Chapter 2 – Suggested Answers (APC-2011)
.
g.
5.
i.
2.
e$re#iation Ex$ense i#e Eui$ent *##uu(ated e$re#iation i#e Eui$ent P'80,000 ÷ % =P96,000 3 P120,000 ÷ % x 9/12 = P18,000 u$$(ies on 4and u$$(ies Ex$ense Renta( Revenue Unearned Rent P60,000 x '/6 P'0,000
11',000 11',000
&,%00 &,%00 '0,000 '0,000
"n#oe uar er#5andise "nventor
100,000
er#5andise "nventor "n#oe uar
120,000
100,000
120,000
a, !, #, e, g 5
E 1-& 1. a.
"n#oe uar "nventor, !eg. "nventor, end "n#oe uar
!.
2.
page 2
"nventor, end Pur#5ases Returns ost o oods o(d Pur#5ases :reig5t-in "nventor, !eg.
%0,000 %0,000 1'0,000 1'0,000 1'0,000 20,000 2,000,000 2,100,000 10,000 %0,000
*$$roa#5 2 a. a(es "nterest Revenue "n#oe uar
%,000,000 2%,000
!.
"n#oe uar ost o oods o(d *dinistrative Ex$ense a(es Returns a(es is#ounts e((ing Ex$enses "nterest Ex$ense
2,980,000
"n#oe uar astro, a$ita(
2,0'%,000
#.
%,02%,000 2,000,000 %00,000 %,000 10,000 '%0,000 1%,000
2,0'%0,000
Chapter 2 – Suggested Answers (APC-2011)
d.
page 3
astro, a$ita( astro, ra+ing
%00,000 %00,000
E 1-' 1. *((o+an#e or Un#o((e#ti!(e *##ounts 2. Rent Ex$ense &. i#e u$$(ies Ex$ense '. a(aries Paa!(e %. Pre$aid "nsuran#e 6. "nterest Revenue 7. "nterest Paa!(e 8. Unearned Rent 9. *##uu(ated e$re#iation 10. "n#oe uar E 1-% 1. 2. &. '. %.
* * * * ;
6. 7. 8. 9. 10.
; or * * ;
11. 12. 1&. 1'. 1%.
; * * *
16. 17. 18. 19. 20.
; * ; ;
P 1-1 1.
a.
!
Pre$aid "nsuran#e "nsuran#e Ex$ense P72,000 x &&/&6 = P66,000
66,000
"nsuran#e Ex$ense Pre$aid "nsuran#e
66,000
Unearned Rent Rent Revenue P1&%,000 x 2/9
&0,000
66,000
66,000
&0,000
no reversing entr #.
u$$(ies Ex$ense u$$(ies P12,000 P&,000 = P9,000
9,000 9,000
no reversing entr d.
e$re#iation Ex$ense *##uu(ated e$re#iation P1%0,000/10 x 9/12< = P11,2%0 no reversing entr
11,2%0 11,2%0
Chapter 2 – Suggested Answers (APC-2011)
e.
Un#o((e#ti!(e *##ounts Ex$ense *((o+an#e or Un#o((e#ti!(e *##ounts
page 4
7,%00 7,%00
no reversing entr .
g.
5.
"nterest Re#eiva!(e "nterest Revenue P%0,000 x 12) x &0/&60 = P%00
%00
"nterest Revenue "nterest Re#eiva!(e
%00
%00
%00
a(ar Ex$ense a(aries Paa!(e
1%,000
a(aries Paa!(e a(ar Ex$ense
1%,000
er#5andise "nventor "n#oe uar
1%,000
1%,000 120,000 120,000
P 1-2 a.
!.
#.
d.
e.
.
"n#oe uar er#5andise "nventor
'0,000
er#5andise "nventor "n#oe uar
%0,000
'0,000
%0,000
a(es Pur#5ase Returns *((o+an#e "n#oe uar
1,900,000 &0,000
"n#oe uar a(es Returns and *((o+an#e Pur#5ases :reig5t-in u$$(ies Ex$ense "nsuran#e Ex$ense a(ar Ex$ense e$re#iation Ex$ense i#e Ex$ense
1,&'&,000
"n#oe uar (son, a$ita( (son, a$ita( (son, ra+ing
1,9&0,000
%0,000 1,000,000 '0,000 6,000 9,000 180,000 8,000 %0,000 %97,000 %97,000 60,000 60,000
Chapter 2 – Suggested Answers (APC-2011)
page 5
P 1-& Adjusting Entr a. !. #. d. e. . g.
P 1-' 1. a.
!.
#.
d.
Income Statement Revenue E!"enses #et Income NE 3 3 NE 3 NE 3 NE 3 NE 3 3 NE 3 NE 3 -
oissions Re#eiva!(e oissions "n#oe Rent Ex$ense Pre$aid Rent i#e u$$(ies Ex$ense i#e u$$(ies e$re#iation Ex$ense *##uu(ated e$re#iation
Statement of Financial Position Assets $ia%ilities Ca"ital NE 3 3 NE 3 NE NE NE NE 3 NE 3 -
7,200 7,200 &6,000 &6,000 6,600 6,600
2,'00 2,'00
e.
.
g.
2.
a.
!.
#.
d.
a(aries Ex$ense a(aries Paa!(e
',800
Unearned oissions oissions "n#oe
8,000
"nterest Ex$ense "nterest Paa!(e
1,200
',800
8,000
1,200
"n#oe uar a(aries Ex$ense Rent Ex$ense i#e u$$(ies Ex$ense e$re#iation Ex$ense i#e Eui$ent "nterest Ex$ense
111,000
oissions "n#oe "n#oe uar
17%,200
6',800 &6,000 6,600 2,'00 1,200
17%,200
"n#oe uar a(de>, a$ita(
6',200
a(de>, a$ita( a(de>, ra+ing
&2,000
6',200
&2,000
Chapter 2 – Suggested Answers (APC-2011)
page 6
&. Net "n#oe = P6',200 P 1-% 1. "nsuran#e Ex$ense Pre$aid "nsuran#e 2.
&.
'.
&0,000 &0,000
e$re#iation Ex$ense i#e Eui$ent e$re#iation Ex$ense *utoo!i(e *##uu(ated e$re#iation i#e Eui$ent *##uu(ated e$re#iation - *utoo!i(e
7%,000 260,000 7%,000 260,000
Unearned anageent :ees anageent :ees Earned P120,000 x '/6 = P80,000
80,000
Pre$aid *dvertising *dvertising Ex$ense P100,000 x 2/% = P'0,000
'0,000
&ulti"le Choice 1. 2. &.
'. %. 6.
80,000
'0,000
;
7. 8. 9.
;
10. 11. 12.
? 1 1. 2. &. '. %.
? : ? : :
6. 7. 8. 9. 10.
? : : ? ?
11. 12. 1&. 1'. 1%.
: : : : ?
16. 17. 18. 19. 20.
: ? : : ?
? 2 1. 2. &. '. %.
; *
6. 7. 8. 9. 10.
; ; *
11. 12. 1&. 1'. 1%.
; *
16. 17. 18. 19. 20.
; ;
? & 1. 2. &. '. %.
; ;
6. 7. 8. 9. 10.
*
11. 12. 1&. 1'. 1%.
* *
16. 17. 18. 19. 20.
* *
?' 1. 2. &. E ? % 1. 2. &. '.
; 4 N
'. %. 6.
; *
6. 7. 8. 9.
7. 8. 9.
: E * "
*
11. 12. 1&. 1'.
10. 11. 12.
P ?
* E
16. 17. 18. 19.
21. 22. 2&. 2'. 2%.
1&. ; 1'. * 1%. *
? ? ? : ?
21. 22. 2&. 2'. 2%. 1&. 1'. 1%.
@ A
; * ;
; * ; * * *
Chapter 2 – Suggested Answers (APC-2011)
%.
B
10.
C
page 7
1%.
D
20.
