Cpa Mockboard

2011 NATIONAL CPA MOCK BOARD EXAMINATION

In partnership with the Professional Review & Training Center, Inc. and Isla Lipana & Co.

PRACTICAL ACCOUNTING 1

INSTRUCTIONS: Select the best answer for each of the following questions. Mark only one answer for each item on the answer sheet provided. AVOID ERASURES. Answers with erasures may render your examination answer sheet INVALID. Use PENCIL NO.2 only. GOODLUCK! 1. The general ledger trial balance of Central Corporation includes the following statement of financial position accounts at December 31, 2010: d. Inventory (including inventory expected in the ordinary course of operations to be sold beyond 12 months amounting to P70,000) Trade receivables Prepaid insurance Listed investments held for trading purposes at fair value Available for sale investments Cash and cash equivalents Deferred tax asset Bank overdraft sale on account for P128,000 on December 31. The merchandise cost P73,500, and Oval received it on January 3. Included in inventory was merchandise received from Owl on December 31 with an invoice price of P156,300. The merchandise was shipped f.o.b destination. The invoice, which has not yet arrived, has not been recorded. Not included in inventory is P85,400 of merchandise purchased from Oxygen Industries. The merchandise was received on December 31 after the inventory had been counted. The invoice was received and recorded on December 30. Included in inventory was P104,380 of inventory held by Ovation on consignment from Ovoid Industries. Included in inventory is merchandise sold to Kemp f.o.b. shipping point. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale for P189,000 on December 31. The cost of this merchandise was P105,200, and Kemp received the merchandise on January 5. Excluded from inventory was carton labeled “Please accept for credit.” This carton contains merchandise costing P15,000 which had been sold to a customer for P25,000. No entry...