Name: Antonio A. Barangan Jr.

Section: BSAIS-1A
Activity 1

Queen Company provided the following account balances on December 31, 2020:

Notes Receivable 250,000

Computer Sofware 3,250,000
Prepaid expenses 70,000
Trading Securities 280,000
Unearned rent income 40,000
Retained earnings (deficit). (1,800,000)
Share premium-preference 500,000
Premium on bonds payable 1,000,000
Preference share capital 2,000,000
Share premium-ordinary 200,000
Notes payable 300,000
SSS payable 10,000
Accounts payable 400,000
Accrued salaries 100,000
Accumulated depreciation-building 2,000,000
Accumulated depreciation-equipment 200,000
Allowance for doubtful accounts 20,000

Bonds payable 5,000,000

Dividends payable :120,000
Ordinary share capital 5,000,000
Withholding tax payable 30,000
Preference share redemption fund 350,000
Acounts receivable 400,000
Advances to officers-not currently collectible 100,000
Sinking fund 400,000
Required:
Prepare a properly classified statement of financial position on December 31,
2020.

Activity 2

Primo Company provided the following information for the purpose of presenting
the statement of financial position on December 31, 2020.
Cash 400,000
Accounts Receivable 800,000
Allowance for doubtful accounts 50,000
Inventories 1,000,000
Land 500,000
Building 5,000,000
Accumulated Depreciation-building 2,000,000
Machinery 3,000,000
Accumulated Depreciation-machinery 1,200,000

Investment in associate 1,300,000

Prepaid Expense 100,000
Notes Payable 750,000
Accounts Payable 350,000
Income tax payable 50,000
Accrued Expenses 60,000
Mortgage note payable in quarterly installments 2,000,000
Of 100,000
Estimated Liability for damages 140,000
Rtained earnings appropriated for plant expansion 1,000,000
Retained earnings appropriated for contingencies 100,000
Share capital 3,000,000
Share premium 300,000
Rtained earnings unappropriated 1,250,000
Trademark 150,000
Secret processes and formulas 200,000
Bank loan payable-due to June 30, 2022 500,000

Requed:

Prepare in good form a properly classified statement of financial position on

December 31,2020 with supporting notes and computations.

Activity 3 multiple choice

1. The major financial statements include all,except

a.Statement of financial position
b.Statement of changes in financial position
c.Statement of comprehensive income
d.Statement of changes in equity

2. The major financial statements include all,except

a.Statement of financial position
b.Income statement
c.Statement of comprehensive income
d.Statement of retained earnings

3. What is the objective of financial statements?

a.To provide information about the financial position,financial performance,and changes in
financial position of an entity that is useful to a wide range of users in making economic
decisions.
b.To present a statement of financial position and statement of comprehensive income.
c.To present relevant,reliable,comparable and understandable information to investors.
d.To present financial statements in accordance with all applicable standards.

4. Financial statements must be prepared at least

a.Annually
b.Quarterly
c.Semi annually
d.Every two years
5. When entity changed the end of reporting period longer or shorter than one year,the entity
a.Period covered by the financial statements
b.The reason for using a longer or shorter period
c.The fact that amounts presented are not entirely comparable
d.The fact that similar entities have done so.

6. An entity shall classify an asset as current under all of the following conditions,except
a.The entity expects to realize the asset or intends to sell or consume it within the entity‟s
normal operating cycle.
b.The entity holds the asset for the purpose of trading.
c.The entity expects to realize the asset within twelve months after the reporting period.
d.The asset is cash or a cash equivalent that is restricted to settle a liability for more than
twelve months after the reporting period.

7. An entity shall classify a liability as current when under all of the following conditons,except
a.The entity expects to settle the liability within the entity‟s normal operating cycle.
b.The entity holds the liability primarily for the purpose of trading.
c.The liability is due to be settled within twelve months after the reporting period.
d.The entity has an unconditional right to defer settlement of the liability for at least
twelve months after the reporting period.

8. Assets to be sold,consumed or realized as part of the normal operating cycle are

a.Current assets
b.Non current assets

c.Classified as current or non current in accordance with other criteria

d.Noncurrent investments

9. Liabilities that an entity expects to settle within the normal operating cycle are classified as
A..Non current liabilities
b.Current or noncurrent liabilities in accordance with other criteria
c.Current liabilities
d.Equity

10. The statement of financial position is useful for analyzing all of the following,except.
a.Liquidity
b.Solvency
c.Profitability
d.Financial flexibility
Activity 3

Marquez provided the following information for the current year:

Purchases 5,250,000
Prchase returns and allowances 150,000
Rental income 250,000
Selling expenses:

Freight out 175,000

Salesmen‟s commission 650,000
Depreciation-store equipment 125,000
Merchandise inventory-January 1 1,000,000
Merchandise inventory-December 31 1,500,000
Sales 7,850,000
Sales returns and allowances 140,000
Sales discounts 10,000
Administrative expenses:
Officers‟salaries 500,000
Depreciation-office equipment 300,000
Freight in 500,000
Income tax 250,000
oss on sale of equipment 50,000
Purchase discounts 100,000

Dividend revenue 150,000

Loss on sale of investment 50,000

Required:

a. Prepare an income statement for the year using the “functional”method with supporting
notes.
b. Prepare an income statement for the year using the “natural”method with supporting
notes.
Activity 4(Multiple choice)

1. Gabriel Company reported operating expenses in two categories, namely distribution and
administrative. The adjusted trial balance at year-end included the following expense and loss
accounts for current year. One-half of the rented premises is occupied by the sales department.

Accounting and legal fees 1,200,000

Advertising 1,500,000
Freight out 800,000

Interest 700,000
Loss on sale of long-term investment 300,000

Officers‟salaries 2,250,000
Rent for office space 2,200,000

Sales salaries and commissions 1,400,000

What amount should be reported as distribution costs?
a.4,800,000
b.4,000,000
c.3,700,000
d.3,600,000

2.Levis Company reported the following data for the current year:

Legal and audit fees 1,700,000

Rent for office equally shared by sales
And accounting 2,400,000
Loss on abandoned data processing equipment 350,000
Interest on inventory loan 2,100,000
Freight in 1,750,000
Freight out 1,600,000
Officers‟salaries 1,500,000

Insurance 850,000

Sales representative salaries 2,150,000

Research and development expenses 1,000,000

What amount should be classified as administrative expenses?

a.5,250,000
b.6,450,000
c.5,600,000
d.6,250,000
3.Villanueva company reported net income of P7,410,000 for the current year which included the
following amounts:
Unrealized loss on foreign currency translation (540,000)
Gain on early retirement of bonds payable 2,200,000
Adjustment of profit of profit of prior
Year for error in depreciation,net of tax effect (750,000)
Loss from fire (1,400,000)

Wat amount should be reported as adjusted net income?

a.6,500,000
b.6,610,000
c.8,160,000
d.8,750,000

4.Quirino Company provided the following information for the current year:
Increase in raw materials inventory 150,000
Decrease in goods in process inventory 200,000
Decrease in finished goods inventory 350,000
Raw materials purchased 4,300,000
Direct labor payroll 2,000,000
Factory overhead 3,000,000
Freight out 450,000
Freight in 250,000
What is the cost of goods sold for the current year?
a.9,950,000
b.9,550,000

c.9,250,000
d.9,150,000

5.S company reported the following information for the current year.
Ending goods in process 1,000,000
Depreciation on factory building 320,000
Beginning raw materials 400,000
Direct labor 1,980,000
Factory supervisor‟s salary 560,000
preciation on headquarters building 210,000

Beginning goods in process 760,000

Ending raw materials 340,000
Indirect labor 360,000
Purchases of raw materials 2,300,000
What is the cost of goods manufactured for the current year?

a.5,340,000

b.5,580,000
c.5,550,000
d.5,820,000