6661

Problem 1
1.) Present Value of N/R (6M x 0.75) 4,500,000.00
CA of Equipment 4,800,000.00
Gain/(Loss) (300,000.00) D.

2.) Present Value of N/R (6M x 0.75) 4,500,000.00

Interest Rate 10%
Interest Income for 2019 450,000.00 C.

3.) Present Value of Note, January 1, 2019 4,500,000.00

Interest for 2019 450,000.00
CA of note, December 31, 2019 4,950,000.00
Interest Rate 10%
Interest Income for 2020 495,000.00 B.

Problem 2

1.) Annual Payment 500,000.00

Ordinary Annuity of 1 for 10 period 5.65 *if the first payment was made on January 1, 201
CA/present value of N/R at January 1 2,825,000.00 B.

2.) CA/present value of N/R at January 1, 2,825,000.00 *Since there is no fv mentioned/ the present valu
CA of the equipment on January 1, 201 2,000,000.00
Gain/(Loss) 825,000.00 C.

3.) CA on Jan 1, 2019 2,825,000.00

Interest Rate 12%
Interest Income for 2019 339,000.00 B.

4.) CA on Jan 1, 2019 2,825,000.00

Interest Income 339,000.00
CA 12/31/2019 before payment 3,164,000.00
Payment (500,000.00)
CA, 12/31/2019 2,664,000.00 A.

Problem 4
(1+i)^-n
1.) 500,000.00 0.89 445,000.00
1,000,000.00 0.80 800,000.00
2,000,000.00 0.71 1,420,000.00
4,000,000.00 0.64 2,560,000.00
5,225,000.00 A
2.) Face Value 7,500,000.00
Accrued Interest 900,000.00
CA before Impairment 8,400,000.00
CA after impairment 5,225,000.00
3,175,000.00 B.

3.) CA, 12/31/2021 5,225,000.00

12%
Interest Income for 2022 627,000.00 A.

4.) CA, 12/31/2021 5,225,000.00

Interest Income for 2022 627,000.00
Projected Collection (500,000.00)
CA, 12/31/20222 5,352,000.00 A.
made on January 1, 2019, use the ordinary annuity for nine periods

tioned/ the present value of N/R will be treated as the purchase price
 6662

Problem 1
Based on Physical Count 6,000,000.00
Less: Goods sold held for customer's convenience (200,000.00)
Purchased goods 300,000.00
6,100,000.00

Problem 2
Cost based on invoices 5,000,000.00
Import Duties 400,000.00
Freight and Insurance 600,000.00
Other handling costs 100,000.00
Commission paid to agents 200,000.00
total 6,300,000.00

Problem 3
Goods out on consignment 1,000,000.00
Goods purchased in transit, (FOB Destination)
Goods held on consignment by the entity
Total amount of adjustment

Problem 4 Invoice Price 3,600,000.00

Cash discount (3,600,000*5%) (180,000.00)
Freight paid by seller (should be paid by buyer) 100,000.00
3,520,000.00

FOB Shipping Point Freight Collect

FOB Destination Freight Prepaid

Problem 5
1.) Gross Method
Purchase 1 3,000,000.00
Discount (60,000.00)
Purchase 2 2,000,000.00
TGAFS 4,940,000.00

2.) Net Method

Total Purchase 5,000,000.00
Discount (100,000.00)
4,900,000.00

Problem 6 Unadjusted Accounts Payable 4,000,000.00

Purchases Lost in transit 100,000.00
Goods Returned (150,000.00)
 Debit Balance of AP 500,000.00
ADJUSTED AP 4,450,000.00

Problem 7
Unadjusted Sales 5,000,000.00
200,000.00
(300,000.00)
4,900,000.00

Problem 8
Gallons delivered as of December 31, 2019 50,000.00
cost per gallon 50.00
Total sales in 2019 2,500,000.00
B.

A.

(400,000.00)
(1,200,000.00)
(900,000.00)
(2,500,000.00) D.

D.

C.

B.
D.

B.

B.
 6663
Problem 1 14,000.00
1.) Units Unit Cost Total Cost
Beg Bal 10,000.00 150.00 1,500,000.00
4,000.00 180.00 720,000.00
2,220,000.00

2.) Units Unit Cost Total Cost

1 10,000.00 150.00 1,500,000.00
5 10,000.00 180.00 1,800,000.00
15
16
25 4,000.00 200.00 800,000.00
26 (2,000.00) 200.00 (400,000.00)
22,000.00 3,700,000.00

168.18
Ending Inventory 1,345,454.55

3.) Units Unit Cost Total Cost Average Unit Cost

1 10,000.00 150.00 1,500,000.00
5 10,000.00 180.00 1,800,000.00 16500%
15 (15,000.00) 165.00 (2,475,000.00)
16 1,000.00 165.00 165,000.00
25 4,000.00 200.00 800,000.00 #DIV/0!
26 (2,000.00) 200.00 (400,000.00) #DIV/0!
8,000.00 1,390,000.00 4.) A.

Problem 2
Direct beg inventory 2,900,000.00
purchases during 2020 9,000,000.00
TGAFS 11,900,000.00
Ending Inventory (3,700,000.00)
COGS 8,200,000.00 B.

Beg loss on inventory writedown 100,000.00

beg inventory 3,000,000.00

purchases during 2020 9,000,000.00
TGAFS 12,000,000.00
Ending Inventory 4,000,000.00
COGS 8,000,000.00
Loss on inventory writedo 200,000.00
Adjusted COGS 8,200,000.00 B.
Inventory writedown 500,000.00
Inventory writedown 200,000.00 Allowance for inventory
300,000.00 B.

beg inventory 3,500,000.00 Gain on reversal of inve

purchases during 2020 20,000,000.00
TGAFS 23,500,000.00
Ending Inventory 4,800,000.00
COGS 18,700,000.00 C.

beg inventory 4,000,000.00

purchases during 2020 20,000,000.00
TGAFS 24,000,000.00
Ending Inventory 5,000,000.00
COGS 19,000,000.00
Gain on inventory writedown (300,000.00)
Adjusted COGS 18,700,000.00 B.

1.) LCNRV
A 2,500,000.00
B 1,500,000.00
C 1,600,000.00
D 1,800,000.00
7,400,000.00 D.

2.) COST NRV

A 2,500,000.00 2,800,000.00
B 1,700,000.00 1,500,000.00
C 2,000,000.00 1,600,000.00
D 1,900,000.00 1,800,000.00
8,100,000.00 7,700,000.00 D.

3.) COST NRV

A 2,500,000.00 2,800,000.00
B 1,700,000.00 1,500,000.00
4,200,000.00 4,300,000.00 4,200,000.00
C 2,000,000.00 1,600,000.00
D 1,900,000.00 1,800,000.00
3,900,000.00 3,400,000.00 3,400,000.00
7,600,000.00 D.

4.1) 55.00 Price committed

50.00 31-Dec-19
5.00
100,000.00 Total No. OF barrels
A. 500,000.00 Total Loss
 Loss on purchase commitment 500,000.00
Allowance on purchase commitment 500,000.00

Price @ December 31, 20 50.00

Price @March 31, 2020 53.00
difference (3.00)

Allowance on purchase commitment 300,000.00

B. Gain on purchase commitment 300,000.00

3.) 5,300,000.00 B.

Problem 6 Total cost to be divided to all inventory item 12,000,000.00

Additional cost 3,000,000.00
Total cost to be divided to all inventory item 15,000,000.00

Total lots Price Total Price

Class A lots 100.00 240,000.00 24,000,000.00 40%
Class B lots 100.00 160,000.00 16,000,000.00 27%
Class C lots 200.00 100,000.00 20,000,000.00 33%
60,000,000.00
Average Unit Cost

990,000.00
1,790,000.00
1,390,000.00 B.
 500,000.00
Allowance for inventory writedown 500,000.00

300,000.00
Gain on reversal of inventory writedown 300,000.00
Allocation
6,000,000.00 A.
4,000,000.00
5,000,000.00
15,000,000.00
GROSS PROFIT, RETAIL METHOD AND BIOLOGICAL ASSETS

Problem 1
Beg. Bal 5,000,000.00
Purchases 36,000,000.00
Freight In 2,000,000.00
Purchase returns and allowances (3,500,000.00)
Purchase Discounts (1,500,000.00)
TGAFS 38,000,000.00

Gross Sales 43,000,000.00

Sales Returns (3,000,000.00)
Net Sales 40,000,000.00

COGS 32,000,000.00

Ending Inventory 6,000,000.00

Goods out consignment (800,000.00)
Ending per physical inventory (3,000,000.00)
2,200,000.00

PROBLEM 2

Net Sales 9,000,000.00 1.00

COGS 6,750,000.00 0.75
Gross Income 2,250,000.00 0.25

Beg Inventory 600,000.00

Net Purchases 4,300,000.00
TGAFS 4,900,000.00

COGS
NET SALES 5,600,000.00 1.00
COGS( NET SALESx75%) 4,200,000.00

ENDING INVENTORY 700,000.00

Partially destroyed (25,000.00)
Undamaged goods (225,000.00)
Inventory fire loss 450,000.00 C.

Problem 3
Cost Retail
Beginning Inventory 1,400,000.00 2,000,000.00
net Purchases 5,850,000.00 8,000,000.00
Net Markup 1,500,000.00
Net Markdown (500,000.00)
TGAFS 7,250,000.00 11,000,000.00

Net Sales 7,500,000.00

A
ENDING INVENTORY @RETA 2,275,000.00 3,500,000.00

5,850,000.00 9,000,000.00
FIFO COST RATIO 65%

Problem 4
Cost Retail
Beginning Inventory 650,000.00 1,200,000.00
Purchases 9,000,000.00 14,700,000.00
Freight In 200,000.00
Purchase Returns (300,000.00) (500,000.00)
Purchases Allowances (150,000.00)
Departmental Transfer In 200,000.00 300,000.00
Net Markups 300,000.00
Net Markdowns (1,000,000.00)
TGAFS 9,600,000.00 15,000,000.00

Cost Ratio - Conservative 9,600,000.00 16,000,000.00

Cost Ratio - Average 9,600,000.00 15,000,000.00

Net Sales
Sales 9,500,000.00
Employee Discounts 500,000.00
Estimated Normal Shoplifitng Losses 600,000.00
Normal Shrinkage 400,000.00
11,000,000.00

Ending Inventory @Retail 4,000,000.00

1.) 2,400,000.00 A
2.) 2,560,000.00 A

Problem 5
Cost Retail
Beginning Inventory 1,650,000.00 2,000,000.00
Net Purchases 4,200,000.00 6,400,000.00
Net Markup 800,000.00
Net Markdown (200,000.00)
Net Sales

FIFO Cost Ratio 4,200,000.00 7,000,000.00

Average Cost Ratio 5,850,000.00 9,000,000.00
Ending Inventory 1,950,000.00
Ending Inventory @Retail 3,000,000.00

TGAFS 5,850,000.00 9,000,000.00

Ending Inventory @Retail 3,000,000.00
Net Sales 6,000,000.00

COGS 3,900,000.00

BIOLOGICAL ASSETS
1.)
To record the purchase of milking cows at the beg of the year
DR CR
Biological Assets 5,000,000.00
Cash 5,000,000.00

Biological Assets 2,000,000.00

Gain on Change in Fair Value 2,000,000.00

Loss on Change in Fair Value 250,000.00

Biological Assets 250,000.00

Biological Assets 400,000.00

Gain on Change in Fair Value 400,000.00

Milk Inventory 850,000.00

Gain on Agricultural Produce 850,000.00

1.)
Increase in fair value 2,000,000.00
Decrease in fair value (250,000.00)
New born calf 400,000.00
Total gain on biological ass 2,150,000.00 B.

2.) Gain on Agriculture on Agricultural Produce 850,000.00

3.)
Cost 5,000,000.00
Gain 2,000,000.00
Loss (250,000.00)
New born 400,000.00
CA @ year end 7,150,000.00 C.
Problem 7
Biological Asset Free Standing Trees 5,000,000.00
PPE Land under trees 600,000.00
PPE Roads in forests 300,000.00
PPE Animals related to recreational activit 1,000,000.00
PPE Bearer Plants 1,500,000.00
Biological Asset Bearer Animals 2,000,000.00
Biological Asset Agricultural Produce growing on bear 800,000.00
Inventory Agricultural produce harvested 1,200,000.00

1.) Biological Assets 7,800,000.00 A.

2.) PPE 3,400,000.00 B.
 1.25

C
 60%

64%

1.) D.

60%
65%
2.) C.

3.) A

C.