University of Notre Dame ACCNT 2333 QUIZ-8-FINAL-QUESTIONS-VERIFIED BY EXPERTS AS ACOMPLETE GUIDE FOR EXAM PREPARATION

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NATIONAL UNIVERSITY SCHOOL YEAR 2016-2017 FIRST SEMESTER QUIZ 8 IN FINANCIAL ACCOUNTING 1 1. A physical inventory taken on December 31, 2012 resulted in an ending inventory of P1,440,000. Kim Comp... any suspects some inventory may have been taken by employees. To estimate the cost of missing inventory, the following were gathered: Inventory, Dec. 31, 2011 P1,280,000 Purchases during 2012 5,640,000 Cash sales during 2012 1,400,000 Shipment received on December 26, 2012, included in physical inventory, but not recorded as purchases 40,000 Deposits made with suppliers, entered as purchases. Goods were not received in 2012 80,000 Collections on accounts receivable, 2012 7,200,000 Accounts receivable, January 1, 2012 1,000,000 Accounts receivable, Dec. 31, 2012 1,200,000 Gross profit percentage on sales 40% At December 31, 2012 what is the estimated cost of missing inventory? a. P200,000 b. P240,000 c. P160,000 d. P320,000 2. Martha Company sold a tract of land to My Dear Co. on July 1, 2011, for P8,000,000 under an installment sale contract. My Dear Co. signed a 4-year 11% note for P5,600,000 on July 1, 2011, in addition to the down payment of P2,400,000. The equal annual payments of principal and interest on the note will be P1,805,000 payable on July 1, 2012, 2013, 2014,and 2015. The land had an established cash price of P8,000,000, and its cost to the company was P6,000,000. The collection of the installments on this note is reasonably assured. The current portion of the installment note receivable on December 31, 2012 is a. P1,805,000 b. P1,319,790 c. P1,400,000 d. P1,189,000 3. The cash account in the correct asset section of the balance sheet of Revolution Company showed a balance of P55,500. It was found to include the following items: Petty cash fund (P100 is in the form of paid vouchers) P 500 Checking account balance in Philippine Trust Company, per bank statement (a P2,500 check is still outstanding) 25,500 Undeposited receipts, including a post-dated check for P500 12,000 Currencies and coins awaiting deposit 5,500 Bond sinking fund - cash 10,000 Check drawn by management, returned by bank marked NSF 2,000 The correct cash balance for Revolution Company's balance sheet is a. P43,000 b. P42,400 c. P42,900 d. P40,400 [Show More]

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