SOLUTION - AUDITING PROBLEMS TEST BANK 1
SOLUTION - AUDITING PROBLEMS TEST BANK 1
PROBLEM 1 â TANYING CORP. PROBLEM 1 â TANYING CORP.
1.
1. BB SSaallees s ((PP11,,335533,,00000 0 + + PP1100,,55000 0 FFrreeiigghhtt)) PP11,,336633,,550000 S
Saallees s rreettuurrnns s aannd d aalllloowwaanncceess ((1111,,770000)) Sales
Sales discounts discounts (2,6î0)(2,6î0)
!
!eett ssaalleess PP11,,33îî"",,116600
2.
2. CC ##nn$$eennttoorr%%,,&&aann..11 PP2266"",,110000 P
Puurrcchhaasseess PPîî22îî,,''0000
P
Puurrcchhaasse e rreettuurrnns s aannd d aalllloowwaannccees s ((PPîî22îî,,''000 0 î î 66îî)) ((2255,,îî'''')) F
Frreeiigghht t iin n ((PP1166,,55775 5 + + PP11,,771100) ) 11'',,22''5 5 îî1177,,55""77 *
*oosst t ooî î ggoooodds s aa$$aaiillaaîîlle e îîoor r ssaallee PP66''66,,66""77 3.
3. DD #n$entor%, -ec. 31, 2017#n$entor%, -ec. 31, 2017 P
Peerr îîooooî î ss PP6611,,665500
/
/ooooddss oouutt oonn ccoonnssiiggnnîîeenntt 5555,,''0000 P
Peerr aauuddiitt PP111177,,îî5500
î.
î. CC -istriîution costsî-istriîution costsî S
Saallees s ssaallaarriiees s aannd d ccooîîîîiissssiioonns s ((PP7755,,00000 0 + + îîPP"",,11''0 0 î î 33îîîî)) PP7755,,227755 Â 4d$ertising eîîense (Pî',270 + îP5,î5î î 2î6î)
 4d$ertising eîîense (Pî',270 + îP5,î5î î 2î6î) 50,0''50,0''
-eîreciation eîîense
-eîreciation eîîense î Salesîdeli$er% e8uî Salesîdeli$er% e8uiîîent (P1',300 + îP23,î00 î 10î î iîîent (P1',300 + îP23,î00 î 10î î 10î12î)10î12î) 20,25020,250 F
Frreeiigghhtt eeîîîîeennssee 1100,,550000
9
9rraa$$eel l eeîîîîeennsse e î î ssaallees s rreeîîrreesseennttaattii$$eess 1133,,66''00 :
:iisscceellllaanneeoouus s sseelllliinng g eeîîîîeennssees s '',,222200 9
9oottaall PP1177'',,001133
5.
5. BB  4dîinistrati$e eîîensesî 4dîinistrati$e eîîensesî ;
;eeggaall sseerr$$iicceess PP 66,,667755
##nnssuurraannccee aanndd lliicceennsseess 2233,,00îî00
--eeîîrreecciiaattiioon n eeîîîîeennsse e î î oîîîîiicce o e ee88uuiiîîîîeenntt 1122,,660000 <
<ttiilliittiieess 11"",,220000
9
9eelleeîîhhoonneeaanndd îîoossttaaggee îî,,îî2255
=
=îîîîiicce e ssuuîîîîlliiees s eeîîîîeennsse e ((PP66,,55îî0 0 î î PP33,,667755)) 22,,''6655 =
=îîîîiicceerrss>> ssaallaarriieess 1100"",,''0000
--oouuîîttîîuul l aaccccoouunntts s eeîîîîeennsse e ((PP77''33,,00000 0 î î 22î î ? ? PP1155,,66660 0 î î PPîî''00) ) 1155,,11''00 9
9oottaall PP11""33,,77''55
6.
6. Â AÂ A Â 4llowance îor douîtîul accounts (P7'3,000 î 2î)Â 4llowance îor douîtîul accounts (P7'3,000 î 2î) P15,660P15,660 7.
7. DD !!eett ssaalleess PP11,,33îî"",,116600
*
*oosst t ooî î ggoooodds s ssoolld d ((PP66''66,,66""7 7 î î PP111177,,îî5500)) ((5566"",,22îî77)) /
/rroossss iinnccooîîee 7777"",,""1133
##nntteerreesst t rree$$eennuue e ((PP11,,66550 0 + + PP11,,66''00)) 33,,333300
--ii$$iiddeenndd rree$$eennuuee 1155,,îî5500
/
/aaiinn oonn ssaalleeooîî aasssseettss 2233,,îî6600
9
9oottaall iinnccooîîee PP''2222,,115533
'.
'. CC 99oottaall iinnccooîîee PP''2222,,115533
--iissttrriiîîuuttiioonn ccoossttss ((1177'',,001133))
 4dîinistrati$e eîîenses  4dîinistrati$e eîîenses (1"3,7'5)(1"3,7'5) #nterest eîîense #nterest eîîense (13,560) (13,560) ;
;oosss s oon n ssaalle e ooî î e8e8uuiiîîîîeenntt ((221177,,''0000)) ##nnccooîîe e îîrrooî î ccoonnttiinnuuiinng g ooîîeerraattiioonns s îîeeîîoorre e ttaaîî PP2211'',,""""55 ".
". BB ==îîîîiicceessuuîîîîlliieess iinn$$eennttoorr%% PP33,,667755 10.
10. Â AÂ A ##nnccooîîeeîîeeîîoorree ttaaîî PP2211'',,""""55 ##nnccooîîe e ttaaî î ((PP2211'',,""""5 5 î î 3300)) ((6655,,6666"")) ##nnccooîîe e îîrrooî î ccoonnttiinnuuiinng g ooîîeerraattiioonnss 115533,,22""66 ##nnccooîîe e îîrrooî î ddiissccoonnttiinnuueed d ooîîeerraattiioonnss, , nneet t ooî î ttaaî î ((PP112200,,00000 0 î î 7700îî) ) ''îî,,000000 !
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PROBLEM 2 â BUNCHING COMPANYÂPROBLEM 2 â BUNCHING COMPANYÂ
 4ccounts
 4ccounts 4ccounts4ccounts
*
*aasshh @@eecceeii$$aaîîllee ##nn$$eennttoorr%% PPaa%%aaîîllee P Peer r îîooooî î ss PP""6633,,220000 PP22,,2255îî,,000000 PP66,,005500,,000000 PPîî,,220011,,000000  4&A  4&A 11 (65î,600)(65î,600) 310,000310,000 BBBBBB BBBBBB 2 2 336600,,000000 BBBBBB BBBBBB 337722,,îî0000 3 3 aa BBBBBB BBBBBB BBBBBB ((117755,,000000)) î î BBBBBB BBBBBB 113300,,000000 BBBBBB cc BBBBBB BBBBBB ((663377,,550000)) BBBBBB d d BBBBBB BBBBBB 221177,,550000 221177,,550000 e e BBBBB B BBBBB B 227755,,00000 0 BBBBBB P Peer r aauuddiitt PP6666'',,660000 PP22,,5566îî,,000000 PP66,,003355,,000000 PPîî,,661155,,""0000 (11 î (11 î CC)) ((112 2 îî BB)) ((113 3 îî A A)) ((11î î î Bî B))  AJES  AJES 1 1.. SSaalleess 336600,,110000  4ccounts recei$aîle (P2"î,500 î "5î)  4ccounts recei$aîle (P2"î,500 î "5î) 310,000310,000 S Saallees s ddiissccoouunntts s ((PP331100,,00000 0 î î 55îî)) 1155,,550000 * *aasshh 6655îî,,660000 2 2.. **aassh h ((PP337722,,îî000 0 î î PP1122,,îî0000)) 336600,,000000 P
Puurrcchhaassee ddiissccoouunnttss 1122,,îî0000
 4ccounts îa%aîle
 4ccounts îa%aîle 372,î00372,î00
3
3.. aa 44ccccoouunnttss îîaa%%aaîîllee 117755,,000000 P
Puurrcchhaasseess 117755,,000000
î
î ##nn$$eennttoorr%% 113300,,000000
*
*oosstt ooîîssaalleess 113300,,000000
cc **oosstt ooîîssaalleess 663377,,550000
##nn$$eennttoorr%% 663377,,550000
d
d PPuurrcchhaasseess 221177,,550000
 4ccounts îa%aîle
 4ccounts îa%aîle 217,500217,500
##nn$$eennttoorr%% 221177,,550000
*
*oosstt ooîîssaalleess 221177,,550000
e
e ##nn$$eennttoorr%% 227755,,000000
*
*oosstt ooîîssaalleess 227755,,000000
îî !o !o adadCuCuststining eg entntr%r% 15.
15. CC *urrent ratioî*urrent ratioî *urrent assetsî *urrent assetsî * *aasshh PP6666'',,660000  4ccounts recei$aîle  4ccounts recei$aîle 2,56î,0002,56î,000 ##nn$$eennttoorr%% 66,,003355,,000000 PP"",,226677,,660000 *urrent liaîilitiesî *urrent liaîilitiesî  4ccounts îa%aîle  4ccounts îa%aîle Pî,615,"00Pî,615,"00  4ccrued eîîenses  4ccrued eîîenses î31,000 î31,000 5,0î6,"005,0î6,"00 1.'î 1.'î
Page 3
Page 3
PROBLEM 3 â PAKO COMPANYÂPROBLEM 3 â PAKO COMPANYÂ 16.
16. DD DDaallaannccee,, &&aann.. 11 PP11,,''0000,,000000
&&uunne e 330 0 aacc88uuiissiittiioon n ((PP11,,00''00,,00000 0 + + PPîî'',,000000)) 11,,1122'',,000000 S
Seeîîtt..3300 ssaallee ((115500,,000000))
--eecc. . 1 1 ttrraadde e iinnîî oolld d îîaacchhiinnee ((""00,,000000)) n
neewwîîaacchhiinnee 272700,,000000
D
Daallaannccee,, --eecc.. 3131 PP22,,""55'',,000000
17.
17. Â AÂ A @eîainder oî îeginning îalance (P1,'00,000 î P150,000 î P"0@eîainder oî îeginning îalance (P1,'00,000 î P150,000 î P"0 ,000 ?,000 ? P
P11,,556600,,000000 îî1010îî)) PP115566,,000000
&&uunne e 330 0 aacc88uuiissiittiioon n ((PP11,,1122'',,00000 0 î î 1100î î î î 66îî1122)) 5566,,îî0000 S
Seeîîtt. . 330 0 ssaalle e ((PP115500,,00000 0 î î 1100î î î î "îî1" 122)) 1111,,225500
--eecc. . 1 1 ttrraadde e iinnîî oolld d îîaacchhiinne e ((PP""00,,00000 0 î î 1100î î î î 1111îî1122)) '',,225500 n
neew w îîaacchhiinne e ((PP227700,,00000 0 î î 1100î î î î 11îî1122) ) 22,,225500
--eeîîrreecciiaattiioon n eeîîîîeennsse e îîoor r 22001155 PP2233îî,,115500 GENLUNA COPPERMINES, INC.
GENLUNA COPPERMINES, INC. 1'.
1'. CC --eeîîlleettiioon n rraatte e îîeer r ttoon n ((PP11îî,,55''00,,00000 0 î î 11,,662200,,000000)) P P "" *
*ooîîîîeer r oorre e îîiinneed d iin n 2200117 7 ((1155,,00000 0 î î 6 6 îîoonntthhss) ) î î ""00,,000000
--eeîîlleettiioonn îîoorr22001177 PP ''1100,,000000
--eeîîlleettiioonn îîeerrîoîoooî î ss 11,,221155,,000000
=
=$$eerrssttaatteeîîeennt t ooî î ddeeîîlleettiioon n eeîîîîeennssee PPîî0055,,000000 1".
1". DD --eeîîrreecciiaaîîlle e ccoosst t ooî î îîaacchhiinneerr% % ((PP11,,''0000,,00000 0 î î ""00îî)) PP11,,662200,,000000 A
Assttiiîîaatteed d ccooîîîîeer r oorre e rreesseerr$$ee 11,,662200,,000000
--eeîîrreecciiaattiioonn rraattee îîeerr ttoonn PP 11
*
*ooîîîîeerr oorree îîiinneedd iinn 22001177 ""00,,000000
--eeîîrreecciiaattiioon n eeîîîîeennsse e îîoor r 22001177 P P ""00,,000000
--eeîîrreecciiaattiioonn îîeerrîoîoooî î ss 112200,,000000
=
=$$eerrssttaatteeîîeennt t ooî î ddeeîîrreecciiaattiioon n eeîîîîeennssee P P 3300,,000000 20.
20. DD &anuar% 1, 201î&anuar% 1, 201î 9
9oottaal l ccoosst t ooî î îîaacchhiinne e ((PP330000,,00000 0 + + PP33,,00000 0 + + PP1122,,000000)) PP331155,,000000 @esidual
@esidual $alue $alue (12,000)(12,000)
--eeîîrreecciiaaîîlleeccoosstt PP330033,,000000
A
Assttiiîîaatteedd uusseeîîuull lliiîîee 1100 %%eeaarrss
 4nnual deîreciation
 4nnual deîreciation P30,300P30,300
--eeîîrreecciiaaîîlleeccoosstt PP330033,,000000
--eeîîrreecciiaattiioonn, , 2200116 6 î î 220011î î ((PP3300,,33000 0 î î 3 3 %%eeaarrss) ) ((""00,,000000)) @
@eeîîaaiinniinng g ddeeîîrreecciiaaîîlle e ccoosstt, , &&aann. . 11, , 22001177 PP221122,,110000 *
*oosstt ooîînneeww îîaarrttss 3377,,''0000
9
9oottaall PP22îî"",,""0000
@
@eeîîaaiinniinng g usseu eîîuul l lliiîîe e ((110 0 %%eeaarrs s î î 3 3 %%eeaarrss) ) 7 7 %%eeaarrss @
@ee$$iisseed d aannnnuuaal l dedeîîrreecciiaattiioonn PP3355,,770000 PROBLEM 4 â HARLINGTON COMPANYÂ
PROBLEM 4 â HARLINGTON COMPANYÂ 21.
21. Â AÂ A !!eet t iinnccooîîe e îîeeîîoorre e ttrraaddiinng g sseeccuurriitt% % aaddCCuussttîîeenntt PP22,,770000,,000000 <
<nnrreeaalliiEEeed d lloosss s ((PP33,,îî6655,,00000 0 ccoosst t î î PP33,,11""55,,00000 0 îîaarrî î eet t $$aalluuee) ) ((227700,,000000)) !
!eet t iinnccooîîee, , aas s adadCCuusstteedd PP22,,îî3300,,000000 22.
22. BB !!eet t iinnccooîîe e îîeeîîoorre e ttrraaddiinng g sseeccuurriitt% % aaddCCuussttîîeenntt PP22,,770000,,000000 <
<nnrreeaalliiEEeed d ggaaiin n ((PP33,,îî6655,,00000 0 ccoosst t î î PP33,,5566îî,,00000 0 îîaarrî î eet t $$aalluuee) ) """",,000000 !
!eet t iinnccooîîee, , aas s adadCCuusstteedd PP22,,77"""",,000000 LABADA CO.
LABADA CO. 23.
23. DD **aarrrr%%iinng g îîaalluuee ::aarrî î eet t îîaalluuee / /aanndda a **oo.. PP11,,771100,,000000 PP11,,7755"",,550000 G Gaassttoonn, , ##nncc. . ((PP11335 5 î î 11,,''0000) ) 22îî33,,00000 0 2222"",,550000 P P11,,""5533,,000000 PP11,,""''"",,000000
<
<nnrreeaalliiEEeed d ggaaiin n ((PP11,,""''"",,00000 0 î î PP11,,""5533,,000000)) PP3366,,000000 2î.
2î. CC !!eet t îîrroocceeeedds s ((PP""3 3 î î 1155,,00000 0 ? ? PP11,,33""55,,00000 0 î î PP1133,,550000)) PP11,,33''11,,550000 *
*aarrrr%%iinngg $$aalluuee ((11,,225511,,000000))
/
/aaiinn oonn ssaallee PP 113300,,550000
25.
25. BB 99rraaddiinng g sseeccuurriittiiees s aat t îîaaiir r $$aalluuee PP11,,""''"",,000000
Page î
Page î
PROBLEM 5 â SAMSON MFG. CO.PROBLEM 5 â SAMSON MFG. CO. 26.
26. CC  4ctual îorrowing costî 4ctual îorrowing costî S
Sîîeecciiîîiic c îîoorrrroowwiinng g ((PP5 5 îîiilllliioon n î î 1100îî)) PP550000,,000000 /eneral îorrowingsî /eneral îorrowingsî P P225 5 îîiilllliioon n î î 'î'î PP22,,000000,,000000 P P115 5 îîiilllliioon n î î 66î î "0"000,,00000 0 22,,""0000,,000000 9 9oottaall PP33,,îî0000,,000000 *
*aaîîiittaalliiEEaattiioon n rraatte e ((PP22,,""0000,,000000îîPPîî0 0 îîiilllliioonn)) 77..2255îî Â 4$erage eîîenditures î 2016
 4$erage eîîenditures î 2016 P7,250,000P7,250,000
*aîitaliEaîle interest î 2016î *aîitaliEaîle interest î 2016î
S
Sîîeecciiîîiic c îîoorrrroowwiinng g ((PP5 5 îîiilllliioon n î î 1100îî)) PP550000,,000000 /e
/enenerraal l îîororrrowowiingngs s (P(P7,7,25250,0,00000 0 î î PP5,5,00000,0,00000 0 ? ? PP2,2,25250,0,00000 0 î î 7.7.2525î) î) 16163,3,121255 9
9oottaall PP666633,,112255
27.
27. BB Â 4$erage eîîenditures î 2017Â 4$erage eîîenditures î 2017 P16,163,125P16,163,125 *aîitaliEaîle interest î 2017î
*aîitaliEaîle interest î 2017î S
Sîîeecciiîîiic c îîoorrrroowwiinng g ((PP5 5 îîiilllliioon n 1100î î î î 66îî1122)) PP225500,,000000 /eneral îorrowi
/eneral îorrowings (P16,163,125 î P5,000,000 ? ngs (P16,163,125 î P5,000,000 ? P11,163,125 î 7.25î î P11,163,125 î 7.25î î 6î12) 6î12) î0î,663î0î,663 9
9oottaall PP6655îî,,666633
2'.
2'. Â AÂ A 220011î î iinntteerreesst t eeîîîîeennsse e ((PP33,,îî0000,,00000 0 î î PP666633,,112255)) PP22,,773366,,''7755 2".
2". DD 2200115 5 iinntteerreesst t eeîîîîeennsse e ((PP33,,îî0000,,00000 0 î î PP6655îî,,666633)) PP22,,77îî55,,333377 30.
30. BB  4ccuîulated eîîenditures îeîo 4ccuîulated eîîenditures îeîore interestre interest P1",500,000P1",500,000 ##nntteerreesst t ccaaîîiittaalliiEEeed d iin n 2200116 6 aannd d 2200117 7 ((PP666633,,11225 5 + + PP6655îî,,666633) ) 11,,331177,,77'''' 9
9oottaal l ccoosst t ooî î îîuuiillddiinngg PP2200,,''1177,,77'''' PROBLEM 6
PROBLEM 6
C
Cîî!!""##$$%%&&''((îî$$ CC))!!))**&&''((++## E
Eîî""##$$%%## CCîî!!""##$$%%&&''((îî$$
 Y#&- Y#&- C&*î)*&'(î$C&*î)*&'(î$ /î- P#-(î/î- P#-(î00 Eî"#$%#Eî"#$%# 1
1 3300,,00000 0 ooîîttiioonns s î î PP5 5 îîaaiir r $$aalluue e î î P P 5500,,000000 P P 5500,,000000 2
2 3300,,00000 0 ooîîttiioonns s î î PP5 5 îîaaiir r $$aalluue e î î 5500,,000000 110000,,000000 3
3 3300,,00000 0 ooîîttiioonns s î î PP5 5 îîaaiir r $$aalluue e î î 5500,,000000 115500,,000000 31.
31. CC 32.32. CC 33.33. DD 3î.3î. DD 35.35. DD
PROBLEM î â BRANDY CO. PROBLEM î â BRANDY CO. 36.
36. CC ==rrddiinnaarr% % sshhaarrees s iissssuueed d aannd d oouuttssttaannddiinngg 7722,,000000 =
=rrddiinnaarr% % sshhaarrees s ssuuîîssccrriiîîeed d 7722,,000000 9
9oottaall 11îîîî,,000000
=
=rrddiinnaarr% % sshhaarrees s iissssuueed d tto o aacc88uuiirre e llaanndd ((22îî,,000000)) =
=rrddiinnaarr% % sshhaarrees s oorriiggiinnaallll% % ssuuîîssccrriiîîeedd 121200,,000000 P
Paarr $$aalluueeîîsshhaarree îî PP1100
9
9oottaall îîaarr$$aalluuee PP11,,220000,,000000
S
Shhaarre e îîrreeîîiiuuî î ((PP22,,''5500,,00000 0 î î PPîî5500,,000000) ) 22,,îî0000,,000000 9
9oottaal l ssuuîîssccrriiîîttiioon n îrriicceî e PP33,,660000,,000000
H P6"0,000 Fî oî land î P2î0,000 Pî H P6"0,000 Fî oî land î P2î0,000 Pî
37.
37. DD SSuuîîssccrriiîîttiioon n ooî î 1122,,00000 0 îîrreeîîeerreenncce e sshhaarrees s I I PP112200îîsshhaarree PP11,,îîîî00,,000000 S
Suuîîssccrriiîîttiioon n ooî î 6600,,00000 0 îîrreeîîeerreenncce e sshhaarrees s I I PP110000îîsshhaarree 66,,000000,,000000 9
9oottaall 77,,îîîî00,,000000
 JearBend îalance oî suîscriî
 JearBend îalance oî suîscriîtions recei$aîle î îreîerence tions recei$aîle î îreîerence (360,000)(360,000)  4îount collected îroî suîscriîers
3'.
3'. BB PPrreeîîeerreennccee ==rrddiinnaarr%%
##ssssuueedd PP66,,660000,,000000 PP 772200,,000000
S
Suuîîssccrriiîîeedd 660000,,000000 772200,,000000
S
Shhaarre e îîrreeîîiiuuîî 22îî00,,000000 22,,''5500,,000000 S
Suuîîssccrriiîîttiioonns s rreecceeii$$aaîîlle e ((336600,,000000)) ((11,,00''00,,000000)) *
*oonnttrriiîîuutteed d ccaaîîiittaall PP77,,00''00,,000000 PP33,,221100,,000000
Page 5
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CONDESSA CO.CONDESSA CO. 1
1.. --ii$$iiddeenndds s îîaa%%aaîîlle e î î îîrreeîîeerreenncce e ((PP' ' î î 6600,,000000)) îî''00,,000000
--ii$$iiddeenndds s îîaa%%aaîîlle e î î oorrddiinnaarr% % ((PP2 2 î î 660000,,000000)) 11,,220000,,000000 *
*aasshh 11,,66''00,,000000
2
2.. 99rreeaassuurr%% sshhaarreess 33,,22îî00,,000000
*
*aasshh ((PPîî00 îî ''11,,000000)) 33,,22îî00,,000000
3
3.. ;;aanndd ""0000,,000000
9
9rreeaassuurr% % sshhaarrees s ((PPîî0 0 î î 2211,,000000)) ''îî00,,000000 S
Shhaarre e îîrreeîîiiuuî î î î ttrreeaassuurr%% 6600,,000000 î
î.. **aassh h ((PP11005 5 î î 1515,,000000)) 11,,557755,,000000 P
Prreeîîeerreenncce e sshhaarre e ccaaîîiittaal l ((PP11000 0 î î 1155,,000000)) 11,,550000,,000000 S
Shhaarre e îîrreeîîiiuuî î î î îîrreeîîeerreennccee 7755,,000000 5
5.. @@eettaaiinneed d eeaarrnniinnggs s ((PPîî5 5 î î 55îî,,000000HH)) 22,,îî3300,,000000 S
Sttooccî î ddii$$iiddeenndds s îîaa%%aaîîlle e ((PP5 5 î î 55îî,,000000)) 227700,,000000 S
Shhaarre e îîrreeîîiiuuî î î î orrdo diinnaarr%% 22,,116600,,000000
H 600,000 î 60,000 treasur% shares ? 5î0,000 î 10î H 600,000 î 60,000 treasur% shares ? 5î0,000 î 10î
6
6.. SSttooccî î ddii$$iiddeenndds s îaîa%%aaîîllee 227700,,000000 =
=rrddiinnaarr%%sshhaarreeccaaîîiittaall 272700,,000000
7
7. @. @eettaaiinneed d eeaarrnniinnggss 11,,77'''',,000000
--ii$$iiddeenndds s îîaa%%aaîîlle e î î îîrreeîîeerreenncce e ((PP' ' î î 7755,,000000)) 660000,,000000
--ii$$iiddeenndds s îîaa%%aaîîlle e î î oorrddiinnaarr% % ((PP2 2 î î 55""îî,,000000HH)) 11,,11'''',,000000
H 5î0,000 + 5î,000 H 5î0,000 + 5î,000
'
'.. ##nnccooîîee ssuuîîîîaarr%% "",,""0000,,000000 @
@eettaaiinneedd eeaarrnniinnggss "",,""0000,,000000 P
Prreeîîeerreenncce e sshhaarre e ccaaîîiittaal l ((PP66,,000000,,00000 0 + + PP11,,550000,,000000)) PP77,,550000,,000000 =
=rrddiinnaarr% % sshhaarre e ccaaîîiittaal l ((PP33,,000000,,00000 0 + + PP227700,,000000)) 33,,227700,,000000 S
Shhaarre e îîrreeîîiiuuî î ((PP33,,775500,,00000 0 + + PP6600,,00000 0 + + PP7755,,00000 0 + + PP22,,116600,,000000)) 66,,00îî55,,000000 @etained earnings (P3,500,000 î P2,î30,000 î P1,7'',000 + P","00,000) (3" î
@etained earnings (P3,500,000 î P2,î30,000 î P1,7'',000 + P","00,000) (3" î A A)) "",,11''22,,000000 9
9rreeaassuurr% % sshhaarrees s ((PP33,,22îî00,,00000 0 î î PP''îî00,,000000) ) ((22,,îî0000,,000000)) 9otal (î0 î
9otal (î0 î BB)) PP2233,,55""77,,000000
PROBLEM î â CABOOM LABORATORIES PROBLEM î â CABOOM LABORATORIES
î1.
î1. DD **oosst t tto o ooîîttaaiin n îîaatteennt t ((&&aannuuaarr% % 22001100)) PP11''66,,115500 2
200110 0 aaîîoorrttiiEEaattiioon n ((PP11''66,,115500îî1177) ) ((1100,,""5500)) *
*aarrrr%%iinng g $$aalluuee, , --eecc. . 3131, , 22001100 PP117755,,220000 î2.
î2. CC **aarrrr%%iinng g $$aalluuee, , &&aann. . 11, , 22001111 PP117755,,220000 Â 4îortiEation, 2011B201î (P10,"50 î î %ears)
 4îortiEation, 2011B201î (P10,"50 î î %ears) (î3,'00)(î3,'00)
*
*aarrrr%%iinng g $$aalluuee, , --eecc. . 3131, , 220011îî PP113311,,îî0000 î3.
î3. CC **aarrrr%%iinng g $$aalluuee, , &&aann. . 11, , 22001155 PP113311,,îî0000 Â 4îortiEation, 2015B2017 (P131,î00 î 3î5)
 4îortiEation, 2015B2017 (P131,î00 î 3î5) (7','î0)(7','î0)
*
*aarrrr%%iinng g $$aalluuee, , --eecc. . 3131, , 22001177 P P 5522,,556600 BARTOLO COMPANYÂ
BARTOLO COMPANYÂ îî.
îî. Â AÂ A **oosst t ooî î îîaatteennt t îîuurrcchhaasseed d oon n &&aann. . 11, , 22001166 PPîî,,000000,,000000 2
200116 6 aaîîoorrttiiEEaattiioon n ((PPîî,,000000,,000000îî1100) ) ((îî0000,,000000)) *
*aarrrr%%iinng g $$aalluuee, , --eecc. . 3311, , 22001166 33,,660000,,000000 2
200117 7 aaîîoorrttiiEEaattiioon n ((PP33,,660000,,000000îî55) ) ((772200,,000000)) PP22,,''''00,,000000 *
*oosst t ooî î îîrraanncchhiissee PP""6600,,000000 2
9
9oottaal l ccaarrrr%%iinng g $$aalluue e ooî î iinnttaannggiiîîlleess PP33,,77îîîî,,000000 î5.
î5. BB Â 4îortiEation oî îatent î 2017Â 4îortiEation oî îatent î 2017 P720,000P720,000 Â 4îortiEation oî îranchise î 2017
 4îortiEation oî îranchise î 2017 "6,000"6,000
P
Paa%%îîeennt t tto o --eellcco o ((PP55,,000000,,00000 0 î î 55îî)) 225500,,000000 @
@eesseeaarrcch h aannd d ddee$$eellooîîîîeennt t ccoosstts s ''6666,,000000 9
9oottaal l cchhaarrggees s aaggaaiinnsst t 2200117 7 iinnccooîîee PP11,,""3322,,000000
Page 6
Page 6
PROBLEM NO. î â SAMOA COMPANYîCHILE CO.PROBLEM NO. î â SAMOA COMPANYîCHILE CO. î6.
î6. Â AÂ A =$erB (<nderB)stateîent=$erB (<nderB)stateîent
<
<nnddeerrssttaatteeîîeennt t ooî î 2200116 6 eennddiinng g iinn$$eennttoorr%% P P îî'',,000000 =
=$$eerrssttaatteeîîeennt t ooî î 2200117 7 eennddiinng g iinn$$eennttoorr%% îî00,,550000 P
Prreeîîaaiid d iinnssuurraanncce e cchhaarrggeed d tto o eeîîîîeennsse e iin n 2200116 6 ((PP333300,,00000 0 K K 33)) 111100,,000000 <nrecorded
<nrecorded sale sale oî oî îull% îull% deîreciated deîreciated îachiner% îachiner% in in 2017 2017 (75,000)(75,000) 9
9oottaal l eeîîîîeecct t ooî î eerrrroorrs s oon n nneet t iinnccooîîee PP112233,,550000 î7.
î7. DD =$erB (<nderB)stateîent=$erB (<nderB)stateîent
=
=$$eerrssttaatteeîîeennt t ooî î 2200117 7 eennddiinng g iinn$$eennttoorr%% P P îî00,,550000 P
Prreeîîaaiid d iinnssuurraanncce e cchhaarrggeed d tto o eeîîîîeennsse e iin n 22001166 ((111100,,000000)) <
<nnrreeccoorrddeed d ssaalle e ooî î îîuullll% % ddeeîîrreecciiaatteed d îîaacchhiinneerr% % iin n 2200117 7 ((7755,,000000)) 9
9oottaal l eeîîîîeecct t oon n wwoorrî î iinng g ccaaîîiittaall ((PP11îîîî,,550000)) î'.
î'. CC =$erB (<nderB)stateîent=$erB (<nderB)stateîent
=
=$$eerrssttaatteeîîeennt t ooî î 2200117 7 eennddiinng g iinn$$eennttoorr%% P îP î00,,550000 <
<nnddeerrssttaatteeîîeennt t ooî î ddeeîîrreecciiaattiioon n eeîîîîeennsse e iin n 22001166 1111,,550000 P
Prreeîîaaiid d iinnssuurraanncce e cchhaarrggeed d tto o eeîîîîeennsse e iin n 22001166 ((111100,,000000)) <
<nnrreeccoorrddeed d ssaalle e ooî î îîuullll% % ddeeîîrreecciiaatteed d îîaacchhiinneerr% % iin n 2200117 7 ((7755,,000000)) 9
9oottaal l eeîîîîeecct t oon n rreettaaiinneed d eeaarrnniinnggss ((PP113333,,000000)) 2
2001166 22001177 P
Prreettaaîî iinnccooîîee PP550055,,000000 PP33''77,,000000
S
Saallees s rree$$eennuue e eerrrroonneeoouussll% % rreeccooggnniiEEeed d iin n 22001166 ((11""11,,000000)) 11""11,,000000 <
<nnddeerrssttaatteeîîeennt t ooî î 2200116 6 eennddiinng g iinn$$eennttoorr%% îî33,,220000 ((îî33,,220000)) <nderstateîent oî îond interest eîîense
<nderstateîent oî îond interest eîîense (1)(1) ((77,,225500)) ((77,,7755''))
=r
=rdidinanar% r% rereîîaiairrs s eerrrrononeoeoususll% % cacaîîititaaliliEEed ed (î(î2,2,50500)0) (î(î7,7,00000)0) =$erstateîent oî deîreciation
=$erstateîent oî deîreciation (2)(2) îî,,22550 0 '',,""5500
*
*oorrrreecctteed d îîrreettaaî î iinnccooîîee PP331111,,770000 PPîî'''',,""""22
(1)
(1) DDooooî î îîaalluuee !!ooîîiinnaall AAîîîîeeccttii$$ee --iissccoouunntt
 Jear
 Jear oî Dondsoî Donds #nterest#nterest #nterest#nterest 4îortiEation4îortiEation 2 2001166 PP11,,117755,,000000 PP7755,,000000 PP''22,,225500 PP77,,225500 2 2001177 11,,11''22,,225500 7755,,000000 ''22,,7755'' 77,,7755'' (2) (2) 2 2001166 ((PPîî22,,55000 0 K K 1100)) PPîî,,225500 2 2001177 ((PPîî22,,55000 0 K K 1100)) PPîî,,225500 ((PPîî77,,00000 0 K K 1100) ) îî,,770000 PP'',,""5500 î". î". CC 50.50. DD PROBLEM NO. 1î â
PROBLEM NO. 1î â OMEGA COMPANYîDOMEGA COMPANYîDP, INC.P, INC. 51.
51. CC **oonnttaaiinneerrs hs heelld îd î% c% cuussttooîîeerrs as at -t -eecc. 3. 311, 2, 200116 î6 îrrooî dî deellii$$eerriiees is in 2n 2001155 PP''55,,000000 *
*oonnttaaiinneerrs s rreettuurrnneed d iin n 2200117 7 îîrrooî î ddeellii$$eerriiees s iin n 2200115 5 ((5577,,550000)) @
@ee$$eennuue e îîrrooî î ccoonnttaaiinneer r ssaalleess PP2277,,550000 52.
52. Â AÂ A ;;iiaaîîiilliitt% % îîoor r rreettuurrnnaaîîlle e ccoonnttaaiinneerrss, , --eecc. . 3311, , 22001166 PP332255,,000000
--eellii$$eerriieess iinn 22001177 îî3300,,000000
9
9oottaall 775555,,000000
2
200117 7 ccoonnttaaiinneer r rreettuurrnnss PP3355îî,,550000 2
200117 7 ccoonnttaaiinneer r ssaallees s 2277,,55000 0 ((33''22,,000000)) ;
;iiaaîîiilliitt% % îîoor r rreettuurrnnaaîîlle e ccoonnttaaiinneerrss PP337733,,000000 53.
53. CC <nearned warrant% re$enueî<nearned warrant% re$enueî * *uurrrreennt t ((PP''110 0 î î 22770 0 î î 11îî33)) PP7722,,""0000 ! !oonnBBccuurrrreennt t ((PP''110 0 î î 27270 0 î î 22îî33)) PP11îî55,,''0000 5î. 5î. DD PPaarrttss PP11'',,000000
;
;aaîîoorr 3366,,000000
9
9oottaall wwaarrrraanntt%% eîîîe îeennssee PP55îî,,000000 55.
55. BB <nearned warrant% re$enueî<nearned warrant% re$enueî * *uurrrreennt t ((PP''110 0 î î 22770 0 î î 11îî33)) PP7722,,""0000 ! !oonnBBccuurrrreennt t ((PP''110 0 î î 27270 0 î î 11îî33)) PP7722,,""0000
Page 7
Page 7
PROBLEM 11 â TGR Cî!"&$î PROBLEM 11 â TGR Cî!"&$î 56.56. DD 9radeBin î &une 30, 20159radeBin î &une 30, 2015 *
*oosstt PP115577,,220000
 4ccuî. deîreciation, 1î1î13 î 6î30î15 (P157,200 î 20î î 2.5 %rs.)
 4ccuî. deîreciation, 1î1î13 î 6î30î15 (P157,200 î 20î î 2.5 %rs.) 7',6007',600 *
*aarrrr%%iinngg $$aalluuee 77'',,660000
9
9rraaddeeBBiinn $$aalluuee 1122"",,000000 PP5500,,îî0000 Sale î &an. 1, 2016 Sale î &an. 1, 2016 * *oosstt PP113322,,000000 Â 4ccuî. deîreciation, 1î1î13 î 1î1î16 (P132,000 î 20î î 3 %rs.) Â 4ccuî. deîreciation, 1î1î13 î 1î1î16 (P132,000 î 20î î 3 %rs.) 7",2007",200 *
*aarrrr%%iinngg $$aalluuee 5522,,''0000
! !eett îîrroocceeeeddss 7171,,225500 11'',,îî5500 Sale î =ctoîer 1, 2017 Sale î =ctoîer 1, 2017 * *oosstt PP112200,,000000 Â 4ccuî. deîreciation, 1î1î13 î 10î1î17 (P120,000 î 20î î î "î12) Â 4ccuî. deîreciation, 1î1î13 î 10î1î17 (P120,000 î 20î î î "î12) 11î,00011î,000 *
*aarrrr%%iinngg $$aalluuee 66,,000000
P
Prroocceeeeddss 22îî,,000000 11'',,000000
9
9oottaall ggaaiinn PP''66,,''5500
57.
57. CC ::aacchhiinne e aacc88uuiirreed d oon n SSeeîîtt. . 3300, , 2200113 3 ((PP11''00,,00000 0 + + PP66,,000000)) PP11''66,,000000 :
:aacchhiinne e aacc88uuiirreed d oon n &&uunne e 3300, , 220011î î ((PP22îî00,,00000 0 î î ""''îî)) 223355,,220000 :
:aacchhiinne e aacc88uuiirreed d oon n &&uunne e 3300, , 2200116 6 ((lliisst t îîrriiccee) ) 2277"",,000000 9
9oottaall PP770000,,220000
5'.
5'. CC :achine ac8uired onî:achine ac8uired onî S
Seeîîtt. . 3300, , 2200113 3 ((PP11''66,,00000 0 î î 2200î î î î î î 33îî1122)) PP1155'',,110000 &&uunne e 3300, , 220011î î ((PP223355,,22000 0 î î 2200î î î î 3 3 66îî1122)) 1166îî,,66îî00 &&uunne e 3300, , 2200115 5 ((PP2277"",,00000 0 î î 2200î î î î 2 2 66îî1122) ) 1133"",,550000 Â 4ccuîulated deîreciation, -eceîîer 31, 2017
 4ccuîulated deîreciation, -eceîîer 31, 2017 Pî62,2î0Pî62,2î0
5". 5". BB
-ate oî -ate oî  4c8uisition
 4c8uisition *ost*ost 20132013 201î201î 20152015 2016 2016 20172017 9otal9otal 1 1îî11îî22001133 PP115577,,220000 PP3311,,îîîî00 PP3311,,îîîî00 PP1155,,772200 P 0P 0 P P 00 P P 77'',,660000 1 12200,,000000 22îî,,000000 22îî,,000000 22îî,,000000 22îî,,000000 11'',,000000 1111îî,,000000 1 13322,,000000 2266,,îî0000 2266,,îî0000 2266,,îî0000 00 00 77"",,220000 " "îî3300îî22001133 11''66,,000000 ",,3"30000 3377,,220000 3377,,220000 3377,,220000 3737,,220000 1155'',,110000 6 6îî3300îî220011îî 223355,,220000 00 2233,,552200 î7î7,,00îî00 îî77,,00îî00 î7î7,,00îî00 1166îî,,66îî00 6 6îî3300îî22001155 2277"",,00000 0 0 0 0 0 2277,,""000 0 5555,,''000 0 5555,,''000 0 1133"",,550000 *
*oorrrreecct t ddeeîîrreecciiaattiioonn PP""11,,11îî00 PP11îî22,,556600 PP1177'',,226600 PP1166îî,,00îî00 PP1155'',,00îî00 PP7733îî,,00îî00
--eeîîrreecciiaattiioon n îîeer r cclliieennt t ""77,,îîîî0 0 1155îî,,77552 2 115533,,''002 2 1100'',,77""1 1 ''22,,22333 3 55""77,,0011'' =
=$$eer (r (uunnddeerr))ssttaatteeîîeenntt P 6P 6,,330000 P 1P 122,,11""22 ((P 2P 2îî,,îî55'')) ((P 5P 555,,22îî"")) ((P 7P 755,,''0077)) ((P 1P 13377,,002222)) 60.
60. Â AÂ A --eeîîrreecciiaattiioon n eeîîîîeennsse e ((22001177)) 7755,,''0077 @
@eettaaiinneed d eeaarrnniinnggs s ((2200113 3 î î 22001166)) 6611,,221155 Â 4ccuîulated deîreciation
 4ccuîulated deîreciation 137,022137,022