This document contains a final preboard examination for a financial accounting and reporting course. It consists of 48 multiple choice questions testing concepts such as leases, investments, pensions, income taxes, and financial statement analysis. The questions cover the preparation and analysis of financial statements, accounting for various transactions, and calculation of key financial ratios.
This document contains a final preboard examination for a financial accounting and reporting course. It consists of 48 multiple choice questions testing concepts such as leases, investments, pensions, income taxes, and financial statement analysis. The questions cover the preparation and analysis of financial statements, accounting for various transactions, and calculation of key financial ratios.
This document contains a final preboard examination for a financial accounting and reporting course. It consists of 48 multiple choice questions testing concepts such as leases, investments, pensions, income taxes, and financial statement analysis. The questions cover the preparation and analysis of financial statements, accounting for various transactions, and calculation of key financial ratios.
This document contains a final preboard examination for a financial accounting and reporting course. It consists of 48 multiple choice questions testing concepts such as leases, investments, pensions, income taxes, and financial statement analysis. The questions cover the preparation and analysis of financial statements, accounting for various transactions, and calculation of key financial ratios.
Financial Accounting and Reporting VALIX/SIY/VALIX/ESCALA/SANTOS/DELA CRUZ
Final Preboard Examination
1. PV of lease payments 2,759,000
PV of guaranteed residual value (200,000 x 0.47) ( 94,000) PV of rentals 2,665,000
Periodic rental (2,665,000 / 5.33) 500,000 C
2. 2,759,000 – 2,500,000 259,000 B
3. Carrying amount of note (4,000,000 + 480,000) 4,480,000
Carrying amount of note receivable (3,000,000) Carrying amount of equipment ( 700,000) Gain on extinguishment 780,000 C
4. 800,000 – 700,000 100,000 gain A
5. 2,500,000 – 2,000,000 500,000 C
6. Cumulative compensation – 2021 (9,000,000 x 94% x 2/2) 8,460,000
Cumulative compensation – 2020 (9,000,000 x 96% x ½) (4,320,000) Expense for the year 2021 4,140,000 D
7. Share options outstanding 8,460,000
Share premium – unexercised share options 8,460,000 C
8. 502,500 / 10,050,000 5% B
9. PBO – December 31, 2020 10,500,000
Current service cost and interest expense (1,350,000 + 502,500) 1,852,500 Actuarial gain (SQUEEZE) ( 852,500) C Benefits paid ( 250,000) PBO – December 31, 2021 11,250,000
10. FVPA – 12/31/2020 10,050,000
Contribution to the plan (SQUEEZE) 647,500 A Actual return 502,500 Benefits paid ( 250,000) FVPA – 12/31/2021 10,950,000
11. 7,000,000 – 6,000,000 1,000,000 B
12. 16,660,000 D
13. Total SHE 16,660,000
Preference SHE Par 500,000 Liquidation premium (5 x 5,000) 25,000 Preference dividend (500,000 x 8%) 40,000 (565,000) Ordinary SHE 16,095,000
Book value per ordinary share (16,095,000 / 131,000) 122.86 A
Preference Ordinary Total
Fixed Pref. Div. 72,000 72,000 Allocation to Ord. 96,000 96,000 Balance 48,000 192,000 240,000 Total 120,000 288,000 408,000
14. C Page 2
15. Future taxable amount (270,000 / 30%) 900,000
Accounting depreciation 4,500,000 Tax depreciation 5,400,000 C
16. Current tax expense (3,375,000 – 270,000) 3,105,000
Taxable income (3,105,000 / 30%) 10,350,000 D
Year Cumulative Expense
2020 (30,000 x 80 x 1/3) 800,000 800,000 2021 (80,000 x 120 x 2/3) 6,400,000 5,600,000 2022 (50,000 x 140 x 3/3) 7,000,000 600,000
17. B
18. D
19. Proceeds (50,000 x 100) 5,000,000
Share options 7,000,000 Par value (50,000 x 80) (4,000,000) Share premium 8,000,000 B
20. CA of loan (5,000,000 + 450,000) 5,450,000
PV of expected cash flows (5,450,000 x 0.772) (4,207,400) Impairment loss 1,242,600 A
21. 3,000,000 – 300,000 2,700,000 C
22. 20,000,000 + 600,000 20,600,000 B
23. Depreciation 937,500
Interest expense (8,000,000 x 10%) 800,000 Total expense 1,737,500 D
24. 7,000,000 – 5,600,000 1,400,000 A
25. CA of assets 6,400,000
Recoverable amount (value in use) 3,800,000 Impairment loss 2,600,000
Impairment loss allocated to goodwill 1,400,000 B
26. 5,850,000 B
27. 1,000,000 – 300,000 – 50,000 – 53,000 597,000 A
28. Required allowance (597,000 x 8%) 47,760
Debit balance of allowance (write-off) 53,000 Doubtful accounts expense 100,760 D
29. 600,000 x 6% 36,000 C
30. Initial factor’s holdback (600,000 x 2%) 12,000
Required balance (600,000 -350,000 = 250,000 x 2%) ( 5,000) Amount to be returned to Emerald 7,000 C
31. Purchase discount lost (3,000,000 x 20% x 2%) 12,000 A
32. Cost of goods sold (3,000,000 x 98% x 90%) 2,646,000 B
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33. Merchandise available for sale 4,822,000
Cost of goods sold (2,420,000 x 70%) (1,694,000) Estimated inventory 3,128,000 Inventory owned and on hand (1,500,000 – 300,000) (1,200,000) Insurance claim 1,928,000 B
34. 7,500,000 D
35. 870,000 / 7,250,000 12% C
36. Fair value (8,000,000 x 120%) 9,600,000
CA per amortization schedule (7,250,000 + 230,000) (7,480,000) Unrealized gain – OCI 2,120,000 A
37. 9,600,000 D
38. 7,000,000 B
39. March 1 (540,000 x 4/4) 540,000
April 1 (756,000 x ¾) 567,000 May 1 (1,350,000 x 2/4) 675,000 June 1 (2,160,000 x ¼) 540,000 Weighted average expenditures 2,322,000
Specific borrowing (1,080,000 x 9% x 10/12) 81,000
General borrowing (1,242,000 x 12% x 10/12) 124,200 Capitalized borrowing cost 205,200 C
40. 321,000 – 205,200 115,800 A
41. 5,821,200 A
42. 3,000,000 x 20% = 600,000 + 700,000 1,300,000 B
43. Basic EPS (4,850,000 / 200,000) 24.25
Diluted EPS (5,000,000 / 250,000) 20.00 D
44. 3,800,000 – 150,000 3,650,000 C
45. Cost of goods sold 2,250,000
Decrease in inventory ( 194,000) Increase in AP ( 120,000) Cash paid to suppliers 1,936,000 A
46. 210,000 – 19,500 + 30,000 220,500 B
47. Net income 490,000
Accounts receivable (150,000) Inventory 194,000 Salaries payable ( 80,000) Accounts payable 120,000 Income tax payable ( 30,000) Depreciation 167,000 Deferred tax liability 19,500 Net cash flow from operating activities 730,500 B Page 4
48. Expense 12,000
Cash short/over 3,000 Cash 15,000 C
49. 550,000 + 3,000,000 3,550,000 A
50. Amortization of trademark (1,500,000 / 10) 150,000
Deferred tax expense 250,000 Loss from change in fair value 600,000 Impairment loss on inventory 120,000 Total expense 1,120,000 B
51. C 52. D 53. A 54. B 55. C 56. C 57. B 58. D 59. A 60. B 61. C 62. C 63. A 64. B 65. D 66. A 67. B 68. C 69. A 70. C
Cpa Review School of The Philipines Manila Financial Accounting and Reporting JULY 2021 First Preboard Examination SITUATION 1 - Three Unrelated Entities
Cpa Review School of The Philipines Manila Financial Accounting and Reporting JULY 2021 First Preboard Examination SITUATION 1 - Three Unrelated Entities
