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Solution AP Test Bank 1
Solution AP Test Bank 1
4. C Distribution costs:
Sales salaries and commissions (P75,000 + [P9,180 x 3%]) P75,275
Advertising expense (P48,270 + [P5,454 x 2/6]) 50,088
Depreciation expense Sales/delivery equipment (P18,300 + [P23,400 x 10% x 10/12]) 20,250
Freight expense 10,500
Travel expense sales representatives 13,680
Miscellaneous selling expenses 8,220
Total P178,013
5. B Administrative expenses:
Legal services P 6,675
Insurance and licenses 23,040
Depreciation expense office equipment 12,600
Utilities 19,200
Telephone and postage 4,425
Office supplies expense (P6,540 P3,675) 2,865
Officers salaries 109,800
Doubtful accounts expense (P783,000 x 2% = P15,660 P480) 15,180
Total P193,785
Accounts Accounts
Cash Receivable Inventory Payable
Per books P963,200 P2,254,000 P6,050,000 P4,201,000
AJE 1 (654,600) 310,000 --- ---
2 360,000 --- --- 372,400
3 a --- --- --- (175,000)
b --- --- 130,000 ---
c --- --- (637,500) ---
d --- --- 217,500 217,500
e --- --- 275,000 ---
Per audit P668,600 P2,564,000 P6,035,000 P4,615,900
AJES
1. Sales 360,100
Accounts receivable (P294,500 / 95%) 310,000
Sales discounts (P310,000 x 5%) 15,500
Cash 654,600
2. Cash (P372,400 P12,400) 360,000
Purchase discounts 12,400
Accounts payable 372,400
3. a Accounts payable 175,000
Purchases 175,000
b Inventory 130,000
Cost of sales 130,000
c Cost of sales 637,500
Inventory 637,500
d Purchases 217,500
Accounts payable 217,500
Inventory 217,500
Cost of sales 217,500
e Inventory 275,000
Cost of sales 275,000
f No adjusting entry
LABADA CO.
PROBLEM 6
Compensation Cumulative
Expense Compensation
Year Calculation for Period Expense
1 30,000 options x P5 fair value x P 50,000 P 50,000
Page 5
CONDESSA CO.
3. Land 900,000
Treasury shares (P40 x 21,000) 840,000
Share premium treasury 60,000
BARTOLO COMPANY
Page 6
PROBLEM NO. 9 SAMOA COMPANY/CHILE CO.
49. C 50. D
51. C Containers held by customers at Dec. 31, 2016 from deliveries in 2015 P85,000
Containers returned in 2017 from deliveries in 2015 (57,500)
Revenue from container sales P27,500
Page 7
59. B
Date of
Acquisition Cost 2013 2014 2015 2016 2017 Total
1/1/2013 P157,200 P31,440 P31,440 P15,720 P0 P0 P 78,600
120,000 24,000 24,000 24,000 24,000 18,000 114,000
132,000 26,400 26,400 26,400 0 0 79,200
9/30/2013 186,000 9,300 37,200 37,200 37,200 37,200 158,100
6/30/2014 235,200 0 23,520 47,040 47,040 47,040 164,640
6/30/2015 279,000 0 0 27,900 55,800 55,800 139,500
Correct depreciation P91,140 P142,560 P178,260 P164,040 P158,040 P734,040
Depreciation per client 97,440 154,752 153,802 108,791 82,233 597,018
Over (under)statement P 6,300 P 12,192 (P 24,458) (P 55,249) (P 75,807) (P 137,022)
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