Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Receipts
66,405
76,800
64,819
(1)
62,150
64,819
(4,742)
3,156
3,054
675
Ending
77,395
65,810
(4,742)
5,857
(5,857)
2,238
(472)
(386)
386
75,410
(2)
77,652
(3)
62,577
(4)
75,304
77,150
60,304
(165)
175
(175)
(165)
(3,054)
3,160
3,160
(675)
675
675
(895)
1. B
2. A
3. D
4. A
5. C
(3,156)
2,238
(472)
Disb
75,410
-
492
(895)
(492)
77,652
62,577
Question No. 6 - B
PV of Note (P220,000 x 0.8264)
Less cost of land
Gain on sale
181,808
125,000
56,808
Amortization schedule:
Interest income
Jan. 1, 2005
Dec. 31, 2005
18,181
Dec. 31, 2006
20,011
Question No. 7 - C
Year
2006
2007
2008
Principal
200,000
200,000
200,000
600,000
Carrying amount
181,808
199,989
220,000
Interest
24,000
16,000
8,000
Total
224,000
216,000
208,000
PVF
0.8772
0.7695
0.6750
PV
196,493
166,212
140,400
503,105
503,105
400,000
103,105
Nom. Int.
Disc. Amort.
24,000
16,000
8,000
46,435
32,936
17,524
Principal
Carrying amount
503,105
200,000
349,540
200,000
182,476
200,000
-
Question No. 8 - B
Interest income for 2005 (P181,808 x 10%)
18,181
Question No. 9 - A
NR - 1/1/05 sale [P220,000-(P181,808+P18,181)]
NR - 1/1/06 sale (P503,105 x 14%)
Total interest income in 2006
20,011
70,435
90,446
Question No. 10 - D
Carrying amount, 1/1/06 (NR 1/1/06 sale)
Add discount amortization in 2006:
Effective interest (P503,105 x 14%)
70,435
Nominal interest (P600,000 x 2%)
24,000
Carrying amount, 12/31/06 before collection of principal
Less principal amount received
Carrying amount, 12/31/06
503,105
46,435
549,540
200,000
349,540
140,000
8,000
4,000
2,400,000
12,000
80,000
3,200
2,424,000
2,564,000
83,200
2,480,800
168,000
12,000
1,600,000
Question No. 13 - A
Inventory, 12/31/05
Add net purchases for 2006
Total goods available for sale
Less cost of sales for 2006 [(P2,480,800-P4,000) x (960/1,600)]
Inventory, 12/31/06
Question No. 14 - D
Estimated inventory, 12/31/06
Physical inventory, 12/31/06
Estimated inventory shortage
1,612,000
1,780,000
200,000
1,580,000
12,000
1,568,000
180,000
1,568,000
1,748,000
1,486,080
261,920
261,920
168,000
93,920
Question No. 15 - C
PROBLEM NO. 4 - Remy Company
Question No. 16 - C
Item a [2,000 units x (P9.50-P5.90)]
Item b
Item c
Item d
Net understatement
Under(over)
7,200
17,500
(2,900)
1,500
23,300
Question No. 17 - D
Question No. 18 - B
Unadjusted net income
Add(deduct) adjustments:
Item a
Item b
Item c
Item d
Corrected net income
2005
370,000
2006
526,000
7,200
17,500
(2,900)
21,800
391,800
(17)
(7,200)
(17,500)
2,900
(21,800)
504,200
2005
370,000
391,800
(21,800)
2006
526,000
504,200
21,800
(18)
Question No. 19 - D
Originally reported net income
Corrected net income
Difference
Question No. 20 - D
Total
896,000
896,000
-
206,500
7,500
199,000
198,500
4,500
70,000
90,000
(20,000)
Question No. 23 - C
Interest income on Virgo Co. bonds (P300,000 x 12%)
Interest income on Phil. tresury notes (P200,000 x 9% x 8/12)
Total
Question No. 24 - D
Asia Textile Common (6,000 shares x P44)
Virgo Co. Bonds (P300,000/P1,000 x P950)
Carrying value, 12/31/06
Question No. 25 - C
Trading securities, 1/1/06
Purchase of Phil. treasury notes, 4/1
Carrying value of S-Mart shares sold, 7/1
Sale of Phil. treasury notes, 12/1
Trading securities, 12/31/06 before mark-to-market
FV of trading securities, 12/31/06
Unrealized loss on TS
194,000
5,000
36,000
12,000
48,000
264,000
285,000
549,000
640,600
194,000
(90,000)
(194,000)
550,600
549,000
1,600
3,000
6,000
7,000
16,000
Question no. 27 - A
Silko Company (3,000 x P20)
Monroe Company (2,000 x P22)
Treasury notes (P40,000 x 1.02)
Total FV of trading securities, 12/31/05
60,000
44,000
40,800
144,800
Question no. 28 - C
Cost of Silko Company (3,000 x P16)
Cost of Monroe Company (2,000 x P33)
Cost of Treasury notes (P40,000 x 1.01)
Total
Total FV of trading securities, 12/31/05
Unrealized loss on trading securities
48,000
66,000
40,400
154,400
144,800
9,600
Question no. 29 - D
Monroe shares sold, 3/23/06:
Selling price (2,000 shares x P17)
Less CV of shares sold
Treasury notes sold, 6/30/06
Selling price (P40,000 x 1.005)
Less CV of treasury notes
Total realized loss
Question no. 30 - A
34,000
44,000
40,200
40,800
(10,000)
(600)
(10,600)
31 C
Balance, 12/31/05
Total cost of building wing
Donated building
Total
Less accumulated depreciation:
Balance, 12/31/05
Depreciation for 2006
Main building (P2,400,000/25)
2,400,000
330,000
400,000
3,130,000
1,200,000
96,000
13,750
4,000
Original life
Less expired life:
Age on 12/31/05 (P1,200,000/P2,400,000) x 25 yrs
Additional expired life (from Jan. to June)
1,313,750
1,816,250
25
12.50
0.50
13
12
450,000
200,000
650,000
33 A
Proceeds from sale
Less book value on the date of sale (10/1/06)
Cost
Accumulated depreciation (P960,000/10 x 4)
520,000
960,000
(384,000)
Loss on sale
576,000
56,000
34 C
Land
Land improvements
Buildings
Machinery & equipment
Total
Balance
12.31.05
450,000
2,400,000
2,770,000
5,620,000
Accumulated depreciation
Land improvements
Buildings
Machinery & equipment
Total
1,200,000
546,500
1,746,500
Cost
Carrying value
Land
Land improvements
Buildings
Machinery & equipment
35 A
450,000
1,200,000
2,223,500
3,873,500
Additions
Retirements
200,000
100,000
730,000
960,000
1,030,000
960,000
5,000
113,750
253,000
371,750
384,000
384,000
Balance
12.31.06
650,000
100,000
3,130,000
1,810,000
5,690,000
5,000
1,313,750
415,500
1,734,250
650,000
95,000
1,816,250
1,394,500
3,955,750
68,000
72,000
140,000
278,000
138,000
Question No. 37 - D
Cost, 12/31/06
Semitruck No. 1 (sold, 1/1/04)
Semitruck No. 2 (acquired, 7/1/00)
Semitruck No. 3 (traded-in, 7/1/03)
Semitruck No. 4 (damaged and sold, 7/1/05
Semitruck No. 5 (acquired, 7/1/03)
Semitruck No. 6 (acquired, 7/1/05)
Accumulated depreciation, 12/31/06
Semitruck No. 2 (fully depreciated as of 7/1/05)
Semitruck No. 5 (P340,000 x 3.5/5)
Semitruck No. 6 (P360,000 x 1.5/5)
Carrying amount, 12/31/06
220,000
340,000
360,000
220,000
238,000
108,000
920,000
566,000
354,000
Question No. 38 - A
Question No. 39 - B
Question No. 40 - A
Net income
over (under)
2003:
Unrecorded loss on trade-in:
Trade-in value (P340,000 - P150,000)
190,000
Carrying value (P300,000 x 3.5/5)
210,000
Overstatement of depreciation expense:
Semitruck No. 1 (P180,000/5)
36,000
Semitruck No. 2 (P220,000/5)
44,000
Semitruck No. 3 (P300,000/5 x 6/12)
30,000
Semitruck No. 4 (P240,000/5)
48,000
Semitruck No. 5 (P340,000/5 x 6/12)
34,000
Should be depreciation expense
192,000
Depreciation expense per books
203,000
2004:
Unrecorded loss on sale:
Sales proceeds
35,000
Carrying value (P180,000 x 1/5)
36,000
Overstatement of depreciation expense:
Semitruck No. 2 (P220,000/5)
44,000
Semitruck No. 4 (P240,000/5)
48,000
Semitruck No. 5 (P340,000/5)
68,000
Should be depreciation expense
160,000
Depreciation expense per books
211,000
2005:
Unrecorded loss on disposal:
Sales proceeds
7,000
Insurance proceeds
25,000
Total
32,000
Carrying value (P240,000 x 2/5)
96,000
Erroneous credit to Miscellaneous Income
Overstatement of depreciation expense:
Semitruck No. 2 (P220,000/5 x 6/12)
22,000
Semitruck No. 4 (P240,000/5 x 6/12)
24,000
Semitruck No. 5 (P340,000/5)
68,000
Semitruck No. 6 (P360,000/5 x 6/12)
36,000
Should be depreciation expense
150,000
Depreciation expense per books
244,500
2006:
Overstatement of depreciation expense (see no. 36)
Net understatement of Retained Earnings as of 12/31/06
20,000
(11,000)
9,000 (38)
1,000
(51,000)
(50,000) (39)
64,000
7,000
(94,500)
(23,500) (40)
(138,000)
(202,500)
9,200,000
(780,000)
920,000
118,000
9,458,000
Question no. 42 - A
Current service cost (see no. 41)
Interest cost (P9,200,000 x 10%)
Expected return on plan assets
Amortization of deferred gain
Net benefit expense
118,000
920,000
(900,000)
(65,000)
73,000
Question no. 43 - C
Fair value of plan assets, January 1
Employer contributions
Actual return on plan assets
Benefits paid to retirees
Fair value of plan assets, 12/31/06
10,070,000
850,000
990,000
(780,000)
11,130,000
Question no. 44 - B
Excess over corridor (P65,000 x 10)
Corridor (P10,070,000 x 10%)
Unrecognized gain, 1/1/06
Amortization of deferred gain - 2006
Excess actual over expected return on plan assets
(P990,000 - P900,000)
Unrecognized gain, 12/31/06
650,000
1,007,000
1,657,000
(65,000)
90,000
1,682,000
Question no. 45 - D
Jan. 1, 2006 Dec. 31, 2006
Debit: Fair value of plan assets
10,070,000
11,130,000
9,200,000
1,657,000
10,857,000
9,458,000
1,682,000
11,140,000
(787,000)
(10,000)
12.31.05
Preferred stock
Common stock
48,000
1/15
2/01
4/15
6/01
832,000
1/15
2/01
4/15
5/01
5/31
Retained earnings
220,000
3/15
5/01
9/15
12/31
(75,000)
4/15
5/31
80,000
6,000
4,000
5,320
8,000
120,000
96,000
127,680
12,000
(3,750)
(133,000)
(8,494)
100,000
(17,200)
27,900
1,025,000
12.31.06
80,000
63,320
46 B
47 A
1,195,680
48 B
174,756
50 D
(64,300) 49 A
1,449,456
2/01
3/15
88,000
126,000
Retained earnings
Dividends payable - common
80,000
8,000
6,000
120,000
3,750
3,750
4/15
4/15
5/01
5/31
6/01
9/15
Treasury stock
Cash (400 shares x P43)
Cash (2,000 shares x P50)
Common stock (2,000 shares x P2)
APIC - excess over par value of common
17,200
17,200
100,000
4,000
96,000
39,900
27,900
12,000
5,320
Retained earnings
Dividends payable - preferred (80,000 x 5%)
Dividends payable - common (29,960 x P15)
8,494
5,320
127,680
5,320
4,000
4,494
100,000
100,000