Excel - Professional Services Inc.: Management Firm of Professional Review and Training Center (PRTC)
Excel - Professional Services Inc.: Management Firm of Professional Review and Training Center (PRTC)
Excel - Professional Services Inc.: Management Firm of Professional Review and Training Center (PRTC)
Question No. 2 - A
Accounts payable, 12/31/17 150,000
Add purchases:
Month Unit cost Quantity Total cost
January 65.20 1,500 97,800
February 65.40 1,500 98,100
March 65.60 1,500 98,400
April 65.80 1,500 98,700
May 66.00 1,500 99,000
June 66.20 1,500 99,300
July 66.40 1,500 99,600
August 66.60 1,500 99,900
September 66.80 1,500 100,200
October 67.00 1,500 100,500
November 67.20 1,500 100,800
December 67.40 1,500 101,100 1,193,400
Total 18,000 1,343,400
Less cash paid on accounts payable 943,400
Accounts payable, 12/31/18 400,000
Question No. 3 - A
Inventory quantity, 12/31/17 (P399,750/P65.00) 6,150
Add purchases (see no. 2) 18,000
Units available for sale 24,150
Less units sold (see no. 1) 18,400
Inventory quantity, 12/31/18 5,750
Month of purchase Quantity Unit cost Total cost
December 1,500 67.40 101,100
November 1,500 67.20 100,800
October 1,500 67.00 100,500
September (balance) 1,250 66.80 83,500
5,750 385,900
Question No. 4 - D
Question No. 5 - C
Question No. 9 - A
Sales proceeds 520,000
Carrying amount (P960,000 - P384,000) 576,000
Gain (Loss) on sale (56,000)
Question No. 10 - D
Question No. 12 - D
Patent (P1,680,000 - P280,000) 1,400,000
Trademark (P8,000,000 x 3/4) 6,000,000
Noncompetition agreement (P2,000,000 - P400,000) 1,600,000
Carrying amount of intangible assets, 12/31/18 9,000,000
Question No. 13 - A
Deferred tax asset, 12/31/17 360,000
Decrease in deferred tax asset:
Decrease in unearned rent (P200,000 x 35%) (70,000)
Increase in warranty liability (P150,000 x 35%) 52,500 (17,500)
Deferred tax asset, 12/31/18 342,500
Question No. 14 - B
Question No. 15 - A
Question No. 22 - A
Accounts receivable, 12/31/17 856,000
Add (deduct) transactions during 2018:
(a) Sales on account 7,670,000
(b) Collections on accounts receivable
[(P5,765,000 + (P930,000x.02)] (5,783,600)
(c) Notes received in settlement of accounts (825,000)
(f) Accounts written off (87,200)
Accounts receivable, 12/31/18 1,830,200
Question No. 23 - C
Accounts receivable, 12/31/18 1,830,200
Less allowance for doubtful accounts, 12/31/18 91,510
Accounts receivable, net 1,738,690
Question No. 24 - D
Accounts receivable, net (see no. 23) 1,738,690
Notes receivable (see below) 285,000
Notes receivable - dishonored (d) 30,900
Interest receivable (i) 6,300
Trade and other receivables, net 2,060,890
Notes receivable, 12/31/17 365,000
Add (deduct) transactions during 2018:
(c) Notes received in settlement of accounts 825,000
(d) Collections and dishonor of discounted notes (155,000)
(e) Collections of discounted notes (480,000)
(h) Collections of notes receivable (270,000)
Accounts receivable, 12/31/18 285,000
Question No. 25 - D
Question No. 26 - B
Question No. 27 - C
Principal 10,000,000
Direct origination cost 130,900
Origination fee received from borrower (P10M x .05) (500,000)
Carrying amount, 1/1/17 9,630,900
Question No. 29 - A
Question No. 30 - B
Question no. 32 - A
Selling price (4,000 shares x P62) 248,000
Less CA of shares sold (P630,000 x 4/10) 252,000
Loss on sale of Bulaklak shares (4,000)
Realized gain on shares sold (P40,000 x 4/10) 16,000
Gain on sale of Bulaklak shares 12,000
Question no. 33 - C
Yeye Bonel [(10,000+ 3,000) x P76.60] 995,800
Totoy Bibo [(8,000 - 4,000) x P68.50] 274,000
Pasaway (15,000 x P55.25) 828,750
Mayniladlad 205,550
Total fair value - TS 2,304,100
Question no. 34 - C
Bulaklak Inc. [(10,000 - 4,000) x P61] 366,000
Jumbo Hotdog (20,000 x P27) 540,000
Total fair value - AFS 906,000
Question no. 35 - A
Trading securites, 12/31/17 1,477,500
Cost of 3,000 additional Yeye Bonel shares, 3/1 229,500
CA of 4,000 Totoy Bibo shares sold, 4/15 (264,125)
Cost of 15,000 Pasaway shares purchased, 10/30 832,500
Trading securites, 12/31/18 before mark-to-market 2,275,375
Trading securites at market 2,304,100
Unrealized gain on TS - P/L 28,725
Fair value of AFS, 12/31/18 906,000
Total cost of AFS, 12/31/18 [(P590Tx6/10)+P490T] 844,000
Unrealized gain-AFS, 12/31/18 (Equity component) 62,000
Question no. 37 - D
Carrying amount, 1/1/17 (see no. 36) 3,746,368
Add discount amortization for 2017:
Effective interest (P3,746,368 x 10%) 374,637
Nominal interest (P4,000,000 x 8%) 320,000 54,637
Carrying amount, 12/31/17 3,801,005
Question no. 38 - D
Effective interest - 2018 (P3,801,005 x 10%) 380,101
Question no. 39 - A
Carrying amount, 12/31/17 (see no. 38) 3,801,005
Add discount amortization for 2018:
Effective interest (P3,801,005 x 10%) 380,101
Nominal interest (P4,000,000 x 8%) 320,000 60,101
Carrying amount, 12/31/18 3,861,106 *
CA of bonds converted (P3,861,106* x 1/2) 1,930,553
Par value of shares issued (P2,000,000/P1,000 x 6 x P100) 1,200,000
Net increase in share premium 730,553
Question No. 47 - C
Cash 150,000
Marketable securities, at fair value 55,000
Accounts receivable 450,000
Allowance for doubtful accounts (36,000)
Inventories (P430,000 + P12,000) 442,000
Prepaid insurance (P15,000 + P3,000) 18,000
Total current assets 1,079,000
Question No. 48 - B
Property, plant and equipment (P426,000 + P24,000) 450,000
Accumulated depreciation (P40,000 + P2,400) (42,400)
Property, plant and equipment, net 407,600
Current assets (see no. 47) 1,079,000
Total assets 1,486,600
Question No. 49 - A
Accounts payable and accrued expenses 592,000
Income taxes payable (see no. 46) 168,840
Accrued pension expense 22,500
Provision for loss from lawsuit 50,000
Total liabilities 833,340
Question No. 50 - D
Share capital 400,000
Retained earnings (see no. 46) 253,260
Total equity 653,260