EASY

Problem 1 A. P 1,800,000
Cash Receipts
Cash Receipts 7,200,000.00 No. of Months
Cash Earned during the year 5,400,000.00 Monthly Cash Receipts
Deferred revenue 1,800,000.00
Monthly Cash Receipts
No. of months
Cash earned during the yea

Problem 2 D. P 12,000
Year End:
Asset 210,000.00 Assets
Liability 120,000.00 Liability
Equity 90,000.00 Equity, end
Investments 72,000.00 Equity, beg
Withdrawals 75,000.00 Net Income
Equity, end 87,000.00

Problem 3 D. P 4,200

Price of the asset in the market

Estimated commission to brokers and dealers
estimated transport cost and other cost necessary to get asset to the mark
Value of the Biological Asset

Problem 4 B. Debit on Purchase Discount lost of P 1,400

List Price 100,000.00 Purchases

Trade Discount 20% Accounts Payable
List Price after trade discount 80,000.00
Trade Discount 10%
Invoice Price 72,000.00

Invoice Price 72,000.00 Accounts Payable

Purchase Discount 2% PD, Lost
PD, Lost 1,440.00 Cash

Problem 5 D. 651,460

Problem 6 C. P 335,000
12/30/09 Depreciation 42,000.00 Useful Life
SYD
Cost of Equipment 330,000.00 Remaining Useful Life
Residual Value 5,000.00
Cost of Equipment, 12/30/05 335,000.00

Problem 7 C. P 335,000

12/30/09 Depreciation 42,000.00 Useful Life

SYD
Cost of Equipment 330,000.00 Remaining Useful Life
Residual Value 5,000.00
Cost of Equipment, 12/30/05 335,000.00
 AVERAGE
Problem 1
7,200,000.00
12 AR - Beg
600,000.00 Credit Sales
Collections from Customers
600,000.00 Accounts Written-Off
9 Uncollectibles per aging of Receivables
5,400,000.00 AR - End

Problem 2

270,000.00 Land Held by Quirino

171,000.00 Vacant Bldg. owned by Quirino
99,000.00 Hotel owned by Sugo
87,000.00 Investment Properties
12,000.00
Problem 3

Annuity
Installment
5,000.00 Contest Prize expense
500.00
300.00 Problem 4
4,200.00
D. 0

Problem 5
72,000.00
72,000.00 Total Expense
Expenses Charge - 12/31/07
Expenses Charge - 12/31/08
Expenses Charge in IS - 12/31/09

70,560.00 Problem 6
1,440.00
72,000.00 Sales - 1st Quarter
Warranty Claims
Total

Sales - 2nd Quarter

Warranty Claims
Total

Total Warranty Claims charged in 2nd Quart

10
55
7
Problem 7

PV of 1 for 4 periods at 8%

Loan Receivable
10 Less: PV of Loan
55 PV of principal
7 PV of interest
 DIFFICULT
D. P 1,600,000
Problem 1
1,300,000.00
5,400,000.00 Annual Membership Fee
4,750,000.00 Direct cost of the Fitness Evaluation
125,000.00
165,000.00
1,660,000.00 Problem 2

A. P 75,000,000 Principal Amount

PV of 1, 4 periods
5,000,000.00 Total
20,000,000.00
50,000,000.00 Interest
75,000,000.00 PV of OA, 4 periods
Total
C. P 468,250
Bonds
418,250.00
50,000.00 Problem 3
468,250.00
D. NIL

Problem 4
C. P 3.9 million
1,200 shares * 48
8,000,000.00 PV @ grant date
2,000,000.00
2,100,000.00 Vesting Period
3,900,000.00

B. P 4,000,000

20,000,000.00 Phantom Shares

5% Share Price
1,000,000.00
Vesting
30,000,000.00
10% Previous
3,000,000.00

4,000,000.00
A. 67,700 Problem 5

0.735 Estimated Cost - Year 1

Total Estimated Cost
200,000

73,500 FV of Land
58,800 132,300
67,700 Income from Gov't Grant

Problem 6:

UseFul Life
Cost of Asset
Salvage Value
Carrying Amount of the Asset

1st Year:
CA
SYD
Remaining Useful Life
Depreciation

2nd Year:
CA
SYD
Remaining Useful Life
Depreciation

3rd Year:
CA
SYD
Remaining Useful Life
Depreciation

Problem 7

Note Receivable
Interest rate
1/1/09 - 5/31/09

Note Receivable
Interest rate
6/1/09 - 12/31/09

Interest Income
 DIFFICULT

B. 4,500

4,000
ness Evaluation 500
4,500

A. P 175,518

3,000,000.00 Principal Amount 3,000,000.00

0.683 Bonds 2,619,582.00
2,049,000.00 380,418.00
Interest on Bonds 204,900.00
180,000.00 175,518.00
3.1699
570,582.00

2,619,582.00

A. 21,867

57,600
50,000
7,600
3
2,533.33

Year 1 Year 2

1,000 1,000
52 55
52,000 55,000
1 of 3 2 of 3
17,333.33 36,666.67
- 17,333.33
19,333.33
2,533.33 2,533.33
19,866.67 21,866.67
 B. 24,000,000

20,000,000.00
100,000,000.00
20%

120,000,000.00
20%
24,000,000.00

A. P 4,000 GAIN

5 Cost of Asset 130,000.00

130,000.00 Accumulated Depreciation 96,000.00
10,000.00 Carrying Amount after Year 34,000.00
120,000.00

Sellping Price 38,000.00

120,000.00 Carrying Amount after Year 34,000.00
15 Gain on Sale 4,000.00
5
40,000.00

120,000.00
15
4
32,000.00

120,000.00
15
3
24,000.00

B. P 290,000

3,000,000
12%
5
150,000

2,000,000
 12%
7
140,000

290,000