PPL CUP – PRTC - EASY
1. Aaron Company sells subscription to a specialized directory that is published semi
annually and shipped to subscribers on April 15 and October 15. Subscriptions received
after March 31 and September 30 cutoff dates are held for the next publication. Cash
from subscriber is receive evenly during the year and is credited to deferred revenues
from subscriptions. Data relating to 2009 are as follows:
Deferred revenues from subscriptions,
balance 12/31/08 P 1,500,000
Cash receipts from subscribers P 7,200,000
In its December 31 2009 balance sheet, Aaron should report deferred revenues from
subscription of
a. P 1,800,000 c. P 3,600,000
b. P 3,300,000 d. P 5,400,000
(3 months from Oct. 1 to Dec. 31 / 12 months ) * 7,600,000 = 1,800,000
2. At January 1, a sole proprietorship’s asset totaled P210,000, and its liabilities
amounted to P 120,000. During the year, owner investments amounted to P 72,000, And
owners withdrawal totaled P75,000. At year end, assets totaled P 270,000 and liabilities
amounted to P 171,000. The amount of net income for the year was
a. P 0 c. 9,000
b. P6,000 d. 12,000
Owner’s Equity, Jan 1 (P 210,00 – P 120,000) P 90,000
Investment 120,000
Withdrawal (75,000)
Owner’s Equity, Dec 31 (P 270,00 – P 171,000) 99,000
Net Income P 12, 000
3. The following pertains to Bull Company’s biological assets:
Price of the asset in the market P 5,000
Estimated commission to brokers and dealers 500
Estimated transport cost and other cost necessary to get
asset to the market 300
Selling price in a binding contract to sell P 5,200
The entity’s biological assets should be valued at
a. P 4,700 b.4,400 c. 4,500 d. 4,200
Price of the asset in the market P 5,000
Estimated commission to brokers and dealers (500)
Estimated transport cost and other cost necessary to get asset to the market (300)
4,200
