Questions 1 through 3 are based on the following:Sophia and Anna are partners operating a chain of retail stores. The partnership agreement provides for the following: Annual salaries to Sophia of P40,000 and P30,000 to Anna. 12% interest on average capital balances. Bonus to Sophia of 20% of net income before salaries and bonus but after interest on capital. Residual income in the ratio 25% to Sophia and 75% to Anna.The Income Summary account for year 2011 shows a credit balance of P244,000 before any allocations.Average capital balances for Sophia and Anna are P100,000 and P150,000, respectively.1. How much must be the share of Sophia on the partnership net income?A. P120,000B. P123,900C. P124,600D. P119,4002. Assuming that the bonus to Sophia of 20% of net income is after allowance for interest, salaries and bonus, how much must be the share of Sophia on the partnership net income?A. P106,000B. P138,000C. P109,600D. 134,4003. Assume that the Income summary for year 2011 shows a debit balance of P40,000 before any allocations. The partnership agreement is silent about the earnings of salaries, how much must be the share of Anna on the partnership loss?A. P17,000B. P57,000C. P10,000D. P30,0004. Samuels and Bryan are partners operating an automobile repair shop. For year x4, the Income Summary account has a debit balance of P40,000. Samuels and Bryan withdrew their salary allowances of P40,000 and P60,000, respectively, and profits and losses are shared 6:4.The partnership agreement specifies that salaries are allowed only to the extent earned. How much must be thee share of Samuels?A. P24,000B. P16,000C. P44,000D. P4,000Questions 5 through 9 are based on the following:Red, White, and Blue are partners with a profit and loss ratio of 2:4:4 and credit capital balances of P60,000, P80,000, and P60,000 respectively. Green is to be admitted into the partnership with an investment of P75,000 for a 25 percent interest in the capital and 30 percent interest in the profits and losses of the firm.5. Assuming goodwill is to be recorded in the books, how much capital must be credited to Green?A. P68,750B. P75,000C. P85,715D. P82,5006. Assuming goodwill is not to be recorded in the books, how much capital must be credited to Green?A. P68,750B. P75,000C. P85,715D. P82,5007. Which method is advantageous to Green and how much is the advantage?A. Bonus method, P536.25 advantageC. Bonus method, P1,250 advantage.B. Goodwill method, P536.25 advantageD. Goodwill method, P1,250 advantage.8. Assume that Green is to be admitted into the partnership by purchasing his interest from the partners for P75,000 for a 25 percent interest in the capital 30 percent interest in the profits and losses of the firm. The implied goodwill as a result of the interest purchased is to be recorded prior to Greens admission. How much capital must credited to Green?A. P50,000B. P75,000C. P60,000D. P82,500

9. Assume that Green is to be admitted into the partnership by purchasing his interest from the partners for P75,000 for a 25 percent interest in the capital 30 percent interest in the profits and losses of the firm. How much capital must credited to Green?A. P50,000B. P75,000C. P60,000D. P68,75010. A partnership has the following capital balances:Lea, CapitalP60,000Marlyn, Capital 30,000Sherilyn, Capital 90,000Profits and losses are split as follows: Lea (20%), Marlyn (30%), and Sherily (50%). Sherilyn wants to leave the partnership and is paid P100,000 from the business based on provisions in Articles of Partnership. If the partnership uses the bonus method, what is the balance of Marilyns Capital account after Sherilyn withdraws?A. P24,000B. P27,000C. P33,000D. P36,00011. As of December 31, 2011, the Sexy partnership has the following capital balances:Amy, CapitalP130,000Rosel, Capital 110,000Chari, Capital 80,000Shee, Capital 70,000Profits and losses are split on a 3:3:2:2 basis, respectively. Chari decides to leave the partnership and is paid P90,000 from the business based on the original contractual agreement. If the goodwill method is to be applied, what is the balance of Amys Capital account after Chari withdraws?A. P133,000B. P137,500C. P140,000D. P145,000Question 12 through 14 are based on the following:Edgar, Fiel, and Garry are partners with a profit and loss ratio of 2:3:5. The partnership are retiring and plan to liquidate the partnership. On January 1, 2012, the trial balance of the partnership shows the following:

Cash 40,000LiabilitiesP160,000Other Assets 700,000Edagr, loan 60,000Edgar, Capital 20,000Fiel, Capital 100,000Garry, Capital 440,000---------------------------P760,000P760,00012. In preparing an advance cash distribution plan, how much Garry will receive under priority 2?A. P273,333B. P40,000C. P66,667D. P16,66713. If P440,000 cash is available for distribution, how much Garry receives?A. P277,500B. P370,000C. P2,500D. P58,00014. After distributing P440,000, who will get the next P120,000?A. Garry, P120,000B. Fiel, P45,000; Garry, P75,000C. Edgar, P24,000; Fiel, P36,000; Garr, P60,000D. Edgar, P4,000; Fiel, P43,500; Garry, P72,500Questions 15 and 16 are based on the following:X, Y, and Z are partners sharing profits in the ratio of 4, 3, and 2, respectively. The partnership and two of the partners are currently unable to pay their creditors. The firms balance sheet and personal status of the partners are as follows:CashP 2,000Accounts and bills payableP148,000Other Assets 242,000X, Capital 40,000Y, Capital 24,000Z, Capital 32,000-------------------------P244,000P244,000Personal Status of Partners(Excluding Partnership Interests)Cash and Cash ValuePartnerof Personal AssetsLiabilitiesXP124,000P80,000Y 37,800 47,600Z 16,000 20,000

15. Assuming that the other assets are sold for P134,000, how much of the Zs capital appear to be recoverable?A. P8,000B. P4,000C. P2,000D. none16. Determine the minimum amount that must be realized from the sale of the partnership assets other than cash so that the personal creditors of Y will receive full settlement of their claims.A. P53,400B. P199,400C. P51,400D. P201,40017. The following accounts are presently being reported by the Fred, Jayson, and Lawrence partnership:CashP300,000Liabilities 220,000Jayson, loan 100.000Fred, Captal (40%) 160,000Jayson, Capital (20%)( 60,000)Lawrence, capital (40%)( 120,000)Lawrence is personally insolvent and can contribute only an additional P30,000 to the partnership. Fred is also insolvent and has no available funds. How much Jayson can still recover?

A. P100,000B. P10,000C. P40,000D. P0

Questions 18 and 19 are based on the following:Albert, Ralph, and Christopher operate a local accounting firm as a partnership. After working together for several years, they have decided to liquidate the partnerships property. The partners have presented the following balance sheet:CashP 200,000LiabilitiesP 400,000Albert, loan 80,000Ralph, loan 100,000Noncash assets 1,620,000Albert, capital (50%) 900,000Ralph, capital (40%) 300,000Christopher, capital (10%) 200,000-----------------------------TotalP1,900,000TotalP1,900,000The noncash assets are sold for P800,000, with P210,000 of his amount being used to pay liquidation expenses. All three of these partners are personally insolvent.

18. How much of the cash must Albert receive?A. P140,000B. P300,000C. P295,000D. P900,00019. Assuming that the noncash assets are sold for P800,000, with P60,000 of this amount being used to pay liquidation expenses. All three of these partners personally insolvent and the profits and losses are split 2:4:4 to Albert, Ralph, and Christopher, respectively. How much must Ralph receive?A. P48,000B P540,000C. P100,000D. P020. Following the liquidation of all noncash assets, the partnership of Aaron, Aries, Tommy, and Cornelio has the following account balances:LiabilitiesP280,000Aaron, loan 50,000Aaron, capital (20%)( 210,000)Aries, capital (10%)( 300,000)Tommy, capital (30%) 30,000Cornelio, capital (40%) 150,000

Aaron is personally insolvent. How much Cornelio can still recover?A. P70,000B. P150,000C. P40,000D. P0

Questions 21 through 24 are based on the following:The partnership of Mamerto, Michael, Morga, and Montano was formed several years ago as a local accounting firm. Several of the partners have recently undergone personal financial problems and decided to terminate operations and liquidate the business the following balance sheet is drawn up as a guideline for this process:

CashP 150,000LiabilitiesP 740,000Accounts Receivable 820,000Morgan, loan 350,000Inventory 1,010,000Mamerto, capital (30%) 1,200,000Land 850,000Michael, capital (10%) 880,000Building and equipment, net 1,680,000Morga, capital (20%) 740,000Montano, capital (40%) 600,000-------------------------------TotalP4,510,000TotalP4,510,000

At the time the liquidation commences, expenses of P160,000 are anticipated as being necessary to dispose of all property.

Part A21. How much must be the total selling price of other assets of Mamerto to receive P750,000?A. P2,270,000B. P2,576,000C. P2,860,000D. P3,020,000Part BThe following transactions transpire during the liquidation of the Mamerto, Michael, Morga, and Monatno partnership: Of the total accounts receivable, 80 percent are collected with the rest judged as uncollectible. He land, building and equipment are sold for P1,500,000. Safe capital distributions are made. Montano becomes personally insolvent. No further contribution will be forthcoming from this partner. All liabilities are paid. All inventory is sold for P710,000 Liquidation expenses of P110,000 are paid. Safe capital distributions are again maid.22. How much Michael received from the first safe payment distribution?A. P612,600B. P480,000C. P543,600D. P586,00023. How much Mamerto received from the second safe payment distribution?A. P355,000B. P432,000C. P300,000D. P380,00024. How much of the total cash distributed Morga received?A. P755,300B. P790,000C. P290,000D. P555,30025. Aries, Ryan, Dante and Joffrey re partners who share profits and losses on a 4:3:2:1 basis, respectively. They are presently beginning to liquidate the business. He the start of this process, capital balances are as follows:Aries, capitalP60,000Ryan, capital 27,000Dante, capital 43,000Joffrey, capital 20,000Which of the following statement is true?A. The first available P2,000 will go to Joffrey.B. Aries, will be the last partners to receive any available cash.C. The first available P3,000 will go to Dante.D. Aries will collect a portion of any available cash prior to Joffrey receiving money.

26. The partnership of Eric, Jayson and William has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances:CashP 48,000LiabilitiesP 35,000Noncash Assets 177,000Eric capital (60%) 101,000Jayson, Capital (20%) 28,000William, capital (20%) 61,000----------------------------TotalP225,000TotalP225,000

The following transactions occur in liquidating this business: Safe capital balances are immediately distributed to the partners. Liquidation expenses of P9,000 are estimated as a basis for this computation. Noncash assets with a book value of P80,000 are sold for P48,000. All liabilities are paid Safe capital balances are again distributed Remaining noncash assets are sold for P44,000. Liquidation expenses of P7,000 are paid. Remaining cash is distributed to the partners and the financial records of the business permanently closed.How much did Eric recover from this business liquidation?A. P45,800B. P40,400C. P50,000D. P41,60027. Troy Corporations home office ships merchandise to its Visayan branch at a billing price of 120% of cost. During 2011, the home office makes the following entry.Visayan BranchP60,000Shipments to Visayan branchP60,000

At year-end 2011, P12,000 of this merchandise remains to the Visayan branch inventory.The entry necessary on Troys home office books at year-end 2011 to adjust the branch inventory and branch profit to a cost basis must be:A. Shipments to Visayan branch60,000Visayan branch60,000B. Shipments to Visayan branch10,000Visayan branch10,000C. Shipments to Visayan branch10,000Unrealized profit in branch inventory10,000D. Shipments to Visayan branch10,000Unrealized profit in branch inventory 2,000Branch Profit 8,000

28.On December 1,W Company opened a branch in San Fernando, Pampanga. The following information appear on the books of the home office and branch:

Home OfficeBranch Shipments from home office, net of P7500 returned to home officeP412,500 Merchandise inventory, December 31, of whichP20000 came from outsiders185,000 Branch loss from own operators P26,000The home office followed the practice of billing the branch at 20% above merchandise cost. The correct result of branch operations must be:A. Net loss of 26000C.net income of P41,250B. Net income of P15,250D.net income of P35,875

Questions 29 and 30 are based on the following: The following appears on the books of both home office and branch:Home officeBranchSalesP600,000Shipments from home office 350,000Purchases 30,000Operating expenses 180,000Branch profit P156,000The branch inventories consisted of:Dec.1 2011Dec.31,2011Merchandise from home officeP70,000P 84,000Local purchases 10,000 16,000Total 80,000 100,00029. How much is the total realized mark up on branch inventory?A. P156,000B. P60,000C. P96,000D. P116,00030.The unrealized profit in branch inventory account balance that must appear on the books of the home office on December 31 2011 must be:A. P24,000B. P40,000C. P33,600D. P20,000

31. On January 1, 2011, Renan Company established a branch in a nearby city. At the close of the fiscal year ended December 31, 2011, the investment in branch account on the books of the home office had a balance of P66,000. The branch books reflected another amount thus the difference in the reciprocal accounts is due to the following data: Cash of P10,000 forwarded to the home office by the branch is in transit and has not been recorded on the home office books. Merchandise costing the home office P8,000 was transferred to the branch at a billing price of P9,000. The merchandise is in transit and has not been recorded on the branch books. Notification sent by the home office to the branch, informing the branch of P5,000 of operating expenses that the home office paid on behalf of the branch, has not been received by the branch and thus has not been recorded by the branch. Cash of 2000 received by the branch from the home office was erroneously recorded by the branch as 20000. The branch purchased for cash 15000 of equipment for its use; fixed asset accounts of the branch are maintained the home office. Notification sent to the home office by the branch, informing the home office of the branchs action has not been received by the home office and thus has not been recorded by the home office.The unadjusted Balance of home office account on branchs book must be:

A. P41000B. P45000C. P62000D. P87000

32. Edwards company opened a Guagua branch on January 2011,Edwards recorded merchandise transfer to the branch and merchandise returns from the branch with the following entries:Branch current156,000Sales156,000Sales return 3,900Branch current 3,900Transfer to and the branch were recorded by Edwards at 130 percent of Edwards cost.The Guagua branch reported to the home office a net loss P12,000 for 2011 . In addition, the branch reported a closing inventory of P65,000, all of which was acquired from the home office.As a result of the above information:A. The combined net income will be over stated by P39,000B. The correct result of the operation of the branch will be a net income of P8,100C. The balanced of the unrealized profit on branch inventory account on the home office books must be P19,500.D. The correcting entry will reduce branch current account by P152,100.33. The following data summarizes in part the results of operations for 2011 of Bert company.Of the total cost of goods manufactured for 2011, 38% was for materials used, 30% for direct labor, and 32% for manufacturing overhead.During 2011, the company paid for 90% of the materials purchased, leaving P293,000 of unpaid invoices for materials at year end. The Company commenced 2011 operations with a material inventory of P421,000. All materials were purchased f.o.b companys plant. The company disbursed 2101500 direct labor during 2011 .as Dec. 31, 2011, accrued liability for direct labor amounted of P144,000 which was twice as much as last years accrual.The inventory finished goods on December 31, 2011, was 10% of the cost of the unit finished during the year, and goods in process on that date were one-half the finished goods inventory. This years finished goods inventory was 150% of last years. There are no goods process last year.

The manufacturing overhead, expect for depreciation of factory buildings and equipment, is detailed below:

Indirect laborP 672,000Heat, light, and power 226,200Maintenance and repairs 488,300Insurance-factory 18,100Property Taxes 64,400Factory payroll taxes 97,000Miscellaneous factory costs 276,400P1,842,400How much is the cost of sales during 2011?A. P7,245,000B. P6,900,000C. P6,670,000D. P5,757,500

Questions 34 and 35 are based on the following:The controller for Blessa Photographic Supply Company has established the following activity cost pools and cost drivers.

BudgetedBudgeted

OverheadLevel for Cost

Activity Cost PoolCostCost DriverDriverPool Rate

Machine SetupsP200,000Number of setups100P2,000/setup

Material Handling100,000Weight of Raw materials50,000 poundsP2/pound

Hazardous waste control50,000Weight of Hazardous10,000 poundsP5/pound

chemical used

Quality Control75,000Number of Inspections1,000P75/inspection

Other overhead costs 200,000Machine hours20,000P10/machine hr.

TotalP625,000

An order for 2,000 boxes of film development chemicals has the following production requirements:Machine setups4 setupsRaw materials10,000 poundsHazardous materials2,000 poundsInspections10 inspectionsMachine Hours500 machine hours 34. Under the activity based cost system, how much is the overhead cost per box of chemicals?a. P21.875B. P43.75C. P15.625D. P7.812535. Using a single predetermined overhead rate based on machine hours, compute the rate per box of chemicals.a. P21.875B. P43.75C. P15.625D. P7.812536. Mac Commercial, manufacturer of washer uses JIT production system and backflush costing. The company has no beginning raw material and no beginning or ending work in process.The cost per unit:Direct materials P52Conversion costs P30Data in manufacturing:Raw materials the company purchasesP21,200,000Conversion cost incurred 12,300,000Number of units manufactured 400,000Number of finished goods sold 384,000Assume:1) no material price variance;2) one trigger point completion of finished goods;3) only one inventory Finished Goods Account.

What is the summary journal entry for January?A. Finished Goods Control32,800,000Inventory: Raw and In-Process20,800,000Conversion Costs Allocated12,000,000B. Cost of Sales31,488,000Inventory Control19,968,000Conversion Costs Allocated11,520,000C. Finished Goods Control32,800,000Accounts Payable20,800,000Conversion Costs Allocated12,000,000D. Cost of Sales31,488,000Finished Goods Control 1,312,000Inventory: Raw and In-Process20,800,000Conversion Costs Allocated12,000,00037. Evelyn Corp. manufacturers rafts for use in swimming pools. The standard cost for materials and labor is P892 per raft. This includes 8 kilograms of direct material at a standard cost of P50 per kilogram, and 6 hours of direct labor at P82 per hour. The following data pertain to November.a. Work in process inventory on November 1: noneb. Work in process inventory on November 30: 800 units (75 percent complete as to labor; material is issued at the beginning of processing).c. Units completed: 5,600 units.d. Purchase of materials;50,000 kilograms for P2,492,500.e. Total actual labor costs: P3,007,600.f. Actual hours of labor: 36,000 hours.g. Direct-material quantity variance: P15,000 unfavorable.The entry to record direct labor cost charged to production must be:A. Work in process inventory3,007,600Payroll3,007,600B. Work in process inventory2,755,200 Labor Cost Variance 252,400Payroll3,007,600C. Work in process inventory3,050,400 Labor efficiency variance 13,100Payroll3,007,600D. Work in process inventory3,050,400 Labor rate variance 14,600Labor efficiency variance 57,400Payroll3,007,600Questions 38 and 39 are based on the following:Arlene Chemical Company manufactures two industrial chemical products in a joint process. In May, 10,000 gallons of input costing P60,000 were processed at a cost of P150,000. The joint process resulted in 8,000 pounds of Resoline and P2,000 pounds of Krypto. Resoline sells at P25 per pound and Krypto sells for P50 per pound. Management generally processes each of these chemicals further in seperable processes to produce more refined chemical products. Resoline is processed separately at a cost of P5 per pound. The resulting product, Reoslite, sells for P35 per pound. Krypto is processed separately at a cost pf P15 per pound. The resulting product, Kryptite, sells for P95 per pound.

38. The joint cost share of product Kryptite using the net realizable value method must be:a. P126,000B. P84,000C. P140,000D. P70,00039. Assuming that Arlene Chemical Companys management is considering an opportunity to process Kryptite further into a new product called Omega. The seperable processing will cost P40 per pound. Packaging costs for Omega are projected to be P6 per pound, and the anticipated slaes is P130 per pound.Should Kryptite be processed further into Omega?A. Yes, because of an advantage of P22,000.B. No, because of disadvantage of P22,000.C. No, because of disadvantage of P10,000.D. Yes, because of an advantage of P10,000.40. Rochelle Block CO. produces cement blocks used in the foundation for buildings. The process takes place in two sequential departments. The following data pertain to the month of October.

Pouring Dept.Finishing Dept.Direct Materials entered into production P 70,000 P 25,000Direct Labor 340,000 280,000Applied manufacturing overhead 680,000 420,000Cost of goods completed and transferred out 900,000 400,000 + cost of goods transferred to the Finishing Department.+ cost of goods transferred to finished goods.The amount of work in process inventory of Rochelle Block at the end of October must be:A. P1,415,000B. P515,000C. P190,000D. P1,225,00041. On August 1, 2012, the Tesla Motors Corp. sold an inventory to Tempur Corp. for P2,200,000. Terms of the sale called for down payment of P550,000 and four annual installment of P412,500 due on August 1, 2013. The inventory of cost is 825,000. The company uses the perpetual inventory system.

Compute the amount of realized gross profit to be recognized in 2013.Installment MethodProfit RealizationAccrual MethodA. P 343,750P 412,5000B. 343,750 550,000 1,375,000C. 601,562 962,500 1,375,000D. 257,812 412,5000

42. Proctor and Gamble uses the installment method in accounting for its sales under the installment plan. On January 1, 2013, Proctor and Gamble had an installment accounts receivable from Pfizer with a balance of P90,000. During 2013, P20,000 was collected from Proctor and Gamble. When no further collection could be made the merchandise sold to Pfizer was repossessed. The merchandise had a fair market value of P32,500 after the company spent for P3,000 for reconditioning of the merchandise, the normal profit rate of used merchandise is 10%. The merchandise was originally sold with gross profit rate of 40%.

How much is the loss on repossession?A. P10,500 lossB. P12,750 lossC. P12,500 lossD. P15,750 loss

43. On December 30, 2013, Cebuchon signed a franchise agreement for the operation of an outlet in Baguio. The franchising agreement required the franchisee to make an initial payment of P700,000 upon signing of the contract and three payments each of P350,000 beginning one year from the agreement date and yearly thereafter. The franchisor agrees to make market studies, find a suitable location, train employees and perform the related services next year. The initial down payment is refundable until substantial performance is affected.

At the end of 2013, Cebuchon should report unearned franchise revenue ofA. P0B. P1,750,000C. P1,225,000D. P700,000

44. On January 2, 2013, 7-Eleven Company signed an agreement to operate as a franchise of ELY Products, Inc., for an initial franchisee of P468,750 for 7 years. Of this amount, P87,500 was paid when the agreement was signed and the balance payable in four annual payments beginning on December 31, 2013. 7-Eleven signed a non-interest bearing note for the balance. 7-Eleven rating indicates that he can borrow money at 16% for the loan of this type. Assume that substantial services amounting to P141,750 had already been rendered by ELY Products and that additional indirect franchise cost of P12,750 was also incurred. PV factor is 2.80.

If the collection of note is not reasonably assured, the net income for the year ended December 31, 2013 isA. P156,717.50B. P126,767.50C. P84,067.50D. P114,017.50

45. GAP Construction Corp. recently acquired the Price Corp. Price has incomplete accounting records. On one particular project, only the information below is available:

201220132014Cost incurred during the year1,000,0001,250,000?Estimated cost to complete2,250,000 950,000-Recognized Revenue1,100,000 ??Realized gross profit on contract? 50,000 (50,000)Contract Price3,500,000

Price Corp. uses the percentage of completion method and percentage of work completed is determined through surveys of work performed (engineers estimated).

The cost incurred in 2014 isA. P2,250,000B. P1,100,00C. P1,150,000D. P3,400,000

46. In 2012, LED entered into an agreement to construct a Building at a contract of 50,000,000. Construction data were as follows:201220132014Construction cost incurred P 7,500,000 P27,000,000 P 6,300,000Estimated cost complete 30,000,000 8,625,000 0Progress Billings 8,000,000 ?6,000,000Collection from client? ? 11,500,000How much is the construction profit for the year 2012?A. P33,000,000B. P5,500,000C. P36,000,000D. P2,500,000

47. LCD Corp. was the lowest bidder on an office building construction contract. The contract price was P14,000,000 with an estimated cost to complete the project of P12,000,000. The contract period was 34 months starting January 1, 2012. The company uses the cost to cost method of estimating earnings. Because of the changes requested by the customer, the contract price was adjusted downward to P13,000,000 on January 1, 2014.

A record of construction activities for the years 2012-2015 follows:YearActual Cost Current YearProgress BillingsCash Receipts2012 P 5,000,000P 4,200,000P 3,600,0002013 6,475,000 6,200,000 6,000,0002014 820,000 2,600,000 2,000,0002015-- 1,400,000The estimated cost to complete the contract as of the end of each period follows:2012 P 7,500,0002013 1,275,0002014 0

How much is the total construction in progress net billings in 2013?A. P2,200,000B. P1,300,000C. P1,600,000D. P1,100,000

48. The following data were taken from the records of Home Depot and its Baguio branch for 2013:Home officeBaguio branchSalesP1,590,000P 472,500Inventory, January 1 172,500 66,750Purchases 1,230,000-Shipment to branch 315,000 Shipments from the home office 378,000Inventory, December 31 213,750 87,750Expenses 573,000 152,250

In 2013, Home Office billed Baguio branch at 120% of cost which was lower by 5% than last years.

By what amount will the retained earnings of the home office increase in its separate books?A. P144,975B. P148,950C. P143,250D. P168,225

49. A home office ships inventory to its branch at 125% of cost. The required balance of the unrealized intercompany profit account is P263,250. During the year, the home office sent merchandise to the branch costing P2,352,000. At the start of the year, the branchs balance sheet shows P945,000 of inventory on hand that was acquired from the home office.

In the separate books of the home office, by what amount will the contract investment in branch account be decreased by?A. P236,250B. P513,750C. P396,150D. P540,75050. On December 31, 2013, the home office current account on the books of Quezon branch has a balance of 2,275,000. In analyzing the activity in each of these accounts for December, you find the following differences.A.) An P84,000 branch remittance to the home office initiated on December 21, 2013 was recorded twice by the home office on December 26 and 28 of the same year.B.) The home office incurred P126,000 of advertising expenses and allocated 1/3 of this amount to the branch on December 20. The branch recorded this transaction December 22 amounting to P4,200.C.) Inventory costing P853,300 was sent to the branch by the home office on December 15. The billing was at cost, but the branch recorded the transaction at P835,300.D.) The home office erroneously recorded the branch net income at P243,075. The branch reported net income of 234,705.

The investment in branch account adjusted balance as of December 31, 2013?A. P2,255,170B. P2,254,000C. P2,330,800D. P2,406,430