32) Psalm Company reported P210,000 in sales. Its opening accounts receivable balance was P45,000 and its
ending accounts receivable balance was P50,000. The company also reported P20,000 unearned revenues
at the end of the year. What was the amount of cash collected from customers for the year?
A. 225,000 B. 215,000 C. 210,000 D. 205,000
33) Backa Company has the following information:
Prepaid insurance January 1 1,600,000
Prepaid insurance December 800,000
Insurance payable decrease by 1,200,000
Insurance payments 4,000,000
How much is the insurance expense under accrual basis?
A. 4,000,000 B. 3,400,000 C. 3,600,000 D. 4,800,000
34) Jayvier Company has the following information:
Prepaid insurance January 1 1,600,000
Prepaid insurance December 800,000
Insurance payable decrease by 1,200,000
Insurance payments 3,600,000
How much is the insurance expense under cash basis?
A. 4,000,000 B. 2,400,000 C. 3,600,000 D. 4,800,000
35) Using the data for Canonizado Corporation, compute the liabilities at year-end:
Total assets, end 80,000
Share capital, end 15,000
Retained earnings, beginning 22,000
Net income 15,000
Dividends declared 7,000
A. 65,000 B. 50,000 C. 43,000 D. 35,000
