[INTERMEDIATE ACCOUNTING 3]

PROBLEM 1-11.

a. Provision for unredeemed coupons

@December 31, 2019 (30,000/5)xP100 600,000
@December 31, 2020 (80,000/5)xP100 1,600,000

PROBLEM 1-12.

a. Sales Revenue (98%xP5,000,000) 4,900,000

Liability for Customer Loyalty Awards (2%xP5,000,000) 100,000
Revenue in 2019 as a result of redemption of reward points
(100,000x25/90) 27,778

Revenue from redemption as of December 31, 2020

(100,000x60/95) P63,158
Less revenue earned in 2019 (27,778)
Revenue in 2020 as a result of redemption of reward points P35,380

b. Liability as of December 31, 2019 (100,000-27,778) P72,222

Liability as of December 31, 2020 (100,000-63,158) P36,842

PROBLEM 1-13.

Cash 2,000,000

Unearned revenue from gift certificates outstanding 2,000,000

Unearned revenue from gift certificates outstanding 1,280,000

Sales 1,280,000

PROBLEM 1-14.

Cash 3,000,000

Unearned revenue from gift certificates outstanding 3,000,000

Unearned revenue from gift certificates outstanding 2,750,000

Sales 2,750,000

Unearned revenue from gift certificates outstanding 150,000

Revenue from forfeited gift certificates 150,000

Intermediate accounting III CHAPTER 1

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PROBLEM 1-15.

Refundable deposits, January 1, 2020 P250,000

Deposits received during the year 200,000

Deposits refunded during the year (267,000)

Deposits forfeited during the year (100,000-82,000) (18,000)

Refundable deposits, December 31, 2020 P165,000

PROBLEM 1-16.

a. Subscriptions sold in 2017 and 2018

(5,000,000+4,500,000) P9,500,000
Expired subscriptions in
2017 P1,000,000
2018 (2,800,000+1,200,000) 4,000,000 5,000,000
Unearned subscriptions, January 1, 2019 P4,500,000

b. 2019
Cash 5,500,000
Unearned subscriptions revenue 5,500,000
2020
Unearned subscriptions revenue 5,000,000
Subscription revenue
(1,200,000+2,000,000+1,800,000) 5,000,000

c. 2019 2020

Unearned subscription revenue, January 1 P4,500,000 P5,000,000

Subscription received during the year 5,500,000 7,000,000

Subscription revenue for the year (5,000,000) (5,700,000)

Unearned subscription revenue, December 31 P5,000,000 P6,300,000

Intermediate accounting III CHAPTER 1

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PROBLEM 1-17.

Accounts Payable P270,000

Mortgage notes payable 1,300,000

Current portion of bank notes payable 100,000

Interest payable 7,500

Liability for damages (600,000+90,000)/2 750,000

VAT Payable 288,000

Income tax payable 315,000

SSS Premium payable (45,000+50,000) 95,000

PhilHealth contributions payable (22,000+28,000) 50,000

Pag-Ibig contributions payable (18,000+20,000) 38,000

Withholding tax payable 120,000

Total current liabilities P3,333,500

Intermediate accounting III CHAPTER 1