Junior Philippine Institute of Accountants

College of the Immaculate Conception

Peer Mentoring
Post- Test Solution Manual

Basic Accounting Add: Cash Received. 43,500

(SQUEEZE)
1. D Less: Unearned Rev, end (7,500)
2. A Service Revenue 42,000
3. D
4. B 16. A
5. C P115,200 insurance for 2 years
6. B (115,200/24) = 4,800 per month
7. C Sept. 1 – Dec. 31 (4,800*4) =
8. B 19,200
9. D
10. C Insurance Expense 19,200
11. B Prepaid Insurance 19,200
P7,200 for one year
Expense Dec. 1 – Dec. 31 17. D
(7,200/12) = 600 Cost 630,000
Less: Salvage (30,000)
Insurance Expense 600 Depreciable amount 600,000
Prepaid Insurance 600 Divide: 10 yrs. 10
12. A Dep. Exp per year 60,000
P200,000 for 5-day salary Multiplied:Dep. Exp
Salaries expense for 3 days Apr. 1 – Dec. 31(9/12) 0.75
(Monday-Wednesday) Dep. Exp 9 months 45,000
(200,000/5) = 40,000 per day
40,000*3 = 120,000 18. B
12,960 insurance for 4 years
Salaries Expense 120,000 (12,960/4) = 3,240 per year
Salaries Payable 120,000 Sept. 1 – Dec. 31 (3,240*(4/12))
13. A = 1,080
Supplies, beg. 16,000
Add: Purchases 29,000 Insurance Expense 1,080
Less:Suplies, end. (21,000) Prepaid Insurance 1,080
Supplies Expense 24,000
19. C
14. D Supplies, beg. 2,000
P5,600 insurance for 2 years Add: Purchases 8,000
(5,600/2) = 2,800 per year Less: Supplies, end (3,000)
Insurance expense 2,800 Supplies Expense 7,000
Prepaid Insurance 2,800
Supplies Expense 7,000
15. D Supplies 7,000
Unearned Rev. beg. 6,000

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20. A
Dep. Exp 50,000
Accum. Dep 50,000

21. B
20,000 insurance for one year
3 mos. Incurred already
(20,000*(3/12)) = 5,000

Insurance Expense 5,000

Prepaid Insurance 5,000

22. A
Interest Receivable 1,000
Interest Income 1,000

23. C
36,000 Unearned Revenue
One-fourth already rendered
(36,000/4) = 9,000

Unearned Revenue 9,000

Service Revenue 9,000

24. C
Supplies,beg. 1,500
Add: Purchases 2,570
Less:Supplies, end. (875)
Supplies Expense 3,195

25. A

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Financial Accounting and Reporting

Theories

1. B
2. B
3. D
4. D
5. B
6. D
7. C
8. B
9. C
Problem Solving

10. D

Cash on hand and in bank P2,500,000

Time deposit 3,000,000
Total Cash and cash equivalents 5,500,000

11. D

Cash on hand (500,000-100,000) 400,000

Petty cash fund 20,000
BDO Current account (3,000,000+200,000-50,000) 3,150,000
BPI Current account No. 1 400,000
Total cash 3,970,000

12. C

Checkbook Balance P50,000

Customer’s check not included 20,000
NSF Check (5,000)
Undelivered check to vendor 3,000
Total Cash 68,000

13. C
BDO Checking Account 2,400,000
Postdated check to payee 600,000
Correct amount 3,000,000
14. B
BPI Checking Account 1,600,000

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 Postdated check payable to payee 120,000
Correct amount 1,720,000
15. D

Bank A – demand deposit 135,000

Undeposited customers checks 52,000
Currency and coins on hand 5,800
Bank B – demand deposit 200,000
Treasury bills – 2 months maturity 150,000
Total cash and cash equivalents 542,800

16. C

Bills and coins on hand P 52,780

Traveler’s check 22,400
Petty cash including paid cash
vouchers of (2,000 - 1,650) 350
Postal money order 800
Checking account balance in the China Bank 22,000
Payroll fund 10,000
Tax Fund 5,000
Purchasing fund 8,000
Total Cash and Cash Equivalents 121,330

17. C

Currencies and coins P 2,000

Check drawn for petty cash replenishment 5,000
Check drawn for petty cash custodian 4,000
Correct petty cash amount 11,000

18. B

Currencies P 3,800
Coins 1,200
Check drawn by the company, payable to the order of
the petty cash custodian, representing her salary 12,500
Correct petty cash amount 17,500

19. C

Balance per book, 8/31/18 P180,500

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 Add: Book error (Understatement) 2,000
Less: NSF 6,000
Service Charge 1,000 (7,000)
Correct cash balance 175,500

20. D

Balance per book, 8/31/18 P4,400

Less: NSF 80
Service Charge 25 (105) (ANSWER)
Correct cash balance P4,295

Accounts Receivable 80
Cash in Bank 80
To revert back the NSF

Bank Charges 25
Cash in Bank 25

21. B

Balance per bank statement, 8/31/18 P39,140

Add: Deposit in transit, 8/31/18 5,000
Less: Outstanding checks, 8/31/18 5,200
Correct cash balance P38,940

22. A

Balance per bank statement, 8/31/18 P373,612

Add: Deposit in transit, 8/31/18 10,330
Less: Outstanding checks, 8/31/18 (30,205)
Bank error (2,150)
Correct cash balance P351,587

23. C

Accounts Receivable, Jan. 1, 2018 1,350,000

Credit Sales for 2018 3,650,000
Sales Returns on credit sales for 2018 (135,000)
Collections from customers on credit sales
(2,750,000)
during 2018
Estimated future sales returns related to
(115,000)
sales on account at Dec. 31, 2018
Estimated sales discounts related to sales on
account at Dec. 31, 2018 (95,000) 555,000
Accounts Receivable Dec. 31 1,905,000

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24. D
Selling Price 545,000
Less: Discounts 3/15 16,350
Net cash collection before freight 528,650
Less: Freigt FOB D, collect 5,150
Net cash paid 523,500

25. A
List Price 250,000
Less: Trade discounts
(15%*250,000) 37,500
(20%*(250,000-37,5000) 42,500
Invoice price 170,000
Less: Discount (3%) Net method 5,100
Accounts Receivable 164,700

Accounts Receivable 164,700

Sales discount 5,100
Inventory 170,000