Problem 2-1 Note 1 - FAFVPL

ASSETS
Current Assets Note
Cash 800,000
FAFVPL 1 440,000
Trade & Other Receivables 2 700,000 Note 2 - Trade & Other
Inventories 1,000,000
Prepaid Expenses 160,000
TOTAL CURRENT ASSET 3,100,000

Non-Current Assets Note 3 - PPE

PPE 3 6700000
Intangible Assets 4 200,000
TOTAL NON-CURRENT ASSET 6,900,000

TOTAL ASSETS 10,000,000

LIABILITIES Note 4 - Intangiblle Ass

Current Liabilities
Trade & other payables 1200000
Note 5 - Trade & Other
Non-current Liabilities
Bonds Payable, due April 1, 2022 1,800,000
Notes Payable, due July 1, 2021 250,000
TOTAL: 2,050,000

SHAREHOLDER'S EQUITY
Share Capital, P100 par Note 6 - Bonds Payable
40,000 authorized
30,000 issued 3,000,000
Reserves 250,000
Retained Earnings 3,750,000
Treasury shares, at cost, 2000 shares -250,000 Note 7 - Reserves
TOTAL: 6,750,000

TOTAL LIABILITIES & SHE: 10,000,000 Note 8 - Retained Earni

Problem 2-2
ASSETS
Current Assets
Cash & Cash equivalents 1 700,000
Trade & Other Receivables 2 700,000
Inventories 600,000
Prepaid Expenses 3 50,000
TOTAL 2,050,000

Non-current Assets
PPE 4 4,150,000
Long-term investments 5 1,000,000
Investment Property 6 500,000
Intangible Assets 7 550,000
Other non-current assets 8 450,000
TOTAL 6,650,000

TOTAL ASSETS 8,700,000

LIABILITIES
Current Liabilities
Trade & Other payables 970,000
Serial bonds payable - current 100,000
TOTAL 1,070,000

Non-current liabilites
Serial bonds - remaining 400,000
Unearned leasehold income - remaining 280,000
TOTAL 680,000

TOTAL LIABILITIES 1,750,000

SHAREHOLDER'S EQUITY
Share Capital, P100 par 5,000,000
Reserves 1,050,000
Retained Earnings 1,200,000
Less: Treasury shares, at cost -300,000
TOTAL 6,950,000

TOTAL LIABILITIES & EQUITY 8,700,000

Problem 2-3 (Magna Company)
ASSETS
Current Asset Note
Cash 400,000
FAFVPL 100,000 (investment in securities, short-term)
Trade & Other Receivables 1 700,000
Inventories 800,000
Prepaid Expenses 100,000
TOTAL 2,100,000

Non-current Asset
PPE 2 7,150,000
Long-term Investment 3 300,000
Intangible 4 300,000
TOTAL 7,750,000

TOTAL ASSETS 9,850,000

LIABILITIES
Current Liabilities
Trade & Other Payables 5 550,000
Notes Payable, short-term 450,000
TOTAL 1,000,000

Non-current Liabilities
Notes Payable, long-term 300,000
Bonds Payable 6 1,900,000
TOTAL 2,200,000

SHAREHOLDER'S EQUITY
Share Capital 7 2,750,000
Reserves 8 1,450,000
Retained Earnings 2,450,000
TOTAL 6,650,000
TOTAL LIABILITIES & SHE: 9,850,000

Reserves
- Share Premium +
APPROPRIATED
retained earnings
Note 1 - FAFVPL 690,000
Less: treasury shares acquired at cost -250,000
TOTAL 440,000

Note 2 - Trade & Other Receivables

Accounts Receivables 750,000
Less: Allowance for doubtful accounts -50,000
TOTAL 700,000

Note 3 - PPE
Land 500,000
Building in Process 5,000,000
Machinery and Equipment 1,500,000
Less: Acc. Depreciation -300,000
TOTAL 6,700,000

Note 4 - Intangiblle Asset

Patent 200,000

Note 5 - Trade & Other Payables

Accounts Payable 900,000
Accrued Interest on bonds payable 50,000 (2,000,000 x 10% x 3/12)
Accrued Expenses 150,000
Liability for loss on lawsuit 100,000
TOTAL: 1,200,000

Note 6 - Bonds Payable

Bonds Payable 2,000,000
Less: Discount on Bonds Payable -200,000
TOTAL 1,800,000

Note 7 - Reserves
RE appropriated for contingencies 250,000

Note 8 - Retained Earnings

Unappriated balance 4,000,000
Add: Cancellation of appropriation
for contingencies 150,000
Total: 4,150,000

Less:
Accrued Interest on bonds 50,000
Appropriated for treasury stocks 250,000
Actual loss on lawsuit 100,000
Total: -400,000
TOTAL UNAPPROPRIATED RE 3,750,000
Note 1 - Cash & Cash Equivalents
Cash 500,000
Money market instruments 200,000
TOTAL 700,000

Note 2 - Trade & Other Receivables

Accounts Receivable 750,000
Less: AFDA -50,000
TOTAL 700,000

Note 3 - Prepaid Expenses

Store supplies 50,000

Note 4 - PPE
Land 400,000
Building 3,500,000
Less: Acc. Depreciation - Bldg -500,000 3,000,000
Equipment 1,000,000
Less: Acc. Depreciation - Equip. -250,000 750,000
TOTAL 4,150,000

Note 5 - Long-term Investments

Financial assets at amortized cost 1,000,000

Note 6 - Investment Property

Land held for undetermined use 500,000

Note 7 - Intangible Assets

Patent 250,000
Trademark 300,000
TOTAL 550,000

Note 8 - Other noncurrent assets

Advances to officers, indefinite repayment 150,000
Restricted Foreign deposit 300,000
TOTAL 450,000

Note 9 - Trade & Other Payables

Accounts Payable 500,000
Notes Payable, due Dec. 31, 2020 100,000
Income Tax Payable 150,000
Unearned leasehold income, current 70,000 (starting 2020)
Stock dividend payable 150,000
TOTAL 970,000
Note 10 - Reserves
Share premium 250,000
RE appropriated for plant expansion 500,000
RE appropriated for treasury, at cost 300,000
TOTAL 1,050,000

Note 11 - Retained Earnings

Unappropriated balance 1,500,000
Less: Appropriated for Treasury shares -300,000
TOTAL 1,200,000

Note 1 - Trade & Other Receivable

Accounts Receivable 750,000
Less: AFDA -50,000
TOTAL 700,000

Note 2 - PPE
Land 1,250,000
Land for future plant site 1,500,000
Building 5,000,000
Less: Acc. Depreciation - Bldg -1,600,000 3,400,000
Equipment 1,400,000
Less: Acc. Depreciation - Equip. -400,000 1,000,000
TOTAL 7,150,000

Note 3 - Long-term investment

Investment in securities, long-term 250,000
(!!!) pls remember na
Cash surrender value of life 50,000 part siya ng LONG-
insurance contract TERM INVESTMENT
TOTAL 300,000

Note 4 - Intangible
Franchise 100,000
Goodwill 200,000
TOTAL 300,000

Note 5 - Trade & Other Payables

Accounts Payable 400,000
Taxes Payable 150,000
TOTAL 550,000

Note 6 - Bonds Payable

Bonds Payable 2,000,000
Less: Discpunt on Bonds Payable -100,000
TOTAL 1,900,000
 Note 7 - Share Capital
Preference share capital, P5 stated value
300,000 authorized and 150,000 issued 750,000 (5 x 150,000)

Ordinary share capital, P20 par value

400,000 authorized and 100,000 issued 2,000,000 (20 x 100,000)
TOTAL 2,750,000

Note 8 - Reserves
ves Share Premium - PS 250,000 (1,000,000 - 750,000)
re Premium +
OPRIATED Share Premium - OS 1,000,000 [(P30 issue price x
ed earnings RE appropriated for contingency 200,000 100,000) - (P20 par
TOTAL 1,450,000 value x 100,0000]

Share Premium = issue price - par value

(i.e. issue/market/selling)
(i.e par/nominal/face/stated)
 remember na
a ng LONG-
NVESTMENT
 (5 x 150,000)

(20 x 100,000)

0 - 750,000)
ssue price x
0) - (P20 par
x 100,0000]

mium = issue price - par value

/market/selling)
ominal/face/stated)