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6803 - Statement of Financial Position
6803 - Statement of Financial Position
The accounts receivable included sale price of P3,000,000 of unsold goods out on consignment at
125% of cost and excluded from ending inventory.
What amount should be reported as total current assets on December 31, 2021?
a. 20,400,000
b. 20,250,000
c. 20,900,000
d. 21,500,000
a. 6,000,000
b. 6,400,000
c. 4,500,000
d. 6,500,000
Cash 5,000,000
Accounts receivable 2,000,000
Inventory, including goods received on consignment P200,000 800,000
Equity investment at FVPL 3,000,000
Equity investment at FVOCI 1,500,000
Prepaid expenses, including a deposit of P50,000 made on inventory to be
delivered in 18 months 150,000
Total current assets 12,450,000
The cash account included bond sinking fund P1,000,000 and cash held to pay value added taxes
P500,000.
What total amount of current assets should be reported December 31, 2021?
a. 11,200,000
b. 11,250,000
c. 9,700,000
d. 9,750,000
6803
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4. An entity provided the following trial balance on December 31, 2021:
Checks amounting to P600,000 were written to vendors and recorded on December 31, 2021
resulting in cash overdraft of P200,000. The checks were mailed on January 15, 2022. Land held
for resale was sold for cash on January 31, 2022.
a. 4,500,000
b. 4,100,000
c. 4,300,000
d. 2,500,000
a. 1,300,000
b. 1,500,000
c. 900,000
d. 700,000
10% note payable issued on October 1, 2020, maturing October 1, 2022 2,000,000
12% note payable issued on March 1, 2020 maturing on March 1, 2022 4,000,000
Under the loan agreement, on December 31, 2021 the entity has an existing right to defer settlement
of the 10% note payable for at least twelve months after December 31, 2021. On March 1, 2022,
the entire P4,000,000 balance of the 12% note payable was refinanced through issuance a long-term
obligation payable lump sum. The 2021 financial statements were issued on March 31, 2022. What
amount of the notes payable should be classified as current on December 31, 2021?
a. 6,000,000
b. 4,000,000
c. 2,000,000
d. 0
6. The end of reporting period of an entity is December 31, 2021 and the financial statements for
2021 are authorized for issue on March 31, 2022.
• The entity had equity investments held for trading. On December 31, 2021, these investments
were recorded at the fair value of P5,000,000. During the period up to February 15, 2022, there
was a steady decline in the fair value of the shares in the portfolio and on February 15, 2022,
the fair value had fallen to P2,000,000.
• The entity had reported contingent liability on December 31, 2021 related to court case in
which the entity was the defendant. The case was not heard until the first week of February
2022. On March 1, 2022, the judge handed down a decision against the entity and determined
that the entity was liable to pay damages and costs totaling P3,000,000.
• On December 31, 2021 the entity had accounts receivable from a large customer in the amount
of P4,000,000. On March 15, 2022, the entity was advised in writing by the liquidator of the
said customer that the customer was insolvent and that only 10% of the accounts receivable will
paid on December 31, 2022.
What total amount should reported as “adjusting events” on December 31, 2021?
a. 6,600,000
b. 7,000,000
c. 9,600,000
d. 0
- END-
6803