REQUIRED 1 Outstanding number of common shares as of December 31, 2026

2 Outstanding number of preference shares as of December 31, 2026

3 Cash dividends declared and paid to common stockholders in 2024, 2025 and 2026
4 Journal entries related to equity from 2024 to 2026

ANSWER 1 252,800.00
2 16,000.00
3 326,400.00 2024
1,305,600.00 2025
1,137,600.00 2026
4 below solution

SOLUTION
1 Ordinary Shares 2 Preferred Shares
40,000.00 20,000.00
1,600.00 (4,000.00)
41,600.00 16,000.00
40,000.00
81,600.00
163,200.00
244,800.00
8,000.00
252,800.00

Dividends, Dec. 31, 2024 81,600.00

Shareholders 4.00
3 CASH DIVIDENDS, 2024 326,400.00

Dividends July 1, 2025 489,600.00

Dividends, Dec. 1, 2025 816,000.00
CASH DIVIDENDS, 2025 1,305,600.00

Dividends, July 1, 2026 632,000.00

Dividends, Dec. 1, 2026 505,600.00
CASH DIVIDENDS, 2026 1,137,600.00

ENTRIES 4 2024
Particulars Debit Credit

Retained Earnings 326,400.00

Dividends payable 326,400.00
Dividends payable 326,400.00
Cash 326,400.00

2025
Particulars Debit Credit

Retained Earnings 1,305,600.00

Dividends payable 1,305,600.00

Dividends payable 1,305,600.00

Cash 1,305,600.00

2026
Particulars Debit Credit

Retained Earnings 1,137,600.00

Dividends payable 1,137,600.00

Dividends payable 1,137,600.00

Cash 1,137,600.00
2025 and 2026
REQUIRED 1 Common stock
2 Additional paid-in capital
3 Retained earnings
4 Treasury stock
5 Journal entries

ANSWER 1 40,320,000.00
2 9,049,500.00
3 4,765,350.00
4 85,500.00
5 below solution

SOLUTION
Ordinary Shares APIC Retained earnings
1-Jan 5,400,000.00 540,000.00 810,000.00
15-Jan
15-Feb 9,000,000.00 2,250,000.00
25-Feb 9,000,000.00 1,800,000.00
Apr-31 2,700,000.00 270,000.00 2,970,000.00
30-Jun 14,400,000.00 3,600,000.00
15-Jul 580,500.00
15-Oct (180,000.00) 9,000.00
1-Dec (214,650.00)
Net income 20x6 1,200,000.00
BALANCES, 20X6 1 40,320,000.00 2 9,049,500.00 3 4,765,350.00

ENTRIES 5 Particulars Debit Credit

Treaury Stocks 513,000.00

Cash 513,000.00

Cash 11,250,000.00
Share Capital 9,000,000.00
Share Premium 2,250,000.00

Cash 10,800,000.00
Ordinary Share Capital 9,000,000.00
Share Premium - Ordinary Shares 1,800,000.00

Retained Earnings 2,970,000.00

Share Dividends Payable 2,700,000.00
Share Premium 270,000.00
Cash 18,000,000.00
Share Capital 14,400,000.00
Share Premium 3,600,000.00

Cash 180,000.00
Treasury Stocks 171,000.00
Share Premium - Treasury Stocks 9,000.00

Retained Earnings 214,650.00

Dividends Payable 214,650.00

Income Summary 1,200,000.00

Retained Earnings 1,200,000.00

45,127,650.00 45,127,650.00
 Treasury stock Total
- 6,750,000.00
513,000.00 513,000.00
11,250,000.00
10,800,000.00
2,970,000.00
18,000,000.00
(256,500.00) 324,000.00
(171,000.00) (180,000.00)

4 85,500.00
REQUIRED 1 If the necessary adjusting journal entry is made regarding the case of Concordia, the net income will incr
2 The effect on 2017 net income of Lukas Company of its failure to record the CM involving transaction wit
3 The overstatement of receivable from Lazaro is
4 The accounts receivable from Silang is under (over) stated by how much
5 The adjusting entry to correct the receivable from Yakal is

ANSWER 1 (18,000.00)
2 30,000.00
3 48,000.00
4 no effect
5 below solution

SOLUTION
Sales 150,000.00
Cost of Sales (120,000.00)
Gross Profit 30,000.00
Sales 60,000.00
Cost of Sales (48,000.00)
Gross Profit (12,000.00)
1 DECREASE IN NET INCOME 18,000.00

Unadjusted Accounts Receivable 144,000.00

Adjusted Accounts Receivable (96,000.00)
2 OVERSTATEMENT 48,000.00

ENTRIES 5 Particulars Debit Credit

Accounts Payable 135,000.00

Accounts Receivable 135,000.00
he case of Concordia, the net income will increase (decrease) by
ure to record the CM involving transaction with Falcon:

by how much
REQUIRED 1 The amount to be reported as noncurrent receivables in the balance sheet at December 31, 2021, is
2 The current portion of notes receivable on December 31, 2021, should be
3 The accrued interest receivable on December 31, 2021, should be
4 On December 31, 2021, the unamortized discount on note receivable from sale of machinery should be.
5 The total interest income for the year ended December 31, 2021, should be

ANSWER 1 8,602,991.00
2 1,524,805.00
3 468,000.00
4 772,204.00
5 806,996.00

SOLUTION
Notes Receivable (Plant) 4,000,000.00
Installment (1,000,000.00)
Notes Receivable (Officer)
PV note (June 30) 3,088,800.00
Amortized Discount 138,996.00
Note Receivable (License) 2,400,000.00
Carrying Amount (524,805.00)
1 NONCURRENT RECEIVABLES

Notes receivable from sale of plant 1,000,000.00

Notes receivable from sale of license 524,805.00
2 CURRENT PORTION OF NONCUURENT RECEIVABLES 1,524,805.00

Notes Receivable (Plant) 360,000.00

Note Receivable (License) 108,000.00
3 ACCRUED INTEREST RECEIVABLE 468,000.00

Unearned interest 911,200.00

Amortization 138,996.00
4 UNAMORTIZED DISCOUNT 772,204.00

Interests of 150,000.00
Notes Receivable (Plant) 360,000.00
Notes Receivable (Officer) 50,000.00
Notes Receivable (Machinery) 138,996.00
Note Receivable (License) 108,000.00
5 INTEREST INCOME 806,996.00
5
eet at December 31, 2021, is

rom sale of machinery should be.

3,000,000.00
500,000.00

3,227,796.00

1,875,195.00
8,602,991.00
REQUIRED 1 How much is the total outstanding checks as of July 31?
2 How much is the deposit in transit as of July 31?
3 What is the correct cash in bank balance as of July 31?
4 AHow
cashmuch is themay
shortage cashbeinconcealed
bank shortage as of June funds
by transferring 31? from one location to another or by converting ne
5
a Simultaneous verification
b Simultaneous confirmations
c Simultaneous bank reconciliations
d Simultaneous surprise cash count

ANSWERS 1 41,820.00
2 30,000.00
3 20,940.00
4 (2,000.00)
5
a Simultaneous verification
b Simultaneous confirmations
c Simultaneous bank reconciliations
d Simultaneous surprise cash count

SOLUTION

Books Bank
Beginning balances 140,330.00 172,590.00
Deposits 751,680.00
Cash receipt journal 763,680.00
Checks clearing the bank (708,450.00)
Cash disbursements journal (645,330.00)
July bank service charge (2,610.00)

Note paid by the bank (183,000.00)

NSF check (9,330.00)

ENDING BALANCES 258,680.00 20,880.00

Deposit in Transit, Beginning 18,000.00

Book Debits 763,680.00
Total 781,680.00
Bank Credits 751,680.00
2 DEPOSIT IN TRANSIT, ENDING 30,000.00

Outstanding Checks, Beginning 52,260.00

Book Credits 881,070.00
Total 933,330.00
 Bank Debits 891,510.00
1 OUTSTANDING CHECKS, ENDING 41,820.00
another or by converting negotiable assets to cash. Because of this, which of the following is vital?

BOOK
June 31 Dr Cr
Unadj Bal 140,330.00 763,680.00 881,070.00
Credit Memo
Total 140,330.00 763,680.00 881,070.00
Debit Memo
Adj Bal 140,330.00 763,680.00 881,070.00

BANK
June 31 Cr Dr
Unadj Bal 172,590.00 751,680.00 891,510.00
Deposit in Transit 18,000.00
Total 190,590.00 751,680.00 891,510.00
Outstanding Checks 52,260.00
Adj Bal 138,330.00 751,680.00 891,510.00
140,330.00
Cash In Bank Shortage (2,000.00) 4
July 31
22,940.00

22,940.00

22,940.00
2,000.00

July 31
32,760.00
30,000.00
62,760.00
41,820.00
20,940.00 3
REQUIRED How much should the cash and cash equivalents be reported in the 2015 FS?

ANSWER 1 29,440,000.00

SOLUTION Particulars Cash & Cash Equivalents

Cash on Hand
Check Payable (80,000.00)
Cash in Bank - Current Account
Check , Jan. 15, 2016 240,000.00
Check, Dec. 31, 2015 160,000.00
Cash in Bank - Savings Account
Restricted - in Escrow (1,360,000.00)
Restricted - Compensating Balance (1,000,000.00)
Cash in Bank - Unrestricted Dollar per Trial Balance
Cash in Money Market Account
Treasury Bill
Redeemable Preference Shares
TOTAL CASH & CASH EQUIVALENTS
he 2015 FS?

Cash & Cash Equivalents

320,000.00

1,800,000.00

5,640,000.00

16,000,000.00
1,000,000.00
3,200,000.00
1,480,000.00
29,440,000.00 1