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Final Exam Intermediate Acctg. 3 Copy of Long Problems

1. The ledger of LEEWAY TOLERANCE Co. as of December 31, 20x1 includes assets of ₱800,000 and liabilities of ₱380,000. Additional information is provided about specific asset and liability accounts. 2. The records of HACK TO CHOP Co. on December 31, 20x1 show sales of ₱2,000,000 and various revenue, expense, gain, and loss accounts. 3. The comparative statement of financial position and statement of comprehensive income of Entity A for the year ended December 31, 20x1 show total assets increasing to ₱1,490,000 from ₱1,400,

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2K views

Final Exam Intermediate Acctg. 3 Copy of Long Problems

1. The ledger of LEEWAY TOLERANCE Co. as of December 31, 20x1 includes assets of ₱800,000 and liabilities of ₱380,000. Additional information is provided about specific asset and liability accounts. 2. The records of HACK TO CHOP Co. on December 31, 20x1 show sales of ₱2,000,000 and various revenue, expense, gain, and loss accounts. 3. The comparative statement of financial position and statement of comprehensive income of Entity A for the year ended December 31, 20x1 show total assets increasing to ₱1,490,000 from ₱1,400,

Uploaded by

Ferlyn Trapago Butial
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© © All Rights Reserved
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NAME: Date:

Professor: Section: Score:

INTERMEDIATE ACCOUNTING 3
FINAL GRADING EXAMINATION
Copies of Long problems
For question no.1
1. The ledger of LEEWAY TOLERANCE Co. as of December 31, 20x1 includes the following:
Assets  
Petty cash fund 14,000
Cash in bank 40,000
Accounts receivable (including ₱30,000 pledged accounts) 70,000
Accounts receivable – assigned 50,000
Equity in assigned receivables 20,000
Notes receivable (including ₱40,000 notes receivable
discounted) 90,000
Notes receivable discounted 40,000
Advances to subsidiary 64,000
Held for trading securities 40,000
Inventory 124,000
Deferred charges 36,000
Cash surrender value 12,000
Bond sinking fund 200,000
Total assets 800,000

Liabilities  
Accounts payable 80,000
Estimated warranty liability 28,000
Loans payable related to assigned receivables (due in 12
months) 30,000
Accrued expenses 26,000
Bonds payable (due on December 31, 20x2) 200,000
Premium on bonds payable 16,000
Total liabilities 380,000

Additional information:
- Petty cash fund includes IOU’s from employees amounting to ₱4,000. The remaining balance of
₱10,000 represents bills and coins.
- The cash in bank balance represents the balance per bank statement. As of December 31, 20x1,
deposits in transit amounted to ₱20,000 while outstanding checks amounted to ₱3,000. Included
in the bank statement as of December 31, 20x1 is an NSF check amounting to ₱16,000.
- Accounts receivable (unassigned) includes uncollectible past due accounts of ₱8,000 which need
to be written-off.
- Also included in accounts receivable (unassigned) is a ₱10,000 receivable from a customer which
was given a special credit term. Under the special credit term, the customer shall pay the ₱10,000
receivable in equal quarterly installments of ₱1,250. The last payment is due on December 31,
20x3.
- The held for trading securities include the reacquisition cost of LEEWAY Co.’s shares amounting
to ₱8,000.
- Inventory includes ₱60,000 goods in transit purchased FOB Destination but excludes ₱24,000
goods in transit purchased FOB Shipping point.

Use the following information for the next 2 questions: #4 and #5


The records of HACK TO CHOP Co. on December 31, 20x1 showed the following information:
Sales 2,000,000
Sales discounts 20,000
Cost of sales 800,000
Distribution costs 96,000
Administrative costs 240,000
Casualty loss on typhoon 40,000
Dividends received from investments in FVPL 24,000
Dividends received from investment in associate 48,000
Share in the profit of an associate 72,000
Dividends declared and paid 28,000
Interest expense 44,000
Unrealized gain on investments in FVPL 30,000
Unrealized gain on investments in FVOCI 38,000
Income tax expense 300,000
Loss on revaluation 26,000
Remeasurements of the net defined benefit liability (asset) - gain 22,000
Correction of understatement in depreciation in prior year 32,000
Translation adjustment of foreign operation – loss 8,000

Use the following info for the next 3 questions: #35, #36 and #37
The comparative statement of financial position and statement of comprehensive income of Entity A
on December 31, 20x1 are shown below:

Entity A
Statement of Financial Position
As of December 31, 20x1

ASSETS 20x1 20x0


Cash and cash equivalents 440,000 200,000
Trade and other receivables 130,000 120,000
Inventory 120,000 480,000
Prepaid assets 40,000 160,000
Total current assets 730,000 960,000
Property, plant & equipment 760,000 440,000
Total noncurrent assets 760,000 440,000

1,490,00 1,400,00
TOTAL ASSETS 0 0

LIABILITIES
Trade and other payables 620,000 560,000

EQUITY
Owner’s capital 870,000 840,000

TOTAL LIABILITIES & 1,490,00 1,400,00


EQUITY 0 0
   

Entity A
Statement of Comprehensive Income
For the year ended December 31, 20x1

Sales 1,000,000
Cost of sales (600,000)
GROSS PROFIT 400,000
Rent income 150,000
Depreciation expense (240,000)
Insurance expense (120,000)
Bad debts expense (30,000)
Loss on sale of equipment (40,000)
PROFIT FOR THE YEAR 120,000
Other comprehensive income -
COMPREHENSIVE INCOME FOR THE
120,000
YR.

Additional information:
 Equipment with carrying amount of ₱240,000 was sold for ₱200,000 resulting to a loss on sale of
₱40,000.
 Acquisition of equipment for cash amounted to ₱800,000.
 Owner drawings totalled ₱90,000.

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