600 and kcensisar ne oaagae
Money order. os
Checking account balance in Bank of Pi
rect cash balance on December 31, 2018 of Kya
The
corp ae
a Prete 5 Rae
me:
b.
sera
nt Arig a6 Raa
Je cash account In the current asset section of the
16.1 Sent of financial postion of Grave Buster Company
SECU paance of 56,500,” 1 was found to include the
feliowing ems:
petty cash fund (PI00 iin the for of paid
‘youcners) 500
‘checking aecount balance in Philippine Trust
"Coanpany, per bank statement (2 P2,500 check is
siroutstandeo) awe 2
adepesited receps, including a post-dated check
for P500 12,000,
‘currencies and coins awating deposit 5,500
‘Bond sinking fund ~ cash 10,000,
(Check drawn by management, returned by bank
2,000
marked NSP
‘The correct cash balance for Grave Buster Compeny's
Statement of nancial postion is
‘a Pa3,000, c. pa2,400
b. P42,900 4. av,400
17,The cashier of Goblin Inc. prepared the following bank
reconciliation
‘Balance per bank 728,375
Deposits in transit:
32/30/18 4,500
esis 1528 6.025
34400
Outstanding checks
160 11/30/18 ———P2,200
21412268 ‘o75
29 ATA 850
Bs BASE 2,500,
25 ass 725 443.450)
20,950
Customer note collected by bank 6,000) ag
Ss
‘erroneously char, , =
100k balance 2
The aaj e
djusted cash ja e
2 MSEC nace sotonemy, «Bea
| ae crashes
18. ne August 31 bank tater m
Showea ct 19 adalion to the bank spre ie, ancerng
Ay Outstanding checks totaled 10.200, sed
gust 31 (enor a adjestmene
a Pi2L goo) eee
bd. P115,400 6. P1700
18. Certain formation
relative 10 the operation“ supes
Company foliows: Ms :
Accounts receivable, January 1
a00,000
Avcountrecelvable coliected 2,600,000
Cash sales 500,000
Tnventory, January 4,200,000
Inventory, December 31, 3/100,000,
Purchases = 2/000,000
Gross profit on sales ‘900,000,
What i the accounts receivable balance at December 31?
a. Pi,700,000 e200
5, P1,300,000
ans Aco ns Peron sera
20, Tanja, Ine had net sales in 2018 of £700,000. At December
i718, betore odjustng entries, the balances in selected
Secounts were! accounts receivable P125,000" debt, and
Sfowonce for doubtful aczourts 1-206" dente Tey
SHtimates that 2% of HS accounts receivable wil prove to be
Cincalectible. What ie the cash realzabie vaue of the
‘esevabies reported on the Stotement of financal poston at
‘December 31, 20187
109,600 p112,200
B. paizio00 3. 1221500
21, Lemonade Corporation had a 1/2/18 balance inthe Allowance
or boabtt Recounts of P10,000.. Curing 2036, t wrote
7,200 of accounts and collected. P2100. on accounts
rewously writen aff. The balance in Recounts Receivable
fas P200,000 at 3/1 and P246,000 at 12/91. At 32/34/18,
Tomanace esomates that Si of accounts receivable. wl
prove tobe uncollecible. What is Oaubtul Accounte Expéise
for 2018?
2,000
8. P70
© P9200
4. 12,000
22. Excel Company is a leading educational institution with
Student population of mare than 50,000. "Excel contnucusiy
‘maintains good qualty education and 9 roster of queliied
Drofessors.” As 2 recut, Excel continualsiy produces ep
‘Graduates in Several fields. As at December 31, Excl hos ah
Butstanding receivable bance of P23,250000 broken gown
Into: 0-60 days "outstanding, 79,000,000; 61-120 days
‘utstanding, 6,750,000; and’ over 120" daye outstanding,
7,500,000. “Estimated “percent neallecrble. of these
accounts is 1%, 2% and 6%, respectively. Excel wrote off
(525,000 of its! accounts recawabhe end recovered PS0,000
‘rom’ accounts. previously wten of In prior eat. As at
Aanuary 1, Excel has an llowance for unclleciie accounts
‘of P650,600.. Based on the aging) analy, Excel should
‘report doubtful accounts expense forthe yea
acres aE Rae 23. at %
De, 5 4
OF Decomr 35, 4. Fstow
interast’900 in & Gar’, ORden i)
Maturity ME of 19" £0 Cart King ordeg
Infort ree yesceMt the, pens 8M har Pn
ica REY King S2"S. ang” PAMCRal ia het
Making a4 Indicate’ y2PeHencr © ail
©2Sh Flow wepeyMent te wing are Moy
W Schedul % loan officer cag
SPATE the fight
Date Contractuat =
3231/1. Cashion — Exbecte
12329 Poa BRE
Ait 10.000 * S000
340.000 92/609
How much, should by = Fus.o00
208 profit or ssa “°°°8224 a5 fan imparrert
a Pi5,000 abe:
miaetD ae
306
24
be foceved at the'o0
years, sof December 31, 2017, he meen eyes
year has not yet been received nor recorded beesee ot
borrower is experiencing financial uifiuiics, whe leads
company negatiated a restructuring of te loan, The anymers
Of all of the interest based on the original principal wi be
elayed until the end the 5-year foan term. in aastion, the
amount of principal repayment wil be dropped fam P200,000
to P100,000. The prevaling interest rete for similar typeof
Toan as of December 31, 2017 ts 10%. The carving amount
of the loan as of December 31, 2018 is
P 67,700 7135.23
2 i 42,084
b. P132,300 ae
anc Aegan eprig sera
95.0n August 1, Southeast Corporation assigned P20,000 ofits
P6000. of accounts recewabie.” The’ finance’ company
Revanced 90% of the assigned accounts less & P2,000 fee
fnverest 1s 412% and payable monthly on the Beginning oF.
penod loan balance. loan payment ie emitted atthe end of
28ch month, Each payment includes principal and incest.
‘The ammount of each lean payment equals the cash collected
fn receWables during the month plus interest‘on the Tea
Bhiones.
11 8,000 was collected on acceunts recewvable during August,
the entry for the fst loan payment would include»
‘2 debt to Interest Expense of PL80.
B._ creat to Cash of P8000.
cred to Account Receivable Assigned of P8,000.
‘G. debit to Notee Payabie of 8,180,
se the following information for the next two questions
Crest Textes, Inc. factors P500,000 of accounts receivable with
{Cornmercal Factors, Ine. Crest Testes transfers the receivable
‘recatds to Commercial Factors, whieh wil receive the colectons:
Cornmercal Factors assetsen a fmance charge of 3 percent ef the
amount of accounts receivable and retains an amount aval to 3
pareent of the accounts recelvate (or probable adjestrnents)
26.1f the transfer is‘on a non-guarantee (or without recourse)
basis, whieh statement is correct
{3 Crest Textiles reports both a receivable and a Raby of
500,000 in its statement af fnancal poston,
b, Crest Textles records 6 loss of Pa, 000,
©. The factors net came wil be the iference between the
financing income of 15,000 and the amount cf any
Luncollectibie receivabies:
4, Nave of the above. cst nureg arse ser
| ‘e. The Use of LIFO results in inventories being recognized in
* The statement of financial postion at amounts tat may
| bor ite relationship to recent cost levels of Inventories.
eae
2 | 8 so oST dio .
Be ew eh ogee
Roe =
BR a bt Telethanae :
Bf ta =
Ba ae a
8 c ° ~ : oa Grown ne 1098-0
mie) ¢ 1] Ss SEE a aesrsrenerapn Dm
eieis i
mj ai of be tes A Tee eee =
ar) ow fade TERT se sree) gS
23 c a Pe © t resents 138-8
Rel aise a =
we | j | =o 1
bs [| 8 | ¢ i mde See seman rim poaeaneeiehieeany Sau
Serene ners ss
conga amount, 211
"Goshated meet, 123118 190
Bh gewe eta Fon atnaton “Se
(2) Goose purchased FOR awpping fom 8 00
ones invent T2138
