1. The inventory per audit at year-end is?

₱ 266,000
SOLUTION
1 ₱ 20,000
2 50000
3 70000
4 5000
5 5000
6 10000
7 90000
8 6000
9 -
10 -
11 8000
12 18000
₱ 266,000
2. Adjusted inventory at December 31, 2019 is?
₱ 1,218,400
SOLUTION
Unadjusted inventory ₱ 1,400,000
Sales Invoice #300 50,000
Sales Invoice #305 72,000
Sales Invoice #307 59,600
Adjusted Inventory ₱ 1,218,400

3. Adjusted sales at December 31, 2019 is?

₱ 20,036,000
SOLUTION
Unadjusted Sales ₱ 20,000,000
Sales Invoice #301 50000
Sales Invoice #304 56000
Sales Invoice #307 74500
Sales Invoice #310 67500
Adjusted Sales ₱ 20,036,000

4. How much sales for the month of January 2020 were erroneously recorded in December 2019?
₱ 106,000
SOLUTION
Sales Invoice #300 ₱ 50,000
Sales Invoice #304 56000
Total Sales ₱ 106,000
5. What amount of unrealized gain on these securities should reported in the 2017 income statement?
₱ 36,000
Carrying Value Market Value
Komawo Co. ₱ 1,710,000 ₱ 1,759,500
Kansahamida Inc 243,000 229,500
₱ 1,953,000 ₱ 1,989,000
Unrealized Gain ₱ 36,000

6. What is the gain on the sale of Komawo Co. ordinary shares on March 1, 2017?
₱ 130,500
SOLUTION
Net Proceeds
Ordinary Share 93
Shares 15,000 1,395,000
Brokerage Commission 13,500 ₱ 1,381,500
Carrying Value 1,251,000
Gain on Sale ₱ 130,500

7. What amount should be reported as trading securities in Oppa's statement of financial position on December 31, 2017?
₱ 1,989,000
SOLUTION
Komawo Co. ₱ 1,759,500
Kansahamida Inc 229,500
₱ 1,989,000
 1740000
19500 225000
4500

n December 31, 2017?

8. How much should be recognized in 2018 profit or loss as a result of the fair value changes?
₱ 600,000
SOLUTION
Fair Value Change 2017 ₱ 200,000
Fair Value Change 2018 400,000
₱ 600,000
9. The adjusted cost of motor vehicle is?
₱ 7,940,000
SOLUTION
Beginning balance ₱ 8,500,000
New Carag-carag 654,000
Insurance Expense 14,000 640,000
Truck Cost 1,200,000
Adjusted Cost of Motor ₱ 7,940,000

10. Insurance expense in 2018 is?

₱ 7,000
SOLUTION
Car Insurance ₱ 14,000
Car Insurance Premium 12 1,167
6
Insurance Expense 7000

11. Gain on disposal of asset on July 15 is?

₱ 300,000
12. What is the total cost of land on December 31, 2019?
₱ 7,800,000
SOLUTION
Land ₱ 4,000,000
Land - Acquired 2,000,000
Land - Acquired by
2∕10
9,000,000 1,800,000
Cost of Land ₱ 7,800,000

13. What is the total cost of land improvements on December 31, 2019?
₱ 2,500,000
SOLUTION
Land Improvements ₱ 1,300,000
Expenditures 1,200,000
Cost of Land ₱ 2,500,000

14. What is the total cost of buildings on December 31, 2019?

₱ 27,200,000
SOLUTION
Building ₱ 20,000,000
Building - Acquired
8∕10
9,000,000 7,200,000
Cost of Buildings ₱ 27,200,000

15. What is total cost of machinery and equipment on December 31, 2019?
₱ 11,500,000
SOLUTION
Machinery and Equipment ₱ 8,000,000
Machinery and Equipment Purchased 4,000,000
Freight and Unloading 100,000
Installation 300,000
Cost of Machinery scrapped 200,000
Cost of Machinery sold 700,000
Cost of Machinery and Equipment ₱ 11,500,000