1 Current Assets 4,200,000 C

2 Current Liabilities 3,550,000 B

3 Adjusting events 700,000 D

4 Net Income 2,300,000 A

5 Impairment loss (5.8M - 6.4M) (600,000) B

6 Gain on reclassification (5.5M - 5.8M) (300,000) C

7 Increase in RE (800k x 70%) 560,000 A

8 Variable expense (5M x 25%) 1,250,000

Fixed expenses (1.6M / 4) 400,000
Depreciation (800k / 4) 200,000
Other fixed expenses (5M - 1,250,000 - 1,600,000 - 800,000) 1,350,000
Total expenses for 1st quarter 3,200,000 D

9 Cash in bank 2,500,000

Savings Deposit 1,000,000
Undelivered check 150,000
Post dated check issued 300,000
Receipts after the balance sheet date (400,000)
Total cash 3,550,000 A

10 Money market placement 3,500,000 A

11 ADA 12/31/19 78,000 B

12 Beginning 56,000
WO (50,000)
Recovery 10,000
Balance before adjustment 16,000
Provision or expense (SQUEEZED) 62,000 B
Required allowance as above 78,000

13 Maturity value 9,270,000

Discount 231,750
Proceeds 9,038,250
Face value (9,000,000)
Accrued interest (9M x 12% x 1/12) (90,000)
Interest expense rather than loss on discounting (51,750) B
14 D

15 PV of 2021 Cash Flow (6,540,000 x .77) 5,035,800

Less: CA of Principal and accrued interest 6,540,000
Impairment loss (1,504,200) B

16 2019 interest income 453,222 C

17 Adjusted Inventory 2,150,000 C

18 Unadjusted COGS 5,200,000

COGS charged for FOB destination (150,000)
Inventory losses 200,000
Write down to NRV 300,000
Total COGS 5,550,000 A

19 GAS at retail 4,700,000

Less:Net sales 4,300,000
EI at retail 400,000
Cost ratio 65%
Estimated ending inventory at cost 260,000 C

20 GAS at cost 3,315,000

Less: EI (260,000)
Est'd COS 3,055,000 A

21 Unrealized loss - OCI (6.6M - (7.4M - 200)) 800,000 B

22 SP 1,500,000
Less: Cost 1,800,000
Adjutment to RE (300,000) B

23 Cost 2,000,000
Net Increase (1.5M - 800k) x .30 210,000
CA 2,210,000 B
2019 Investment income and increase 900,000
Carrying amount before sale 3,110,000

24 SP 1,800,000
CA sold 1,555,000
Gain on sale 245,000
Gain on reclassification (1.9M - 1.555) 345,000
Dividend inocme 150,000
Investment income as above 900,000
Total income recognized in profit or loss 1,640,000 C
25 Cost 3,800,000
EI 380,000
NI (320,000)
AC 12/31/18 3,860,000
EI 386,000
NI (320,000)
AC 12/31/19 3,926,000

FV 4,800,000
Less: AC 3,926,000
UG in OCI 874,000 B

26 2019 Interest Income 386,000 C

27 FV on 12/31/19 4,800,000 A

28 Derivative liability (50,000 x 15) 750,000 C

29 Paid to supplier (50,000 x 35) 1,750,000

Settlement for futures 750,000
Total cost of purchase 2,500,000 D

30 Land Building
31 Beginning 3,200,000 7,500,000
Land 1 acquired 1,825,000
Land 2 and building 3,600,000 1,800,000
Demolition cost 100,000
Building charged to expense (1,800,000)
New building cost 5,270,000
Total cost or carrying amount 8,625,000 12,870,000 D and C

32 Cost of successful exploration projects (7M x 5) 35,000,000

Depletion 10,500,000
CA 24,500,000 D

33 WA 2018 (2M x 5/5 + 4M x 3/5 + 3M x 1/5) 5,000,000

Less: SB 2,000,000
GB 3,000,000

SB (2,000,000 x 9% x 5/12) 75,000

GB (3,000,000 x 12% x 5/12) 150,000
Total 225,000
Construction cost 9,000,000
Total 9,225,000

WA 2019 (9,225,000 x 9/9 + (900,000 3/9) 9,525,000

 Less: SB 2,000,000
GB 7,525,000

34 SB (2,000,000 x 9% x 9/12) 135,000

GB (7,525,000 x 12% x 9/12) 677,250
Total 812,250
Less: Total interest (2M x 9%) + (15M x 12%) 1,980,000
Interest expense (1,167,750) C

Total construction cost 9,900,000

Capitalized BC 1,037,250
Total cost of the building 10,937,250 C

36 Sound value (4.5M * 10/12) + 100k 3,850,000

Book Value (3M * 10/12) + 250k 2,750,000
RS 1/1 1,100,000
Transfer to RE 110,000
RS 12/31 990,000 D

35 Depreciation (3,750,000 / 10) 375,000 C

37 CA of bonds (6M - 300k) 5,700,000

Equity component 1,200,000
Total 6,900,000
PV (40 x 6,000 x 20) 4,800,000
SP from issuance 2,100,000 C

38 Recoverable amount 4,050,000

39 CA 4,850,000
Impairment loss (800,000)
GW 100,000
Patent 100,000 B
Balance to PPE (600,000) C

40 Recoverable amount 8,650,000

CA 10,000,000
Impairment loss (1,350,000) B

41 Revalued amount 8,300,000

CA (8,650,000 x 9/10) 7,785,000
Gain on reversal 515,000 B

42 Impairment loss (3M - 3.5M) 500,000

Deferred loss recognized (3M - 1.8M) / 5 240,000
Rent expense 200,000
Total 940,000 B
43 Probability 1 (20M x 10% x 3%) 60,000
Probability 2 (20M x 90% x 2%) 360,000
Total 420,000
Increment adjustment for risk 25,200
Total 445,200

2018 Expected repairs (445,200 / 2) 222,600

44 2019 Expected repairs and Liability (445,000 / 2 x .95) 211,470 D
Warranty expense 434,070 D

45 Year 1 300,000
Year 2 to 5 3,600,000
Total 3,900,000
Divide by leaseterm 5
Annual rent income 780,000 B
3
Total rent income as of 2020 2,340,000
Less: Total collection 2,100,000
46 Rent receivable 240,000 D

47 Face value 1,680,000

Interest 1,540,800
Market price 3,220,800 C

48 Interest expense 289,872 D

49 Lease liability (1,530,000 x 5.50) 8,415,000

1st payment 1,530,000
Balance 6,885,000 B

50 Interest expense 619,650 A

51 C
52 A
53 B
54 B
55 C
56 B
57 A
58 D
59 A
60 C
61 A
62 B
63 A
64 D
65 C
66 C
67 D
68 C
69 C
70 B