PWU

Term 2 SY 2022-2023

BSAC 373
AUDITING & ASSURANCE: CONCEPTS AND APPLICATIONS 2
CLASS SEATWORK (Audit of Liabilities)
January 26, 2023

ANSWER SHEET

STUDENT NAME: KIM, Stephanie Jean R.

PROBLEM 1
SOLUTION:
Total Liabilities =
CL: 47,200 + 20k + 25k + 960 + 6.4k + 38k + 2.6k + 24k + 5k +
365,910 5,750 = 215,910

NCL: 150k

Total Liabilities: 215,910 + 150k = 365,910

PROBLEM 2

SOLUTION:
Total Current
Liabilities = CL: 47,200 + 20k + 25k + 960 + 6.4k + 38k + 2.6k + 24k + 5k +
5,750 = 215,910

215,910

PROBLEM 3

SOLUTION:
1. Interest
Payable Interest expense = P20,000 x 9% x 5/12 = P750

P750

SOLUTION:
2. Cash Proceeds
P20,000 - P750 = P19,250
P18,301.89 P19,250 / (1 + 10% x 5/12) = P18,301.89
 PROBLEM 4

SOLUTION:
1) Adjusted balance
Of Bonds Payable at P500,000
at 12/31/22

P500,000

SOLUTION:
2) Adjusted balance
Of Bonds Premium
as at 12/31/22 P22,975

P22,975

SOLUTION:
3) Adjusted balance
Of Bonds Interest
Expense for year P15,000 + P15,000 + P2,297.50 = P32,297.50
2022

P32,297.50