Problem 1. On December 1, 2013, the IPhone6 Co. established an agency in Laguna, sending its merchandise samples costing P15,750 and a working fund of P9,000 to be maintained on the imprest basis. During the month of December, the agency transmitted to the home office sales orders which were billed at P64,380. A home office disbursement chargeable to the sales

agency is the acquisition of furniture and fixtures for Laguna, P25,000 to be depreciated at 24% per annum. The agency paid expenses of P3,815. On December 31, 2013, the agency samples were valued at P10,075. The gross profit rate of the goods

shipped to the agency 20% based on selling price. How much is the net income of the agency for the month ended December

31, 2013?

a. P -0- b. P 2,886 c. P 3,386 d. P 12,876

Problem 2. On June 1, 2013, The Capitol Inc. established an agency in District 12, sending samples costing P4,200,000 which are

useful until May 31, 2014 and have a salvage value of P840,000. A working fund of P3,412,500 is to be maintained using imprest basis. During 2013, the agency submitted to the home office sales order amounting to P35,437,500. Sales per invoice were P27,562,500 which were duly approved by the home office. Collections during the year amounted to P14,784,000 net of 4%

sales discount. The cost of merchandise sold during the year is 70% of the gross selling price. Vouchers for the expenses

amounted to P1,837,500. How much is the net income would be reported by District 12 agency on December 31, 2013?

a. P 4,471,250 b. P 4,135,250 c. P 5,535,250 d. P3,855,250