1/1/2019

STATEMENT OF FINANCIAL POSITION 12/31/2019

The general ledger trial balance of Central Property plant and equipment 1,600,000
Corporation includes the following statement 1,700,000
of financial position accounts at December Current liabilities ?
31, 2019: 130,000
Inventory (including inventory Noncurrent liabilities 580,000
expected in the ordinary course ?
of operations to be sold beyond
12 months amounting to P70,000) P All assets and liabilities of the entity are
1,000,000 reported at year-end. Working capital of
Trade receivables P92,000 remained unchanged from 2018 to
1,200,000 2019. Net income in 2019 was P64,000. No
Prepaid insurance dividends were declared during 2019 and
80,000 there were no other changes in owners’
Listed investment held for trading equity. What amount should be reported as
Purposes at fair value noncurrent liabilities on December 31, 2019
200,000
Cash and cash equivalents a. 340,000 c. 580,000
300,000 b. 432,000 d. 616,000
Deferred tax asset
150,000 4. An analysis of Burma Company’s liabilities
Bank overdraft disclosed the following
250,000 Accounts payable, after deducting
1. The amount that should be reported as debit balances in suppliers’
total current asset on December 31, 2019 Accounts amounting to P100,000
a. 2,780,000 c. 3,580,000 4,000,000
b. 2,530,000 d. 2,080,000 Accrued expenses
1,500,000
2. The December 31, 2019 statement of Credit balances of customer’s accounts
financial position of East Company 500,000
contained the following current assets: Stock dividend payable
Cash 3,200,000 1,000,000
Accounts receivable 2,000,000 Claims for increase in wages and allowance
Inventory 2,800,000 by employees of the entity, covered in
Deferred charges 200,000 a pending lawsuit 400,000
The accounts receivable consisted of the Estimated expenses in redeeming
following items: prize coupons
Customers. Accounts 600,000
1,420,000 what amount should be reported as total
Employees’ account –current current liabilities?
240,000 a. 6,700,000 c. 7,100,000
Advances to subsidiary b. 6,600,000 d. 7,700,000
260,000
Allowance for uncollectible accounts 5. Kabugao Company provided the following on
(120,000) December 31, 2019:
Claim against shipper for goods los in transit Cash in bank, net of bank overdraft of
200,000 P500,000
5,000,000
2,000,000 Petty cash (unreplenished petty cash
Expenses, P10,000)
what amount should East Company report 50,000
as total current assets? Notes receivable
a. 7,740,000 c. 7,940,000 4,000,000
b. 7,780,000 d. 8,200,000 Accounts receivable, net of accounts
With credit balances of P1,500,000
3. Cara Company’s accounting records 6,000,000
provided the following information:
 Inventory 9. Included in Mazda Company’s liability
3,500,000 balances on December 31, 2018 were the
Bond sinking fund following:
3,000,000 10% note payable issued on Oct 1, 2017,
Tota current assets maturing October 1, 2019
21,550,000 2,000,000
Accounts payable, net of accounts 12% note payable issued on March 1, 2017
With debit balances of P1,000,000 Maturing March 1, 2019
7,000,000 4,000,000
Notes payable Mazda’s 2018 financial statements were
4,000,000 issued on March 31, 2019. Under the loan
Bond payable due on June 30, 2020 agreement for the 10% note payable, Mazda
3,000,000 has the discretion to refinance the obligation
Accrued expenses for at least twelve months after December
2,000,000 31, 2018. On March 1, 2019, the entire
P4,000,000 balance of the 12% note payable
16,000,000 was refinanced through issuance of a long-
What amount should be reported as total term obligation payable lump sum
current assets on December 31, 2019? What amount of the notes payable should be
a. 19,040,000 c. 20,050,000 classified as current on December 31, 2018?
b. 20,040,000 d. 24,040,000 a. 6,000,000 c. 2,000,000
6. Using the same information, what amount b. 4,000,000 d. 0
should be reported as total current Liabilities
on December 31, 2019? 10.Mirr Company was incorporated on
a. 19,000,000 c. 15,500,000 January 1, 2019, with proceeds from the
b. 16,000,000 d. 15,000,000 issuance of P7,500,000 in share capital
and borrowed funds of P1,100,000.
7. The following accounts appear in the During the first year year, revenue from
unadjusted trial balance of Grand Company sales and consulting amounted to
on December 31, 2019: P8,200,000, and operating costs and
Cash 800,000 expenses totaled P6,400,000. On
Accounts receivable December 15,2019, Mirr declared a
4,000,000 P300,000 dividend, payable to
Inventory 1,000,000 shareholders on January 15, 2020.
Accounts payable 600,000 No additional activities affected
Notes payable 400,000 shareholders equity in 2019. Mirr’s
liabilities increased to P2,000,000 by
December 31, 2019. On December 31,
 The cash account includes collection in 2019, what amount should be reported as
January 2020 of P400,000 account from total assets?
customer who was given a cash discount a. 11,000,000 c. 10,100,000
of P20,000. b. 11,300,000 d. 12,100,000
 The cash account also includes a January
2020 cash sale of P100,000. Gross profit
on the sale was 40%.
 From the amount collected, the entity
paid a bank loan of P200,000 with
interest of P40,000 accruing January
2020
What total amount should be reported as 11.The following trial balance of Mint Company
current assets? on December 31, 2019 has been adjusted
a. 5,960,000 c. 5,780,000 except for income tax expense:
b. 6,020,000 d. 5,800,000 Cash 600,000
8. Using the same information, what total Accounts receivable 3,500,000
amount should be reported as current Cost in excess of billings on
liabilities? Long term contracts 1,600,000
a. 1,200,000 c. 1,240,000 Billings in excess of cost on
b. 1,000,000 d. 1,160,000 long-term Contracts
700,000
Prepaid taxes 450,000
 Property, plant and Equipment
net 1,510,000
Note payable-Noncurrent
1,620,000
Share capital
750,000
Share premium
2,030,000
Retained earnings unappropriated
900,000
Retained earnings restricted for
Note payable
160,000
Earnings from long-term contracts
6,680,000
Costs and expenses
5,180,000
12,840,000
12,840,000
 Mint uses the percentage of completion
method to account for long term
construction contracts for financial
statement and income tax purposes. All
receivable on these contracts are
considered to be collectible within 12
months.
 During 2019, estimated tax payments of
P450,000 were charged to prepaid taxes.
Mint has not recorded income tax
expense. There were no temporary or
permanent differences. The tax rate is
30%.
Total retained earnings?
a. 1,950,000 c. 2,400,000
b. 2,110,000 d. 2,560,000
12.Total noncurrent liabilities?
a. 1,620,000 c. 2,320,000
b. 1,780,000 d. 2,480,000
13.Total current assets?
a. 5,000,000 c. 5,700,000
b. 4,100,000 d. 6,225,000

14.