Reviewer in Accounting - xlsx-3

The related data of Thailand Company on December 31, 2022:
Cash in checking account P 350,000

Cash in money market 750,000
Treasury bills, purchased Nov. 1, 2021, maturing Feb. 28, 2022, 3,500,000
Time deposit purchased Dec. 31, 2021 maturing March 31, 2022 4,000,000
Determine the cash and cash equivalents.
350,000.00
750,000.00
4,000,000.00
5,100,000.00
Treasury bills is not included since the maturity date of it is exceeding to 3 months
The related data of Colombia Company:

Cash balance, September 30 per bank statement P257,500
Cash balance per general ledger 225,500
Deposit made on September 30 not recorded by the bank 90,200
Note collected by the bank 35,000
Outstanding checks 87,500
Debit memo on service charge 3,000
The entity recorded a disbursement check of P66,900 instead of P69,600
How much is the adjusted cash balance?

Solution
Per bank
Unadjusted Cash balance 257,500.00
Reconcilling item:
Deposit in transit 90,200.00
Outstanding Checks -87,500.00
bank service charge
NSF check
Note collected by the bank including interest
Book errors Actual recording 66,900.00
SHould be recording 69,600.00
Adjusted Cash Balance 260,200.00
Thailand Company provided the following data relating to the cash transactions and bank account for July:
Cash balance per ledger ?
Cash balance per bank statement ?
Debit memo for July service charge P 6,250
Deposit of July 31 not recorded by the bank until August 1 560,500
Outstanding checks (including certified check amounting to P25,300) 412,500
Proceeds of loan collected by the bank on behalf of the company 85,000
Issued check by the company to the supplier had been entered in the book as P78,200 and was erroneously deducted by the bank at P72,800.
A Book error on a check issued by the company and recorded at P98,725 was cleared by the bank at an amount of P97,825.
A customer check was returned by the bank marked as NSF P20,000.
The corrected cash balance is P1,150,200.
How much is the unadjusted cash balance per ledger?

Soulution Per bank
Unadjusted Cash balance 982,300.00
Reconcilling item:
bank service charge
NSF check
Book errors Actual recording 98,725.00
SHould be recording 97,825.00
Adjusted Cash Balance 1,150,200.00
Sweden Company provided the following information for the month of December:
Balance per bank statement December 31 P1,525,875
Bank service charge for December 3,600
Interest paid by the bank to the entity for December 12,800
Deposit made but not yet recorded by the bank 520,000
Checks written but not yet recorded by the bank 485,000
The entity discovered that it had drawn and erroneously recorded a check for P89,700 that should have been recorded for P98,700.
How much is the cash balance per ledger on December 31, 2021?
Solution Per bank
Unadjusted Cash balance 1,525,875.00
Reconcilling item:
bank service charge
NSF check
Book errors Actual recording
SHould be recording
Adjusted Cash Balance 1,560,875.00
Oklahoma Company prepared the following bank reconciliation on March 31:

Balance per bank statement, March 31 P2,000,000
Deposit in transit 1,375,000
Outstanding checks -950,000
Balance per book statement, March 31 P2,425,000
Data per bank statement for April are as follows:
Deposits P3,500,000
Disbursements 2,650,000
All reconciliation on March 31 cleared through the bank in April.
Outstanding checks on April 30 totaled P675,000 and Deposit-in transit amounted to P915,800.
Using the proof of cash, how much is the adjusted cash in the bank on April 30?
Solution
Beginning Receipts Disbursement Ending
Unadjusted 2,000,000.00 3,500,000.00 2,650,000.00 2,850,000.00
Deposit in transit
Previous 1,375,000.00 -1,375,000.00
Current 915,800.00 915,800.00
Outstanding Checks
Previous -950,000.00 -950,000.00
Current 675,000.00 -675,000.00
Adjusted bank balance 2,425,000.00 3,040,800.00 2,375,000.00 3,090,800.00
Turkey Company related data for December 31, 2021:

Balance per book P 766,200
Balance per bank statement 735,000
Deposit in transit 125,800
Bank charges not yet taken up in the books 3,000
Error in recording a check in the books. The correct amount is P38,700 but recorded as P37,800.
How much is the correct cash in-bank balance?
Cash in Bank per bank statement 735,000.00

Add:
Less:Deposit in Transit
Outstanding Checks (Certified 125,800.00
checks excluded) -98,500.00
Amount Erroneously Credited by the Bank
Adjusted Cash in Bank 762,300.00
Cambodia Company available data for August 31, 2021, are:

Balance per bank statement, 8/31/2021 P312,500
Deposit in transit 95,000
Return of customer's NSF check 3,000
Bank service charges 2,000
How much is the unadjusted cash balance per book?
Cash in Bank per bank statement 312,500.00
Add:
Less:Deposit in Transit
Outstanding Checks (Certified 95,000.00
checks excluded) -89,500.00
Amount Erroneously Credited by the Bank

Add: Service charge for the current month 2,000.00
NSF Checks 3,000.00
Less: Note collected by the bank including Interest
Book error on check
Unadjusted Cash in Bank Per Ledger 323,000.00
Receivables
The related data of V Company:
Accounts receivable, beginning P395,200

Allowance for bad debts, beginnin 8,500.00
Sales for the year 5,000,000.00
Collection (except recovered acco 4,680,000.00
Accounts written-off 25,000.00
Recovered accounts 10,000.00
1. If the Allowance for doubtful accounts is 2% of sales, how much is the net realizable value of the Accounts rece
Solution:
Sales during the year 5,000,000.00
% Bad Debts 2%
Bad debts for the period 100,000.00
Accounts Receivable
Beginning Balance 395,200.00 Collection 4,680,000.00
Net Sales 5,000,000.00 Written-off 25,000.00
Accounts Recovered 10,000.00 Accounts Recove 10,000.00
Ending balance 690,200.00
5,405,200.00 5,405,200.00
Allowance for bad debts

Accounts written off 25,000.00 Beginning balanc 8,500.00
Bad debts for the 100,000.00
Ending balance 93,500.00 Accounts recover 10,000.00
118,500.00 118,500.00
Accounts receivable 690,200.00

Less: Allowance for bad debts 93,500.00
Net realizable value (NRV) 596,700.00
2. If the Allowance for doubtful accounts is 2% of sales, what are the related journal entries?
Journal Entries
Accounts Particular Debit Credit

Accounts Receivable 5,000,000.00
Sales 5,000,000.00
To record Sales
Cash 4,680,000.00
Account Receivable 4,680,000.00
To record collection
Bad debts expense 100,000.00
Allowance for bad debts 100,000.00
To record allowance for bad debts
Account Receivable 25,000.00
To record accounts written off
Cash 10,000.00
To record collected from previous writ
3. If the Allowance for doubtful accounts is 2% of the Accounts receivable ending balance, how much is the net realiza
Solution:
Accounts Receivable, Beginning 395,200.00
Sales 5,000,000.00
Less: Collection -4,680,000.00
Less: Accounts written off -25,000.00
Add: Recovered accounts 0.00
Accounts Receivable, Ending 690,200.00
% of Bad Debts 2%
Allowance for Bad Debts, Ending 13,804.00
Allowance for Bad Debts, Beginning 8,500.00
Bad Debts Expense 5,304.00
Accounts Receivable
Beginning Balance 395,200.00 Collection 4,680,000.00
Net Sales 5,000,000.00 Written off 25,000.00
Accounts Recovered 10,000.00 Accounts Recove 10,000.00
Ending Balance 690,200.00
5,405,200.00 5,405,200.00
Allowance for Bad Debts

Written off 25,000.00 Beginning Balanc 8,500.00
Bad Debts 20,304.00
Ending Balance 13,804.00 Accounts Recov 10,000.00
38,804.00 38,804.00
Accounts Receivable 690,200.00

Net Realizable Value 676,396.00
On January 15, 2021, Jimin Company shipped 100 cellphone units to Suga Company.
The related data:
The list price per unit P 5,200
Trade discount per unit 200
Freight charges paid in cash 3,500 FOB destination
Tem of payments 2/10, n/30
The mark-up is 40% based on sales.
On January 31, 2021, Suga Company paid all the total shipment.
The entity uses the perpetual inventory system.
Under the net method, how much is the other income/sales discount forfeited?
Net Method
The list price per unit 5,200.00
less:Trade discount per unit 200.00
Invoice price 5,000.00
Selling price per unit 100
total Invoice price 500,000.00
Less:Cash discount 10,000.00 Sales discount forfeited/other income 2%of 500k
net invoice price 490,000.00
On January 1, 2021, Jin Company sold equipment at a cost of P400,000

The consideration is a P50,000 down payment and P450,000 a noninterest-bearing note.
The annual collection for three periods is P150,000 payable every end of the year beginning December 31, 2021. The
What is the present value of the note receivable on December 31, 2021?
Solution:
Anual Collection 150,000.00 150,000.00
PV of OA 2.49 2.49 10%
Present Value of the note Jan.1, 2021 373,035.00
Face value of the note 450,000.00 500k-50k

Less:Present Value of the note 373,035.00
Unearned interest income Jan. 1, 2021 76,965.00
Present Value of the note Jan.1, 2021 373,035.00
Cash received - downpayment 50,000 down
Cash sales price 423,035.00
Cost of equipment 400,000 700k-300k
Gain on sale of equipment 23,035.00
Amortization table: 10%
Date Collection Interest income pricipal present value
Jan. 1 2021 373,035
Dec. 31 2021 150,000.00 37303.5 112,696.50 260,338.50
On January 1, 2021, Jin Company sold equipment at a cost of P400,000

The consideration is a P50,000 down payment and P450,000 a noninterest-bearing note.
The related data of the note:
The annual collection for three periods is P150,000 payable every end of the year beginning December 31, 2021. The
What is the present value of the note receivable on December 31, 2021?
J-Hope Company experiences financial difficulties and began defaulting on the loan to International Bank.
The loan receivable has a carrying amount of P3,300,000 including the accrued interest of P300,000 on December 31
Date of cash flow Amount projected PV of 1
December 31, 2020 P500,000 Year 1 0.8929
December 31, 2021 1,000,000 Year 2 0.7972
December 31, 2022 1,500,000 Year 3 0.7118
The prevailing rate is 12%
How much is the impairment loss?

Solution:
Period Amount PV of 1 Amount
Year1 500,000.00 0.89 446,450.00
Year2 1,000,000.00 0.80 797,200.00
Year3 1,500,000.00 0.71 1,067,700.00
Total present value of cash flow 2,311,350.00
Carrying amount of loan 3,300,000.00

Present value of cash flow 2,311,350.00
Impairment Loss 988,650.00
1. Which should not be recorded as Receivable?
-2.Receivables from subsidiaries
How will an 18-month Accounts receivable amounting to P180,000 be presented in the statement of financial position?
- P180,000 as part of the current asset
3. Under direct write-off, what is the effect of the journal entry to write off a specific customer account?
- Decrease accounts receivable and decreases net income
4. Under the Allowance method, what is the effect of the journal entry to write off a specific customer account?
- No effect on net income
5. How should sales discounts not taken be reported under the net method?
- Other income
6. How should the interest income of noninterest-bearing note be measured?
- The present value of the note multiplied by the effective interest rate
On January 1, 2021, England Company sold merchandise on account with a list price of P350,000.
Related data of the said sale:
Trade discount 10%
Terms of payment 3/10, 2/15, n/30
The entity paid on January 16, 2021.
Under the Net method, what is the amount of sales discount forfeited?
Solution:
The list price per unit 350,000
less:Trade discount per unit 10%
Invoice price 35,000.00
Selling price per unit 0.00
total Invoice price 35,000.00
Less:Cash discount
net invoice price
1. Which is included in “cash”?

- Petty cash fund
2. Which statement is correct?
- Cash in the money market is reported as cash and cash equivalents.
3. Which is considered as cash equivalents?
- A three-year treasury note maturing on May 30 of the current year purchased by the entity on March 15 of the current
4. Which of the following should not be included in cash and cash equivalents?
- Legally restricted deposit held as compensating balance against borrowing arrangement
5. What is the internal control feature specific to petty cash?
- Imprest system
6. What is bank reconciliation?
-7.AIfschedule that
the balance accounts
shown on anfor the differences
entity’s between
bank statement is lessanthan
entity’s cash balance
the correct as shown
cash balance on its the
and neither bank statement
entity and th
nor the bank h
- Deposit in transit
8. Which information is not provided by the bank statement?
- Errors made by the depositor
Cash and Cash Equivalent
Per book
225,500.00
28,700.00
223,000.00
695,000.00 735,800.00
-3,000.00 -5,000.00
-28,000.00 176,500.00
35,000.00 890,000.00 936,000.00
2,700.00
260,200.00
y deducted by the bank at P72,800.
mount of P97,825.
issued check... 5,400.00
Per ledger
1,090,550.00
-6,250.00
-20,000.00
85,000.00
900.00
1,150,200.00
een recorded for P98,700.
Per book
1,535,475.00 -9,000.00
-3,600.00
12,800.00
9,000.00
1,560,875.00
le value of the Accounts receivable?
1,960,800.00
9,500.00
ce, how much is the net realizable value
ning December 31, 2021. The effective rate is 10%
16% 750,000 1,500,000.00 4,000,000

3.27 3.79 5.15
2452500 5685000 20600000
2452500 4,000,000 2,266,000 1,734,000

750,000.00 392,400.00 357,600.00 2,810,000
10%
1,500,000 568,500 931,500 5685000
minus: presnt value and principal

Present value of note on Dec.31,2021
ning December 31, 2021. The effective rate is 10%
International Bank.
of P300,000 on December 31, 2019. International Bank projected the cash flows from the loan on December 31, 2019:
ment of financial position?
tomer account?
f P350,000.
tity on March 15 of the current year.
wn on its the
d neither bank statement
entity and the
nor the bank hascash
madebalance shown
any errors, whatincould
its general ledger.
be the difference?
11%
20,600,000
18,866,000
cember 31, 2019:
MODULE 3
Luxemburg Company purchased the following investments during 2021:
Initial Cost Transaction cost Fair value Year-end 2021
Security 528,000.00 52,800.00 556,000.00
Security B 862,500.00 86,250.00 843,000.00
On July 31, 2022, the entity sold all of the shares of Security B for P879,000.
No other activity occurred during 2022 concerning the portfolio.
Retained earnings before any adjustments on equity securities on July 31, 2022, is P2,000,000.
Assuming trading securities - FVPL, how much is the gain on sale on July 31, 2022?
Solution:
Consideration received 879,000.00 487,500.00
Less Carrying amount 843,000.00 973,000.00
Gain/loss on sale 36,000.00
FVPL
Security 528,000.00 52,800.00 556,000.00
Security B 862,500.00 86,250.00 843,000.00
Assuming nontrading securities - FVOCI, how much is the Unrealized Loss - OCI on December 31, 2021?
Solution
Fair value at year end 1,399,000.00
Less initial cost 1,529,550.00
Unrealized gain or loss -130,550.00 pero positive ilalagay mo
Security 528,000.00 52,800.00 556,000.00
Security B 862,500.00 86,250.00 843,000.00
Assuming nontrading securities - FVOCI, how much is the adjusted Retained earnings on July 31, 2022?
Solution
Retained earnings 105,750.00

Less retained earnings 36,000.00
69,750.00
retained earnings before 2,000,000.00
1,930,250.00
The related data of Estonia Company:

On March 1, 2021, Aruba Inc. declared a cash dividend of P375,000, on which Estonia Company had a 10% ownership. 30, 20
The date of record is March 31, 2021, and the date of payment is April
The fair value of the property on that date is P178,000 and the fair value on June 30, 2021, which is the date of payment is P18
On July 15, 2021, Australia Company declared a liquidating dividend of P250,000, of which Estonia had a 10% interest.
How much is the dividend income reported in the Income Statement in 2021?
Solution
Cash Dividend 375,000.00 2,000,000.00
Ownership 10% 10%
37,500.00 200,000.00
Fair Value, June 30, 2021 182,000.00
219,500.00
On January 1, 2021, Kendall Inc. purchased 25,000 shares of Kylie Company at a cost per share of P200.
Kylie Company's outstanding ordinary shares are 100,000. Kendall is part of Kylie's board of directors.
During the year, Kylie Company paid cash dividends of P375,000 and had a net income of P1,250,000.
How much is the Investment in associate on December 31, 2021?
Solutions: Jan.1 2021 transaction cost Initial Dec. 31,2021
No. of shares acquired 25,000.00 25,000.00
Market price per share 200 100,000
Investment cost 5000000 2500000000
2505000000
On January 1, 2021, the Swiss Company purchased 20,000 ordinary shares at P52.50 per share to be
classified as nontrading through other comprehensive income. On September 30, 2021, the entity received 15,000
shares rights to purchase 1 new share at a cost per share of P65 for every 3 share rights. The share rights had an expiration dat
On September 30, 2021, each share had a market value of P82.80 and the share rights had a market value of P7.20.
How much is the cost of new shares that are acquired by exercising the rights on September 30, 2021?
Entity Received 15,000.00

3.00
5,000.00
65.00
325,000.00
1. Which of the following is not a category of financial assets?

- Financial assets held for sale
2. Which of the following shall not be measured at fair value through profit or loss?
- Investments in unquoted equity instruments
3. When is dividend income recognized?
- Date of declaration
4. What is the effect of split up?
- Increase in number of shares and decrease in cost per share
5. Which best describes significant influence? -The power to participate in the financial and operating policy decisions of an ent
6. Which of the following statements is incorrect concerning the equity method?
- Dividends received from the associate are accounted for as income.
Company Name No. of share investeStock Price (02/14/22) Total InvestmeStock Price (02
Ayala Corp. 35.21 852.00 30,000.00 860.00
BDO unibank, Inc. 216.92 138.30 30,000.00 136.00
San Miguel Corporation 368.66 108.50 40,000.00 109.50
100,000.00
FVPL:
Ayala Corp.
Related Journal Entry
Date Account Particulars Debit Credit
February 14, 2022 Financial Asset - FVPL 30,000.00
Expense ( Transaction Cost) 3,000.00
Cash 33,000.00
To record purchase of financial assets. -FVPL
2/16/2022 Unrealized gain on Financial Asset 281.69
cash 281.69
To record Financial assets at fair value through profit or loss
FVPL:
BDO Unibank, Inc.
February 14, 2022 February 16, 2022 Gain
No. of shares invested 216.92 216.92
Stock Price per share 138.30 136.00
Investment Cost 30,000.00 29,501.08 -498.92
Related Journal Entries

February 14, 2022 Financial Assets- FVPL 30,000.00
Expense (Transaction Cost) 3,000.00
Cash 33,000.00
To record purchase of financial assets- FVPL
February 16, 2022 Financial asset - FVPL 498.92
Unrealized Gain on the change in the fair value of financial a 498.92
To record financial assets at fair value through profit or loss
FVPL:
San Miguel Corporation February 14, 2022 February 16, 2022 Gain
No, of share Invested 368.66 368.66
Stock price per share 108.50 109.50
Investment Cost 40,000.00 40,368.66 368.66

February 14,2022 Financial asset - FVPL 40,000.00
Expense transaction cost 3,000.00
Cash 43,000.00
To record purchase financial asset
February 16,2022 Financial asset - FVPL 368.66
Unrealized Gain on the change in the fair value of financial a 368.66
To record financial asset at fair value th
FVOCI: San Miguel Corp.

Solution: February 14,2022 Transaction Cost Initial Cost ###
No. of shares acquired 368.66 368.66
Market price per share 108.50 105.90
Invetment cost 40,000.00 4,000.00 44,000.00 39,041.09

Date Account Patriculars Debit Credit
February 14,2022 Financial assets -FVOIC 44,000.00
Cash 44,000.00
To record purchased financial asset - FVOCI
February 16,2022 Financial asset - FVOIC 4,958.91
Unrealized gain on financial asset - FVOIC 4,958.91
To record financial asset at fair value - OCI
FVOCI: Ayala Corp.

Solution:
February 14, 2022 Transaction cost Initial cost ###
No. of shares acquired 35.21 35.21
Market price per share 852.00 860.00
Investment cost 29,998.92 3,000.00 32,998.92 30,281.00
Related Journal Entries

February 14, 2022 Financial asset - FVOCI 32,998.92
Cash 32,998.92
To record purchase financial asset- FVOCI.
February 16, 2022 Financial asset - FVOCI 2,717.92
Unrealized gain on financial asset- FVOCI 2,717.92
To record financial asset at fair value- OCI
75,000.00
138,000.00
-63,000.00
6,000.00
Security No. of shares Initial Cost Fair value Transaction cost
A 2,000 P100,000 P115,000 P10,000
B 3,000 105,000 138,000 10,500
C 5,000 200,000 210,000 20,000

The entity sold 1,500 shares of Security B on January 5, 2022, for P75,000.
232,500.00
64,500.00
168,000.00
ny had a 10% ownership. 30, 2021.
ch is the date of payment is P182,000. Estonia had a 9% interest in Argentina COmpany

onia had a 10% interest.
Gain
2021, the entity received 15,000

hare rights had an expiration date of February 1, 2022.
erating policy decisions of an entity.
Total InvestmeGain/Loss
30,281.69 281.69
29,501.08 -498.92
40,368.66 368.66
100,151.44 151.44
ugh profit or loss
gh profit or loss
Gain
4,958.91
Gain
2,717.92
Receivables
The related data of V Company:
Accounts recei P395,200

Allowance for 8,500.00
Sales for the y 5,000,000.00
Collection (ex 4,680,000.00
Accounts writt 25,000.00
Recovered acc 10,000.00
1. If the Allowance for doubtful accounts is 2% of sales, how much is the net realizable value of the Accounts rece
Solution:
Sales during the 5,000,000.00
% Bad Debts 2%
Bad debts for th 100,000.00
Accounts Receivable
Beginning Bala 395,200.00 Collection 4,680,000.00
Net Sales 5,000,000.00 Written-off 25,000.00
Accounts Recov 10,000.00 Accounts Recov 10,000.00
Ending balanc 690,200.00
5,405,200.00 5,405,200.00
Allowance for bad debts

Accounts written 25,000.00 Beginning bala 8,500.00
Bad debts for th 100,000.00
Ending balanc 93,500.00 Accounts recov 10,000.00
118,500.00 118,500.00
Accounts receivable 690,200.00

Net realizable value 596,700.00
alue of the Accounts receivable?
MODLE 4
On January 1, 2021, Brazil Company acquired 5-year bonds with a face amount of P2,000,000.
The nominal rate is 12% and the effective rate is 14%.
The interest is payable annually on December 31. The entity used the effective interest method.
The entity used 2 decimal places for the PV factor.
How much is the present value of Investment in bonds on December 31, 2021?
Solution:
Face amount 2,000,000.00

Nominal Rate 12.00% 240,000.00
Face AMount 2,000,000.00

Effective Rate 14.00% 280,000.00
Difference 40,000.00
x PV of OA for 5 periods at 14% 3.43 to get this, 1 plus the rate in effective then click
Discount on Bonds 137,200.00 equal starts counting 5 after 1 then misnu
Face Amount of Bonds 2,000,000.00
Present Value of Bonds 1,862,800.00
0.12 0.14
240,000.00 260,792.00 20,792.00
On January 1, 2021, Myanmar Company acquired 5-year bonds with a face amount of P1,500,000.
The entity also paid a bond issue cost of P150,000. The nominal rate is 10%.
The effective rate after considering bond issue cost is 9%.
How much is the purchase price of Investment in bonds on January 1, 2021?
Solution

Nominal Rate 10% 150,000.00
Face AMount 1,500,000.00

Effective Rate 0.09 135,000.00
x PV of OA for 5 periods at 9% 3.89
Discount on Bonds 58,350.00
Face Amount of Bonds 1,500,000.00
Present Value of Bonds 1,558,350.00
To get purchase price

Transaction cost 150,000.00
Present value 1,558,350.00
1,708,350.00
On January 1, 2021, Myanmar Company acquired 5-year bonds with a face amount of P1,500,000.
The entity also paid a bond issue cost of P150,000. The nominal rate is 10%.
The effective rate after considering bond issue cost is 9%.
How much is the interest received on December 31, 2021?
face amount 2,000,000.00
nominal rate 10%
Interest received 200,000.00
On October 1, 2021, Switzerland Company purchased P5,000,000 face amount 9%

bonds for P4,820,000 to be held as financial assets at amortized cost. The bonds were purchased to yield 11% interest.
The bonds are dated January 1, 2021, and pay interest annually on December 31 using the interest method.
How much is the carrying amount of the investment in bonds on October 1, 2021?
Face amount 5,000,000.00 1,750,000.00

Multiply by nominal rate 9% 14%
Annual interest received 450,000.00 245,000.00
Multiplt bt time period (9/12) 0.75
Accrued interest 337,500.00
Amount consideration 4,820,000.00
Less accrued 337,500.00
Caryign amount on October 1 4,482,500.00
Hawaii Company purchased 3000 per ₱1500 face amount, 10% bonds to yield 12%.
The carrying amount of the bonds on January 1, 2021, is P4,284,000
The entity sold 1,050 bonds on December 31, 2021, for P1,650,000 after the interest has been received.
How much is the Gain on sale on December 31, 2021 (round-off answer to the nearest peso value)?
Solution
10% 12%
953,600.00
150.00 114,432.00 114,282.00 1,067,882.00
Carrying amount 4,284,000.00

Multiply by the ratio
share solds 1,200.00
Total shares purcha 2,000.00 0.60
2,570,400.00
selling amount 615,000.00
Gain on sale 1,955,400.00
On January 1, 2021, Alicia Company purchased 12% bonds with a face amount of P1,800,000 at P1,716,480.
The bonds payable effective rate is 14%.
The bonds will mature on January 1, 2024, and pay interest annually on December 31 of each year.
The bond's quoted price on December 31, 2021, is P103.
The entity has irrevocable use of the fair value at other comprehensive income. (FVOCI).
How much the Unrealized gain - OCI, December 31, 2021 (round-off answer to the nearest peso value)?
Solution
Purchase price 2,092,800.00 face amount 2,000,000.00
Less:transaction cost 0.00
16% 14%
2,092,800.00
Dec 31 320,000.00 292,992.00 -27,008.00 2,065,792.00
Fair value 2,060,000.00
less carrying amount 2,065,792.00
-5,792.00
On January 1, 2021, Germany Company purchased 12% bonds with a face amount of P4,000,000 for P4,500,000.
The bonds payable effective rate is 10%.
The bonds are dated January 1, 2021, and pay interest annually on December 31 of each year.
The bond's quoted price on December 31, 2021, is P115.
The bonds are dated January 1, 2021, and pay interest annually on December 31 of each year.
The entity has irrevocable use of the fair value option.
How much is the gain on change in fair value on December 31, 2021?
Solution
Purchase Price 4,500,000.00
Less transaction cost 0.00
Fair value 4,600,000.00

Less carrying amount 4,500,000.00
Gain on change in fair value 100,000.00
On October 1, 2021, Switzerland Company purchased P5,000,000 face amount 9%

bonds for P4,820,000 to be held as financial assets at amortized cost. The bonds were purchased to yield
The bonds are dated January 1, 2021, and pay interest annually on December 31 using the interest method.
How much is the carrying amount of the investment in bonds on October 1, 2021?
Solution:
Multiply by nominal rate 9%
Annual interest received 450,000.00
Multiplt bt time period (9/12) 0.75
Accrued interest 337,500.00
Amount consideration 4,820,000.00
Less accrued 337,500.00
Caryign amount on October 4,482,500.00
1. What is the interest rate written on the face of the bond?

- Nominal rate
2. How should transaction costs directly held to the acquisition of bond investment at amortized cost be treated?
- Part of the initial carrying amount
3. How should investment in bonds be reported?
- Fair value through other comprehensive income or Fair value through profit or loss or Amortized cost
4. How would the effective interest method of amortizing discount result?
- Increasing amortization and increasing interest income
5. How would the effective interest method of amortizing premium result?
- Decreasing amortization and decreasing interest income
6. How would an interest income of investment in bonds be measured under the fair value option?
- Nominal rate multiplied by the face value of the bonds
the rate in effective then click the divide then
nting 5 after 1 then misnus it to 1 then divide to 14%
1,862,800.00
1,883,592.00
11% interest.
face amount 1,500.00
1,691,375.00 1,750,000.00
0.00
1,691,375.00
14% 15% 1,691,375.00

245,000.00 254,706.25 9,706.25
1,701,081.25
ds were purchased to yield 11% interest.
he interest method.
cost be treated?
Amortized cost
MODULE 5
Compute for the correct numerical answers. Show solution on a separate sheet.
1. Determine the Total liabilities: (7 points)
Accounts Payable
Advances to employees
Unearned rent revenue
Estimated Liability Under Warranties
The cash surrender value of the officer's life insurance
Bonds Payable
Discount on bonds payable
Trademark
Solution: Accounts Payable

Advances to employees
(receivable,asset)
Unearned rent revenue
Estimated Liability Under Warranties
The cash surrender value of the officer's life insurance
(investment, noncurrent asset)
Bonds Payable
(contra-liability)
Trademark
(intangible asset,noncurrent asset)
Total Liabilities:
2. Brunei Company disclosed the following information at year-end:

Accounts payable P4,000,000, after deducting debit balances in supplier's accounts
amounting to P100,000. Accrued expenses P1,500,000
Credit balances of customer's accounts P500,000
Share dividends payable P1,000,000
Claims for an increase in wages by employees, covered in a pending lawsuit P400,000
Estimated expenses in redeeming prize coupons presented by customers P600,000
How much are the current liabilities?
Solution di kasama yung shares tas claim kase yung shares equity
6,700,000.00
Marian purchase a merchandise with a list price of 600,000 and is given a trade discounts of 5% and 2%.
The term of payment is 3/10, n/30. Under net method, how much is the accounts payable?
Solution
List price 600,000.00 600,000.00

95% 5% 30,000.00 570,000.00
98% 2% 11,400.00
Invoice Price 558,600.00 558,600.00
Discount 16,758.00
Net Invoice price 541,842.00
4. On January 1, 2021, Zia Company purchased equipment from Sergio Company for P3,600,000.
Term of payments includes issuing a 5-year noninterest-bearing note payable starting January 1, 2021.
The effective rate is 14%.
The entity used 2 decimal places for the PVF.
How much is the note payable on December 31, 2021?
Solution
Present value of the note

annual payment 720,000.00
multiplied by PV f 3.91 2,815,200.00 You will just get the 4 period of PV then
Equipment 2,815,200.00
Note payable face amount 3,600,000.00

less: present value 2,815,200.00
Discount on note payable, Jan 1 784,800.00
14%
Date Payment Interest Principal Present value
Jan 1, 2021 2,815,200.00
Jan 1, 2021 720,000.00 720,000.00 2,095,200.00
Dec 31, 2021 720,000.00 293,328.00 426,672.00 1,668,528.00
Dec 31, 2022 720,000.00 233,593.92 486,406.08 1,182,121.92
Dec 31, 2023 720,000.00 165,497.07 554,502.93 627,618.99
Dec 31, 2024 720,000.00 92,381.01 627,618.99 0.00
3,600,000.00 784,800.00 2,815,200.00
Note payable, face amount dec 2021

note payable beggining balance 3,600,000.00
less: january 1 and dec 31, payment 1,440,000.00
Less: Discount on note payable 2,160,000.00
Beginning balance 784,800.00
less: Amortization 293,328.00 491,472.00
Carrying amount, Dec 31 2021 1,668,528.00
Current and non current portion

Note payable current December 31, 2022 720,000.00
less: Discount on note payable dec 2022 233,593.92
Carrying amount, Current 486,406.08

Note payable current (2023-2024) 1,440,000.00
less: Discount on note payable 73,116.06
Carrying amount, Non Current 1,366,883.94
1,853,290.02
5. On January 1, 2021, Pia Company purchased equipment from Catriona Company for P100,000.
The term of payments includes P20,000 down payment and issuing a 2-year noninterest-bearing note payable maturing on December 31, 202
The noninterest-bearing note amounts to P80,000 and the effective rate is 14%.
How much is the note payable on December 31, 2021?

Solution
Downpayment 20,000.00
multiplied by PV f 0.77 61,600.00
Equipment 81,600.00
Note payable face amount 80,000.00

less: present value 61,600.00
14%
Date Interest Principal Present value
Jan 1 2021 18,400.00 61,600.00
Dec 31 2021 8,624.00 9,776.00 70,224.00
Dec 1 2022 9,776.00 0.00 80,000.00
18,400.00 9,776.00
Note payable, face amount dec 2021

note payable beggining balance 160,000.00
less: December 31, payment 0.00 160,000.00
Less: Discount on note payable
Beginning balance 18,400.00
less: Amortization 8,624.00 9,776.00
Carrying amount, Dec 31 2021 150,224.00

Note payable current December 31, 2022 0.00
Carrying amount, Current -9,776.00

Note payable current (2023-2024)
less: Discount on note payable
Carrying amount, Non Current 0.00
On January 1, 2021, Dreamlover Corporation purchased equipment from Daydream Company for P3,600,000.
Term of payments includes issuing a 5-year noninterest-bearing note payable equally every end of the year.
The effective interest rate is 15%. The entity used 2 decimal places for the PVF.
1. How much is the initial cost of the equipment?

Solution:
Annual payment 720,000
Multiplied by PV factor 3.35
Equipment 2,412,000
2. How much is the discount on the note payable on January 1, 2021?

Solution:
Note payable, face amount 3,600,000
Less: Present value of the note 2,412,000
Discount on note payable, January 1, 2021 1,188,000
4. Prepare an amortization table 15%

Date Payment Interest Principal Present Value
January 1, 2021 2,412,000.00
December 31, 2021 720,000.00 361,800.00 358,200.00 2,053,800.00
December 31, 2022 720,000.00 308,070.00 411,930.00 1,641,870.00
December 31, 2023 720,000.00 246,280.50 473,719.50 1,168,150.50
December 31, 2024 720,000.00 175,222.58 544,777.43 623,373.08
December 31, 2025 720,000.00 96,626.93 623,373.08 0.00
3,600,000.00 1,188,000 2,412,000.00
On January 1, 2021, Belle Company purchased equipment from Silk Company by issuing a non-interest bearing note amounting to P2,400,0
The noninterest-bearing note effective interest rate is 11% as payment and is payable in 8 equal payments beginning January 1, 2021.
(Use 2 decimal places for PVF)
How much is the present value of the note on December 31, 2021 (round-off answer to the nearest peso amount)?

Annual payment 300,000.00
Multiplied by PV factor 5.71
Equipment 1,713,000.00
Note payable, face amount 2,400,000.00

Less: Present value of the note 1,713,000.00
687,000.00
11%
Jan 1 1,713,000.00
Jan 1 300,000.00 300,000.00 1,413,000.00
dece 300,000.00 155,430.00 144,570.00 1,268,430.00
300,000.00 139,527.30 160,472.70 1,107,957.30
300,000.00 121,875.30 178,124.70 929,832.60
300,000.00 102,281.59 197,718.41 732,114.19
300,000.00 80,532.56 219,467.44 512,646.75
300,000.00 56,391.14 243,608.86 269,037.89
300,000.00 30,962.11 269,037.89
2,400,000.00 687,000.00
On January 1, 2021, Wales Company purchased a machine from Scottland Company by paying P250,000 cash as a down payment and issuin
The noninterest-bearing note with an effective interest rate of 15% is payable in 3 annual equal payments beginning December 31, 2021.
The company uses 2 decimal places for PVF.
How much is the current portion of the note payable on December 31, 2021 (round-off answer to the nearest peso amount)?
Equipment 820,000.00
Note payable face amount 1,000,000.00

15%
Jan 1 570,000.00
Dec 2021 250,000.00 85,500.00 164,500.00 405,500.00
Dec 2022 250,000.00 60,825.00 189,175.00 216,325.00
Note payable current December 31, 2022 250,000.00

Carrying amount, Current 164,500.00
On January 1, 2021, Ireland Company purchased a machine from England Company by paying a P100,000 down payment and issuing a non
The entity issued a noninterest-bearing note with an effective interest rate of 10% as payment.
It is payable in 3 equal annual payments beginning December 31, 2021.
The company uses 2 decimal places for PVF.
How much is the carrying amount of the note payable on December 31, 2021 (round-off answer to the nearest peso amount)?
Equipment 847,000.00
10%
747,000.00
300,000.00 74,700.00 225,300.00 521,700.00
On January 1, 2021, Switzerland Company purchased a machine from Denmark Company by paying a P50,000 down payment and issuing a
Switzerland issued a noninterest-bearing note with an effective interest rate of 8% and is payable on December 31, 2023. The company uses
How much is the discount on the note payable on January 1, 2021?
Equipment

less: present value 300,650.86 278,000.00
Discount on note payable, Jan 1 49,349.14 72,000.00
On January 10, 2021, Mariah Company purchased merchandise inventory with a list price of P200,000. The terms of payment include 3/10
On January 25, 2021, the entity paid the accounts payable.
Under the net method, how much is the other expense?
Solution Since hindi siya na ano sa mismong discount date 1% lang
200,000.00
90%
92%
165,600.00
1%
1,656.00
1. When will a short-term obligation be reported as noncurrent?

- The entity has the discretion to refinance as long-term
2. Which is not a characteristic of a liability?
- It must be payable in cash or non-financial assets.
3. What is the classification of a 60-day bank loan and renewable for another 120 days?
- Current liabilities
4. When the word accrued is used in connection with current liabilities?
- an expense has been incurred but it is unpaid at the balance sheet date
5. Which of the following shall be classified as non-current liabilities?
- Financial liabilities that provide financing but are not due for settlement within 12 months after the reporting period
6. Which is generally correct?
- Note payable are generally recorded at face value and measured at present value
1,000,000.00
45,000.00
300,000.00
250,000.00
75,000.00
5,000,000.00
500,000.00
50,000.00
1,000,000.00
-
300,000.00
250,000.00
-
5,000,000.00
-500,000.00
6,050,000.00
of 5% and 2%.
10%
150,000
5.34
801000
will just get the 4 period of PV then add to 1 since magsstart na sha ng payment
1,200,000
801000
399,000
150,000.00 80100 69,900.00 801000 870,900.00
walang interest kase kakabayad palang

payable maturing on December 31, 2022.
LUMP to since one time lang babayaran
kaya present value ng 1 gagamitin

di mo na kailangang imus sa 1 at idivide sa 14%
rest bearing note amounting to P2,400,000.
ments beginning January 1, 2021.
0,000 cash as a down payment and issuing a non-interest bearing note amounting to P750,000.
ents beginning December 31, 2021.
nearest peso amount)?

00,000 down payment and issuing a non-interest bearing note amounting to P900,000.
e nearest peso amount)?
a P50,000 down payment and issuing a noninterest-bearing note of P350,000

December 31, 2023. The company uses 3 decimal places for PVF.
00. The terms of payment include 3/10, 2/15, n/30. Trade discounts are 10% and 8%.
onths after the reporting period
-69,900.00
MODULE 6
On January 1, 2020, Veruska Company issued 3-year bonds with a face amount of P3,000,000 at P97. Additionally, the entity paid a bond i
The nominal rate is 8% and the effective rate after considering bond issue cost is 10%.
How much is the carrying amount of the bonds payable on January 1, 2020?
Solution
Face amount 3,000,000.00 5,000,000.00
Issue Price 2,910,000.00
Diiscount on bond payable 90,000.00
Add: Bond issue cost 59,400.00
Total Discount on bonds payable 149,400.00

Less: Dicount on bonds payable 149,400.00
Carrying amount/ Present value 2,850,600.00

Initial Carrying amount
Issue price 2,910,000.00
Less: bond issue cost 59,400.00 2,850,600.00
Discount on bonds payable 149,400.00
Other solution if the issue price is not included

Nominal Interest 240,000.00
Effective interest
face amount of bonds 3,000,000.00
multiplied effective rate 10% 300,000.00
multiplied by PV OA 2.4900
Discount on bonds 149,400
Face amount of the bonds 3,000,000.00
Present Value of the bonds 2,850,600.00

Less: Present value 2,850,600.00
Discount on bonds 149,400.00
8% 10%
Amortization Table Interest paid Interest expense Amortization carrying amount
Jan 1 2020 2,850,600.00
Dec 31 2020 240,000.00 285,060.00 45,060.00 2,895,660.00
Dec 2021 240,000.00 289,566.00 49,566.00 2,945,226.00
Dec 2022 240,000.00 294,522.60 54,774.00 3,000,000.00
720,000.00 869,148.60 149,400.00
On January 1, 2020, Veruska Company issued 3-year bonds with a face amount of P3,000,000 at P106. Additionally, the entity paid a bond
How much is the carrying amount of the bonds payable on December 31, 2020?
Soulution
Face amount 3,000,000.00 1,500,000.00
Issue Price 3,180,000.00 ###
Premium on bond payable 180,000.00 ###
Less: Bond issue cost 30,600.00
Total Premium on bonds payable 149,400.00

Add: Premium on bonds payable 149,400.00
Carrying amount/ Present value 3,149,400.00

Initial Carrying amount
Issue price 3,180,000.00
Less: bond issue cost 30,600.00 3,149,400.00
Premium on bonds payable 149,400.00
Other solution
Effective interest
Premium on bonds 149,400.00
10%
Amortization Table Interest paid Interest expense Amortization carrying amount
Jan 1 2020 3,149,400.00
Dec 31 2020 360,000.00 314,940.00 45,060.00 3,104,340.00
Dec 2021 360,000.00 310,434.00 49,566.00 3,054,774.00
Dec 2022 360,000.00 305,226.00 54,774.00 3,000,000.00
1,080,000.00 930,600.00 149,400.00
On January 1, 2021, Aruba Company reported bonds payable of P5,000,000 and a related unamortized discount of P275,000.
On that day, the entity retired bonds of 2,500,000 of the outstanding bonds at face amount plus a call premium of P80,000.
How much is the loss on the early retirement of bonds in 2021?
Solution
Bonds Payable, face amount 5,000,000.00
Less: Unamortized discount 275,000.00
Bonds payable, carrying amount 4,725,000.00
Multiplied by retires bonds ratio
Retired portion 2,500,000.00
Divided by total bonds 5,000,000.00 0.50
Bonds payable, carrying amount ( retired portion) 2,362,500.00
Less: retirement price 2,580,000.00
Loss on the early retirement of bonds 217,500.00
On January 1, 2021, Mexico Company issued bonds payable with a face amount of P5,000,000 and a stated rate of 12% at P90. The entity
The bonds have a 5-year term and interest is payable annually every December 31.
The entity elected the fair value option. On December 31, 2021, the fair value of the bonds is P108.
It is reliably determined that the fair value increase comprised P200,000 attributable to credit risk and the remainder attributable to chang
How much is the gain or loss on change in the fair value of bonds?
Solution
Bonds payable, face amount 5,000,000.00
multiplied by stated rated 12%
Interest expense 600,000.00

multiplied by issue price rate 90%
Bonds payable, carrying amount jan 4,500,000.00
fair value dec 31 5,400,000.00
Total change in fair value of bonds -900,000.00
Less: Loss on credit risk-OCI 200,000.00
Change in fair value of bonds -700,000.00
Face amount P2,550,000 2,550,000.00

Nominal rate 14%
Effective rate 15%
Date of issue January 1, 2021
Annual payment every December 31 P850,000 (Principal and interest)
Interest is payable annually every December 31
The entity used 3 decimal places for the PVF
1.What is the present value of the bonds payable on January 1, 2021?

Present value of the bonds payable:
Date Principal payment Interest payment Total Payment PV factor
12/31/2021 850,000 357,000 1,207,000 0.870
12/31/2022 850,000 238,000 1,088,000 0.760
12/31/2022 850,000 119,000 969,000 0.660
Total Present Value
Face amount
2. What is the present value of the bonds payable on December 31, 2021?
Date Interest paid 12% Interest expense 14% Amortization Principal Payme
1/1/2021
12/31/2021 306,000 377,476.50 71,476.50 850,000.00
12/31/2022 204,000 260,697.98 56,697.98 850,000.00
12/31/2023 102,000 141,702.67 15,807.38 850,000.00
612,000.00 779,877.15 143,981.86 2,550,000.00
On January 1, 2021, Taryn Company issued a 3-year bond with a face amount of P1,200,000.
The nominal rate is 8% and the effective rate is 9%.
The interest is payable annually on December 31. The entity used the effective interest method and 2 decimal places for the PVF.
How much is the carrying amount of the bonds payable on December 31, 2021 (round-off answer to the nearest peso value)?
SOLUTION
Nominal Interest
Effective interest
multiplied effective rate 9%
Difference
multiplied by PV OA
Discount on bonds
Face amount of the bonds

Present Value of the bonds
Interest Paid Interest expens Amortization
Jan 1
Dec 31 2021 96,000.00 105,267.60 9,267.60
On January 1, 2021, Lala Company issued 3-year bonds with a face amount of P2,700,000 at P98.
The entity paid a bond issue cost of P75,600.
The interest is payable annually on December 31. The entity used the effective interest method and used 2 decimal places for the PVF.
How much is the discount on bonds payable on December 31, 2021?
Solution Amortization table:
Issue Price 2,646,000.00 270,000.00
Diiscount on bond payable 54,000.00 270,000.00
Add: Bond issue cost 75,600.00 270,000.00
Total Discount on bonds payable 129,600.00
Face amount 2,700,000.00 To get the discount:

Less: Dicount on bonds payable 129,600.00 Dec 31 2021 amortization
Carrying amount/ Present value Jan 1 2,570,400.00 Less: Discount on bonds pay
On January 1, 2021, Alicia Company issued 3-year bonds with a face amount of P2,250,000.
The entity paid a bond issue cost of P18,900.
The interest is payable annually on December 31. The entity used the effective interest method and 2 decimal places for the PVF.
How much is the carrying amount of the bonds payable on December 31, 2021?
Solution:
Effective interest
Premium on bonds 116,100.00
225,000.00 189,288.00 35,712.00

225,000.00 186,431.04 38,568.96
225,000.00 183,180.96 41,819.04
116,100.00
On January 1, 2021, Milka Company issued bonds payable with a face amount of P3,600,00 and a stated rate of 9% at P103. The effective ra
The bonds have a 3-year term and interest is payable annually every December 31.
The entity elected the fair value option. On December 31, 2021, the fair value of the bonds is P105 and the risk attributable to nonpayment is
How much is the Unrealized loss on change in the fair value of bonds reported in the Income statement?
Solution
multiplied by stated rated 9%
Interest expense 324,000.00

multiplied by issue price rate 103%
Bonds payable, carrying amount jan 1 3,708,000.00
fair value dec 31 3,780,000.00
Total change in fair value of bonds 72,000.00
Less: Loss on credit risk-OCI 46,800.00
Change in fair value of bonds 25,200.00
1. Whatbonds
- Term are bonds that mature on a single date?
2. What are bonds issued with scheduled maturities at various dates?

-Serial bonds
3. When Bonds payable is recorded other than amortized cost using the effective interest method, bonds are equal to what?
- Fair value
4. How should bonds payable subsequently measured?
- At amortized cost or FVPL only
5. What is the treatment of Bond Issue cost recorded under the fair value option?
- Outright expense
6. What does the amortized cost of the bonds mean?
- Face amount plus premium on bonds payable, minus bond discount and minus bond issue cost.
Solution:
Bonds payable, face amount
multiplied by stated rated
Interest expense
Bonds payable, face amount

multiplied by issue price rate
Bonds payable, carrying amount jan 1
fair value dec 31
Total change in fair value of bonds
Less: Loss on credit risk-OCI
Change in fair value of bonds
Interest received/ nominal interest

effective interest
Face amount of bonds
x by effective rate
Difference
x by PV of OA for 5periods at %
Premium on bonds
Face amount on bonds
Present value of the bonds
Interest rec.= face amount * nominal rate

Interest inc.= Carrying amount * effective rate
Amortization= Interest income less interest rec.
Carrying amount end= Carrying amount beg. + Discount amort. - Premium amort.
ally, the entity paid a bond issue cost of P59,400.
ying amount
nally, the entity paid a bond issue cost of P30,600.

15,300.00 1,750,000.00
###
###
1,691,375.00
###
ying amount
nt of P275,000.
m of P80,000.
e of 12% at P90. The entity paid a bond issue cost of P200,000.
ainder attributable to change in the market interest rate.
Present Value
1,050,090.00
826,880.00
639,540.00
2,516,510.00
2,550,000.00
-33,490.00
Carrying amount
2,516,510.00
1,737,986.50
944,684.48
-
aces for the PVF.

SOLUTION
Nominal Interest 10% 1,500,000
96,000.00 Effective interest 8% 1,500,000
108,000.00 Difference
12,000.00 multiplied by PV OA
2.53 Discount on bonds
30,360.00
1,200,000.00 Face amount of the bonds
Present Value of the bonds
1,169,640.00
1,169,640.00
1,178,907.60 1,178,908.00 nearest peso value 150,000 110424 39,576
al places for the PVF.
ortization table: Solution

2,570,400.00 Face amount
308,448.00 38,448.00 2,608,848.00 Issue Price
313,061.76 43,061.76 2,651,909.76 Diiscount on bond payable
318,090.24 48,090.24 2,700,000.00 Add: Bond issue cost
129,600.00 Total Discount on bonds payable
get the discount: Face amount

31 2021 amortization 38,448.00 Less: Dicount on bonds payable
s: Discount on bonds payab 129,600.00 Carrying amount/ Present value Jan 1
count on bonds payable 91,152.00
aces for the PVF.
2,366,100.00
2,330,388.00
2,291,819.04
2,250,000.00
9% at P103. The effective rate is 10%.
ttributable to nonpayment is 65%.
nds are equal to what?

150000
120000
30000
3.99
119700
1,500,000
-1,380,300
1,380,300
1,340,724

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The related data of Thailand Company on December 31, 2022:

Cash in checking account P 350,000

The related data of Colombia Company:

How much is the adjusted cash balance?

How much is the unadjusted cash balance per ledger?

Oklahoma Company prepared the following bank reconciliation on March 31:

Turkey Company related data for December 31, 2021:

Cash in Bank per bank statement 735,000.00

Cambodia Company available data for August 31, 2021, are:

Adjusted Cash in Bank 318,000.00

The related data of V Company:

Accounts receivable, beginning P395,200

Allowance for bad debts

Accounts receivable 690,200.00

Accounts Particular Debit Credit

Allowance for Bad Debts

Accounts Receivable 690,200.00

On January 1, 2021, Jin Company sold equipment at a cost of P400,000

Face value of the note 450,000.00 500k-50k

On January 1, 2021, Jin Company sold equipment at a cost of P400,000

Date of cash flow Amount projected PV of 1

December 31, 2020 P500,000 Year 1 0.8929

December 31, 2021 1,000,000 Year 2 0.7972

December 31, 2022 1,500,000 Year 3 0.7118

The prevailing rate is 12%

How much is the impairment loss?

Carrying amount of loan 3,300,000.00

1. Which is included in “cash”?

issued check... 5,400.00

een recorded for P98,700.

16% 750,000 1,500,000.00 4,000,000

2452500 4,000,000 2,266,000 1,734,000

minus: presnt value and principal

ning December 31, 2021. The effective rate is 10%

tity on March 15 of the current year.

Luxemburg Company purchased the following investments during 2021:

Initial Cost Transaction cost Fair value Year-end 2021

Security 528,000.00 52,800.00 556,000.00

Security B 862,500.00 86,250.00 843,000.00

Luxemburg Company purchased the following investments during 2021:

Initial Cost Transaction cost Fair value Year-end 2021

Security 528,000.00 52,800.00 556,000.00

Security B 862,500.00 86,250.00 843,000.00

Luxemburg Company purchased the following investments during 2021:

Initial Cost Transaction cost Fair value Year-end 2021

Security 528,000.00 52,800.00 556,000.00

Security B 862,500.00 86,250.00 843,000.00

Retained earnings 105,750.00

The related data of Estonia Company:

Entity Received 15,000.00

1. Which of the following is not a category of financial assets?

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Security No. of shares Initial Cost Fair value Transaction cost

A 2,000 P100,000 P115,000 P10,000

B 3,000 105,000 138,000 10,500

C 5,000 200,000 210,000 20,000

ny had a 10% ownership. 30, 2021.

ch is the date of payment is P182,000. Estonia had a 9% interest in Argentina COmpany