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Question 1: Ivonne Inc., a Philippine Corporation, purchased an inventory items from a supplier in Japan on November 5, 2030, for 100,000 yen, when the spot rate was P0.4295. At Ivonne’s December 31, 2030, the spot rate was P0.4245. On January 15, 2031, Ivonne bought 100,000 yen at the spot rate of P0.4345 and paid the invoice. How much should Ivonne report as part of net income for 2030 and 2031 as foreign exchange transaction gain or loss? A. Year 2030, 0; Year 2031, (500) A. Year 2030, (1,000); Year 2031, 500 A. Year 2030, 500; Year 2031, (1,000) A. Year 2030, (500); Year 2031, 0 Question 2: The statement of financial position of KPR Partnership shows the following information as of December 31, 2020: Cash 360,000 Liabilities 900,000 Non-Cash Assets 5,040,00 K, loan 450,000 0 K, capital 2,250,000 P, capital 1,260,000 R, capital 540,000 Total 5,400,00 Total 5,400,000 0 The profit and loss ratio is 3:2:1 for K, P and R respectively. The non-cash assets were realized as follows: Cash Realized Book Value January 1,080,000 1,620,000 February 630,000 1,386,000 March 2,250,000 2,034,000 The cash is distributed to partners as it becomes available. How much is the total loss absorbed by partner K? A. P420,000 B. P180,000 C. P360,000 D. P540,000 Question 3: The following balances as of the end of 2020 for the partnership of D, F and L, together with their respective profit and loss ratio, were as follows: Assets 1,170,000 D, loan 58,500 D, capital (20%) 273,000 F, capital (20%) 253,500 L, capital (60%) 585,000 D decided to withdraw from the partnership. The partners agreed to revalue the assets to their fair market value of P1,404,000 as of December 31, 2020. Partner D will be

paid P397,800 for D’s total interest in the partnership. After the retirement of D, what is the capital balance of F? A. P280,800 B. P295,425 C. P300,300 D. P253,500 Question 4: The following partial transactions took place between the home office and its two branches, Bacolod Branch and Cebu Branch. a. Upon the instruction of the home office, Cebu Branch affected a fund transfer of P25,000 to Bacolod Branch. Bacolod Branch collected a Cebu Branch’s account receivable of P35,000 less 2% discount. b. Cebu Branch paid P250,000 representing the traveling expenses of Mr. Jay Ayala, a senior Vice-president, when the latter attended the regional conference in Canada. Of the amount paid, 60% was charged to the home office, 25% to Bacolod Branch and the balance to Cebu Branch. c. Home office shipped merchandise costing P200,000 to Cebu Branch. Freight of P3,000 was paid by the home office. It is the policy of the company to bill its branches at 25% above cost. d. Upon the instruction of the home office, Cebu reshipped the above merchandise to Bacolod Branch. Had the goods been shipped directly to Bacolod Branch, the freight would have been only P4,200. What is the balance of the Investment in Cebu Branch in the home office books? A. P520,000 B. P524,800 C. P271,800 D. P527,800 Question 50: What is the balance of the Home Office in the books of Bacolod branch? A. P378,700 B. P370,300 C. P374,500 D. P312,000 Question 5: Josh, Ivan and DJ are partners in a business and share its earnings at the ratio of 5:3:2, respectively. At the beginning of the fiscal year, they admit Vonne, who is to invest in the firm sufficient cash to give her a 1/3 interest in the capital and profits of the firm. The following closing balances are taken from the old firms books: Cash Marketable securities Accounts Receivable

200,000 150,000 450,000

Accounts Payable Loans payable-bank Josh, capital Ivan, capital DJ, capital Total

100,000 60,000 350,000 200,000 90,000 800,000

800,000

The securities have market value of P100,000 and an allowance of P50,000 is required to cover bad debts. No other adjustment of the net assets is necessary, but the three old partners must, among themselves, bring the balances of their capital accounts into agreement with their interest in the profits. What settlement must be made among the partners? A. Ivan pays DJ P8,000 B. Josh receives from DJ P38,000 C. Josh received from Ivan P30,000 D. DJ pays Josh P30,000 Question 6: On January 2, 2020 Vista Corp enters into a contract with a customer for the construction of building. The contract price is P30,000,000. The parties also agreed that, when the building is complete, it will be inspected and assigned a green building certification level. If the building achieves the certification level specified in the contract, Vista will be entitled to an incentive payment of P2,500,000. Vista uses the percentage of completion method in measuring its progress on the contract. At contract inception, the entity cannot conclude that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur with respect to the inclusion of the incentive payment to contract price due to bad weather conditions, it does not expect that it can finish the building on time for it to be entitled to the incentive payments. The estimated costs to complete in year 2020 are P12,000,000. As of December 31, 2020, it incurs total costs of P6,750,000. In 2018, it incurs total costs of P11,300,000. Due to good weather conditions, it now expect that it can finish the building on time for it to be entitled to the incentive payments. It expects that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The estimated costs to complete as of the end of 2020 are P950,000. What is the total realized gross profit for year 2018? A. P13,500,000 B. P16,874,000 C. P8,775,000 D. P12,825,000 Question 33: What is the total realized gross profit for year 2020? A. P11,250,000 B. P-0-

C. P4,050,000 D. P3,375,000 Question 7: On November 19, 2022, Risk Company, a Philippine Company ordered merchandise from Wales Company for 31,800 pounds. The merchandise was delivered on December 18, 2022, the shipping date (FOB shipping point). Risk Company paid the invoice on January 28, 2023. The spot rates for a pound on the respective dates were: November 19, 2022 P76.90 December 2, 2022 P76.15 December 18, 2022 P75.75 December 31, 2022 P72.35 January 28, 2023 P73.15 What amount will affect profit or loss in 2022? A. P144,690 gain B. P25,440 loss C. P120,840 gain D. P108,120 gain Question 8: Orocan Inc. consigned 12 cabinets, which costs P960 each, to SM Store, which was to sell it for a 15% commission based on selling price. Orocan Inc. paid freight cost amounting P240 and reimbursed SM Store P250 for its delivery to customers. On August 30, 2030, SM Store reported that it had sold 8 cabinets, 6 for cash at P1,800 and 2 for credit basis at P2,160 of which it had collected 20% as down payment. How much is the amount remitted by SM Store to Orocan Inc? A. P9,396 B. P9,146 C. P11,664 D. P9,229 Question 9: GV Company purchased 70% ownership of DL Company on January 1, 2020, at underlying book value. While each company has its own sales forces and independent product lines, there are substantial inter corporate sales of inventory each period. The following inter-corporate sales occurred during 2021 and 2022: Year Seller Cost of Product Buye Sales Unsold at Year Sold to Sold r Price Year-end Outsider 448,000 DL 640,000 140,000 2022 202 GV 1 202 DL 312,000 GV 480,000 77,000 2023 2 202 GV 350,000 DL 437,500 63,000 2023 2

The following data summarized the results of their financial operations for the year ended, December 31, 2022: GV DL Company Company Sales 3,850,000 1,680,000 Gross Profit 1,904,000 504,000 Operating Expenses 770,000 280,000 Ending Inventories 336,000 280,000 Dividend Received from affiliate 126,000 -0Dividend Received from Non70,000 Affiliate For the year ended 2022, how much is the consolidated net income attributable to parent’s shareholders equity and non-controlling interest in net income? A. P1,350,335; P80,115 B. P1,301,335; P59,115 C. P1,476,335; P59,115 D. P1,476,335; P80,115 Question 56: For the year ended 2022, how much is the consolidated sales and consolidated cost of goods sold? A. P4,612,500; P2,202,050 B. P5,530,000; P2,202,050 C. P4,612,500; P2,475,550 D. P4,612,500; P2,206,950 Question 10: Chen Corp. uses the cost to cost method to account for its construction contracts. The contract price of the project is P1,800,000. Chen Corp estimates that it will take 36 months to complete the contract. The following information for its construction contract is presented below: 2018 2019 2020 Cost Incurred to date P400,000 P1,260,000 unknown Realized Gross P50,000 P310,000 P80,000 Profit What is the total estimated cost to complete in 2020? A. P140,000 B. P1,660,000 C. P1,400,000 D. P1,360,000 What is the percentage of completion rate in year 2018? A. 20% B. 30% C. 32% D. 25%

Question 11:. On January 1, 2020, Papa sold equipment with book value P80,000 and a 10-year remaining life to its wholly owned subsidiary, Mama for P120,000. Both entities use the straight-line method of depreciation. On December 31, 2020, the separate company financial statement of the entities shows the following balances: Books of Mama Books of Papa Depreciation expense 12,000 Gain on Sale of 40,000 Equipment Equipment 120,00 0 Accumulated 12,000 Depreciation What working paper elimination entry to consolidate financial statements on December 31, 2020 should be included? A. Debit to Equipment for P40,000 B. Debit to accumulated depreciation for P4,000 C. Credit to gain on sale of equipment for P40,000 D. Credit to depreciation expense for P12,000 Question 12: Frank, Chito and Dale, formed a partnership on January 1, 2020, with each partner contributing P600,000 cash. The partnership agreement provided that Dale receives a salary of P30,000 per month for managing the partnership business. Dale has never withdrawn any money from the partnership. Frank withdrew P120,000 in each of the years 2020 and 2021, and Chito invested an additional P240,000 in 2020 and withdrew P240,000 during 2021. Due to an oversight, the partnership has not maintained formal accounting records, but the following data as of December 31, 2021 is available. Cash P855,000 Accounts payable P70,000 Accounts receivable 600,000 Notes payable 315,000 Merchandise inventory 1,200,000 Computer equipment, net 1,110,000 Prepaid expenses 120,000 Total P3,885,000 P885,000 Additional data: 1. The partners agree that income for 2021 was about half of the total income for the first two years of operations. 2. The partnership agreement provides that profits, after allowance for Dale’s salary, are to be divided each year on the basis of the beginning of the year capital balances. How much is the share in profit/loss of Dale for year 2020? A. P240,000

B. P507,273 C. P120,000 D. P480,000 Question 44: For the year 2020, how much is the ending capital balance of Chito? A. P2,640,000 B. P1,080,000 C. P600,000 D. P960,000 Question 13: A Manila Company maintains several branches that market the products that it produces. Merchandise is billed to the branches at cost, the branches paying freight charges from the home office to the branch. On November 15, 2013, Branch No. 1 ships parts of its stock to Branch No. 3 upon authorization of the home office. Originally, Branch No. 1 had been billed for this merchandise at P16,000 and had paid freight charges on the shipment from the home office of P3,500. Branch No. 3 upon receiving the merchandise, pays freight charges on the shipment from Branch No. 1 of P2,500. If the shipment had been made from the home office directly to Branch No. 3, the freight cost to Branch No. 3 would have been P4,000. What is the entry of the home office record the excess freight due to inter-branch transfer? A.

Shipment to Branch-No. 3 17,500 Excess freight 2,000 Shipment to Branch-No. 1 19,500

B.

Investment in Branch-No. 3 17,500 Excess freight 2,000 Investment in Branch No. 1 19,500

C.

Shipment to Branch-No. 3 17,500 Shipment to Branch-No. 1 17,500

D.

Investment in Branch-No. 3 16,000 Investment in Branch-No. 1 16,000

Question 14: The following data pertain to installment sales of Ladines Incorporated: Down payment 20% Installment sales in year 1 P545,000 Installment sales in year 2 P785,000 Installment sales in year 3 P968,000 Mark up on cost 35% Collection after down payment are: 40% during the year of sale

35% during the year after 25% on third year What is the realized gross profit for year 1? A. P109,387 B. P114,825 C. P73,474 D. P148,112 Question 15: Rondel Corp produces special kind of insecticides. Materials are added at the end of the production of Fabricating Dept. for the month of March 2018, the following data were gathered: Work in Process, March 1 60% Work to be done as to conversions cost 80,000 Started in Process during the month 200,000 Transferred to Finishing Dept. 170,000 Lost units in processing 20,000 Work in Process, March 31 60% 90,000 complete as to conversion cost The costs corresponding to the lost units were absorbed by the remaining units. Which of the following is incorrect? A. The EUP of conversion cost under FIFO method totaled 192,000 B. The EUP of conversion cost under FIFO is less than 48,000 compared to Average C. The EUP of work in process end materials under average method is equal to FIFO method D. The EUP of materials under FIFO and Average are the same Question 16: On August 1, 2016, Love Construction Corp. began constructing a P1,750,000 contract. As of year-end, the following are relevant information provided by the corp.: 2016 2017 2018 Construction in Progress P367,500 P1,124,375 (unknown) Estimated costs to P1,333,125 P625,625 complete Costs Incurred P354,375 P807,500 P563,125 What is the RGP in 2018 using the zero profit method? A. P48,625 B. P-0C. P50,625 D. P62,500 Question 17: Mike Co., a Philippine corporation, sold inventory on December 1, 2030, with payment of 32,500 British pounds to be received in sixty days. The pertinent exchange rates were as follows: Date Spot rate

December 1, 2030 P1.7241 December 31, P1.8182 2030 January 30, 2031 P1.66665 For what amount should Sales be credited on December 1? A. P18,850 B. P59,091.50 C. P17,875 D. P56,033.25 Question 18: On January 1, 2022, Rey Company purchased 80% of the stocks of Beth Corporation at book value. The stockholders’ equity of Beth Corporation on this date showed: Common stock P1,140,000 and Retained earnings P980,000.  On April 30, 2022, Rey Company acquires a used machinery for P168,000 from Beth Corp. that was being carried in the latter’s books at P210,000. The asset still has a remaining useful life of 5 years.  On the other hand, on August 31, 2022, Beth Corp. purchased an equipment that was already 20% depreciated from Rey Co. for P690,000. The original cost of this equipment was P750,000 and had a remaining life of 8 years.  Net income of Rey Co. and Beth Corp, for 2022 amounted to P720,000 and P310,000. Dividends paid totaled to P230,000 and P105,000 for Rey Co. and Beth Corp., respectively. On the consolidated financial statements in 2022, how much would be the Net income attributable to parent’s shareholders’ equity and non-controlling interest net income? A. P826,870; P69,280 B. P834,150; P69,280 C. P834,150; P62,000 D. P826,870; P62,000 Question 19: Tiger, Inc. owns a branch in Bicol. As of the end of the current year, the home has an Investment in Bicol Branch account with a P77,000 debit balance. At the same time, the branch is reporting a Home Office account with a P61,000 credit balance. An investigation uncovers the following: 1. During the year, the home office shipped merchandise costing P16,000 to the branch at a billed price of P28,000. The branch accidentally recorded the shipment as P38,000. 2. At year’s end, the home office assigned P14,000 in expenses to the branch, the branch recorded this allocation as P19,000. 3. Also, at year’s end, the branch transferred P31,000 in cash to the home office. The office has not yet recorded this money. What is the reconciled balance of the reciprocal accounts? A. P77,000 B. P46,500 C. P46,000

D. P53,000 Question 20: The following data were taken from the statement of realization and liquidation of Mendoza Corp. for the quarter ended September 30, 2021 Liabilities to be liquidated Supplementary charges Liabilities not liquidated Supplementary credits Assets acquired Liabilities liquidated Assets to be realized Assets realized Liabilities assumed

P285,000 169,100 210,000 192,500 136,000 158,000 107,500 175,000 83,000

The beginning capital balances of ordinary shares and retained earnings are P102,000 and P29,600, respectively. A net income of P87,400 for the period. How much is the beginning balance of cash? A. 209,100 B. 241,600 C. 293,000 D. 309,100 Question 21: The following selected accounts appeared in the trial balance of Aquinde Corp. as of December 31, 2031. IAR-2030 30,000 IAR-2031 400,000 Inventory, December 31, 2030 140,000 Purchases 1,110,000 Repossession 6,000 Installment sales 850,000 Sales 770,000 DGP-2030 108,000 Additional information as of December 31, 2030: IAR 2029 as of December 31, 2030 is P270,000. Inventory of new and repossessed merchandise as of Dec. 31, 2031 is P190,000. Gross profit percentage on regular sales during the year is 30%. Repossession was made during the year. It was 2030 sale and the corresponding uncollected account at the time of repossession was P15,600. How much is the total realized gross profit in 2031, net of loss on repossession? A. P491,760

B. P487,320 C. P488,400 D. P402,000 Question 22: On January 2, 2022, Police Company acquired 90%, of the outstanding shares of Son Inc. at book value. During 2022 and 2023, intercompany sales amounted to P2,000,000 and P4,000,000, respectively. Police Company consistently recognized a 25% mark-up based on cost while Son Inc, had a 25% gross profit on sales. The inventories of the buying affiliate, which all came from inter-company transactions shows: December 31, 2022 December 31, 2023 Police P240,000 P160,000 Son 100,000 40,000 On October 1, 2022, Son Inc., purchased a piece of land costing P1,000,000 from Police Company for P1,500,000. On December 1, 2023, Son Inc., sold this land to unrelated party for P1,500,000. On the other hand, on July 1, 2023, Son Inc., sold a used photocopier with carrying value of P60,000 and remaining life of 3 years to Police Company for P42,000. Separate Statement of Comprehensive Income for the two companies for the year 2023 follow: Police Company Son Inc Sales 25,000,000 14,000,000 Cost of Sales (15,000,000) (8,400,000) Gross Profit 10,000,000 5,600,000 Operating Expenses (6,000,000) (3,800,000) Operating Profit 4,000,000 1,800,000 Loss on Sale of Office (18,000) Equipment Dividend Revenue 40,000 Net income 4,000,000 1,822,000 Compute the following amounts for/as of December 31, 2023. How much is the consolidated Net Income attributable to Parent? A. P6,169,800 B. P6,191,300 C. P6,369,000 D. P6,183,300 Question 27: Compute the following amounts for/as of December 31, 2023. How much is the consolidated Operating Expense? A. P9,788,000 B. P9,803,000 C. P9,800,000 D. P9,789,500

Question 39: How much is the non-controlling interest in Net Income? A. P188,200 B. P184,200 C. P185,700 D. P189,700 Question 57: Compute the following amounts for/as of December 31, 2023, how much is the Consolidated Gross Profit? A. P19,632,000 B. P15,712,000 C. P15,632,000 D. P15,584,000 Question 23: Tilman Textile Company has a single branch in Bulacan. On March 1, 2019, the home office accounting records included an Allowance for Overvaluation of Inventories Bulacan Branch ledger account with a credit balance of P32,000. During March, merchandise costing P36,000 was shipped to the Bulacan Branch and billed at a price representing a 40% markup on the billed price. On March 31, 2019, the branch prepared an income statement indicating a net loss of P11,500 for March and ending inventory at billed prices of P25,000. What is the amount of adjustment for Allowance for Overvaluation of Inventories to reflect the ...