Intacc Solman

FRANZ KYLLE POCSON UPV BSA
Problem 1-1 Problem 1-2 Problem 1-3 Problem 1-4 Problem 1-5 Problem 1-6 Problem 1-7
1D 1D 1D 6 A 1C 1A 1C 1B
2A 2C 2D 7 D 2C 2D 2A 2B
3A 3B 3D 8 A 3C 3A 3B 3C
4D 4B 4D 9 D 4C 4C 4D 4B
5B 5B 5A 10 B 5D 5C 5C
Problem 2-1
Dillema Company
Statement of Financial Position
December 31, 2019
ASSETS
Current Assets Notes

Cash P 800,000
Account Receivable—net 700,000
Prepaid Expenses 160,000
Inventory 1,000,000
Financial Assets over Fair Value 440,000
Total Current Assets P 3,100,000
Noncurrent Assets
Property, Plant, and Equipment (1) 6,700,000
Intangible Asset (2) 200,000
Total Noncurrent Assets 6,900,000
Total assets P 10,000,000
LIABILITIES AND SHARESHOLDER’S EQUITY
Current Liabilities
Trade Payables (3) 1,200,000
Total Current Liabilities 1,200,000
Noncurrent Liabilities
Notes Payable 250,000
Bonds Payable—net 1,800,000
Total Noncurrent Liabilities 2,050,000
Equity
Share Capital 3,000,000
Reserves (4) 250,000
Retained Earnings (5) 3,750,000
Treasury Shares (250,000)
Shareholder’s Equity 6,750,000
Total Liabilities and Shareholder’s Equity P 10,000,000
Notes
1 Building 5,000,000 Accumulated Depreciation (300,000)
Equipment 1,500,000 Property, Plant and Equipment 6,700,000
Land 500,000
114 INTERMEDIATE ACCOUNTING VOL 3 VALIX

2 Patent 200,000 5 Retained Earnings 4,000,000

Intangible Asset 200,000 Canceled appropriation 150,000
Treasury Appropriation (250,000)
3 Accounts Payable 900,000 Loss on Lawsuit (100,000)
Accrued Expenses 200,000 Accrued Interest (50,000)
Lawsuit Liability 100,000 TOTAL 3,750,000
Trade and other Payables 1,200,000
Retained Earnings 400,000
4 Appropriated for Treasury Shares Interest Payable 50,000
250,000 Lawsuit Liability 100,000
Retained Earnings – Appropriated 250,000
Problem 2-2
Socorro Company
December 31, 2019
ASSETS

Cash and Cash Equivalents (1) P 700,000
Account Receivable—net (2) 700,000
Store Supplies 50,000
Inventory 600,000
Restricted Cash 300,000
Noncurrent Assets
Property, Plant and Equipment (3) 4,150,000
Long-term Investments (4) 1,500,000
Intangible Assets (5) 550,000
Advances to officers 150,000
Current Liabilities
Trade Payables (6) 750,000
Current Portion of Long-term debt 100,000
Total Current Liabilities 850,000
Serial Bonds Payable 400,000
Unearned Income 350,000
Total Noncurrent Liabilities 750,000
Equity
Share Capital (7) 5,150,000
Reserves (8) 1,050,000
Retained Earnings (9) 1,200,000
Treasury Shares (300,000)

Notes
1 Cash 500,000 3 Building 3, 500,000
Money Market 200,000 Equipment 1,000,000
Total Cash and Cash Equivalents 700,000 Land 400,000
Accumulated Depreciation (750,000)
2 Accounts Receivable 750,000 Property, Plant and Equipment 4,150,000
Allowance for Doubtful accounts 50,000
Total Cash and Cash Equivalents 700,000
7 Share Capital, beg 5,000,000

4 Cash 500,000 Stock Dividend 150,000
Money Market 200,000 Share Capital, end 5,150,000
Total Cash and Cash Equivalents 700,000
8 Share Premium 250,000
5 Patent 250,000 Retained Earnings for Plant exp 500,000
Trademark 300,000 Retained Earnings for Treasury 300,000
Intangible Assets 550,000 Reserves 1,050,000
6 Accounts Payable 500,000 9 Retained Earnings, beg 1,500,000

Income Tax Payable 150,000 Appropriation for Treasury 300,000
Notes Payable 100,000 Retained Earnings, end 1,200,000
Trade Payables 750,000
Problem 2-3
Magna Company
December 31, 2019
ASSETS
Cash P 400,000
Accounts Receivable, net (1) 700,000
Inventories 800,000
Prepaid Expenses 100,000
Short Term Investment 100,000
Noncurrent Assets
PPE (2) 5,650,000
Long Term Investments (3) 1,800,000
Intangible Assets (4) 300,000
LIABILITIES AND SHAREHOLDER’S EQUITY

Current Liabilities
Trade Payables (5) 1,000,000

Bonds Payable, net (2,000,000 – 100,000) 1,900,000
Equity
Preference share, no par, P5 stated value,
authorized 300,000 shares, issued 150,000 shares 750,000
Ordinary share, P20 par value, authorized 400,000
Shares, issued 100,000 shares 2,000,000
Reserves (6) 1,450,000
Retained Earnings 2,450,000
Total Shareholder’s Equity 6,650,000
Notes:
1 Accounts Receivable 750,000 4 Franchise 100,000
Allowance for Doubtful accounts 50,000 Goodwill 200,000
Total Cash and Cash Equivalents 700,000 Intangible Assets 300,000
2 Building 5,000,000 5 Accounts Payable 400,000

Equipment 1,400,000 Income Tax Payable 150,000
Land 1,250,000 Notes Payable 450,000
Accumulated Depreciation (2,000,000) Trade Payables 1,000,000
Property, Plant and Equipment 5,650,000
6 Excess of Stated 250,000
3 Investment Property 1,500,000 Excess of Par 1,000,000
Investment in Securities 250,000 Appropriation for Contingencies 200,000
Cash surrender value 50,000 Share Capital, end 1,450,000
Total Cash and Cash Equivalents 1,800,000
Problem 2-4
Boracay Company
December 31, 2019
ASSETS
Cash (1) P 1,200,000
Trade and other Receivables (2) 1,000,000
Financial Asset – Fair Value 400,000
Inventory 1,000,000
Office Supplies 50,000
Noncurrent Assets
PPE, net (3) 3,950,000
Goodwill 100,000


Current Liabilities
Trade Payables 1,500,000
Other Payables (4) 550,000
Mortgage Payable 2,000,000
Equity
Ordinary share, P100 par value, issued 30,000 shares 3,000,000
Share Premium 200,000
Notes:
1 Money Market – 3 mos 500,000
Cash 700,000 4 Accrued Salaries 250,000
Total Cash and Cash Equivalents 1,200,000 Accrued Interest 200,000
Tax Payable 100,000
2 Accounts Receivable 800,000 Other Payables 550,000
Notes Receivable 200,000
Trade and other Payable 1,000,000 5 Net Assets - Equity 4,200,000
Contributed Capital 3,200,000
3 Land 1,000,000 Excess, Retained Earnings 1,000,000
Office Equipment 250,000 Unrecorded Exp:
Building 3,000,000 Depreciation 300,000
Acc Dep – Building (300,000) Accrued Salaries 250,000
Property, Plant, & Equipment 3,950,000 Adj, Retained Earnings 450,000
Problem 2-5
Dakak Company
December 31, 2019
ASSETS
Cash and Cash Equivalents P 500,000
Accounts Receivables 750,000
Financial Asset – Trading 600,000
Inventory 850,000
Noncurrent Assets
PPE, net (1) 4,000,000
Long term Investments 2,250,000

Current Liabilities
Trade & other Payables (2) 1,500,000

Currently Portion of Bonds Payable 500,000

Bonds Payable 1,500,000
Advances from officers 200,000
Equity
Ordinary share, P100 par value, issued 50,000 shares 5,000,000
Retained Earnings (deficit) (3) (1,050,000)
Notes:
1 Property, Plant, & Equipment 6,000,000 3 Equity 4,800,000
Acc Dep 2,000,000 Contributed Capital 5,500,000
PPE, Net 4,000,000 Deficit, Retained Earnings (700,000)
Losses – Goodwill (350,000)
2 Accrued Expenses 100,000 Adj, Retained Earnings 1,050,000
Customers’ Deposit 400,000
Accounts Payable 1,000,000
Other Payables 1,500,000
Problem 2-6
A. Cash P 1,500,000
Accounts Receivable 1,200,000
Inventory 1,000,000
FA – Trading 300,000
Equipment held for sale 2,000,000
TOTAL P 6,000,000
Problem 2-7
B. Cash and Cash Eq. P 700,000
Accounts Receivable:
Trade Accounts 930,000
ADA (20,000)
Claims 30,000
Cost of Consigned
Goods 200,000 [260,000 / 130%]
Inventory 600,000
TOTAL P 2,440,000
Problem 2-8
B. Cash P 4,000,000 Excluding Cash Fund
Inventory 600,000 Excluding Consigned Goods
Prepaid Expenses 100,000 Excluding Deposit on Inventory
TOTAL P 6,700,000

Problem 2-9
C. Equity P 7,000,000 [5,000,000 + 2,500,000 – 500,000]
Liabilities 1,800,000
Assets P 8,800,000
Problem 2-10
A. Cash P 4,500,000
Accounts Receivable:
Trade Receivables 5,000,000
ADA (500,000)
Cost of Consigned
Goods 2,000,000
Notes Receivable, net 2,000,000
Inventory 4,000,000
TOTAL P 17,000,000
Problem 2-11
A. Equity P 7,500,000
Net Income 1,800,000 [8,200,000 – 6,400,000]
TOTAL P 11,300,000
Problem 2-12
C. Accounts Payable P 1,900,000
Dividends Payable 500,000
Income Tax Payable 900,000
TOTAL P 3,900,000
Problem 2-13
A. Accounts Payable P 4,100,000 no offsetting
Accrued Expenses 1,500,000
Credit Balances 500,000
Estimated Expenses 600,000
TOTAL P 6,700,000
Problem 2-14
1. B
2. C
Current Liabilities:
Accounts Payable P 2,200,000 no offsetting
Accrued Expenses 800,000
Income Tax Payable 1,100,000
TOTAL P 4,700,000
Non Current Liabilities

Bonds Payable 4,500,000
Premium on Bonds 500,000
Deferred Tax Liability 500,000
Long Term Notes
6% 1,500,000
8% 1,000,000
TOTAL P 8,000,000

Problem 2-15
1. A
2. C
3. A
Adjusting Entry:
Cash 300,000
Accounts Payable 300,000
To revert the undelivered check to cash
Current Assets
Cash P 200,000 Undelivered Check, net of cash overdraft
Accounts Receivable 350,000
Inventory 580,000
Prepaid expenses 120,000
Land held for sale 1,000,000
TOTAL P 2,250,000
Current Liabilities
Accounts Payable 500,000 {200,000 + 300,000}
TOTAL P 650,000
Shareholders’ Equity
TOTAL P 2,550,000
Problem 2-16
1. C
2. B
Current Assets
Cash P 5,000,000
Accounts Receivable 6,000,000 Excluding the 2,000,000 net of
2 semi annual payments of 500,000
Inventory 6,000,000
TOTAL P 11,000,000
Retained Earnings, beg 5,000,000

Net Income before Tax 5,000,000
Income Tax (1,500,000)
Retained Earnings, end P 8,500,000
Problem 2-17
1. B
2. A
3. C
4. C
Retained Earnings, unappropriated P 900,000

Retained Earnings, restricted 160,000
Income Tax (450,000)
Total Retained Earnings P 2,110,000

Current Assets
Cash P 600,000
Cost in excess of billings 1,600,000
TOTAL P 5,700,000
Share Capital 750,000
Share Premium 2,030,000
TOTAL P 4,890,000
Problem 2-18
1. D
2. A
3. C
Current Assets
Cash P 600,000
Accounts Receivable 2,300,000 Excluding the 500,000 net of
4 quarterly payments of 125,000
Inventory 2,000,000
TOTAL P 4,900,000
Current Liabilities
Accounts Payable &
Accrued Liabilities 1,800,000
Income Tax Payable 900,000 Income Tax Payment of 600,000
TOTAL P 2,700,000

Net Income 5,000,000
Income Tax 1,500,000 Deduct 600,000
Problem 2-19
D. Accounts Payable P 500,000
Accrued Interest Payable 200,000 [ 5,000,000 x 8% x 6/12 ]
Income Tax Payable 800,000
Current Liabilities P 2,500,000
Problem 2-20
A. Accounts Payable P 6,500,000
Bank Note Payable 3,000,000
Mortgage Payable 2,000,000
Bonds 4,000,000
Accrued Interest:
10% - Bank 100,000 [ 3,000,000 x 10% x 4/12 ] Sept-Dec
10% - Mortgage 50,000 [ 2,000,000 x 10% x 3/12 ]
TOTAL P 15,650,000

Problem 2-21
1D 6 D
2C 7 D
3A 8 B
4D 9 D
5D 10 A
Problem 3-1 Problem 3-2 Problem 3-3

1D 1C 6 D 1A 5C
2A 2C 7 C 2C 6B
3C 3D 8 D 3B 7A
4C 4B 9 C 4D 8A
5B 5D 10 D
Problem 4-1 Problem 4-2 Problem 3-3

1D 1D 6 B 1A 5C
2B 2B 7 C 2C 6B
3D 3C 8 D 3B 7A
4 D 4B 9 B 4D 8A
5D 5D 10 C
Problem 5-1
Adjusting Entries:
Dec 31,2019 Doubtful Accounts P 3,000,000
Loss on Lawsuit 500,000

Estimated Liability 500,000
DISCLOSURES
Feb 14,2020 A shipping vessel of Caroline with carrying amount of P5,000,000 was
completely lost at sea because of a hurricane.
The financial statements of 2019 are authorized for issue on March 20,2020.
Problem 5-2
B. P9,000,000 The event(s) is/are non adjusting, profit before tax is not affected
Problem 5-3
B. P3,500,000 Total estimated lawsuit liability amount
Problem 5-4
C. P1,000,000 Additional provision
Problem 5-5
D. Adjusting Events:
Profit Share Payment P 200,000
Doubtful Accounts 900,000
TOTAL P 1,100,000

Problem 5-6 Problem 5-7

1B 1D Problem 3-3
2D 2C 1A 5C
3D 3C 2C 6B
4C 4D 3B 7A
5B 5D 4D 8A
Problem 6-1
Masay Company
Statement of Cost of Goods Manufactured
Year Ended XX 2019
Raw Materials, beg. P 200,000

Add: Purchases 3,000,000
Raw Materials Available for use 3,200,000
Less: Raw Materials, end. 280,000
Raw Materials Used 2,920,000
Direct Labor 950,000
Factory Overhead:
Indirect Labor 250,000
Superintendence 210,000
Light, heat and power 320,000
Rent – Factory Building 120,000
Repair and Maintenance 50,000
Factory Supplies used 110,000
Depreciation – Machinery 60,000 1,120,000
Cost of Manufacturing 4,990,000
` Goods in Process, beg. 240,000
Cost of Goods in Process 5,230,000
Less: Goods in Process, end. (170,000)
Cost of Goods Manufactured P 5,060,000
Masay Company
Income Statement (Functional Method)
Year Ended XX 2019
Notes
Net Sales (1) P 7,450,000
Less: Cost of Goods Sold (2) 5,120,000
Gross Profit 2,330,000
Other Income (3) 210,000
Total Income 2,540,000
Expenses:
Distribution Costs (4) 830,000
Administrative Costs (5) 590.000
Other losses (6) 300,000 1,720,000
Income before Tax 820,000
Net Income P 500,000

Notes
1 Sales P7,500,000
Sales Return and Allowances (50,000)
Net Sales P7,450,000 4 Sales Salaries P 400,000
Advertising 160,000
2 Cost of Goods Manufactured P5,060,000 Depreciation – Store Equipment 70,000
Finished Goods, beg. 360,000 Delivery Expenses 200,000
Cost of Goods Available Distribution Costs P 830,000
for Sale P5,420,000
5 Office Salaries P 150,000
Finished Goods, end. (300,000)
Cost of Goods Sold P5,120,000 Depreciation – Office Equipment 40,000
Accounting and Legal Fees 150,000
3 Interest Income P 10,000 Office Expenses 250,000
Gain on sale of equipment 100,000 Administrative Costs P 590,000
Gain from expropriation of
Asset 100,000 6 Earthquake loss P 300,000
Other Income P 210,000 Other Losses P 300,000
Masay Company
Income Statement (Natural Method)
Year Ended XX 2019
Notes
Net Sales (1) P 7,450,000
Expenses:
Decrease in Inventory (3) 130,000
Raw Materials Used (4) 2,920.000
Salaries (5) 550,000
Depreciation (6) 110,000
Advertising 160,000
Office Expenses 250,000
Delivery Expense 200,000
Product Cost (7) 2,070,000
Accounting and Legal fees 150,000
Other Losses (8) 300,000 6,840,000
Income before Tax 820,000
Notes 3 Inventories:
1 Sales P7,500,000 Goods in Process, beg. P240,000
Sales Return and Allowances (50,000) Goods in Process, end. 170,000
Net Sales P7,450,000 Decrease P 70,000
2 Interest Income P 10,000 Finished Goods, beg. P360,000

Gain on sale of equipment 100,000 Finished Goods, end. 300,000
Gain from expropriation of Decrease P 60,000
Asset 100,000
Other Income P 210,000 TOTAL DECREASE P130,000

4 Raw Materials, beg. P 200,000 7 Direct Labor P950,000

Purchases 3,000,000 Factory Overhead:
Raw Materials, end. 280,000 Indirect Labor 250,000
Raw Materials Used P2,920,000 Superintendence 210,000
. Light, heat and power 320,000
5 Sales Salaries P 400,000 Rent – Factory Building 120,000
Office Salaries 150,000 Repair and Maintenance 50,000
Salaries P 550,000 Factory Supplies used 110,000
Depreciation – Machinery 60,000
6 Depreciation – Store Equipment P 70,000 Product Costs P2,070,000
Depreciation – Office Equipment 40,000
Depreciation P 110,000 8 Earthquake loss P 300,000
Other Losses P 300,000
Problem 6-2
Endless Company
Income Statement
Year Ended December 31, 2019
Notes
Net Sales (1) P 8,600,000
Cost of Goods Sold (2) (4,950,000)
Expenses:
Distribution Costs (4) 1,260,000
Administrative Costs (5) 1,140,000
Other Losses (6) 50,000 (2,450,000)
Income before Tax 1,280,000
Income tax (280,00)
Net Income P 1,000,000
Notes 4 Sales Salaries P 600,000

1 Sales P8,750,000 Store Supplies 150,000
Sales Return and Allowances (150,000) Depreciation -Delivery truck 60,000
Net Sales P8,600,000 Depreciation – Store Equipment 25,000
Delivery Expenses 425,000
2 Inventory, beg P1,100,000 Distribution Costs P1,260,000
Purchases 4,600,000
Purchase Discounts (45,000) 5 Office Salaries P 950,000
Freight-In 145,000 Depreciation – Office Equipment 35,000
COGAS 5,800,000 Doubtful Accounts 30,000
Inventory, end. (1,000,000) Contributions 125,000
COGS, before writedown P4,800,000 Administrative Costs P1,140,000
Inventory writedown 150,000
COGS, after writedown P4,950,000 6 Loss on Sale P 50,000
Other Losses P 50,000
3 Interest Revenue P 20,000
Dividend Revenue 50,000
Gain on Sale 10,000
Other Income P 80,000

Problem 6-3
Berna Company
Income Statement
Sales P 4,000,000
Cost of Goods Sold 1,800,000
Less: Expenses 1,200,000

Computations: SQUEEZE
Sales 100% 4,000,000 [1]
Cost of Goods Sold (45% of Sales) [ 150% of 30% ] 1,800,000 [2]
Gross Profit
Less: Expenses (30% of sales) 1,200,000
Net Income P 25% of sales 1,000,000
1 P1,000,000 / 25%
2 P4,000,000 x 45%
Cost of Goods Sold (SQUEEZE)

The Entity has no beginning balances for inventories since it is the first year of operations
Raw Materials Purchased 2,000,000 {8} 1,500,000 / 75%

Raw Materials, Remaining 500,000 [9] 2,000,000 x 25%
Raw Materials Used 1,500,000 {7} 3,000,000 x 50%
Direct Materials 900,000 {6} 3,000,000 x 30%
Factory Overhead 600,000 [5] 3,000,000 x 20%
Cost of Goods in Process 3,000,000 [4] 2,250,000 + 750,000
Goods in Process, remaining 750,000 [3] 2,250,000 / 3
Cost of Goods Available 2,250,000 [2] 1,800,000 + 450,000
Finished Goods, remaining 450,000 [1} 25% of COGS
Cost of Goods Sold P 1,800,000
Berna Company
December 31, 2019
Assets

Cash (1) P 500,000
Accounts Receivable (2) 400,000
Inventories (3) 1,700,000
Total Current Assets 2,600,000
Non Current Assets

Total Assets P 5,500,000

Liabilities and Shareholders’ Equity
Liabilities
Accounts Payable (5) 500,000
Total Liabilities 500,000
Ordinary Shares, issued 25,000 shares 2, 500,000
at P100 par value
Retained Earnings (net income) 1,000,000 5,000,000
Total Liabilities and Shareholders’ Equity P 5,500,000
Notes/Computation:
1 Cash, Jan 1 P1,000,000 3 Raw Materials P 500,000
Cash Sales 3,600,000 Goods in Process 750,000
Operating Expenses (1,200,000) Finished Goods 450,000
Production Cost Inventories P1,700,000
Direct Labor (900,000)
Overhead*** (500,000) 4 PPE P 3.,000,000
Paid Purchases (1,500,000)
Depreciation (100,000)
Cash, Dec 31 P 500,000
PPE P 2,900,000
***Depreciation is not a cash expense
5 Accounts Payable
2 Accounts Receivable (25% Purchases unpaid)
(10% sales collectible) P 2,000,000 x 25% = P 500,000
4,000,000 x 10% = P400,000
Problem 6-4
Youth Company
Income Statement
Year Ended XX 2019
Notes
Net Sales (1) P 8,870,000
Cost of Goods Sold (2) (5,900,000)
Gross Profit 2,970.000
Expenses:
Distribution Costs (3) 690,000
Administrative Costs (4) 580,000
Other Losses (5) 340,000 (1,610,000)
Net Income Before Tax 1,360,000

Notes 3 Sales Salaries P 500,000

1 Sales P9,070,000 Store Supplies 80,000
Sales Return and Allowances (200,000) Depreciation – Store Equipment 110,000
Net Sales P8,870,000 Distribution Costs P 690,000
2 Inventory, beg P1,500,000 4 Office Salaries P 400,000

Purchases 5,750,000 Depreciation – Building 120,000
Purchase Discounts (100,000) Office Supplies 60,000
Transportation-In 150,000 Administrative Costs P 580,000
COGAS 7,300,000
Inventory, end. (1,400,000) 5 Uninsured Flood Loss P 340,000
Cost of Goods Sold P5,900,000 Other Losses P 340,000
Problem 6-5
Rose Company
Statement of Comprehensive Income
Year Ended XX 2019
Income
Dividend Income from investments P 9,200,000
Distribution Income from trusts 500,000
Interest Income on deposits 700,000
Income from bank treasury bills 100,000
Income from dealing in securities and
derivatives held for trading 450,000
Other Income 250,000
Expenses
Administrative Costs 3,800,000
Sundry Administrative Costs 1,200,000
Finance Costs 300,000 (5,300,000)
Net Income Before Tax 5,900,000
Income Tax (1,700,000)
Other Comprehensive Income

Unrealized Gain on forward contracts
designated as cash flow hedge 400,000
Comprehensive Income P 4,600,000
Problem 6-6
Dahlia Company
December 31,2019
Notes
Sales P 9,500,000
Cost of Goods Sold 6,000,000

Investment Income 350,000

Expenses
Distribution Costs 500,000
Administrative Costs 300,000
Finance Costs 150,000 950,0000

Revaluation Surplus 1,200,000
Translation loss on foreign operations (200,000)
Note
1 Interest Revenue P250,000
Gain on Sale 100,000
Other Income P350,000
Problem 6-7
Lotus Company
December 31, 2019
Sales P 9,750,000
Cost of Goods Sold (3,750,000)
Investment Income 150,000
Other Income 350,000 450,000
Expenses
Employee Benefit Expense 1,500,000
Depreciation 450,000
Finance Costs 350,000
Other Expenses 450,000
Impairment Loss 800,000 (3,550,000)
Income Tax (900.000)

Translation gain on foreign operations 300,000
Unrealized gain on option contract
designated as cash flow hedge 200,000

Problem 6-8
C. Advertising P1,500,000
Freight Out 750,000
Rent – sales 900,000
Sales Salaries 1,400,000
Distribution Costs P4,550,000
Problem 6-9
D. Property Taxes P 250,000
Doubtful Accounts 1,600,000
Officers’ Salaries 1,500,000
Insurance 850,000
Administrative Costs P4,200,000
Problem 6-10
1. B
2. C
3. C
Raw Materials, beg. P 200,000

Materials Purchased 2,500,000
Purchased Discount (100,000)
Transportation In 200,000
Raw Materials, end (400,000)
Raw Materials Used 2,400,000
Direct Materials 3,000,000
Manufacturing Overhead 1,500,000
Cost of Manufacturing 6,900,000
Goods in process, beg. 300,000
Cost of Goods in Process 7,200,000
Goods in Process, end. 200,000
Cost of Goods Manufactured 7,000,000
Finished Goods, beg. 400,000
Cost of Goods Available 7,400,000
Finished Goods, end. 300,000
Cost of Goods Sold P 7,100,000
Problem 6-11
D. Inventory, beg. P 400,000
Purchases (Squeeze) 8,200,000
Purchase Returns (900,000)
Freight In 300,000
Cost of Goods Available 8,000,000
Inventory, end (500,000)
Cost of Goods Sold P7,500,000 six times P1,250,000 Distribution costs
Problem 6-12
B. Net Sales 100% Sales (Squeeze) P8,500,000
COGS 80% Sales Returns & allowances 750,000
Gross Profit 20% Net Sales 7,750,000
Cost of Goods
Net Sales: Inventory beg 2,000,000
6,200,000 / 80% Purchases 7,500,000
= 7,750,000 Returns (500,000)
Inventory, end (2,800,000) 6,200,000
Gross Profit P1,550,000

Problem 6-13
C. Net Income, unadj. P7,410,000
Components of OCI Included
Add: Unrealized Loss on FA – FVOCI 540,000
Less: Gain from Change in fair value
attributable to credit risk 500,000
Components of Retained Earnings
Add: Prior period adjustment 750,000
Net Income P8,200,000
Problem 6-14
D. Net Income, unadj. P5,000,000
Components of Retained Earnings
Less: Dividend received 320,000
Add: Prior period adjustment 1,400,000
Net Income P6,080,000
Problem 6-15
1. C
2. C
3. C
Income from continuing operations P 4,000,000

Income from discontinued operations 500,000
Unrealized gain on FA – FVPL 800,000
Other comprehensive income

Revaluation Surplus 2,500,000
Unrealized loss Equity- FVOCI (1,000,000)
Unrealized gain Debt – FVOCI 1,200,000
Unrealized gain on future contracts 400,000
designated as cash flow hedge
Translation loss on foreign operation (200,000)
Net measurement gain on defined
benefit plan 600,000
Loss on credit risk (300,000) 3,200,000
Comprehensive Income P8,500,000
Problem 6-16
1B 6 B
2D 7 B
3D 8 D
4B 9 B
5D 10 A

Problem 7-1
Reliable Company
Statement of Retained Earnings
Retained Earnings – unappropriated, Jan. 1 P 200,000

Correction of error:
Change from FIFO to Weighted – Credit 150,000
Overdepreciation 100,000
Corrected beginning balance 450,000
Decrease in Appropriation for Treasury 200,000
Dividends Paid (500,000)
Appropriated for Contingencies (100,000)
Retained Earnings, Dec. 31 P 1,350,000
Problem 7-2
Gondola Company
Statement of Retained Earnings
Year Ended XX 2019
Retained Earnings. Jan. 1 P 2,600,000

Correction of error :
Compensation not accrued (500,000)
Correction error – credit 400,000
Corrected beginning balance 2,500,000
Net Income 3,050,000***
Loss on retirement of preference share (350,000)
Stock Dividends (700,000)
Appropriation for Treasury (1,000,000)
Retained Earnings, Dec. 31 P 3,500,000
Net Income, unadj. 3,000,000

Items included in retained earnings:
Loss from Fire (50.000)
Goodwill Impairment (250,000)
Loss on sale of equipment (200,000)
Gain on early retirement 100,000
Gain on settlement of insurance 450,000
Net Income, adj, 3,050,000***
Problem 7-3
Angola Company
Comparative Income Statement
Year Ended XX 2020 and 2019
2020 2019
Sales P 6,000,000 4,500,000
COGS 2,900,000 2,300,000
Gross Income 3,100,000 2.,200,000
Expenses 1,490,000 1,800,000
Net Income P 1,610,000 400,000

Angola Company
Comparative Statement of Retained Earnings
Year Ended XX 2020 and 2019
2020 2019
Retained earnings, beg. P 1,250,000 1,000,000
Net Income 1,610,000 400,000
Dividends Paid 500,000 150,000
Retained Earnings, end. P 2,360,000 1,250,000
Adjustments:
COGS 100,000
Acc. Dep 10,000

Depreciation Expense 10,000
Problem 7-4
Martha Company
Statement of Changes in Equity
PS OS SP RE TS
Balances, Jan. 1 P 10,000,000 7,500,000 3,250,000
Issuance of PS 5,000,000 400,000
Reacquirement
of OS 320,000
Issuance of OS 2,500,000 3,500,000
Dividends – OS (2,480,000)
Retirement of Treasury 50,000 (160,000)
Dividends – PS (450,000)
Overstatement
of prior period
ending inventory (140,000)
Balance, Dec 31 P 5,000,000 12,500,000 11,450,000 2,430,000 160,000
2019
Jan. 5 Cash 5,400,000
Preference Share 5,000,000
Share Premium - PS 400,000
Feb. 1 Treasury Shares 320,000

Cash 320,000
Apr. 30 Cash 6,000,000

Ordinary Share 2,500,000
Share Premium – OS 3,500,000
Jun. 17 Retained Earnings 2,480,000

Dividends Payable 2,480,000

Jul. 10 Dividends Payable 2,480,000

Cash 2,480,000
Nov. 6 Cash 210,000

Treasury Share 160,000
Dec. 7 Retained Earnings 450,000

Problem 7-5
Carr Company
Statement of Changes in Equity
PS OS SP RE TS
Balances, Jan. 1 P 1,800,000 5,150,000 3,590,000 4,000,000 270,000
Retirement of
Treasury (150,000) (120,000) (270,000)
Property Dividend (750,000)
Dividend – PS (180,000)
Overstatement
of prior period
Income (350,000)
Balance, Dec 31 P 1,800,000 5,000,000 3,470,000 5,320,000 -
2019
Jan. 10 Ordinary Shares 150,000
Treasury Shares 270,000
Feb. 10 Retained Earnings 750,000

Dec. 12 Retained Earnings 180,000

Problem 7-6
A. Share Capital P 5,000,000
Treasury (300,000)
Total P 7,200,000

Problem 7-7
B. Share Capital P 6,000,000
Treasury (700,000)
Cumulative translation
adjustment-debit (2,000,000)
Cumulative unrealized
gain designated as
cash flow hedge 600,000
TOTAL P 8,900,000
Problem 7-8
A. PS, at par P 2,000,000
OS, at par 3,000,000
Retained Earnings, beg. 1,000,000
Dividends (700,000)
Treasury (500,000)
TOTAL P 8,000,000
Problem 7-6
A. RE, unapp 6,000,000
Share Capital P15,000,000 RE, app 3,000,000
Share Premium 5,000,000 Revaluation surplus 4,000,000
Retained Earnings 13,500,000*** Cumulative translation
Treasury (2,000,000) adjustment-credit 1,500,000
Total P31,500,000 Actuarial Loss (1,000,000)
RE, end 13,500,000***
Problem 7-10
1A
2A
3D
4B
5A
Problem 8-1
1. A
2. C
3. B
4. A
2019
Jun. 30 Land held for sale 400,000
Revaluation surplus 400,000
Impairment Loss 200,000

Land held for sale 200,000

Dec. 31 Impairment Loss 100,000

Land held for sale, before adjustment P2,900,000

Fair value at classification 3,300,000
Revaluation surplus, beg. 200,000
TOTAL P 600,000
Carrying Amount, Jun 30 P3,100,000 3,300,000 – 200,000

FV less cost of disposal 3,000,000 3,250,000 – 250,000
Impairment loss 200,000
Impairment loss – Jun 30 100,000
TOTAL P 300,000
Problem 8-2
1. C
2. A
3. B
4. D
2019
Oct. 1 Land held for sale 500,000

2020
Jan. 1 Cash 6,000,000
Gain on Disposal 600,000
Land held for sale 5,400,000
Land held for sale, before adjustment P5,000,000

Fair value at classification 5,500,000
Revaluation surplus, beg. 1,500,000
TOTAL P 2,000,000
Problem 8-3
1. B
2. C
3. C

Land held for sale, Jan 2019 P6,000,000

Fair value at Dec. 2019 7,000,000
Revaluation surplus 1,000,000
Land held for sale, Jan 2020 P7,000,000

Fair value at Dec. 2020 8,500,000
Revaluation surplus 1,500,000 OCI for the current year
Revaluation surplus, beg. 1,000,000

TOTAL P 2,500,000 recycled to Retained Earnings
Selling Price P8,000,000

Carrying Amount (7,600,000)
Gain on sale P 400,000
Problem 8-4
1. A
2. B
3. C
2019
Dec. 31 Impairment Loss 400,000
Equipment 400,000
Equipment held for sale 4,600,000

Equipment 4,600,000

Equipment held for sale 200,000
Recoverable amount P 4,250,000

Carrying amount before
classified as held for sale 4,000,000
lower of CA over recoverable 4,000,000
Measurement of equipment – lower 4,000,000

Carrying Amount: 4,400,000
Loss on reclassification P 400,000
Problem 8-5
1. A
2. C
3. B
Equipment P 5,000,000
Carrying Amount 4,500,000
FV less cost of disposal 4,150,000
Impairment Loss P 350,000

Recoverable amount P 3,400,000

Carrying amount before
classified as held for sale 4,000,000
lower of CA over recoverable 3,400,000
Measurement of equipment – lower 3,400,000

Carrying Amount: 4,150,000
Loss on reclassification P 750,000
Problem 8-6
1. B
2. D
Equipment P 5,000,000
Depreciation 3,750,000
Carrying Amount 1,250,000
FV less cost of disposal 450,000
Impairment Loss P 800,000
FV less cost of disposal, Dec 650,000

Carrying Amount 450,000
Gain on reversal of impairment P 200,000
Problem 8-7
1A 6 B
2A 7 C
3D 8 A
4D 9 C
5C 10 D
Problem 9-1
A. Carrying Amount P 2,000,000
FV less cost of disposal (1,800,000)
Impairment loss (200,000)
Termination cost *100,000)
Operating Loss (700,000)
Pretax Loss P(1,000,000)
Problem 9-2
C. Operating Income P 3,000,000
Carrying Amount P 4,000,000
FV less cost of disposal 3,500,000
Impairment loss (500,000)
Pretax Income 2,500,000
Income from discontinued operations P 1,750,000

Problem 9-3
D. Loss on disposal P(2,000,000)
Operating Loss (400,000)
Pretax Loss (2,400,000)
Income Tax (tax relief) 720,000
Loss from discontinued operations P(1,680,000)
Problem 9-4
D. Termination cost P(2,000,000)
Operating Loss (6,000,000)
Income Tax (tax relief) 2,400,000
Problem 9-5
D. Operating Loss P,8,000)
Gain on disposal 15,000
Pretax Income 7,000
Income Tax (2,,100)
Income from discontinued operations P 4,900
Problem 9-6
A. Trading loss P(2,000,000)
Impairment loss (1,500,000)
Total Loss P(3,500,000)
Problem 9-7
B. Operating loss P(8,000,000)
Loss on disposal (500,000)
Total Loss P(8,500,000)
Problem 9-8
D. Carrying Amount P15,000,000
Fair value 9,000,000

Cost of disposal (500,000)
FV less cost of disposal * 8,500,000
Measurement – lower P 8,500,000
Problem 9-9
A. Loss from disposition P (700,000)
Operating loss (200,000)
Pretax Loss P (900,000)

Problem 9-10
B. Impairment Loss P (500,000)
Operating loss (1,500,000)
Income Tax (tax relief) 600,000
Problem 9-11
1A
2D
3A
4D
5A
Problem 10-1
A. Cost P 2,640,000
Accumulated Depreciation
2,640,000 /8 x 3 (990,000)
Carrying amount 1,650,000
Residual Value (240,000)
Depreciable amount 1,410,000
Remaining useful life (6-3) / 3yrs
Accumulated Depreciation, beg 990,000
Total P 1,460,000
Problem 10-2
1. A
2. B
Cost P 4,000,000
4,000,000 - 400,000 /10 x 4 (1,440,000)
Depreciation P 260,000
Problem 10-3
A. Cost P 3,000,000
3,000,000 /6 x 3 (1,500,000)

Problem 10-4
D. Carrying amount P 1,536,000
Problem 10-5
C. Cost P 2,750,000
2,750,000 x 10/55 (500,000)
Problem 10-6
B. Cost P 5,000,000
5,000,000 /2,5 2,000,000
3,000,000/2.5 1,200,000 (3,200,000)
Accumulated Depreciation, beg, 3,200,000
Total P 3,800,000
Problem 10-7
A. Cost P 7,200,000
7,200,000 /10 x 3 (2,160,000)
Sum of the years (10-3) x 7/28
Depreciation P 1,260,000
Problem 10-8
B. Cost P 4,800,000
4,800,000 /5 960,000
3,840,000/2.5 768,000 (1,728,000)
Depreciable Amount 2,872,000
Accumulated Depreciation, beg, 1,728,000
Total P 2,087,000

Problem 10-9
B. Cost P 6,000,000
6,000,000 /2 (3,000,000)
Residual value (600,000)
Remaining useful life (2-1) / 1yr
Depreciation P 2,400,000
Problem 10-10
A. Cost P 3,000,000
3,000,000 /10 x 5 (1,500,000)
Amortization Expense P 500,000
Cost P 8,000,000
Accumulated Depreciation (3,400,000)
Residual value (200,000)
Remaining useful life / 10yrs
Depreciation Expense P 440,000
Total Expenses P 990,000
Problem 10-11
1A
2A
3B
4C
5D
Problem 11-1
D. Inventory – beg P 600,000
Retained Earnings P 600,000
Problem 11-2
A. Jan 1, Weighted P 7,700,000
Jan 1, FIFO 7.200,000
Increase in inventory P 500,000
Adjustment to reflect the change in inventory method
Inventory – beg P 500,000

Problem 11-3
A. Jan 1, Weighted P 7,800,000
Jan 1, FIFO 8.300,000
Decrease in inventory P (500,000)
Adjustment to reflect the change in inventory method
Inventory – beg P 500,000
Problem 11-4
C. Income under percentage of completion P 9,000,000
Income under cost recovery 7,000,000
Pretax difference 2,000,000
Income Tax (30%) (600,000)
Credit adjustment to retained earnings P 1,400,000
Problem 11-5
A. Income by contracts under cost recovery
2016 P 7,000,000
2017 13,000,000
2018 12,000,000 P 32,000,000
Income by contracts under percentage of completion

2016 15,000,000
2017 16,000,000
2018 7,000,000 38,000,000
Pretax cumulative effect P 6,000,000
Problem 11-6
A. Retained earnings, beg P 850,000
Overstatement of depreciation (50,000)
Corrected Retained earnings 800,000
Net Income 500,000
Retained earnings, end P 1,300,000
Problem 11-7
D. The effect is charged against retained earnings.
Problem 11-8
B. Inventory write off is not a prior period error.
Problem 11-9
1. A
2. D Not a change in accounting policy but change in accounting estimate – adjustments
shall be recognized currently and prospectively.

Problem 11-10
1. C
2. C
Development costs, 2018 P 5,840,000
Amortization (1,200,000)
Adjustment to RE P 4,640,000
Development costs, 2019 P 8,160,000

Amortization (1,800,000)
Error capitalized 4,640,000
Expensed in 2019 P 1,720,000
Problem 11-11
D. Gross Profit under cost recovery
2017 950,000
2018 1,250,000 P 2,200,000
Gross Profit under percentage of completion

2017 1,600,000
2018 1,900,000 3,500,000
Pretax cumulative effect P 1,300,000
Income tax (30%) (390,000)
Increase in Retained Earnings P 910,000
Problem 11-12
A. The provision for uncollectible accounts receivable has no effect on retained earnings
Problem 11-13
B. Settlement of litigation has no effect on retained earnings
Problem 11-14
1. A
2. A
Retained earnings, Jan. 1, 2018 P 1,100,000
Net Income 600,000
Retained earnings, Dec. 31, 2018 P 1,400,000
Retained earnings, Jan. 1, 2019 P 1,400,000

Overstatement of prior period
Income (650,000)
Corrected Retained earnings 750,000
Net Income 700,000
Retained earnings, Dec. 31,2019 P 1,300,000

Problem 11-15
1A 6 C
2A 7 A
3B 8 B
4A 9 B
5D 10 D
Problem 12-1
D. Depreciation P 250,000
Bonus 600,000
Expenses P 850,000
Problem 12-2
C. P40,000,000 x 5%
= P 2,000,000
Basis of income for half year is 25,000,000. Since 40,000,000 exceeds the half year
annual profit, 5% bonus charge is expensed for that period.
Problem 12-3
A. Property Tax P 150,000 { 600,000 / 4 ]
Repairs 900,000
Expenses P1,050,000
Problem 12-4
D. Net Income P 950,000
Incorrect allocation
of Gain (200,000) { gains should be reported at the period realized ]
Incorrect recognition
of change in inventory 150,000 { change in accounting policy, adjusted to RE }
Problem 12-5
C. Advertising P 2,000,000
Bonus 3,000,000
Expenses P 5,000,000
Problem 12-6
A. Provision for first quarter
5% x P 10,000,000 P 500,000
Provision for second quarter
10% x P 25,000,000 2,500,000
Charge for the period P2,000,000

Problem 12-7
A. P 5,000,000 x 35%
= P 1,750,000
Problem 12-8
B. First quarter 6,000,000 x 30% P 1,800,000
Second quarter 7,000,000 x 30% 2,100,000
Third quarter 8,000,000 1,350,000
21,000,000 x 25% P 5,250,000
Problem 12-9
A. First quarter 1,000,000 x 30% P 300,000
Second quarter 1,500,000 x 30% 450,000
Third quarter 2,500,000 x 25% 625,000
Fourth quarter 4,000,000 x 25% 1,000,000
Income tax P 2,375,000
Problem 12-10
B. First quarter 2,000,000 x 5% P 100,000
Second quarter 1,500,000 x 5% 75,000
Third quarter 2,500,000 x 5% 125,000
300,000
Total Bad Debts 450,000
Fourth quarter P 150,000
Problem 12-11
D. Variable costs P 1,000,000 [ 4,000,000 x 25% ]
Advertising 375,000 [ 1,500,000 /4 ]
Depreciation 60,000 [ 600,000 / 10mos]
Fixed costs 900,000 { 4,000,000 – 1,000,000, - 1,500,000 – 600,000 ]
Total expenses P 2,335,000
Problem 12-12
1. C
2. D
3. D
4. D
First Quarter P20,000,000 – 15,000,000 = 5,000,000 x 10% = P 500,000

Second Quarter no work performed
Third Quarter P20,000,000 – 19,200,000 = 800,000 x 25% = P 200,000
First Quarter Balance (500,000)
Third Quarter loss P 300,000
Fourth Quarter no work performed

Problem 12-13
Charmaine Company
Income Statement
Three month ended March 31, 2019
Notes
Net Sales P 25,000,000
Cost of sales {1} 15,000,000
Gross profit (40% of net sales) 10,000,000
Interest income 150,000
Gross Income 10,150,000
Expenses
Selling Costs {2] (3,350,000)
Administrative Costs [3] (3,050,000)
Income Tax (30%) (1,125,000)
Notes/Computations
1 Cost of sales 60% of P25,000,000 3 Depreciation – administrative 300,000
15,000,000 Insurance expense(400,000 /4) 100,000
Doubtful accounts (1% of net sales) 250,000
2 Depreciation – selling 150,000 Administrative expenses 2,400,000
Distribution Costs 3,200,000 Total Administrative Costs 3,050,000
Total Selling Costs 3,350,000
Charmaine Company
March 31, 2019
Assets

Cash P 1,000,000
Receivables (1) 1,900,000
Inventory (2) 3,500,000
Prepaid Insurance (3) 300,000
Total Current Assets 6,700,000
Non Current Assets

Notes Receivable 5,000,000
Total Assets P 30,750,000

Liabilities and Shareholders’ Equity
Liabilities
Interest Payable 1,125,000
Total Liabilities 9,625,000
Retained Earnings (net income) (5) 12,125,000 21,125,000
Total Liabilities and Shareholders’ Equity P 30,750,000
Notes 3 Prepaid Insurance P 400,000

1 Accounts Receivables P 2,000,000 Expired (100,000)
Doubtful accounts (250,000) Total P 300,000
Interest receivable 150,000
Total P 1,900,000 4 Land P 1,500,000
Building & Equipment 18,000,000
2 Inventory, beg P 1,500,000 Depreciation (450,000)
Purchases 17,000,000 PPE P19,050,000
COGAS 18,500,000
Inventory, end(squeeze) 3,500,000 5 RE, beg P 9,500,000
COGS P15,000,000 Net Income 2,625,000
RE, end P12,125,000
Problem 12-14
Dunhill Company
Income Statement
Six month ended June 30, 2019
Sales P 20,000,000
Cost of sales 11,500,000
Gross profit 8,500,000
Dividend revenue 500,000
Expenses
Distribution Costs (2,500,000)
General Expense (1,100,000)
Interest Expense (300,000)
Income Tax (30%) (1,300,000)

Dunhill Company
Income Statement
Six month ended June 30, 2019
Sales P 12,500,000
Cost of sales 7,000,000
Gross profit 5,500,000
Dividend revenue 200,000
Expenses
Distribution Costs (1,600,000)
General Expense (600,000)
Interest Expense (200,000)
Income Tax (30%) (900,000)
Problem 12-15
First Second Third Fourth
COGS, before P (7,000,000) (4,700,000) (4,900,000) (13,400,000)
Inventory loss (100,000) (150,000)
Gain on reversal 100,000 150,000
COGS, after (7,100,000) (4,600,000) (5,050,000) (13,250,000)
Sales 10,000,000 8,000,000 7,000,000 15,000,000
Gross Profit P 2,900,000 3,400,000 1,950,000 1,750,000
Problem 12-16
1C 6 A
2C 7 C
3B 8 B
4D 9 B
5D 10 A
Problem 13-1
C. Segment Bix P 12,000
Segment Dil 59,000
Revenue for reportable
segments P 71,000
Problem 13-2
C. Segments A, B, C and E satisfy the 3 criteria
Segment D satisfies the 10% minimum of total assets

Problem 13-3
B. Greater between profit and loss: P 4,800,000
Multiplied by 10%
Minimum Profit/loss P 480,000
Reportable segments: V, W and X
Problem 13-4
B. P 1,200,000 / 10,000,000 = 12% minimum of total Profit
Problem 13-5
B. Sales – external P 20,000,000
Sales – internal 5,000,000
Interest revenue 1,000,000
Total Sales P 26,000,000
Multiplied by 10%
Minimum revenue P 2,600,000
Problem 13-6
1. A
2. D
Sales – external P 50,000,000
Multiplied by x 10%
Minimum P 5,000,000 minimum sales to a major customer is 10% of total
external sales.
Sales – external P 50,000,000
Multiplied by x 75%
Minimum P 37,500,000 minimum total revenue to be disclosed by reportable
segments should qualify at least 75% of the entity’s
total external revenue.
Problem 13-7
D. Revenue P 3,000,000
Expenses (1,500,000)
Indirect (450,000)
General (300,000)
Interest (150,000)
Operating Profit P 500,000 Ratio: 25% [ 3,000,000 / 12,000,000 ]
Problem 13-8
D. Sales P 3,000,000 7,500,000
Expenses (1,750,000) (5,000,000)
Gross profit 1,250,000 / 2,500,000 Ratio: 50%
Common Costs (750,000)
Operating Profit P 500,000

Problem 13-9
D. Sales P 3,000,000
Indirect (125,000)
Interest (300,000)
Problem 13-10
D. Sales P 3,500,000
Common Costs (1,625,000)
Problem 13-11
D. Sales P 8,000,000
Interest (640,000)
Common Costs (320,000)
Operating Profit P 2,240,000
Problem 13-12
D. The amount reported to the chief operating decision maker should be the amount reported
as segment profit for the reportable segments.
Problem 13-13
Disclosures – Diversity Company
Segment A B Others Total

Sales 25,000,000 15,000,000 5,000,000 45,000,000
Profit/Loss 7,000,000 6,000,000 1,000,000 14,000,000
Total Assets 35,000,000 18,000,000 7,000,000 60,000,000
Reconciliations
Revenue from reportable segments P 40,000,000
Revenue from non reportable segments 5,000,000
Entity’s revenue shown in Income Statement P 45,000,000
Profit from reportable segments P 13,000,000

Profit from non reportable segments 1,000,000
General Corporate expenses (2,000,000)
Entity’s Profit shown in Income Statement P 12,000,000
Assets from reportable segments P 53,000,000

Assets from non reportable segments 7,000,000
Entity’s Assets shown in SFP P 60,000,000

Problem 13-14
Segment X Segment Y Others Total

Sales P 24,000,000 27,000,000 9,000,000 60,000,000
COGS (9,800,000) (14,000,000) (4,200,000) (28,000,000)
Gross Profit 14,200,000 13,000,000 4,800,000 32,000,000
Expenses (4,800,000) (4,800,000) (2,400,000) (12,000,000)
Depreciation (1,200,000) (1,350,000) (450,000) (3,000,000)
Income Tax (2,000,000) (1,600,000) (400,000) (4,000,000)
Profit/ Loss P 6,200,000 5,250,000 1,550,000 13,000,000
Disclosures – Congo Company

Segment A Y Others Total
Sales 24,000,000 27,000,000 9,000,000 60,000,000
Profit/Loss 6,200,000 5,250,000 1,550,000 13,000,000
Depreciation 1,200,000 1,350,000 450,000 3,000,000
Reconciliations
Revenue from non reportable segments 9,000,000
Profit from reportable segments P 11,450,000

Profit from non reportable segments 1,550,000
Unallocated Depreciation (1,000,000)
General Corporate expenses (2,000,000)
Entity’s Profit shown in Income Statement P 10,000,000
Problem 13-15
Furniture Stationery Computer Other Total
Sales - external P 800,000 500,000 400,000 100,000 1,800,000
Sales – internal 200,000 150,000 50,000 400,000
COGS – external (600,000) (300,000) (240,000) (60,000) (1,200,000)
COGS - internal (120,000) (96,000) (24,000) (240,000)
Gross Profit 280,000 254,000 186,000 40,000 760,000
Distribution Cost (100,000) (50,000) (40,000) (10,000) (200,000)
Administrative Exp. (50,000) (25,000) (20,000) (5,000) (100,000)
Finance Cost. (30,000) (15,000) (12,000) (3,000) (60,000)
Profit/Loss P 100,000 164,000 114,000 22,000 400,000
Disclosures – Easy Company

Furniture Stationery Computer Other Total
Sales - external P 800,000 500,000 400,000 100,000 1,800,000
Sales – internal 200,000 150,000 50,000 400,000
Finance Cost. 30,000 15,000 12,000 3,000 60,000
Profit/Loss 100,000 164,000 114,000 22,000 400,000
Total Assets 440,000 170,000 100,000 5,000 715,000
Total Liabilities 75,000 50,000 15,000 3,000 143,000

Reconciliations
Revenue from non reportable segments 100,000
Elimination of intersegment revenue (400,000)
Profit from reportable segments P 378,000

Profit from non reportable segments 22,000
Share in profit 10,000
Elimination of intersegment profit (160,000)
Unallocated Income 60,000
Unallocated Expense (50,000)
Unallocated Income tax (90,000)
Entity’s Profit shown in Income Statement P 170,000
Assets from reportable segments P 710,000

Assets from non reportable segments 5,000
General corporate assets 85,000
Entity’s Assets shown in SFP P 800,000
Liabilities from reportable segments P 140,000

Liabilities from non reportable segments 3,000
General corporate liabilities 7,000
Entity’s Liabilities shown in SFP P 150,000
Problem 13-16
Criteria:
1. Total Revenue P 2,000,000
Multiplied by 10%
Minimum P 200,000 Segments qualified: 1&3
2. Total Profit P 300,000

Total Loss (100,000)
Greater: 300,000
Multiplied by 10%
Minimum P 30,000 Segments qualified: 1, 3 & 4
3. Total Assets P 1,500,000

Multiplied by 10%
Minimum P 150,000 Segments qualified: 1, 3 & 5
Revenue
Segment 1 620,000
Segment 3 340,000
Segment 4 190,000
Segment 5 180,000
Total 1,330,000 / 2,000,000 = 66.5%

Additional reportable segments:
Segment 6 & 7 – 3 over 5 in aggregation criteria

Similar products, similar production process, and
similar product distribution system.
Revenue
Segment 1 620,000
Segment 3 340,000
Segment 4 190,000
Segment 5 180,000
Segment 6&7 190,000
Total 1,520,000 / 2,000,000 = 76%
Problem 13-17
Disclosures – Universal Company
Product A Product B Total

Revenue P 2,500,000 6,000,000 8,500,000
Segment profit/loss 650,000 700,000 1,350,000
Depreciation 350,000 1,300,000 1,650,000
Segment assets 2,600,000 10,000,000 12,600.000
Segment liabilities 1,300,000 6,000,000 7,300,000
Capital Expenditures 600,000 1,300,000 1,900,000
Entity-wide Disclosure – Universal Company
Philippines Japan Total

Revenue P 5,000,000 3,500,000 8,500,000
Problem 13-18
1B 6 D
2D 7 B
3B 8 D
4D 9 C
5C 10 D
Problem 14-1
D. Sales P 4,600,000
AR, beg. 1,000,000
AR, end. (1,300,000)
Writeoff (50,000)
Cash Basis – Sales P 4,250,000
Problem 14-2
C. Cash Sales P 200,000
Credit Sales 3,000,000
AR, beg. 400,000
AR, end. (485,000)

Problem 14-3
A. Cash Sales P 1,900,000 [ 2,000,000 – 100,000 ]
Credit Sales 2,850,000 [ 3,000,000 – 150,000 ]
AR, beg. 1,000,000
AR, end. (750,000)
Problem 14-4
A. Cash Sales P 500,000
Credit Sales 3,000,000
AR, beg. 1,000,000
AR, end. (1,680,000)
Writeoff (120,000)
Problem 14-5
D. Charges to insurance expense P 625,000
Increase in Prepaid Insurance 25,000
Insurance paid P 650,000
Problem 14-6
B. Insurance P 700,000 ***Depreciation is not a cash expense
Salaries 1,500,000
Increase in Prepaid insurance 50,000
Decrease is Accrued Payables 20,000
Total P 2,270,000
Problem 14-7
C. Initial Investment P 200,000
Services earned 500,000
Drawings (100,000)
Cash Basis – Capital P 600,000
Problem 14-8
B. Sales P 1,750,000
AR, end. 300,000
AR, beg. (500,000)
Total P 1,550,000
Problem 14-9
D. Cash Basis, Income P 6,000,000
Add:
AR, end 4,000,000
AP, beg 3,000,000 7,000,000
Less:
AR, beg 2,000,000
AP, end 1,500,000 (3,500,000)
Accrual Basis, Income P 9,500,000

Problem 14-10
A. Payment to Suppliers P 4,900,000
Increase in AP 250,000
Purchases P 5,150,000
Inventory, beg. 2,900,000
Inventory, end. (2,600,000)
COGS P 5,450,000
Problem 14-11
1. B
2. B
3. A
4. A
Cash Receipts P 8,000,000

Discounts 500,000
Returns 250,000
Error (50,000) amount not included in cash collections
Writeoff 100,000
AR, end 1,350,000
AR, beg (1,200,000)
Accrual – Gross Sales P 8,950,000
Less:
Discount (500,000)
Sales Returns (250,000)
Accrual – Net Sales P 8,200,000
Cash Payments P 5,000,000

Discounts 200,000
Returns 400,000
Error (100,000) amount not included in cash payments
AR, end 1,850,000
AR, beg (1,500,000)
Accrual – Gross Sales P 5,850,000
Less:
Discount (200,000)
Sales Returns (400,000)
Accrual – Net Sales P 5,250,000
Problem 14-12
1. A
2. A
Cash Sales P 500,000 Cash Purchases P 130,000

Collection - AR 1,800,000 Payments - AP 1,500,000
Discounts 40,000 Discounts 20,000
Collection - NR 80,000 Payments - NP 400,000
Receivables, end. 400,000 Payables, end. 220,000
Receivables, beg. (400,000) Payables, beg. (310,000)
Accrual – Gross Sales P 2,420,000 Accrual – Gross Sales P 1,960,000
***Bank loan not included in the balance

Problem 14-13
B. Prepaid Royalties, beg. P 650,000
Year-end credit adjustment (250,000)
Prepaid Royalties, end. P 400,000
Problem 14-14
D. Annual Insurance, Jul 1 P 32,000
Insurance expense (16,000)
Insurance, Dec. 31 P 16,000
Problem 14-15
1. A
2. A
Insurance, Mar. 1 P 72,000

Insurance expense (2,000)
Insurance, Mar. 31 P 70,000
Insurance, Mar. 31. 3,000

Insurance expense 72,000
Total Insurance 75,000
Insurance, Mar 31 70,000
Insurance expense P 5,000
Problem 14-16
B. Insurance, Jul. 1 P 72,000
Prepaid Tax 24,000
Less:
Expired Insurance (36,000)
Tax Covered (6,000)
Prepaid Expense P 54,000
Problem 14-17
D. Interest Expense, unadj. P 100,000
Decrease in Prepaid interest 5,500
Increase in Interest Payable 8,500
Interest Expense, Dec. 31 P 114,000
Problem 14-18
B. Advertising Expense, unadj P 990,000
December Bill 50,000
Future Advertising (60,000)
Advertising Expense, Dec. 31 P 980,000
Problem 14-19
A. Compensation Expense, unadj P 490,000
Accrued Salary 18,000
Bonus 175,000
Compensation Expense, Dec. 31P 683,000

Problem 14-20
B. Professional fees, unadj P 820,000
December Bill 60,000
Future Advertising 70,000
Professional fees, Dec. 31 P 950,000
Problem 14-21
A. Rent Revenue, unadj P 8,000,000
Increase in Receivable 280,000
Decrease in Unearned Income 800,000
Rent Revenue, Dec. 31 P 9,080,000
Problem 14-22
C. Royalty Revenue, unadj P 2,500,000
Increase in Receivable 50,000
Increase in Unearned (200,000)
Royalty Revenue, Dec. 31 P 2,350,000
Problem 14-23
2019
Dec. 31 Accounts Receivable 250,000
Sales 90,000

Advances to Supplier 100,000
Purchases 170,000
Expenses 30,000
Inventory, beg. 150,000

Inventory, end 210,000

Income Summary 210,000

Acc. Dep – Equipment 30,000
Acc. Dep – Building 600,000

Allowance for DA 25,000
Interest Expense 36,000

Interest Payable 36,000

Computations:
Sales, Cash Basis P 4,000,000 Expenses P 1,500,000
AR, end 250,000 Accrued Exp, end 100,000
AR, beg. (200,000) Accrued Exp, beg (70,000)
Prior Period, adj 40,000 Expenses P 1,530,000
Sales P 4,090,000
Retained Earnings, unadj P 600,000
Purchases, Cash Basis P 2,000,000 Errors:
AP, end 280,000 Sales earned, 2018 200,000
AP, beg. (350,000) Prior Period Sales Adjustment (40,000)
Error 100,000 Unrecorded Purchases, 2018 (350,000)
Purchases P 1,830,000 Accrued Expenses (70,000)
Inventory, beg 150,000 Unrecorded Inventory 150,000
Inventory, end. (210,000) Unrecorded Depreciation (310,000)
COGS P 1,770,000 Retained Earnings, adj P 180,000
Zamboanga Company
Income Statement
Sales P 4,090,000
Cost of Sales 1,770,000
Expenses 1,530,000
Interest Expense 36,000 1,911,000
Zamboanga Company
December 31, 2019
ASSETS
Current Assets
Cash P 1,500,000
Account Receivable – net 225,000
Inventory 210,000
Advances to Supplier 100,000
Noncurrent Assets
Equipment – net 170,000
Building – net 900,000
Land 800,000

Current Liabilities
Mortgage Payable 900,000
Equity
Retained Earnings (180,000 + 409,000) 589,000
Problem 14-24
2019
Dec. 31 Accounts Receivable 40,000
Sales 40,000
Purchases 30,000


Depreciation 90,000
Acc. Dep. – Equipment 40,000
Acc, Dep. – Building 50,000
Rent 5,000
Accrued Rent 10,000
Prepaid Insurance 12,000

Insurance 7,000
Computations:
Purchases, Cash Basis P 1,200,000
Sales, Cash Basis P 2,000,000 AP, end 130,000
AR, end 290,000 AP, beg. (100,000)
AR, beg. (250,000) Purchases P 1,230,000
Sales P 2,040,000 Inventory, beg 150,000
Inventory, end. (230,000)
COGS P 1,150,000

Retained Earnings, unadj P 345,000

Errors:
Unrecorded Rent, 2018 (5,000)
Unrecorded Insurance 7,000
Retained Earnings, adj P 347,000
Evelyn Company
Income Statement
Sales P 2,040,000
Gross Profit 890,000
Office Expenses 255,000

Depreciation 90,000
Rent 245,000
Insurance 45,000
Supplies Expense 140,000 790,000
Evelyn Company
December 31, 2019
ASSETS
Current Assets
Cash P 200,000
Inventory 230,000
Total Current Assets P 717,000
Noncurrent Assets
Building – net 750,000
Land 300,000
Current Liabilities

Equity
Retained Earnings (180,000 + 409,000) 447,000
Problem 14-25
2019
Dec. 31 Inventory, end 500,000

Sales 500,000
Purchases 80,000
Expenses 20,000
Accrued Expense 20,000
Receivable from President 10,000

Purchases 10,000
Sales 25,000
Deposit from customer 25,000

Supplies 5,000
Expenses 5,000
Equipment 100,000
Depreciation 5,000
Acc. Dep. – Equipment 5,000
Expenses 100,000

Expenses 15,000
Interest Expense 4,000

Computations:
Purchases, Cash Basis P 4,200,000
Sales, Cash Basis P 4,400,000 AP, end 80,000
AR, end 100,000 Error (10,000)
Error (25,000) Purchases P 4,270,000
Sales P 4,475,000 Inventory, end. (500,000)
COGS P 3,770,000

Expenses P 560,000
Accrued Exp, end 20,000
Errors:
Supplies (5,000)
Equipment (100,000)
Insurance (15,000)
Expenses P 460,000
Civic Company
Income Statement
Sales P 4,475,000
Gross Profit 705,000
Expenses 460,000
Depreciation 5,000
Interest Expense 4,000 474,000
Civic Company
December 31, 2019
ASSETS
Current Assets
Cash P 840,000
Inventory 500,000
Supplies 5,000
Receivable from President 10,000
Noncurrent Assets
Current Liabilities
Deposit from Customers 25,000

Non Current Liabilities

Equity
Problem 14-26
1A 6 B
2B 7 A
3D 8 A
4D 9 C
5C 10 D
Problem 15-1
C. Total Assets, end P 7,500,000
Total Liabilities, end (3,200,000)
Total Equity P 4,300,000
Contributed Capital (2,800,000)
Retained Earnings, end 1,500,000
Dividends 250,0000
Retained Earnings, beg (1,000,000)
Problem 15-2
A. Retained Earnings, end P 4,500,000
Dividends:
Cash Dividend 1,000,000
Share Dividend 1,250,000
Retained Earnings, beg (3,500,000)
Problem 15-3
B. Shareholders’ Equity P 4,000,000
Share Capital (3,000,000)
Retained Earnings, beg 900,000

Correction of error (200,000)
Dividend (400,000)
Net Income 700,000

Problem 15-4
A. Shareholders’ Equity P 5,000,000
Share Capital (3,000,000)
Gain on Treasury (300,000) [ Share Premium ]

Correction of error 100,000
Dividend (600,000)
Net Income 800,000
Problem 15-5
C. Asset P 8,900,000
Equity (net increase) 6,200,000
Dividends 1,300,000
Problem 15-6
A. Assets (net increase) P 1,650,000
Liabilities (net decrease) 100,000
Correction of error (250,000)
Dividends 1,500,000
Problem 15-7
C. Asset (net increase) P 200,000
Liabilities 160,000
Equity (net increase) 40,000
Increase in Capital (240,000)
Net Loss P (200,000)
Problem 15-8
C. Asset P 1,800,000
Liabilities 500,000
Dividends 300,000
Problem 15-9
C. Asset P10,900,000
Liabilities (1,200,000)
Net of Bank loan (3,000,000)
Increase in Interest Payable (300,000)


Dividends 4,500,000
Increase Capital (3,000,000)
Donated Capital (2,000,000)
Problem 15-10
D. Assets (net increase) P 370,000
Liabilities (net increase) (110,000)
Equity (net increase) 260,000
Investments (500,000)
Withdrawals 100,000
Net Loss P 140,000
Problem 15-11
1. B
2. B
3. A
4. B
Payment to Creditors P 2,000,000

Accounts Payable, end 750,000
Purchases 2,750,000
Merchandise (debit) (700,000) since Merchandise account balance is debit,
there are more merchandise on hand than sold.
Sales 2,050,000
Accounts Receivable (600,000)
Collections P 1,450,000
Cash Transactions:
Capital P 2,000,000
Collections 1,450,000
Expenses (100,000)
Payment to Creditors (2,000,000)
Cash P 1,350,000
SQUEEZE:
Sales 2,050,000
COGS
Purchases 2,750,000
Inventory (450,000) (2,300,000)
Gross Loss (250,000)
Expenses (100,000)
Net Loss (350,000)

Problem 15-12
Dec. 31 Jan. 1
Assets 6,880,000 6,000,000
Liabilities 1,600,000 2,120,000
Equity 5,280,000 3,880,000
Equity, end. P 5,280,000

Withdrawals 400,000
Investments (600,000)
Equity, beg. (3,880,000)
Cash Sales P 800,000

Collections 3,960,000 Equipment, beg P 1,200,000
Discounts 100,000 Purchase 400,000
Returns 320,000 Sold (100,000)
Writeoff 120,000 Equipment, end (1,120,000)
Increase in Trade Receivables 1,200,000 Depreciation P 380,000
Gross Sales P 6,500,000
Discounts (100,000) Proceeds from sale P 120,000
Returns (320,000) Carrying Amount (100,000)
Net Sales P 6,080,000 Gain on Sale P 20,000
Cash Purchases P 600,000 Accrued Expense, beg P 40,000

Payments 2,800,000 Interest Expense 160,000
Allowances 80,000 Accrued Expense, end (80,000)
Decrease in Trade Payables (400,000) Total Interest P 120,000
Gross Sales P 3,080,000
Allowances (80,000) Unearned Income, beg P 120,000
Net Purchases P 3,000,000 Rent Income 80,000
Inventory, beg 1,600,000 Unearned Income, end (40,000)
Inventory, end (960,000) Total Rent Income P 160,000
COGS P 3,640,000
Lancer Company
Income Statement
Net Sales P 6,080,000

COGS 3,640,000
Gross Profit P 2,440,000
Other Income
Gain on Sale 20,000
Rent Income 160,000 180,000
Total Income P 2,620,000
Expenses 800,000
Interest 120,000 1,420,000

Problem 15-13
Dec. 31 Jan. 1
Assets 4,810,000 4,390,000
Liabilities 1,410,000 1,890,000
Equity 3,400,000 2,500,000
Increase in Equity P 900,000

Dividends 400,000
Increase in Share Capital (800,000)
Collections P 2,950,000
Discounted Note 200,000 Proceeds 190,000
Returns 320,000 Face Value, note P 200,000
Increase in Trade Receivables 220,000 Loss on discounting P (10,000)
Sales P 3,370,000
Equipment, beg P 1,000,000
Payments 2,100,000 Purchase 280,000
Decrease in Trade Payables (320,000) Equipment, end (1,120,000)
Purchases P 1,780,000 Depreciation P 80,000
Inventory, beg 1,600,000
Inventory, end (1,500,000) Expense P 790,000
COGS P 1,880,000 Prepaid Expense, beg 120,000
Accrued Expense, end 50,000
Bank loan should not be included in Prepaid Expense, end (100,000)
the Trade Payables. Accrued Expense, beg (40,000)
Total Expense P 820,000
Proceeds from sale P 250,000
Investment, end 100,000 Interest:
Investment, beg (400,000) P 300,000 x 12% (10/12) = P 30,000
Loss on Sale P (50,000)
Corolla Company
Income Statement
Sales P 3,370,000
COGS 1,880,000
Expenses 820,000
Depreciation 80,000
Interest 30,000
Loss on Sale 50,000
Loss on discounting 10,000 990,000

Problem 15-14
Jan. 1
Assets 1,590,000 Accrued Salaries, end P 15,000
Liabilities 460,000 Salaries Expense 400,000
Equity 1,130,000 Accrued Salaries, beg (10,000)
Total Salaries P 405,000
Cash P 200,000
Deposits 3,930,000
Disbursements (3,360,00) Supplies, beg P 40,000
Service Charge (10,000) Supplies Expense 75,000
Cash P 760,000 Supplies, end (20,000)
Total Supplies P 95,000
Receipts P 3,930,000
Writeoff 30,000 ADA, end P 50,000
Increase in Receivables 30,000 Write off 30,000
Sales P 3,990,000 ADA, beg (20,000)
Doubtful Accounts P 60,000
Payments P 2,280,000
Returns (80,000) AP, beg P 250,000
Decrease in inventory 50,000 Purchase on account 2,250,000
COGS P 2,260,000 Returns (70,000)
Payments (2,200,000)
Depreciation: AP, end P 260,000
P 350,000 x 10% = P 35,0000
Camry Company
Income Statement
Sales P 3,990,000
COGS 2,260,000
Salaries 405,000
Supplies 95,000
Tax 45,000
Depreciation 35,000
Bank Charge 10,000
Other Expense 245,000
Miscellaneous 35,000 930,000

Camry Company
December 31, 2019
ASSETS
Current Assets
Cash P 760,000
Inventory 650,000
Supplies 20,000
Noncurrent Assets
LIABILITIES AND OWNER’S EQUITY
Current Liabilities
Accrued Expense 15,000
Equity
Owner’s Capital, beg 1,130,000
Net Income 800,000
Withdrawals (240,000) 1,690,000
Total Liabilities and Owner’s Equity P 2,045,000
Problem 15-15
Cash in Bank, unadj P 250,000
Outstanding Check (50,000)
Correct Balance P 200,000
Total Deposits 3,500,000 Receipts
Total Checks drawn P 3,300,000 Disbursements
Receipts P 3,500,000
Cash Investment (500,000) Cash on Hand, end P 125,000
Bank Proceeds (500,000) Advances (75,000)
Deposit from Sales P 2,500,000 Disbursements 550,000
Cash Collections P 600,000
Disbursements P 3,300,000 Deposit from Sales 2,500,000
Bank Payment (125,000) Accounts Receivable 900,000
Interest (25,000) Sales P 4,000,000
Installments (445,000)
Checks paid-Creditors P 2,705,000

Checks paid-Creditors P 2,705,000

Accounts Payable 350,000 Building, 4,500,000 /15 = P 300,000
Purchases P 3,055,000 Equipment 400,000 / 5 = 80,000
Inventory, end (755,000) Depreciation P 380,000
COGS P 2,300,000
Complex Company
Income Statement
Sales P 4,000,000
COGS 2,300,000
Expenses
Utilities 100,000
Salaries 100,000
Supplies 175,000
Tax 25,000
Interest 70,000 900,000
Complex Company
December 31, 2019
ASSETS
Current Assets
Cash P 325,000
Inventory 755,000
Noncurrent Assets
PPE 6,020,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Advances to Customers 75,000
Equity
Retained Earnings (800,000 – 150,0000) 650,000 7,150,000

Problem 15-16
Cash Collections P 2,960,000

Advances 70,000 Insurance, beg P 35,000
Receipts P 3,030,000 Insurance Expense 80,000
AR, end 200,000 Insurance, end (25,000)
Advances, beg 90,000 Insurance Expense P 90,000
AR, beg (120,000)
Advances, end (50,000) Depreciation:
Sales P 3,150,000 750,000 x 10% = 75,000
200,000 x 10% (1/4) = 5,000
Cash Payments P 1,640,000 2,000,000 x 10% = 200,000
AP, end 100,000 Total P 280,000
AP, beg (170,000)
Purchases P 1,570,000 Land P 500,000
Inventory, beg 230,000 Building 2,000,000
Inventory, end (245,000) Equipment 1 750,000
COGS P 1,555,000 Equipment 2 200,000
Acc Dep – Building (900,000)
Equipment Sold P 50,000 Acc Dep – Equipment 1 (285,000)
Acc. Dep (30,000) Acc Dep – Equipment 2 (5,000)
Carrying Amount P 20,000 PPE P 2,260,000
Proceeds 45,000
Gain P 25,000 Retained Earnings, beg P 365,000
Net Income 705,000
Accrued Salaries, end P 30,000 Dividends 250,000
Salaries Expense 390,000 Retained Earnings, end P 820,000
Accrued Salaries, beg (20,000)
Salaries Expense P 400,000
Ultimate Company
Income Statement
Sales P 3,150,000
COGS 1,555,000
Gain on sale 25,000
Total Income P 1,620,000
Expenses
Salaries 400,000
Insurance 90,000
Other Expenses 135,000 915,000

Ultimate Company
December 31, 2019
ASSETS
Current Assets
Cash P 905,000
Inventory 245,000
Noncurrent Assets
PPE 2,260,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accrued Salaries 10,000
Dividend Payable 125,000
Advances to Customers 50,000
Equity
Retained Earnings 820,000 3,320,000
Problem 16-1
2018 2019
a. Omission of accrued salaries (100,000) 100,000
(140,000)
b. Inventory Overstated (190,000) 190,000
c. Prepaid insurance expensed 120,000
d. Unrecorded Interest receivable 20,000
e. Error in Recording Sale (120,000)
Net Correction (290,000) 170,000
Net Income, before 1,750,000 2,000,000
Net Income P 1,460,000 2,170,000

Adjusting entries:
Books – open Books – closed

Salaries Expense 100,000 none
Salaries Expense 140,000 Retained Earnings 140,000

Salaries Payable Salaries Payable 140,000

Inventory 190,000 none
Prepaid Insurance 120,000 Prepaid Insurance 120,000

Insurance Expense 120,000 Retained Earnings 120,000
Interest Receivable 20,000 Interest Receivable 20,000

Interest Income 20,000 Retained Earnings 20,000
Miscellaneous Income 220,000 Retained Earnings 120,000

Acc. Depreciation 280,000 Acc. Depreciation 280,000
Equipment 400,000 Equipment 400,000
Depreciation 40,000
Gain on sale 60,000
Problem 16-2
2018 2019
a. Inventory Understated 20,000 (20,000)
Inventory Overstated (18,000)
b. Depreciation Understated (4,000)
c. Premium Insurance expensed 10,000 (5,000)
d. Unrecorded Sale 32,000
Net Correction 26,000 (11,000)
Net Income P 3,026,000 3,989,000
Adjusting entries:
Inventory, Jan. 1 20,000 Prepaid Insurance 5,000

Retained Earnings 20,000 Insurance Expense 5,000
Inventory, Dec. 31 18,000 Cash 32,000
Acc. Depreciation 200,000
Retained Earnings 4,000 Machine 200,000
Acc. Depreciation 4,000 Gain on Sale 32,000

Problem 16-3
2018 2019
a. Collection - -
b. Unrecorded Purchases (160,000)
c. Depreciation Understated (90,000)
d. Error in recording supplies -
e. Unrecorded Sale 300,000
Net Correction (90,000) 140,000
Net Income P 3,026,000 5,140,000
Adjusting entries:
Cash 100,000
Purchases 160,000 Acc. Depreciation 90,000
Supplies 20,000 Sales 300,000
Purchases 20,000
Problem 16-4
a. Prepaid Insurance expensed 10,000

b. Inventory, 2018 Understated (80,000)
Inventory, 2019 Understated 120,000
c. Unrecorded Taxes (60,000)
d. Error in recording Advances (100,000)
Net Correction (120,000)
Net Income, before 1,550,000
Adjusting entries:

Insurance Expense 10,000 Tax Expense 60,000
Tax Payable 60,000
Inventory, Jan. 1 80,000
Retained Earnings 80,000 Sales 100,000
Advances to Customer 100,000
Inventory, Dec. 31 120,000

Problem 16-5
A. Net Income P 5,000,000
Accrued Wages (250,000)
Deferred Rent (250,000)
Interest Receivable 100,000
Corrected Net Income P 4,750,000
Problem 16-6
B.
2018 2019 Retained Earnings
Inventory Understated 200,000 (200,000)
Depreciation Understated (50,000)
Depreciation Overstated 100,000
Net Corrections 150,000 (400,000) (250,000)
Problem 16-7
C.
Net Corrections 60,000 (135,000) (75,000)
Problem 16-8
D.
Inventory Overstated (140,000) 140,000
Inventory Understated 200,000
Rent Expense Understated (48,000)
Rent Expense Overstated 66,000
Net Corrections (188,000) 406,000 (218,000)
Problem 16-9
1. A
2. B
3. C

Prepaid Insurance expensed 100,000 (50,000)
Unrecorded Sale 250,000
Net Corrections 250,000 (300,000) (50,000)

Problem 16-10
1. B
2. A
3. A
4. A
2018 2019 RE Working Capital

Inventory Overstated (150,000) (150,000)
Prepaid Insurance expensed 100,000 (100,000)
Unrecorded Sale 108,000 108,000
Net Corrections 200,000 (302,000) (102,000) (42,000)
Problem 16-11
1. A
2. D
2017 2018 2019

a. Omission of accrued salaries (220,000) 220,000
(140,000) 140,000
b. Inventory Understated 400,000 (400,000)
Inventory Understated 150,000
Net Correction 180,000 (860,000) 830,000
Retained Earnings, beg. P 12,600,000

Prior Period adjustment
(860,000) + 180,000 (680,000)
Dividends (1,750,000)
Problem 16-12
B.
2018 2019
Unrecorded Accrued Salaries (80,000) 80,000
Unrecorded Accrued Salaries (120,000)
Net Corrections (20,000) (240,000)

Problem 16-13
A.
2019
Inventory, beg Overstated 300,000
Inventory, end Understated 500,000
Prepaid Insurance Expensed (50,000)
Error in Recording Advances (100,000)
Net Corrections 650,000
Problem 16-14
1. A
2. B
3. D

Inventory Understated - -
Depreciation Overstated 250,000)
Accrued Income Overstated (300,000)
Accrued Salaries Understated (150,000)
Unrecorded Sale 100,000
Net Corrections 250,000 (1,150,000) (900,000)
Problem 16-15
1. D
2. A
3. A
4. D
2018 2019 RE Working Capital

Inventory Understated 10,000 10,000
Depreciation Overstated 25,000
Prepaid Insurance Understated 5,000 (5,000)
Unearned Income Overstated 4,000 4,000
Accrued Salaries Understated (20,000) (20,000)
Net Corrections (5,000) 16,000 11,000 (6,000)

Problem 16-16
B. Net Income, before P 6,500,000
Unrecorded Purchases (1,000,000)
Unrecorded Inventory 1,500,000
Unrecorded Advertising (500,000)
Overstated Rent Income (200,000)
Understated Insurance 100,000
Problem 16-17
1C 6 D
2A 7 D
3A 8 B
4C 9 D
5C 10 C
Problem 17-1
Accounts Receivable, beg. P 440,000 Direct Method – Operating Activities:

Sales 4,500,000
Accounts Receivable, end (540,000) Cash received P 4,390,000
Write Off (10,000) Cash payments (2,730,000)
Cash received from customers P 4,390,000 Salaries Paid (630,000)
Insurance Paid (25,000)
Accounts Payable, beg. P 160,000 Rent (250,000)
Purchases 2,850,000 Other Expenses (100,000)
Accounts Payable, end (280,000) Net Cash Provided P 655,000
Cash payments to creditors P 2,730,000
Accrued Salaries, beg P 80,000

Salaries Expense 600,000 Indirect Method – Operating Activities:
Accrued Salaries, end (50,000)
Salaries Paid P 630,000 Net Income P 450,000
Increase in AR (80,000)
Prepaid Insurance, end P 15,000 Decrease in Inventory 150,000
Salaries Expense 20,000 Increase in Insurance (5,000)
Accrued Salaries, beg (10,000) Increase in AP 120,000
Insurance Paid P 25,000 Decrease in Accrued
Salaries (30,000)
Rent P 250,000 Depreciation 50,000
Net Cash Provided P 655,000
Other Expenses P 100,000

Problem 17-2
Hill Company
Statement of Cash Flows
Year Ended XX 2019
Cash flows from operating activities:

Increase in Accounts Receivable (650,000)
Increase in Inventory (750,000)
Decrease in Prepaid Expenses 50,000
Increase in Accounts Payable 250,000
Decrease in Accrued Expenses (150,000)
Net Cash provided P 600,000
Cash flows from investing activities:

Purchase of equipment (1,000,000)
Cash flows from financing activities:

Issuance of share capital 500,000
Payment of cash dividend (300,000)
Net Cash provided 200,000
Decrease in cash and cash equivalents P (200,000)
Add: Cash and Cash Equivalent – 2018 950,000
Cash and Cash Equivalent – 2019 P 750,000
Problem 17-3
Accounts Receivable, beg. P 210,000

Sales 4,450,000 Prepaid Insurance, end P 80,000
Accounts Receivable, end (370,000) Salaries Expense 100,000
Write Off (20,000) Accrued Salaries, beg (90,000)
Cash received from customers P 4,270,000 Insurance Paid P 90,000
Accounts Payable, beg. P 345,000 Rent P 350,000

Purchases 2,630,000
Accounts Payable, end (400,000) Interest Expense P 40,000
Cash payments to creditors P 2,575,000 Interest Payable, end (5,000)
Interest Paid P 35,000
Accrued Salaries, beg P 40,000
Salaries Expense 640,000 Income Tax Payable, beg P 15,000
Accrued Salaries, end (70,000) Income Tax Expense 200,000
Salaries Paid P 610,000 Income Tax Payable, end (35,000)
Interest Paid P 180,000

Sandy Company
Year Ended XX 2019

Cash received P 4,270,000
Cash payments (2,575,000)
Salaries Paid (610,000)
Insurance Paid (90,000)
Rent (350,000)
Interest Paid (35,000)
Income Tax Paid (180,000)

Purchase of equipment (870,000)
Sale of Equipment 110,000
Net Cash used (760,000)

Issuance of Bonds Payable 600,000
Purchase of Treasury (140,000)
Net Cash provided 300,000
Decrease in cash and cash equivalents P (30,000)
Sandy Company
Year Ended XX 2019

Decrease in Prepaid Expenses 10,000
Increase in Salaries Payable 30,000
Increase in Income Tax Payable 20,000
Increase in Interest Payable 5,000
Gain on Sale (60,000)

Problem 17-4
Forest Company
Year Ended XX 2019

Decrease in Accounts Payable (310,000)
Increase in Accrued Expenses 100,000
Unrealized gain (100,000)
Loss on retirement 28,000
Discount Amortization 10,000
Net Cash provided P 1,393,000

Retirement of Bonds (210,000)
Payment of cash dividend (1,000,000)
Net Cash provided 1,090,000
Increase in cash and cash equivalents P 303,000
Problem 17-5
Fearsome Company
Year Ended XX 2019

Decrease in Accounts Receivable 100,000
Investment Income (200,000)

Purchase of equipment (1,200,000)
Net Cash used (1,130,000)

Issuance of share capital 1,500,000
Sale of Treasury 900,000

Net Cash provided (100,000)

Increase in cash and cash equivalents P 2,000,000
Cash and Cash Equivalent – 2019 P 2,350,000
Problem 17-6
Kenwood Company
Year Ended XX 2019

Increase in Accrued Expenses 250,000
Amortization of Patent 15,000
Gain on Retirement (50,000)
Loss on Sale 20,000

Purchase of Land (425,000)

Retirement of Bonds (450,000)
Problem 17-7
Sandra Company
Year Ended XX 2019

Decrease in Inventory 80,000
Increase in Deferred Tax Liability 20,000
Depreciation 82,000

Loss on Sale 10,000


Purchase of Equipment (120,000)

Payment of long term note (300,000)
Problem 17-8
A. Checking Account #101 P 1,760,000
Checking Account #201 (100,000)
Time Deposit 250,000
Commercial papers 1,000,000
90-day Treasury Bill 500,000
Total P 3,400,000
Problem 17-9
A. Cash flow from operating activities P 400,000
Cash flow from investing activities (1,500,000)
Cash flow from financing activities 1,000,000
Decrease (100,000)
Add: Cash and Cash Equivalents – beg 1,300,000
Cash Balance P 1,200,000
Problem 17-10
A. Cash flow from operating activities P 4,200,000 [ SQUEEZE ]
Cash flow from financing activities (800,000)
Increase 900,000
Problem 17-11
A. Cash flow from operating activities P 3,500,000 [ SQUEEZE ]
Cash flow from financing activities 1,800,000
Increase 500,000

Problem 17-12
C. Depreciation P 1,900,000
Accounts Receivable (1,100,000)
Inventory (730,000)
Total P 1,290,000
Problem 17-13
D. Net Income P 750,000
Inc. Accounts Receivable (29,000)
Dec. Prepaid Rent 21,000
Inc. Accounts Payable 15,000
Problem 17-14
C. Net Income P 1.500,000
Premium on Bonds (14,000)
Deferred Tax liability 18,000
Problem 17-15
Inc. Accounts Receivable (400,000)
or
Accounts Receivable, beg P 1,300,000

Sales 8,000,000
Accounts Receivable, end (1,900,000)
Write Off (70,000)
Recovery 20,000
Cash Collections P 7,350,000
Cash Expenses (5,250,000)
Problem 17-16
A. Accounts Receivable, end P 800,000 Purchases P 3,950,000
Collections 9,500,000 Inventory, beg 250,000
Accounts Receivable, beg (900,000) Inventory, end (300,000)
Total Sales P 9,400,000 COGS P 3,900,000
Accounts Payable, end P 500,000

Cash Paid for Inventory 4,100,000
Accounts Payable, beg (650,000)

Sales P 9,400,000
COGS (3,900,000)
Gain on Sale 300,000
Other Expenses (1,400,000)
Prepaid Expense (200,000)
Problem 17-17
C. Income tax paid P 325,000
Interest Payments 220,000
Total P 545,000
Problem 17-18
Dec. Accounts Receivable 60,000
Inc. Inventory (120,000)
Dec. Accounts Payable (140,000)
Inc. Accrued Expenses 160,000
Gain on sale (200,000)
Problem 17-19
D. Sales P 2,800,000
COGS (1,000,000)
Distribution (400,000)
Administrative (350,000)
Interest (80,000 + 20,000) (100,000)
Problem 17-20
B. Purchase of land P (2,500,000)
Purchase of plant (2,500,000)
Proceeds from Sale 400,000
Net Cash used P (4,600,000)
Problem 17-21
D. Issuance of Share Capital P 1,500,000
Borrowings (Net increase – 200,000) 1,500,000
Payment of cash dividends (700,000)

Problem 17-22
1. D
2. C
Purchase of Building P 400,000

Purchase of Land 350,000
Net Cash used – investing P 750,000
Long term loan P 550,000

Net Cash provided – financing P 250,000
Problem 17-23
1. A
2. D
3. B
Accumulated Depreciation Increase P 400,000

Equipment sold 120,000
Depreciation Expense P 520,000
Purchase of Equipment P (200,000)

Net Cash used – investing P (20,000)

Net Cash provided – operating P 3,470,000
Problem 17-24
1. D
2. A
Sale of Treasury P 750,000

Payment of Dividend (380,000)
Purchase of bonds P (1,800,000)

Net Cash used – investing P (1,700,000)
Problem 17-25
B. Sale of equipment P 1,770,000
Increase in patent (450,000)
Increase in financial asset ( 100,000)
Net cash provided – investing P 1,220,000

Problem 17-26
1. A
2. B
3. C
Retained Earnings, beg P (1,000,000)

Add: Net Income (squeeze) 6,500,000
Less: Dividends (3,000,000)

Decrease in Accounts Receivable 500,000
Increase in Inventory (1,500,000)
Decrease in Prepaid Expense 200,000
Decrease in Accounts Payable (3,500,000)
Increase in Accrued Expense 1,000,000
Depreciation 4,500,000**
Purchase of Equipment P (15,000,000)***

Sale of Equipment 1,800,000
Net Cash used – investing P (13,200,000
Long term note P 10,000,000

Payment of note (3,000,000)
Net Cash provided – financing P 4,000,000
**Accumulated Depreciation, end P20,000,000

Sold Equipment 500,000
Accumulated Depreciation, beg (16,000,000)
Depreciation Expense P 4,500,000
***PPE, end P 55,000,000

Sold Equipment 2,000,000
PPE, beg (42,000,000)
Problem 17-27
1. A
2. B
3. D

Increase in Accounts Receivable (2,400,000)
Increase in Accounts Payable 1,000,000

Purchase of Plant P (2,500,000)

Sale of Investment 1,250,000
Net Cash used – investing P (1,250,000)
Issuance of share capital P 2,500,000

Payment of dividends (2,350,000)
Problem 17-28
1. A
2. B
3. C
Accounts Receivable, beg P 840,000

Sales 12,000,000
Accounts Receivable, end (780,000)
Write off (50,000)
Cash Collected from customers P 12,010,000
COGS P 8,400,000
Inventory, end 1,400,000
Inventory, beg (1,500,000)
Gross Purchases P 8.300,000
Accounts Payable, beg 950,000
Accounts Payable, end (980,000)
Cash Disbursed for purchases P 8,270,000
Variable expense (1,200,000 x 50%) P 600,000

Fixed Expenses (excluding depreciation
and bad debts) 600,000
Variable expenses of 2018 550,000 ratio is based on percentage of sales
1,200,000 / 12,000,000 = 10%
10% x 11,000,0000 x 50%
Cash Disbursed for 2019 P 1,750,000
Problem 17-29
1. C
2. C
3. B
Accounts Receivable, beg P 670,000

Sales 7,980,000
Accounts Receivable, end (900,000)

COGS P 5,830,000
Inventory, beg (860,000)
Gross Purchases P 5.750,000
Accounts Payable, beg 530,000
Accounts Payable, end (480,000)
Cash Disbursed for purchases P 5,800,000

Cash Disbursed for purchases (5,800,000)
Cash Expenses (1,070,000)
Increase P 880,000
Cash Balance, Jan 1 620,000
Cash Balance, Dec 31 P 1,500,000
Problem 17-30
1. D
2. B
3. B

Increase in Inventory (1,500,000)
Increase in Accrued Expense 50,000
Depreciation 480,000**
Amortization of Patent 50,000***
Purchase of PPE P (850,000)****

Sale of Investment 50,000
Net Cash used – investing P (800,000)
Long Term note P 700,000

Retirement of bonds (2,500,000)
Issuance of bonds 2,750,000
Payment of dividends (1,400,000)
Net Cash used – financing P (450,000)
**Accumulated Depreciation P180,000 ****PPE P 500,000

Disposal of Equipment 200,000 Disposal of Equipment 200,000
Sale of Equipment 100,000 Sale of Equipment 150,000
Depreciation Expense P480,000 Purchases P 850,000
*** Patent (25,000 x 13) P 325,000

Patent, carrying amount (275,000)
Amortization P 50,000

Problem 17-31
1. C
2. A
3. D

Net Cash provided – operating P 920,000
Sale of Equipment P 350,000

Sale of Investment 135,000
Increase in Investments (300,000)
Purchase of PPE (1,190,000)**
Net Cash used – investing P(1,005,000)
Issuance of share capital P 220,000

Short term bank debt 325,000
**PPE P 700,000
Sold Equipment 600,000
Equipment acquired through
Issuance of shares (110,000)
Problem 17-32
1. B
2. C
3. C

Depreciation 930,000**
Amortization 120,000
Loss on condemnation 300,000
Cash received from Land P 3,300,000

Purchase of Patent (680,000)
Purchase of PPE (5,800,000)***
Net Cash used – investing P 3,180,000
Payment of cash dividends P (250,000)

Acquisition of Treasury (620,000)
Net Cash use – financing P 870,000


1C 6 B 1C
2A 7 D 2D
3A 8 C 3A
4C 9 C 4C
5D 10 D 5B
Problem 18-1
Book value per share = Shareholder’s Equity

No. of shares outstanding
= P 8,800,000 / 50,000 shares
= P 176
Problem 18-2
a. Excess Preference Ordinary
P 3,000,000 1,000,000 4,000,000
(240,000) 240,000
(480,000) 480,000
P 2,280,000
1/5 456,000
4/5 1,824,000
Balance 1,696,000 6,304,000
Outstanding shares / 10,000 / 40,000
Book value per share P 169,6 P 157.6
b. Excess Preference Ordinary

P 3,000,000 1,000,000 4,000,000
(240,000) 240,000
(600,000) 600,000
P 2,160,000
1/5 432,000
4/5 1,728,000
Balance 1,672,000 6,328,000
Book value per share P 167.2 P 158.2
c. Excess Preference Ordinary

P 3,000,000 1,000,000 4,000,000
(240,000) 240,000
(480,000) 480,000
P 2,280,000
4% 40,000
2,240,000
Balance 1,280,000 6,720,000
Book value per share P 128 P 168 x

d. Excess Preference Ordinary

P 3,000,000 1,000,000 4,000,000
(240,000) 240,000
P 2,760,000 2,760,000
Balance 1,240,000 6,760,000
e. Excess Preference Ordinary

P 3,000,000 1,000,000 4,000,000
(120,000) 120,000
P 2,880,000 2,880,000
Balance 1,120,000 6,880,000
Problem 18-3
Preference as to assets
Excess Preference Ordinary
P (900,000) 2,000,000 4,000,000
(720,000) 720,000
P(1,620,000) (1,620,000)
Balance 2,720,000 2,380,000
Book value per share P 68 P 59.5 x
Preference as to dividends
P ( 900,000) 2,000,000 4,000,000
(300,000) (600,000)
Balance 1,700,000 3,400,000
Book value per share P 42.5 P 85 x
Problem 18-4

P 4,000,000 2,000,000 5,000,000
(240,000) 240,000
P3 x 40,000 (120,000) 120,000
P 3,640,000 3,640,000
Balance 2,360,000 8,640,000

Problem 18-5
Preference as to assets
Excess 6% 8% Ordinary
P 530,000 3,000,000 2,000,000 5,000,000
(540,000) 540,000
(160,000) 160,000
P (170,000) (170,000)
Balance 3,540,000 2,160,000 4,830,000
Outstanding shares / 30,000 / 20,000 /50,000
Book value per share P 118 P 108 P96.6 x
Preference as to dividends
P 530,000 3,000,000 2,000,000 5,000,000
(360,000) 360,000
P 170,000
180/340 90,000
160/340 80,000 x
Balance 3,450,000 2,080,000 5,000,000
Book value per share P 115 P 104 P100 x
Problem 18-6
Preference Ordinary
Amount Shares Amount Shares
Issued 1,500,000 15,000 Issued 3,000,000 30,000
Subscribed 200,000 2,000 Subscribed 500,000 5,000
Treasury (100,000) (1,000) Treasury (100,000) (1,000)
Outstanding 1,600,000 16,000 Outstanding 3,400,000 34,000
PS 100,000 OS 100,000
Share Premium 10,000 Share Premium 30,000
Treasury 110,000 Treasury 70,000
Share Premium P 320,000 [ 300,000 – 10,000 + 20,000 ]

RE, unapp. 968,000
RE, app. 680,000
Total P 1,968,000

P 1,968,000 1,600,000 3,400,000
(960,000) 960,000
(408,000) 408,000
P 600,000
16/50 192,000
34/50 408,000
Balance 2,752,000 4,216,000

Problem 18-7
Ordinary
Amount Shares OS 200,000
Issued 2,200,000 22,000 Share Premium 100,000
Treasury (200,000) (2,000) Treasury 300,000
Outstanding 2,000,000 20,000

P 820,000 1,000,000 2,000,000
(160,000) 160,000
P 660,000 660,000
Balance 1,160,000 2,660,000
Problem 18-8
Ordinary
Amount Shares
Issued 2,000,000 20,000 OS 500,000
Subscribed 1,000,000 10,000 Share Premium 100,000
Treasury (500,000) (5,000) Treasury 400,000
Outstanding 2,500,000 25,000

P 2,440,000 1,500,000 2,500,000
(540,000) 540,000
(300,000) 300,000
P 1,600,000
15/40 600,000
25/40 1,000,000
Balance 2,640,000 3,800,000
Problem 18-9
Ordinary
Amount Shares
Issued 10,000,000 200,000 OS 1,000,000
Subscribed 3,500,000 70,000 Share Premium 200,000
Treasury (1,000,000) (20,000) Treasury 1,200,000
Outstanding 2,500,000 250,000


P 7,800,000 4,000,000 12,500,000
(1,200,000) 1,200,000
P10x40,000 (400,000) 400,000
P 6,200,000 6,200,000
Balance 5,600,000 18,700,000
Problem 18-10
Annual Dividends Paid To be carried = Preference Ordinary

2018 240,000 200,000 40,000 = 200,000 -
2019 240,000 600,000 - = 280,000 320,000
Problem 18-11
2015 (300,000)
2016 (200,000)
2017 (100,000)
2018 350,000
2019 1,260,000
Excess 1,010,000 10% 12% Ordinary
(50,000) 50,000
(600,000) 600,000
(150,000) 150,000
210,000
5/30 35,000
10/30 70,000
15/30 105,000
Dividends 85,000 670,000 255,000
Problem 18-12
Ordinary (P5 x 250,000) P 1,000,000

Preference:
15% x 2,500,000 375,000
Maximum Dividend P 1,375,000
Problem 18-13
Percentage of ordinary dividend (2,000,000 / 10,000,000) 20%

Ordinary (P10 x 200,000) P 2,000,000
Preference:
12% x 8,000,000 960,000
20% x 8,000,000 1,600,000

Problem 18-14
D. Excess P 4,250,000
Preference:
Arrears (250,000)
Liquidating (500,000)
Ordinary P 3,500,000
OS – Capital 3,500,000
Outstanding / 100,000
Book value P 70.00
Problem 18-15
A. PS – Capital P 1,000,000
Dividends 120,000
Liquidating 100,000
Balance P 1,220,000
Book value P 61
Problem 18-16
C. Excess P 400,000
Preference:
Arrears (160,000)
Ordinary P 140,000
Book value P 26.40
Problem 18-17
B. Excess P 950,000
Preference:
Ordinary P 900,000
Book value P 130.00
Problem 18-18
A. Excess P 218,000 [ (90,000 -10,000) + 138,000 ]
Preference (40,000)
Ordinary P 178,000
OS – Capital 890,000 { 900,000 – 10,000 ]
Outstanding / 89,000 [ 90,000 – 1,000 ]
Book value P 12.00

Problem 18-19
C. Excess P 410,000 [ (200,000 – 50,000) + 260,000 ]
Preference:
Arrears (80,000)
Ordinary P 330,000
OS – Capital 1,000,000 [ 1,100,000 – 100,000 ]
Outstanding / 10,000 [ 11,000 – 1,000 ]
Book value P 133
Problem 18-20
A.
P 3,740,000 2,000,000 3,000,000 5,000,000
(720,000) 720,000
(420,000) 420,000
(600,000) 600,000
P 2,000,000
2/10 400,000
3/10 600,000
5/10 1,000,000
Balance 3,120,000 4,020,000 6,600,000
B. Book value per share P 156 P 402 P 132 x
Problem 18-21
C. Ordinary
Amount Shares
Issued 4,000,000 40,000
Subscribed 2,000,000 20,000
Treasury (1,000,000) (10,000)
Outstanding 5,000,000 50,000
Excess P 3,600,000 [ (1,000,000 + 200,000) + 2,400,000 ]

Preference:
Arrears (600,000)
Ordinary P 3,000,000
Book value P 160
Problem 18-22
B. Preference Annual Dividend P 240,000
Add: Arrears 120,000
Total Preference Dividend P 360,000
Dividends Paid 440,000
Ordinary Dividend P 80,000

Problem 18-23
D. Ordinary (P4 x 250,000) P 1,000,000
Preference:
10% x 2,500,000 250,000
Problem 18-24
C. Preference Ordinary
Dividend 300,000 200,000
Balance:
P 500,000
3/5 300,000
2/5 200,000
Total 600,000 400,000
Problem 18-25
B. Preference Ordinary
Dividend 180,000 240,000
Balance:
P 480,000
1/5 96,000
4/5 384,000
Total 276,000 624,000
Problem 18-26
1. B
2. A

2017 360,000 500,000 - = 360,000 140,000
2018 360,000 300,000 60,000 = 300,000 -
2019 360,000 900,000 - = 420,000 480,000
Problem 18-27
1. A
2. B

2017 5,000,000 3,000,000 2,000,000 = 3,000,000 -
2018 5,000,000 4,000,000 1,000,000 = 4,000,000 -
2019 5,000,000 12,000,000 - = 8,000,000 4,000,000

Problem 18-28
1. B
2. A
3. B

P 5,000,000
(120,000) 120,000
(1,250,000) 1,250,000
(750,000) 750,000
P 2,880,000
1/4 720,000
3/4 2,160,000
Dividends 120,000 1,970,000 2,910,000
Problem 18-29
1C
2B
3D
4A
5A
Problem 19-1
a.
Net Income e = P 2,800,000
Outstanding Ordinary Share 50,000
Basic EPS = P 56
b.
Net Income e = P 2,800,000 – 200,000

Outstanding Ordinary Share 50,000
Basic EPS = P 52
Problem 19-2
Date Shares Months Outstanding Peso Months

Jan. 1 120,000 12/12 120,000
Jun. 1 12,000 7/12 7,000
Sept. 30 (24,000) 3/12 (6,000)
121,000
EPS = P 3,630,000
121,000
EPS = P30

Problem 19-3

Jan. 1 150,000 12/12 150,000
May. 1 30,000 8/12 20,000
Jul. 1 (12,000) 6/12 (6,000)
Dec. 1 6,000 1/12 500
164,500
EPS = P (2,690,000) – 600,000

164,500
EPS = P(20)
Problem 19-4

Jan. 1 500,000 x 2 12/12 1,000,000
Mar. 1 60,000 x 2 8/12 100,000
Nov. 1 (48,000) 1/12 (8,000)
1,092,000
EPS = P 5,860,000 – 400,000

1,092,000
EPS = P5
Problem 19-5

Jan. 1 3,000,000 12/12 3,000,000
Jan. 1 250,000 / 5 12/12 50,000
Apr. 1 600,000 9/12 450,000
Jul. 1 (400,000) 6/12 (200,000)
3,300,000

Current Dividend (2,000,000) [ 400,000 / 2 ]
Payable on Redemption (1,000,000) Dividends on Redeemable Preference are Interests
Exceptional Profit 4,000,000
Outstanding / 3,300,000
EPS P 4.85

Problem 19-6
Preference Ordinary
P 2,600,000
(1,240,000) 240,000 1,000,000
P 1,360,000
3/8 510,000
5/8 850,000
Balance 750,000 1,850,000
Outstanding / 30,000 / 100,000
Earnings per share P 25 P 18.5 c
Problem 19-7
Theoretical Value: Adjustment factor:

11 - 5 =1 11 – 1 = 10
5+1 11/10 = 1.1
2019
EPS = P 11,000,000
600,000 x 1.1
= P 16.67
2020
EPS = P 15,000,000
710,000 [ 600,000 x 1.1 x 2/12 ] + [ 720,000 x 10/12 ]
= P 21.13
2021
EPS = P 18,000,000
720,000 [ 600,000 + 120,000 ]
= P 25
Problem 19-8

12 - 6 =1 12 – 1 = 11
5+1 12/11
2019
EPS = P 2,250,000 1
810,000 x 12/11
= P 2.55
2020
EPS = P 3,500,000
950,000 [ 810,000 x 1.1 x 3/12 ] + [ 972,000 x 9/12 ]
= P 3.68

Problem 19-9
A. Net Income P 750,000
Preference (120,000)
P 630,000
EPS P 10.5
Problem 19-10
D. Net Income P 1,920,000
P 1,720,000
EPS P 7.82
Problem 19-11
EPS P 21.5
Dividends from redeemable preference share are in a form of interest, so it has been
included in the computation of your net income.
Problem 19-12
B. Net Income P 5,000,000
Preference ( 100,000)
P 4,900,000
EPS P 24.5
Problem 19-13
D. P 1,800,000
The Preference share is a potential ordinary share or a potential diluter, dividends are not
deducted
Problem 19-14
P 1,000,000
Outstanding / 250,000 [ issued – treasury ]
EPS P 58

Problem 19-15
C. Net Income P 7,500,000
P 7,100,000
Outstanding / 400,000 [ 200,000 x 2 ]
EPS P 17.75
Problem 19-16
1. B
2. B
2019
Outstanding 200,000 [ 100,000 x 2 ]
EPS = P 1.75
2020
Outstanding 230,000 [ 100,000 x 2 ] + [ 20,000 x 2 x 9/12 ]
EPS = P 1.78
Problem 19-17
B. Shares
Mar. 1 100,000 x 2 x 1.2 12/12 240,000
Jun. 1 30,000 x 1.2 7/12 21,000
Shares Outstanding 261,000
Problem 19-18
B. Shares
Jan. 1 100,000 x 2 x 1.2 x 3 12/12 720,000
Apr. 1 30,000 x 2 x 1.2 x 3 9/12 162,000
Jun. 30 (10,000) x 1.2 x 3 6/12 (18,000)
Problem 19-19
A. Shares
Jan. 1 44,000 x 1.25 x 3 12/12 165,000
Feb. 1 56,000 x 1.25 x 3 11/12 192,500
May. 1 (25,000) x 1.25 x 3 8/12 (62,500)
Sept. 1 10,000 x 3 4/12 10,000

Problem 19-20
A. Shares
Jan. 1 200,000 x 2 12/12 400,000
Jul. 1 100,000 6/12 50,000
Problem 19-21
1. A
2. A
2019
Shares
Jan. 1 250,000 x 1.2 x 3 12/12 900,000
Mar. 1 24,000 x 1.2 x 3 10/12 72,000
Oct. 1 16,000 x 3 3/12 12,000
Dec. 1 (15,000) x 3 1/12 (3,750)
2020
Jan. 1 250,000 x 1.2 x 3 12/12 900,000
Jan. 1 24,000 x 1.2 x 3 12/12 86,400
Jan. 1 16,000 x 3 12/12 48,000
Jan. 1 (15,000) x 3 12/12 (45,000)
Sept 1 60,000 4/12 20,000
Shares Outstanding 1,009,400
Problem 19-22
C. Shares
Jan. 1 1,250,000 x 2 12/12 2,500,000
Apr. 1 200,000 x 2 9/12 300,000
Jun. 30 (100,000) x 2 3/12 (50,000)
Shares Outstanding 2,750,000
Problem 19-23
A.
160 - 100 = 10 160 – 10 = 150
5+1 160/150
2019
EPS = P 6,000,000
350,000 [ 300,000 x 160/150 x 3/12 ] + [ 360,000 x 9/12 ]
= P 17.14

Problem 19-24
1. B
2. B
2019
Bonus issue 400,000
Total 600,000

EPS P 30
2020
EPS P 100
Problem 19-25
1B 6 A
2D 7 B
3B 8 D
4A 9 A
5B 10 B
Problem 20-1
Basic EPS e = P 1,730,000 For Dilution:

50,000 Interest (net of Tax)
= P 34.6 = P 1,000,000 x 10% x 70%
= P 70,000
Diluted EPSe = P 1,730,000 + 70,0000 Assumed Ordinary shares
50,000 + 10,000 = 1,000 bonds x 10 shares
= P 30 = 10,000 ordinary shares
Problem 20-2
Basic EPS e = P 2,749,000

100,000 For Dilution:
= P 27.49 Interest (net of Tax):
= P 2,000,000 x 12% x 9/12 x 70%
Diluted EPSe = P 2,749,000 + 126,0000 = P 126,000
100,000 + 15,000 Assumed Ordinary shares
= P 25 = 2,000 bonds x 10 shares x 9/12
= 15,000 ordinary shares

Problem 20-3
Basic EPS e = P 2,320,000 0 For Dilution:

100,000+ 45,000 Interest (net of Tax):
= P 16 = P 3,000,000 x 12% x 3/12 x 70%
+ P 1,000,000 x 12% x 70%
Diluted EPSe = P 2,320,000 + 147,000 = P 147,000
100,000 + 80,000 Assumed Ordinary shares
= P 13.71 = 4,000 bonds x 20 shares
= 80,000 ordinary shares
Problem 20-4

100,000 Interest (net of Tax):
= P 20 = P 800,000 x 5% x 70%
= P 28,000
Diluted EPSe = P 2,000,000 + 28,0000 Assumed Ordinary shares
100,000 + 12,000 = 80 bonds x 150 shares
= P 18.11 = 12,000 ordinary shares
Problem 20-5
Basic EPS e = P 2,850,000 – 240,000

90,000
= P 29
Diluted EPSe = P 2,850, 000 0

90,000 + 20,000
= P 25.91
Problem 20-6
Basic EPS e = P 5,000,000 – 300,000

200,000 + 50,000
= P 18.8
Diluted EPSe = P 5,000, 000 0

200,000 + 150,000
= P 14.29

Problem 20-7

200,000
= P 37.5 Share options:
Option Shares 50,000
Diluted EPSe = P 7,500, 000 0 [ (75-60) / 75 ] x 0.2
200,000 + 10,000 Incremental shares 10,000
= P 35.71
Problem 20-8
Basic EPS e = P 1,820,000

200,000
= P 9.1
Dilutive EPS is the same as Basic EPS

Share options are anti dilutive since the market price is lower than the exercise price
Problem 20-9

60,000
= P 50 Share options:
Option Shares (20,000 x 9/12) 15,000
Diluted EPSe = P 3,000, 000 0 [ (250-160) / 250 ] x 0.36
60,000 + 5,400 Incremental shares 5,400
= P 45.87
Problem 20-10
Basic EPS e = P 5,500, 000 0 For Dilution:

100,000 + 37,500
= P 40 Share options:
Option Shares (50,000 x 9/12) 12,500
Diluted EPSe = P 3,000, 000 0 [ (400-120) / 400 ] x 0.7
100,000 + 37,500 + 8,750 Incremental shares 8,750
= P 37.61
Problem 20-11
B. Net Income P 3,400,000
Outstanding 1,250,000
D EPS =P 2.72

Problem 20-12
B. Net Income P 840,000
Outstanding:
OS – 200,000
PS – 100,000
[20,000 x 5]
/300,000
D EPS =P 2.8
Problem 20-13
1. D
2. A
Net Income P 2,000,000 Net Income P 2,000,000

Dividends (50,000) Outstanding
Earnings P 1,950,000 OS – 100,000
Outstanding PS – 60,000
OS – 100,000 [ 10,000 x 6 ]
PS – 20,000 / 160,000
[ 10,000 x 6 x 4/12 ] D EPS =P 12.5
/ 120,000
B EPS =P 16.25
Problem 20-14
C. Shares Months Outstanding Peso Months
500,000 12/12 500,000
120,000 3/12 30,000
100,000 12/12 100,000
630,000
Problem 20-15
B. Shares Months Outstanding Peso Months
2,500,000 12/12 2,500,000
500,000 9/12 375,000
250,000 6/12 125,000
200,000 3/12 50,000
3,050,000
Problem 20-16
Interest: 49,000 [ 2,000,000 x 7% x ½ x 70% ]
Earnings P 5,600,000
Outstanding
OS – 100,000
PS – 40,000
/ 140,000
D EPS =P 40

Problem 20-17
C. Shares Months Outstanding Peso Months
600,000 12/12 600,000
180,000 9/12 135,000
150,000 12/12 150,000
885,000
Problem 20-18
1. A
2. A
Shares Months Outstanding Peso Months

800,000 12/12 800,000
60,000 8/12 40,000
(100,000) 6/12 (50,000)
Converted 160,000 3/12 40,000
830,000
B EPS P 11.45

800,000 12/12 800,000
60,000 8/12 40,000
(100,000) 6/12 (50,000)
Converted 400,000 12/12 400,000
1,190,000
Interest 378,000 [ (2,000,000 x 12% x 9/12) + (3,000,000 x 12%) ] 70%
Outstanding /1,190,000
B EPS P 8.30
Problem 20-19
B. The convertible bonds is antidilutive
Net Income P 6,000,000 Net Income P 6,000,000 + 490,000
Outstanding /200,000 Outstanding /200,000 + 10,000 0
B EPS P 30 D EPS P 30.90
Problem 20-20
Interest 210,000 [ 4,000,000 x 10% x 9/12 x 70% ]
D EPS P 14.47

Problem 20-21
C. Net Income P 6,000,000
Interest 840,000 [ 20,000,000 x 6% x 70% ]
Outstanding / 750,000 [ 500,000 + (100,000 x3/12) + 225,000 ]
D EPS P 9.12
Problem 20-22
B.
300,000 12/12 300,000
50,000 6/12 25,000
Share options 325,000
40,000
(20 - 15) /20 x 0.25
10,000 10,000
335,000
Problem 20-23
Outstanding / 115,000 plus Share Options: 40,000 x [ (16-10) /16 ]
D EPS P 17.39
Problem 20-24
1. B
2. A
B EPS P 15.38

Outstanding / 133,750 plus Share Options : (40,000 x 3/12) x [ (16-10) / 16 ]
D EPS P 14.95
Problem 20-25
D. Shares Months Outstanding Peso Months
150,000 3/12 37,500
120,000 2/12 20,000
180,000 7/12 105,000
162,500
D EPS P 15.38
Share options are anti dilutive, market price is lesser than exercise price

Problem 20-26
1D 6 B
2C 7 D
3D 8 D
4C 9 A
5C 10 A
Problem 21-1
Basic EPS e = P 3,695,000 – 360,000

100,000
= P 33.35
Test for Dilution

1 Preference Dividends s 2 Interest (net of tax) c
Ordinary Shares if converted Ordinary Shares if converted
= 360,000 = 105,000
60,000 30,000
= 6 = 3.5
Income Ordinary Shares EPS

Basic EPS 3,335,ooo 100,000 33.35
Convertible bond 105,000 30,000
Diluted EPS 3,440,000 130,000 26.46
Convertible PS 360,000 60,000
Diluted EPS 3,800,000 190,000 20.00
Problem 21-2
Basic EPS e = P 2,410,000 – 100,000

100,000
= P 23.1
Test for Dilution

= 100,000 = 140,000
40,000 30,000
= 2.5 = 4.67

Basic EPS 2,310,ooo 100,000 23.10
Diluted EPS 2,410,000 140,000 17.21
Diluted EPS 2,550,000 170,000 15.00

Problem 21-3

Dividend (300,000)
Outstanding / 380,000 plus 20,000 [ 60,000 x 4/12 ]
B EPS P 16.84
Test for Dilution

1 Share options 30,000 2 Interest (net of tax) c
[30 -25] /30 x 5/30 Ordinary Shares if converted
5,000
= 70,000
40,000
= 1.75

Basic EPS 6,400,000 380,000 16.84
Share Options 5,000
Diluted EPS 6,400,000 385,000 16.62
Diluted EPS 6,470,000 425,000 15.22
Problem 21-4
Basic EPS e = P 5,000,000 – 500,000

500,000
= P 9.00
Test for Dilution

= 500,000 = 210,000
200,000 100,000
= 2.5 = 2.1

Basic EPS 4,500,ooo 500,000 9.00
Diluted EPS 4,710,000 600,000 7.85
Diluted EPS 5,210,000 800,000 6.51

Problem 21-5
Basic EPS e = P 650,000 – 100,000

110,000
= P 5.00
Test for Dilution

1 Share options 60,000
[20 -15] 20 x 0.25
15,000 3 Interest (net of tax) c
Ordinary Shares if converted
2 Preference Dividends s
Ordinary Shares if converted = 140,000
30,000
= 100,000 = 4.67
40,000
= 2.5

Basic EPS 550,000 110,000 5.00
Share Options 15,000
Diluted EPS 550,000 125,000 4.40
Diluted EPS 650,000 165,000 3.95
Convertible Bonds 140,000 30,000
Diluted EPS 790,000 195,000 4.05
Convertible bonds are anti dilutive since there is an increase in EPS if included
Problem 21-6
Shares
1,000,000 12/12 1,000,000 Basic EPS e = P 5,900,000
50,000 9/12 37,500 1.062,500
50,000 6/12 25,000 = P 5.55
Shares
1,000,000 12/12 1,000,000 Dilutive EPS e = P 5,900,000
50,000 12/12 37,500 2,000,000
50,000 12/12 25,000 = P 2.95
900,000 900,000

Problem 21-7
1. D
2. B
3. C
Basic EPS e = P 8,000,000 – 800,000

200,000
= P 36.00
Convertible Preference 40,000

Convertible Bonds 25,000
Potential OS 65,000

Interest 350,000 [ 5,000,000 x 10% x 70% ]
Dilutive EPS P 31.51
Problem 21-8
1. A
2. B
Basic EPS e = P 11,000,000

1,500,000
= P 7.33
Dilutive EPS = P 11,000,000 0

1,500,000 + 100,000
= P 6.88
Problem 21-9
1. C
2. C
Shares
100,000 100,000 Basic EPS e= P 5,400,000 – 350,000
(24,000) 10/12 (20,000) 82,000
8,000 3/12 2,000 = P 61,59
Outstanding 82,000
Test of Dilution
= Interest (net of tax) c
Share Options 50,000 Ordinary Shares if converted
[ 50-40 ] / 50 x 0.20 = 210,000 / 25,000
Incremental 10,000 = P 8.4


Basic EPS 5,050,000 82,000 61.59
Share Options 10,000
Diluted EPS 5,050,000 92,000 54.89
Convertible Bonds 210,000 25,000
Diluted EPS 5,260,000 117,000 44.96
Problem 21-10
1. A
2. B
2019
Shares
Jan. 1 200,000 x 1.1 x 2 12/12 440,000
Apr. 1 125,000 x 1.1 x 2 9/12 206,250
Oct. 1 7,000 x 2 3/12 3,500
2020
Jan. 1 200,000 x 1.1 x 2 12/12 440,000
Jan. 1 125,000 x 1.1 x 2 12/12 275,000
Jan. 1 7,000 x 2 12/12 14,000
Oct 1 170,000 3/12 42,500
Problem 21-11
Shares
100,000 x 1,25 125,000
(3,000) x 1.25 10/12 (3,125)
3,000 x 1.25 4/12 1,250 Basic EPS e= P 2,600,000
66,000 x 1.25 1/12 6,875 130,000
Outstanding 130,000 = P 20
Shares
100,000 x 1,25 125,000
(3,000) x 1.25 (3,750)
3,000 x 1.25 3,750 Basic EPS e= P 4,000,000
66,000 x 1.25 82,500 207,500
Outstanding 207,500 = P 19.28

A. Basic EPS P 150 1. A
Potential Diluter (8) 2. D
Dilutive EPS P 142 Maximum Amount is the Basic EPS
Basic EPS P 120
Potential Diluters (3)
Dilutive EPS P 117

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FRANZ KYLLE POCSON UPV BSA

Current Assets Notes

Total assets P 10,000,000

LIABILITIES AND SHARESHOLDER’S EQUITY

Total Liabilities and Shareholder’s Equity P 10,000,000

114 INTERMEDIATE ACCOUNTING VOL 3 VALIX

2 Patent 200,000 5 Retained Earnings 4,000,000

Current Assets Notes

Total assets P 8,700,000

LIABILITIES AND SHARESHOLDER’S EQUITY

114 INTERMEDIATE ACCOUNTING VOL 3 VALIX

Total Liabilities and Shareholder’s Equity P 8,700,000

7 Share Capital, beg 5,000,000

6 Accounts Payable 500,000 9 Retained Earnings, beg 1,500,000

Total assets P 9,850,000

LIABILITIES AND SHAREHOLDER’S EQUITY

114 INTERMEDIATE ACCOUNTING VOL 3 VALIX

2 Building 5,000,000 5 Accounts Payable 400,000

Total assets P 7,700,000

114 INTERMEDIATE ACCOUNTING VOL 3 VALIX

LIABILITIES AND SHAREHOLDER’S EQUITY

LIABILITIES AND SHAREHOLDER’S EQUITY

114 INTERMEDIATE ACCOUNTING VOL 3 VALIX

Currently Portion of Bonds Payable 500,000

114 INTERMEDIATE ACCOUNTING VOL 3 VALIX

Non Current Liabilities

114 INTERMEDIATE ACCOUNTING VOL 3 VALIX

Retained Earnings, beg 5,000,000

Retained Earnings, unappropriated P 900,000

114 INTERMEDIATE ACCOUNTING VOL 3 VALIX

Retained Earnings, beg 3,500,000

114 INTERMEDIATE ACCOUNTING VOL 3 VALIX

Problem 3-1 Problem 3-2 Problem 3-3

Problem 4-1 Problem 4-2 Problem 3-3

Loss on Lawsuit 500,000

114 INTERMEDIATE ACCOUNTING VOL 3 VALIX

Problem 5-6 Problem 5-7

Raw Materials, beg. P 200,000

114 INTERMEDIATE ACCOUNTING VOL 3 VALIX

2 Interest Income P 10,000 Finished Goods, beg. P360,000

114 INTERMEDIATE ACCOUNTING VOL 3 VALIX

4 Raw Materials, beg. P 200,000 7 Direct Labor P950,000

Notes 4 Sales Salaries P 600,000

114 INTERMEDIATE ACCOUNTING VOL 3 VALIX

Less: Expenses 1,200,000

Cost of Goods Sold (SQUEEZE)

Raw Materials Purchased 2,000,000 {8} 1,500,000 / 75%

Current Assets Notes

Non Current Assets

114 INTERMEDIATE ACCOUNTING VOL 3 VALIX

Liabilities and Shareholders’ Equity

114 INTERMEDIATE ACCOUNTING VOL 3 VALIX

Notes 3 Sales Salaries P 500,000

2 Inventory, beg P1,500,000 4 Office Salaries P 400,000

Other Comprehensive Income

114 INTERMEDIATE ACCOUNTING VOL 3 VALIX

Investment Income 350,000

Other Comprehensive Income

Other Comprehensive Income

114 INTERMEDIATE ACCOUNTING VOL 3 VALIX

Raw Materials, beg. P 200,000

114 INTERMEDIATE ACCOUNTING VOL 3 VALIX

Income from continuing operations P 4,000,000