Financial Accounting & Reporting
Exam 2 With 100% Correct Solutions
Shaina took the October 200B Certified Public Accountant Licensure Examination
(CPALE) and obtained a general average of 85%, with four (4) subjects higher than
75% and no grade lower than 65% in the remaining two (2) subjects. Using the
current Board of Accountancy (BOA) Resolution, what is her status in the examination?
Response: Passed
Feedback: Correct! Shaina passed because she obtained a general average of 85%,
with four (4) subjects higher than 75% and no grade lower than 65% in the
remaining two (2) subjects.
Score: 1 out of 1 Yes
Question 10
What is the initial measurement of an internally generated intangible asset?
Response: Directly attributable cost incurred after the asset met the criteria
for capitalizing development cost
,Feedback: Correct! An internally generated intangible asset is initially measured
using directly attributable cost incurred after the asset met the criteria for capitalizing
development cost.
Score: 1 out of 1
Question 1
Given the following account balances of Junghwan Company for the month ended
June 30, 2X20, how much is its total assets?
Revenues P85,000
Expenses:
Popcorn 22,800
Toppings and
17,300
seasonings
Employees’
wages and 10,700
benefits
Lease payments 24,000
Utilities 3,200
, Advertising 900
Miscellaneous 300
Cash 6,200
Equipment 12,500
Accounts Payable 650
Wages Payable 1,200
Investment by
12,500
Owner
Drawings by
1,450
Owner
Response: P18,700
Feedback: Correct! Cash P6,200 + Equipment P12,500 = P18,700
Score: 1 out of 1 Yes
Question 2
Adjustments for professional fees received but not yet rendered:
Response: Decrease liabilities and increase revenues
Feedback: Correct! Adjustments will consist of a debit (decrease) to unearned
revenues (a liability) and credit (increase) to a revenue account.
Score: 1 out of 1 Yes
, Question 3
The trial balance shows Prepaid Rent P1,575 and Rent Expense P0. If P800 is the
remaining balance of Prepaid Rent at the end of the period, the adjusting entry is:
Response: Dr. Rent Expense P775; Cr. Prepaid Rent P775
Feedback: Correct! Debiting Rent Expense for P775 and crediting Prepaid Rent
for P775 (P1,575 – P800) will decrease Prepaid Rent and increase Rent Expense.
Score: 1 out of 1 Yes
Question 4
ML Company incurred the following costs in its production of Product Green:
Beginning finished goods of P10,000; Cost of goods manufactured amounting to
P6,500 and ending finished goods of P5,000. What amount will be reported as the cost
of goods sold?
Response: P11,500
Feedback: Correct! Beg. Finished Inv. + COGM – End. Finished Inv. = COGS; P10,000
+ P6,500 - P5,000 =
P11,5000 Score: 1 out of 1 Yes
Question 5
Given the following account balances of Junghwan Company for the month ended
June 30, 2X18, how much is its net assets?
Exam 2 With 100% Correct Solutions
Shaina took the October 200B Certified Public Accountant Licensure Examination
(CPALE) and obtained a general average of 85%, with four (4) subjects higher than
75% and no grade lower than 65% in the remaining two (2) subjects. Using the
current Board of Accountancy (BOA) Resolution, what is her status in the examination?
Response: Passed
Feedback: Correct! Shaina passed because she obtained a general average of 85%,
with four (4) subjects higher than 75% and no grade lower than 65% in the
remaining two (2) subjects.
Score: 1 out of 1 Yes
Question 10
What is the initial measurement of an internally generated intangible asset?
Response: Directly attributable cost incurred after the asset met the criteria
for capitalizing development cost
,Feedback: Correct! An internally generated intangible asset is initially measured
using directly attributable cost incurred after the asset met the criteria for capitalizing
development cost.
Score: 1 out of 1
Question 1
Given the following account balances of Junghwan Company for the month ended
June 30, 2X20, how much is its total assets?
Revenues P85,000
Expenses:
Popcorn 22,800
Toppings and
17,300
seasonings
Employees’
wages and 10,700
benefits
Lease payments 24,000
Utilities 3,200
, Advertising 900
Miscellaneous 300
Cash 6,200
Equipment 12,500
Accounts Payable 650
Wages Payable 1,200
Investment by
12,500
Owner
Drawings by
1,450
Owner
Response: P18,700
Feedback: Correct! Cash P6,200 + Equipment P12,500 = P18,700
Score: 1 out of 1 Yes
Question 2
Adjustments for professional fees received but not yet rendered:
Response: Decrease liabilities and increase revenues
Feedback: Correct! Adjustments will consist of a debit (decrease) to unearned
revenues (a liability) and credit (increase) to a revenue account.
Score: 1 out of 1 Yes
, Question 3
The trial balance shows Prepaid Rent P1,575 and Rent Expense P0. If P800 is the
remaining balance of Prepaid Rent at the end of the period, the adjusting entry is:
Response: Dr. Rent Expense P775; Cr. Prepaid Rent P775
Feedback: Correct! Debiting Rent Expense for P775 and crediting Prepaid Rent
for P775 (P1,575 – P800) will decrease Prepaid Rent and increase Rent Expense.
Score: 1 out of 1 Yes
Question 4
ML Company incurred the following costs in its production of Product Green:
Beginning finished goods of P10,000; Cost of goods manufactured amounting to
P6,500 and ending finished goods of P5,000. What amount will be reported as the cost
of goods sold?
Response: P11,500
Feedback: Correct! Beg. Finished Inv. + COGM – End. Finished Inv. = COGS; P10,000
+ P6,500 - P5,000 =
P11,5000 Score: 1 out of 1 Yes
Question 5
Given the following account balances of Junghwan Company for the month ended
June 30, 2X18, how much is its net assets?
