Current Asset VS.

Non Current Asset

1) Emerald Company’s trial balance reflected the following account balances on December
31, 2021:

Cash in bank – Dog Bank 200,000

Accounts receivable 750,000
Inventory 600,000
Prepaid insurance 120,000
Prepaid rent (P120,000 per year for the next 3 years) 360,000
Financial assets at fair value through profit or loss 150,000
Financial assets at fair value through other comprehensive 300,000
income
Financial assets at amortized cost 500,000
Deferred tax asset 75,000
Bank overdraft – Dog Bank 125,000
Machinery 400,000
Accumulated depreciation 100,000
Noncurrent assets held for sale – land 325,000
Building used as a plant site 460,000
How much is the total current assets and total non current asset for the year ended December
31, 2021?

Current Asset Non Current

Asset
A. 2,505,000 2,200,000
B. 2,430,000 1,635,000
C. 2,140,000 1,875,000
D. 1,815,000 1,575,000

Current Assets
Cash in bank – Dog Bank: 200,000
Accounts receivable: 750,000
Inventory: 600,000
Prepaid insurance: 120,000
Financial assets at fair value through profit or loss: 150,000
Deferred tax asset: 75,000
Total Current Assets: 1,895,000

Non-Current Assets
Prepaid rent (portion beyond the next 12 months): 240,000 (360,000 - 120,000)
Financial assets at fair value through other comprehensive income: 300,000
Financial assets at amortized cost: 500,000
Machinery: 400,000
Accumulated depreciation: -100,000 (Reduces value of machinery)
Noncurrent assets held for sale – land: 325,000
Building used as a plant site: 460,000
Total Non-Current Assets: 1,875,000
Current Liability VS. Non
Current Liability
2) Flo-Rida Company’s trial balance reflected the following account balances on December
31, 2019:

Cash 1,000,000
Accounts payable, net of debit balance in suppliers’ accounts 1,000,000
amounting to P25,000
Bonds payable 3,400,000
Premium on bonds payable 200,000
Deferred tax liability 400,000
Property dividends payable 400,000
Income tax payable 300,000
Note payable, due January 31, 2020 500,000
Contingent liability 150,000
Share dividends payable 320,000
Cash dividends payable 210,000
Reserve for contingencies 430,000
Estimated expense of meeting warranties 335,000
Estimated damages as a result of unsatisfactory performance on 268,000
a contract
Mortgage payable 1,000,000
Loans payable (payable in five equal annual installments) 500,000

The P1,000,000 Cash account is net of bank overdraft of P300,000 and unreleased check of
P100,000 and including customer’s posted check of P50,000 and sinking fund amounting to
P280,000

How much is the total current liabilities for the year ended December 31, 2019?

Current Liability Non Current Liability

A. 3,538,000 5,400,000
B. 3,238,000 5,500,000
C. 3,688,000 6,103,000
D. 3,388,000 6,003,000

Current Liabilities
Accounts payable (net): 1,000,000 + 25,000 = 1,025,000
Property dividends payable: 400,000
Income tax payable: 300,000
Note payable, due January 31, 2020: 500,000
Share dividends payable: 320,000
Cash dividends payable: 210,000
Estimated expense of meeting warranties: 335,000
Estimated damages from unsatisfactory performance: 268,000
 Current portion of loans payable (1/5): 500,000 / 5 = 100,000
Total Current Liabilities: 3,458,000

Non-Current Liabilities
Bonds payable: 3,400,000
Premium on bonds payable: 200,000
Deferred tax liability: 400,000
Mortgage payable: 1,000,000
Long-term portion of loans payable (4/5): 400,000
Total Non-Current Liabilities: 5,400,000

Comprehensive
Numbers 03, 04, 05, 06 and 07
Dr. Strangest Company provided the following account balances on December 31, 2022:

Accounts payable 1,000,000

Accounts receivable, net of allowance for doubtful accounts 600,000
P50,000
Accrued taxes 50,000
Accrue interest receivable 30,000
Authorized share capital, 50,000 shares, P100 par 5,000,000
Building, net of accumulated depreciation of P2,500,000 3,000,000
Cash on hand 50,000
Cash in bank 650,000
Bond sinking fund 2,000,000
Furniture and equipment, net of accumulated depreciation of 1,500,000
P900,000
Inventory 1,200,000
Investment property 700,000
Land 1,000,000
Deferred tax liability 650,000
Bonds payable due June 30, 2023 2,000,000
Note payable 850,000
Notes receivable 200,000
Patent 370,000
Other accrued liabilities 150,000
Prepaid expenses 100,000
Share premium 300,000
Retained earnings appropriated for contingencies 200,000
Retained earnings 2,700,000
Share subscription receivable 500,000
Subscribed share capital, 2,000 shares 1,000,000
Unissued share capital 2,000,000

3) On December 31, 2022, what total amount should be reported as current assets?
A. 4,830,000
B.
 2,830,000
C. 2,380,000
D. 2,870,000
Cash on hand: 50,000
Cash in bank: 650,000
Accounts receivable (net): 600,000
Accrued interest receivable: 30,000
Inventory: 1,200,000
Notes receivable: 200,000
Prepaid expenses: 100,000
Bond sinking fund: 2,000,000
Total Current Assets: 4,830,000

4) On December 31, 2022, what total amount should be reported as non-current assets?
A. 7,870,000
B. 8,570,000
C. 6,570,000
D. 5,870,000

Building (net): 3,000,000

Furniture and equipment (net): 1,500,000
Investment property: 700,000
Land: 1,000,000
Patent: 370,000
Total Non-Current Assets: 6,570,000

5) On December 31, 2022, what total amount should be reported as current liabilities?
A. 4,050,000
B. 2,050,000
C. 2,700,000
D. 3,900,000

Accounts payable: 1,000,000

Accrued taxes: 50,000
Other accrued liabilities: 150,000
Bonds payable due June 30, 2023: 2,000,000
Note payable: 850,000
Total Current Liabilities: 4,050,000

6) On December 31, 2022, what total amount should be reported as non-current liabilities?
A. 2,650,000
B. 650,000
 C. 1,500,000
D. 0

Deferred tax liability: 650,000

Total Non-Current Liabilities: 650,000

7) On December 31, 2022, what is the total shareholder’s equity?

A. 6,700,000
B. 7,700,000
C. 7,200,000
D. 8,700,000

Authorized share capital: 5,000,000

Subscribed share capital: 1,000,000
Share subscription receivable: 500,000
Unissued share capital: 2,000,000
Share premium: 300,000
Retained earnings: 2,700,000
Retained earnings appropriated for contingencies: 200,000
Total Shareholder's Equity:
Subscribed Share Capital + Share Premium + Retained Earnings (including appropriated)
= 6,700,000