STATEMENT OF FINACIAL POSITION
Exercise 2 – Answer Key
1. C
Cash and Cash Equivalents P20,000
Trade and Other Receivables 30,000
Land Held for Sale 40,000
Merchandise Inventories 45,000
Accounts Payable (debit balance) 40,000
Total Current Assets P175,000
2. A
Cash and Cash Equivalents (P150,000 + P10,000) P160,000
Accounts Receivables (P200,000 + P20,000 – P15,000) 205,000
Land Held for Sale 250,000
Merchandise Inventories 50,000
Current Assets P665,000
3. A
Bank overdraft P10,000
Credit balance on AR 20,000
Accounts payable (P400,000 + P10,000) 410,000
VAT payable 200,000
Total current liabilities P640,000
4. B
Current Assets Non-current Assets
Cash P175,000
Prepaid rent 136,000
Inventory 820,000
Sinking fund asset P525,000
Investment to profit or loss 153,000
Investment in subsidiary 1,020,000
Accounts receivable 366,000
Property, plant and equipment 1,200,000
Patents, net 150,000
Accumulated depreciation (400,000)
Land held for future business site 900,000
Total P1,650,000 P3,395,000
5. B
Current Assets Non-current Assets
Cash P175,000
Prepaid rent 136,000
Inventory 820,000
Sinking fund asset P525,000
Investment to profit or loss 153,000
Investment in subsidiary 1,020,000
Accounts receivable 366,000
Property, plant and equipment 1,200,000
Patents, net 150,000
Accumulated depreciation (400,000)
Land held for future business site 900,000
Total P1,650,000 P3,395,000
6. B
Current Liabilities Non-current
Liabilities
Wages payable P250,000
Bonds payable P600,000
Dividends payable 140,000
Premium on bonds payable 48,000
Taxes payable 228,000
Accounts payable 248,000
Total P866,000 P648,000
7. B
Current Liabilities Non-current
Liabilities
Wages payable P250,000
Bonds payable P600,000
Dividends payable 140,000
Premium on bonds payable 48,000
Taxes payable 228,000
Accounts payable 248,000
Total P866,000 P648,000
8. A
Cash and Cash Equivalents (P300,000 + P10,000) P310,000
Trade Accounts Receivable (due in 14 months) 500,000
Non-trade Accounts Receivable (due in 12 months) 300,000
Investment through profit or loss 250,000
Land held for sale 50,000
Total Current Assets P1,410,000
9. B
Bank overdraft P10,000
Trade accounts payable 850,000
Mortgage payable 30,000
Estimated premiums liability 150,000
Notes payable 1,500,000
Interest payable on redeemable preference shares 50,000
Total current liabilities P2,590,000
10. D
Share Capital P3,500,000
Share Premium 1,500,000
Retained Earnings 800,000
Stock Dividends Payable 500,000
Total Shareholder’s Equity P6,300,000
11. C
Cash and cash equivalents P600,000
Trade receivable (15 months) (P350,000 + P10,000) 360,000
Note receivable 150,000
Equipment held for sale (with mortgage payable in 2025 – P60,000) 200,000
Inventories 200,000
Debit balance in AP 5,000
Total current assets P1,515,000
12. A
Mortgage payable P60,000
Credit balance in AR 10,000
Trade payable (P300,000 + P5,000) 305,000
Premiums payable 25,000
VAT payable 40,000
Bonds payable – 2019 200,000
Premium in bonds payable 15,000
Total current liabilities P655,000