Problem 1-3 (AICPA Adapted)

Petite Company reported the following current assets on December

31 , 2016:

Cash 5,000,000
Accounts receivable 2,000,000
Inventory, including goods received on
Consignment P200,000 800,000
Bond investment at fair value through
other comprehensive income 1,000,000
Prepaid expenses, including including a deposit of P50,000
made on inventory to be delivered in 18 months 150,000

Total current assets 8,950,000

Cash in general checking account 3,500,000

Cash fund to be used to retire bonds payable in 2018 1,000,000
Cash held to pay value added taxes 500,000

Total cash 5,000,000

What total amount of current assets should be reported on December 31, 2016?

Problem 1-4 (AICPA Adapted)

Rice Company was incorporated on January 1, 2016 with P5,000,000 from the issuance of share capital
and borrowed funds of P1,500,000. During the first year, net income was P2,500,000.

On December 15, the entity paid a P500,000 cash dividend. On December 31, 2016, the liabilities had
increased to P1,800,000.

On December 31, 2016, what amount should be reported as total assets?