Professional Documents
Culture Documents
PROBLEMS
2. A
3. D
4. D
2. D
3. A
4. C
5. A
1. B
2. C
3. C
4. B
PROBLEMS
ASSETS
Non-current Assets
Property, plant and equipment 3,520,000
Investment property 2,500,000
Total non-current assets 6,020,000
Current Assets
Inventory 1,180,000
Accounts receivable 1,700,000
Cash and cash equivalents 230,000
Total current assets 3,110,000
TOTAL ASSETS 9,130,000
EQUITY AND LIABILITIES
Equity attributable to owners of the parent
Share capital 1,500,000
Retained earnings 2,690,000
Non-controlling interest 730,000
TOTAL EQUITY 4,920,000
Non-current liabilities
Long-term debt 1,800,000
Environmental restoration provision 280,000
Total non-current liabilities 2,080,000
Current Liabilities
Trade payables 250,000
Accrued payables 200,000
Current portion of the long-term debt 500,000
Interest accrued on long-term debt 230,000
Warranty provision 400,000
Provision for vacation leave 450,000
Dividends payable 100,000
Total current liabilities 2,130,000
TOTAL LIABILITIES 4,210,000
TOTAL LIABILITIES AND EQUITY 9,130,000
Problem 25-2 (IFRS)
SME
As of December 31,2020
ASSETS
Non-current assets
Property, plant and equipment:
Vacant land 320,000
Land and buildings 960,000
Plant 450,000
Equipment 830,000
Investment property 650,000
Intangible assets 1,520,000
Investment in associates 560,000
Deferred tax asset 30,000
Total non-current assets 5,320,000
Current assets
Inventories 1,580,000
Trade and other receivables 120,000
Prepayments 50,000
Cash and cash equivalents 130,000
Total current assets 1,880,000
TOTAL ASSETS 7,200,000
EQUITY AND LIABILITIES
Equity attributable to owners of the parent
Share capital 2,500,000
Treasury shares (400,000)
Retained earnings 1,000,000
Other reserves 500,000
Non-controlling interest 300,000
TOTAL EQUITY 3,900,000
Non-current liabilities
Interest-bearing loans and borrowings- 950,000
noncurrent
Government grants – noncurrent 100,000
Deferred revenue 10,000
Other long-term liabilities 210,000
Deferred tax liability 50,000
Long-term provisions 180,000
Total non-current liabilities 1,500,000
Current liabilities
Trade and other payables 960,000
Interest-bearing loans and borrowings 500,000
Government grants – current 130,000
Deferred revenue – current 60,000
Income tax payable 25,000
Short-term provisions 125,000
Total Current liabilities 1,800,000
TOTAL LIABILITIES 3,300,000
TOTAL LIABILITIES AND EQUITY 7,200,000
SME
Statement of Income
Revenue 6,000,000
Less: Cost of goods sold (3,700,000)
Gross margin 2,3000,000
Other income 100,000
Total income 2,400,000
Less: Expenses
Employee benefit expense 800,000
Depreciation and amortization expense 400,000
Other expenses 80,000
Finance cost 120,000
Income before income tax 1,000,000
Less: Income tax expense 300,00
Net Income 700,000
SME
1. C
2. D
10,000 – 4,000 = 4,000
3. D
700,000 + 4,000 = 704,000
1. C
6,700,000 + 120,000 – 5,100,000 + 25,000 + 60,000 = 1,805,000
2. A
1,805,000 – 175,000 – 810,000 – 70,000 – 30,000 – 20,000 – 5,000 – 260,000 = 435,000
3. B
2,100,000 + 435,000 – 150,000 = 2,385,000
1. D
2. A
3. D
4. A
5. A
Problem 25-7 Multiple choice (IFRS)
1. D
2. D
3. A
4. D
5. D
1. B
2. D
3. C
4. A
1. B
2. B
3. B
4. C
5. B
CH. 26
Problem 26-1
1. A
Problem 26-2
1. D
Cash 25,000
Dividend income 25,000
ENTITY C
Investment in associate 1,515,000
Cash 1,515,000
Cash 200,000
Dividend income 200,000
ENTITY D
Investment in associate 2,828,000
Cash 2,828,000
Equity method:
ENTITY B
Investment in associate 1,010,000
Cash 1,010,000
Cash 25,000
Investment in associate 25,000
ENTITY C
Investment in associate 1,515,000
Cash 1,515,000
Cash 200,000
Investment in associate 200,000
ENTITY D
Investment in associate 2,828,000
Cash 2,828,000
Cash 25,000
Dividend income 25,000
ENTITY C
Financial asset – FVPL 1,500,000
Cash 1,500,000
Cash 200,000
Dividend income 200,000
ENTITY D
Financial asset – FVPL 2,800,000
Cash 2,800,000
Problem 26-4
1. D
P1,020,000 – P40,000 = P980,000
2. A
P1,020,000
Problem 26-5
1. B
P15,000,000 – P13,250,000 = P1,750,000 – (P2,500,000 X 0.30) = P1,000,000
2. C
P20,000,000 X 30% = P6,000,000
P750,000/5 = P150,000
P1,000,000/10 = P100,000
P6,000,000 – 150,000 – 100,000 = P5,750,000
3. A
P7,500,000 X 30% = P2,250,000
P15,000,000 + P5,750,000 – 2,250,000 = P18,500,000
Problem 26-6
Journal entries:
Jan 1, 2020 Investment property 180,000,000
PPE (land and 20,000,000
building)
Cash 200,000,000
Cash 270,000
Refundable 270,000
deposits – liability
Cash 1,550,000
Rent income 1,550,000
1. B
2. A
3. A
4. A
5. C
26-8
1. D
2. B
3. B
4. A
5. D
6. A
7. C
8. B
9. C
10. C
26-9
1. D
2. C
3. D
4. D
5. D
6. B
7. D
8. B
26-10
1. D
2. C
3. B
4. D
5. D
CH. 27
Problem 27-1
Journal entries:
January 1, 2020 Land and buildings 50,000,000
Cash 50,000,000
Problem 27-2
January 1, 2020 Cash 1,000,000
Liability 1,000,000
PPE 2,100,000
Cash 2,100,000
April 1, 2021 Liability 600,000
Government grant- 600,000
income
Problem 27-3
January 1, 2020 Trademark 3,000,000
Cash 3,000,000
Problem 27-4
1. A – 30,000 + 90,000 = P120,000
2. B – 120,000/5 = 24,000 X ½ = P12,000
3. C – 15,000 + 10,000 + 25,000 + 12,000 = P62,000
27-5
1. C
2. A
3. C
4. C
27-6
1. A
2. D
3. A
4. B
5. D
27-7
1. B
2. B
3. D
4. B
5. B
27-8
1. C
2. B
3. A
4. D
5. D
CH.28
Problem 28-1
D
P10,000,000 X 0.10 X 0.03 = P30,000
P10,000,000 X 0.90 X 0.02 = P180,000
P210,000 X 1.06 = P222,600
P222,600 X 0.50 = P111,300
P222,600 – P111,300 X 0.95238 = P106,000
Problem 28-2
D
P200,000 X 0.20 X 0.70 = P28,000
P100,000 X 0.80 X 0.70 = P56,000
P28,000 + P56,000 = P84,000 X 1.07 = P89,880
D
P89,880 X 0.95 = P85,386
28-3
1. A
2. D
3. D
4. B
5. A
28-4
1. D
2. D
3. C
4. D
5. A
28-5
1. A
2. B
3. B
4. B
5. B
28-6
1. D
2. A
3. A
4. C
5. B
6. C
7. A
8. D
9. B
10. A
Problem 28-7
1. D
2. C
3. C
4. D
CH.29
Problem 29-1
1. A
2. C
3. B
4. C
5. B
Problem 29-2
1. B
2. C
3. D
4. A
5. C
6. C
7. D
8. D
9. C
10. C
Problem 29-3
1. D
2. D
3. B
4. C
5. A
6. D
7. D
8. D
9. C
10. B
CH.30
Problem 30-1
1. D
2. D
3. C
4. C
5. C
Problem 30-2
1. D
2. A
3. C
4. A
5. A
Problem 30-3
1. C
2. C
3. D
4.C
5. D
6. A
7. A
8. A
9. D
10. A
Problem 30-4
1. B
2. A
3. C
4. C
5. A
6. C
7. A
8. A
9. C
10. B