Barcelona, Joyce Ann A.

FMA-3A

INACC 3

PROBLEM 1:

CURRENT ASSETS

Cash P84,000
Accounts Receivable, net 70,000
Advances to Suppliers 12,000
Inventory 90,000
Prepaid Assets 6,000
Land Held for Sale 56,000
Total Current Assets P318,000

NON-CURRENT ASSETS

PPE P100,000
Prepaid Income Tax 16,000
Sinking Fund 4,000
Investment in Subsidiary 20,000
Security Deposit 4,000
Total Non-Current Assets P144,000

CURRENT LIABILITIES

Accounts Payable P103,000

Advances from customers 6,000
Interest Payable on Notes payable 10,000
Total Current Liabilities P119,000
NON-CURRENT LIABILITIES

Notes Payable P200,000

Total Non-Current Liabilities P200,000

Balancing Equity-Assumed Figure 143,000

Total Assets P462,000 Total Liabilities and Owners Equity P462,000

Working Capital Computation

Total Current Assets P318,000
WC (Gross) 318,000
Less: Current Liabilities 119,000
Net Working Capital P199,000

PROBLEM 2:

a) How much is the total noncurrent liabilities as of January 1, 2021?

Current Assets, P1,200,000

Add: Non-current Assets, 4,000,000
Total Assets P5,200,000
Less: Total Equity (1,700,000)
Total Liabilities P3,500,000
Less: Current Liabilities (900,000)
TOTAL NON-CURRENT LIABILITIES P2,600,000

b) How much is the total current assets as of December 31, 2021?

Current Assets, January 1,2021 P1,200,000

Less: Current Liabilities, January 1,2021 (900,000)
Working Capital, January 1,2021 P300,000
X2 2
Working Capital, December 31,2021 P600,000

Working Capital, Dec 31,2021 P600,000

Add: Current Liabilities, Dec 31,2021 1,000,000
TOTAL CURRENT ASSETS, Dec 31,2021 P1,600,000

c) How much is the total noncurrent assets as of December 31, 2021?

Total Equity, Jan 1, 2021 P1,700,000

Add: Profit for the Year 2,400,000
Total P4,100,000
Less: Dividends declared (1,000,000)
Total Equity, Dec 31,2021 P3,100,000

Total Equity, Dec 31,2021

Add: Total Liabilities
Current Liabilities, Dec 31,2021 P1,000,000
Non-current Liabilities, Dec 31,2021 3,000,000 4,000,000
Total Assets, Dec 31,2021 P7,100,00
Less: Current Assets, Dec 31,2021 (1,600,000)
TOTAL NON-CURRENT ASSETS, Dec 31,2021 P5,500,000
PROBLEM 3:

Leong Corporation
Statement of Financial Position
As of December 31, 2012

Assets
Cash P30,000
Inventory 102,000
Supplies 1,860
Prepaid Advertising 5,000
Total Current Assets P138,860

Property, plant and equipment:

Land P137,320
Buildings 80,400
Less: Accumulated Depreciation- Buildings (15,000)
Equipment 40,000
Less: Accumulated Depreciation- (10,000)
Equipment
Total Property, plant and equipment 232,720
TOTAL ASSETS P371,580

Liabilities and Shareholder’s Equity

Notes Payable P14,400
Taxes Payable 3,000
Salaries and Wages payable 900
Interest Payable 600
Total Current Liabilities 18,900
Bonds Payable 78,000
Total Non-current liabilities 78,000
Total Liabilities P96,900
Share Capital-ordinary 60,000
Retained Earnings 214,680
Total Shareholder’s Equity 274,680
TOTAL LIABILITIES AND P371,580
SHAREHOLDER’S EQUITY
PROBLEM 4:

Henderson Manufacturing Company

Statement of Financial Position
As of December 31, 2022

Assets
Cash and Cash equivalents P3,600
Accounts Receivable 3,800
Inventories:
Raw Materials and Work in Process P3,200
Finished Goods 5,000 8,200
Prepaid expenses 2,400
Total Current Assets 18,000

Property, plant and equipment:

Equipment 18,000
Less: Accumulated depreciation (8,000)
Net Property, plant and equipment 10,000

Intangibles:
Franchise 12,000
TOTAL ASSETS P40,000

Liabilities and Shareholder’s Equity

Accounts Payable P6,200
Interest Payable 400
Deferred Revenue 1,600
Current maturities of long-term debt 800
Total Current Liabilities 9,000

Long-term Liabilities:
Deferred Revenue 800
Notes Payable 7,200
Bonds Payable 7,000 15,000
Total Liabilities 24,000
Shareholder’s Equity
Ordinary Shares 10,000
Retained Earnings 6,000
Total Shareholder’s Equity 16,000
TOTAL LIABILITIES AND P40,000
SHAREHOLDER’S EQUITY
Solve for missing amounts:

 Liabilities  Equity = 1.5

P24,000  Equity = 1.5
Equity = P24,000  1.5 = P16,000

 Beginning retained earnings + net income – dividends = Ending retained

earnings
P4,30 + 2,500 – 800 = P6,000

 Total equity – retained earnings = Ordinary shares

P16,000 - 6,000 = P10,000

 Assets = Liabilities + equity

Assets = P24,000 + 16,000 = P40,000

 P40,000 – all other assets = Franchise

P40,000 –28,000 = P12,000
PROBLEM 5:

Libby Corporation
Balance Sheet
December 31, 2022

Assets
Cash P22,500
Accounts receivable P30,000
Less: Allowance for uncollectible accounts 7,500 22,500
Inventories 100,000
Prepaid insurance 4,500
Total current assets P149,500
Investments 55,000
Property, plant, and equipment:
Land 45,000
Buildings 140,000
Equipment 132,500
317,500
Less: Accumulated depreciation 80,000
Net Property, plant, and equipment 237,500
Intangibles:
Patents 5,000
Total assets P447,000

Liabilities and Shareholders' Equity

Current liabilities:
Accounts payable $37,500
Notes payable, due 2019 65,000
Interest payable 10,000
Total current liabilities 112,500
Long-term liabilities:
Bonds payable, due 2028 120,000
Total liabilities P232,500
Shareholders' equity:
Common stock, no par, 20,000 shares
authorized, issued, and outstanding P150,000
Retained earnings 64,500
Total shareholder's equity P214,500
Total liabilities and shareholders' equity P447,000