Accountancy Department

Final Examination-ADFINA 2
Name of student: ____________________________________ Score: _______________
Date: _______________

PROBLEM 1
During Feb 3, 2019, Pulang manok Corp. contacted LetstoGo corp(US based Corp)via online
platform. The said corp is a seller of chicken food products. The merchandise was worth $4500.
During that date the spot rate was 54 per 1 dollar. The merchnadise was paid 2 days after and
arrived 8 days after the date of payment.
Feb 3 Feb 5 Feb 10 Feb 13
Spot Rates P 54 P53 P52 P 55
How much is the amount of purchases to be recorded?

PROBLEM 2
Marvels sold props and costumes to Probinsyano. The orders contained 50 units of props and
40 units of costumes. Price per unit is $25 for both orders. These items arrived early and
recorded by Probinsyano. Date of payment will be on January 4 next year, 3 months after the
date of arrival of the items. During October 4, an option contract was acquired for P 3,400.00 at
a strike price of 51.
Date Spot rates strike price FV of option
Oct 4 51 51
Dec 31 ? 50 4,700
Feb 4 54 53 5,300
The reported loss on time value measurement was 3200 while the reported gain in intrinsic
value was 4,500. If the net loss on Forex transaction was P 950, how much was spot rate
on December 31, 2019?

PROBLEM 3
Chrui intends to sell ¥400,400 under a forward contract dated December 1. At what amount
must
Forward Contract Receivable and Forward Contract Payable be presented on December 31?
Dates Forward Rates Spot Rates
December 1 P 0.55 P 0.53
December 31 P 0.50 P 0.49
March 22 P 0.48 P 0.46
FC Receivable_______________
FC Payable____________

PROBLEM 4
On January 1, 2013 Lucky Inc. paid P9,800 to acquire a put option. This is in relation to the sale
of merchandise worth $65,000. (Strike price = P4.965)

1/1/2013 3/31/2013 6/20/2013

Spot rate P4.934 P4.908 P4.75
Fair value of option P9,800 P11,400 P13,935
How much is the foreign currency gain/loss on the intrinsic portion on March 31, 2013?

PROBLEM 5
On October 31, 2013, Pointers Philippines took delivery from a British firm of inventory costing
£1,450,000. Payment is due on January 31, 2014. At the same time, Pointers paid P16,500
cash to
acquire a 90-day call option for £1,450,000.
10/31/2013 12/31/2013 1/31/2014
Strike Price P12.60 P12.60 P12.60
Spot rate P12.61 P12.62 P12.64
Forward rate P12.72 P12.77 P12.78
Fair Value of Call Option ? P34,000 ?
Given the information above, compute for the following:
Foreign exchange gain or loss on option contract due to change in time value on
December 31, 2013,
and foreign exchange gain or loss due to change in intrinsic value on January 31, 2014.
PROBLEM 6
On January 2, 2012, D Corporation purchased 85% of the outstanding shares of C Company for
P4,750,000. At that date, C had P4,500,000 of ordinary shares outstanding and retained
earnings of
P1,900,000.

 C’s equipment with a remaining life of 5 years had a book value of P2,350,000 and a fair
value of
P2,530,000. C’s remaining assets had book values equal to their fair values.

 All intangibles except goodwill are expected to have remaining lives of 8 years.
 The income and dividend figures for both D and C are as follows: Net income of D in
2012 is
P900,000; 2013 is P1,100,000. Net income of C in 2012 is P340,000; 2013 is P510,000.

 Dividends of D in 2012 is P220,000; 2013 is P390,000. Dividends of C in 2012 is

P70,000; 2013 is
P130,000.

 D’s retained earnings balance at the date of acquisition was P3,450,000.

How much is the consolidated retained earnings attributable to controlling interest in
2013?
PROBLEM 7
On January 2, 2012, the assets and liabilities of Sincere Co. were stated at their fair values
except for machinery which is undervalued by P225,000 (remaining life is 3 years). On
September 30, 2012, Sincere sold merchandise to Pure at an inter-company profit of P150,000;
25% was still unsold at year-end.
Likewise, on October 1, 2013, Sincere purchased merchandise from Pure for P3,600,000. The
selling affiliate included a 20% mark-up on cost on this sale. Only 75% of these purchases had
been sold to unrelated parties as of December 31, 2013. As of December 31, 2013, goodwill
was determined to be impaired by P60,000.
The following is the summary of the 2013 transactions of the affiliated companies:
Pure Corp. Sincere Co.
Net Income P1,500,000 P600,000
Dividends declared and paid 600,000 180,000
On the 2013 consolidated financial statements, how much would be the:
1. Net income attributable to Parent
2. Non-controlling interest in net income