Angie Company

1 Basic Earnings per Share

Net Income 1,730,000.00
Outstanding Ordinary Shares 50,000.00
Basic Earnings per Share 34.60

2 Diluted Earnings per Share

Net Income 1,730,000.00
Interest 1,000,000 * 10% 100,000.00
Tax 100,000 * 30% 30,000.00
Earnings 1,800,000.00
Outstanding Ordinary Shares 50,000 + 10,000 60,000.00
Diluted Earnings per Share 30.00

Dolores Company
Dividends Paid 2021
Annual Preference Dividends 6,000,000 * 6% 360,000.00
Preferred Dividends Carried Over 360,000 - 300,000 60,000.00
3 Total Preferred Dividends Paid
4 Total Ordinary Dividends Paid - remaining

Paopao Company
5 Net Cash Used in Investing Activities
Proceeds from Sale of Equipment 250,000-120,000+50,000 180,000.00
Purchase of Equipment - 200,000.00
Net Cash Used in Investing Activities - 20,000.00

6 Net Cash Provided by Operating Activities

Net Income 3,000,000.00
Depreciation 520,000.00
Gain on Sale of Equipment - 50,000.00
Net Cash Provided by Operating Activities 3,470,000.00

CC Company
7 2023 2024
Ending Inventory
2023 under 100,000.00 - 100,000.00
2024 over - 40,000.00
Depreciation under - 40,000.00 - 60,000.00
Unrecorded Salaries
2023 - - 80,000.00 80,000.00
2024 - - 120,000.00
Net Effect on Net Income - 20,000.00 - 240,000.00

DD Company
8 Increase in Assets 200,000.00
Increase in Liabilities - 160,000.00
Net Increase in Equity 40,000.00
Share Capital exceeded Dividends - 240,000.00
Net Loss for the current year - 200,000.00
 HH Company
9 Cash Basis Income 6,000,000.00
Accounts Receivable 2024 4,000,000.00
Accounts Receivable 2023 - 2,000,000.00
Accounts Payable 2024 - 1,500,000.00
Accounts Payable 2023 3,000,000.00
Accrual Basis Income 9,500,000.00

Albay Company
10 Market Price - 12/31/23 110.00
Underlying Price - 100.00
Derivative Asset 10.00
Multiply by: Notional Amount 50,000.00
Derivative Asset - 12/31/23 500,000.00

Tim Company
11 Depreciation 500,000 * 6/12 250,000.00
Bonuses 1,200,000 * 6/12 600,000.00
Total Expenses 850,000.00

Oca Company
12 Jan-01
FIFO 7,200,000.00
Weighted Average 7,700,000.00
Accounting Change Effect 500,000.00

Lord Company
13 Income 2,500,000 + 500,000 3,000,000.00
Impairment Loss 4,000,000 - 3,500,000 - 500,000.00
Income before tax 2,500,000.00
Income Tax 30% - 750,000.00
Income from Discontinued Segment 1,750,000.00

Red Wine Company

14 Cost 5,000,000.00
Less: Accumulated Depreciation 3,000,000.00
Carrying Amount 2,000,000.00
Recoverable Amount 1,200,000.00

Selling Price of the Equipment 1,500,000 - 50,000 1,450,000.00

Less: Carrying Amount 1,200,000.00
Gain on Reversal of Impairment 250,000.00

C Company
15 Outstanding Shares 2023 7,500,000 / P5 par 1,500,000.00
Less: Treasury Shares 600,000.00
Outstanding Shares - 12/31/23 900,000.00

16 Outstanding Shares 2022 4,500,000 / P5 par 900,000.00

 Less: Treasury Shares 400,000.00
Outstanding Shares - 12/31/22 500,000.00

17 Outstanding Shares 2023 7,500,000 / P5 par 1,500,000.00

Less: Outstanding Shares 2022 4,500,000 / P5 par 900,000.00
Total Shares Issued 2023 600,000.00

18 Share Premium Increase 52,000,000 - 40,000,000 12,000,000.00

Share Capital Increase 7,500,000 - 4,500,000 3,000,000.00
Total Proceeds 15,000,000.00
Divided by: Total Shares Issued 2023 600,000.00
Average Price per Share 25.00

D Company
19 Preference Shares 10,000.00
Annual Dividend 10,000 * P100 par * 6% 60,000.00
Multiply by: 3 years 3.00
Retained Earnings Appropriated 180,000.00

Tunnel Company
20 Sales 100% 12,000,000.00
Cost of Goods Sold -50% - 6,000,000.00
Gross Profit 50% 6,000,000.00
Operating Expenses -20% - 2,400,000.00
Operating Income 30% 3,600,000.00
21 Interest Expense -5% - 600,000.00
Taxable Income 25% 3,000,000.00
Tax - 90,000.00
Net Income 2,910,000.00

22 Cost of Goods Sold 6,000,000.00

Multiply by: Percentage of Purchases 120%
Purchases 7,200,000.00

Rose Company
Direct Materials 50% 3,000,000.00
23 Direct Labor 30% 1,800,000.00
Factory Overhead 20% 1,200,000.00
Total Manufacturing Cost 6,000,000.00
Less: Work-in-Process, end. 10% of TMC - 600,000.00
Cost of Goods Manufactured 100% 5,400,000.00
Less: Finished Goods, end. 20% of COGM 1,080,000.00
Cost of Goods Sold 80% 4,320,000.00

France Company
24 Cash Basis Income 6,000,000.00
Accounts Receivable 2024 4,000,000.00
Accounts Receivable 2023 - 2,000,000.00
Accounts Payable 2024 - 1,500,000.00
Accounts Payable 2023 3,000,000.00
 Accrual Basis Income 9,500,000.00

Yellow Company
25 Total Assets 7,500,000.00
Total Liabilities - 3,200,000.00 4,300,000.00
Issuance of Shares - 800,000.00
Dividends Issuance 250,000.00
Total Assets, beg. 5,000,000.00
Total Liabilities, beg. - 2,000,000.00
Net Income

White Company
26 Retained Earnings, end. 4,500,000.00
Stock Dividend 750,000 + 500,000 1,250,000.00
Cash Dividend 1,000,000.00
Retained Earnings, beg. - 3,500,000.00
Net Income 3,250,000.00

Blue Company
27 Accounts Payable 750,000.00
Payments to Trade Creditors 2,000,000.00
Purchases 2,750,000.00

Red Company
28 Retained Earnings, beg. 1,300,000.00
Net Loss - 100,000.00
Dividends Declared - 700,000.00
Retained Earnings, end. 500,000.00

Green Company
29 Derivative Asset - 12/31/22 580,000.00

30 Loss on Call Option - 2023 20,000.00

31 Derivative Liability - 07/01/23 not recognized -

32 Raw Materials - units 200,000.00

Market Price 21.00
Cost of Purchases 4,200,000.00

Orange Company
33-34 2023 Inventory - over -35,000.00
2023 Depreciation - over 25,000.00
2023 Prepaid Insurance - under 5,000.00
Net Income 2023 overstated -5,000.00

35 2023 Inventory - over 35,000.00

2024 Inventory - under 10,000.00
2024 Depreciation - under -8,000.00
2023 Prepaid Insurance - under -5,000.00
 2024 Unearned Rent Income - over 4,000.00
2024 Accrued Saöaroes - under -20,000.00
Net Income 2024 understated 16,000.00

36 Net Income 2023 overstated -5,000.00

Net Income 2024 understated 16,000.00
Retained Earnings - 12/31/24 understated 11,000.00

37 2023 Inventory - under -10,000.00

2023 Unearned Rent Income - over 4,000.00
Working Capital - 12/31/24 overstated -6,000.00

Multiple Choices
38 a. Precede coincide with, or follow the period in which revenue and expenses are recognized.

39 b. The cash basis is less useful in predicting the timing and amount of future cash flows of an ent

40 d. The matching principle is ignored.

900,000.00

420,000.00
480,000.00
3,750,000.00

3,000,000.00
750,000.00
expenses are recognized.

of future cash flows of an entity.