(maturity date), the maker of the note defaulted, and the bank charged TingLu Co. the maturity value of the note plus a ₱3,000 protest fee.
LONG ASSESSMENT
INTERMEDIATE ACCOUNTING 1
10. How much is transferred to accounts receivable due to the
dishonor and before impairment testing? __________
Name
Section
Score
Use the following information for the next three questions: Latios Co. has the
following information for the months of June and July.
June 30
Book Balance
Book Debits
Book Credits
Bank Balance
Bank Debits
Bank Credits
Notes Collected by Bank
Bank Service Charge
NSF Checks
Understatement of Recorded Cash
Collections
Deposit in Transit
Outstanding Checks
Loan Amortization of Latias Corp.
erroneously debited to Latios Co.’s
account
1.
2.
3.
?
10,200
2,250
20
880
July 31
9,300
30,700
27,000
16,800
21,300
?
3,000
100
1,400
1,900
1,200
6,000
9,750
11,250
17,850
2,400
1,800
How much is the adjusted cash receipts in July? __________
How much is the adjusted cash disbursements in July?
__________
How much is the adjusted cash balance as of July 31?
__________
Use the following information for the next two questions: Zekrom Co. has the
following information on December 31, 2023, before any year-end
adjustments.
Accounts Receivable, Jan. 1
Net Credit Sales
Collections from Customers (Including Recoveries)
Allowance for Doubtful Accounts, Jan. 1
Write-Offs
Recoveries
Percentage of Receivables
4.
5.
80,000
270,000
140,000
10,000
5,000
1,000
5%
How much is the bad debt expense? __________
How much is the recoverable historical cost of accounts
receivable? __________
Use the following information for the next three questions: On January 1,
2023, Suicune Co. sold transportation equipment with a historical cost of
₱20,000,000 and accumulated depreciation of ₱7,000,000 in exchange for
cash of ₱500,000 and a noninterest-bearing note receivable of ₱8,000,000
due in 4 equal annual installments starting on December 31, 2023, and every
December 31 thereafter. The prevailing rate of interest for this type of note is
12%.
6.
7.
8.
How much is the interest income in 2023? __________
How much is the current portion of the receivable on December
31, 2023? __________
How much is the carrying amount of the receivable on December
31, 2024? __________
On January 1, 2023, Urshifu Bank extended a 12%, ₱1,000,000 loan to
Kubfu, Inc. Principal is due on January 1, 2027, but interests are due annually
every January 1. Urshifu Bank incurred direct loan origination costs of
₱88,394 and indirect loan origination costs of ₱18,000. In addition, Urshifu
Bank charged Kubfu a 2.5-point nonrefundable loan origination fee.
9.
How much is the interest income in 2024? __________
On July 1, 2023, Ting-Lu Co. discounted an ₱800,000, 90-day, 12% note,
received from a customer on June 1, 2023, with a bank at 16% on with
recourse basis. The discounting is treated as a conditional sale. The bank
uses 365 days per year in computing for discounts. On August 30, 2023
Use the following information for the next two questions: Arceus Co.
purchased goods with an invoice price of ₱3,000 on account on December
27, 2023. The related shipping costs amounted to ₱50. The seller shipped
the goods on December 31, 2023. Arceus Co. received the goods on January
2, 2024, and settled the account on January 5, 2024.
11. How much is the capitalizable cost of the inventory purchased if
the terms of the shipment are FOB shipping point, freight prepaid?
__________
12. How much is the net cash payment to the supplier if the terms of
the shipment are FOB destination, freight collect? __________
Magearna Co. provided you with the following information to determine the
amount of its inventory as of December 31, 2023:
Goods located at the warehouse (physical count)
Goods located at the sales department (at cost)
Goods in transit purchased FOB Destination
Goods in transit purchased FOB Shipping Point
Freight incurred under “freight prepaid” for the
goods purchased under FOB Shipping Point
Goods held on consignment from XYZ, Inc.
3,400,000
15,800,000
2,400,000
1,600,000
80,000
1,800,000
13. How much is the total inventory on December 31, 2023?
__________
Landorus Co. acquired a tract of land for ₱2,000,000. The land was
developed and subdivided into residential lots at an additional cost of
₱200,000. Although the subdivided lots are relatively equal in size, they were
offered at different sales prices due to differences in terrain and locations.
Information on the subdivided lots is shown below:
Lot Group
A
B
C
No. of Lots
4
10
15
Price per Lot
480,000
240,000
192,000
During the year, 2 lots from the A group, 3 lots from the B group, and 12 lots
from the C group were sold.
14. How much gross income is recognized during the year?
__________
On October 1, 2023, the warehouse of ABC Co. and all inventories contained
therein were damaged by flood. Off-site backup of data base shows the
following information:
Inventory, Jan. 1
Accounts Payable, Jan. 1
Accounts Payable, Sept. 30
Payments to Suppliers
Freight-In
Purchase Returns
Sales from Jan. to Sept.
Sales Returns
Sales Discounts
Gross Profit Rate Based on Sales
10,000
3,000
2,000
50,000
500
500
80,000
5,000
2,000
30%
Goods in transit as of October 1, 20x1 amounted to ₱1,000, cost of goods
out on consignment is ₱1,200, and materials damaged by flood can be sold
at a salvage value of ₱1,800.
15. How much is the inventory loss due to the flood? __________
THE END
“The best accountants are not just number crunchers; they’re financial
storytellers.” – Jessica Turner