Kahoot Questions
The minimum stated value of no-par value share is: -5 pesos per share -10 pesos per share -1 peso per share, or; -3 peso per share
5 PIECES PER SHARE Explanation: " The minimum stated value of no-par value share is five pesos (P5.00) per share" (Ballada, 2020; p. 14-8) "... no-par value shares must be issued for a consideration of at least Five pesos (P5.00) per share" (Revised Corporation Code of the Philippines; Sec. 6; RA 11232)
A special journal containing columns for cash, PD, and AP. This journal is -a cash disbursements journal -a cash receipts journal -a purchases journal, or; -a sales journal
A CASH CASH DISBURSEMENTS JOURNAL Explanation: B. Cash Receipts Journal: Cash, SD, AR, Sales C. Purchases Journal: AP, Purchases D. Sales Journal: AR, Sales
It is the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information. Whose definition is this? -AAA -ASC -AICPA, or; -FASB
AAA (American Association of Accounting?) Explanation: (Ballada, 2020; p. 1-4) B. Accounting is a service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities, that is intended to be useful in making economic decisions. C. Accounting is the art of recording, classifying, and summarizing in a significant manner and in terms of money, transaction, and events, which are in part at least of a financial character and interpreting the results thereof. D. Accounting is an information system that measures, processes and communicates financial information about an economic entity
Prepare the correcting entries to correct the accounts of SAMSAN TECH CORPORATION. Do not reverse the original entry. dr. common stock, cr. paid-in capital in excess of stated value 60,000: July 1. Cash ...............................................210,000 Common Stock ...................................... 210,000 (issued 15,000 shares of no-par common stock, stated value $10 per share)
Answer: Dr. Common Stock /// Cr. Paid-In capital in excess of stated value 60,000 Explanation: Correct Entry: Correcting Entry: Cash 210,000 Common Stock 60,000 Common Stock 150,000 Paid-In Cap. 60,000 Paid-in Capital 60,000
X-Con Company regularly buys merchandise from Y-Con Company and is allowed trade discounts of 15% and 10% from the list price. Ex-Con made a purchase on May 20, 2013, and received an invoice with a list price of 150,000, a freight charge of P2,500, and payment terms of net 45 days. What is the total trade discounts to be recorded in the books of Y-Con? -35,350 -0 -22,500 -12,750
Answer: 0 HELLO MS. TRICK Explanation: "There is no trade discount account and there is no special accounting entry for this discount. Instead all accounting entries are based on the invoice price which is obtained by subtracting the trade discount from the list price" (Ballada, 2020; p. 7-10)
Hansel and Gretel formed a partnership. Hansel contributed cash of P 93,500 and a computer costing P70,000. Gretel contributed equipment costing P130,000. The current market value of the assets are as follows: Equipment - Php 145,000 Computer - Php 85,500 The partnership will assume a Php 33,000 liability on the equipment. Compute the balance of Abby.
Answer: 112,000 Explanation: Journal Entry: Equipment 145,000 Cash 93,500 Liability assumed (33,000) Equipment 230,500 Abby CB 112,000 Accounts Payable 33,000 Abby, Capital 112,000 Hansel, Capital 179,000
Assuming that 25% of the treasury stock is sold at 20 per share, the balance in the Treasury Stock account would be? Problem: The following items were shown on the balance sheet of Herman Corporation on December 31, 2008: Stockholder's Equity Paid-In Capital Capital Stock Common Stock, $5 par value, 360,000 shares authorized; __________ shares issued and ___________ outstanding............................................................................................................$1,650,000 Additional paid-in capital In excess of par value............................................................ $165,000 Total paid-in capital ............................................................ 1,815,000
Answer: 245,000 Explanation: 180,000 ÷ 15,000 shares = Php. 12.00/share 15,000 x 75% [100% - 25%] = 11,250 shares 11,250 shares x Php. 12.00 = Php. 135,000.00
Repay sold goods to Zigko for cash with a catalogue price of Php 302,000 and with trade discount of 5%, 8%, 12%. Repaa Co., is a VAT-registered business. Sales is VAT-exclusive. Find the amount due.
Answer: 260,147 Explanation: (see Ballada, 2020; p. 7-10 for further reference) List Price 302,000.00 5% TD 15,100.00 Balance 286,900.00 8% TD 22,952.00 Balance 263,948.00 12% TD 31,673.76 Balance 232,274.24 12% VAT + 27872.91 Amount Due 260,147. 15 or 260,147
Purchased merchandise on account, terms: FOB Shipping point, 5 / 10 ; 4 /15 ; 3/20 n/60. The related invoice is priced at P31,320 (including a freight charge of P5,000). WHAT IS THE AMOUNT OF THE INPUT TAX?(VAT INCLUSIVE) -600 -2,820 -535.71 -3,355.71
Answer: 3,355.71 Explanation: (see Ma'am Gabayan's Part 2 VAT PPT, Mar. 10 transaction for similar illustrative problem and solving) 31,320 ÷ 112% = 27964.29 x 12% = 3355.71 Journal Entry Purchases 23,500 Freight In 4,464.29 Input Tax 3,355.71 Accounts Payable 31,320
Insurance Expense: 3,000 Rent Expense: 2,500 Salaries Expense: 19,000 Supplies Expense: 1,200 Services Performed: 45,000 Accrued Revenue: 900 Accounts Payable: 4,000 Cash: 14,000 Equipment: 11,000 Notes Payable: 4,600 Supplies on hand: 700 Accounts Receivable: 5,000 On December 31, total assets are equal to...
Answer: 31,600 Explanation: Accrued Revenue P 900 Cash 14,000 Equipment 11,000 Supplies on Hand 700 Accounts Receivable 5,000 Total P 31,600
Misc., Expenses: 1,000 Utilities Expense: 15,000 Transportation In: 12,000 Purchase Discounts: 19,600 Dep., Expense-Office: 10,000 Dep., Expenense-Store: 8,000 Store Supplies Expense: 6,000 Advertising Expense: 30,000 Interest Income: 21,200 Rent Expense: 50,000 Sales Returns and Allowances: 12,000 Purchases: 400,000 Inventory, beginning: 90,000 Inventory, end: 75,000 Office Supplies Expense: 5,000 Sales Discounts: 6,000 Transportation Out: 6,000 Question: How much is the cost of goods available for sale?
Answer: 482,400 Explanation: Merchandise Inventory, beg. Php. 90,000 Purchases 400,000 Purchase Discount (19,600) Net Purchases 380,400 Transportation In 12,000 Net Cost of Purchases 392,400 Goods Available for Sale Php. 482,400
Purchases of IBM compatibles: 3,280,000 Purchases of commercial software package: 900,000 Returns and Allowances: 80,000 Purchase discounts taken: 27,000 Compute for the input tax; VAT exclusive.
Answer: 488,760 Explanation: Purchases of IBM Compatibles P 393,600 [3,280,000 x 12%] Purchases of Commercial Sof. Pack. 108,000 [900,000 x 12%] Returns and Allowances (9,600) [80,000 x 12%] Purchase Discounts Taken (3,240) [27,000 x 12%] Total P 488,760
The following information is available from SAMSAN TECH COMPANY. What is the amount of cost of goods purchased? Beginning Inventory: 400,000 Freight In: 30,000 Purchase Returns and Allowances: 900,000 Ending Inventory: 500,000 Selling Expenses: 1,250,000 Sales Discounts: 250,000 The cost of goods sold is six times the selling expenses.
Answer: 7.6M Explanation: 1,250,000 (SE) x 6 = 7,500,000 COGS P 7,500,000 Merch. Inv., end 500,000 Freight In (300,000) Purchase Returns 900,000 Merh. Inv., beg (400,000) Purchases P 8,200,000 Purchases P 8,200,000 Purchase Returns (900,000) Freight In 300,000 Cost of Purchases 7,600,000
A special compensation given to the managing partner when the results of operations of the partnership are favorable -interest -bonus -salaries or; -profit
BONUS Explanation: "A partnership contract may provide for a special compensation in the form of bonus to the managing partner when the results of operations of the partnership are favorable" (Ballada, 2020; p. 13-12)
(1) In preparing a worksheet for a merch firm, all income statement column debits represent expenses. (2) Gross sales consist of total sales excluding sales on credit during the accounting period. Which sentences are true?
Both are false; Explanation: (1) Income statement column debits also include Merchandise Inventory beginning and Sales contra-accounts (see Ballada, 2020; p. 8-6) (2) Gross sales consists of both sales made on account and on cash
(1) A corporation has the capacity of continued existence regardless of death, withdrawal, insolvency or incapacity of its directors or stockholders. (2) A partnership can be created by mere agreement of the partners either orally or verbally. Which sentences are true?
Both are true. Explanation: (1) Republic Act No. 11232 (Revised Corporation Code of the Philippines) - A corporation shall have perpetual existence unless its articles of incorporation provides otherwise. (Sec. 11) (2) "A partnership may be constituted orally or in writing" (Ballada, 2020; p. 12-7)
(1) Input tax increases the amount to be paid but has no effect on the cost of the purchases. (2) An adjusting entry will be journalized at the end of the accounting period if there is a shrinkage under the perpetual inventory system. Which sentences are true/false?
Both true; Explanation: A. "Although it is included in the amount payable to the seller, it should not be recorded as an addition to the purchases account of the buyer" (Lao Ong, 2016; p. 252) B. "When an entity uses the perpetual inventory system, the ending inventory should reconcile with the actual physical count at the end of the period assuming that no theft, spoilage, or error has occurred. At that time, the account is adjusted for any inaccuracies discovered" (Ballada, 2020; p. 7-12)
What functions do general ledgers serve in the accounting process? -Reporting -Summarizing -Classifying, or; -Recording
CLASSIFYING Explanation: (Leemon, Lopez, and Araza, 2015) ii. Classifying - the grouping of similar and interrelated items into their respective classes Ledger - is a group of accounts used by the company...while the journal is chronologically arranged by date, the ledger is organized by account (Lao Ong, 2016)
The purchase of treasury stock can: -decrease the assets and decrease shareholders' equity -increase the assets increase shareholders' equity -decrease the assets and increase shareholders' equity, or; -increase the assets and decrease shareholders' equity
DECREASE THE ASSETS AND DECREASE SHAREHOLDER'S EQUITY Explanation: (Ballada, 2020; p. 15-10; see also p. 15-12) Journal Entry upon purchase of treasury stock: Treasury Stock (SE) xxx Cash (A) xxx
The type of transaction that would appear in the sales journal would be a sale of -equipment for cash -equipment in exchange for a note -merchandise for cash, or; -merchandise on account
MERCHANDISE ON ACCOUNT Explanation: A. Cash Disbursements Journal B. General Journal C. Cash Disbursements Journal Sales Journal - specifically designed to record sale of merchandise on account (Ballada, 2020); Sales of assets on account are not recorded in the sales journal but in the general journal (Lao Ong, 2016; also see p. 290)
If there is no agreement as to the distribution of profit and losses. The loss and profit should be distributed based on -equally -ratio of ending balance of the capital -ratio of original capital balances, or; -ratio of the average capital balances
RATIO OF THE ORIGINAL CAPITAL BALANCES -capital balances- Explanation: (Ballada, 2020; p. 13-4) Profits b. if there is no agreement: i. As to capitalist partners, the profits shall be divided according to their capital contributions (according to the ratio of the original capital investments or in its absence, the ratio of capital balances at the beginning of the year) ii. As to industrial partners (if any), such share as may be just and equitable under the circumstances, provided, that the industrial partner shall receive such share before the capitalist partners shall divide the profits -Loss- b. if there is no agreement as to the distribution of losses but there is an agreement as to profits, the losses shall be distributed according to profit sharing ratio c. in the absence of agreement: i. as to capitalist partners, the losses shall be divided according to their capital contributions (according to the ratio of the original capital investments or in its absence, the ratio of capital balances at the beginning of the year) ii. as to purely industrial partners (if there's any), shall not be liable for any losses
Closing entries -Are optional step in the accounting cycle -Affect only real accounts -Permit an entity to analyze routine and repetitive transactions the same way all the time. Or; -Remove the balances from the entity's temporary accounts.
REMOVE THE BALANCES FROM THE ENTITY'S TEMPORARY ACCOUNTS Explanation: A. They are not optional, temporary accounts must be closed at the end of the accounting period. This is necessary because the ending balances of the accounts are to reflect only one period's revenue and expenses B. Closing entries are made to eliminate the balances of the nominal accounts and not the real accounts C. Is the role of the special journals and subsidiary ledgers
Freight out us considered as part of the -cogs -admin expense -selling expense, or: -purchases
SELLING EXPENSE Explanation: See p. 8-8 (Ballada, 2020), transportation out/ freight out is considered part of the selling expense
A stock that has been issued by the corporation as fully paid and later reacquired but not retired -Ordinary shares -Treasury shares -Preferences shares, or; -Promotion shares
TREASURY SHARES Explanation: (Ballada, 2020; p. 15-3) A. Shares that represent the basic ownership class of the corporation B. Shares acquired by the corporation but not retired and are therefore, awaiting to be reissued at a later date C. Share that gives its owners advantages over ordinary shareholders D. Issued to promoter as compensation in promoting the incorporation of a corporation or for services rendered
A partnership intended to be formed as a limited partnership but without the word "Limited" or "Ltd." appended to its name shall be considered as a general partnership. True or False?
True; Explanation: (see Ballada, 2020; p. 12-8) "The partnership name shall bear the word...if it's a limited partnership, the word "limited" or "Ltd"." (SEC Memorandum Circular 5, Series 2008)
If the agreed capital exceeds the total contributed capital, the difference may be a positive asset revaluation.
True; Explanation: There will be times that the values agreed by the partners on the contributed asset may be higher than that of its carrying value; thus, this positive asset revaluation will result in the exceeding amount of the agreed capital as compared to his contributed capital.
Under allowance method in accounting for uncollectible accounts, Accounts receivable is only credited when it is definitely uncollectible. True or False?
True; Under allowance method in accounting for uncollectible accounts, Accounts receivable is only credited when it is definitely uncollectible
When a partner invests a non-cash assets, they should be recorded at -Values agreed upon by the partners -Carrying amount of the asset -Fair market value, or; -Residual value
VALUES AGREED UPON BY THE PARTNERS Explanation: "When a partner invests non-cash assets, they are to be recorded at values agreed upon by the partners. In the absence of any agreement, the contributions will be recognized at their fair market values at the date of transfer to the partnership" (Ballada, 2020; p. 12-11)
Golden Pavilion Company purchased a machine on July 1, 2013, for P 750,000. The machine had a useful life of 10 years with a salvage value of P 42,000. During 2016, it became apparent that the machine would become uneconomical after December 31, 2020. And that the machine would have no salvage value. WHAT IS THE CHARGE FOR DEPRECIATION IN 2016? -114,600 -291,600 -62,400 -327,000
answer: 114, 600 Explanation: Cost 750,000 Salvage Value ( 42,000) Depreciable Cost 750,000 Estimated Useful Life ÷ 10 Annual Depreciation 70,800 2013 : 35,000 (70,800 x 6/12) 2014 : 70,800 2015: 70,800 Acc. Dep. 177,000 750,000 - 177,000 = 573,000 (Machine's Carrying Value for 2016) 573,000 ÷ 5 (2016-2020) = 114,600
Bates Corporation purchased 2,000 shares of its $5.00 par value common stock for a cash price of $12.00 per share. Two months later, Bates sold the treasury stock for a cash price of $10.00 per share. No balance in Paid-In capital from treasury stock. How much would be the credited to the Treasury Stock account?
cash———————————20,000 Retained Earnings——-4,000 Treasury Stock————————24,000 Explanation: (see Ballada, 2020; p. 15-10 for further reference) Journal Entry (Reissuance of Treasury Stock Below Cost) Cash 20,000 Retained Earnings 4,000 Treasury Stock 24,000 Simply, multiply 2k by $12.00
