FinAcc vol. 3 Chap3 Problems

Garnet company Garnet Company Balance sheet December 31, 2015

Assets notes Current Asets: Cash and cash equivalents Trading securities Trade receivables Inventory Noncurrent Assets: Property, plant and equipment Investment property Investment in Associates Intangibles Total Assets

₱

86,250.00 61,000.00 107,000.00 322,000.00

6 ₱

1,433,000.00 1,000,000.00 250,000.00 141,000.00

5

7

Liabilities and sharedholder's equity Current liabilities: Trade and other payables Noncurrent liabilities: Bond's payable Deferred tax liability Shareholder's equity: Share capital Additional Paid-in Capital Retained earnings Total liabilities and shareholder's equity

8 ₱

457,250.00

9

731,000.00 50,000.00

10 ₱ 11

1,534,000.00 321,000.00 307,000.00

Notes to the financial statements

₱

₱

note 5- trade receivables accounts receivable less: allowance for bad debts net accounts receivable 576,250.00

2,824,000.00 3,400,250.00

note 6- Property plant and equipment Land building, net of accumulated depreciation of 530000 equipment, net of accumulated depreciation of 351000 total PPE note 3 - intangibles patents, net of accumulated amortization of 22000 trademarks, net of accumulated amortization of 17000 total

₱

1,238,250.00

₱

2,162,000.00 3,400,250.00

note 8 - trade and other payables accounts payable income tax payable salaries payable SSS premium payable withholding taxes payable total note 9 - bonds payable less: discount on bonds payable total note 10 - share capital preference share capital ordinary share capital stock dividends distributable total note 11- Additional Paid-In Capital share premium - preferred share premium - ordinary note 12- retained earnings appropriated unappropriated

ments

115,000 8,000 107,000

250,000 910,000 273,000 1,433,000

98,000 43,000 141,000

236,000 150,000 20,000 21,250 30,000 457,250 800,000 69,000 731,000

210,000 1,300,000 24,000 1,534,000

81,000 240,000 321,000 45000 262000 307000

LAND LAND HELD FOR FUTURE USE BUILDING MACHINERY EQUIPMENT LESS MACHINERY RECLASSIFIED TO HELD FOR SALE NET

Accumulated Cost Depreciation 1,320,000 195,000 1,824,000 622,000 639,000 186,000 530,000 212,000 4,508,000 1,020,000 320,000 80,000

net 1,320,000 195,000 1,202,000 453,000 318,000 3,488,000 240,000 3,248,000

Ruby company Ruby Company Statement of Financial Position December 31, 2015 Assets notes Current assets: Cash and cash equivalents Trading securities Trade receivables Inventories Prepaid expenses Non current assets held for sale Non current assets: Property, plant and equipment Other financial assets Patents Total assets

₱

116,000.00 160,000.00 308,000.00 985,000.00 31,000.00 210,000.00

₱

3,248,000.00 339,000.00 182,000.00

[1] [2] [3] [6] [4] [5]

Liabilities and shareholder's equity Current liabilities: Trade payables Income tax payable Unearned revenues Liability for product warranty Non current liabilities: Bonds payable Shareholder's equity: Share capital Additional Paid in Capital Retained earnings Total libilities and shareholder's equity

₱

[7] [8] [9]

580,000.00 247,000.00 62,000.00 73,000.00 848,000.00

₱

2,028,000.00 537,000.00 1,204,000.00

Notes to the financial statements note 1 - trading securities trading securities costing 150000, are reported at market values of 160000

₱

₱

₱

₱

1,810,000.00

3,769,000.00 5,579,000.00

note 2 - trading receivables accounts receivable less: allowance for bad debts total note 3 - inventories raw materials work in process finished goods total note 4 - PPE land land held for use buildings, net of accumulated depreciatio of 622000 machinery, net of accumulated depreciation of 106000 equpment, net of accumulated depreciation of 212000 total

1,810,000.00

3,769,000.00 5,579,000.00

note 5 - other financial assets debt investments at amortized cost cash surrender value of life insurance total note 6 - non current assets held for sale machinery net of selling expense of 40000 note 7 - bonds payable bonds payable add: premium on bonds payable total note 8 - share capitl preference share capital ordinary share capital total

note 9 - reserves share premium - preferred share premium - ordinary total Retained Earnings Loss from measurement of machinery held for sale Updated Retained Earnings

nts

323,000 15,000 308,000

222,000 347,000 416,000 985,000

1,320,000 195,000 1,202,000 453,000 318,000 3,488,000

250,000 89,000 339,000

210,000

800,000 48,000 848,000

400,000 1,628,000 2,028,000

234,000 303,000 537,000 1,234,000 30000 1,204,000

Diamond company Diamond Company Statement of Financial Position December 31, 2015

Assets notes Current assets: Cash Trading securities Trade receivables Inventory Prepaid expenses Non current assets: Property, plant and equipment Available for held securities Patents Total assets

₱

230,000.00 320,000.00 510,000.00 600,000.00 200,000.00

₱

3,450,000.00 1,030,000.00 470,000.00

[1] [2] [3]

Total liabilities and shareholder's capital Current liabilities: Trade and other payables Unearned rent Non current liabilities: Bonds payable Shareholder's equity: Ordinary share capital Share premium Retained earnings Total Less: Treasury shares Total liabilities and shareholder's equity

[4]

₱

[5]

1,390,000.00 90,000.00 1,000,000.00

₱ ₱

1,200,000.00 1,040,000.00 2,420,000.00 4,660,000.00 330,000.00

Notes to the financial statements note 1 - trade receivbles accounts receivable less: allowance for bad debts ₱

1,860,000.00

₱

4,950,000.00 6,810,000.00

note 2 - prepaid expenses office supplies prepaid insurance total note 3 - PPE land buildings, net of accumulated depreciation of 920000 total

₱

2,480,000.00

note 4 - trade and other payables accounts payable salaries payable taxes payable total note 5 - bonds payable bonds payable less discount on bonds payable total

₱

4,330,000.00 6,810,000.00

ments 590,000 80,000 510,000

80,000 120,000 200,000

810,000 2,640,000 3,450,000

990,000 150,000 250,000 1,390,000

1,100,000 100,000 1,000,000

Emerald company

Emerald Company Statement of Financial Position December 31, 2015

Assets notes Current assets: Cash Current marketable securities Trade receivables Inventories Prepaid insurance Non current assets: Property, plant and equipment Other financial assets Intangibles Total assets

₱

380,000.00 460,000.00 2,780,000.00 3,050,000.00 290,000.00

₱

7,100,000.00 1,600,000.00 960,000.00

[1]

[2] [3] [4]

Total liabilities and shareholder's capital Current liabilities: Trade and other payables Income taxes payable Non current liabilities: Bonds payable Mortgage payable Shareholder's equity: Share capital Paid-in capital in excess of par Retained earnings Total Less: Treasury stock Total liabilities and shareholder's equity

[5]

₱

2,750,000.00 720,000.00

[6]

₱

4,430,000.00 1,600,000.00

[7]

₱

1,700,000.00 1,820,000.00 3,780,000.00 7,300,000.00 180,000.00

₱

Notes to the financial statements

₱

₱

note 1 - trade receivables accounts receivable Less: allowance for doubtful accounts total 6,960,000.00

9,660,000.00 16,620,000.00

tal

₱

note 3 - other financial assets investment in day corporation bonds sinking fund for bond retirement total 3,470,000.00

6,030,000.00

₱

note 2- PPE land buildings, net of accumulated depreciation of 2100000 equipment, net of accumulated depreciation of 1300000 total

7,120,000.00 16,620,000.00

note 4 - intangibles patents, net of accumuated amortization of 230000 trademarks, net of accumulated amortization of 150000 total note 5 - trade and other payables accounts payable wages payable current portion of mortgage payable total note 6 - bonds payable bonds payable add: premium on onds payable total note 7 - share capital preference share ordinary share total

s 2,850,000 70,000 2,780,000

1,200,000 4,240,000 1,660,000 7,100,000

900,000 700,000 1,600,000

590,000 370,000 960,000

1,940,000 410,000 400,000 2,750,000

4,000,000 430,000 4,430,000

600,000 1,100,000 1,700,000

Sapphire company Current Assets: Cash(1240000-500000) Trading securities(900000+500000) Accrued interest revenue Trade accounts receivable(1220000+50000-60000) Notes receivable Creditor's account with debit balance Merchandise inventory Total Current Assets

Current Liabilities: Trade accounts payable(750000+150000+100000) Customer deposit Notes payable(1500000-300000) Current portion of bonds payable Income taxes payable Employees income tax withheld Accrued interest(2500000x10%x6/12) Total Current Liabilities

₱

₱

₱

₱

740,000.00 1,400,000.00 7,000.00 1,210,000.00 920,000.00 100,000.00 1,360,000.00 5,737,000.00

1,000,000.00 50,000.00 1,200,000.00 500,000.00 280,000.00 40,000.00 125,000.00 3,195,000.00

Turquoise company Current Liabilities: Accounts payable Mortgage notes payable Bank notes payable Interest payable Vat payable (2688000/1.12) x.12 Withholding tax payable Provision Income taxes payable(186500+35000-105000) Total current liabilities

₱

₱

270,000.00 1,300,000.00 100,000.00 7,500.00 288,000.00 120,000.00 650,000.00 116,500.00 2,852,000.00

Opal company Current assets: Unadjusted total current assets: Add: Bank overdraft Less: Cash set aside for plant site Expense unreplenished Goods held on consignment Cash surrender value of life insurance Total current assets

₱

₱

4,580,000.00 20,000.00 1,500,000.00 15,000.00 40,000.00 50,000.00 2,995,000.00

Aquamarine company

Reported totals a. Retirement fund cash b. Less: Treasury shares c. Cash fund for taxes d. Advances and commission payable e. Provision for damages Corect totals

Current asset ₱ 3,500,000.00

140,000.00 210,000.00 ₱

3,850,000.00

Non current assets Current liabilities Non current liabilities ₱ 8,000,000.00 ₱ 2,400,000.00 ₱ 2,700,000.00 380,000.00 380,000.00 500,000.00 ### ### 168,000.00 ₱ 7,880,000.00 ₱ 2,918,000.00 ₱ 3,080,000.00

Peridot company

Reportd amounts' a. Post dated check recorded b. Increase in market value c. Goods shipped FOB destination d. Goods out on consignment Correct balances

Cash ₱

₱

Trading securities 536,000.00 ₱ 500,000.00 80,000.00 50,000.00 616,000.00 ₱

550,000.00

Accounts receivable Inventory ₱ 3,285,000.00 ₱ 3,500,000.00

180,000.00 ₱

3,465,000.00 ₱

120,000.00 135,000.00 3,755,000.00

Zircon company Current assets: Accounts receivable Less: allowance for bad debts Citibank - current account Inventories Office supplies Total current assets Current liabilities: Accounts payable Income tax payable Advances from customers Accrues interest Provision for warranties Total current liabilities

₱

₱

148,000.00 12,000.00 ₱

124,000.00 16,000.00 150,000.00 17,000.00 60,000.00

₱

136,000.00 98,000.00 217,500.00 3,500.00 455,000.00

₱

367,000.00 88,000.00

Disclosures 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

C A C A B C A A A B