l . An ~ntity provided the follo\1.
ing trial balance on December 31, 2017 which has been adjusted except
for income ta.x expense:
Cash
600.000
Accounts receivable, net 3,500,000
Cost in excess of billings on long-term contracts 1,600,000
Billings in excess of cost on long-term contracts 700,000
Prepaid taxes 450,000
Property, plant and equipment, net 1,500,000
Note payable - noncurrent 1,600,000
Share capital 2,000,000
Share premium 800,000
Retained earnings unappropriated 900,000
Retained earnings restricted for note payable 150,000
Earnings from Iong-tenn contracts 7,000,000
Costs and expenses 5,500,000
13.150,0QQ 13,150.000
• The entity used the percentage of completion method to account for long-term construction
contracts for financial statement and income tax purposes. All receivables on these contracts are
considered to be collectible withir. 12 months.
• During the curr~nt year, estimated tax paymer.ts of P450,000 were charged to prepaid twces. The
entity has not recorded income tax expense. There were no temporary or permanent differences.
The tax rate is 30%.
On December 3 I, 2017, what amount should be reported as
I. Total retained earnings?
a. 1,950,000
b. 2,100,000
C. 2,400,000
d. 2,550,000
2. Total noncurrent liabilities?
a. 1,600,000
b. 1,750,000
C. 2,300,000
d. 2,450,000
3. Total current assets?
a. 5,000,000
b. 4,100,000
C. 5,700,000
d. 6,225,000
4. Totai shareholders' equity?
a. 2,800,000
b. 3,700,000
C. 4,900,000
d. 4,750,000
An entity provided the fo llowing statement of financial position on December 31.2017:
CUITent assets 2,700,000 Current liabilities 2,500,000
Other assets 6,600,000 Other liabilities 2,000,000
Equity 4,800,000
c _ash and cash equivaknts 500,000
Fmancial assets held for trading 600,000
Accounts receivable 750,000
Inventories 850,000
Total current assets 2,700,000
Property, plant and equipment, cost P6,000,000 4,000,000
Advan~es to subsidiary 2,250,000
Goodwill recorded to cancel losses incurred by the entity in prior years 350,000
Total other assets 6,600,000
Accrued expenses 100,000 ,
Customers' deposit 400,000
Advances from officer, not payable currently 200,000
Accounts payable 1,000,000
Note payable-bank due December 31, 2018 800,000
Total current liabilities 2,500.000
Other liabilities included bonds payable in annual installment of P500,000 2,000.000
I
Share capital \\-ith P 100 par value was originally issued and credited for a total consideration of
P5,500,000 but the losses of the entity for past years were charged against the share capital.
l . \\'hat a'llount should be reported as total assets?
a. 8,950,000
b. 9,300,000
C'. 6,700,000
d. 2,700,000
1
What amour1t should be reported as total current liabilities?
a. 1,500,000
b. 2,000,000
C. 2,800,000
d . 4,500,000
What amount should be repoited as total shareholders' equity?
a. 4,800,000
:,. 5,500,000
,. 5,000,000
,. 4,450,000
4. An entity provided the following net of tax figures for the current year:
Net income 7,700,000
Net remeasurement loss on defined benefit plan 300,000
Unrealized gain on available for sale securities ' 1,500,000
Reclassification adjustment for gain on sale of available for sale securities included
in net income 250,000
Share warrants outstanding 400,000
Cumulative effect of change in accowiting policy - credit 500,000
Interest revenue · 100,000
Equity in associate' s earnings 300,000
Prior period error - underdepreciation 200,000
/
1. Whal is the net amount of other comprehensive income?
a. 1?250,000
b. 1i200,000
C. 11800,000
d. 950,000 •
I
2. What is the comprehensive income for the current year?
a. 8;650,000
b. 8J900,000
C. 8~950,000
d. 9,oso,ooo
