P1 (Statement of Financial Position) 300,000

A. The following account balances were presented Advances to officer-not currently collectible 100,000
on December 31, 2017:
Sinking Fund 400,000

Long-term refundable deposit 50,000

Share Capital 5,000,000
Cash surrender value 60,000
Share Premium-ordinary 500,000
lease rights 100,000
Retained Earnings -un appropriated 880,000
Serial bonds payable(P500,000 due every July 1 of
Accrued Interest on notes receivable 10,000
each year) 2,500,000
Land held for speculation 500,000
Employees income tax payable 20,000
Computer software 3,250,000
Notes Payable 100,000
Unearned rent income 40,000
Accrued Expenses 30,000
Premium on Bonds payable 1,000,000
Accrued Interest on notes payable 10,000
Share Premium-preference 500,000
Income Tax payable 60,000
SSS payable 10,000
Allowance for doubtful accounts 50,000
Dividend payable 120,000
Advances from customers 100,000
Preference share redemption fund 350,000
Accounts Receivable 500,000
Investment in Associates 1,300,000
Accumulated Depreciation-Bldg. 1,600,000
Mortgage Note payable in quarterly installments
of P100,000 2,000,000
Accumulated Depreciation-machinery 1,300,000
Estimated Liability for damages 140,000
Financial assets at amortized cost 1,500,000
Retained Earnings appropriated for plant
expansion 1,000,000
Land 1,500,000
Retained Earnings appropriated for contingencies 100,000
Machinery 2,000,000
Trademark 150,000
Factory supplies 50,000

Notes receivable 150,000

B. The following balances were presented at year-end
Building 4,000,000

Cash 420,000

Claim receivable 20,000 Trade accounts 930,000

Finished goods 400,000

Allowance for doubtful accounts (20,000)
Franchise 200,000

Goods in Process 600,000

Claims against shipper for goods lost in transit 30,000
Prepaid insurance 20,000 Selling price of unsold goods sent by Hazel on
consignment at 130% of cost and included in ending
Raw materials 200,000 inventory 260,000

Financial assets at fair value 250,000

Total Accounts receivable 1,200,000
Tools 40,000
What total amount should be presented as current assets?
Goodwill 100,000

Plant expansion fund 500,000

Accounts payable
C. The entity provided the following data on Dec. 7,500,000
31, 2017 Notes receivable, net of discounted note
P500,000 2,000,000
Cash, including sinking fund of 500,000 for bonds
payable due on June 30, 2018 2,000,000
Inventory 4,000,000
Notes receivable 1,200,000
  18,000,000
   
Notes receivable discounted 700,000
Trade accounts receivable 5,000,000
Accounts receivable- unassigned 3,000,000
Allowance for doubtful accounts (500,000)
Accounts receivable- assigned 800,000 Selling price for A company’s unsold goods
sent to Other Company on Consignment at
Allowance for doubtful accounts 100,000
150% of cost and excluded from A
Company’s ending Inventory 3,000,000

Equity of assignee in accounts receivable assigned 500,000   7,500,000

Inventory, including P600, 000 costs of goods in
transit purchased FOB destination. The goods
were received on January 3, 2018
What total amount of current assets should be reported on
Dec. 31, 2017?
1. What is the net realizable value of accounts
2,800,000
receivable?
2. On December 31, 2017, what amount should be
reported as total current assets?

D. The Entity reported the following current assets F. The entity disclosed the following liabilities
on Dec. 31, 2017
Accounts payable, after deducting debit
Cash 5,000,000 balances in supplier's accounts amounting to
100,000 4,000,000
Accounts Receivable 2,000,000
Inventory, Including goods received on Accrued expenses 1,500,000
consignment P200,000 800,000
Bond investment at Fair value through Credit balances of customer's accounts 500,000
other comprehensive income 1,000,000
Prepaid expenses, including a deposit of Share dividend payable 1,000,000
P50,000 made on inventory to be Claims for increase in wages and allowance by
delivered in 18 mos. 150,000 employees, covered in pending lawsuit 400,000

Total Current Assets 8,950,000 Estimated expenses in redeeming prize coupons 600,000

    What total amount should be reported as current liabilities?

Cash in general checking account 3,500,000 G. The entity reported the following liability
Cash fund to be used to retire bond balances on Dec. 31, 2017
payable in 2019 1,000,000 10% notes payable issued on Oct. 1, 2016
maturing Oct. 1, 2018 2,000,000
Cash held to pay value added taxes 500,000 12% notes payable issued on march 1, 2016
maturing on march 1, 2018 4,000,000
  5,000,000 The 2017 financial statements were issued on March 31,
2018. The entity has discretion to refinance the 10% note
payable for at least twelve months after December 31,
1. The correct amount of cash balance to be reported 2017.
as current assets? On December 31, 2017, the entire P4, 000, 000 balance of
the 12% note payable was refinance on a long-term basis.
2. What total amount of current assets should be
reported on December 31, 2017? What amount of the notes payable should be classified as
noncurrent on December 31, 2017?

E. A company reported the following current assets on H. The Entity provided the following trial balance
December 31, 2017: on June 30, 2017:

Cash Overdraft   100,000

Cash 4,500,000
Accounts receivable Accounts receivable 350,000  

Inventory
Prepaid expenses
Land held for sale
Property, plant and
equipment, net
Accounts payable
Accrued expenses
Share premium
5,180,000
580,000  
All receivables on long-term contracts are considered to be
120,000   collectible within 12mos.
During the year, estimated tax payments of P450,000 were
charged to prepaid taxes. The entity has not recorded
1,000,000  
income tax expense. The tax rate is 30%.
On Dec. 31, 2017, what amount should be reported as
950,000   1. Total retained earnings
2. Total current liabilities
200,000 3. Total current assets
4. Total shareholder’s Equity
150,000
J. On Dec. 31, 2017, The entity showed the following:
250,000

Share capital 1,500,000 Cash 3,200,000

Retained earnings 800,000 Accounts Receivable 2,500,000

  3,000,000 3,000,000 Inventory 2,000,000

     
Deferred tax asset 700,000
Check amounting to P300, 000 were written to vendors and
recorded on June 29, 2017 resulting in a cash overdraft of Prepaid expenses 100,000
P100, 000. The check was mailed on July 9, 2017.
Land held for sale was sold for cash on July 15, 2017.   8,500,000
The entity issued the financial statements on July 31, 2017.
   
1. What total amount should be reported as current    
assets? Cash on hand, including customer postdated
2. What total amount should be reported as current check P50,000 and employees IOU P50,000 500,000
liabilities? Cash in bank per bank statement,
3. What total amount should be reported as
outstanding check on December 31,2017
shareholder’s equity?
P200,000 2,700,000

  3,200,000
I.The entity provided the following account balances on
   
December 31, 2017 which had been adjusted except for
income tax expense: Customer's debit balances, net of customers'
deposit P50,000 1,900,000
Cash 600,000
Allowance for doubtful accounts (150,000)
Sales price of goods invoiced to customers at
Accounts receivable, net 3,500,000
150% of cost on December 29, 2017 but
Cost in excess of billing on long-term
delivered on January 5, 2018 and 750,000
contracts 1,600,000
Billings in excess of cost on long-term
contracts 700,000 excluded from reported inventory 2,500,000
   
Prepaid taxes 450,000
1. What is the adjusted cash balance
Property, plant and equipment, net 1,510,000 2. What total amount should be reported as current
assets on Dec. 31, 2017?
Notes payable-noncurrent 1,620,000

Share capital 750,000

Share premium 2,030,000

Retained earnings un appropriated 900,000

Retained earnings restricted for notes
payable 160,000

Earnings from long-term contracts 6,680,000

Cost and expenses