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QUIZ-4

The document presents a quiz for an Intermediate Accounting course, featuring an income statement for Hangus-Pa Company and a financial position statement for Diit-Pang-Higus Corporation. It requires students to convert the income statement to a management accounting format and compute various financial metrics for the corporation. The quiz includes multiple-choice questions regarding the accuracy of provided financial statements and calculations.

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Gian Carlo Rosero
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Download as DOCX, PDF, TXT or read online on Scribd
3 views

QUIZ-4

The document presents a quiz for an Intermediate Accounting course, featuring an income statement for Hangus-Pa Company and a financial position statement for Diit-Pang-Higus Corporation. It requires students to convert the income statement to a management accounting format and compute various financial metrics for the corporation. The quiz includes multiple-choice questions regarding the accuracy of provided financial statements and calculations.

Uploaded by

Gian Carlo Rosero
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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AE17 INTERMEDIATE ACCOUNTING, PART III QUIZ-4

Name:_____________________________ Course/Year@sec.:________

1. The Income Statement of Hangus-Pa Company


Particulars November December
Sales Php.80,000.00 Php.90,000.00
Cost of Sales (48,000.00) (54,000.00)
Gross Profit 32,000.00 36,000.00
Selling Expenses (8,500.00) (8,800.00)
Administrative (9,200.00) (9,400.00)
Net Income Php.14,300.00 Php.17,800.00

The owner, Mr. Compute Pa. More, enlist your help to develop a CVP
relationship for planning and control.

Required: Convert the Income Statement of Financial Accounting to Income


Statement of Management Accounting using quantitative relationship to
answer the following questions.

i. Total Variable Cost is Php.58,500


ii. Total Contribution Margin is Php.31,500
iii. Variable Selling Expenses represent 3 percent of Total Cost of Sales.
iv. Net Income increases by Php.3,400.
v. Total Fixed Cost is Php.13,700
a. All statements are true.
b. Four statements are true.
c. Three statements are true.
d. None of the above is true.
e. Insufficient Information. Professional Judgment can't be applied.

2.Diit-Pang-Higus Corporation reported the following accounts for the


preparation of company’s Statement of Financial Position as of the year
ended December 31, 2016: Inventory 600,000, Accounts Receivable 590,000,
Cash 230,000, Treasury Shares 330,000, Financial Assets at Fair Value
through Profit or Loss 320,000, Financial Assets at Fair Value through
other comprehensive income 1,030,000, Land 810,000, Office Supplies 80,000,
Building and Equipment 3,560,000, Patent (Net) 470,000, Prepaid Insurance
50,000, Deferred Tax Assets 70,000, Discounts on Bonds Payable 100,000,
Total assets Php. 8,240,000, Accounts Payable Php.990,000, Allowance for
Uncollectible Accounts 80,000, Salaries Payable 150,000, Taxes Payable
250,000, Bonds Payable (Due 2019) 1,100,000, Unearned Rent (for 3 mos.)
90,000, Retained Earnings 2,300,000, Accumulated Depreciation on a
buildings and Equipment 920,000, Share Premium 1,040,000, Ordinary Share
Capital, Php10 Par 1,200,000, Accumulated Holding gains (Losses) -
Investments 120,000 through other comprehensive income, Total Credits
Php.8,240,000

Required: Compute the following, Current Assets, Non-Current Assets,


Current Liabilities, Non-Current Liabilities and Equity.

“He who walks honestly, walks securely.”

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