ACC 221

COMPETENCY ASSESSMENT
2nd Semester, SY 2020-2021

Instructions:
1. Answer must be handwritten.
2. Use white ruled paper.
3. Use black ink pen.

The problem
The following accounts appear for Hopeful Company for 2020 and 2019:

2020 2019
Petty Cash Fund 126,000 126,000
Cash 2,452,320 1,857,600
Treasury Bill (90 days) 1,132,560 1,082,520
Accounts Receivable 5,229,720 4,690,512
Notes Receivable 1,800,000 1,800,000
Inventories 12,,142,800 11,610,000
Prepaid Advertising 518,400 -
Prepaid Rent 594,000 -
Office Supplies Inventory 464,400 -
Land 3,600,000 3,600,000
Furniture and Equipment 3,762,000 3,762,000
Delivery Equipment 5,893,200 5,893,200
Leasehold Improvement 1,306,800 1,306,800
Other Assets 1,677,600 1,677,600
Sales Discounts 225,000
120,000
Sales Returns 180,000
112,500
Cost of Sales 10,411,200 6,840,000
Sales Salaries 1,548,000 1,836,000
Advertising Expense 360,000 360,000
Depreciation expense (60% admin. &40%dist.) 720,000 -
Office Salaries 360,000 1,260,000
Insurance expense 36,000 54,000
Repairs and Maintenance (charged to admin exp.) 47,520 180,000
Interest Expense 209,592 -
Income Tax Expense 1,542,240 -
56,339,352 48,168,732

Accumulated Depreciation 3,371,400 2,651,400

Accounts Payable 1,883,160 2,556,000
Notes Payable (due in 4 years) 16,560,000 16,560,000
Accrued Expenses 227,160 50,400
Income tax payable 1,542,240 1,404,000
Other current liabilities 315,720 241,200
Bonds Payable 4,320,000 4,320,000
Premium on Bonds Payable 86,400 93,600
Share Capital, P100 par 7,200,000 7,200,000
Share Premium 1,800,000 1,800,000
Retained Earnings - beg 529,632 3,069,000
Sales 17,757,000 8,223,132
Royalty Income 746,640 -
56,339,352 48,168,732
 Requirement: Prepare the following:
a. Statement of Financial Position (using Report Form)
b. Statement of Comprehensive Income (using functional approach)
c. Statement of Changes in Equity
d. Statement of Cash Flows
e. Notes to Financial Statements. Only the supporting information or computation for line items
presented in the financial statements. Provide a space of the other information. See sample
below:

NOTES TO FINANCIAL STATEMENTS

Statement of Compliance with PFRS

Summary of Significant Accounting Policies

Supporting Information
2021 2020
Note 1: Cash and Cash Equivalents
Petty Cash Fund Pxxx,xxx Pxxx,xxx
Cash

Other Disclosures

f. Determine the book value per share and the earnings per share for 2019 and 2020

RUBRICS
Needs TOTAL
Criteria Excellent (5) Very Good (4) Good (3) Poor (1) Weight
Improvement (2) POINTS

more than 9 items

All items are 1 to 3 items are not 4 to 6 items are not 7 to 9 items are not
Correctness of are not properly
properly classified properly classified properly classified properly classified
Statement of classified and/or ___ X 3 15
and correctly and/or not correctly and/ or not and/ or not
Financial Position not correctly
stated. stated. correctly stated correctly stated.
stated.
more than 9 items
Correctness of All items are 1 to 3 items are not 4 to 6 items are not 7 to 9 items are not
are not properly
Statement properly classified properly classified properly classified properly classified
classified and/or ___ X 3 15
Comprehensive and correctly and/or not correctly and/ or not and/ or not
not correctly
Income stated. stated. correctly stated correctly stated.
stated.
Correctness of more than 9 items
All items are 1 to 3 items are not 4 to 6 items are not 7 to 9 items are not
Statement of are not not ___ X 3 15
correctly stated. correctly stated. correctly stated correctly stated.
Changes in Equity correctly stated.
Correctness of more than 9 items
All items are 1 to 3 items are not 4 to 6 items are not 7 to 9 items are not
Statement of Cash are not not ___ X 3 15
correctly stated. correctly stated. correctly stated correctly stated.
Flow correctly stated.
more than 9 items
All items are 1 to 3 items are not 4 to 6 items are not 7 to 9 items are not
Correctness of are not properly
properly classified properly classified properly classified properly classified
Notes to Financial classified and/or ___ X 3 15
and correctly and/or not correctly and/ or not and/ or not
Statement not correctly
stated. stated. correctly stated correctly stated.
stated.
All items are Only 1 item is not 2 items are not 3 items are not 4 items are not
Correctness of BVPS
correctly correctly correctly correctly correctly ___ X 2 10
& EPS
determined. determined. determined. determined. determined.
All of the 1 of the 2 of the 3 of the 4 or more of the
requirements were requirements is not requirements are requirements are requirements are
Completeness ___ X 2 10
prepared prepared not prepared not prepared not prepared
completely. completely. completely. completely. completely.
2 of the 3 of the 4 or more of the
All of the 1 of the
requirements are requirements are requirements are
Neatness requirements are requirements is not ___ X 1 5
not prepared not prepared not prepared
prepared neatly. prepared neatly.
neatly. neatly. neatly.