Midterm Q1 – Chapter 6
Question 1
Garci Company acquired an equipment costing P39,900 on Jan. 01, 2019 having an
estimated life of four (4) years and with a residual value of P3,900. Compute the
accumulated depreciation to be reported on the Dec. 31, 2020 Statement of Financial
Position?
a.
b.
c.
d.
e.
18,000
Correct answer is not given
9,000
12,000
6,000
Question 2
Amihan issued a P15,000 note on December 15, 2019 which will mature on January 29,
2020. If the maturity value of the note is P15,375, how much is the interest rate charge
on the note?
a.
b.
c.
d.
e.
18%
17%
20%
Correct answer is not given
19%
Question 3
A furniture costing P32,000 which is 35% depreciated was taken by Mr. Mabuhay from
his business. At how much will Mabuhay, Drawings account be debited?
a.
b.
c.
d.
e.
43,200
11,200
20,800
32,000
Correct answer is not given
Question 4
A furniture costing P32,000 which is 35% depreciated was sold for P18,000, the
business should recognize a _______.
a. Correct answer is not given
b.
c.
d.
e.
loss of P2,800
gain of P2,800
loss of P14,000
A gain of P6,800
Question 5
A 75-day note amounting to P150,000 with 18% interest per annum was issued on
November 2, 2019 to Gloria Lacson. When will the note mature and how much would be
the maturity value?
a.
b.
c.
d.
e.
Correct answer is not given
January 17, 2020 and the maturity value is P155,625
January 16, 2020 and the maturity value is P155,625
January 16, 2020 and the maturity value is P154,425
January 15, 2020 and the maturity value is P150,000
Question 6
Land was acquired at a cost of P150,000 in 2009. When the owner invested this in his
business, its fair market value is P300,000 . Attached to the property is an outstanding
mortgage payable of P20,000. If the mortgage is assumed by the business, the land will
be debited for ___.
a.
b.
c.
d.
e.
P150,000
P300,000
Correct answer is not given
P130,000
P280,000
Question 7
Land was acquired at a cost of P150,000 in 2009. Its current market value is P300,000,
when the owner invested this in a real estate business. Attached to the property is an
outstanding mortgage payable of P20,000. If the mortgage is assumed by the business,
the business owner’s capital should be credited for:
a.
b.
c.
d.
e.
Correct answer is not given
P300,000
P280,000
P130,000
P150,000
Question 8
An equipment was purchased on January 1, 2019 for P600,000 less a 10% trade
discount. The company paid freight of P5,000 and insurance of P10,000 to transport the
equipment to its place. It also paid P16,000 for the yearly insurance of the equipment.
Yearly depreciation is P50,000 a year. The total cost of the equipment is:
a.
b.
c.
d.
e.
631,000
Correct answer is not given
555,000
615,000
600,000
Question 9
The following cash transactions of Elena Machine shop for the month of March:



Payments of various expenses: P60,500 cash; P97,400 in checks
Deposits to the bank: P122,300 in cash and P67,428 in checks
Collections from customers: P10,272 cash and P70,500 checks
What is the balance of the Cash in Bank account?
a.
b.
c.
d.
e.
92,328
162,828
40,528
Correct answer is not given
94,328
Question 10
The following cash transactions of Elena Machine shop for the month of March:



Payments of various expenses: P60,500 cash; P97,400 in checks
Deposits to the bank: P122,300 in cash and P67,428 in checks
Collections from customers: P10,272 cash and P70,500 checks
What is the balance of the Cash on hand account?
a.
b.
c.
d.
Correct answer is not given
72,072
1,572
20,272
Question 11
Cobyd Veerus bought the printing company owned by Perez. She paid for the following
net assets:
Net Assets
Cash
Per Books
Agreement on each amount
P 25,000
Not included in the purchase
Accounts Receivable
20,000
Less 10% uncollectible accounts
Furniture and Fixtures
50,000
Fair market value is P45,000
Printing Equipment
2,500,000
Fair market value is 85% of cost
Notes Payable to PNB
1,000,000
To be assumed by Echanis
Total assets taken over amounted to:
a.
b.
c.
d.
e.
Correct answer is not given
1,570,000
1,188,000
1,218,000
1,595,000
Question 12
If Juan receives a semi- monthly salary of P11,000 and his SS, Phil Health and Pag-ibig
contributions are P800, P330 and P100 respectively. How much will be the take home
pay of Juan if withholding tax and the contributions mentioned are deducted per
payday?
a.
b.
c.
d.
e.
6.40
625
0
1,214.75
Correct answer is not given
Question 13
Maria, manager of the Best Bakery Shop, is earning a weekly salary of P4,515. How
much would be her SSS contribution and how much will be her employer SSS
expense?
a.
b.
c.
d.
e.
800 and 1,600 respectively
Correct answer is not given
360 and 720 respectively
760 and 1,520
720 and 1,440 respectively
Question 14
Maria, manager of the Best Bakery Shop, is earning a weekly salary of P4,515. How
much would be her Pag-IBIG contribution and how much will be her employer Pag-IBIG
premium expense?
a.
b.
c.
d.
e.
50 and 50 respectively
100 & 100 respectively
100 and 50 respectively
50 and 100 respectively
Correct answer is not given
Question 15
What values will you compare in determining the gain on sale or loss on sale of the
asset? (you may check 2 values on the choices given)
a.
b.
c.
d.
e.
f.
Fair market value
Book value
Cost
Scrap value
Residual value
Proceeds from the sale
Question 16
What will be the journal entry for this transaction:
- The cash receipts which are on hand this morning consisting of P100,000 cash and
P50,000 checks were deposited in the bank.
a.
b.
c.
d.
e.
f.
g.
CR Cash in bank P100,000
No entry
DR Cash in bank P50,000
CR Cash on hand P150,000
DR Cash in Bank P150,000
DR Cash on hand P100,000
CR Cash on hand P50,000
Question 17
A promissory note was issued to Mayaman Bank of Manila on Sept 29, 2020 with a face
value of P15,000 and an interest of 6% per annum. The debtor promised to pay it on
April 17, 2021. If this is a discounted note, what will be your entry in the books of the
debtor on the date of issue?
a.
b.
c.
d.
e.
f.
g.
CR NOTES PAYABLE, P15,000
CR INTEREST INCOME P500
DR CASH P15,000
CR NOTES PAYABLE P15,500
CORRECT ENTRY IS NOT GIVEN AMONG THE CHOICES
DR CASH P14,500
DR INTEREST EXPENSE P500
Question 18
Compute the term of the note using the following data:
Date of issue- Jan 5, 2019
Maturity date - April 5, 2019
Face value of the note - P6,000
Interest rate- 12%
a.
b.
c.
d.
e.
85
91
65
Correct answer is not given
90
Question 19
If Pan Domic receives a monthly salary of P65,000 and his SS, and Pag-ibig
contributions are P800, and P100 respectively. How much is his Phil health
Contributions? (Use the current rate)
a.
b.
c.
d.
e.
975
900
Correct answer is not given
1,950
1.800
Question 20
An equipment was purchased on January 1, 2019 for P600,000 less a 10% trade
discount. The company paid freight of P5,000 and insurance of P10,000 to transport the
equipment to its place. It also paid P16,000 for the yearly insurance of the equipment.
Compute the yearly depreciation if the equipment has an estimated life of 5 years and a
scrap value of P5,000.
a.
b.
c.
d.
e.
113,200
112,000
110,000
55,000
Correct answer is not given