BSA 321 Midterm

8/10/2019 BSA 321 Midterm

http://slidepdf.com/reader/full/bsa-321-midterm 1/8

Page 1 of 8

ACCOUNTANCY DEPARTMENTCOLUMBAN COLLEGE, INCNo. 1 Mt. Apo Street, East Tapinac

Olongapo City, Philippines

“…we speak the language of business…we always give our best…”

Summer 2014

COMPREHENSIVE PRELIM EXAM in ADVANCED FINANCIAL ACCOUNTING &REPORTING – P2 BSA321

Last Name:______________________________Sce!u"e :________________________________________#irst Name:______________________________$ate :________________________________________

TABLE OF SPECIFICATION (TOS)

Topics/Co!"!s

T#"o$i"s P$o%"'s Soi%n&'"e!(e )

C&m*reensi&n

Ana"+sis )

A**"icati&n

S+nt

esis

E,a"u

ati&n

Items

1- H&me O.ice ) /rancinc"u!in( Sa"es A(enc+ Acct(-

0 0

2- H&me O.ice ) /ranc Acct(-S*ecia" Pr&"ems

0 0

- X333 0 04- X333 0 0- X333 0 05- X333 0 06- X333 0 07- X333 0 0

8&ta"

Dis!$i%*!io o+ !#" E,-'i-!ioNo. o+ I!"'s

Sc&re

E9ui ,

a(e

Part 1- 8e&riesMu"ti*"e C&ice 1 20 0 0 0 40 50Part 2- Eas+;A,era(e Pr&"ems S&",in( MC

10 12 1 0 20 0 2 2

Part - $i.icu"t Pr&"ems S&",in( NMC

10 7 10 20 1 60 1 1

8&ta" 2 3 0 4 1

No!": 8e c&ntents &< te e3aminati&n are c&m*rise! &< "-s56 -"$-"6 -7 7i8ic*! t+*e=&t te&ries an! *r&"ems s&",in( *atterne! <r&m te actua" CPA &ar! e3aminati&n(i,en + PRC-

Pre*are! +: N&te! +:

9s. Ric#" 9. V-7"i%$o6 CPA D$. P"!"$ O. T*io6 CPA /SA #acu"t+ Cair*ers&n

PART 31

N& P$o%"'s Co'p*!-!io/So*!io :"$";1- Ca* One C&- a! an a(enc+ in >reeni""s- #&r te ?rst

+ear &< &*erati&ns= te a(enc+ transacti&ns s&'e! te<&""&'in(:Recei*ts <r&m sa"es

P400=000$isursements:

Purcases 400=000Sa"aries an! C&mmissi&n

0=000Rent 10=000

@M&st *e&*"e !&nt <ai" B te+ 9uit- 8e+ (i,e u* &n teir !reams an! "ame <ate an! a! "uc-8&& "ate te+ rea"iDe te+ (a,e u* t&& s&&n-



Page 2 of 8

A!,ertisin( Su**"ies 10=000Oter E3*enses

=0008e a(enc+ a! n& recei,a"es n&r *a+a"es as &< te en!&< sai! +ear ut tere 'ere in,ent&ries &n an! &< P60=000an! unuse! a!,ertisin( su**"ies &< P5=000- 8e a(enc+'as set u* as an e3*eriment <&r &ne *eri&! an! '&u"! ec"&se! i< "&sses 'ere incurre!-

T#" -"c5 s#o*7 $"co$7 - "! ico'"/("! oss) o+

2- 8e Re! Inc- &*ene! an a(enc+ in Maati in 2007- 8e<&""&'in( is a summar+ &< te transacti&ns &< te a(enc+:

Sa"es &r!ers sent t& &me &.iceP=000

Sa"es &r!ers ?""e! + &me &.ice in 200745=00#rei(t &n si*ment t& a(enc+1=100C&""ecti&ns= net &< 2 !isc&untF=5F0

Se""in( e3*enses *ai! <r&m te a(enc+ '&rin( <un!2=720

A!ministrati,e e3*enses car(e! t& a(enc+ &< sa"esSam*"es si**e! t& a(enc+:

C&st =000In,ent&r+= $ecemer 1= 2007

1=100

8e c&m*an+ maintains its (r&ss mar(in &n a(enc+ sa"esat 0 e3c"u!in( <rei(t c&st &n si*ments t& a(enc+-

R"<*i$"7=

1. T#" -"c5 cos! o+ s-"s ic*7i +$"i#! >-s=2. T#" -"c5?s "! ico'" '*s! %"=

- 8e %arin 8ra!in( C&- &*erates a ranc in Isae"a- Atc"&se &< usiness &n $ecemer 1= 200A= H&me O.iceacc&unt in te ranc &&s s&'e! a cre!it a"ance &< P62=F00- 8e inter&.ice acc&unts 'ere in a(reement atte e(innin( &< te +ear- #&r *ur*&ses &< rec&nci"in( teinter&.ice acc&unts= te <&""&'in( <acts 'ere ascertaine!:

i- A <urniture c&stin( te &me &.ice P4=500 'as*ice! u* + te ranc as P450- 8e ranc 'i""maintain an! use te asset-

ii- 8e ranc 'rites&. unc&""ecti"e acc&unts &< P1=250- 8e a""&'ance <&r !&ut<u" acc&unts ismaintaine! &n te &&s &< te &me &.ice- 8e&me &.ice 'as n&t +et n&ti?e!-

iii- #rei(t car(e &n mercan!ise ma!e + te &me&.ice <&r P2=61 'as rec&r!e! in te ranc &&sas P6=21-

i,- H&me &.ice cre!it mem& <&r PF=610 'as rec&r!e!+ te ranc at P6=F10-

,- Isae"a ranc <ai"e! t& tae u* a P2=40 !eitmem& <r&m te &me &.ice-

,i- 8e &me &.ice ina!,ertent"+ rec&r!e! aremittance <&r P=60 <r&m its /u"acan ranc as a

remittance <r&m its Isae"a ranc- ,ii- Insurance *remium &< P1=56 car(e! + te &me&.ice 'as taen u* t'ice + te ranc-

,iii- A P14=00 ranc remittance t& te &me &.iceinitiate! &n $ecemer 27= 200A 'as rec&r!e! &nte &me &.ice &&s &n Ganuar+ 4= 200/

i3- A &me &.ice in,ent&r+ si*ment t& /u"acanranc &n $ecemer 2F= 200A= 'as rec&r!e! +te ranc &n Ganuar+ = 200/= te i""in( &< P46=000 'as at c&st-

3- A ranc cust&mer remitte! P1F=000 t& te &me&.ice- 8e &me &.ice rec&r!e! tis cas



Page 3 of 8

c&""ecti&n &n $ecemer 22= 200A- Mean'i"e= ac at te ranc= n& entr+ as een ma!e +et-

A. D"!"$'i" !#" %--c" o+ !#" B$-c# C*$$"!-cco*! %"+o$" -7@*s!'"!s=

B. D"!"$'i" !#" -7@*s!"7 %--c" o+ !#" $"cip$oc--cco*!s

4- 8e SM C&r*&rati&n as a ranc &*erati&n in Ca(a+an-

/ecause &< te i( ,&"ume &< intrac&m*an+ transacti&ns=te c&m*an+ as enc&untere! !i.icu"t+ in rec&nci"in( itsH&me O.ice;/ranc acc&unts- #&""&'in( is a "istin( &< tec&m*&nents &< te /ranc a"ances <r&m te &me&.ices "e!(er <&""&'e! 'it te H&me O.ice acc&unt asrec&r!e! + te ranc-

/RANCH B Ca(a+an Acc&unt C&m*&siti&n &n ?nancia" rec&r!s &< &me &.ice Gan 1 /e(innin( a"ance P52=000

Gan 2 Cas recei,e! 15=000Mar 2 In,ent&r+ trans<erre!

42=000 A*r 1 Sa"ar+ a""&cati&nF=200

Gu" 2 In,ent&r+ trans<erre!5=000Se* Insurance e3*ense a""&cati&n1=000Oct 5 Cas recei,e! 21=000N&, 4 In,ent&r+ trans<erre!27=000$ec 1$e*reciati&n a""&cati&n=000En!&<+ear a"ance !eit P

17=200

HOME O##ICE Gan 1 /e(innin( a"ance P=000

Gan 2 In,ent&r+ recei,e! 11=000Mar 2 In,ent&r+ recei,e! 42=000

A*r Sa"ar+ a""&cati&nF=000

A*r 7 Cas trans<erre!4=000

Gu" 5 In,ent&r+ recei,e! 47=000Se* 10Insurance e3*ense a""&cati&n

1=000Oct 4 Cas trans<erre!21=000N&, 7 In,ent&r+ recei,e! 27=000$ec 1Cas trans<erre!1=000En!&<+ear a"ance cre!it P F=000

A!!iti&na" in<&rmati&n: A cas trans<er recei,e! !urin( te +ear 'as

cre!ite! + te &me &.ice t& Misce""ane&usInc&me-

8e &&ee*er <&r te ranc inc&rrect"+

rec&r!e! t'& am&unts: a sa"ar+ a""&cati&n an! anin,ent&r+ si*ment-

D"!"$'i" !#" co$$"c! %--c"s +o$ !#" :o'"O8ic"/B$-c# -cco*!s -s o+ D"c"'%"$ 31.

- R&m+ C&r*&rati&n as &ne ranc &.ice= name! 8i&/ranc- R&m+ is *er<&rmin( te en!&<te*eri&!rec&nci"iati&n &< its 8i& /ranc acc&unt '&se currenta"ance is P000=000 an! 8i&s H&me O.ice acc&unt'&se current a"ance is P000=000- 8e <&""&'in( itemsare unsett"e! at te en! &< te acc&untin( *eri&! +&u ma+



Page 4 of 8

assume tat te item as een reJecte! in te acc&unts &< te un!er"ine! entit+:

R&m+ as a(ree! t& rem&,e P60 &< e3cess <rei(tcar(es car(e! t& 8i& 'en R&m+ si**e! t'iceas muc in,ent&r+ as 8i& re9ueste!-

8i& mai"e! a cec <&r P11=000 t& R&m+ as a *a+ment<&r mercan!ise si**e! <r&m R&m+ t& 8i&- R&m+as n&t +et recei,e! te cec-

8i& returne! !e<ecti,e mercan!ise t& R&m+- 8e

mercan!ise 'as i""e! t& 8i& at P4=000 'en itsactua" c&st 'as P=000-

A!,ertisin( e3*ense attriuta"e t& te ranc &.ice'ere *ai! <&r + te &me &.ice in te am&unt &< P=000-

I< te a!Kuste! a"ances <&r te 8i& /ranc Acc&unt an!te R&m+ H&me O.ice Acc&unt is P00=000= >#-!*-7@*s!"7 %--c" >-s is!"7 i

(1) Ro'5?s Ti%o B$-c# Acco*! -7(2) Ti%o?s :o'" O8ic" Acco*!

5- 8e inc&me statement sumitte! + te CE/ /ranc t&

te H&me O.ice <&r te +ear en!e! $ecemer 1= 2012 iss&'n e"&':Sa"es 4=700=000C&st &< Sa"es:In,ent&r+= Ganuar+ 1 540=000Si*ment <r&m &me &.ice 2=700=000Purcases 240=000>&&!s a,ai"a"e <&r sa"e =570=000In,ent&r+= $ecemer 1 700=0002=770=000>r&ss mar(in 1=F20=000

O*eratin( e3*enses1=440=000Net Inc&me 470=000

8e ranc in,ent&ries 'ere c&m*&se! &<: Ganuar+ 1

$ecemer 1=Recei,e! <r&m &me &.ice 50=000562=000Outsi!e *urcases 70=000127=0008&ta" 540=000700=000

8e &me &.ice rec&r!e! te net inc&me &< te ranc$ecemer 1= 2012 at P1=247=000-

R"<*i$"7=1. T#" %--c" o+ *$"-i"7 p$o! o %$-c#i"!o$5 i !#" #o'" o8ic" %oos o D"c"'%"$ 316212.

2. A'o*! o+ %$-c# "7i i"!o$5 i !#" %ooso+ !#" #o'" o8ic"

6- Mac 8ra!in( C&- &*erates a ranc in I"&c&s- At c"&se &<

usiness &n $ecemer 1= 200A= I"&c&s ranc acc&unt inte &me &.ice &&s s&'e! a !eit a"ance &< P14=200- 8e inter&.ice acc&unts 'ere in a(reement atte e(innin( &< te +ear- #&r *ur*&se &< rec&nci"in( tereci*r&ca" acc&unts= te <&""&'in( <acts 'ere ascertaine!:

1- 8e ranc 'rites unc&""ecti"e acc&unts &< P=200- 8e a""&'ance <&r !&ut<u" acc&unts ismaintaine! &n te &&s &< te &me &.ice- 8e&me &.ice is n&t +et n&ti?e! a&ut te 'rite &.-

2- H&me &.ice cre!it mem& <&r P16=10 'as n&trec&r!e! + te ranc-

- I"&c&s rec&r!e! a !eit mem& <r&m &me &.ice &<



Page 5 of 8

P27=50 as P2=750-4- 8e &me &.ice ina!,ertent"+ rec&r!e! a

remittance <&r P1F=000 <r&m its I"&i"& ranc as aremittance <r&m its I"&c&s ranc-

:o> '*c# is !#" *-7@*s!"7 %--c" o+ !#" #o'"c*$$"! -cco*!

7- On $ecemer 1= 201= te R&se C&- esta"ise! an

a(enc+ in Las Pias= sen!in( its mercan!ise sam*"esc&stin( P1=000 an! a '&rin( <un! &< PF=000 t& emaintaine! &n te im*rest s+stem- $urin( te m&nt &< $ecemer= te a(enc+ transmitte! t& te &me &.ice sa"es&r!ers 'ic 'ere i""e! at P54=70 &< 'ic P20=400 'asc&""ecte!- A &me &.ice !isursements car(ea"e t& tesa"es a(enc+ is te ac9uisiti&n &< <urniture an! ?3tures <&rP2=000 t& e !e*reciate! at 5 *er annum- 8e a(enc+*ai! e3*enses &< P=71 an! recei,e! re*"enismenttere&< <r&m te &me &.ice- On $ecemer 1= 201= tea(enc+ sam*"es 'ere ,a"ue! at P10=60- It 'as estimate!tat te (r&ss *r&?t &n (&&!s si**e! t& i"" a(enc+ sa"es&r!ers a,era(es 1; &< c&st-

:o> '*c# is !#" "! ico'" o+ !#" -"c5 +o$ !#"'o!# "7"76 D"c"'%"$ 316 213

F- 8e #i(ter C&m*an+ esta"ise! a ranc in La(una Cit+ear"+ "ast +ear- It si**e! mercan!ise an! i""e! teranc <&r P00=000 *ri&r t& te &*enin(- #&r te +ear= itma!e a!!iti&na" si*ments at i""e! *rice &< P120=000-itin te +ear= te ranc si**e! ac P6=00 in,ent&r+an! (&t te cre!it mem& <&r sai! returns- On te "ast'&rin( !a+ &< te +ear= in,ent&r+ 'as !etermine t& eP17=000 c&nsistin( &< *urcases <r&m tir! *arties &<

P20=000 'it te a"ance c&min( <r&m te &me &.ice-8e &me &.ice i""e! te ranc at 2 a&,e c&st- 8et&ta" *urcases &< te ranc <r&m &utsi!e su**"iersam&unte! t& P62=00-

T#" cos! o+ s-"s o+ !#" %$-c#6 -! cos!6 is

10- Isaac C&r*&rati&n retai"s mercan!ise tr&u( its &me&.ice an! tr&u( a ranc st&re in !istant cit+- Se*arate"e!(ers are maintaine! + te &me &.ice an! te ranc-8e ranc st&re *urcases mercan!ise <r&m te &me&.ice at 120 &< &me &.ice c&st= as 'e"" as <r&m&utsi!e su**"iers- Se"ecte! in<&rmati&n <r&m te

$ecemer 1= 2012 tria" a"ances &< te &me &.ice an!ranc is as <&""&'s:

H&meO.ice

/ranc

Sa"es 120=000 50=000Si*ments t& ranc 15=000Purcases 60=000 11=000In,ent&r+= Ganuar+ 1 40=000 0=000Si*ments <r&m &me &.ice 1F=200nrea"iDe! *r&?t in rancin,ent&r+

6=200 25=000

A!!iti&na" in<&rmati&n:

1- 8e entire !i.erence et'een te si*ments acc&untsis !ue t& te *ractice &< i""in( te ranc at c&st *"us20-

2- $ecemer 1= 2012 in,ent&ries are P40=000 an!P20=000 <&r te &me &.ice an! te ranc=res*ecti,e"+- N&te: te ranc *urcase! 15 &< itsen!in( in,ent&r+ <r&m &utsi!e su**"iers-

- /ranc e(innin( an! en!in( in,ent&ries inc"u!emercan!ise ac9uire! <r&m te &me &.ice as 'e"" as<r&m &utsi!e su**"iers- Mercan!ise ac9uire! <r&m te&me &.ice is in,ent&rie! at 120 &< &me &.ice c&st-



Page 6 of 8

D"!"$'i" !#" co'%i"7 "! ico'" o+ !#" #o'"o8ic" -7 !#" %$-c# +o$ !#" 5"-$ 212=

11- 8e H&me O.ice se""s mercan!ise t& its ranc at 2a&,e c&st- 8e ranc 'as esta"ise! se,era" +ears a(&'it te *&"ic+ tat a"" its mercan!ise '&u"! e ac9uire!<r&m te &me &.ice- 8e <&""&'in( in<&rmati&n isa,ai"a"e <r&m te rec&r!s &< te &me &.ice an! teranc: A""&'ance <&r unrea"iDe! (r&ss mar(in in ranc

in,ent&r+ PF2=000= ranc e(innin( in,ent&r+ P62=000en!in( in,ent&r+ P120=000-

:o> '*c# is !#" !o!- s#ip'"!s +$o' #o'" o8ic"$"co$7"7 %5 !#" %$-c# 7*$i !#" c*$$"! 5"-$

12- /ic&" C&m*an+ is en(a(e! in mercan!isin( &t at H&meO.ice in Maati an! a ranc in Ceu- Se"ecte! acc&untsin te tria" a"ances &< te H&me O.ice= an! te ranc at$ecemer 1= 2010 <&""&':

$eit H&meO.ice

/ranc

In,ent&r+= Ganuar+ P 2=000 P 11=0

/ranc 7=00Purcases 1F0=000Si*ments <r&m H&meO.ice

10=000

#rei(t in <r&m H&meO.ice

=00

Sun!r+ e3*enses 0=000 2=000

Cre!itH&me O.ice =00Sa"es 1=000 140=000Si*ments t& /ranc 110=000

A""&'- <&r &,er,a"uati&n&< ranc in,ent&r+ B

Gan- 11=000

A!!iti&na" in<&rmati&n:a- Ceu ranc recei,es a"" its mercan!ise <r&m te

&me &.ice- 8e H&me O.ice i""s te (&&!s at c&st*"us 10 maru*- At $ecemer 1= 2010 a si*ment'it a i""in( *rice &< P=000 'as in transit t& teranc- #rei(t &n tis si*ment 'as P20 'ic is t&e treate! as *art &< in,ent&r+-

- $ecemer 1= 2010 in,ent&ries= e3c"u!in( tesi*ment in transit 'as:

H&me O.ice= at c&st 0=000Ceu /ranc= at i""e! ,a"ue e3c"u!in( <rei(t&< P20

10=400

R"<*i$"7=1. N"! ico'" o+ !#" :o'" O8ic" >-s2. T$*" ico'" o+ C"%* B$-c# >-s

1- 8e Nenen( C&r*- esta"ise! its San Pe!r& ranc inMarc 2010- $urin( te ?rst +ear &< &*erati&ns= te &me&.ice si**e! t& te ranc mercan!ise 'ic a! c&st&< P120=000- 8ree<&urt &< tese mercan!ise 'as s&"!+ te ranc <&r P141=000- O*eratin( e3*enses &< te

ranc am&unte! t& P26=000-

:o> '*c# "! ico'" >i !#" %$-c# $"po$! i+ !#"'"$c#-7is" is %i"7 %5 !#" #o'" !o !#" %$-c# -!2 -%o" cos!

14- %ira C&- &*erates a ranc in Mariina Cit+- On $ecemer1= 2010= Mariina ranc acc&unt in te HO &&ss&'e! a !eit a"ance &< P22=650- 8e inter&.iceacc&unts 'ere in a(reement at te e(innin( &< te +ear-#&r *ur*&ses &< rec&nci"in( te inter&.ice acc&unts= te<&""&'in( <acts 'ere (i,en-



Page 7 of 8

a- Si*ments t& Mariina at c&st &< PF2=710 'ere intransit as &< +earen!- Mariina rec&r!e! te sai! trans<er&n Gan- 2= 2011-- On Oct- 1= 2010= te &me &.ice *ai! rent &< Mariinaam&untin( t& P7=750 <&r te ne3t F m&nts- H&me &.icerec&r!e! te sai! transacti&n usin( te asset met&!-/ranc 'as n&t n&ti?e! &< te sai! rent transacti&n-c- 8e ranc 'rites &. unc&""ecti"e acc&unts &< P12=122-8e a""&'ance <&r !&ut<u" acc&unts is maintaine! &n te

&&s &< &me &.ice- H&me &.ice is n&t +et n&ti?e! a&utte 'rite&.-!- H&me &.ice c&""ecte! AR <r&m Mariinas cust&mersam&untin( t& PF1=570= net &< 4 !isc&unt- 8e HO treate!te sai! transacti&n as i< it 'as a c&""ecti&n <r&m its &'ncust&mers- Mariina 'as n&t +er n&ti?e! &< te c&""ecti&n-It is te *&"ic+ &< te &me &.ice t& i"" its rances at20 a&,e c&st-

#-! is !#" *-7@*s!"7 %--c" o+ !#" :Oc*$$"! o+ 9-$ii- %$-c# o D"c. 316 21

1- H&me &.ice i""s its ranc <&r mercan!ise si*ments at0 a&,e c&st- 8e <&""&'in( are s&me &< te acc&unt

a"ances &n te &&s &< &me &.ice an! its ranc as &< $ecemer 1= 2010-

H&me &.ice &&s/ranc /&&sIn,ent&r+= Ganuar+ 1 P =000 P14=00Si*ments <r&m H&me &.ice6=600Purcases 22=0000=000Si*ments t& ranc 5=20/ranc in,ent&r+ a""&'ance 1=12Sa"es 00=000

170=000O*eratin( e3*enses 62=0026=00

Per *+sica" c&unt= te en!in( in,ent&r+ &< te ranc isP10=00 inc"u!in( (&&!s <r&m &utsi!e *urcases &< P5=F2 te en!in( in,ent&r+ &< te &me &.ice isP0=000-

A. T#" -'o*! o+ !#" *$"-i"7 p$o! i !#"s"p-$-!" %oos o+ !#" #o'" o8ic" o H-*-$5 16211.B. T#" %$-c# %"ii i"!o$5 i 21 !#-!

c-'" +$o' o*!si7" p*$c#-s"s.C. Cos! o+ oo7s --i-%" +o$ s-" o+ !#" %$-c#.D. T#" !o!- "7i i"!o$5 !o %" s#o> o !#"co'%i"7 -ci- s!-!"'"!s.E. T#" co'%i"7 "! ico'" +o$ !#" 5"-$.

15- C$O C&r*&rati&n &*ene! a sa"es a(enc+ in Sta- R&saLa(una in 2010- 8e <&""&'in( is a summar+ &< transacti&ns &< te sa"es a(enc+:List *rice P161=000

V&"ume !isc&unt an!

#rei(t &n si*ment &< a(enc+=00C&""ecti&ns= net &< 6- !isc&unt124=76Se""in( e3*enses *ai! <r&m te a(enc+ re,&",in( <un!7=00

A!ministrati,e e3*enses a""&cate! t& a(enc+ &< net sa"es

Sam*"es si**e! t& a(enc+:C&st

12=000



Page 8 of 8

In,ent&r+= en!6=F52-0

Remainin( recei,a"e is estimate! t& e F c&""ecti"e-8e c&m*an+s (r&ss *r&?t rate ase! &n in,&ice *rice is40 e3c"u!in( te <rei(t c&st &n si*ments t& a(enc+-

#-! is !#" "! ico'" o+ !#" -"c5 +o$ 21EN$ O# 8HE EXAM B >OO$LC% #OR 8HE RESL8S

Documents

BSA 321 Midterm