1. Compute total current assets given: 12.
Related-party loans: ₱1,000,000 to employees (non-executive), ₱600,000 to
Cash ₱300,000 president, ₱400,000 to parent company. Compute total amount to disclose as
6-month time deposit ₱200,000 related-party receivables.
Accounts receivable ₱400,000 (₱50,000 doubtful) 13. On Dec 31, accounts receivable ₱2,000,000. On Jan 10 (before
Inventory ₱600,000 authorization), a major customer declared bankruptcy; ₱250,000 is
Equipment ₱1,500,000 uncollectible. Compute the adjustment needed.
Prepaid insurance ₱80,000 14. On Jan 5 (after year-end), company issued new shares ₱2,000,000. State if
2. Cash in bank ₱500,000 includes: postdated checks ₱100,000; compensating this is adjusting or non-adjusting and compute the disclosure amount.
balance ₱150,000 restricted for 3 years. Compute cash and cash equivalents 15. A debt investment classified as FVOCI had a carrying amount of ₱800,000 at
to present under current assets. the start of the year. By December 31, its fair value increased to ₱920,000.
3. Notes receivable ₱600,000, due in 18 months. Entity’s operating cycle = 15 Early in the next year, it was sold for ₱950,000. Compute the gain to
months. Classify how much should be current and non-current. recognize in OCI, the gain to recycle to profit or loss on sale, and the total
4. Compute current liabilities given: effect on P/L.
Accounts payable ₱300,000 16. An entity earned profit before OCI of ₱1,200,000. During the year, it
Bonds payable ₱1,200,000 due in 9 months; management has signed recognized an actuarial loss on defined benefit plans amounting to ₱300,000.
refinancing agreement for 5 years after year-end Compute the profit for the year, the amount recognized in OCI, and total
Salaries payable ₱150,000 comprehensive income. State clearly whether the actuarial loss is recycled to
Unearned revenue ₱50,000 P/L or closed directly to retained earnings.
5. Beginning inventory = ₱200,000; Ending inventory = ₱500,000; Prepaid 17. A foreign subsidiary reported accumulated translation gain of ₱250,000.
expenses ₱100,000; Accounts receivable ₱300,000 (includes advances to During the year, 60% of the subsidiary was disposed. Compute the amount to
employees ₱40,000). Compute current assets for SFP. be reclassified to profit or loss and the balance remaining in OCI.
6. Cash ₱800,000 includes sinking fund cash ₱200,000 for bond retirement in 3 18. Equity securities designated at FVOCI were purchased at ₱600,000. At year-
years. Compute cash to include in current assets. end, fair value was ₱720,000. In the following year, they were sold for
7. Trade receivables ₱700,000 (₱200,000 collectible after 14 months, ₱500,000 ₱750,000. Compute the OCI to recognize in the current year, the amount
collectible within 6 months). Operating cycle = 18 months. Compute recycled to P/L upon disposal, and the balance transferred to retained
receivables to classify as current assets. earnings.
8. The company advanced ₱400,000 to its subsidiary, sold goods ₱1,200,000 to 19. A cash flow hedge resulted in a total gain of ₱120,000. Of this, ₱80,000 is
a director, and lent ₱600,000 to its president. Compute total related-party effective and ₱40,000 is ineffective. Compute the portion recognized in OCI,
receivables to disclose. the portion recognized in P/L, and the total effect on comprehensive income.
9. After year-end, court ruled against the company for a pending lawsuit 20. A company reported the following: profit before OCI ₱1,000,000; FVOCI
(₱2,000,000). The case was ongoing at reporting date. Compute the liability debt gain ₱150,000; actuarial loss ₱50,000; foreign currency translation gain
to recognize. ₱70,000 (the foreign operation was fully disposed in the same year).
10. After year-end, the company’s warehouse burned, inventory ₱3,000,000 Compute profit for the year, the amount of OCI recycled to profit or loss, the
destroyed. This was not related to conditions existing at reporting date. amount of OCI closed directly to retained earnings, and the total
Compute the amount to disclose in Notes. comprehensive income.
11. Dividends of ₱500,000 declared after year-end. Compute the amount to
disclose in Notes.