6.
) Beginning Inventory 80,000
Purchases 320,000
Freight In 16,000
Purchase return -8,000
Purchase Discounts -11,200 316,800
Goods available for sale 396,000
Less: Ending Inventory -128,000
Cost of Good Sold 268,800
ROMMEL SP CORP.
17.) Purchases 180,000
Frieght In 10,000
Purchase Return -5000
Purchase Discounts -9000
Net Purchases 176,000
18.) Beginning Inventory 65,000
Ending Inventory 90,000
Increase in inventory -25,000
19.) Net Purchases 176,000
Less: Increase in inventory -25,000
Cost of Sales 151,000
20.)
Freight Out 30,000
Sales Commission 45,000
Advertising Expense 25,000
Salaries Expense 180,000
Rent Expense 22,500
Depreciation Expense 37,500
Selling Expenses/Distribution Costs 340,000
21.)
Salaries Expense 60,000 [(240,000x1)/4]
Rent Expense 7,500 [(30,000x1)/4]
Utilities Expense 25,000
Depreciation Expense 12,500 [(50000 x1)/4]
Supplies Expense 15,000
Transportation Expense 15,000
Insurance Expense 10,000
Taxes and Licenses 60,000
Miscellaneous Expense 3,000
Administrative Expenses 208,000
LAKE COMPANY
33.)
Royal revenue- (Jan-jun) 7,000
Royalty revenue-(july-dec) 2,000
Total revenue 9,000
34.)
Annual rental
amortization of nonrefundable deposit
Total rental revenue
DECORTICATE PEEL, INC.
35.) Fair value 5,000,000
Cost to sell 200,000
4,800,000
36.) B, because manufacturing facility is impaired.
Fair value 5,000,000
Cost to sell 200,000
4,800,000
37.) B, exemptions to the 1 year requirement are met.
STRIDENT HARSH-SOUNDING Co.
41.) Held for sale asset 1,320,000
Accumulated Dep. 2,400,000
Impairment of loss -3,720,000
Building 4,000,000
OBSTINACY STUBBORNNESS Co.
42.) Carrying Amou 1,600,000
FV less cost of 1,240,000
Gain 360,000
INSOUCIANT CO.
43.) 59,600,000 52,000,000
64,000,000 59,600,000
4,400,000 Impairment loss 7,600,000 Additional impairment loss
44.) 8,800,000
45.) 21,859,794
46.) 15,340,206
Fair value less costs to sell 52,000,000
Carrying amount as remeasured immediately before classification as held fo 59,600,000
Additional impairment loss on initial classification under PFRS 5 7,600,000
Additional to goodwill 6,000,000
Impairment loss to be allocated to the other assets 1,600,000
The excess is allocated to the other assets pro rata based on their carrying amount as follows:
Assets Carrying amount Fraction Allocation of impairment loss
Inventory N/A N/A N/A
Invsmt in FVOCI N/A N/A N/A
IP-cost 22,800,000 22.8/38.8 -940,206
PPE-Cost model 16,000,000 16m/38.8 -659,794
38,800,000 -1,600,000
The carrying amount after allocation of impairment loss is:
Inventory 8,800,000
Investment in FVOCI 6,000,000
Investment property (at cost model) (22.8M-940,206) 21,859,794
PPE (at cost model) (16M-659,794) 15,340,206
Goodwill -
Total 52,000,000
INGENIOUS NATURAL Co.
47.) A. Carrying amount adjusted for depreciation not recognized (1.6K×¾) = 1,200,000
B. Recoverable amount= 1.240M the higher of FVLCS and VIN
• Measurement = 1,200,000 is the lower of a and b above
INIMICAL UNFRIENDLY Co.
48.) 20X2: (1,600,000 - 2,600,000) × 70% = (700,000)
20X1: (-2,800,000 × 70%) = (1,960,000)
ABROGATE ABOLISH Co.
49.) Operating profit - Jan. 1 to April 30, 20×1 400,000
Operating loss - May 1 to Dec. 31, 20×1 -200,000
Impairment loss (32M-26M) -6,000,000
Severance pay -220,000
Employee relocation costs -100,000
Total -6,120,000
Multiply by: 1 minus tax rate 70%
Loss for the period from discontinued operations -4,284,009
[(240,000x3)/4]
[(30,000x3)/4]
[(50000 x3)/4]
40,000x1)/4]
rment loss
ount as follows:
61.)
Current assets
Cash 10,000.00
Trade accounts receivable 50,000.00
held for rading securities 80,000.00
financial asstes designated at FVPL 30,000.00
Prepaid assets 10,000.00
Total Current assets 180,000.00
62.)
Current Liabilities
Bank overdraft 10,000.00
trate accounts payable 50,000.00
notes payable 8,000.00
interest payable 30,000.00
bonds payable 70,000.00
discount on bond payable (30,000.00)
dividends payable 10,000.00
income tax payable 44,000.00
total current liabilities 192,000.00
63.)
Share capital
share premium
retiained earnings, appropriated
retained earnings, unappropriated
revaluation surplus
remeasurement of the net difened benefit liability(asset)-gain
cumulative net unrealized gain on FV changes of investment in FVOCI
effective portio of losses on hedgong instruments in a cash flow hedge
cumulative transaction loss on foreign operation
treasury shares at cost
total shareholders' equity
65.)
retained earnings
- Jan. 1, 20x1
Dividends 60,000.00 180,000.00 Profit for the yr.
Dec. 31, 20x1 120,000.00
66.)
Mortgage assumed on land and building 100,000.00
principal payment on the mortgage (70,000.00)
bank loans 200,000.00
dividends payable 60,000.00
liabilities, 12/31, 20x1 290,000.00
Share issuances 2,000,000.00
retaind earnings- Dec. 31, 20x1 120,000.00
Equity, Dec. 31, 20x1 2,120,000.00
Total assets, Dec. 31, 20x1 2,410,000.00
67.)
the adjusted balance of cash is computed as follows:
cash 200,000.00
cash sales in 20x2 recorded as 20x1 sale (20,000.00)
collection of account in 20x2 recorded as 20x1 collection (38,000.00)
loan payment in 20x2 recorded as 20x1 transaction 50,000.00
interset payment in 20x2 recorded as 20x1 transaction 5,000.00
Adjusted cash balance - Dec. 31, 20x1 197,000.00
accounts receivable 400,000.00
collection of accounts in 20x2 recorded as 20x1 collection 40,000.00
adjusted accounts receivable balabnce - dec. 31, 20x1 440,000.00
inventory 1,000,000.00
cost of cash sale in 20x2 record as 20x1 sale 14,000.00
adjusted inventory bal. - Dec. 31, 20x1 1,014,000.00
adjusted current assets, Dec. 31, 20x1 1,651,000.00
Accounts payable 300,000.00
Note payable 100,000.00
Loan payable 50,000.00
Adjusted current liabilities, Dec. 31, 20x1 450,000.00
working capital, dec. 31, 20x1 1,201,000.00
69.)
advertising 25,000.00
freight out 30,000.00
rent expense 40,000.00
sales commission expense 10,000.00
sales salaries 112,500.00
total selling expense 217,500.00
70.)
rent expense 40000
sales salaries 37500
insurance expe 75000
interest expens 5000
total administr 157500
200,000.00
40,000.00
36,000.00
84,000.00
60,000.00
30,000.00
46,000.00
(20,000.00)
(10,000.00)
(26,000.00)
440,000.00