Pamantasan ng Cabuyao

Katapatan Subd., Banay Banay, City of Cabuyao

Name: _________________________________
Score:___________
Auditing and Assurance Services, Part II Mr. W.E. Peralta

Solve and answer the following problems.

Problem I

1. One is using periodic inventory system. For the year, its total purchases amounted to
P250,000. Its unsold merchandise at the end of the year has a cost of P5,000 which is 80%
of its beginning inventory. One’s cost of sale is
a. P 250,000 b. P 251,250 c. P 249,000 d. P 248,750

2. Two’s purchase per purchase invoice is P150,000. The purchase discount is 2/10, n/30.
Freight is P500, FOB shipping point collect. The net purchase amounts under net method is
a. P P147,000 b. P 147,500 c. P 148,500 d. P 150,500

3. Using the information in Item 2, the amount paid by the buyer is

a. P P147,000 b. P 147,500 c. P 148,500 d. P 150,500

4. The purchase invoice shows the amount of P250,000, 2/10, 1/20, n/30; FOB destination
collect, P200. If the account is paid 15 days after the invoice date, the net payment should be
a. P 245,000 b. P 247,500 c. P 247,300 d. P 244,800

5. Using the information in Item 4, the net purchase is

a. P 245,000 b. P 247,500 c. P 247,300 d. P 244,800

6. Three purchased merchandise for P5,000 and paid P200 for freight, FOB destination collect.
The merchandise was sold at 120% of cost. The gross profit is
a. P 1,000 b. P 1,040 c. P 6,000 d. P 6,240

7. The total purchase is P1,176, net of 2% cash discount. Unsold portion of purchase is P176.
The sale is at markup of 10%. The gross profit is
a. P 117.60 b. P 88.24 c. P 115.25 d. P 100.00

8. The term of a P300,000 purchase is 2/20, n/60, FOB shipping point prepaid, P300. If the
account is paid on the
25th day from the invoice date, the total payment would be
a. P 294,000 b. P 299,700 c. P 294,300 d. P 300,300

9. Four paid freight for P200 on its purchase on account from Five, FOB shipping point. The
journal entry in both books of Four and Five would be
Books of Four Books of Five
a. Freight-out 200 Freight-in 200 Cash 200 Accounts payable 200 b. Freight-in
200 No entry
Accounts receivable 200
c. Freight-in 200 No entry
Cash 200
d. Freight-in 200 Freight-out 200
Cash 200 Accounts receivable 200

10. Six sold merchandise at list price of P250,000; 10; 5; n/30. Part of the sale amounting to
P10,000 was returned due to defect. The amount to be collected by Six is
a. P 205,200 b. P 203,750 c. P 204,000 d. P 195,200
11. Amar Company received P96,000 on April 1, 2014 for one year’s rent in advance and recorded
the transaction with a credit to a nominal account. The December 31, 2014 adjusting entry is
a. Debit rent revenue and credit unearned rent revenue, P24,000.
b. Debit rent revenue and credit unearned rent revenue, P72,000.
c. Debit unearned rent revenue and credit rent revenue, P24,000.
d. Debit unearned rent revenue and credit rent revenue, P72,000.

12. Andoy Company paid P72,000 on June 1, 2014 for a two-year insurance policy and recorded
the entire amount as insurance expense. The December 31, 2014 adjusting entry is
a. Debit insurance expense and credit prepaid insurance, P21,000.
b. Debit insurance expense and credit prepaid insurance, P51,000.
c. Debit prepaid insurance and credit insurance expense, P21,000.
d. Debit prepaid insurance and credit insurance expense, P51,000.

13. Antipuesto Company purchase equipment on November 1, 2014 and gave a 12-month, 9%
note with a face value of P480,000. The December 31, 2014 adjusting entry is
a. Debit interest expense and credit interest payable, P7,200.
b. Debit interest expense and credit interest payable, P10,800.
c. Debit interest expense and credit cash, P7,200.
d. Debit interest expense and credit interest payable, P43,200.

14. On December 31, 2014, Asilo Company’s bookkeeper made an adjusting entry debiting
supplies expense and credit supplies inventory for P12,600. The supplies inventory accounts
had a P15,300 debit balance on December 31, 2013. The December 31, 2014 balance sheet
showed supplies inventory of P11,400. Only one purchase of supplies was made during the
month, on account. The entry for that purchase was a. Debit supplies inventory and credit
cash, P8,700.
b. Debit supplies expense and credit accounts payable, P8,700.
c. Debit supplies inventory and credit accounts payable, P8,700.
d. Debit supplies inventory and credit accounts payable, P16,500.

15. Astillo Company loaned P300,000 to another company on December 1, 2014 and received a
3-month, 15%, interest-bearing note with a face value of P300,000. What adjusting entry
should Astillo Company make on December 31, 2014?
a. Debit interest receivable and credit interest income, P7,500.
b. Debit cash and credit interest income, P3,750.
c. Debit interest receivable and credit interest income, P3,750.
d. Debit cash and credit interest receivable, P7,500.

16. The supplies inventory account balance at the beginning of the period was P66,000. Supplies
totaling P128,250 were purchased during the period and debited to supplies inventory. A
physical count shows P38,250 of supplies inventory at the end of the period. The year-end
adjusting entry is
a. Debit supplies inventory and credit supplies expense, P90,000.
b. Debit supplies expense and credit supplies inventory, P128,250.
c. Debit supplies inventory and credit supplies expense, P156,000.
d. Debit supplies expense and credit supplies inventory, P156,000.

17. At the end of 2014, Avila Company made four adjusting entries for the following items: (1)
depreciation expense, P35,000; (2) expired insurance, P2,200 (originally recorded as prepaid
insurance); (3) interest payable, P9,000; and (4) rental revenue receivable, P10,000.

In the normal situation, to facilitate subsequent entries, the adjusting entry or entries that may
be reversed is/are
a. Entry 1 c. Entries 3 and 4
b. Entry 4 d. Entries 2, 3, and 4

18. Bagaipo Company reported an allowance for doubtful accounts of P12,000 (credit) at
December 31, 2014 before performing an aging of accounts receivable. As a result of the
aging, Bagaipo Company determined that an estimated P20,000 of the December 31, 2014
accounts receivable would prove uncollectible. The adjusting entry at December 31, 2014
would be
 a. Doubtful accounts expense 8,000 Allowance for doubtful accounts
8,000 b. Doubtful accounts expense 20,000
Accounts receivable 20,000
c. Allowance for doubtful accounts 8,000
Doubtful accounts expense 8,000
d. Doubtful accounts expense 8,000
Interest revenue 8,000

19. Assuming that the company does not reverse the adjusting entries, what should be made on
April 1, 200 when the annual interest payment is received?
a. Debit cash and credit interest revenue, P9,375.
b. Debit cash and credit interest receivable, P28,125.
c. Debit cash, P37,500; credit interest receivable, P28,125; and interest revenue, P9,375.
d. Debit cash and credit interest revenue, P37,500.

20. Using the data of No. 19, but assuming that the company does reverse its adjusting entries,
what entry should be made on April 1, 2003 when the annual interest payment is received? a.
Debit cash and credit interest revenue, P9,375.
b. Debit cash and credit interest receivable, P28,125.
c. Debit cash, P37,500; credit interest receivable, P28,125; and interest revenue, P9,375.
d. Debit cash and credit interest revenue, P37,500.
Problem II
The following is the post-closing trial balance of Abagon Shop dated February 1, 2014:

Debit Credit
Cash 120,000
Accounts Receivable 280,000
Allowance for doubtful accounts
2,800
Unused shop supplies 800
Shop Equipment 240,000
Accumulated depreciation - shop equipment
48,000
Accounts payable
88,800
Notes payable
100,000
Accrued interest payable
1,200
Abagon, Capital
400,000
Total 640,800
640,800

For the month of February, the following are the transactions of Abagon Shop.

1. Abagon withdrew P100,000 cash from the business for her personal use.
2. Paid P12,000 insurance premium.
3. Paid P24,000 rent.
4. Total service rendered to various customers, P140,000, 40% of total sales are on cash
basis and the balance on open account.
5. Received promissory note from customer to replace P40,000 accounts receivable.
6. Collected in cash P164,000 of accounts receivable.
7. Paid the notes payable of P100,000 plus the P2,400 interest.
8. Purchased P2,400 shop supplies on cash basis.
9. Paid salaries, P24,000.

At the end of the month, the following information are available to effect adjustments.

a. The insurance in number 2 for P12,000 is applicable for six months starting February.
b. The rent of P24,000 paid in number 3 is for 3 months, starting February.
c. The note receivable is number 5 is earning 12% interest per year. The note is dated
February 1, and is due on April 30.
d. Bad debts expense is estimated at 2% of accounts receivable balance.
e. The annual depreciation is P48,000.
f. The unused supplies balance is P1,000.

Questions
1. Cash at end of February is:
a. P 103,200 b. P 85,200 c. P 75,200 d. P 72,800

2. Net Realizable value of Accounts Receivable at end of February is

a. P 156,800 b. P 157,200 c. P 196,800 d. P 197,200

3. Unused shop supplies at end of February is

a. P 1,800 b. P 1,000 c. P 800 d. P 200

4. Net book value of Shop Equipment at end of February is

a. P 188,000 b. P 189,000 c. P 184,000 d. P 144,000

5. Accounts Payable at end of February is

Problem III
a. P 128,800 b. P 88,800 c. P 86,400 d. P 48,800

6. Notes Payable at end of February is

a. P 100,000 b. P 102,400 c. P 97,600 d. P 0

7. Abagon Capital, net of drawing at end of February is

a. P 398,600 b. P 397,400 c. P 397,800 d. P 388,600

8. Net income of the company at end of February is

a. P 98,600 b. P 97,400 c. P 97,800 d. P 88,600

9. Total Revenue of the company at end of February is

a. P 142,800 b. P 142,400 c. P 140,400 d. P 140,000

10. Total Expenses of the Company at end of February is

a. P 52,600 b. P 41,800 c. P 41,400 d. P 41,000

The following selected transactions were completed during Year 1 of operations by Vicar
Corporation:

a. Sold of its 20,000 shares of its own common stock, par P1 per share, for P15 per share and
received cash in full.

b. Borrowed P100,000 cash on 12%, one-year note, interest payable at maturity on April 30,
Year 2.

c. Purchased equipment for use in operating the business at a net cash cost of P164,000;
paid in full.

d. Purchased merchandise for resale at cash cost of P140,000; paid cash. Assume a periodic
inventory system; therefore, debit Purchases.

e. Purchased merchandise for resale on credit terms of 2/10, n/60. The merchandise will cost
P9,800 if paid within 10 days; after 10 days, the payment will be P10,000. The company
always takes the discount; therefore, such purchased are recorded at net of the discount.

f. Sold merchandise for P180,000; collected P165,000 cash, and the balance is due in one
month.

g. Paid P30,000 cash for operating expenses.

h. Paid ¾ of the balance for the merchandise purchased in (e) within 10 days; the balance
remains unpaid.

i. Collected 50% of the balance due on the sale in (f); the remaining balance is uncollected.

j. Paid cash for an insurance premium, P600; the premium was for two years’ coverage (debit
Prepaid insurance).

k. Purchased a tract of land for a future building for company operations, P63,000 cash.

l. Paid damages to a customer who was injured on the company premises, P10,000 cash.

Questions

1. Cash balance is:

a. P 157,550 b. P 157,400 c. P 157,250 d. P 149,900
Problem IV

2. Accounts receivable balance is:

a. P 15,000 b. P 10,000 c. P 7,700 d. P 7,500

3. Prepaid insurance balance is:

a. P 600 b. P 400 c. P 300 d. P 200

4. Land account balance is:

a. P 227,000 b. P 164,000 c. P 101,000 d. P 63,000

5. Equipment account balance is:

a. P 227,000 b. P 164,000 c. P 101,000 d. P 63,000

6. Accounts payable balance is:

a. P 2,650 b. P 2,500 c. P 2,450 d. P 2,150

7. Notes payable balance is:

a. P 112,000 b. P 109,000 c. P 100,000 d. P 88,000

8. Common stock balance is:

a. P 300,000 b. P 280,000 c. P 200,000 d. P 20,000

9. Premium on capital stock balance is:

a. P 300,000 b. P 280,000 c. P 200,000 d. P 20,000

10. Sales balance is:

a. P 180,000 b. P 160,000 c. P 100,000 d. P 80,000

11. Purchases balance is:

a. P 149,800 b. P 149,600 c. P 150,000 d. P 150,200

12. Operating expenses and other expenses is:

a. P 49,800 b. P 40,200 c. P 40,000 d. P 38,800

The account of PEQUIT COMPANY as at December 1, 2014 are listed below:

Cash 214,000
Accounts receivable 338,000
Marketable securities 426,000
Office supplies 31,000
Prepaid insurance 48,000
Land 370,000
Building 900,000
Accum. depreciation – bldg 250,000
Equipment 800,000
Accum. depreciation – equip. 200,000
Accounts payable 172,000
Mortgage payable 1,200,000
Capital _______
1,305,000
3,127,000
3,127,000

The following transactions occurred during the month of December 2014:

Dec. 1 Settled the accounts payable of P115,000 less 2% discount.

3 Collected the accounts receivable of P180,000 less 3% discount.
Problem V
4 Sold merchandise on account to PAPACOY SUPPLIES, P210,000. Terms:
FOB destination, 3/10, n/30. PAPACOY SUPPLIES paid the freight for P3,000.
5 Received returns from PAPACOY SUPPLIES, P25,000.
7 Purchased merchandise from OSTIQUE PRODUCTS, P232,000. Terms: FOB shipping
point, 2/10, n/30. PEQUIT COMPANY paid P2,000 for the transportation cost.
9 Returned goods to OSTIQUE PRODUCTS, P12,000 acquired on December 7.
10 Paid interest on mortgage payable, P8,000.
11 Received payment from PAPACOY SUPPLIES for the amount due.
12 Sold merchandise to OANI SHOPPERS, P330,000. Terms: FOB shipping point,
3/10, n/30.
18 Received payment from OANI SHOPPERS from the December 12 sales.
19 Sold merchandise to NAVALES SHOP, P242,000. Term: FOB shipping point,
3/10, n/30. PEQUIT COMPANY paid P5,000 for the freight.
20 Paid P9,000 for representation expense.
29 Received from NAVALES SHOP returned merchandise in the amount of P18,000
from the December 19 sales.
30 The owner, Genevieve, withdraw merchandise for personal use. Cost – P20,000;
Selling price – P30,000.

Additional information
1. Salaries in the amount of P73,000 have accrued on December 31.
2. Insurance coverage with premium of P2,000 has expired at month-end.
3. Depreciation on the building and on the equipment for the month amounted to P3,000 and
P4,500, respectively.
4. Office supplies on hand at month-end amounted to P7,000.
5. A count of the inventory amounted to P453,000 on December 31, 2006.

Questions
1. Cash balance at December 31, 2014 is:
a. P 773,750 b. P 772,700 c. P 748,450 d. P 727,700

2. Accounts receivable at December 31, 2014 is:

a. P 412,000 b. P 405,000 c. P 387,000 d. P 362,000

3. Inventory at December 31, 2014 is:

a. P 625,700 b. P 453,000 c. P 426,000 d. P 212,000

4. Office supplies at December 31, 2014 is:

a. P 7,000 b. P 10,000 c. P 24,000 d. P 31,000

5. Net carrying value of Fixed Assets at December 31, 2014 is:

a. P 1,980,000 b. P 1,620,000 c. P 1,612,500
d. P 1,242,500

6. Total assets at December 31, 2014 is:

a. P 3,253,950 b. P 3,250,950 c. P 3,203,950
d. P 3,153,950
7. Accounts payable at December 31, 2014 is:
a. P 289,000 b. P 279,000 c. P 277,000 d. P 257,000

8. Accrued expenses at December 31, 2014 is:

a. P 97,000 b. P 73,000 c. P 24,000 d. P 9,000

9. Net sales at December 31, 2014 is:

a. P 782,000 b. P 718,950 c. P 718,240 d. P 718,150

10. Total purchases at December 31, 2014 is:

a. P 232,000 b. P 212,000 c. P 199,700 d. P 197,700

11. Operating expenses at December 31, 2014 is:

a. P 126,500 b. P 118,500 c. P 109,500 d. P 101,500

12. Net income at December 31, 2014 is:

a. P 482,800 b. P 426,950 c. P 419,040 d. P 418,950

13. Capital balance at December 1, 2014 is:

a. P 1,704,040 b. P 1,703,950 c. P 1,305,000
d. P 1,285,000

14. Capital balance at December 31, 2014 is:

a. P 1,704,040 b. P 1,703,950 c. P 1,305,000
d. P 1,285,000

15. Total liabilities and capital at December 31, 2014 is:

a. P 3,253,950 b. P 3,250,950 c. P 3,203,950
d. P 3,153,950

Problem V

The trial balance of ANN CO., prior to the closing of its account for the fiscal year ended
September 30, 2014 follows:

Cash P22,500
Accounts receivable 93,600
Allowance for doubtful accounts P
3,190
Note receivable 15,500
Merchandise inventory, 9/30/02 56,890
Furniture and equipment 61,800
Accumulated depreciation
18,750
Goodwill 30,000
Accounts payable
53,600
Notes payable
10,000
Capital Stock
100,000
Retained Earnings
55,250
Sales
372,000
 Sales return and allowances 4,760
Purchases
215,930
Purchase return and allowances
3,650
Advertising 9,610
Sales salaries 28,850
Commission expense 15,200
Miscellaneous expense 2,990
Rent expense 13,000
Office salaries 19,720
Light and Water 1,500
Insurance expense 1,080
Taxes and licenses 4,780
General expense 16,340
Interest expense 4,120
Interest income 910

Your examination of the company’s account has the need for adjustments based on the following
items:

a. The cash account included a customer’s check for P1,500 deposited on September 25, 2014
but returned by the bank on September 29, 2014 for lack of countersignature. No entry was
made for the returned check.

b. Unrecorded bank charge for September 2014, P500

c. The allowance for doubtful accounts should be adjusted to 5% of the outstanding accounts
receivable balance on September 30, 2014.

d. A physical inventory of merchandise taken at the end of the fiscal year 2006 amounted to
P60,120.

e. Goods received on consignment, still unsold costing P2,000 were included in the physical
inventory.

f. The merchandise inventory on September 30, were correctly stated.

g. Depreciation of furniture and equipment at 10% annually has not been recognized.

h. Accrued salesmen’s salaries not recorded P5,000

i. An insurance policy was taken on the inventory and equipment on March 1, 2014 with the
annual insurance premium of P1,080 paid on that date.

j. Rent expense account considered of rent for the store and office space for thirteen months
starting August 1, 2014.

Based on the aforementioned data, answer the following questions;

1. The adjusting entry on item A is

a. Cash 1,500
Accounts receivable 1,500
b. Accounts payable 1,500
 Cash 1,500
c. Accounts receivable 1,500
Cash 1,500
d. No adjustment

2. The adjusting entry on item B is

a. Cash 500
Accounts receivable 500
b. Cash 500
General expenses 500
c. General Expenses 500
Cash 500
d. No adjustment

3. The adjusting entry on item C is

a. Accounts receivable 4,680
Allowance for Doubtful Accounts 4,680
b. Doubtful Accounts 1,565
Allowance for Doubtful Accounts 1,565
c. Allowance for Doubtful Accounts 1,490
Doubtful Accounts 1,490
d. Doubtful Accounts 1,490
Allowance for Doubtful Accounts 1,490

4. The adjusting entry on item D is

a. Merchandise Inv. 60,120
Income Summary 60,120
b. Merchandise Inv. 60,120 Purchases
60,120 c. Income summary 60,120
Merchandise inventory 60,120
d. No adjustment

5. The adjusting entry on item E

a. Income summary 2,000
Merchandise Inv. 2,000
b. Sales 2,000
Merchandise Inv. 2,000
c. Merchandise inventory 2,000
Income summary 2,000
d. No adjustment
6. The adjusting entry on item F is
a. Merchandise Inv. 56,890
Income summary
56,890 b. Merchandise Inv.
56,890 Purchases
56,890 c.
Income summary 56,890
Merchandise inventory 56,890
d. No adjustment

7. The adjusting entry on item G is

a. Depreciation Exp. 6,180 Accumulated Depreciation
6,180
b. Accumulated Depreciation 6,180
Furniture and Equipment 6,180
c. Accumulated depreciation 6,180
Depreciation expense 6,180 d. No adjustment

8. The adjusting entry on item H is

a. Accrued Salaries Expense 5,000
Sales salaries 5,000
 b. Accrued salaries exp. 5,000
Office salaries 5,000
c. Office salaries 5,000 Depreciation expense 5,000
d. Sales salaries 5,000
Accrued salaries expense 5,000

9. The adjusting entry on item I is

a. Insurance Exp. 630
Prepaid insurance 630
b. Prepaid insurance 630 insurance exp.
630
c. Insurance expense 450 Prepaid insurance 450
d. Prepaid insurance 450 Insurance expense
450

10. The adjusting entry on item J is

a. Rent expense 11,000 Prepaid rent
11,000 b. Prepaid rent 2,000
Rent expense
2,000 c. Prepaid rent
11,000 Rent
expense 11,000 d. Rent
expense 2,000 Prepaid
rent 2,000

After making the adjustments compute the following:

11. Cash
a. P24,000 b. P21,000 c. P20,500 d. P20,000

12. Net realizable value of accounts receivable

a. P90,410 b. P90,345 c. P88,920 d. P88,845

13. Merchandise inventory, September 30, 2014

a. P60,120 b. P56,890 c. P62,120 d. P58,120

14. Furniture and Equipment, net of accumulated depreciation

a. P55,620 b. P36,870 c. P36.700 d. 36,890

15. Total assets, September 30, 2014

a. P262,785 b. P250,845 c. P223,850 d. P262,700

16. Cost of goods sold, September 30, 2014

a. P211,050 b. P210,050 c. P212,300 d. P212,280
17. Net income, September 30, 2014 (disregard tax effect)
a. P31,635 b. P31,625 c. P38,935 d.
P38,115
18. Prepaid insurance
a. P630 b. P450 c. P1,080 d. P600

19. Prepaid rent

a. P11,000 b. P2,000 c. P13,000 d.
P10,000

Problem VI

Presented below are unaudited balances of selected accounts of Baluyot Company as at

December 31, 2014 – its first year of operation. During the course of your audit of Baluyot’s books
you obtained additional information affecting these accounts:
 Debit Credit
Cash 500,000
Accounts receivable 1,300,000
Allowance for bad debts 8,000

Sales (net) 6,750,000

Accounts payable 600,000
Purchases (net) 4,350,000
Cars and trucks 1,200,000
Machinery and equipment 950,000
Accumulated depreciation 95,000

Additional information:

a. On December 31, 2014, Baluyot recorded and wrote check payments to creditors amounting
to P300,000. A number of checks amounting to P150,000 were mailed on January 3, 2015.

b. On December 28, 2014, Baluyot purchased and received goods amounting to P100,000,
terms 2/10, n/30. As a policy, Baluyot records purchases in accounts payable at net amounts.
This particular invoice was recorded and paid on January 4, 2015.

c. On December 26, 2014, a supplier authorized Baluyot to return goods shipped and billed at
P80,000 on December 3, 2014. The goods were returned on December 30, 2014. The
supplier’s credit memo was received and recorded on January 5, 2015.

d. Goods amounting to P50,000 were invoiced for the account of Palmes Company and recorded
on January 2, 2015 with terms of net 60 days, FOB shipping point. The goods were shipped
to Palmes on December 30, 2014.

e. The bank returned on December 29, 2014, a customer check for P5,000 marked “No Sufficient
Fund” but no entry was made.

f. Baluyot estimates that allowance for uncollectible accounts should be one and one-half
percent (1½%) of the accounts receivable balance as of year-end. No provision has yet been
made for 2014.

g. All the cars and trucks were acquired on May 1, 2014 at a total cost of P1,200,000. Baluyot
estimates the useful life of the cars and trucks at five-years and depreciates these assets
based on 150% declining balance. As a policy, depreciation is computed to the nearest month
and rounded-off to the nearest peso. No depreciation has been recorded for cars and trucks
as at December 31, 2014.

Questions
1. The adjusted amount of Cash is:
a. P 650,000 b. P 645,000 c. P 500,000 d. P 495,000

2. The adjusted amount of Accounts Receivable is:

a. P 1,355,000 b. P 1,350,000 c. P 1,305,000
d. P 1,300,000

3. The adjusted amount of Sales – net is:

a. P 6,840,000 b. P 6,800,000 c. P 6,750,000
d. P 6,700,000

4. The adjusted amount of Purchases – net is:

a. P 4,448,000 b. P 4,368,000 c. P 4,350,000
d. P 4,270,000
5. The adjusted amount of Bad Debts Expense is:
a. P 36,325 b. P 28,325 c. P 20,325 d. P 12,325

6. The adjusted amount of 2006 Depreciation Expense – Machinery and Equipment is:
a. P 95,550 b. P 95,500 c. P 95,417 d. P 95,000

7. The adjusted amount of Accounts payable is:

a. P 818,000 b. P 800,000 c. P 768,000 d. P 600,000

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