CPA Review School of the Philippines Manila Practical Accounting Problems 2 First Pre-board Examination Multiple choices: mark fully with pencil no. 2 the letter of your choice on the answer sheet provided. Make the mark Dark but do not use too much pressure. Erasures are strictly not allowed. 1. The following amounts were taken from the statements of affairs for ABC Company: Unsecured liabilities with priority Stockholder’s equity Estimated liquidation that have not been entered In the accounting records Unsecured liabilities without priority Loss on realization of asset
131, 250 472, 500 59, 060 1, 181, 250 590, 625
How much is the total free assets? a. P, 1004, 060 b. P1, 021, 685 c. P1, 063, 125 d. P1, 135, 315 2. J and P formed a joint venture to purchase and sell a special type of merchandise. The ventures agreed to contribute cash of P30, 000 each to be used in purchasing the merchandise and to share profits and losses equally. They also agreed that each shall record his purchases, sales and expenses in their own books Upon termination of the joint venture, the following data are made available: J P Joint venture P26, 000 CR P23, 400 CR Inventory taken 800 2, 500 Expenses paid from JV cash 1, 200 2, 200 How much cash is to be received by J in the final settlement? a. P52, 700 b. P55, 550 c. P56, 350 d. P56, 750 3. Partners A, B and C shares profits and losses in the ratio of 5:3:2 at the end of very unprofitable year, they decided to liquidate the firm. The partner capital account balances at this time are as follows A, P616, 000; P697, 200; C, P420, 000. The liabilities accumulate to P840, 000, including
a loan of P280, 000 from A. The cash balance is P168, 000 all the partners are personally solvent. The partners to sell the asset in instalment If B received P100, 800 from the first distribution of cash how much did C receive at that time? a. P56, 000 b. P22, 400 c. P33, 600 d. P61, 600 4. Peace inc. Uses the percentage of completion method in recognizing income in 2010 the company was engaged by World on a fixed price contract to build a 10 story building On January 1, 2011, a fire damaged the accounting records of Peace. The following data were taken from the salvage files: 12/13/2010 12/13/2011 Architect’s estimated cost of completion 1, 875, 000 2, 000, 000 Cost incurred 750, 000 Percentage of completion 60% Income recognized to date 125, 000 300, 000 What is the percentage of completion in 2010? a. 40% b. 25% c. 30% d. 20% 5. Jack and Jill agreed on a joint venture to purchase and sell custom made items. They agreed to contribute P50, 000 each to be used in purchasing the merchandise, share equally in any gain or loss and record their venture transaction in their individual books, upon the termination of the venture the following information were available: Joint venture account credit balance: jack P36, 000; Jill P40, 400 Cost of custom made items taken by: Jack P3, 000; Jill P5, 800 Expenses paid: by Jack P3, 700; Jill P4, 600 Compute for the joint venture profit: a. P76, 400 b. P84, 700 c. P67, 600 d. P85, 200 6. Wall clock Inc. Sold stock by giving a trade discount of 10% to all its customers. On May 1 2010 five units sold to Mr. Mark. The company accepted a used cock as trade in and granted an allowance of P20, 000 the current market value of the computer is P24, 000. The balance was payable as follows 20% of the balance paid at the time of sale. The rest is payable in 10 months
starting in June 1, 2010 after six months of paying Mr. Mark defaulted in the payment of December, 1, 2010. He five units of clock were repossessed with appraised value of P31, 000 before reconditioning cost. The reconditioning cost of clock P20, 000 and a 15% gross profit rate was normal from the sale of used clocks operating expenses for the year was P10, 760. What is the net income (loss) for 2010? a. 33, 440 b. (26, 840) c. 35, 720 d. 26, 600 7. Enteng Company acquired all of Agimat corporations assets and liabilities on October 2, 2009 in a business combination at that date. AgIMAT reported asset with a book value of P2, 496, 000 and liabilities of P1, 424, 000. ENTENG noted that AGIMAT had P160, 000 of research and development costs at the acquisition date that did not appear of any value ENTENG also determined that patents developed by AGIMAT had a fair value of P480, 0000 but had not been recorded by AGIMAT. Except for building and equipment ENTENG determined the fair value of all other asset and liabilities reported by AGIMAT approximately the recorded amount. In recording the transfer of asset and liabilities in its books, ENTENG recorded goodwill of P372, 000. ENTENG paid P2, 068, 000 to acquire AGIMAT’s asset and liabilities if the book value of AGIMAT’s building and equipment was P1, 364, 000. What was their fair value? a. 1, 508, 000 b. 144, 000 c. 304, 000 d. 1, 668, 000 8. The accounts of the partnership of X, Y and Z at the end of its fiscal year on November 30, 2010 as follows: Cash Other non cash assets Loan to R Liabilities
P103, 750 707, 500 15, 000 262, 500
loan from S X, Capital (30%) Y, Capital (50%) T, Capital (20%)
P20, 000 266, 250 136, 250 141, 250
If in the first distribution, Y received P50, 000 which of the following is incorrect? a. Total amount distributed to partners is P336, 250 b. Total amount paid to creditors is P262, 500 c. Total amount realized from the non cash asset is P598, 750 d. X received an amount equal to P187, 500 9. On December 31, 2009, Joan a franchisor entered into a franchising agreement with Irish charging Irish a franchise fee of P1, 000, 000. Upon signing of the contract, a non refundable down payment of P250, 000 is paid with the balance payable in three equal annual instalment starting 2010. Joan had already performed 99.9% of the services as of Feb. 1,2010 at a cost of
P300, 000 Joan was able to collect the first instalment payment in 2010 but the collectability of the remaining balance is still doubtful. In its 2010 income statements, Joan should recognize profit of: a. P1, 000, 000 b. P175, 000 c. P250, 000 d. P350, 000 10. During 2009, Canlubang construction Inc. Started a constructions job with a total contract price of P600, 000. The job was completed on December 20, 2010. Additional data are as follows: 2009 2010 Actual cost incurred to date P225, 000 P480, 000 Estimated remaining cost 225, 000 Progress billings 240, 000 300, 000 Collections 200, 000 400, 000 Under the percentage of completion method, what amount should Canlubang Constructions recognizes as gross profit for 2010? a. P0 b. P45, 000 c. P80, 000 d. P120, 000 11. On July 1, 2010. Mary Ann Inc. acquired most of the outstanding common stock of Pepito Company for cash. The incomplete working paper elimination entries on that date for the consolidated statements of financial position of Many Ann, Inc. And its subsidiary are shown below:
E(1) stockholder’s equity- Pepito Investment in Pepito Non-controlling interest
975, 000
E (2) inventories 25, 000 Equipment 125, 000 Patent 24, 500 Goodwill ? Investment in Pepito Non-controlling interest
633, 750 341, 250
187, 500 ?
Assuming NCI is measured at fair value. What is the amount of goodwill to be reported in the consolidated statements of financial position on Jul 1, 2010 if there is a control premium of P27, 500?
a. P71, 654 b. P128, 769 c. P99, 154 d. P113, 962 12. On January 2, 2010, POKEMON signed an agreement to operate as a franchise of DIGIMON for an initial franchise fee of P10, 000, 000 for 10 years. Of this amount P2, 000, 000 was paid when the agreement was signed and the balance payable in four equal amount payments beginning on December 30, 2010. POKEMON signed a non interest bearing note for the balance. POKEMON rating indicates that it can be borrow money at 24% for a loan of this type. PV of an annuity of 1 for 4 periods at 24$ is 2.4 assume that the substantial services amounting to 1, 020, 000 had already been rendered by DIGIMON and that additional indirect franchise cost of P272, 000 was also incurred if the collection of the note is not reasonably assured, the realized gross profit for the year ended Dec. 31, 2010 is: a. 5, 780, 000 b. 2, 420, 800 c. 2, 148, 800 d. 5, 508, 000 13. On December 1, 2009, LOJ Inc. Authorized Siber Company to operate as a franchise for an initial franchise fee of P150, 000. Of this amount P60, 000 was received upon signing the agreement and the balance, represented by a note, is due in three annual payments of P30, 000 each beginning December 31, 2010. The present value on December 31, 209 for three annual payments appropriately discounted at P72, 000. According to the agreement, the nonrefundable down payment represents a fair measure of the services already performed by LOJ and substantial future services are still to be rendered. However, collectability of the note is reasonably certain LOJ’s December 31, 2009 balance sheet should report unearned franchise fee from Cloe Company in the amount of a. P132, 000 b. P90, 000 c. P60, 000 d. P72, 000 14. On January 1, 2011. Mr. CPA got the franchise of Jollibee. The franchise agreement provides a P500, 000 initial franchise fee, payable P100, 000 upon signing of the franchise contract and the balance in four annual instalments starting December 31, 2011. At present values using 12% as discount rate, the four instalments would approximate P199, 650. The fees once paid are not refundable; the franchise may cancel subject to the provisions of the agreement. Should there be unpaid franchise fees attributed to the balance of the initial franchise fee, it would become due and demandable upon cancellation. Further the franchisor is entitled to a 5% continuing fee on gross sales payable monthly within the first ten days of the following month. The first year of operations yielded gross sales of P9 million. The collectability of the note is not assured On December 31, 2011 what is the earned franchise fee
a. P550, 000 b. P749, 650 c. P650, 000 d. P950, 000 15. On January 1, 2011, A acquired a 50% interest in B for P60 million. A already held a 20% interest which had been acquired fro P20 million but which was valued at P24 million at January 1, 2011. The fair value of the NCI at January 1, 2011 was P30 million and the fair value of the identifiable net assets of B was P110 million. How much is the goodwill to be recognized as a result of the business combination? a. 3, 000, 000 b. 7, 000, 000 c. 0 d. 4, 000,000 16. On May 1, 2009, JAO builders obtained a contract to builds a building. The building was to built at a total cost of P10, 000, 000 and is scheduled for completion on May 2011. The contract contains a penalty clause to the effect that the other party was to deduct of P20, 000 fom the contract price for each week of delay. Completion was delayed five weeks. Below are data pertaining to the construction period?
Cost incurred Estimated cost to complete Progress billings
2009 1, 000, 000 4, 000, 000 800, 000
2010 3, 680, 000 520, 000 8, 700, 000
2011 620, 000 2, 400, 000
Using the percentage of completion method, what is the realized gross profit (loss) for the year 2011? a. 650, 000 b. (70, 000) c. (20, 000) d. 480, 000 17. Joy is trying to decide whether to accept a bonus of 25% of net income after salaries and bonus or a salary of P243, 750 plus a bonus of 10% of net income after salaries and bonus as a means of allocating profit among the partners. Salaries traceable to the other partners are estimated to be P450, 000. What amount of income would be necessary so that Joy would consider the choices to be equal? a. P2, 750, 000 b. P3, 156, 250 c. P2, 275, 000 d. P2, 993, 750 18. The following statements of financial position for the partnership of CC, DD and EE were taken from the books on October 1, 2010
Asset Cash Other assets
1, 000, 000 4, 000, 000
liabilities and capital liabilities 2, 000, 000 CC, Capital 1, 200, 000 DD, Capital 950, 000 EE, Capital 850, 000 5, 000, 000
Total assets 5, 000, 000 The partners agreed to distribute profits as follows: a. Annual salaries to CC and DD of P50, 000 each b. Annual interest of 5% on beginning capital c. Bonus of 15% to CC based on income after salaries interest and bonus d. Remaining profit: 25% to CC, 35% to DD and 40% to EE The partnership began its operations on October 1,2010 and net income for the year ended Dec. 31, 2010 is P695, 000 which of the following is true? a. The bonus to CC is P58, 040 b. Net income after salaries interest and bonus is P386, 960 c. DD’s total share in the net income is P216, 875 d. EE’s share on the profit after salaries, interest and bonus is P135, 430 19. Angels Corp. Reported the following accounts for the year just ended 2011: Instalment receivable begs. – Sales of 2011 Instalments receivable beg. Sales of 2011 Deferred gross profit end, 2010 Deferred gross profit end 2011 Regular sales Cost of regular sales
2, 610, 000 1, 560, 000 380, 000 840, 000 1, 400, 000 1, 050, 000
The gross profit rate on instalment sales was 10% higher than regular sales. For 2011, the gross profit on instalments sales was 3% lower than in 2010. Total realized gross profit for 2011 is a. P252, 700 b. P286, 300 c. P602, 700 d. P636, 300 20. A home office ships inventory to its branch at 125% of cost during 2010. The required balance of the unrealized intercompany profit account is P438, 750 for year 2009. During year 2010, the home office sent merchandise to the branch costing 3, 920, 00. At the start of the year 2011. The branch balance sheet shows P1, 575, 000 inventory that was acquired from the home office a. 856, 250 b. 1, 103, 750 c. 907, 750 d. 1, 025, 000
21. On January 2, 2010 F group sold used equipment for P150, 000 resulting into gain of P45, 000 on that date G paid P25, 000 cash and P125, 000, 10% interest bearing note. And was payable in three annual instalments of P41, 667 beginning January 2, 2011. F appropriately accounted for the sale under the instalments method. G made a timely payment of the first instalments on January 2, 2011 of P54, 167 which includes an interest of P12, 500 what amount of deferred gross profit should F report at December 31, 2011? a. 28, 750 b. 25, 000 c. 30, 000 d. 37, 500 22. Ding, Dong and Dang decided to disclose their partnership on May 31, 2010. On this date their capital balances were as follows: Ding P87, 500 Dong 105, 000 Dang 35, 000 The following provision for sharing profits and losses is provided in the agreement income is distributed only as far as it is available: 1. Ding, who is the managing partner gets a salary of P180, 000 a year; the remaining partner gets a salary of P72, 000 each 2. Interest is imputed on the average capital balances at 12% per annum 3. Any remaining profits and losses are to be shared 3:2:5 The average capital balances during the period ended were P70, 000, P85, 000 and P27, 500 for Ding, Dong and Dang respectively. The net income from January to May 31, 2010 was P121, 500 also before liquidation on May (inclusive of customer deposits amounting to P4, 000). Liquidation expenses of P7, 500 was paid for Dong to receive P126, 400 in full settlement of his interest in the partnership how much must be realized from the sale of the partnership non-cash assets a. P408, 500 b. P416, 000 c. P457, 000 d. P402, 375 23. The Yvonne Inc. Opened an agency in Sampaloc, manila in 2008 the following is a summary of the transaction of the agency; Sales orders sent to Home office Sales orders filled by Home office in 2008 Freight to shipment to agency Collection net of 2% discount Selling expenses paid from the agency working fund
55, 000 46, 500 1, 100 39, 690 2, 820
Administrative expenses charged to agency Samples shipped to agency Cost Inventory. December 31, 2008
5% of sales 2, 000 1, 100
The company maintains its gross margin on agency sales at 30% excluding cost on shipment to agency. The agency net income must be: a. 4, 995 b. 5, 390 c. 5, 995 d. 6, 390 24. J, F and K formed a joint venture to purchase a piece of lot and to erect an apartment building for sale. J is to manage the venture hence. He will receive a bonus of 10% of the venture gain before deducting the bonus as expenses. Any remaining gain or loss is to be divided equally among the venture. The venture is completed on August 31, 2010. On this date, the accounts of F and K shows the following balances: Account with J Account with F Account with K
56, 000CR
56, 000Cr 112, 000cr
63, 000Dr.
There are unused constructions supplies which J agreed to take over at its cost of 147, 000 final settlements with the ventures will require payments as follows: a. J pays K P39, 200 and F pays K P49, 000 b. J pays K P89, 600 and F P50, 400 c. J pays F P50, 400 and K pays J P107, 800 d. J pays F P124, 600 and K pays J P50, 400 25. Anna and Janna are partner sharing profits and losses in the ratio of 6:4 respectively. On January 2 the partner decided to admit Hannah as a new partner upon her investment of P96, 000 on this date the interest in the partnership of Anna and Janna are as follows: Anna P138, 000; Janna P111, 600 assuming that the new partner is given ¼ interests in the firm. The agreed capital of the partnership is P360, 000. The admission of a new partner will result to which of the following: a. Goodwill is P20, 400 b. Bonus from Janna is P2, 400 c. Bonus to Hannah is P6, 000 d. Capital balance of Anna after admission is P150, 240 26. On June 1, 2011 the following payments were made by company A to the former owners and officers of Company B Cash paid, for settlement of pre-existing relationship PN issued, for remuneration for future employee services
P300, 000 1, 200, 000
Cash paid, for reimbursement for paying The acquirer’s acquisition costs
800, 000
Also company A issued 300, 000 shares with par value of P10 per share and market price of P45 per share in exchange for 60% ownership of the outstanding shares of company B the net assets of Company B on this date is P24, 375, 000. Company opted to use the partial goodwill method in this transaction in addition, Company A incurred the following expenditures cost to issue equity amounting to P900, 000. Professional fees paid to independent values. P280, 000. Professional fees paid to lawyers taking part in the negotiation process- P350, 000. Fess to accountant of processing SEC registration of shares P60, 000. Fees to advisors and bankers P230, 000 since the parties cannot agree on true value of the acquire on the date of acquisition they contractually agreed that additional consideration of P8, 000, 000 will be paid in the event the net earnings of Company B reaches an average of p27, 000, 000 monthly for the next 6 months. On June 1, an estimate of the fair value of the liability is 2, 750, 000 it is assets as a possible obligation the payment did not materialize due to underperformance against the target during this period What should be the amount of goodwill (gain) in the December 31, 2011 consolidated statements of financial position as a result of this acquisition? a. 2, 450, 000 b. 75, 000 c. (P1, 125, 000) d. 1, 625, 000 27. The following information is available concerning random Inc. On the date the company entered bankruptcy proceedings: Account Cash Accounts receivable Inventory Prepaid expenses Building net Equipment net Goodwill Wages payable Taxes payable Accounts payable Notes payable Common stock Deficit
balance per books 5, 720 104, 520 56, 000 8, 600 118, 000 11, 200 15, 300 5,000 3, 620 158, 000 30, 300 144, 000 21, 580
Inventory with a book value of 40, 000 is a security for notes of P20, 200 the other notes are secured by the equipment Expected realizable values of the assets are: Accounts receivable Inventory Buildings Equipment
P88, 200 37, 000 45, 000 4, 000
What is the expected amount of cash partially secured creditors will receive? a. P10, 100 b. P5, 468 c. P9, 468 d. P9, 788 28. Ghost Fighter corp. operates a branch in Baguio city. At close of the business on Dec. 31, 2010 Baguio branch account in the home office books showed a debit balance of P485, 600 the interoffice accounts were in agreement at the beginning of the year. For purposes of reconciling the inter office accounts, the following facts were ascertained a. A branch customer remitted P10, 000 to the home office. The home office recorded this cash collection on Dec. 21, 2010 upon receiving a credit memo the branch recorded the transaction twice on Dec. 23, 2010 b. A home office customer remitted P12, 000 to the branch. The branch inadvertently recorded this transaction on Dec. 26, 2010 as a transfer of cash from the home office. The home office made no entry during the year. c. Branch collections of P75, 000 were deposited for the account of the home office on Dec. 29, 2010; sixty percent was credited on the home office bank account as of Jan. 9, 2011 and the balance was returned to the depositor marked NSF d. Merchandise shipments of P200, 000 made by the home office on Dec. 28, 2010 were received by the branch on Jan. 24, 2011. However, only ninety percent of this shipment was charged by the home office to Baguio branch; the balance was debited to other branch Compute the unadjusted balance of the home office current account as of Dec. 31, 2010 a. 442, 600 b. 232, 600 c. 242, 600 d. 212, 600 29. Prominence Inc. Is a contractor for the fabrication of motor service centres at the end of 2010 the following projects were in progress
Project 1 Project 2 Project 3
Contract price P3, 800, 000 9, 000, 000 13, 250, 000
cost incurred 2, 070, 000 5, 670, 000 1, 800, 000
estimated cost to complete 1, 380, 000 2, 430, 000 10, 200, 000
During the year 2011, the following cost was incurred: Project 1- P1, 030, 000 (estimated cost to complete, P776, 000) Project 2- P2, 580, 000 (project completed) Project 3- P5, 700, 000 (estimated cost to complete P5, 000, 000) Project 4- P1, 500, 000 (contract price, P7, 200, 000; estimated cost to complete, P4, 500, 000) Using the zero profit method, the total gross profit to be reported in 2011 would be: a. P0 b. P675, 000 c. P750, 000 d. P825, 000 30. XYZ company is engaged in merchandising both at home office in mania and branch in Davao. Selected accounts in the trial balances of the home office. And the branch at December 31, 2010 follows: Debits Inventory, January Branch current Purchases Shipment from Home office Freight in from home office Sundry expenses
Home office 115, 000 291, 500 950, 000
250, 000
branch 57, 750
525, 000 27, 500 125, 000
Credits Home office current 266, 500 Sales 775, 000 700, 000 Shipments to branch 550, 000 Allowance for overvaluation of branch inventory Jan. 1 5, 000 Additional information: Davao branch receives all its merchandise from the home office. The home office bills the goods at cost plus 10% mark up. At December 31, 2010 a shipment with a billing rice of P25, 000 was in transit to the branch. Freight on this shipment was P1, 250 which is to be treated as part of inventory December 31, 2010 inventories, excluding the shipment in transit was:
Home office at cost Davao branch at billed value (excluding freight of P2, 600)
150, 000 52, 000
Refer to data above the true net income of the branch: a. 52, 350 b. 57, 350 c. 62, 350 d. 67, 350 31. Examination of the reciprocal accounts between Manila Home office and Cebu branch shows the following: I. P10, 000 advertising expense of another branch was erroneously charged by the home office to Cebu branch II. Cebu recorded shipment of merchandise form Home office amounting to P75, 000 twice III. Home office recorded cash transfer of P65, 700 from Cebu branch as coming from Davao branch IV. Transfer of equipment from Home office amounting to P53, 000 was not recorded by the branch V. Cebu recorded a debit memo from Home office of P5, 540 as P5, 450 How much is the net adjustment to Cebu branch current account and to the Home office current account? Cebu branch current account
home office account
a. P75, 700DR P20, 910 DR b. 75, 700CR 21, 910DR c. 75, 700DR 21, 910 CR d. 65, 700 CR 22, 000 CR 32. On April 1, 2011, the R and R company paid P30, 000, 000 to the number stockholders of S&S to acquire 75% ownership interest (representing 135, 000 shares outstanding of S&S) in a transaction properly accounted for as acquisition on this date, the asset and liabilities of S&S company were as follows: Cash Inventories Plant asset Liabilities
1, 200, 00 7, 500, 000 31, 000, 000 13, 500, 000
Furthermore it was determined that the merchandise inventory of S&S company had a fair market value of P8, 250, 000 and the plant assets of P25, 650, 000 what should be the amount reflected as goodwill (gain) by R&R company in its separate financial statements as a result of the business combination?
The NCI is initially measured at fair value Quoted price on the date of acquisition of S&S shares is at P175, 000 per share. a. P0 b. P16, 275, 000 c. P13, 800, 000 d. P18, 400, 000 33. On January 1, 2010 congratulation Inc. Issues 12, 000 shares of its P10 par value stock to acquire the net assets of successful Inc. Underlying book value and fair value information for the balance sheet items of successful at the time of acquisition are as follows: Book value fair value Cash P80, 000 P80, 000 Accounts receivable 120, 000 120, 000 Inventory 60, 000 115, 000 Land 50, 000 70, 000 Building and equipment 400, 000 350, 000 Less: accumulated depreciation (120, 000) Total assets 590, 000 735, 000 Accounts payable 30, 000 30, 000 Bonds payable 200, 000 180, 000 Common stock (P5 par value) 150, 000 Additional paid in capital 70, 000 Retained earnings 140, 000 Total liabilities and equities 590, 000 Successful Inc. Shares were selling at P18 and congratulations Inc. Were selling at P50 just before the merger announcement. Additional cash payment made by congratulations Inc. In completing the acquisition were: Broker’s fee paid to firm that located successful Engagement fee on agreed upon procedures for share issuance Legal fees for the merger Cost of SEC registration of congratulations shares
P15, 000 10, 000 12, 000 7, 000
What is the amount of additional paid in capital by congratulations related to the issuance of shares? a. P463, 000 b. P436, 000 c. P448, 000 d. P473, 000 34. Cinco a partner of Antonio and Danna decided to withdraw from the ACD partnership Cinco’s shares in the profit and losses was 25% while that of Antonio and Danna are 50% and 25%
respectively. In the final settlement of his interest he was paid 9500, although the capital balance before his retirement was only 85, 000 the 10, 000 difference implied that an equipment of the partnership was undervalued prior to recording Cinco’s withdrawal and adjustment was made by the partnership to bring the equipment to its fair value The total of partner capital before any adjustment and before Cinco withdrawal was 340, 000 what would be the partnerhip net asset after the withdrawal of Cinco? a. 285, 000 b. 245, 000 c. 295, 000 d. 325, 000 35. The following data were taken from the statement of realization and liquidation of ABC corp. For the quarter ended June 30, 2010 Asset to be realized Supplementary credits Liabilities to be liquidated Supplementary charges Liabilities not liquidated Liabilities liquidated Assets acquired Assets realized Liabilities assumed Assets not realized
P160, 000 220, 000 160, 000 196, 000 60, 000 200, 000 80, 000 60, 000 100, 000 180, 000
The ending capital balances of capital stock and retained earnings are P200, 000 and P36, 000 respectively. How much is the ending balance of cash? a. P118 000 b. P70, 000 c. P116, 000 d. P90, 000
