Auditing Problems Final Term Exam 3.14.2013
Prepared by: Dave Ritz J. Peria, CPAPage 10
Name: __________________ Score: ________
Expected Grade: _________
Additional Points/Incentive:
DIRECTION: Encircle your final answer. Erasures are not allowed.
PROBLEM NO. 1
You obtained the following information from the balance sheet of Caloocan Company in connection with your audit of the Company's financial statements for the year 2012:
Cash
Notes receivable
Inventory
Accounts payable
Dec 31, 2012 Dec.31.2011
P200,000 50,000 399,750 150,000
P706,600
?
All operating expenses are paid by Caloocan with cash and all purchases of inventory are made on account. Caloocan sells only one product. All sales are cash sales which are made for P100 per unit. Caloocan purchases 1,500 units of inventory per month and values its inventory using periodic FIFO. The unit cost of inventory during January 2012 was P65.20 and an increased of P0.20 per month during the year. During 2012, payments to suppliers totaled P943,400 and operating expenses totaled P440,000. The ending inventory for 2011 was valued at P65.00 per unit.
QUESTIONS:
Based on the above and the result of your audit, determine the following:
1. Number of units sold during 2012
a. 18,900 c. 8,268
b. 18,400 d. 8,768
2. Accounts payable balance at December 31, 2012
a. P400,000 c. P150,000
b. P380,200 d. P383,500
3. Inventory amount at December 31, 2012
a. P 385,900 c. P 352,500
b. P 1,055,183 d. P 1,022,483
4. Which of the following audit procedures would provide the least reliable evidence that the client has legal title to inventories?
a. Confirmation of inventories at locations outside the client's facilities.
b. Observation of physical inventory counts.
c. Examination of paid vendors' invoices.
d. Analytical review of inventory balances compared to purchasing and sales activities.
5. An auditor generally tests physical security controls over inventory by
a. Test counts and cutoff procedures.
b. Examination and reconciliation.
c. Inquiry and observation.
d. Inspection and recomputation.
PROBLEM NO. 2
You are engaged to examine the financial statements of the Olive Manufacturing Corp. for the year ended December 31, 2012. The following schedules for property, plant, and equipment and related accumulated depreciation accounts have been prepared by your client. The opening balances agree-with your prior year's audit working papers.
Olive Manufacturing Co.
Analysis of Property, Plant, and Equipment and
Related Accumulated Depreciation Accounts
Year Ended December 31, 2012
Audited Per books
Cost 12-31-11 Addition Retirement 12-31-12
Land P450,000 P100,000 P - P 550,000
Buildings 2,400,000 350,000 - 2,750,000
Machinery & equipment 2,770,000 808,000 520,000 3,526,000
P5,620,000 P1,258,000 P520,000 P6,826,000
Audited Per books
Accumulated Depreciation 12-31-11 Addition Retirement 12-31-12
Buildings P1,200,000 P103,000 - P1,303,000
Machinery & equipment 546,500 P313,600 - 860,100
P1,746,500 P416,600 - P 2,163,100
Further investigation revealed the following:
a. All depreciable assets are depreciated on the straight- line basis (with no salvage value) based on the following estimated lives: Buildings - 25 years, all other items 10 years.
b. The company entered into a lease contract for a derrick machine with annual rental of P100,000 payable in advance every April 1. The parties to the contract stipulated that a 30-day written notice is required to cancel the lease. Estimated useful life is 10 years. The derrick was recorded under machinery and equipment at P808,000 and P60,600, applicable to the machine was included in the depreciation expense during the year.
c. The company finished construction of a new building wing in June 30. The useful life of the main building was not prolonged. The lowest construction bid was P350,000 which was the amount recorded. Company personnel constructed the building at a total cost of P330,000.
d. P100,000 was paid for the construction of a parking lot which was completed on July 1, 2012. The expenditure was charged to land.
e. The P520,000 equipment under retirement column represent cash received on October 1, 2012 for machinery bought on October 1, 2008 for P960,000. The bookkeeper recorded depreciation expense of P72,000 on this machine in 2012.
f. The company's president donated land and building appraised at P200,000 and P400,000 respectively to the company to be used as plant site. The company began operating the plant on September 30, 2012. Since no money was involved, the bookkeeper did not make any entry for the above transaction.
QUESTIONS:
Based on the above and the result of your audit, answer the following:
6. The carrying amount of the buildings on December 31, 2012 is
a. P1,820,250 c. P1,816,250
b. P1,827,400 d. P1,447,000
7. The carrying amount of the land on December 31, 2012 is
a. P650,000 c. P750,000
b. P450,000 d. P545,000
8. The carrying amount of the property, plant and equipment as of December 31, 2012 is
a. P3,860,750 c. P3,955,750
b. P3,755,750 d. P3,312,900
9. The loss on the disposal of the machinery sold for P520,000 is
a. P56,000 c. P152,000
b. P80,000 d. P 0
10. An auditor analyzes repairs and maintenance accounts primarily to obtain evidence in support of the audit assertion that all
a. Non-capitalizable expenditures for repairs and maintenance have been recorded in the proper period.
b. Expenditures for property and equipment have been recorded in the proper period.
c. Non-capitalizable expenditures for repairs and maintenance have been properly charged to expense.
d. Expenditures for property and equipment have not been charged expense.
PROBLEM NO. 3
GDL, Inc. had the following noncurrent asset account balances at December 31, 2011:
Patent P1,920,000
Accumulated amortization ( 240,000)
Deferred tax asset 360,000
Transactions during 2012 and other information relating to the noncurrent assets of GDL, Inc. were as follows:
a. The patent was purchased from Grey Company for P1,920,000 on January 1, 2010, at which date the remaining legal life was sixteen years. On January 1, 2012, GDL determined that the useful life of the patent was only eight years from the date of acquisition.
b. On January 3, 2012, in connection with the purchase of a trademark from Cody Corporation, the parties entered into a noncompetition agreement and a consulting contract. GDL paid Cody P8,000,000, of which three-quarters was for the trademark and one-quarter was for Cody's agreement not to compete for a five-year period in the line of business covered by the trademark. GDL considers the life of the trademark to be indefinite. Under the consulting contract, GDL agreed to pay Cody P500,000 annually on January 3 for five years. The first payment was made on January 3, 2012.
c. Deferred tax asset is provided in recognition of temporary differences between accounting and tax reporting of rent income and warranty liability. For the year ended December 31, 2012, (1) rent collected in advance decreased by P200.000, and (2) product warranty liability increased by P150,000. GDL's Income tax rate for 2012 was 35%.
QUESTIONS:
Based on the above and the result of your audit, answer the following:
11. The total amortization of the intangible assets for the year 2012 is
a. P680,000 c. P280,000
b. P610,000 d. P830,000
12. The carrying amount of the intangible assets as December 31, 2012 is
P8,850,000 P7,400,000
a. b.
c. P9,070,000
d. P9,000,000
13. The carrying amount of deferred tax asset as of amount December 31, 2012 is
c. P237,500 d. P360,000
a. P342,500
b. P310,000
14. When an internally generated asset meets the recognition criteria, the appropriate treatment for costs previously expensed is:
a. Reinstatement
b. No adjustment as these amounts may not be reinstated.
c. Include in the cost of the development of the asset.
d. Capitalize into the cost of the asset and adjust the opening balance of retained earnings.
15. Which statement is correct regarding initial recognition of research and development costs?
All research costs should be charged to expense.
All development costs should be capitalized.
If an entity cannot distinguish the research phase of an internal project to create an intangible asset from the development phase, the enterprise treats the expenditure for that project as if it were incurred in the development phase only.
A research and development project acquired in a business combination is not recognized an asset.
PROBLEM NO. 4
You were able to obtain the following information in connection with your audit of the Cash account of the Syria Company as of December 31, 2012:
November 30 December 31
a. Balances per bank P 480,000 P420,000
b. Undeposited 244,000 300,000
collections
c. Outstanding checks 150,000 120,000
d. The bank statement for the month of December showed total credits of P240,000.
e. DAIF checks are recorded as a reduction of cash receipts. DAIF checks which are later redeposited are
then recorded as regular receipts. Data regarding DAIF checks are as follows:
Returned by the bank in Nov. and recorded by the company in Dec., P10,000.
Returned by the bank In Dec. and recorded by the company in Dec., P25,000.
Returned by the bank in Dec. and recorded by the company in Jan., P29,000.
f. Check of Syrio Company amounting to P90,000 was charged to the company's account by the bank in error on December 31.
g. A bank memo stating that the company's account was credited for the net proceeds of a customer's note for P106,000.
h. The company has hypothecated its accounts receivable with the bank under an agreement whereby the bank lends the company 80% of the hypothecated accounts receivable. The company performs accounting and collection of the accounts. Adjustments of the loan are made from daily sales reports and deposits.
i. The bank credits the company account and increases the amount of the loan for 80% of the reported sales. The loan agreement states specifically that the sales report must be accepted by the bank before the company is credited. Sales reports are forwarded by the company to the bank on the first day following the date of sale. The bank allocates each deposit 80% to the payment of the loan, and 20% to the company account. Thus, only 80% of each day's sales and 20% of each collection deposits are entered on the bank statement. The company accountant records the hypothecation of new accounts receivable (80% of sales) as a debit to Cash and a credit to the bank loan as of the date of sales. One hundred percent of the collection on accounts receivable is recorded as a cash receipt; 80% of the collection is recorded in the cash disbursements books as a payment on the loan. In connection with the hypothecation, the following facts were determined:
Included in the undeposited collections is cash from the hypothecation of accounts receivable. Sales were P180.000 on November 30, and P200,000 at December 31. The balance was made up from collections which were entered on the books in the manner indicated above.
Collections on accounts receivable deposited in December, other than deposits in transit, totaled P725,000.
j. Interest on the bank loan for the month of December charged by the bank but not recorded in the books amounted to P38,000.
QUESTIONS:
Based on the above and the result of your audit, answer the following:
16. How much is the unadjusted balance per books as of November 30, 2012?
a. P504,000 c P430,000
b. P484,000 d. P356,000
17. How much is the unadjusted book receipts for December, 2012?
a. P860,000 c P735,000
b. P770,000 d. P738,000
18. How much is the unadjusted book disbursements for December, 2012?
a. P773.000 c P735,000
b. P700,000 d. P760,000
19. How much is the unadjusted balance per books as of December 31, 2012?
a. 481,000 c. 309,000
b. 530,000 d. 539,000
20. Cash receipts should be deposited on the day of receipt or the following business day. Select the most appropriate audit procedure to determine that cash is promptly deposited.
Review cash register tapes prepared for each sale.
Compare the daily cash receipts totals with the bank deposits.
Review the functions of cash handling and maintaining accounting records for proper separation of duties.
Review the functions of cash receiving and disbursing for proper separation of duties.
PROBLEM NO. 5
The adjusted trial balance of Austronesian Corporation on December 31, 2011, includes the following cash and receivables balances.
Cash-Allied Bank
P 450,000
Currency on hand
160,000
Petty cash fund
10,000
Cash in bond sinking fund
150,000
Notes receivable (including
notes discounted with
recourse, P155,000)
365,000
Accounts receivable
P856,000
Allowance for doubtful accounts
(41,500)
814,500
Interest receivable
5,250
Current liabilities reported in the December 31, 2011, statement of financial position included:
Obligation on discounted notes receivable P155,000
Transactions during 2012 included the following:
Sales on account were P7,670,000.
Cash collected on accounts totaled P5,765,000, including accounts of P930,000 with cash discounts of 2%.
Notes received in settlement of accounts totaled P825,000.
Notes receivable discounted as of December 31, 2011, were paid at maturity with the exception of one P30,000 note on which the company had to pay the bank P30,900, which include interest and protest fees. It is expected that recovery will be made on this note early in 2013.
Customer notes of P585,000 were discounted with recourse during the year, proceeds from their transfer being P585,000. (All discounting transactions were recorded as loans.) Of this total, P480,000 matured during the year without notice of protest.
Customer accounts of P87,200 were written off during the year as worthless.
Recoveries of bad debts written off in prior years were P20,200.
Notes receivable collected during the year totaled P270,000 and interest collected was P24,500.
On December 31, accrued interest on notes receivable was P6,300.
Cash of P350,000 was borrowed from Allied Bank with accounts receivable of P400,000 being pledged on the loan. Collections of P195,000 had been made on these receivables (included in the total given in transaction ), and this amount was applied on December 31, 2012, to payment of accrued interest on the loan of P6.000, and the balance to the partial payment of the loan.
The petty cash fund was reimbursed (meaning that cash was removed from the bank account and placed in the petty cash fund) based following analysis of expenditure vouchers:
Travel expense P1,120
Entertainment expense 780
Postage expense 930
Office supplies expense 1,730
Cash short and over (an income account) 60
Cash of P30,000 was added to bond retirement fund.
Currency on hand at December 31, 2012, was P120,000.
Total cash payments for all expenses during the year were P6,800,000. Charge to general expenses.
Uncollectible accounts are estimated to be 5% of the December 31, 2012, Accounts Receivable balance.
QUESTIONS:
Based on the above and the result of your audit, answer the following:
21. The total cash to be reported in the company's December 31, 2012 statement of financial position is
a. P555,700 c. P574,180
b. P574,300 d. P569,800
22. The doubtful accounts expense to be recognized for the year ended December 31, 2012 is
a. P117,010 c. P117,940
b. P 91,510 d. P 92,440
23. The net accounts receivable as of Dec. 31, 2012 is
a. P1,713,190 c. P1,738,690
b. P1,730,860 d. P1,756,360
24. The net trade and other receivables to be reported In the company's December 31, 2012 statement of financial position is
a. P2,023,690 c. P2,072,260
b. P2,078,560 d. P2,060,890
25. In determining validity of accounts receivable, which of the following would you consider as most reliable?
a. Direct telephone communication between auditor and debtor.
b. Credits to accounts receivable from the cash receipts book after the close of business at year end.
c. Documentary evidence that supports the accounts receivable balance.
d. Confirmation replies received directly from customers.
PROBLEM NO. 6
Bahrain Bank granted a loan to a borrower in the amount of P10,000,000 on January 1, 2012. The interest rate on the loan is 10% payable annually starting December 31, 2012. The loan matures in five years on December 31, 2016. Bahrain Bank incurs P130,900 of direct loan origination cost and P50,000 of indirect loan origination cost. In addition, Bahrain Bank charges the borrower a 5-point nonrefundable loan origination fee.
The borrower paid the interest due on December 31, 2012. However, during 2013 the borrower began to experience financial difficulties, requiring the bank to reassess the collectibility of the loan. As of December 31, 2013, the bank expects that only P8,000,000 of the principal will be recovered. The P8,000,000 principal amount is expected to be collected in two equal installments on December 31, 2015 and December 31, 2017. The prevailing interest rates for similar type of note as of December 31, 2012 and 2013 are 15% and 16%, respectively.
QUESTIONS:
Based on the above and the result of your audit, answer the following: (Round off present value factors to four decimal places)
26. The interest income to be recognized in 2012 is
a. P1,000,000 c. P1,080,150
b. P1,059,399 d. P1,051,346
27. The carrying amount of the loan as of December 31, 2012 is
a. P10,000,000 c. P9,690,299
b. P 9,732,246 d. P9,580,150
28. The loan impairment loss to be recognized in 2013 is
a. P3,875,032 c. P4,118,800
b. P3,809,099 d. P 0
29. Which of the following audit procedures provides the best evidence about the collectibility of notes receivable?
a. Examination of cash receipts records to determine promptness of interest and principal payments.
b. Reconciliation of the detail of notes receivable and the provision for uncollectible amounts to the general ledger control.
c. Confirmation of note receivable balances with the debtors.
d. Examination of notes for appropriate debtors' signatures.
30. A logical substantive test for accrued interest receivable would be to
a. Verify the interest income by a calculation based on the face amount of notes and the nominal interest rate
b. Recalculate interest earned and compare it to the amounts received.
c. Verify the cost, carrying value, and market value of notes receivable.
d. Compare the interest income with published interest investment records-
PROBLEM NO. 7
On December 31, 2011, La Cost Company's financial statements showed the following balances related to its securities accounts:
Trading securities P 1,477,500
Available-for-sale securities (AFS) 1,180,000
La Cost's securities portfolio on December 31, 2011, was made up of the following securities:
Classification
Trading
Trading
Trading
Available for sale
Available for sale
Cost
750,000
550,000
250,000 590,000 490,000
Fair Value
762,500
528,250 186,750 630,000 550,000
Security
10,000 Yeye
Bonel Corp.
shares
8,000 Totoy Bibo
Inc. shares
10% Mayniladlad
bonds
10,000 Bulaklak
Inc. shares
20,000 Jumbo
Inc. shares
During 2012, the following transactions took place:
Mar. 1 Purchased 3,000 additional shares of Yeye Bonel Corp. for P229,500, classified as held for trading.
Apr. 15 Sold 4,000 shares of Totoy Bibo Inc. for P69 per share.
May 4 Sold 4,000 shares of Bulaklak Inc. for P62 per share.
Oct. 30 Purchased 15,000 shares of Pasaway Co. for P832,500, classified as held for trading.
The fair values of the shares and bonds on December 31, 2012, are as follows:
Yeye Bonel Corp. shares P76.60 per share
Totoy Bibo Inc. shares P68.50 per share
Pasaway Co. shares P55.25 per share
Mayniladlad water bonds P205,550
Bulaklak Inc. shares P61.00 per share
Jumbo Unlimited Inc. shares P27.00 per share
QUESTIONS:
Based on the above and the result of your audit, determine the following:
31. Gain or loss on sale of 4,000 Totoy Bibo Inc. shares on April 15, 2012
a. P1,000 gain c. P 1,875 gain
b.. P1,000 loss d. P 1,875 loss
32. Net realized gain or loss on sale of 4,000 Bulaklak Inc. shares on May 4, 2012
a. P12,000 gain c. P12,000 loss
b. P 4,000 gain d. P 4,000 loss
33. Carrying amount of Trading Securities as of December 31, 2012
a. P2,337,000 c. P2,304,100
b. P2,287,800 d. P2,297,400
34. Carrying amount of Available for Sale Securities as of December 31, 2012
a. P844,000 c. P906,000
b. P806,000 d. P944,000
35. In 2012, what amount of unrealized gain or loss should be shown as component of income and equity?
Income Equity
a. P28,725 gain P62,000 gain
b. P28,725gain P22,000 loss
c. P32,900 loss P122,000 loss
d. P39,600 gain P78.000 gain
PROBLEM NO. 8
On January 2, 2011, the Lakers, Inc. issued P4,000,000 of 8% convertible bonds at par. The bonds will mature on January 1, 2014 and interest is payable annually every January 1. The bond contract entitles the bondholders to receive 6, P100 par value, ordinary shares in exchange for each P1,000 bond. On the date of issue, the prevailing market interest rate for similar debt without the conversion option is 10%.
On December 31, 2012, the holders of the bonds with total face value of P2,000,000 exercised their conversion privilege. In addition, the company reacquired at 110, bonds with a face value of P1,000,000.
QUESTIONS:
Based on the above and the result of your audit, answer the following:
36. How much of the proceeds from the issuance of convertible bonds should be allocated to equity?
a. P1,268,000 c. P443,328
b. P 253,632 d. P 0
37. How much is the carrying amount of the bonds payable as of December 31, 2011?
a. P4,000,000 c. P2,778,800
b. P3,592,340 d. P3,801,000
38. How much is the interest expense for the year 2012?
a. P320,000 c. P277.880
b. P359,234 d. P380.100
39. The conversion of the bonds on December 31, 2012 will increase share premium by
a. P730,553 c. P800.000
b. P615,786 d. P 0
40. How much is the loss on bond reacquisition on December 31, 2012?
a. P100,000 c. P134,724
b. P192,106 d. P 0
PROBLEM NO. 9
Perseverance Corporation was authorized at the beginning of 2010 with 300,000 authorized shares of P100, par value ordinary shares. At December 31, 2010, the shareholders' equity section of Perseverance was as follows:
Share capital, par value PI00 per share;
authorized 300,000 shares; issued
30,000 shares P3,000,000
Share premium 300,000
Retained earnings 450,000
Total shareholders' equity P3,750,000
On June 15, 2011, Perseverance issued 50,000 ordinary shares for P6,000,000. A 5% share dividend was declared on September 30, 2011 and issued on November 10, 2011 to shareholders of record on October 31, 2011. Market value of ordinary share was 110 per share on declaration date. The profit of Perseverance for the year ended December 31, 2011 was P475,000.
During 2012, Perseverance had the following transactions;
Mar. 1 Perseverance reacquired 3,000 shares of its ordinary shares for P95 per share.
May 31 Perseverance sold 1,500 treasury shares for P120 per share.
Aug. 10 Issued to shareholders one right for each share held to purchase two additional ordinary shares for P125 per share. The rights expire on December 31, 2012.
Sep. 15 25,000 rights were exercised when the market value of ordinary share was P130 per share.
Oct. 31 40,000 rights were exercised when the market value of the ordinary share was P140 per share.
Dec. 10 Perseverance declared a cash dividend of P2 per share payable on January 5, 2013 to shareholders of record on December 31, 2012.
Dec. 20 Perseverance retired 1,000 treasury shares and reverted them to an unissued basis. On this date, the market value of the ordinary share was P150 per share.
Dec. 31 Profit for 2012 was P500,000.
QUESTIONS:
Based on the above and the result of your audit, determine the following as of December 31, 2012:
41. Share capital
a. P 21,400,000 c. P 14,800,000
b. P 21,300,000 d. P 21,250,000
42. Share premium
a. P 4,627,500 c. P4,632,500
b. P 3,007,500 d. P4,592,000
43. Total retained earnings
a. P 600,000 c. P 557,000
b. P 565,000 d. P 560,000
44. Total equity
a. P 26,397,500 c. 26,492,500
b. P 25,932,500 d. 26,445,000
45. An auditor usually obtains evidence of shareholders' equity transactions by reviewing the entity's
a. Canceled stock certificates.
b. Transfer agent's records.
c. Treasury stock certificate book.
d. Minutes of board of directors meetings.
PROBLEM NO. 10
Bryant Corporation, a nonpublic entity, was incorporated on December 1, 2011, and began operations one week late closing the books for the fiscal year ended November 30, 2012, the controller prepared the following financial statements:
Bryant Corporation
Statement of Financial Position
November 30, 2012
Assets
Current assets:
Cash P 150,000
Marketable securities, at cost 60,000
Accounts receivable 450,000
Allowance for doubtful accounts (59,000)
' Inventories 430,000
Prepaid insurance 15,000
Total current assets 1,046,000
Property, plant and equipment 426,000
Less accumulated depreciation (40,000)
Property, plant and equipment, net 386,000
Research and development costs 120,000
Total assets 1,552,000
Liabilities & Shareholders' Equity
Current liabilities:
Accounts payable and accrued expenses P 592,000
Income taxes payable 224,000
Total current liabilities 816,000
Shareholders' equity:
Share capital, P10 par value 400,000
Retained earnings 336,000
Total shareholders' equity 736,000
Total liabilities and shareholders' equity 1,552,000
Bryant Corporation
Statement of Income
For the Fiscal Year Ended November 30, 2012
Net sales 2,950,000
Cost of sales 1,670,000
Operating expenses:
Selling and administrative 650,000
Depreciation 40,000
Research and development 30,000
Income before income taxes 560,000
Provision for income taxes 224,000
Net income 366,000
Bryant is in the process of negotiating a loan for expansion purposes, and the bank has requested audited financial statements. During the course of the audit, the following additional information was obtained:
a. The investment portfolio consists of short-term investments in marketable equity securities with a total market valuation of P55,000 as of November 30, 2012.
b. Based on an aging of the accounts receivable as of November 30, 2012, it was estimated that P36.000 of the receivables will be uncollectible.
c. Inventories at November 30, 2012 did not include work in process inventory costing P12,000, sent to an outside processor on November 29, 2012.
d. A P3,000 insurance premium paid on November 30, 2012 on a policy expiring one year later was charged
to insurance expense.
e. Bryant adopted a pension plan on June 1, 2012 for eligible employees to be administered by a trustee. Based upon actuarial computations, the first twelve months' normal pension was estimated at P4S.000.
f. On June 1, 2012, a production machine purchased for P24,000 was charged to repairs and maintenance.
Bryant depreciates machines of this type on the straight-line method over a five-year life with no salvage value, for financial and tax purposes.
g. Research and development costs of P150.000 were incurred the development of a patent, which Bryant
expects to be granted during the fiscal year ending November 30, 2013. Bryant initiated a five-year amortization of the P150,000 total cost during the fiscal year ended November 30, 2012.
,h. During December 2012, a competitor company filed suit against Bryant for patent infringement claiming P200,000 damages. Bryant's legal counsel believes that an unfavorable outcome is probable. A reasonable estimate of the court's award to the plaintiff is P50,000.
i. The 40% effective tax rate was determined to be appropriate for calculating the provision for income taxes for the fiscal year ended November 30, 2012. Ignore computation of the deferred portion of income taxes.
QUESTIONS:
Based on the above and the result of your audit determine the following as of and for the year ended November 30, 2012:
c. P235,260
d. P239,760
46. Net income
a. P253,260
b. P283,260
c. Pl,079,000
d. PI,073,000
47. Current assets
a. P1,084,000
b. Pl,061,000
48. Total assets
c. P1,489,200 d. P1,491,600
a. Pl,484,200
b. Pl,486,600
49. Total liabilities
c. P855,840
d. P805, 840
a. P833,340
b. P783,340
50. Total equity
c. P639,760 d. P653,260
a. P683,260
b. P635,260
_END OF EXAMINATION_
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