TOLENTINO, HONEYLETH C.

PAS 23

The average expenditure is computed as follows:

Date  Expenditures Months

outstanding
(a) over 12
months
(b)
Jan-01 5,000,000 12 of 12
Mar-01 4,000,000 10 of 12
Aug-31 3,000,000 4 of 12
Dec-31 2,000,000 0 of 12

The capitalization rate is computed as follows:

Principal               Principal X Interest rate

12% bank loan (1.5 years) ₱ 1,000,000.00 1,000,000 x 12%

10% bank loan (3 year) ₱ 8,000,000.00 8,000,000 x 10%
₱ 9,000,000.00

Capitalization 920,000
Rate= 9,000,000

Capitalization 10.22%
Rate= 
Capitalizable BC= 8,990,000 X 10.22%

Capitalizable BC= 918,778

MULTIPLE THEORY QUESTIONS- ANSWER

PROBLEM 1:                       PROBLEM 2:

1. A                                       1. C                             
2. A                                       2. A
3. D                                       3. D
4. D                                       4. C
5. B                                        5. C
 Average
Expenditure
(c)=(a) x (b)

5,000,000
3,320,000
990,000
---
₱ 9,310,000.00

cipal X Interest rate Interest

Expense
 ₱ 120,000.00
 ₱ 800,000.00
 ₱ 920,000.00
TOLENTINO, HONEYLETH C.
PAS 24

PROBLEM 1:

1. B. THE PARTIES ARE A PARENT AND A SUBSIDIARY

2. C. A COMPANY AND IT'S CHIEF EXECUTIVE OFFICER

3. C. RELATED PARTY TRANSACTIONS (IN THE SEPARATE FINANCIAL STATEMENTS)

PROBLEM 2:

1. C. TO INDICATE THE POSSIBILITY THAT AN ENTITY'S FINANCIAL POSITION AND PERFORMANCE

2. A. THE ABILITY OF ONE PARTY TO AFFECT DECISIONS OF ANOTHER PARTY REGARDING RELEVA

3. D. NONE OF THESE

4. A. THE RELATED PARTY RELATIONSHIP BETWEEN ENTITY A AND ENTITY B

EMENTS)

N AND PERFORMANCE MIGHT HAVE BEEN AFFECTED BY THE EXISTENCE OF SUCH RELATIONSHIP.

TY REGARDING RELEVANT ACTIVITIES THROUGH THE EXISTENCE OF CONTROL, JOINT CONTROL OR SIGNIF
RELATIONSHIP.

NT CONTROL OR SIGNIFICANT INFLUENCE.  

TOLENTINO, HONEYLETH C.
PAS 27

PROBLEMS

1. D. NONE OF THESE

2. D. ANY OF THESE, AS A MATTER OF ACCOUNTING POLICY CHOICE

TOLENTINO, HONEYLETH C.
PAS 28

PROBLEM 1

1. B. HOLDS 20% OR MORE OF THE VOTING POWER OF THE INVESTEE

2. B. COST- COST, ADJUSTED FOR THE INVESTOR'S SHARE IN THE INVESTEE'S CHANGES IN EQUITY

3. A. SHARE IN THE PROFIT OF THE INVESTEE

4. D. 640,000

PROBLEM 2

1. C. 645,000

2. D. 500,000

3. B.START- SEPTEMBER 1 20X1 

         CEASE- NOVEMBER 30 20X3

'S CHANGES IN EQUITY