1) Angel Company

Statement of Comprehensive Income

For the Quarter Ended September 30, 2016

Sales (9,000,000 x 30%) ₱2,700,000

Cost of Goods Sold 1,674,000
Gross Profit (2,700,000 x 38%) 1,026,000
Operating Expense* (270,000)
Gain on Sale of Equipment 280,000
Profit from Continuing Operations 1,036,000
Income Tax (310,800)
Net Profit ₱725,200

*Operating Expense
Variable 30% x 600,000 180,000

Fixed (960,000 - 600,000)/4 90,000

Total Operating Expense 270,000

2) Victor, Inc.
Tax Expense ₱240,000 x 3/12 = ₱60,000
Repair Expense ₱600,000
Total Expenses ₱660,000

3) Reese, Inc.
₱320,000 x 1/4 = ₱80,000

4) Old Company
January February March
Beginning Inventory ₱200,000 ₱58,000 ₱30,000
Purchases 50,000 380,000 704,000
Cost of Goods Sold* -192,000 -408,000 -604,000
Ending Inventory ₱58,000 ₱30,000 ₱130,000

COGS *
240,000 / 1.25 = 192,000
510,000 / 1.25 = 408,000
755,000 / 1.25 = 604,000
5) New Company
Depreciation Expense ₱600,000 x 6/12= ₱300,000
Employees' Bonuses ₱1,200,000 x 6/12= ₱600,000
Total Expenses ₱900,000

6) Square Company
₱120,000 gain is recognized in the quarter incurred.

7) X Corporation
Advertising Costs ₱2,000,000
Staff Bonuses ₱7,000,000

8) ABC, Corporation
₱25,000,000 x 10% = ₱2,500,000
₱20,000,000 x 5%= ₱1,000,000

Commision expense
for the second quarter ₱3,500,000
1) Blue Company
Sales to unaffiliated customers ₱1,000,000
Intersegment sales of products
similar to those sold to
unaffiliated customers ₱300,000
Total ₱1,300,000
x 10%
Reportable Segment ₱130,000 C

2) Green Company
Sales (Segment 2) ₱500,000
Less: Traceable Cost (Segment 2) ₱225,000
₱275,000
₱240,000 x (₱500,000/₱1,500,000) = ₱80,000
Operating Segment for Segment 2 ₱195,000 D

3) Purple Company
Sales (Segment 4) ₱2,000,000
Less: Traceable Cost ₱900,000
₱1,100,000
₱3,000,000 x (₱2,000,000/₱10,000,000) = ₱600,000
Operating Segment for Segment 2 ₱500,000 A

4) Yellow Comppany
₱40,000,000 - ₱30,000,000 = ₱10,000,000
₱38,000,000 - ₱32,000,000 = ₱6,000,000
₱51,000,000 - ₱42,000,000 = ₱9,000,000
₱25,000,000
x 10%
Reportable Segment ₱2,500,000 A