1 AR 1,200

2 Less: Int. Income (10M x 10%) 1,000

Remeasurement Gain on Plan Assets 200
Liability Remeasurement gain - Dec. 400
Net Remeasurement Loss on Increase - 650
Total remeasurement gain - OCI - 50

Effect of Asset Ceiling 12/31 1,200

Less: Effect of Asset Ceiling 1/1 500
Increase 700
Less: Interest on Beginning Effect (10% x 500k) 50
Net Remeasurement Loss on Increase of AC 650

General Journal Accoun

Ben. Exp
1/1 Balances
Current Service Cost 2,500
Past Service Cost 500
Interest Exp. (5M x 10%) 800
Actual Return - 1,200
Asset Remeasurement Gain 200
Liability gain
Contribution to the plan
Benefits paid
SP/PVODBOS/SG - 100
Increase in effect of Asset Ceiling
Interest on Beginning Effect (above) 50
Journal Entry DR. (CR.) 2,750
12/31 Balances

3 Note 1
4 Principal 4,000,000
PV factor 0.7084
PV 2,833,600

Total Benefit 120,000

Less: Termination benefits 50,000
STB
5 Doubtful accounts expense recorded 60,000
6 Less: WO 10,000
ADA 12/31 50,000

Cost of sales 1,500,000

Cost plus markup 1.40
Sales 2,100,000
Percentage of credit dales 80%
Sale on account 1,680,000
Collections on AR - 1,200,000
WO - 10,000
AR balance 470,000

Correct DAE 84,000

Less: WO 10,000
Correct ADA 74,000

7 Revaluation Surplus 3,600,000.00

Divided by: 80%
Difference of CA and Tax base 4,500,000.00
Divided by remaining life 8
Reversal of taxable temporary difference 562,500.00

Carrying amount 1,200,000

Less: Cost 1,500,000
Reversal of deductible temporary diff (UG) - 300,000

Taxable income 5,000,000

Tax rate 20%
Current tax expense 1,000,000
Income tax benefit - 112,500
Deferred tax expense 60,000
Total tax expense 947,500

Deferred tax liability Jan.1 900,000.00

Less: Reversal as income tax benefit - 112,500
12/31 Balance 787,500.00

8 IFRS is applied:
 Modified or new principal 5,000,000
Total interest payments 2,000,000
Total absolute value of future cashflows 7,000,000

PV of New Principal 3,180,000

PV of Interest 1,518,500
Total PV of Modified Cash Flows 4,698,500

Original or Old Principal 6,000,000

Accrued interest payable 720,000
Total Carrying amount of old liability and interest 6,720,000

Total CA of old laibility and accrued interest 6,720,000

Less: PV of Modified cash flows 4,698,500
Gain on extinguishment of debt 2,021,500

Journal Entries:

12/31/2023

(DR.) Note Payable - Old 6,000,000

(DR.) Interest Payable 720,000
(DR.) Discount on Note Payable 301,500
(CR.) Note Payable - New
(CR.) Gain on Extinguishment of Debt

Notice that the old debt is considered extinguished

because the gain is at least 10% of 6,720,000

12/31/2024 Journal Entry

(DR.) Interest Expense 563,820

(CR.) Cash
(CR.) Discount on NP

CA 1/1 4,698,500
Add: Amortization of Discount 63,820
CA 12/31 4,762,320

9 Cost of the asset 6,125,000

10 Initial direct cost 176,400
11 Net investment OR Cost of Asset pluc IDC 6,301,400
Less: PV of Unguaranteed residual value 303,800
 PV of Annual Rent 5,997,600
Divided by: PV of an annuity due at 12% for 8 periods 5.712
Rentals to be paid in advance 1,050,000

Annual Rent 1,050,000

Multiply by: Lease term 8
Total rentals 8,400,000
Reasonably Certain Purchase Option or RV (G or UG) 700,000
Gross Investment or Total Receivable 9,100,000

Annual Rent 1,050,000

Multiply by: PV Factor 5.71
PV of Annual Rent 5,997,600
PV of Reasonably Certain PO or PV of RV (G or UG) 303,800
Net investment OR Cost of Asset pluc IDC 6,301,400

Gross Investment or Total Receivable 9,100,000

Less: Net investment / Cost plus direct cost 6,301,400
Total Financial Revenue 2,798,600

Net investment OR Cost of Asset pluc IDC 6,301,400

Less: 1st Rental Payment in advance 1,050,000
Carrying amount of net investment or lease receivable 5,251,400
Multiply by implicit rate 11%
2023 Interest Income 577,654

1-Jan
Lease receivable 8,050,000
Less: Unearned financial revenue 2,798,600
Carrying amount 5,251,400

12 Aug. 1, 2023

Call option (Contract receivable) 45,000

Cash

Market price 5/1/24 120

Less: Strike price 100
Increase in price 20
Multiply by Notional Amount 90,000
Call option receivable 1,800,000
Less: CA of call option 45,000
 Decrease / Adjustment 1,755,000

October 1, 2023

Call option (Contract receivable) 1,755,000

Unrealized gain on CO - OCI

Purchases 10,800,000
Cash

Cash 1,800,000
Call option (Contract receivable)

Unrealized gain on CO - OCI 1,755,000

Purchases

Payments made to suppliers 10,800,000

Less: Gain on call option 1,755,000
Purchases 9,045,000

13 Cost of od machine (310 + 2 + 5) 317,000

Less: Accumulated depreciation 87,600
CA 1/1/23 229,400

Fair value 200,000

Less: CA 229,400
Gain (Loss) on exchange - 29,400

Cost of new machine (350 + 15) 365,000

Less: Residul value 40,000
Depreciable amount 325,000
Divided by 10
Depreciation expense 32,500

14 2020
2020 Ending Inventory 900,000
2022 Ending Inventory
2021 Depreciation
2020 Accrued revenue (140,000)
2021 Accrued revenue
Accrued interest expense
Net Total effect 760,000
15 Transfer
16 PV of rentals 2,933,820
17 PV of Reas. Certain PO and RVG -
Lease liability 2,933,820
Initial direct cost 30,180
Total cost of right of use asset 2,964,000
Less: Residual value / RVG 200,000
Depreciable amount 2,764,000
Divided by: Useful life / Leaseterm 8
Annual depreciation 345,500

Total Lease liability 1/1/23 2,933,820

Less: 1st lease payment 600,000
Lease liability balance 2,333,820
Interest Expense 210,044
Total 2,543,864
Less: 2nd lease payment - 1/1/24 600,000
Balance 1,943,864
Interest Expense 174,948
Total 2,118,812
Less: 3rd lease payment - 1/1/25 600,000
Balance 1,518,812

0.567426855718599
18 3.60477620234501
19 0.432573144281401

Face value 2,837,000

Interest 1,802,400
MV of bonds w/o CO 4,639,400
Effective 556,728
Nominal - 500,000
CA 12/31/24 4,696,128
Effective 563,535
Nominal - 500,000
CA 12/31/25 4,759,663

Issue price 5,750,000

Less: MV of BP w/o CO 4,639,400
Equity component 1,110,600
 Face value 5,000,000
Less: CA 4,639,400
Discount 360,600

CA converted 2,379,832
Equity component 555,300
Total 2,935,132
Less: PV (5,000 x 10 x 50) 2,500,000
Share premium 435,132

Remaining CA 1/1/26 2,379,832

Effective 285,580
Nominal - 250,000
CA 12/31/26 2,415,411

20 Net income 6,500,000

Less: Preferred dividend (5 x 100,000) 800,000
Net income to ordinary shareholders 5,700,000
Divide by: WA ordinary shares 2,000,000
Basic earnings per share 2.85

Effect or adjustment to net income of Incremental OS

Dividends on preference shares 800,000

Divided by incremental ordinary shares 1,250,000
Incremental EPS 0.6400

Adjusted NI if PS are converted (5.7M + 800) 6,500,000

Divide by OS and Inc. OS 3,250,000
Diluted EPS 2.00

21 Unadjusted NI 5,000,000
Amortization of goodwill - 80,000
Amortization of trademark - 100,000
Interest on specific borrowing - 150,000
Adjusted SME net income 4,670,000

22 CA without impairment 10,800,000

Less: CA after impairment and depreciation (10.5M x 80%) 8,400,000
Gain on recovery 2,400,000
23 2023
FV 4,500,000
Less: CA 5,300,000
Untealized loss - SCI - 800,000

24 Share price
25 2023 53
26 2024 56
2025 65
2026 78
2027 90
2028 105

Total
2023 (40,000 x 3 / 3) 40,000
2024 (40,000 x 6 / 3 x 2) 160,000
2025 (40,000 x 15) 600,000
2026 (40,000 x (28 - 15))
2027 (25,000 x (40 - 28))
2028 (15,000 x (105 - 90))

Excercise price 750,000

Share options outstanding 420,000
Total 1,170,000
Less: Par value 450,000
Share premium 720,000

27 RE beginning 2,500,000
NI 2,000,000
Total 4,500,000
Dividends declared (SQUEEZED) - 1,500,000
RE ending 3,000,000

Dividends payable beg. 1,200,000

Dividends declared 1,500,000
 Total 2,700,000
Dividends paid - 1,900,000
Dividends payable end. 800,000

Share capital issued 500,000

Increase in share premium 700,000
Sale of treasury shares 300,000
Dividends paid - 1,900,000
Net cash used in financing activities - 400,000

28 Cash 3,000,000
Share capital
Share premium

29 EI
Jan. 12023
Dec. 31, 2023 462,092
Dec. 31, 2024 468,301
Dec. 31, 2025 475,131

2023*
FV 5,500,000
Less: AC 4,683,012
Cum UG 816,988
Un. G / (L) - SCI

30 Selling price 5,750,000

Less: Amortized cost 4,826,445
Gain on sale 923,555

Cash 5,750,000
Unrealized gain 348,687
FVOCI
Gain on sale

31 Current tax expense / Taxable income 4,000,000

Income tax benefit / FDA - 560,000
Deferred tax expense / FTA 1,440,000
 Financial income subject to tax 4,880,000

32 Statement one only

33 Treasury shares 900,000

Cash

Cash 600,000
Treasury shares
Share premium - treasury shares

Total Share Premium 6,000,000

Divided by issued shares 1,500,000
Excess over par from issuance 4

Share capital 200,000

Share premium - issuance 80,000
Share premium -treas. Shares 60,000
Retained earnings 20,000
Treasury shares

Share capital
Beg. Balances 15,000,000
Reissuance
Retirement - 200,000
NI
End. Balances 14,800,000

34 Current amount due 75,000

PV of noncurrent amount due 627,375
Total contest prize expense 702,375

CA of annuity 1/2/23 627,375

Interest income 62,738
Total 690,113
Less: Contest prize paid - Jan. 2, 2024 75,000
Balance after payment 615,113
35 Contingent gain that are both probable and measurable are disclosed only.

36 Monthly property tax (600,000 / 12 mos) 50,000

Tax expense (Sept. 1 to Dec. 31) 200,000

Partial J.E. Sept. 1, 2023

Land 100,000
Property tax payable

Nov. 1 J.E.

Property tax payable (July 1 to Oct. 31) 200,000

Prepaid property tax 100,000
Cash

37 Cost 500,000
Less: Residual Value 100,000
Depreciable amount 400,000

SL
Cost 500,000
Less: Accumulated Depreciation 160,000
CA 340,000

SP 250,000
Less: CA 340,000
Gain / (Loss) - 90,000

38 Minimum purchase (100,000 x 2) 200,000.00

Decline in value - 8.00
Loss on purchase commitment - 1,600,000.00

Ending inventory 8,250,000

 Loss on writedown - 2,000,000
NRV 6,250,000

39 Face value
Less: Service fee (3% x 700) 21,000
FHB (700k x 5%) 35,000
Int. (700k x 15% x 54 / 365) 15,534
Proceeds

Loss on factoring

40 Cost 30,000,000
Less: Accumulated depr. (30M /25 * 5) 6,000,000
CA 1/1/24 24,000,000

2024
Revalued amounts 27,000,000
Less CA 24,000,000
RS pretax 3,000,000
Less: Deferred tax liability (20%) 600,000
RS - Post tax 2,400,000
Amortization 240,000
RS 12/31/26 2,160,000

CA Revaluation model 1/1/24 27,000,000

Less: 2024 and 2025 Depreciation 2,700,000
CA 12/31/25 24,300,000

41 Liability 1/1 1,800,000

Cost of courses recorded as liab. 2,250,000
Total 4,050,000
Cost of courses rendered 2,600,000
Liability 12/31 1,450,000

42 New policy 900,000

Less: Increase 45,000
Old policy 855,000
 Insurance expense 4 mos 95,000
Insurance expense 8 mos 200,000
Total 2023 insurance expense 295,000

43 Bank
Unadjusted 2,800,000
DIT 350,000
OC net of certified check - 650,000

adjusted 2,500,000

44 Cost 2,500,000
AD (2,000,000 x 8.33% x 3) 500,000
CA 1/1/23 2,000,000
New residual value 250,000
Depreciable amount 1,750,000
Divided by remining life ((12 - 3) + 5 14
2023 Depreciation 125,000

Accumulated depr. 625,000

45 Possbility 1 1,500,000
Possibility 2 800,000
Probability 80%
Risk adustment 6%

Possbility 1 975,000
Possibility 2 280,000
Total 1,255,000
Probability 80%
Undiscounted cashflow before risk adjustment 1,004,000
Risk adjustment 60,240
Undiscounted cashflow after risk adjustment 1,064,240
PV Factor 0.92
Provision 976,334

46 Rentals 600,000
 Leaseterm 8
Gross investment 4,800,000
Less: Net investment 3,619,800
Total financial revenue 1,180,200

Net investment 3,619,800

Less: Advance payment 600,000
Balance 3,019,800
Rate 9%
Annual interest income amount 271,782
Multiply by (8 /12) 67%
Interest income 181,188
Profit from sale 369,800
Total income - 2020 550,988

47 Total compensation expense 13,680,000

Divided by 3
2023 compensation expense 4,560,000

Total Estimated Compensation expense and liability 21,600,000

Multiply by Cumulative period over service period 2/3
Cumulative compensation expense and liability 14,400,000
Less: 12/31/2023 liability 4,560,000
2024 Compensation expense and increase in liability 9,840,000

Total ACTUAL Compensation expense and liability 28,125,000

Less: 12/31/2024 liability 14,400,000
Compensation expense and increase in liability 13,725,000

48

Total Units available 22,400

Less: Units sold 18,000
Units in Ending Inventory 4,400
Less: Apr. 30 purchase 2,000
Balance from Apr. 20 Purchase 2,400
 Apr. 20 Purchase 900,000
Apr. 30 Purchase 800,000
Total cost of EI 1,700,000

Beg. Inventory 2,000,000

Purchases 4,250,000
TGAS 6,250,000
Less: EI as above 1,700,000
COGS 4,550,000

49 AR end 300,000
Collections of AR 2,800,000
Writeoff 10,000
Total 3,110,000
Less: AR beg. 910,000
Credit sales or sales on account 2,200,000
Cash sales 500,000
Total sales 2,700,000
Less: GP 540,000
COS 2,160,000
EI (SQUEEZED) 400,000
TGAS 2,560,000
Less: Purhcases 2,360,000
BI 200,000

50 COGS 200,000
Decrease in inventory - 15,000
Purchases 185,000
Increase in accounts payable - 32,000
Payments to suppliers 153,000

Decrease in inventory 15,000

Increase in AP 32,000
Decrease in prepaid expenses 3,000
Net adjustment to NI 50,000

51 Stand alone price of sale 12,000,000

Stand alone price of points 500,000
Total FV of "combined contract" 12,500,000
 Allocation of sales proceeds:

Sale of goods and services 11,520,000

Sale of points 480,000
Total 12,000,000

Journal entry: 2022

Cash (DR) 12,000,000
Sales (CR)
Deferred income from loyalty points (CR)

Sales
Income from loyalty points redeemed
Total income - 2022

Unearned revenue for points 320,000

Revenue from points

Total points earned as of 2023

Less: 2022 revenue from points
2023 Revenue from points

Unearned revenue for points

Revenue from points

Total for 2023

52 AR - Unassigned 500,000
AR - Assigned 100,000
Total 600,000
Less: Allowance for Doubtful Accounts 50,000
NRV 550,000

Total Notes Receivable 1,500,000

Less: NR - Discounted 300,000
Net CA of Notes Receivable 1,200,000

Cash and cash equivalents 3,600,000

Trade and other receivables 1,750,000
Inventory 1,500,000
Short term investments 950,000
 Total Current Assets 7,800,000

53 Market adjustment beginning - loss - 1,400,000

Unrealized gain in profit or loss (SQUEEZED) 2,950,000
Required market adjustment - gain 1,550,000

Market adjustment beginning - gain 800,000

Unrealized loss in SCI (SQUEEZED) - 250,000
Required market adjustment - gain 550,000

54 Land
Purchase price 2,800,000
Demolition cost
Old building expensed
Legal fees 30,000
Architect fee
Construction insurance
Excavation
Contract cost
Specil assessment 35,000
Total cost 2,865,000

2020
55 Cost 10,000,000
Less: Gov't grant 1,800,000
Net cost of asset 8,200,000
Less: Residual value 1,000,000
Depreciable amount 7,200,000
Multiply by 2/9
Annual net depreciation 1,600,000

2023
Depreciation on net cost (as above) 1,000,000
Depr. on gov't. grant in 2020 - 2022 (1.8M x 21/36) 1,050,000
Annual depreciaiton on Gov't. Grant (1.8M x 5/36) 250,000
Total depreciaiton expense 2,300,000
56 Beginning inventory 350000
Cost of coffee produced 900,000
Total goods available for sale 1,250,000
Less: NRV of Ending inventory 120,000
Cost of sales 1,130,000

CA of bearer plant 1/1/2023 500,000

Less: Depreciation (20% x 500,000) 100,000
CA 12/31/23 400,000

57 C
58 D
59 B
60 D
61 B
62 B
63 B
64 B
65 B
66 C
67 B
68 C
69 B
70 B
 FVPA 12,200
PBO - 8,300
Surplus 3,900
Asset Ceiling 2,700
Effect of AC 12/31 1,200

General Journal Accounts Memo. Record Accts.

Cash OCI PREP.BC Effect of AC PBO
1,500 - 500 - 8,000
- 2,500
- 500
- 800

- 200
- 400 400
- 4,000
2,500
600
700 - 700
- 50
- 4,000 50 1,200
2,700 - 1,200 - 8,300

Note 2
2,500,000
1.00
2,500,000 5,333,600

250 30,000,000
250 12,500,000
17,500,000
 1800000 300000

5%

100% 20%

- 52,500
 10% 4

0.636
3.037

5,000,000
2,021,500

500,000
63,820

700000 0.434
 Dec-31
8,050,000
2,220,946
5,829,054

45,000
 1,755,000

10,800,000

1,800,000

1,755,000

310000 2000 5000

10 3
25000

2021 2022 1/1/23 RE

(900,000) -
800,000 800,000
300,000 300,000
140,000 -
(250,000) 250,000 -
20,000 20,000
(710,000) 1,070,000 1,120,000
RCPO RVG URV
2,933,820 2,933,820 2,933,820 600,000
298,150 298,150 - 500,000
3,231,970 3,231,970 2,933,820
30,180 30,180 30,180
3,262,150 3,262,150 2,964,000
200,000 500,000 -
3,062,150 2,762,150 2,964,000
8 6 6
382,769 460,358 494,000

3,231,970 3,231,970 2,933,820

600,000 600,000 600,000
2,631,970 2,631,970 2,333,820
236,877 236,877 210,044
2,868,847 2,868,847 2,543,864
600,000 600,000 600,000
2,268,847 2,268,847 1,943,864
204,196 204,196 174,948
2,473,044 2,473,044 2,118,812
600,000 600,000 600,000
1,873,044 1,873,044 1,518,812

5,000,000 0.5674
500,000 3.6048

12%
10%

12%
10%

5,000,000 115%

303,872
 5000 10 50

12%
10% 2500000

2,000,000 1500000

2,000,000 1,250,000 10

10500000 80%
 2024 Cumulative loss in equity
3,800,000
4,500,000
- 700,000 - 1,500,000

Exer. Price IV SO Exer

50 3
50 6
50 15
50 28 15,000
50 40 10,000
50 55 15,000
40,000

CY
40,000
120,000
440,000
520,000
300,000
225,000

500,000 750,000 50
400,000 825,000
900,000 1,575,000
300,000 450,000 30
600,000 1,125,000
 5000000 4500000
2500000 1800000
500000 200000

20000 150
2,000,000 20000 100
1,000,000

NI Amort'n AC
4,620,920
400,000 62,092 4,683,012
400,000 68,301 4,751,313
400,000 75,131 4,826,445

2024*
5,100,000
4,751,313
348,687
- 468,301

5,175,131
923,555

20,000,000
- 2,800,000
7,200,000
 24,400,000

50000 18
900,000

30000 20
540,000
60,000

20,000 10

360,000

Share prem RE
6,000,000 7,000,000
60,000
- 140,000 - 20,000
2,500,000
5,920,000 9,480,000

10%
 100,000

300,000

SYD DD
500,000 500,000
247,273 295,200
252,727 204,800

250,000 250,000
252,727 204,800
- 2,727 45,200

100000 2
25 33

250000
 700,000
3%
5%
71,534 15% 54 365
628,466

45,534 21,000 15,534 9,000

25 5

2026
25,650,000
24,300,000
1,350,000
270,000
1,080,000
60,000 20 2 18
1,020,000 3,180,000

75% 3000000

1500000 1100000
 Book
2,520,000
Service charge - 12,000
Interest 10,000
Error (under) - 18,000
2,500,000

500000

12 3 5

65%
35%
 600,000 6.033

3,200,000 50000

4,000 300 12 95%

4,000 300 20 90%

3,750 300 25

10,000 6,000 - 600 5,000 2,000

7,500 - 500 8,000 3,000
 375 2,400
400 2,000

200 10,000
300 6,000
375 4,400
400 2,000

25%

45000 60000

51000 19000

12000 15000

13,500,000
562,500
14,062,500
 12,960,000
540,000
13,500,000

2022 2023
13,500,000
11,520,000 12,960,000
480,000 540,000

11,520,000 12,960,000
320,000 360,000
11,840,000 13,320,000

80,000
320,000 80,000

400,000
320,000
80,000

360,000
360,000

13,400,000

3000000 600000
 1,550,000

Building
200,000 3000000
50,000
- 200,000

300,000
150,000
250,000
5,000,000

5,750,000

2021 2022 2023 2024

10,000,000 10,000,000 10,000,000 10,000,000
1,800,000 1,800,000 1,800,000 1,800,000
8,200,000 8,200,000 8,200,000 8,200,000
1,000,000 1,000,000 1,000,000 1,000,000
7,200,000 7,200,000 7,200,000 7,200,000
1/5 1/6 1/7 1/9
1,400,000 1,200,000 1,000,000 800,000

2024
800,000

200,000 (1.8M x 4/36)

1,000,000
800000 100000
Memo. Record Accts.
FVPA
10,000

1,200

4,000
- 2,500
- 500

12,200
4.8897
0.5963