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CH 3 Answers 09
CH 3 Answers 09
Assets
Current assets: Note
Cash and cash equivalents P 35,000
Trading securities 61,000
Trade receivables (1) 107,000
Inventory 322,000 P 525,000
Non-current assets:
Property, plant and equipment (2) P1,483,000
Investment Property 1,000,000
Investments in associates 250,000
Intangibles (3) 141,000 2,874,000
TOTAL ASSETS P3,399,000
Note 3 – Intangibles
Patents, net of accumulated amortization of P22,000 P 98,000
Trademarks, net of accumulated amortization of P17,000 43,000
Total P141,000
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Chapter 3 – The Statement of Financial Position and Notes to the Financial Statements
Note 4 – Trade and other payables
Accounts payable P236,000
Salaries payable 20,000
Withholding taxes payable 80,000
Total P336,000
Note 7 – Reserves
Share Premium -preference P 81,000
Share premium f-ordinary 240,000
Appropriated retained earnings 45,000
Total P366,000
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Chapter 3 – The Statement of Financial Position and Notes to the Financial Statements
Note 1 – Temporary investments
The trading securities, costing P150,000, are reported at market values.
Land Held for Future Use, which conventionally was classified as long-term investment, is
not qualified to be reported as Investment Property under par. 9 of PAS 40. Thus,
property held for future development and subsequent use as owner-occupied property is
part of property, plant and equipment.
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Chapter 3 – The Statement of Financial Position and Notes to the Financial Statements
Note 9 – Reserves
Paid-in capital in excess of par-preferred P234,000
Paid-in capital in excess of par-common 303,000
Total P537,000
Assets
Current liabilities:
Trade and other payables (4) P1,390,000
Unearned rent 90,000 P1,480,0900
Noncurrent liabilities:
Bonds payable (5) 1,000,000
Shareholders’ equity:
Ordinary Share Capital, P10 par P1,200,000
Share Premium 1,040,000
Retained earnings 2,420,000
Total P4,660,000
Less Treasury shares, at cost 330,000 4,330,000
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY P6,810,000
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Chapter 3 – The Statement of Financial Position and Notes to the Financial Statements
Note 3 – Property, plant and equipment
Land P 810,000
Buildings and equipment P3,560,000
Less accumulated depreciation 920,000 2,640,000
Total P3,450,000
Assets
Current assets: Note
Cash P 380,000
Trading securities 485,000
Trade receivables (1) 2,780,000
Inventories 3,050,000
Prepaid insurance 290,000 P 6,985,000
Noncurrent assets:
Property, plant and equipment (2) P 7,100,000
Other financial assets (3) 1,600,000
Intangibles (4) 960,000 9,660,000
TOTAL ASSETS P16,645,000
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Chapter 3 – The Statement of Financial Position and Notes to the Financial Statements
Unrestricted retained earnings, before adjustment P3,580,000
Unrealized gain on trading securities 25,000
Retained earnings P3,605,000
Note 4 – Intangibles
Patents P820,000
Less accumulated amortization 230,000 P 590,000
Trademarks P520,000
Less accumulated amortization 150,000 370,000
Total P960,000
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Chapter 3 – The Statement of Financial Position and Notes to the Financial Statements
Note: The entire amount of Mortgage notes payable is classified as current liabilities because as of
December 31, 2009, the company has no discretion yet to refinance the obligation on a long-term
basis. The refinancing of the mortgage payable in 2010 is non-adjusting event that requires
disclosure in the notes to the financial statements.
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Chapter 3 – The Statement of Financial Position and Notes to the Financial Statements
or
Reported total P4,580,000
Bank overdraft 20,000
Cash for purchase of plant site (1,500,000)
Unreplenished petty cash expenses ( 15,000)
Goods held on consignment ( 40,000)
Cash surrender value of life insurance ( 50,000)
Total current assets at December 31, 2009 P2,995,000
3-11
1. C 5. B 9. A
2. A 6. C 10. A
3. C 7. A
4. A 8. A
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Chapter 3 – The Statement of Financial Position and Notes to the Financial Statements
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