The general ledger trial balance of ABC Company includes the following statement of

financial position accounts at December 31, 2010: Compute the current assets to be
reported as of 12/31/2010.

Solution:

Inventory 110,000
Trade Receivables 120,000
Prepaid Insurance 8,000
Investment for Trading 20,000
Cash and cash Equivalents 30,000
Total 288,000

ABC Company as of December 31, 2006 provided the following balances (see pic
below): Current liabilities is?

Solution:

Bank overdraft P5,000

Customer credit balance 4,000
Accounts payable (45K+6K) 51,000
 Notes payable (current) 50,000
Income tax payable 40,000
Total current liabilities P150,000

ABC Company had the following information in relation to its inventory accounts in
2006 (see pic below ): Total manufacturing cost is

Solution:

Purchases 150,000
Freight In 4,000
Increase in Raw Materials (14,000)
Direct Materials 140,000
Direct Labor 60,000
Indirect Labor 30,000
Taxes and dep. Factory building 10,000
Utilities 15,000
Total Manufacturing 255,000

ABC Company was incorporated on January 1, 2015, with proceeds from the issuance
of P15,000,000 in ordinary share and borrowed funds of P5,000,000. During the first
year of operations, revenue from sales and consulting amounted to P20,000,000, and
operating costs and expenses totaled P12,000,000. On December 15, ABC declared a
P2,000,000 cash dividend payable to stockholders on January 15, 2016. No additional
activities affected owners’ equity in 2015. ABC’s liabilities increased to P7,000,000 by
December 31, 2015. On December 31, 2015 balance sheet, total assets should be
reported at?
Solution:

Liabilities (first operation) P7,000,000 Revenue P20,000,000

Equity: Share capital 15,000,000 Opex and costs 12,000,000
Retained earnings 6,000,000 Net income P8,000,000
Total Assets P28,000,000 Cash dividend payable (2,000,000)
Retained earnings P6,000,000

The following expenses were recognized by ABC Company, a retailer, during 2018:
What should ABC report as general and administrative expenses for 2018

Solution:

Telephone Expense 95,000

Legal Fees 74,000
Officer’s Salaries 115,000
Total 284,000

ABC Co.s adjusted trial balance at December 31, 2014, includes the following account
balances: What amount should ABC report as total stockholders’ equity in its
December 31, 2014 balance sheet?

Solution:

Ordinary share 600,000

Share premium 800,000
Treasury share @ cost (50,000)
Net realized loss on available for sale securities (20,000)
Retained earnings: appropriated 150,000
Retained Earnings: unappropriated 200,000
Total 1,680,000
ABC Company as of December 31, 2006 provided the following balances (see pic
below): Current assets is?

Solution:

Cash (50K+5K) P55,000

Trading securities(FV) 19,000
Receivables (30K+4K) 34,000
Suppliers’ debit balance 6,000
Inventory (60K-5K) 55,000
Prepayments (10K-2K) 8,000
Total current assets P177,000

ABC Company had the following information in relation to its inventory accounts in
2006 (see pic below ): Cost of goods sold for the year is

Solution:

Purchases 150,000
Freight In 4,000
Increase in Raw Materials (14,000)
Direct Materials 140,000
Direct Labor 60,000
Indirect Labor 30,000
Taxes and dep. Factory building 10,000
Utilities 15,000
Total Manufacturing 255,000
Increase in WIP (24,000)
Goods Available for sale 231,000
Decrease in Finished Goods 33,500
COGS 264,500

ABC Company reported the following items on its December 31, 2017, trial balance:
Compute the amount of total liabilities.

Solution:

AP 108,900
Unearned rent revenue 28,800
Warranty 25,800
Bonds payable 555,000
Less: discount 22,500
Total 696,000

The accounts and balances shown below were gathered from ABC Company's trial
balance on December 31, 2007. All adjusting entries have been made. The amount
that should be reported as current assets is?
Solution:

Cash 17,700
Prepaid Rent 13,600
Inventory 81,800
Short-term Investments 15,200
AR 36,600
Total 164,900

ABC Company prepared a draft of its 2017 balance sheet. The draft statement
reported current liabilities totaling P200,000. However, none of the following items
were included in this preliminary total at December 31, 2017: Compute the correct
amount of current liabilities as of 12/31/2017.

Solution:

Current liabilities 200,000

AP 30,000
Bonds payable- due 50,000
Less: Discount (6,000)
Dividends payable- 1 year 16,000
Total 290,000

The December 31, 2017, balance sheet of ABC Company, reported total assets of
P1,050,000 and total liabilities of P680,000. The following information relates to the
year 2018: Compute the stockholder's equity as of 12/31/2018.
Solution:

Assets 1,050,000
Less: Liabilities (680,000)
Additional shares 125,000
Less: paid dividends (80,000)
Net income 110,000
Total 525,000

ABC Company’s December 31, 2015 balance sheet reported the following current
assets: At December 31, 2015, the total current assets should be?

Solution:

Cash 3,000,000
AR 3,700,000
Inventory 3,200,000
Prepaid Expenses 700,000
Total 10,600,000

The following trial balance of ABC Company on December 31, 2015 has been
adjusted except for income tax expense. The total current liabilities on December 31,
2015 should be
Solution:

AP and accrued liabilities 7,000,000

Income tax payable 4,800,000
Less: tax charged to income tax expense (1,500,000)
Total 10,300,000

ABC Company reported the following changes during the current year (see pic below).
Net income for the year is?

Solution:

Increase in cash P 400,000

Increase in accounts receivable 300,000
Increase in allowance for bad debts (50,000)
Decrease in inventory (150,000)
Decrease in prepaid rent (50,000)
Increase in plant and equipment 1,000,000
Increase in accumulated depreciation (100,000)
Increase in accounts payable (80,000)
Decrease in bonds payable 100,000
Decrease in discount on bonds payable (10,000)
Net Increase in capital P 1,360,000
Decrease in capital due to treasury stock acquisition 30,000
Decrease in capital due to dividend declaration 50,000
Increase in capital due to issuance of stocks (120K+60K) (180,000)
Total increase in capital (thus Net income for the year) P 1,260,000

The accounts shown below appear in the December 31, 2018 trial balance of ABC
Corporation. How much is the total shareholder's equity of the Corporation? Assuming
that all subscription receivables are due in the year 2019.

Solution:

Preferred stock 10,000,000

Less: Unissued preferred stock (3,600,000)
Common Stock 4,000,000
Unissued common stock (2,000,000)
Subscription receivable- preferred 380,000
Subscription receivable- common 360,000
Less: Subscribed- common (440,000)
Less: Treasury stock (1,360,000)
APIC 1,700,000
Retained Earnings 2,000,000
Total 11,040,000