1.

Ensure Company maintains a medical and dental clinic and keeps limited during the year were P 5,000,000 and total expenses were P 4,600,000.
accounting records. Its assets and liabilities at the beginning and end of the Cash increased by P 75,000 during the year. What amount of dividends did
current year as follows: Maxwell Company declare during 2032?
Beginning End 6. Following are data relating to the operations of Centrum Company for six
Cash in Bank P 12,000 P (5,000) months which started on July 1, 2032:
Accounts Receivable 68,000 70,000 Cash receipts
Medical supplies 30,000 15,000 Investment by owner P 250,000
Accounts Payable 40,000 20,000 Collections on sales on account 310,000
Notes payable-bank 20,000 25,000 Cash sales 85,000
Medical equipment (net) 150,000 125,000 Proceeds of a note payable dated October 1, 2032
and due October 1, 2033, discounted at 18% 24,600
During the year, the owner withdrew cash of P12,000 and made additional Cash disbursements
investment of P50,000. The profit (loss) of Ensure Company for the year is __ Purchase of land and building on July 1, 2032 P 240,000
20% down payment on furniture and fixtures
2. Bear Brand, Inc. owns an office building and leases the offices under a one- purchased on instalment on July 1, 2032 4,000
year rental agreement. Not all tenants make timely payments of their rent. On accounts Payable 280,000
Bear Brand’s statement of financial position contained the following data: For other operating expenses 45,000
2031 2032
Rentals Receivable P 96,000 P 124,000  Of the sales on account, P4,000 was returned because of poor quality and
Unearned Rentals 320,000 240,000 there was a purchase return of P 5,000. On December 31, 2032, the
following balances were available:
During 2032, Bear Brand received P80,000 cash from tenants. The amount of  Accounts receivable, P66,000; Accounts payable, P67,000; Accrued other
Rental Revenue for 2032 is _________ operating expenses P3,500.
 The land has an allocated cost of P40,000. Annual depreciation is 4% on
3. The accrual profit or loss of Carnation Inc. included the following expenses the building and 10% on the furniture and fixtures.
for 2032: Depreciation expense - P65,000; Salaries and wages – P189,000;  Inventory on December 31, 2032 is P21,700.
Interest expense - P36,000. The comparative statements of financial position
reported the following related accounts: Gross sales for the period amounted to _________
12/31/32 12/31/31 7. Gross purchases for the period amounted to __________
8. Cost of sales for the period is __________
Accumulated depreciation P 96,000 P 154,000 9. Total operating expenses for the period is _________
Accrued salaries and wages 8,000 12,000
10.Tom Cruz started his Train Fastfood on July 1, 2032 with an initial investment
Accrued interest payable 10,500 7,000 totaling P500,000 (P300,000 in cash and P200,000 equipment). Train
Fastfood also borrowed P500,000 from a bank.
During its first six months of operations, revenues totaled P2,100,000 of
Considering only the data above, a pure cash basis income statement would which P1,900,000 were collected. Purchases for kitchen supplies amounted
report expenses for 2032 of _________ to P1,850,000 of which P230,000 remained unpaid. His fast food operations
were made at 50% above cost.
4. These data relate to store equipment of Progress Company for 2032: He purchased a new equipment on October 1, 2032 and this was
2031 2032 depreciated for P8,000 based on a five-year life with a salvage value of 20%
Store equipment-cost P 145,000 P 175,000 of its cost. The company also used the same basis of depreciation for the
Accumulated depreciation 58,000 60,000 other equipment he initially invested.
The balance of his bank loan at December 31, 2032 is P200,000. All
Store equipment costing P30,000 was sold for P21,000 resulting in a gain of operating expenses, including the purchase of new equipment, were paid in
P3,000. The depreciation expense on store equipment for 2032 is _________ cash. Train Fastfood’s business operations ending December 31, 2032
showed a profit of P120,000.
5. Maxwell Company’s total equity increased by P 320,000 during 2032. New
shareholder investment during the year totaled P 650,000. Total revenues
Required: Prepare a statement of comprehensive income for the six months
ended December 31, 2032, a statement of financial position as at December
31, 2032 and a schedule of cash receipts and payments for the period.