PROBLEM 1 PROBLEM 2

Inventory Accounts Payable Net Sales

Unadjusted ₱ 1,250,000 ₱ 1,000,000 ₱ 9,000,000 Balances
A (165,000) (165,000) - a
B (20,000) - - b
C - - 40,000 c
D 210,000 - - d
E 25,000 25,000 - Adjusted
Adjusted ₱ 1,300,000 ₱ 860,000 ₱ 9,040,000
Physical Inventory Purchases up to May 31, 2021 Purchases up to June 30,2021
950,000 6,750,000 8,000,000
- 75,000 -
- (10,000) (15,000)
- (20,000) (20,000)
(55,000) (55,000) -
895,000 6,740,000 7,965,000
Inventory, July 1,2020 875,000
Goods Available for Sale 6,740,000
Goods Available for Sale 7,615,000
Inventory, May 31,2021 (895,000)
Cost of Goods Sold 6,720,000

Sales up to May 31,2021 8,400,000

Cost of Goods Sold (6,720,000)
Gross Profit 1,680,000

Gross Profit Rate (1,680,000/8,400,000) 20%

Cost Ratio (100%-20%) 80%
Sales for June,2021 (9,600,000-8,400,000) 1,200,000
Cost of Goods Sold with profit (1,100,000x80%) 880,000
Cost of Goods sold without protfit 100,000
Cost of Goods sold during June,2021 ₱ 980,000

Inventory, July 1,2020 875,000

Purchases up to June 30,2021 7,965,000
Goods Available for Sale 8,840,000
Less: Cost of Goods Sold
Sales with profit (9500,000x80%) 7,600,000
Sales without profit 100,000 7,700,000
Inventory, June 30,2021 ₱ 1,140,000
PROBLEM 3 PROBLEM 4
Cost Retail 1
Inventory, beginning ₱ 1,650,000 ₱ 2,200,000
Net Purchases 3,725,000 4,950,000
Departmental transfer-credit (200,000) (300,000)
Net Mark-up - 150,000 2
Markdown (500,000-400,000) - (100,000)
Goods available for sale (75%) ₱ 5,175,000 ₱ 6,900,000

Sales (4,000,000) PROBLEM 5

Inventory shortage- sales price (100,000)
Employee Discounts (200,000)
Inventory- December 31 ₱ 2,600,000

Average Cost (2,600,000x75%) ₱ 1,950,000

Problem 6
Fair value of Prince (recipient) ₱ 900,000
Less: Cash received 750,000
Cost of new asset received in exchange ₱ 150,000

Fair value of Albert (payor) ₱ 150,000

Add: Cash Payment 750,000
Cost of new asset received in exchange ₱ 900,000

Fair value of bonds payable (600,000x102) ₱ 612,000

Fair value of shares (40,000x19) 760,000
Total cost of Land ₱ 1,372,000

Cash price ₱ 950,000

Installation Cost 30,000
Total Cost ₱ 980,000
PROBLEM 7
Land Building
Land Purchase Price 2,500,000 -
Payment of deliquent property taxes 100,000 -
Title search and insurance 50,000 -
Assessment for City improvement on water and sewer 150,000 -
Building Permit - 30,000
Cost to destroy wxisting building on land 50,000 10,000
Contract cost of new building - 7,000,000
Architect fee - 200,000
Sidewalk and parking lot - -
Total Cost ₱ 2,850,000 ₱ 7,240,000
 PROBLEM 8
Land Improvements
- 1 Cash paid
- Removal of old building
- Payment of tenants
- Fee for title search
- Survey before construction
- Assessment for drainage project
- Cost of grading, leveling, and landfill
- Total Cost of Land
100,000
₱ 100,000 2 Architect Fee
Building Permit
Excavation
New Building Constructed
Driveways and walks to building
Temporary quartes for crew
Temporary building to house tools and materials
Cost of construction changes
Total cost of new building

3 Cost of trees, shrubs and other landscaping

New fence surrounding building
Total cost of land improvement
₱ 1,000,000
50,000
15,000
10,000
20,000
5,000
45,000
₱ 1,145,000.00

₱ 200,000
30,000
100,000
6,000,000
40,000
80,000
60,000
50,000
₱ 6,560,000

₱ 70,000
200,000
₱ 270,000
PROBLEM 9
Acquisition cost ₱ 26,400,000
Development cost 3,600,000
Estimated restoration cost at present value 1,800,000
Total cost 31,800,000
Residual value (3,000,000)
Depletable amount for the current year ₱ 28,800,000

Rate per unit (28,800,000/1,200,000) 24

Depletion, ending (80,000x24) ₱ 1,920,000

Depletion included in cost of goods sold (60,000x24) ₱ 1,440,000

PROBLEM 10
Acquisition cost ₱ 10,000,000
Residual value (3,000,000)
Depletable amount 7,000,000
Accumulated Depreciation- Jan 1,2018 (4,000,000x0.70) (2,800,000)
Remaining depletable amount- January 1,2018 4,200,000

Original depletion rate (7,000,000/10,000,000) 0.70

New Depletion Rate (4,200,000/7,500,000) 0.56

Depletion for 2018 (1,500,000x0.56) ₱ 8,400,000

PROBLEM 12

Retained Earnings
Add: Accumulated Depletion
Total
Less: Capital liquidated in prior years 18,750,000
Unrealized depletion in ending inventory (50,000x P25 per unit) 1,250,000
Maximum dividend
 12,500,000
25,000,000
37,500,000

20,000,000
₱ 17,500,000