Polytechnic University of the Philippines

College of Accountancy and Finance

Sta. Mesa, Manila

Mock Special Qualifying Examination for Freshmen

Junior Philippine Institute of Accountants

Direction: Read the questions carefully and choose the letter of the correct answer.
Be honest, even if others are not, even if others will not and even if others cannot.

THEORIES
1. They encompasses the conventions, rules and procedures necessary to define what is accepted
accounting practice
a. Generally Accepted Accounting Principles
b. Accounting Constraints
c. Conceptual Framework
d. Accounting Assumptions

2. Financial statement users with a direct economic interest in a specific business include:
a. Financial advisers
b. Regulatory bodies
c. Stock markets
d. Suppliers

3. The essential characteristic/s of accounting is/are:

a. Communication of financial information to interested person
b. Communication of financial information about economic entities
c. Identification, measurement and communication of financial information
d. All of the above

4. Accountants prepare financial statements at arbitrary points in time during the lifetime of an entity.
This is in accordance with which basic accounting concept?
a. Going concern
b. Periodicity
c. Unit of measure
d. Accrual

5. Which of the following is an adjunct account?

a. Cash
b. Accounts Receivable
c. Premium on bonds payable
d. Allowance for bad debts

6. According to ASC conceptual framework, which of the following is essential characteristic of an

asset?
a. The claims to an asset’s benefits are legally enforceable
b. An asset is tangible
c. An asset is obtained at cost
d. An asset provides future benefits

7. Which of the following best describes the distinction between expenses and losses?
a. Losses are reported net of related tax effect, whereas expenses are not reported net of tax
b. Losses are extraordinary charges, whereas expenses are ordinary charges
c. Losses are material items, whereas expenses are immaterial items
d. Losses result from peripheral or incidental transactions, whereas expenses result from
ongoing major or central operations of the entity

8. An entity’s revenue may result from

a. A decrease in an asset from primary operations
b. An increase in an asset from incidental transactions
c. An increase in a liability from incidental transactions
d. A decrease in a liability from primary operations
9. When is revenue recognized?
a. It is probable that future economic benefit will flow to the enterprise
b. It is possible that reliably measurably future economic benefits will flow to the enterprise
c. The future economic benefits can be measured reliably
d. It is probable that reliably measurable future economic benefits will flow to the enterprise

10. This requires reporting information that has a value significant enough to affect decisions of those
using the financial statement
a. Accounting entity
b. Materiality
c. Verifiability
d. Going concern

11. The correct order of the following steps of the accounting cycle is
a. Posting, closing, adjusting, reversing
b. Posting, adjusting, closing, reversing
c. Posting, reversing, adjusting, closing
d. Adjusting, posting, closing, reversing

12. What is the purpose of nominal accounts?

a. To provide temporary accumulations of certain account balances for a meaningful period of
time
b. To facilitate accounting for small amounts
c. To correct errors as they are detected
d. To record all transactions initially

13. What is the purpose of information presented in the notes to the financial statements?
a. To provide disclosures required by the generally accepted principles
b. To correct improper presentation in the financial statements
c. To provide recognition of amount not included in the total of the financial statements
d. To present management’s responses to auditor comments

14. Which of the following statements is a correct description of reversing entries?

a. The recording of reversing entries is a mandatory step in the accounting cycle
b. Reversing entries are made at the end of the next accounting period, after recording regular
transactions of the period
c. Reversing entries are identical to the adjusting entries made in the previous period
d. Reversing entries are the exact opposite of the adjustment made in the previous period

15. An adjusting entry that records the earned portion of the unearned revenue previously recorded
always includes a
a. Debit to an account in the asset category
b. Credit to an account in the asset category
c. Credit to an account in the owner’s equity category
d. Debit to an account in the liability category

16. Which of the following documents does not initiate an entry to be made in the accounts?
a. Sales invoice
b. Credit memorandum
c. Purchase order
d. Purchase invoice

17. Which of the following statements regarding trial balance is false?

a. A trial balance helps to localize errors within an identifiable time period
b. A trial balance is a test of equality of the debit and credit balances in the ledger
c. A trial balances proves that no errors of any kind have been made in the accounts during the
accounting period
d. A trial balance is a list of all of the open accounts in the ledger with their balance as of a
given date
18. The transfer of accounts receivable into the partnership books is recorded at
a. Net realizable value
b. Gross amount together with its allowance account
c. Gross amount only
d. None of the above

19. The admission of a new partner to a 30% interest in a partnership for an investment of P60,000 with a
total agreed capital of P180,000 will result in
a. Bonus to the new partner c. Increase in the new partner’s capital
b. Bonus to the old partner d. None of these

20. Paul is an industrial partner. Besides his services, he also contributed capital to the partnership. There
is no agreement as to profits or losses. The share of Paul in the profit is
a. Pro-rata to his contributions
b. Such share as may be just and equitable under circumstances
c. To the determined by the remaining partners
d. None of the above

21. On June 1, 2013, Matthew, Mark and Luke formed a partnership by combining their separate business
proprietorships. Mathew contributed P80,000 cash. Mark contributed property with a P50,000 book
value, a P60,000 original cost and a P95,000 fair value. The partnership assumed the P20,000
mortgage attached to the property. Luke contributed equipment with a P45,000 carrying amount, a
P90,000 original cost and P70,000 fair value. The partnership agreement specifies that profits and
losses are to be shared equally but is silent regarding capital contributions. Which partner has the
largest capital account balance on June 1, 2013?
a. Matthew c. Luke
b. Mark d. All capital accounts are equal

22. Pope Francis Corporation was organized in January 2013 with authorized capital of P10 par value of
common stock. On February 1, 2013, shares were issued at par for cash. On March 1, 2013, the
corporation’s attorney accepted 5,000 shared of the common stock in settlement for legal services
with a fair value of P60,000. Additional paid in capital would increase on
February 1, 2013 March 1, 2013
a. Yes No
b. Yes Yes
c. No No
d. No Yes

23. When collectability is reasonably assured, the excess of the subscription price over the stated value
of the no-par common stock subscribed should be recorded as
a. No par common stock
b. Additional paid-in capital when the subscription is recorded
c. Additional paid-in capital when the subscription is collected
d. Additional paid-in capital when the common stock is issued

24. On December 1, 2013, shares of authorized common stock were issued on a subscription basis at a
price in excess of par value. A total of 25% of the subscription price of each share was collected as a
down payment on December 1, 2013, with the remaining 75% of the subscription price of each share
due in 2014. Collectability was reasonably assured. At December 31,2013, the stockholder’s equity
section would report additional paid capital for the excess of the subscription price over the par value
of the shares of common stock subscribed and
a. Common stock issued for 25% of the par value of the shares of common stock subscribed
b. Common stock issued for the par value of the shares of common stock subscribed
c. Common stock subscribed for 75% of the par value of the shares of common stock
subscribed
d. Common stock subscribed for the par value of the shares of common stock subscribed

25. A company declared a cash dividend on its common stock on December 15, 2013, payable on
January 12,2014. How would this dividend affect stockholder’s equity on the following dates?
December 15,2013 December 31,2013 January 12,2014
a. Decrease No effect Decrease
b. Decrease No effect No effect
 c. No effect Decrease No effect
d. No effect No effect Decrease

26. Which of the following would not be reported in the stockholder’s equity section of the balance
sheet?
a. Retained earnings appropriated for future plant expansion
b. Dividends declared on preferred stock
c. Paid in capital in excess of par value
d. Deficit in retained earnings

27. Unlike a stock split, a stock dividend requires a formal journal entry in the financial accounting
records because
a. Stock dividends increase the relative book value of an individual’s stock holdings
b. Stock dividends increase the stockholder’s equity in the issuing firm
c. Stock dividends are payable on the date they are declared
d. Stock dividends represent a transfer from Retained earnings to Capital stock

28. The following are the attributes of a private corporation. What is the exception?
a. It is an artificial being
b. It is created by law
c. It has the right of succession
d. Its power, attributes or properties are expressly authorized by law or incident
e. None of the above

29. It is the amount fixed in the articles of incorporation. To be subscribed and paid in by the
shareholders of a corporation, either in money or property, labor or services, at the organization of
the corporation or afterwards and upon which it is to conduct its operations. It limits the maximum
amount or number of shares that may be issued by the corporation without formal amendment of the
articles of incorporation
a. Legal capital
b. Subscribed capita
c. Outstanding capital stock
d. Authorized capitals stock

30. Incorporators should have the following qualifications. Which is the exception?
a. They must be of legal ages and must be natural persons
b. They must not be less than five (5) but not more than fifteen (15), whom are citizens of the
Philippines
c. They must number not less than five (5) but not more than fifteen (15), majority of whom
must be residents of the Philippines
d. Each of the incorporators of the stock corporation must be a subscriber to at least one (1)
share of the capital stock of the corporation

PROBLEMS

1. A business received cash of P300,000 in advance for service that will be provided later. The
cash receipt entry debited cash and credited unearned revenue for P300,000. At the end of the
period, P110,000 is still unearned.

The adjusting entry for this situation will

a. Debit Unearned Revenue and Credit Revenue for P190,000
b. Debit Unearned Revenue and Credit Revenue for P110,000
c. Debit Revenue and Unearned Credit Revenue for P190,000
d. Debit Revenue and Unearned Credit Revenue for P110,000

2. Peter company paid P170,400 on June 1,2013, for a two year insurance policy and recorded the
entire amount as Insurance Expense.

The December 31, 2013, adjusting entry is

a. Debit Prepaid Insurance and Credit Insurance Expense, P49,700
b. Debit Insurance Expense and Credit Prepaid Insurance, P49,700
c. Debit Insurance Expense and Credit Prepaid Insurance, P120,700
d. Debit Prepaid Insurance and Credit Insurance Expense, P120,700
3. The Supplies on Hand account balance at the beginning of the period was P66,000, Supplies
totaling P128,250, were purchased during the period and debited to Supplies on Hand. A
physical count shows P38,250 of the Supplies on Hand at the end of the period.
The proper journal entry at the end of the period
a. Debit Supplies on Hand and Credit Supplies Expense for P90,000
b. Debit Supplies Expense and Credit Supplies on Hand for P128,250
c. Debit Supplies on Hand and Credit Supplies Expense for P156,000
d. Debit Supplies Expense and Credit Supplies on Hand for P156,000

4. On December 31 of current year, Claire Company’s bookkeeper made an entry debiting Supplies
Expense and Crediting Supplies on Hand for P126,000. The Supplies on Hand account had a
P153,000 debit balance on January 1. The December 31 balance sheet showed Supplies on Hand
of P114,000. Only one purchase of supplies was made during the month, on account.
The entry for that purchase was
a. Debit Supplies on Hand, P87,000 and Credit Cash, P87,000
b. Debit Supplies Expense, P87,000 and Credit Accounts Payable, P87,000
c. Debit Supplies on Hand, P87,000 and Credit Accounts Payable, P87,000
d. Debit Supplies on Hand, P165,000 and Credit Accounts Payable, P165,000

5. The balance in the capital account of Holy Spirit Co, at the beginning of the year was P650,000.
During the year, the company earned revenue of P4,300,000, incurred expeses of P3,600,000,
the owner withdrew P500,000 in assets and the balance in the cash account increased by
P100,000.
At year-end, the company’s net income and the year-end balance in the capital account were,
respectively:
a. P200,000 and P950,000 c. P600,000 and P750,000
b. P700,000 and P950,000 d. P700,000 and P850,000

6. At the end of the first month of operations, St. Jude Co.’s bookkeeper prepared financial
statements which showered assets of P4,000,000 liabilities of P1,500,000 and net income of
P500,000. In preparing the statements, the bookkeeper overlooked the accrued wages at month-
end of P30,000.
The correct owner’s equity at month-end is
a. P2,970,000 b. P2,350,000 c. P2,470,000 d. P1,970,000

7. Before any year-end adjustments were made, the net income of John Co. was P4,000,000.
However, the following adjustments were necessary: office supplies used, P60,000; services
performed for clients but not yet collected, P130,000; interest accrued on notes payable, P30,000.
After recording these adjustments, the net income will be
a. P3,780,000 b. P3,840,000 c. P4,040,000 d. P4,100,000

8. Before the month-end adjustments are made, the January 31, trial balance of Enrique Company
contains revenues of P580,000 and expenses of P178,000. Adjustments are necessary for the
following items: a) depreciation for January, P48,000; b) portion of fees collected in advance in
January, P110,000; c) fees earned in January, not yet billed to customers P65,000; d) portion of
prepaid rent applicable to January, P90,000.
Net income of Enrique Co. in January is

a. P569,000 b. P439,000 c. P352,000 d. P259,000

9. Accrued salaries payable of P5,000 was not recorded at December 31,2012. Supplies on hand of
P2,000 at December 31, 2013 were erroneously treated as expense instead of supplies inventory.
Neither of these errors were discovered nor corrected. The effect of these two errors would cause:
a. 2013 net income to be understated by P7,000 and December 31,2013 retained earnings
to be understated by P2,000
b. 2012 net income and December 31,2012 retained earnings to be understated by P5,000
each
c. 2012 net income to be overstated by P5,000 and 2013 net income to be understated by
P2,000
d. 2013 net income and December 31,2013 retained earnings to be understated by P2,000
each
10. Adam and Eve form a partnership on March 1, 2002 with the following investments:
Adam Eve
Cash P10,000 P35,000
Land 105,000
Furniture and fixtures 35,000

Adam and Eve agree to divide profits and losses in the ratio of 70:30, respectively, and to
assume the P20,000 mortgage on the land of Eve.

If Adam is required to make his share in the equity equal to 40% he must make an additional
investment of:

a. P48,000 b. P35,000 c. P80,000 d. P45,000

11. Abraham, Sarah and Rebecca are partners in a business and share in its earnings at respective
rates of 50%, 30% and 20%. At the beginning of the new fiscal year, they admit Isaac who is to
invest in the firm sufficient cash and give him one-third interest in the capital and in the earnings.
The following closing balance is taken from the old firm’s books:

Cash P200,000
Marketable securities 150,000
Accounts Receivable 450,000
Accounts Payable P100,000
Loans payable- Bank 60,000
Abraham, Capital 350,000
Sarah, Capital 200,000
Rebecca, Capital 90,000
P800,000 P800,000
The securities have a market value of P100,000 and an allowance of P50,000 is required to cover
bad debts. No other adjustments of the net assets are necessary, but the three old partners must
among themselves bring the balances in their capital accounts into agreement with their interest
in the earnings.

What must be invested by Isaac?

a. P320,000 b. P270,000 c. P370,000 d. P180,000 e. No answer given

12. A statement of the capital accounts of Alphaeus and Zebedee follows:

Alphaeus Zebedee
Balance, January 1 P72,000 P96,000
Add: additional investments, July 1 32,000 16,000
Net income for the year:
Salaries 12,000 14,400
Interest on average capital 5,280 6,240
Remainder 10,362 8,478
Totals P131,642 P141,118
Deduct drawings:
Monthly drawings P9,600 P10,800
Additional Drawings, December 31 2,042 318
Totals 11,642 11,118
Balances, December 31 P120,000 P130,000

If the net income remains the same the following year and if there is no change in the
partnership agreement or any additional investments, how much more or less will Zebedee total
share of the net income be than it was this year?

a. More by P6.00
b. Less by P6.00
 c. P27,648
d. P29,112
e. No answer given

Questions 13 through 15 are based on the following:

13. The adjusted trial balance of the Lee, Min and Ho partnership at December 31,2012 was as
follows:

Cash P50,000 Accounts Payable P80,000

Accounts Receivable-net 100,000 Loan from Ho 20,000
Non-monetary assets 800,000 Lee, Capital 300,000
Loan to Lee 50,000 Min, Capital 450,000
Expenses 400,000 Ho, Capital 350,000
Revenue 200,000
P1,400,000 P1,400,000
Additional information:
1. Partnership profits are divided 20%, 40% and 40% to Lee, Min and Ho respectively, after
salary allowances of P25,000 each to Lee and Min for the time devoted to the business
2. Due to disastrous results of 2012, the partnership agreed to liquidate the business as soon as
possible after January 1,2013 and to distribute available cash on a weekly basis
3. During the first week in January, P85,500 was collected on the accounts receivable and cash
was distributed on January 8,2013

Who among the partners will receive the first available cash to partners?

a. Lee b. Min c. Ho d. cannot be determined

14. How much is the capital balance of Lee after January 8,2013 cash distribution, net of loan?
a. P264,833 b. 214,833 c. 181,500 d. 206,500 e. No answer given

15. How much cash Min received?

a. P37,500 b. P6,000 c. P12,000 d. P18,000 e. No answer given

16. On January 1, 2013, the partners Harry, Hermione and Ron, who share profits and losses in the
ratio of 5:3:2 respectively, decided to liquidate their partnership. On this date the partnership
condensed balance sheet was as follows:

Assets Liabilities and Capital

Cash P50,000 Liabilities P60,000
Other Assets 250,000 Harry, Capital 80,000
P300,000 Hermione, Capital 90,000
Ron, Capital 70,000
P300,000
On January 15,2013 the first cash sale of other assets with a carrying amount of P150,000
realized P120,000. Safe installment payments to the partners were made on the same date.

How much cash should be distributed to each partner?

Harry Hermione Ron
a. P15,000 P51,000 P44,000
b. P40,000 P45,000 P35,000
c. P55,000 P33,000 P22,000
d. P60,000 P36,000 P24,000
e. No anwer given

17. JPIA’s Finests Co. issued 1,000 shares of its P5 par common stock to Finex as compensation for
1,000 hours of legal services performed. Finex usually bills P160 per hour for legal services. On
the date of issuance, the stock was trading on a public exchange at P140 per share. By what
amount should the additional paid-in capital account increase as a result of this transaction?
a. P135,000 b.P140,000 c.P155,000 d. P160,000

18. The partnership of Aaron and Luke provides for equal sharing of profits and losses. Prior to the
admission of a third person Elizabeth, the capital accounts are Aaron, P75,000 and Luke,
 P105,000. Elizabeth invests P90,000 for a P75,000 interest and partners agreed that the net
assets of the new partnership would be P270,000.

How much is Luke’s capital in the new partnership?

a. P112,500 c. P110,000
b. P105,000 d. P120,000
19. Xian, Hewie and Otaro are partners and share profits and losses equally. Each has a capital
balance of P1,800,000. Hewie retires from the partnership and receives P1,500,000. The
partnership assets are fairly stated.

What is the entry to record Hewie’s retirement?

a. Hewie, Capital P1,800,000 (dr)
Goodwill P 300,000 (cr)
Cash P1,500,000 (cr)

b. Hewie, Capital P1,800,000 (dr)

Partnership Assets P 300,000 (cr)
Cash P1,500,000 (cr)

c. Hewie, Capital P1,500,000 (dr)

Cash P1,500,000 (cr)

d. Hewie, Capital P1,800,000 (dr)

Otaro, Capital P 150,000 (cr)
Xian, Capital P 150,000 (cr)
Cash P1,500,000 (cr)

20. The balance sheet as of June 30,2013 for the partnership of Isaac, Dmitri and Maxwell shows the
following information:

Total Assets P360,000

Isaac, Loan P 20,000

Isaac, Capital 83,000
Dmitri, Capital 77,000
Maxwell, Capital 180,000
P 360,000

It was agreed among the partners that Isaac retires from the partnership and it was further agreed
that the assets be adjusted to their value of P408,000 as of June 30,2013. The partnership would
pay Isaac, P121,000 cash for his partnership interest and includes the payment of loan to him.
No goodwill is recorded. Isaac, Dmitri and Maxwell share profits and losses, 25%, 25% and
50% respectively.

What is Maxwell’s capital balance after the retirement of Isaac?

a. P120,000 c. P200,000
b. P180,000 d. P560,000

21. Anne and Dominique are partners with capital balances and profit and loss ratio as follows:

Capital Profit and Loss Ratio

Anne P24,500 60%
Dominique 15,500 40%
P40,000 100%
The partners decided to liquidate the partnership. The firm’s liabilities amount to P36,000
including P4,000 owing to Anne and P3,500 owing to Dominique on loans. After realization of
assets, the cash on hand amount to P37,500

The loss on realization amounts to

a. P2,500 c. P38,500
b. P4,000 d. P37,500
22. The following balance sheet summary, together with residual profit sharing rations, was
developed on April 1,2013 when the Catching Fire partnership began its liquidation:

Cash P280,000 Liabilities P120,000

Accounts Receivable 120,000 Loan from Primrose 40,000
Inventories 170,000 Peeta, Capital (20%) 150,000
Plan Assets- net 400,000 Primrose, Capital (40%) 400,000
Loan to Peeta 50,000 Katniss, Capital (40%) 310,000
P1,020,000 P1,020,000
If available cash except for a P10,000 contingency fund is distributed immediately, Peeta,
Primrose and Katniss respectively should receive

a. P0; P160,000; P30,000 c. P0; P140,000; P10,000

b. P32,000; P64,000; P64,000 d. P0; P145,000; P15,000

23. Partners Exodus and Leviticus who shared equally on the profits and losses had the following
balance sheet as of December 31, 2003

Assets Liabilities and Capital

Cash P120,000 Accounts Payable P172,000
Accounts Receivable 100,000 Exodus, Capital 140,000
Merchandise Inventory 140,000 Leviticus, Capital 120,000
Equipment 80,000
Accumulated Depreciation ( 8,000)
Total Assets P432,000 Total Liabilities and Capital P 432,000

Partners agreed to incorporate and have the new corporation absorb all the assets and assume the
liabilities of the partnership after effecting the following adjustment:
 Provision for allowance for bad debt of P10,000
 Recording the merchandise inventory at fair market value of P160,000
 Further depreciation of the equipment by P3,000

The corporation’s capital stock has a par value of P100 and partner where issued the
corresponding shares of stock equivalent to their adjusted capital accounts in the amount of
a. P273,000 c. P267,000
b. P280,000 d. P277,000

24. FutureCPAko Corp. issued 20,000 shares of P5 par common stock at P10 per share. On
December 31,2013, FutureCPAko’s retained earnings were P300,000. In March 2014,
FutureCPAko reacquired 5,000 shares of its common stock P20 per share. In June 2014,
FutureCPAko sold 1,000 of these shares to its corporate officers for P25 per share. FutureCPAko
uses the cost method to record treasury stock. Net income for the year ended December 31,2014
was P60,000

At December 31,2014, what amount shoukd FutureCPAko report as retained earnings?

a. P360,000 b. P365,000 c.P375,000 d. P380,000

25. The following stock dividends were declared and distributed by Moses Corp.:

Percentage of common share

Outstanding at declaration date Fair Value Par Value
10 P15,000 P10,000
28 P40,000 P30,800

What aggregate amount should be debited to retained earnings for these stock dividends?
a. P40,800 b. P45,800 c.P50,000 d. P55,000

26. At December 31,2012, Noah Corporation reported P1,750,000 of appropriated retained earnings
for the construction of a new office building, which was completed in 2013 at a total cost of
P1500,000. In 2013, Noah appropriated P1,200,000 of retained earnings for the construction of a
new plant. Also, P2,000,000 of cash was restricted for the retirement of bonds due in 2014
 In its 2013 balance sheet, Noah should report what amount of appropriated retained earnings?
a. P1,200,000 c. P1,450,000
b. P3,200,000 d. P2,950,000

27. Genesis Corp. had 700,000 shares of common stock authorized and 300,000 shares outstanding
at December 31, 2012. The following events occurred during 2013:

January 31 Declared 10% stock dividend

June 30 Purchased 100,000 shares
August 1 Reissued 50,000 shares
November 30 Declared 2-for-1 stock split

At December 31, 2013 how many shares of common stock outstanding did Genesis have?
a. P560,000 b. P600,000 c.P630,000 d. P660,000

28. Thaddeus Corp., a calendar-year company, had sufficient retained earnings in 2013 as a basis
for dividends, but was temporarily short of cash. Thaddeus declared a dividend of P100,000 on
April 1,2013, and issued promissory notes to its stockholders in lieu of cash. The notes which
were dated April 1,2013, had a maturity date of March 31,2014, and a 10% interest rate

How should Thaddeus account for the scrip dividend and related interest?
a. Debit retained earnings for P110,000 on April 1,2013
b. Debit retained earnings for P110,000 on March 31,2014
c. Debit retained earnings for P100,000 on April 1,2013 and Debit interest expense for
P10,000 on March 31,2014
d. Debit retained earnings for P100,000 on April 1,2013 and Debit interest expense for
P7,500 on December 31,2013

29. Mario Maurer Corp.’s current balance sheet reports the following stockholder’s equity:

5% cumulative preferred stock, par value P100 per share;

2,500 shares issued and outstanding P250,000
Common stock, par value P3.50 per share;
100,000 shares issued and outstanding 350,000
Additional paid in capital in excess of par value of common stock 125,000
Retained Earnings 300,000

Dividend in arrears on the preferred stock amounts to P25,000 including the current year. If
Mario Maurer were to be liquidated, the preferred stockholders would receive par value plus a
premium of P50,000. The book value per share of common stock is
a. P7.75 b. P7.50 c.P7.25 d. P7.00

30. Neseyeneenglehet Corp.’s outstanding capital stock at December 15,2013 consisted of the
following:
 30,000 shares of 5% cumulative preferred stock, par value P10 per share, fully
participating as dividends were in arrears
 200,000 shares of commons stock, par value P1 per share

On December 15,2013, Neseyeneenglehet declared dividends of P100,000. What was the

amount of dividends payable to Neseyeenglehet’s common stock holders?
a. P10,000 b. P34,000 c.P40,000 d. P47,000

***End of Examination***
 “For I know the plans I have for you” declares the LORD “plans to
prosper you and not to harm you, plans to give you hope and a future.”
Jeremiah 29:11

Many are the plans in the mind of a man,

but it is the purpose of the LORD that will stand.
Keep fighting Freshmen!
Just believe that you can and you’re halfway there!
PUSH and may the odds be ever in your favor!