Gabriel T.

Soniel
IA3
COA 2E

22-16
2019
Historical Fraction Restated
Cash 3,000,000 200/120 5,000,000
Inventory 2,200,000 200/110 4,000,000
Equipment (net) 1,500,000 200/100 3,000,000
Land 11,200,000 21,000,000

Current Liability 1,500,000 200/120 2,500,000

Non current liability 6,000,000 200/120 10,000,000
Share Capital 3,000,000 200/100 6,000,000
Retained earnings 700,000 2,500,000
11,200,000 21,000,000

Historical Fraction
Sales 8,000,000 200/160
COGS:
Inv. Jan 1 2,200,000
Purchases 5,200,000
Goods available for sale 7,400,000
Inv. Dec 31 3,000,000
Cost of Sales 4,400,000
Gross Income 3,600,000
Gain on purchasing power -
Total Income 3,600,000
Expenses:
Distribution and Administrative 1,700,000 200/160
Depreciation 100,000 200/100
Total 1,800,000
Income before tax 1,800,000
Income tax 500,000 200/160
Net income 1,300,000
Add: Retained earnings Jan 1 700,000
Total 2,000,000
Less: Dividend 350,000 200/200
Retained Earnings Dec 31 1,650,000

Net monetary liabilities 12/31/19:

Cash 5,000,000
Current liabilities - 2,500,000
 Non current liabilities - 10,000,000
Net monetary liabilities 12/31/19 - 7,500,000
Increase in monetary assets, 2020:
Sales 10,000,000
Total 2,500,000
Decrease in monetary assets, 2020
Purchases 6,500,000
Selling and administrative 2,125,000
Income Tax 625,000
Dividend 350,000 9,600,000
Net monetary Liabilities 12/31/20, Restated - 7,100,000
Less: Net monetary Liabilities 12/31/20, Cost
Cash 4,250,000
Current liabilities - 2,000,000
Non current liabilities - 6,500,000 -4250000
Gain on purchasing power 2850000

23-12

Legaspi Company
Income Statement
Year Ended 12/31/20

Sales
COGS
Gross Income
Other Income:
Realized holding gain 330,000
Unrealized Holding gain 1,340,000
Total Income
Operating Expenses:
Expenses 700,000
Depreciation 130,000
Income Before Tax
Less: Income Tax
Net Income

Legaspi Company
Statement of Financial Position
12/31/20

Assets
Current Assets:
Cash 500,000
 Accounts Receivable 600,000
Inventory 1,000,000 2,100,000
Noncurrent Assets:
Land 1,500,000
Equipment 1,600,000
Less: Accumulated Depreciaton 160,000 1,440,000 2,940,000
Total Assets 5,040,000

Liabilities and Shareholder's Equity

Current Liabilities
Accounts Payable 500,000
Notes Payable 400,000
Income Tax Payable 350,000 1,250,000
Shareholder's Equity
Share Capital 2,000,000
Retained Earnings:
Net income 1,990,000
Dividends - 200,000 1,790,000 3,790,000
Total liabilities and shareholder's equity 5,040,000

Solution
Cost of Goods Sols
Ave. Current cost 3,500,000
Historical cost 3,200,000
Realized holding gain 300,000

Inventory Dec 31
Ave. Current cost 1,000,000
Historical cost 900,000
Unrealized holding gain 100,000

Land
Ave. Current cost 1,500,000
Historical cost 800,000
Unrealized holding gain 700,000

Depreciation on average current cost 130,000

Depreciation on historical cost 100,000
Realized holding gain 30,000

Net Current Cost:

Current cost 1,600,000
Accumulated Depreciation - 160,000 1,440,000
Carrying Amount:
Historical Cost 1,000,000
 Accumulated Depreciation - 100,000 900,000
Unrealized Holding Gain 540,000
 2020
Historical Fraction Restated
4,250,000 4,250,000
3,000,000 200/160 3,750,000
1,400,000 200/100 2,800,000
13,150,000 19,800,000

2,000,000 2,000,000
6,500,000 3,500,000
3,000,000 200/100 3,000,000
1,650,000 5,300,000
13,150,000 19,800,000

Restated
10,000,000

4,000,000
6,500,000
10,500,000
3,750,000
6,750,000
3,250,000
2,850,000
6,100,000

2,125,000
200,000
2,375,000
3,775,000
625,000
3,150,000
2,500,000
5,650,000
350,000
5,300,000
5,000,000
3,500,000
1,500,000

1,670,000
3,170,000

830,000
2,340,000
350,000
1,990,000