FINAL STRETCH!

1. These are short-term, highly liquid investments that are readily convertible to known amounts
of cash and which are subject to an insignificant risk of changes in value
a. Cash b. Trading Securities c. Cash equivalents

2. What are the conditions when bank overdrafts may be net against cash in bank balance?
a. When there are multiple deposits in the same bank
b. When the entity has multiple deposits and both accounts are unrestricted
c. When there are multiple deposits in the same bank and both accounts are unrestricted

3. Accounts receivable are subsequently measured at:

a. Cost b. Price of the sale c. Net realizable value

4. Bad debts expense is presented in the income statement as:

a. Selling Expense b. Administrative Expense c. Other Comprehensive
Income

5. A note receivable is measured using present value formulae of cash flows when:
a. It is interest bearing
b. It is non-interest bearing and has a term of over 1 year
c. It is non-interest bearing and has a term of exactly 1 year

6. The interest income/expense on a note receivable/payable is equal to:

a. The interest actually paid on the note
b. The interest actually paid on the note, plus the amortization of any premium or discount
c. The interest actually paid or receivable on the note, plus the amortization of any premium
or discount

7. When should a receivable be classified as Stage 2?

a. When credit risk has significantly increased
b. When there is objective evidence of impairment
c. When the debtor has failed to pay one of the installments on time

8. Which of the following is not a financial asset?

a. Inventory b. Accounts Receivable c. Investments held at FVOCI

9. The “hold to collect” business model is characterized by:

a. Multiple buy and sell transactions
b. An investment in stocks held for several years
c. Collections of purely interest and principal repayments

10. These are rights to purchase additional shares of a corporation at a fixed price:
a. Stock rights b. Call Options c. Share dividends

11. This occurs when total outstanding shares are decreased, while individual par value increases
a. Share dividends
b. Reverse share split
c. Reincorporation and quasi-reorganization
 12. The price of a stock between the date of declaration and the date of record is called:
a. Right-on b. Ex-right c. Option

13. These are materials or supplies to be consumed in the rendering of services

a. PPE b. Expenses c. Inventory

14. Inventory is recognized

a. When the goods are ordered
b. When the goods have been physically received
c. When legal title to the goods have been acquired

15. This refers to the estimated net amount currently obtainable if the asset is at the end of the
useful life
a. Residual value b. Net realizable value c. Fair value less cost to sell

16. This is the systematic allocation of a wasting asset over its useful life
a. Depletion b. Depreciation c. Amortization

17. This refers to land or building that have been acquired either for capital appreciation or to be
leased out to earn rent
a. Inventory b. Investment Property c. Property, Plant and Equipment

18. Biological assets are subsequently measured at

a. Fair Value b. Net realizable value c. Fair Value less cost to sell

19. A change in useful life is a

a. Change in accounting policy
b. Change in accounting estimate
c. Event subsequent to the reporting period

20. Choose your fighter

a. Diabellstar, b. Promethean Princess, c. Sky Striker Ace = Zero
The Black Witch Bestower of Flames

The cash balance per Miku’s books is ₱280,000 while the cash balance per bank statement is ₱320,000.
The following items are available:
Credit memo – ₱20,000
Debit memo – ₱15,000
Deposits in transit – ₱75,000
Outstanding checks – ₱25,000
The disbursements per books are overstated by ₱45,000.
The bank debits are understated by ₱40,000.
21. How much is the adjusted cash balance?
a. P320,000 b. P330,000 c. P345,000
Benio had an allowance balance of P15,000 on Jan. 1, 2023. Sales are made on 2/15, n/30.
Accounts Receivable by aging as of December 31, 2023:
Age Amount
0-15 days from sale P200,000
16-30 days 100,000
31-60 days 50,000
61-120 days 40,000
Over 120 days 80,000

Under Percentage of Accounts Receivable, 10% of Accounts receivable would be uncollectible

Under Aging, the following estimates are reasonable:
Overdue but less than 61 days old 5%
61-120 days 10%
Over 120 days 25%
22. How much is the bad debts expense under percentage of AR?
a. P15,000 b. P32,000 c. P47,000
23. How much is the bad debts expense under Aging?
a. P11,500 b. P15,000 c. P26,500

The business model for Yunru’s investments is to profit from trading on price changes. As of December
31, 2023 the equity investment portfolio consisted of the following:
Investment Quantity Cost Fair Value
A 1,000 shares P45,000 P63,000
B 2,000 shares P120,000 P126,000
C 2,000 shares P216,000 P180,000

During the year 2024, Yunru sold 2,000 shares of B for P114,600 and purchased 2,000 more shares of A
for P99,000, and 1,000 shares of XX for P48,000. On December 31, 2024, the portfolio consisted of the
following:
Investment Quantity Fair Value
A 3,000 shares P180,000
C 2,000 shares P66,000
XX 1,000 shares 36,000
24. How much is the unrealized gain or loss during 2024?
a. P12,000 b. P27,000 c. P108,000
25. How much is the realized gain or loss during 2024?
a. P5,400 b. P6,000 c. P11,400

The following transactions occurred for Miku:

Jan 1 Purchased 1,000 A shares for P60,000
Feb 1 Purchased 14,000 A shares for P1,050,000
Aug 1 Sold 1,000 A shares for P100,000. FIFO is used
Oct 1 Received 50% share dividend
Nov 2 1-for-4 share split
Dec 1 Sold 5,000 shares for P1,050,000

26. How many is the realized gain on Dec. 1?

a. 50,000 b. 800,000 c. 987,500

Benio conducted a physical count on December 31, which came up with a total cost of P3,600,000.
The following items were excluded from the count:
• Goods sold to a customer still held by Gardna, but separated in the warehouse. The customer will
come pick up the item. Cost of P200,000.
• A packing case containing a product in the shipping room was not included because it was marked
"hold for shipping instructions" Cost of P80,000
• Goods in process held by an outside processor for further processing P300,000
• Goods shipped by a vendor FOB shipping point on Dec. 28 received January 10. Cost of P50,000

27. How much is the inventory on December 31?

a. 3,830,000 b. 3,930,000 c. 4,030,000
A building was constructed by Yunru. The building was finished by January 1, 2024. Total construction
costs on the building amounted to P20,000,000. The building has a 20-year useful life with a P1,500,000
residual value. On July 1, 2025, the building had to be re-examined. Engineers believe the building actually
has a remaining useful life of 25 years from July 1, 2025 but no residual value.

28. How much is the depreciation during 2024?

a. P925,000 b. P1,000,000 c. P1,075,000
29. How much is the depreciation during 2025?
a. P804,750 b. P834,750 c. P935,250

Miku decided to construct a condominium in Makati. Miku decided that instead of selling the
condominium, the entity would hold the property for purposes of earning rentals by letting out space to
business executives . The construction was completed on January 1, 2023. The cost of construction is
P50,000,000. Useful life of the condo is 25 years and residual value is P5,000,000. An independent
valuation provided the following fair value at each subsequent year-end:

December 31, 2023 49,000,000

December 31, 2024 46,500,000
December 31, 2025 50,000,000

30. How much is the value of the condo under the cost model at December 31, 2025?
31. How much is the value of the condo under the fair value model on December 31 2025?
32. How much is the impairment loss of the condo under the fair value model on December 31, 2024?
33. How much is the impairment loss of the condo under the cost model on December 31, 2024?

Benio provided the following:

Cost of animals, Feb 2024 600,000
Fair value less cost to sell of animals December 31, 2024 1,300,000
Dec. 30, 2024 Fair value less cost to sell of milk harvested on that date 280,000
Fair value less cost to sell of milk Dec. 31, 2024 270,000
Net realizable value of milk Dec. 31, 2024 260,000

34. How much is the gain in change on fair value less cost to sell in 2024?
a. P700,000 b. P970,000 c. P980,000
35. How much is the value of the milk on December 31, 2024?
a. P260,000 b. P270,000 c. P280,000

Yunru company purchased a machine for P6,000,000 on January 1, 2023. The company received a
government grant of P2,000,000 in relation to this machine. The machine has a useful life of 10 years.

36. How much is the balance of deferred income from government grant on December 31, 2025?
a. P200,000 b. P1,400,000 c. P1,600,000
37. How much is the depreciation expense in 2025?
b. P200,000 b. P400,000 c. P600,000

Miku issued a 10% note receivable on January 1, 2023 to acquire a machine. The note receivable had the
following terms: P1,000,000 face due December 31, 2025, 10% interest due every December 31. The
prevailing market rate for notes of this type was 12%. The machine had useful life of 5 years with no
residual value.

38. How much is the cost of the machine?

b. P711,780 b. P782,958 c. P951,963 d. P1,000,000
39. How much is the depreciation on the machine in 2023?
a. P142,356 b. P156,592 c. P190,393 d. P200,000
40. How much is the interest expense in 2023?
a. P85,414 b. P93,955 c. P100,000 d. P114,235.60
Benio has petty cash in the hands of a custodian, with a general ledger balance of P10,000. The
custodian’s box contained the following on December 31, 2023:

Bills:
P20 bill 5 pieces
P50 bill 5 pieces
P100 bill 10 pieces
P1,000 bill 1 piece
Coins 1,050
Vouchers 4,500
IOU from employees 1,000
Postage Stamps* 500
Check drawn by Benio to the order of petty cash custodian 1,000
Personal check drawn by the petty cash custodian 500

*The postage stamps were not paid out of petty cash and thus not included in vouchers.
41. How much is the shortage or overage, if any, on December 31, 2023?
a. P90 Shortage c. P110 shortage e. P500 overage
b. P100 Shortage d. P400 overage

Yunru received the following notes from customers:

Detail Date note received Maturity date Terms Amount

From Tanya 1/1/2023 1/1/2024 --- P500,000
From Eva 1/1/2022 1/1/2025 8% int due annually 750,000
every Jan 1
From Carville 1/1/2023 1/1/2026 --- 1,000,000
From Dugan 12/31/2023 12/31/2025 4% int due annually 800,000
every Dec 31
It is determined that the prevailing market rate of interest for notes is 8%.
42. How much is the initial measurement of Notes Receivable from Tanya?
a. P500,000 b. P462,963 c. P37,037 d. P0
43. How much is the initial measurement of Notes Receivable from Eva?
a. P750,000 b. P833,252.73 c. P930,000 d. P0
44. How much is the total carrying value of Notes Receivable on Dec. 31?
a. P3,050,000 c. P2,843,832 e. P2,850,274
b. P3,012,963 d. P2,786,768
45. How much is the total interest income for 2023?
a. P60,000 c. P100,000 e. P188,022
b. P59,434.84 d. P160,000

The following information relates to Miku:

31-Mar 30-Apr
Book balance 396,600 540,000
Book debits 180,000
Book credits 36,600
Bank balance 280,900 445,380
Bank debits 26,900
Bank credits 191,380
Credit memos 36,000 42,000
Debit Memos 10,920 16,020
Deposit in Transit 46,780 131,400
Outstanding checks 23,000 19,800
Additional information:
Collection in March of P14,000 were recorded as 41,000
Checks drawn in April amounting to P12,000 cleared the bank for P21,000. Investigation shows that the
company committed the error.
Deposit in March amounting to P100,000 was erroneously credited by the bank as P10,000.\

46. Perform proof of cash

 On January 1, 2022, Company purchased the following. All investments are held for trading.

Cost FV 12/31/2022

A ordinary shares 600,000 650,000

B preference shares 350,000 200,000
C bonds 500,000 400,000

On October 1, 2023, the entity sold 1/2 of A ordinary shares for P375,000

On December 31, 2023, the fair value of all remaining investments is P800,000.

47. How much is the unrealized gain or loss in 2022?

48. How much is the unrealized gain or loss in 2023?
49. How much is the realized gain or loss in 2023?

Yunru invests her excess cash in equity securities during 2023. The business model for these investments
is to profit from trading on price changes.

As of December 31, 2023 the equity investment portfolio consisted of the following:

Investment Quantity Cost Fair Value

Haihead 1,000 shares P45,000 P63,000
Last Bastion 2,000 shares P120,000 P126,000
Wings of Coronia 2,000 shares P216,000 P180,000
Total P381,000 P369,000

During the year 2024, Yunru sold 2,000 shares of Last Bastion for P114,600 and purchased 2,000 more
shares of Haihead for P99,000, and 1,000 shares of Paradox Project for P48,000. On December 31, 2024,
Yunru's equity securities portfolio consisted of the following:

Investment Quantity Fair Value

Haihead 3,000 shares P180,000
Wings of Coronia 2,000 shares P66,000
Paradox Project 1,000 shares 36,000
Total P282,000

During the year 2025, Yunru sold 3,000 shares of Haihead for P119,700 and 500 shares of Paradox
Project for P9,900.

On December 31, 2025, Yunru's equity investment portfolio consisted of the following:

Investment Qty Fair Value

Paradox Project 500 shares P18,000
Wings of Coronia 2,000 shares P246,000
Total P264,000

Find the following:

50. The balance of each investment on each December 31
51. The unrealized gain or loss to be reported in profit or loss for each year
52. The realized gain or loss to be reported in profit or loss for each year

53. Miku sold goods to customer on FOB Destination, Freight Collect.

The list price is P10,000. There is a discount of 2/10, n/30.
The freight is P50.
How much is the receivable from customer at the moment of sale under the gross method?

54. Benio sold a land costing P5,000,000 for a total of P7,000,000 on Jan 1, 2024.
The buyer paid P1,000,000 down and signed a two-year promissory note for the remainder of the
purchase price plus 12% interest annually.
How much is the gain on sale?
55. Yunru factored P3,000,000 of accounts receivable. The factor assessed a fee of 6% and retained
a holdback equal to 10% of the accounts receivable.

How much is the proceeds from factoring?

56. Miku acquired 12,000 shares of other company at P3 per share. Miku incurred P1,800 brokerage
commission on the acquisition. Shares are held for trading.

On December 31, the quoted price per share is P5.

How much is the unrealized gain in OCI?

57. Benio bought equity securities in 2022. All are held for trading.

Cost Fair Value, 12/31/2022 Fair Value, 12/31/2023

A 50,000 26,000 40,000
B 26,000 40,000 40,000
C 70,000 60,000 50,000

How much is the net unrealized gain or loss in 2023?

58. Yunru received 40,000 share rights to purchase one new share at P80 for every two rights. The
market value of the right at issuance is P10.

30,000 rights were exercised, then 6,000 rights were sold for P12 per right.

What is the ending balance of stock rights?

On January 1, 2022, Miku purchased the following. All investments at FVOCI.

Cost FV 12/31/2022

A ordinary shares 600,000 650,000

B preference shares 350,000 200,000
C bonds 500,000 400,000

On October 1, 2023, Miku sold 1/2 of A ordinary shares for P375,000

On December 31, 2023, the fair value of all remaining investments is P800,000.

59. How much is the unrealized gain or loss in 2022?

60. How much is the unrealized gain or loss in 2023?
61. How much is the total effect on Retained Earnings in 2023?

62. At December 31, 2023, Benio had the following balances in NorthSouth Bank:

Checking Account #101 175,000

Checking Account #201 (10,000)
Money Market Account 25,000
90-day certificate of deposit 50,000
180-day certificate of deposit 80,000

What is the total cash and cash equivalents?

63. Yunru received her August 2023 bank statement. The August 31 cash balance in her accounting
books is P520,000, while the balance on the bank statement is P410,000. You determine the
following information

Check 2345, for P45,000, issued to a supplier, is not yet presented to the bank.
A P205,000 check deposit with deposit slip no. 0989, is not yet credited to her account.
A customer deposited P60,000 to her bank account. You have not yet recorded this collection of
account receivable in her accounting books.
The bank paid P10,000 monthly mobile phone charges directly out of her account.

How much is the adjusted cash in bank?

64. Miku reported allowance of doubtful accounts of P900,000 at the beginning of the year.

Writeoffs for the year were 200,000 and recoveries for 100,000.

Doubtful accounts are provided for as follows:

Age Balance Probability of collection

30 days or less 3,000,000 95%

31 days - 60 1,500,000 80%
61 days - 180 1,200,000 75%
181 days - 1 yr 1,200,000 50%
Older - to be written off 150,000 0%

How much is the doubtful accounts expense?

65. On January 1, 2024, Benio sold a generator costing P700,000.

The buyer paid P100,000 down and signed a P900,000 noninterest bearing note payable in three
equal annual installments of P300,000.
The prevailing interest rate for a note of this type is 12%.

How much is the gain on sale?

Yunru made the following transactions of PPE.

• Purchased a land with an old building on January 8, 2023 for a total price of P5,500,000.
The old building is to be demolished. The demolition costs totaled P550,000, with
salvaged parts of P50,000.
• A new building was constructed on the above land. The building was finished by
December 1, 2023, but final inspection checks and necessary but minor revisions meant
the building could only be ready for use by January 1, 2024. A P990,000 fee for the
architect was paid. A building permit was also acquired at a cost of P10,000.
• Total cost of labor and materials on the building amounted to P18,500,000. The building
has a 20 year useful life with a P1,500,000 residual value. The building is to be depreciated
on the straight line method, and reported under the revaluation model.
• On July 1, 2024, the building had to be re-examined. Engineers believe the building
actually has a remaining useful life of 25 years from July 1, 2024 but no residual value. No
other changes were noted.
• On December 31, 2024, the fair value of the building was determined to be P19,912,620.
• On December 31, 2028, the building was sold for P13,000,000.

66. How much is the initial cost of the building?

67. How much is the depreciation for 2024?
68. How much is the gain on sale in 2028?

On January 1, 2023, Yunru bought a machine with a cost of P4,250,000. She determined that the
residual value of the machine was P250,000, its useful life was 10 years, and that it could produce
200,000 units.
69. How much is the depreciation in 2023 under Straight Line?
70. How much is the depreciation in 2023 under SYD?
71. How much is the depreciation in 2023 under Double Declining?
72. How much is the depreciation per unit under Units of Production?
73. How much is the depreciation in 2024 under SYD?
74. How much is the depreciation in 2025 under SYD?
75. How much is the depreciation in 2026 under Double Declining?
76. How much is the depreciation in 2027 under Double Declining?
 Miku purchased a machine on April 1, 2023. The machine had a useful life of 6 years.
The following were incurred to purchase the machine:
Purchase price P490,000
Installation cost 30,000
Cost to test 20,000
The machine will be reported according to the revaluation model.
On December 31, 2024, the machine had a fair value of P397,800.
The machine would be sold on April 1, 2026 for P350,000 cash.

77. How much is the cost of the machine?

78. How much is the carrying value of the machine on December 31, 2023?
79. How much is the depreciation for 2023?
80. How much is the depreciation for 2024?
81. How much is the revaluation surplus if any on December 31, 2024?

Benio, with a Diamond Pickaxe, decided to craft netherite.

In January 2024, Benio purchased a mineral mine for P25,000,000 with removable ancient debris ore
estimated by geological survey at 1,500,000 tons. The property has an estimated residual value of
P1,000,000 after the ore has been extracted. Benio incurred P10,200,000 of development cost in
tunneling and similar activity preparing the property.
During 2024, 100,000 tons were removed.
During 2025, 150,000 tons were removed.

82. How much is the depletion for the year 2024?

83. How much is the depletion for the year 2025?

In 2024, Yunru acquired for P9,000,000 a property which is believed to include a mineral deposit.
Geological estimates indicate that approximately 1,000,000 tons of mineral may be extracted for 20
years. The property can be sold for P2,500,000 after mineral extraction.
Yunru is legally required to restore the land to condition at a discounted amount of P800,000.
Yunru incurred the following after initial acquisition:
Exploration cost 3,500,000
Development cost of drilling 3,200,000
Movable production equipment 4,600,000. 25 year useful life with no alternative use
The entity extracted 50,000 tons in 2024.
The entity extracted 60,000 tons in 2025.
The entity extracted 38,000 tons in 2026.

84. How much is the depletion for 2024?

85. How much is the depletion for 2025?
86. How much is the depletion for 2026?
87. How much is the depreciation for 2024?
88. How much is the depreciation for 2025?
89. How much is the depreciation for 2026?
90. Which of the following is a government grant related to asset?
a. Grant to defray environmental costs
b. Grant to provide scholarships for students of a school
c. Grant to compensate for damage from typhoon
d. Grant related to construction of a factory

Miku received a grant of P15,000,000 from the Ender Government in 2022. By the terms of the grant,
Miku is required to use the proceeds to research new waste recycling techniques.
The estimated costs of research for the next 5 years are:
2023: 5,500,000
2024: 4,800,000
2025: 6,500,000
2026: 4,200,000
2027: 4,000,000

91. How much is the income from government grant in 2023?

92. How much is the income from government grant in 2026?
93. How much is the balance of deferred income from government grant on Dec. 31, 2025?
Benio has the following animals on January 1, 2023:
- Two 1-year-old animals with a total carrying amount of ₱2,500.
- One 3-year-old animal with a carrying amount of ₱3,000.

During 2023, these events occurred:

- On April 1, acquired a 2-year-old animal for ₱2,200, the fair value less costs to sell (FVLCS) at
that date.
- On September 30, four animals were born. The FVLCS of a newborn animal on this date is ₱650.

The following FVLCS on December 31, 2023 is as follows:

- Newborn: ₱700
- 0.25 years old: ₱800
- 1.00 years old: ₱1,100
- 2.00 years old: ₱2,000
- 2.75 years old: ₱2,375
- 3.00 years old: ₱3,050
- 3.50 years old: ₱3,200
- 4.00 years old: ₱3,600
- 4.50 years old: ₱3,800

94. How much is the gain/loss on changes in fair value less cost to sell due to physical change?
95. Due to price change?

Yunru provided the following schedule of machinery:

Total cost Residual value Useful life
Machine A 5,500,000 500,000 20
Machine B 2,000,000 ` 200,000 15
Machine C 400,000 5

96. What is the composite life of these assets?

97. What is the composite rate of depreciation for these assets?

98. If the fair value less cost of disposal for impairment purposes can’t be determined:
a. The asset is not impaired
b. The recoverable amount is the value in use
c. The net realizable value is used
d. The carrying amount of the asset remains the same

99. Which of the following does not qualify as an intangible asset?

a. Computer software
b. Registered patent
c. Copyright that is patented
d. Notebook computer

100. Which of the following is a criterion that must be met for an item to be recognized as an
intangible asset (other than goodwill)?
a. The fair value can be measured reliably
b. The item is part of an activity aimed at gaining new scientific or technical knowledge
c. The item is expected to be used in the production or supply of goods or services
d. The item is nonmonetary, identifiable and lacks physical substance

101. What is the appropriate method of amortizing intangible asset?

a. The straight line, unless the pattern in which the asset’s economic benefits are consumed
by the entity can be determined reliably
b. Double declining balance in all circumstances
c. The amount must be determined differently every year
d. The straight line method in all circumstances
102. A patent should be amortized over
a. 20 years
b. The useful life
c. The useful life or 20 years, whichever is longer
d. The useful life or 20 years, whichever is shorter

103. Which of the following should NOT be capitalized?

a. Cost of equipment used on research stage of projects
b. Engineering costs incurred to advance the product to full production stage
c. Cost incurred to register a patent
d. Cost of testing prototype before economic feasibility has been demonstrated

Miku acquired a building on January 1, 2024 at a cost of P20,000,000. The building had a useful
life of 6 years and residual value of P2,000,000. The building was revalued on January 1, 2027:
replacement cost is P30,000,000. On December 31, 2027, the building was determined to instead
have a residual value of P4,000,000 and a revised useful life of 8 years from the date of acquisition.
104. How much is the revaluation surplus on January 1, 2027?
105. How much is the depreciation for 2027?
106. How much is the depreciation for 2028?

Benio provided the following information:

Units Unit cost
Jan 1 Beginning balance 10,000 150
Jan 5 Purchase 10,000 180
Jan 15 Sale 15,000
Jan 16 Sale return 1,000
Jan 25 Purchase 4,000 200
Jan 26 Purchase return 2,000 200

107. Under FIFO, how much is the cost of goods sold?

108. Under weighted average, how much is the cost of goods sold?
109. Under moving average, how much is the ending inventory?

Yunru has usual sales terms of net 60 days, FOB shipping point. Sales were P5,000,000 for 2024
before the following items were considered:
• Goods with an invoice amount of P200,000 were billed to a customer on January 15, 2025.
The goods were shipped on December 31, 2024.
• On January 5, 2025, a customer notified Yunru that goods billed and shipped on December
31, 2024 were lost in transit. The invoice amount was P50,000.
• On December 31, 2024, Yunru authorized a customer to return, for full credit, goods
shipped and billed at P300,000 on December 15, 2024. The returned goods were received
by the entity on January 15, 2024 and a credit memo was issued on the same date.

110. How much is the sales for 2024?

111. If gross profit on cost is always 20%, how much is the cost of goods sold?
Sky Striker Ace - Kagari Company conducted a physical count on December 31, 2021 which revealed
inventory with a cost of P4,410,000.

The following items were excluded from the physical count:

• Merchandise held by Sky Striker Ace - Kagari on consignment 610,000
• Merchandise shipped by Sky Striker Ace - Kagari FOB destination to a customer on December 31,
2021 and was received by the customer on January 5, 2022 380,000
• Merchandise shipped by Sky Striker Ace - Kagari FOB shipping point to a customer on December
31, 2021 and was received by the customer on January 5, 2022 460,000
• Merchandise shipped by a vendor FOB destination on December 31, 2021 was received by Sky
Striker Ace - Kagari on January 5, 2022 830,000
• Merchandise purchased FOB shipping point was shipped by the supplier on December 31, 2021
and received by Sky Striker Ace - Kagari on January 5, 2022 510,000

Sky Striker Ace - Kagari provided the following information during the year (no beginning inventory since
this is the first year of operations)

Total merchandise purchases for the year 14,000,000

Collections from customers 7,000,000

Sky Striker Ace - Kagari marked all merchandise to sell at 40% above cost. All sales are on a credit basis
and all accounts receivable are collectible.

112. How much is the cost of goods sold?

113. How much is the sales?
114. How much is the ending Accounts Receivable?