UNIVERSIDAD DE MANILA

College of Business & Accountancy 6.Under accrual basis, the entity reported rental
Manila City income for the current year P600,000
1st Sem SY 2021-22
Unearned rental income, Jan. 1 50,000
Final Examination
Unearned rental income, Dec. 31 75,000
in
Accrued rental income, Jan. 1 30,000
Intermediate Accounting 3
Accrued rental income, Dec. 31 40,000
What amount was received from rental in the current
Name:______________________ year?
Course:_____________________ a.585,000 b.615,000 c.625,000 d.655,000
Yr. & Sec.___________________
7.The entity provided the following data for the
Instruction: Choose the correct answer current year
Operating expenses:
Haze Company provided the following information Depreciation 1,000,000
for the current year; Insurance 700,000
  1-Jan 31-Dec Salaries 1,500,000
Cash 620,000 ?   3,200,000
Accounts Receivable 670,000 900,000    
Merchandise Inventory 860,000 780,000
Accounts Payable 530,000 480,000   Dec. 31 Jan. 1
The sales and cost of goods sold were P7,980,000 and
P5,830,000 respectively. All sales and purchases were Prepaid Insurance 200,000 150,000
on credit. Various expenses of P1,070,000 were paid
in cash. There were no other pertinent transactions. Accrued salaries payable 100,000 120,000
1. What is the amount of collections from customers?
What amount was paid for operating expenses?
a.7,980,000 b.8,600,000 c.7,750,000 d.8,210,000
a.3,270,000 b.2,270,000 c.2,130,000 d.2,230,000
2. What is the payment of accounts payable?
a.5,750,000 b.5,880,000 c.5,800,000 d.5,700,000
The entity provided the following data at year-end
3. What is the cash balance on December 31?
a.1,090,000 b.1,500,000 c.2,570,000 d.3,050,000   2016 2017

The entity experienced the following changes in Accounts Receivable 1,200,000 1,350,000
selected accounts for the current year
Accrual Sales 5,000,000 Accounts payable 1,500,000 1,850,000
Accounts Receivable:   In 2017, accounts written off amounted toP100,000.
January 1 800,000 Sales return amounted to P250,000, of which an
Dec. 31 500,000 amount of P50,000 was paid to customer.Cash receipt
Advances from customer:   from customers after P500,000 discounted totaled
P8,000,000. Purchase returns amounted to
January 1 300,000
P400,000,of which an amount of P100,000 was
Dec. 31 400,000 received from suppliers. Cash payments to trade
4.What amount was received from the customers creditors amounted to P5,000,000 after discounts of
during the year? P200,000. Under accrual, what is the amount of:
a.5,400,000 b.5,300,000 c.4,800,000 d.4,600,000 8.Gross sales
a.9,600,000 b.8,950,000 c.8,250,000 c.8,850,000
The entity provided the following data for the current 9.Net sales
years: a.8,250,000 b.8,200,000 c.8,100,000 c.5,650,000
Sales 10,000,000 10.Gross purchase
Cost of goods sold 5,300,000 a.5,850,000 b.5,950,000 c.5,750,000 d.5,650,000
Operating expenses 3,800,000 11. Net purchase
  Dec. 31 Jan. 1 a.5,250,000 b.5,200,000 c.5,650,000 d.5,450,000

Prepaid Operating expenses 1,000,000 700,000 Universal Company had the following financial
statement information:
Accounts payable 1,350,000 1,200,000 2017 2016
Revenue P1,350,000 P1,000,000
Inventory 2,500,000 2,100,000 Expenses 980,000 650,000
Net income 370,000 350,000
Accounts receivable 1,400,000 1,375,000 12/31/2017 12/31/2016
Total assets P1,570,000 P1,050,000
5.Under cash basis, what amount should be reported
Total liabilities 500,000 350,000
as purchases for the current year?
Total owners’ equity P1,070,000 P 700,000
a.5,550,000 b.5,700,000 c.5,850,000 d.5,150,000
Universal failed to record P120,000 of accrued wages
at the end of 2016. The wages were recorded and paid
in January 2017. The correct accruals were made on
December 31, 2017.
12.What is the corrected net income for 2016?
a.230,000 b.350,000 c. 470,000 d.250,000
13. What is the corrected net income for 2017?
a.490,000 b. 370,000 c.250,000 d.430,000
14. The corrected total liabilities 2016.
a.470,000 b.230,000 c.400,000 d. 500,000
15.The corrected total owners’ equity on 2017.
a.1,070,000 b. 1,190,000 c.1,010,000 d. 950,000

16.Cola Company reported a retained earnings

balance of P4,000,000 at January 1, 2017. Cola
determined that insurance premiums of P900,000
for the three-year period beginning January 1,2016,
had been paid and fully expensed in 2016. The
entity has a 30% income tax rate.What amount
should Cola report as corrected beginning retained
earnings in its 2017 statement of retained earnings?
a.3,400,000 b.4,420,000 c.4,600,000 d. 3,580,000

17.The following balances were reported by Megan

Company at December 31:
12/31/2017 12/31/2016
Inventory P 2,600,000 P 2,900,000
Accounts Payable 750,000 500,000
Megan paid suppliers P4,900,000 during the year
ended December 31, 2017.
What amount should Megan report for cost of goods
sold in 2017?
a.5,450,000 b.4,950,000 c.4,850,000 d.4,350,000

18.Victory Company’s statements for 2016 and 2017

included errors as follows:
Year Ending Inventory Depreciation
2016 P200,000 understated P50,000 understated
2017 P300,000 overstated P90,000 overstated
How much should retained earnings be retroactively
adjusted at January 1, 2011?
a.P260,000 increase c.P260,000 decrease
b. P410,000 decrease d. P210,000 decrease

19.Jupiter Company’s financial statements contained

the following errors:
2016 2017
Ending inventory 60,000 under 90,000 over
Depreciation exp. 120,000 over 75,000 over
None of the errors were detected or corrected, and that
no additional errors were made in 2011.
What amount will current assets at December 31,
2017 be overstated or understated?
a.90,000 under b. 90,000 over c.30,000 over d. 0

20.Moonlight Company had total assets of

P4,000,000and shareholders’ equity of P2,080,000
at the beginning of the year. During the year, assets
increased by P520,000 and liabilities decreased by
P820,000.What was the shareholders’ equity at the
end of the year?
P3,420,000 P3,700,000 P3,380,000 P1,340,000