Faith Kryzl Pahilagao BSA-2

1. Short term obligation - Mar. 1 150,000

Feb. 5 3,600,000

Loan (per year) 1,000,000

Debt obligation 1,000,000

Current Liabilities 5,750,000

2. Long term loan – Dec. 1 ,2019 2,500,000

Debt Obligation (4,000,000-1,000,000) 3,000,000
Non-current Liabilities 5,500,000

3. B= 10% (4,650,00-B-T)
T= 30%(4,650,000-B)
B= 10%[(4,650,000-B-30)- (4,650,000-B)]
B= 10%(4,650,000-B-1,395,000+30%B)
B= 465,000-10%B-139,500+3%B
B+10%-3%B = 465,00-139,500
B=1.07B=325,500
B=325,000 ÷ 1.07B
B= ₱304,205.61

4. Income Tax for the year = (4,650,000-304,205.61)30%

=₱1,303,738.20

5. Bonus Expense 304,205.61

Bonus Payable 304,205.61

6. 2017 (Deliveries) 85,000

2107 (Returned from deliveries) (57,500)
Revenue Recognized for 2019 27,500

7. Deliveries held by customer:

2018 240,000
2019 430,000 670,000

Companies Returned

2018 140,000

2019 157,000 (297,000)

Liability for returnable containers 373,000

Faith Kryzl Pahilagao BSA-2

8. Current Liability (₱810 x 270 x 1/3) = ₱72,900

9. 18,000+36,000 = 54,000

10. Non-current Liability ( ₱810 x 270 x 2/3) = 145,800

11. Sales from musical instruments 54,000 000

Estimated warranty cost x 2%

Warranty expense 1 080 000

12. Estimated Warranty Expense 1 080 000

Estimated Liability from warranties 1 360 000
Actual Warranty expense (1 640 000)
Estimated warranty Liabilities 800 000

13. Premium Expense (CD player) = 340-200=140

Prem. Coupons expense = 1 200 000 – 1 080 000 = 120 000
Units in expense = 120 000 ÷ 200 = 600
Premium Expense = 6 000 – 600 x 140=756 000

14. Beg. Inv. 1 175

Purchases 6 500
Redemption (6 000)
Inventory 1 675
x 340
Inventory of premium CD players 569,500

15. Estimated premium claims outstanding – Jan. 1 , 2014 448 000

Add: Premium Expense 756 000
Less: Actual Redemption (1 200 0000 ÷200=6 000 x 140) 840 000
364 000