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    Actg319 Problems Chapter 1

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    Jayson Abayon
    Accounting

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    Actg319 Problems Chapter 1

    Uploaded by

    Jayson Abayon
    15 views5 pages
    Accounting

    Original Title

    ACTG319-PROBLEMS-CHAPTER-1

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    © © All Rights Reserved

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    Accounting

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    15 views5 pages

    Actg319 Problems Chapter 1

    Uploaded by

    Jayson Abayon
    Accounting

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 5

    Problem 1-7

    Burma Company disclosed the following information:


    Accounts payable, after deducting debit balances
    in supplier’s accounts amounting to P100,000 P4,000,000
    Accrued expenses 1,500,000
    Credit balances of customer’s account 500,000
    Share dividends payable 1,000,000
    Claims for increase in wages and allowance by employees
    of the entity, covered in a pending law suit 400,000
    Estimated expenses in redeeming prize coupons 600,000
    What amount should be reported as total current liabilities?
    a. 6,700,000 b. 6,600,000 c. 7,100,000 d. 7,700,000
    Problem 1-8
    Kenya Company provided the following information on December 31, 2023:
    Cash in bank, net of bank overdraft P500,000 5,000,000
    Petty cash, unreplenished cash expenses P10,000 50,000
    Notes receivable 4,000,000
    Accounts receivable, net of customer’s accounts with
    credit balances P1,500,000 6,000,000
    Inventory 3,000,000
    Bond sinking fund 3,000,000
    Accounts payable, net of supplier’s accounts with debit
    balances P1,000,000 7,000,000
    Notes payable 4,000,000
    Bonds payable due June 30, 2024 3,000,000
    Accrued expenses 2,000,000
    What amount should be reported as total current assets on December 31, 2023?
    a. 19,040,000 b. 20,040,000 c. 20,050,000 d. 24,040,000
    Problem 1-15
    Mirr Company was incorporated on January 1, 2023 with proceeds from
    the issuance of P7,500,000 in share capital and borrowed funds of
    P1,100,000. During the first year, revenue from sales and consulting
    amounted to P8,200,000, and operating costs and expenses totaled
    P6,400,000.
    On December 15, 2023, the entity declared a P300,000 dividend,
    payable to shareholders on January 15, 2024. The liabilities increased to
    P2,000,000 by December 31, 2023.
    On December 31, 2023, what amount should be reported as total
    assets?
    a. 11,000,000 b. 11,300,000 c. 10,100,000 d. 12,100,000
    Problem 2-8
    Icarus Company provided the following data at year-end:
    Cash 2,300,000
    Accounts receivable 2,400,000
    Inventory 1,900,000
    Prepaid expenses 100,000
    Accounts payable 2,500,000
    Interest payable 150,000
    Income tax payable 300,000
    Money claim of union pending final decision 500,000
    Mortgage payable, due in four annual installments 2,000,000
    Analysis of Cash
    Cash in bank 1,700,000
    Customer check marked NSF 200,000
    Employee IOU 50,000
    Deposit with court for case under litigation 350,000
    Total Cash 2,300,000
    Analysis of Accounts Receivable
    Customer’s accounts with debit balances 1,600,000
    Advances to subsidiary 400,000
    Advances to suppliers 200,000
    Advances to officers due currently 300,000
    Allowance for doubtful accounts ( 100,000)
    Total accounts receivable 2,400,000
    1. What amount should be reported as total Current Assets?
    a. 5,900,000 b. 5,950,000 c. 6,350,000 d. 5,750,000
    2. What amount should be reported as total Current Liabilities?
    a. 3,450,000 b. 3,400,000 c. 3,950,000 d. 3,700,000

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