Sample/practice exam 2 May, questions PDF

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TIE BREAKER QUESTIONS 1. Apex Co. accepted from a customer P1,000,000 face amount, 6-month, 8% note dated April 1, 2018. On the same date, the entity discounted the note without recourse at 10% discount rate. What amount of cash was received from the discounting? a. 900,000 b. 990,000 c. 988,000 d. ...

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TIE BREAKER QUESTIONS 1. Apex Co. accepted from a customer P1,000,000 face amount, 6-month, 8% note dated April 1, 2018. On the same date, the entity discounted the note without recourse at 10% discount rate. What amount of cash was received from the discounting? a. 900,000 b. 990,000 c. 988,000 d. 972,000 2. Vanessa Company reported the following data at year-end: Franchise Computer software Deferred charges Patent Customer list purchased Copyright Deposit with advertising agency to promote goodwill Bond sinking fund Goodwill Trademark Research and development cost

P 1,000,000 1,500,000 100,000 2,500,000 500,000 700,000 400,000 1,300,000 4,000,000 900,000 2,000,000

What total amount should be reported as intangible assets? a. 11,100,000 b. 11,500,000 c. 10,600,000 d. 13,100,000 3. The accounts below appear in the December 31, 2018 trial balance of Tala Company: Authorized share capital P30,000,000 Unissued share capital 5,000,000 Subscribed share capital 3,000,000 Subscription receivable 1,000,000 Share premium 10,000,000 Retained earnings unappropriated 6,000,000 Retained earnings appropriated 2,000,000 Revaluation surplus 4,500,000 Treasury shares, at cost 1,500,000 In its December 31, 2018 statement of financial position, Tala should report total equity at a. P49,000,000 b. P48,000,000 c. P43,500,000 d. P58,000,000

4. On January 1, 2014, Toma Company purchased equipment for P4,000,000. The equipment has useful life of 10 years and a residual value of P400,000. On January 1, 2018 the entity determined that the useful life of the equipment was 12 years from the date of acquisition and the residual value was P480,000. What is the depreciation of the equipment for 2018? a. 175,000. b. 260,000 c. 360,000 d. 300,000...