Balance Sheet – Problems

1. Nami Company has the following items: common stock, P720,000; treasury stock, P85,000;
deferred taxes, P100,000 and retained earnings, P313,000. What total amount should Nami
Company report as stockholders’ equity?
a. P848,000.
b. P948,000.
c. P1,048,000.
d. P1,118,000.

Solution: 720,000 + 313,000 – 85,000 = 948,000

2. Sinner Company provided the following information at December 31, 2019

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Cash 2,750,000

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Accounts Receivable 2,150,000

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Financial asset held for trading 1,500,000

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Inventory, including goods received on consignment P320,000 1,820,000

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Deferred Tax Asset 790,000

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What amount of current assets should be reported on December 31, 2019?
a. 7,700,000 b. 7,900,000 c. 8,100,000 d. 8,200,000
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Cash 2,750,000
Accounts Receivable 2,150,000
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Financial asset held for trading 1,500,000

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Inventory (1,820,000 – 320,000) 1,500,000

Total Current Assets 7,900,000
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3. NSTP Incorporation reported the following current asset for the year 2019:
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Cash PHP 7,350,000

Accounts Receivable 7,650,000
Notes Receivable, net of discounted note PHP 350,000 2,450,000
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Inventory 5,200,000
Defered Charges 1,500,000
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PHP 24,150,000
Accounts Receivable compromised the following:
Trade Accounts Receivable PHP 4,630,000
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Allowance for doubtful accounts ( 350,000)

Claim against shipper for goods lost in transit 370,000
Selling Price of NSTP Incorporation Unsold

goods sent to ART Company on consignment

at 150% of cost and excluded from NSTP

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 Incorpotation inventory 3,000,000
PHP 7,650,000
What amount should be reported as total current assets for the year 2019?
a. PHP 21,700,000
b. PHP 21,650,000
c. PHP 19,950,000
d. PHP 20,800,000

Solution:
Cash PHP 7,350,000
Accounts Receivable 4,630,000
Allowance for Doubtful Accounts ( 350,000)
Notes Receivable 2,450,000
Claim Recievable 370,000
Inventory ( PHP 5,200,000 + ( 3,000,000/150%)) 7,200,000
Total Current Assets PHP 21,650,000

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4) Times New Roman Company reported the following liability account balances

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on December 31, 2019:

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Accounts payable, net of creditors' debit 1,500,000
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balances P200,000
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Accrued expenses 725,000
Bonds payable due on December 31, 2020 775,000
Bonds payable due on December 31, 2021 855,000
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Deferred tax liability 320,000

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Income tax payable 545,000

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Notes payable due on January 1, 2022 1,150,000

What total amount of current liabilities should be reported on December 31, 2019?
a. 3,755,000
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b. 3,735,000
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c. 3,745,000
d. 3,775,000
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Accounts payable 1,700,000

Accrued expenses 725,000
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Bonds payable 775,000

Income tax payable 545,000
Total current liabilities 3,745,000
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5. The following information belongs to Aubrey Company's on September 30, 2022

Cash including sinking fund of 150,000. 795,000
Accounts receivable, net 1,215,000
Notes Receivable. 2,225,000
Notes Receivable Discounted 425,000
Inventory. 4,585,000

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 Prepaid Expense. 935,000
How much current asset should be shown in the balance sheet on September 30, 2022?
A. P 9,100,000
B. P 9,810,000
C. P 9,080,000
D. P 9,180,000

Solution
Cash including (795,000-150,000). 645,000
Accounts receivable, net 1,215,000
Notes Receivable. 2,225,000
Notes Receivable Discounted (425,000)
Inventory. 4,585,000
Prepaid Expense. 935,000
Current Asset. 9,180,000

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