FINANCIAL ACCOUNTING AND REPORTING _ VALIX/SIY/VALIX/ESCALA/SANTOS/DELA CRUZ 1, Indicate whether monetary or nonmonetary: Cash in bank Monetay Accounts receivable morejay Allowances for doubtful accounts Moseiay Advances to employees Morekay Advances to suppliers ADtcn¢iay Inventory Aommoretay Financial asset at fair value 1m: Financial asset at amortized cost Moneiay Prepaid expense A0moncicay Patent Mrmoneny Accounts payable Worefay Accrued expenses “aieiay Uneamed revenue *2”moneiay Advances from customers lcroneiy Estimated warranty liability #9m0reiay Bonds payable toneiay Finance lease liability oneioy Deferred tax liability vonmontay Share capital *minveiew Retained eamings Nonne/ay 2. Anentity operates in a hyperinflationary economy and provides the following statement of financial position on December 31, 2020: Property, plant and equipment Inventory Cash Noncurrent liabilities Current liabilities Share capital issued December 31, 2016 Retained earings 900,000 2,700,000 350,000 500,000 700,000 400,000 2,350,000 The price index numbers on December 31 of each year are 2016 — 100, 2017 — 130, 2018 - 150, 2019 — 240 and 2020 — 300. ‘The property, plant and equipment were purchased on December 31, 2018. The noncurrent liabilities were loans raised on December 31, 2018. What is the balance of retained earnings on December 31, 2020 aftr Raeaie roecsisond i 130m 2,350,000 ee Inventoy (24M x. f2.0nen nam b. '2:750,000""! ming Cam x Fa ©. 3,550,000 a) © corr "ho) Jan 4. 2,625,000 "PE (ane pe ay aN , ie Toa) eset P51 = parm 3. An entity operating ina hypetinflationary economy provided the following data rs Before restatement After restatement Liabilities 2,000,000 2,500,000 Share capital 5,000,000 8,500,000 Revaluation surplus 1,000,000 Retained earnings 1,500,000 2 Total liabilities and equity 9,500,000 1, What amount should be reported as retained earnings? ‘a 3,500,000 TAI abner 8 keuily Pll. b. 15,000,000. Vaotty (27,00) ©. 1,000,000 ng ane) aaa 4. 0 a ram 2. What amount should be reported as revaluation surplus? a. 1,000,000 b. 2,500,000 ©. 6,000,000 4. 0 Ay rucrnon curpur $a! are In proviour pends Jt ehminatise 67734, An entity provided the following information during 2020: uy Inventory ~ January 1 1,650,000 x “0 Purchases 4,000,000 * “0/2 Inventory - December 31 2°500.000 * 4/20 ‘The relevant index numbers are 120 on January 1, 2020, 280 on December 31, 2020, and the av. index number for 2019 is 110. 120" - ay pragct What isthe cost of goods sold in a hyperinflationary inoome statement for 20202 a. 6,300,000 — Inventoy . If Pym, b. 7,300,000 Purchaces Sem c. 3,150,000 Iventeny, (22) C*mm » d. 4,410,000 wer ay 5. On January 1, 2020, an entity had monetary assets of P5,000,000 and monetary liabilities of P3,000,000. During 2020, the entity monetary inflows and outflows were relatively constant and equal so that it ended the year with the same net monetary assets of P2,000,000. The index number on January 1, 2020 was 125 and the index number on December 31, 2020 was 300. What is the gain or loss on purchasing power during the current year? 2,800,000 gai Aces t5mn,on b 000 loss Vatmy 3mm _ : Ie tone cet Sa ©. 2,000,000 gain Bee , 4. 2,000,000 loss An entity acquired an equipment on January 1, 2020 for P5,000,000. Depreciati using the straight line method, The estimated useful life of the equipment is 5 years with no residual value. The current cost of the equipment is P7,500,000 on December 31, 2020. 2 1. What is the depreciation to be reported for current year under current cost accounting? Ki Avtrage Indes : ' b. 1,000,000 peer Hokie 200,000 = Semon + 1m hen, eee . . Z > Poznan 2. What is the realized holding gain on the equipment to be reported for current year? a. 500,000 Depn@ thetmteal (Sm sgn) Fi.mnen db. bep'n © Average curert: act a5Q/000 ES a feared td Gah oe 3, What is net current cost on December 31, 2020? Curren Co of kat a. 6,000,000 Dep © carent cost (78m 57) b. 6,250,000 Ret curon cot ¢. 6,500,000 d. 4,000,000 4, What is the unrealized holding gain on the equipment to be reported for current year? 1,250,000 Geren ct a yan. by pep © cunonrcast (7.5m 5°) tin) b. 2,500,000 par cnren Oot fem. in ge futirical core PCAN AN d._ 1,500,000 peta tame ale © ‘umeained foeing Gain tZmm 6773 es- On January 1, 2020, an entity purchased land for P5,000,000. On December 31, 2020, the land had @ current cost of P5,500,000. On December 31, 2021, the entity sold the land for P6,500,000. On same date, the current cost of the land is P5,900,000. 1, What is the unrealized gain to be reported in the income statement for 2020? a Curren, cost PS,500,00. b. 250,000 HMtoreat est Cfen,en ) ©. 750,000 Umeakied Gain PSN,on 4. 0 2. What is the realized holding gain to be reported in the income statement for 2021? a. 1,500,000 Cumert cout Be! SAA,00 b. 1,000,000 Canrert cs} 12/20 ($1520.40 ) ¢. 900,000 Pralned 16 $¥o00n d. 1 3. What is the gain on sale of land to be reported in the income statement for 2021 under current ; 2 cost accounting? Letng pice Gan. 1,000,000 Catron} cost [2/2 Fino 1,500,000 ah oncae == Fo a. b, ©. d. 900,000 An entity reported the following information for the current year: Units Historical cost Inventory ~ January 1 10,000 530,000 Purchases 45,000 2,790,000 Gods available for sale 55,000 3,320,000 Inventory ~ December 31 (415,000) (945.000) Cost of goods sold 40,000 2,375,000 ‘The current cost per unit was P58 on January 1 and P72 on December 31. SET >6r 1. What amount should be reported as current cost of inventory on December 312 B yso00 | ety ogn x72) tosoay ©. 945,000 ee d. 870,000 2. Under current cost accounting, what is the unre a. 135,000 | Inventoy Bb Pleso.an ed gain on inventory for the year? b. 105,000 Historical ax) CM) c. 30,000 Umeataed hong PRC Hy a. 0 can a Under current cost accounting, what is the cost of goods sold for the year? a b. 2,880,000 for0n Wh X Hore PLU ©. 2,375,000 Pace: 4. 2,320,000 4. Under current cost accounting, what is the realized gain from inventory sold? a Goss Cunrem tot Palm ony ore Coes hicfoncat (ot (287m) ¢. 280,000 Realized Gin P26 00 4. 135,000 a END 6773