Problem 1-5 (AICPA Adapted)

Mirr Company was incorporated on January 1, 2016 with proceeds from the issuance of P7,500,000 in
share capital and borrowed funds of P1,100,00. During the first year, revenue from sales and consulting
amounted to P8,200,000, and operating costs and expenses totaled P6,400,000.

On December 15, 2016, the entity declared a P300,000 dividend, payable to shareholders on January
15,2017. The liabilities increased to P2,000,000 by December 31,2016.

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

Problem 1-6 (AICPA Adapted)

Arabian Company reported the following current assets on December 31,2016:

Cash 4,500,000
Accounts Receivable 7,500,000
Notes Receivable, net of discounted note P500,000 2,000,000
Inventory 4,000,000

18,000,000

An analysis disclosed that accounts receivable compromised the following:

Trade accounts receivable 5,000,000

Allowance for doubtful accounts (500,000)
Selling price of Arabian Company’s unsold goods sent
to Tar Company on consignment at 150% of cost
and excluded from Arabian’s ending inventory 3,000,000

7,500,000

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

Problem 1-7 (AICPA Adapted)

On December 31, 2016, Statute Company reported the following current assets:

Cash 700,000
Accounts Receivable 1,200,000
Inventory 600,000

An examination of the accounts receivable revealed the following:

Trade accounts 930,000

Allowance for doubtful accounts (20,000)
Claim against shipper for goods lost in transit 30,000
Selling prices of unsold goods sent out on
consignment at 130% of cost and not included
 In ending inventory 260,000

Total accounts receivable 1,200,000

What is the correct amount of current assets on December 31, 2016?