Intacc - Prelim
Intacc - Prelim
Intacc - Prelim
Accounts payable, net of supplier’s accounts with debit balances of P1,000,000 7,000,000
Notes payable 4,000,000
Bond payable due June 30, 2018 3,000,000
Accrued expenses 2,000,000
1. What amount should be reported as total current assets on December 31, 2017?
a. 19,040,000
b. 20,040,000
c. 20,050,000
d. 24,040,000
2. What amount should be reported as total current liabilities on December 31, 2017?
a. 19,000,000
b. 16,000,000
c. 15,500,000
d. 15,000,000
Problem 2
Trey company provided the following trial balance at year-end which had been adjusted except for
income tax expense:
Cash 600,000
Accounts receivable, net of allowance of P100,000 1,650,000
Prepaid taxes 300,000
Accounts payable 140,000
Share capital 500,000
Share premium 680,000
Retained earnings 630,000
Foreign currency translation adjustment 400,000
Revenue 3,600,000
Expenses 2,600,000
5,550,000
During the current year, estimated tax payments of P300,000 were charged to prepaid taxes. The
entity has not yet recorded income tax expense.
There were no differences between financial and taxable income. The tax rate is 30%.
Included in accounts receivable is P500,000 due from a customer. Special terms granted to this
customer require payment in equal semiannual installment of P125,000 every April 1 and October 1.
a. 2,000,000
b. 2,200,000
c. 2,300,000
d. 2,250,000
a. 1,680,000
b. 1,200,000
c. 1,330,000
d. 1,630,000
Problem 3
Cara Company provided the following information for the current year:
January 1 December 31
No dividends were declared during the year and there were no other changes in shareholder’s equity.
a. 900,000
b. 300,000
c. 600,000
d. 450,000
a. 2,800,000
b. 2,400,000
c. 2,500,000
d. 3,500,000
a. 2,400,000
b. 1,300,000
c. 1,800,000
d. 2,100,000
Problem 4
Cash 2,000,000
Accounts receivable 3,000,000
Inventory 1,900,000
Prepaid expenses 100,000
Accounts payable, net of debit balance of P50,000 2,450,000
Interest payable 150,000
Income tax payable 300,000
Money claim of the union pending final decision 500,000
Mortgage payable, due in four annual installments 2,000,000
Analysis of cash
a. 6,050,000
b. 6,350,000
c. 5,550,000
d. 6,100,000
a. 3,450,000
b. 3,400,000
c. 3,950,000
d. 3,700,000
Problem 5
Gibson Company reported that remuneration and other payments made to the entity’s chief executive
officer during the current year were:
a. 3,500,000
b. 4,700,000
c. 3,000,000
d. 2,500,000
Problem 6
Brock Company reported operating expenses in two categories, namely distribution and general and
administrative.
The adjusted trial balance at year-end included the following expense and loss accounts for current
year:
a. 4,800,000
b. 4,000,000
c. 3,700,000
d. 3,600,000
Problem 7
Vigor Company provided the following information for the current year:
a. 150,000
b. 200,000
c. 300,000
d. 400,000
Problem 8
Bicolano Company provided the following data for the current year:
a. 6,700,000
b. 6,200,000
c. 7,200,000
d. 9,000,000
a. 7,750,000
b. 8,500,000
c. 7,000,000
d. 9,125,000
Problem 9
Bangladesh Company provided the following information for the current year:
Sales 50,000,000
Cost of goods sold 30,000,000
Distribution costs 5,000,000
General and administrative expenses 4,000,000
Interest expense 2,000,000
Gain on early extinguishment of long-term debt 500,000
Correction of inventory error, net of income tax – credit 1,000,000
Investment income – equity method 3,000,000
Gain on expropriation 2,000,000
Income tax expense 5,000,000
Dividends declared 2,500,000
a. 9,000,000
b. 8,000,000
c. 9,500,000
d. 7,000,000
Problem 10
Tactful Company reported operating expenses other than interest expense for the year at 40% of cost
of goods sold but only 20% of sales. Interest expense is 5% of sales.
The amount of purchases is 120% of cost of goods sold. Ending inventory is twice as much as the
beginning inventory.
The net income for the year is P560,000. The income tax rate is 30%.
a. 2,080,000
b. 1,485,000
c. 2,285,000
d. 3,200,000
a. 1,600,000
b. 1,920,000
c. 1,280,000
d. 2,240,000
Problem 11
Mercury Company showed cost of goods sold of P4,320,000 in the statement of comprehensive
income after the first year of operations.
a. 1,800,000
b. 2,400,000
c. 3,000,000
d. 5,400,000
Problem 12
Argentina Company incurred the following costs and expenses during the current year:
Beginning Ending
a. 3,850,000
b. 4,000,000
c. 4,150,000
d. 4,750,000
a. 7,450,000
b. 7,200,000
c. 7,100,000
d. 7,300,000
a. 7,300,000
b. 6,900,000
c. 7,600,000
d. 8,300,000
Problem 13
Sheraton Company reported the following information for the current year.
a. 5,340,000
b. 5,580,000
c. 5,550,000
d. 5,820,000
Problem 14
Kay Company provided the following information for the current year:
a. 9,950,000
b. 9,550,000
c. 9,250,000
d. 9,150,000
Problem 15
Cash 300,000
Accounts receivable 1,200,000
Inventory, including inventory expected in the ordinary
course of operations to be sold beyond 12 months amounting to P700,000 1,000,000
Prepaid expenses 100,000
Financial asset held for trading 200,000
Equity investment at fair value through other comprehensive income 800,000
Deferred tax asset 150,000
a. 2,800,000
b. 2,550,000
c. 3,600,000
d. 2,100,000