FinAcc vol. 3 Chap3 Problems

7/23/2019 FinAcc vol. 3 Chap3 Problems

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Garnet company

Garnet Company

Balance sheet

December 31, 2015

Assets

notes

Current Asets:

Cash and cash equivalents 86,250.00₱

Trading securities 61,000.00

Trade receivables 5 107,000.00

nventor! "22,000.00

#oncurrent Assets:

$ro%ert!, %lant and equi%&ent 6 1,'"",000.00₱

nvest&ent %ro%ert! 1,000,000.00

nvest&ent in Associates 250,000.00

ntangibles 7 1'1,000.00

Total Assets

Liabilities and sharedholder's eqity

Current liabilities:

Trade and other %a!ables 8 '57,250.00₱

#oncurrent liabilities:

(ond)s %a!able * 7"1,000.00

+eerred ta- liabilit! 50,000.00hareholder)s equit!:

hare ca%ital 10 1,5"',000.00₱

Additional $aid/in Ca%ital 11 "21,000.00

etained earnings "07,000.00

Total liabilities and shareholder)s equit!



!otes to the "inancial statements

note 5/ trade receivables

accounts receivable

less: alloance or bad debts

net accounts receivable

576,250.00₱

note 6/ $ro%ert! %lant and equi%&ent

and

building, net o accu&ulated de%reciation o 5"0000

equi%&ent, net o accu&ulated de%reciation o "51000

2,82',000.00 total $$3

",'00,250.00₱

note " / intangibles

%atents, net o accu&ulated a&orti4ation o 22000

trade&ars, net o accu&ulated a&orti4ation o 17000

total

note 8 / trade and other %a!ables

accounts %a!able

1,2"8,250.00₱ inco&e ta- %a!ablesalaries %a!able

%re&iu& %a!able

ithholding ta-es %a!able

2,162,000.00 total

",'00,250.00₱

note * / bonds %a!able

less: discount on bonds %a!able

total

note 10 / share ca%ital

%reerence share ca%ital

ordinar! share ca%ital

stoc dividends distributable

total

note 11/ Additional $aid/n Ca%ital

share %re&iu& / %reerred

share %re&iu& / ordinar!

note 12/ retained earnings

a%%ro%riateduna%%ro%riated



115,000

8,000

107,000

250,000

*10,000

27",000

1,'"",000

*8,000

'",000

1'1,000

2"6,000

150,00020,000

21,250

"0,000

'57,250

800,000

6*,000

7"1,000

210,000

1,"00,000

2',000

1,5"',000

81,000

2'0,000

"21,000

'5000262000

"07000



Cost

LAND 1,320,000

LAND HELD FOR FUTURE USE 195,000

BUILDING 1,824,000 622,000

MACHINER 639,000 186,000

E!UI"MENT 530,000 212,0004,508,000 1,020,000

LESS MACHINER RECLASSIFIED TO HELD FOR SALE 320,000 80,000

NET

A##$%$&'t()D(*+(#'to-



-(t

1,320,000

195,000

1,202,000

453,000

318,0003,488,000

240,000

3,248,000



#by company

#by Company

$tatement o" %inancial &osition

December 31, 2015

Assets

notes

Current assets:

Cash and cash equivalents 116,000.00₱

Trading securities 1 160,000.00

Trade receivables 2 "08,000.00

nventories " *85,000.00

$re%aid e-%enses "1,000.00

#on current assets held or sale 6 210,000.00

#on current assets:

$ro%ert!, %lant and equi%&ent ' ",2'8,000.00₱

ther inancial assets 5 ""*,000.00

$atents 182,000.00

Total assets

Liabilities and shareholder's eqity


Trade %a!ables 580,000.00₱

nco&e ta- %a!able 2'7,000.00

9nearned revenues 62,000.00

iabilit! or %roduct arrant! 7",000.00

#on current liabilities:

(onds %a!able 7 8'8,000.00

hareholder)s equit!:

hare ca%ital 8 2,028,000.00₱

Additional $aid in Ca%ital * 5"7,000.00

etained earnings 1,20',000.00

Total libilities and shareholder)s equit!




note 1 / trading securities

note 2 / trading receivables

accounts receivable


1,810,000.00₱ total

note " / inventories

ra &aterials

",76*,000.00 or in %rocess

5,57*,000.00₱ inished goods

total

note ' / $$3

land

land held or use

buildings, net o accu&ulated de%reciatio o 622000

&achiner!, net o accu&ulated de%reciation o 106000

equ%&ent, net o accu&ulated de%reciation o 212000

total

1,810,000.00₱

note 5 / other inancial assets

debt invest&ents at a&orti4ed cost

cash surrender value o lie insurance

",76*,000.00 total

5,57*,000.00₱

note 6 / non current assets held or sale

&achiner! net o selling e-%ense o '0000

note 7 / bonds %a!ablebonds %a!able

add: %re&iu& on bonds %a!able

total

note 8 / share ca%itl

%reerence share ca%ital

ordinar! share ca%ital

total

trading securities costing 150000, are re%orted at &aret values o160000



note * / reserves

share %re&iu& / %reerred

share %re&iu& / ordinar!

total

etained 3arnings

oss ro& &easure&ent o &achiner! held or sale

9%dated etained 3arnings



"2",000

15,000

"08,000

222,000

"'7,000

'16,000

*85,000

1,"20,000

1*5,000

1,202,000

'5",000

"18,000

",'88,000

250,000

8*,000

""*,000

210,000

800,000

'8,000

8'8,000

'00,000

1,628,000

2,028,000



2"',000

"0",000

5"7,000

1,2"',000

"0000

1,20',000



Diamond company

Diamond Company


December 31, 2015

Assets

notes

Current assets:

Cash 2"0,000.00₱

Trading securities "20,000.00

Trade receivables 1 510,000.00

nventor! 600,000.00

$re%aid e-%enses 2 200,000.00

#on current assets:

$ro%ert!, %lant and equi%&ent " ",'50,000.00₱

Available or held securities 1,0"0,000.00

$atents '70,000.00

Total assets

otal liabilities and shareholder's capital


Trade and other %a!ables ' 1,"*0,000.00₱

9nearned rent *0,000.00


(onds %a!able 5 1,000,000.00hareholder)s equit!:

rdinar! share ca%ital 1,200,000.00₱

hare %re&iu& 1,0'0,000.00

etained earnings 2,'20,000.00

Total ',660,000.00₱

ess: Treasur! shares ""0,000.00





note 1 / trade receivbles

accounts receivable


note 2 / %re%aid e-%enses

1,860,000.00₱ oice su%%lies

%re%aid insurance

total

',*50,000.00 note " / $$3

6,810,000.00₱ land

buildings, net o accu&ulated de%reciation o *20000

total

note ' / trade and other %a!ables

accounts %a!able

salaries %a!able

ta-es %a!able

2,'80,000.00₱

total

note 5 / bonds %a!able

bonds %a!able

less discount on bonds %a!able

total

',""0,000.00

6,810,000.00₱



5*0,000

80,000

510,000

80,000

120,000

200,000

810,000

2,6'0,000

",'50,000

**0,000

150,000

250,000

1,"*0,000

1,100,000

100,000

1,000,000



(merald company

(merald Company


December 31, 2015

Assets

notes

Current assets: "80,000.00₱

Cash '60,000.00

Current &aretable securities 1 2,780,000.00

Trade receivables ",050,000.00

nventories 2*0,000.00

$re%aid insurance

#on current assets:

$ro%ert!, %lant and equi%&ent 2 7,100,000.00₱

ther inancial assets " 1,600,000.00

ntangibles ' *60,000.00

Total assets

otal liabilities and shareholder's capital


Trade and other %a!ables 5 2,750,000.00₱

nco&e ta-es %a!able 720,000.00


(onds %a!able 6 ','"0,000.00₱ortgage %a!able 1,600,000.00

hareholder)s equit!:

hare ca%ital 7 1,700,000.00₱

$aid/in ca%ital in e-cess o %ar 1,820,000.00

etained earnings ",780,000.00

Total 7,"00,000.00₱

ess: Treasur! stoc 180,000.00





note 1 / trade receivables

accounts receivable

ess: alloance or doubtul accounts

total

6,*60,000.00₱

note 2/ $$3

land

buildings, net o accu&ulated de%reciation o 2100000

equi%&ent, net o accu&ulated de%reciation o 1"00000

*,660,000.00 total

16,620,000.00₱

note " / other inancial assets

invest&ent in da! cor%oration bonds

sining und or bond retire&ent

total

",'70,000.00₱

note ' / intangibles

%atents, net o accu&uated a&orti4ation o 2"0000 6,0"0,000.00 trade&ars, net o accu&ulated a&orti4ation o 150000

total

note 5 / trade and other %a!ables

accounts %a!able

ages %a!able

7,120,000.00 current %ortion o &ortgage %a!able

16,620,000.00₱ total

note 6 / bonds %a!able

bonds %a!ableadd: %re&iu& on onds %a!able

total

note 7 / share ca%ital

%reerence share

ordinar! share

total



2,850,000

70,000

2,780,000

1,200,000

',2'0,000

1,660,000

7,100,000

*00,000

700,000

1,600,000

5*0,000"70,000

*60,000

1,*'0,000

'10,000

'00,000

2,750,000

',000,000'"0,000

','"0,000

600,000

1,100,000

1,700,000



$apphire company

Current Assets:

Cash;12'0000/500000< 7'0,000.00₱

Trading securities;*00000=500000< 1,'00,000.00

Accrued interest revenue 7,000.00

Trade accounts receivable;1220000=50000/60000< 1,210,000.00#otes receivable *20,000.00

Creditor)s account ith debit balance 100,000.00

erchandise inventor! 1,"60,000.00

Total Current Assets 5,7"7,000.00₱

Current iabilities:

Trade accounts %a!able;750000=150000=100000< 1,000,000.00₱

Custo&er de%osit 50,000.00

#otes %a!able;1500000/"00000< 1,200,000.00

Current %ortion o bonds %a!able 500,000.00nco&e ta-es %a!able 280,000.00

3&%lo!ees inco&e ta- ithheld '0,000.00

Accrued interest;2500000-10>-6?12< 125,000.00

Total Current iabilities ",1*5,000.00₱



rqoise company

Current iabilities:

Accounts %a!able 270,000.00₱

ortgage notes %a!able 1,"00,000.00

(an notes %a!able 100,000.00

nterest %a!able 7,500.00

@at %a!able ;2688000?1.12< -.12 288,000.00

ithholding ta- %a!able 120,000.00

$rovision 650,000.00

nco&e ta-es %a!able;186500="5000/105000< 116,500.00

Total current liabilities 2,852,000.00₱



)pal company

Current assets:

9nadBusted total current assets: ',580,000.00₱

Add: (an overdrat 20,000.00

ess: Cash set aside or %lant site 1,500,000.00

3-%ense unre%lenished 15,000.00

oods held on consign&ent '0,000.00

Cash surrender value o lie insurance 50,000.00

Total current assets 2,**5,000.00₱



Aqamarine company

Current asset

e%orted totals ",500,000.00₱

a. etire&ent und cash

b. ess: Treasur! shares

c. Cash und or ta-es 1'0,000.00

d. Advances and co&&ission %a!able 210,000.00

e. $rovision or da&ages

Corect totals ",850,000.00₱



#on current assets Current liabilities #on current liabilities

8,000,000.00₱ 2,'00,000.00₱ 2,700,000.00₱

"80,000.00 "80,000.00

500,000.00

DDD

DDD

168,000.00

7,880,000.00₱ 2,*18,000.00₱ ",080,000.00₱



&eridot company

Cash Trading securities

e%ortd a&ounts) 5"6,000.00₱ 500,000.00₱

a. $ost dated chec recorded 80,000.00

b. ncrease in &aret value 50,000.00

c. oods shi%%ed E( destination

d. oods out on consign&ent

Correct balances 616,000.00₱ 550,000.00₱



Accounts receivable nventor!

",285,000.00₱ ",500,000.00₱

180,000.00 120,000.00

1"5,000.00

",'65,000.00₱ ",755,000.00₱



*ircon company

Current assets:

Accounts receivable 1'8,000.00₱

ess: alloance or bad debts 12,000.00 1"6,000.00₱

Citiban / current account *8,000.00

nventories 217,500.00

ice su%%lies ",500.00

Total current assets '55,000.00₱


Accounts %a!able 12',000.00₱

nco&e ta- %a!able 16,000.00

Advances ro& custo&ers 150,000.00

Accrues interest 17,000.00

$rovision or arranties 60,000.00 "67,000.00

Total current liabilities 88,000.00₱



Disclosres

1. C

2. A

". C

'. A

5. (6. C

7. A

8. A

*. A

10. (

FinAcc vol. 3 Chap3 Problems

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