CPAR SPECIAL NOTES Auditing Problem Test Bank 1 Solution .doc

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SOLUTION - AUDITING PROBLEMS TEST BANK 1

PROBLEM 1 – TANYING CORP. PROBLEM 1 – 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 (2,60)(2,60)

!

!eett ssaalleess PP11,,33"",,116600

2.

2. CC ##nn$$eennttoorr%%,,&&aann..11 PP2266"",,110000 P

Puurrcchhaasseess PP22,,''0000

P

Puurrcchhaasse e rreettuurrnns s aannd d aalllloowwaannccees s ((PP22,,''000 0   66)) ((2255,,'''')) F

Frreeiigghht t iin n ((PP1166,,55775 5 + + PP11,,771100) ) 11'',,22''5 5 1177,,55""77 *

*oosst t oo  ggoooodds s aa$$aaiillaalle e oor r ssaallee PP66''66,,66""77 3.

3. DD #n$entor%, -ec. 31, 2017#n$entor%, -ec. 31, 2017 P

Peerr ooooss PP6611,,665500

/

/ooooddss oouutt oonn ccoonnssiiggnneenntt 5555,,''0000 P

Peerr aauuddiitt PP111177,,5500

.

. CC -istriution costs-istriution costs S

Saallees s ssaallaarriiees s aannd d ccooiissssiioonns s ((PP7755,,00000 0 + + PP"",,11''0 0   33)) PP7755,,227755 4d$ertising eense (P',270 + P5,5  26)

4d$ertising eense (P',270 + P5,5  26) 50,0''50,0''

-ereciation eense

-ereciation eense  Salesdeli$er% e8u Salesdeli$er% e8uient (P1',300 + P23,00  10  ient (P1',300 + P23,00  10  1012)1012) 20,25020,250 F

Frreeiigghhtt eeeennssee 1100,,550000

9

9rraa$$eel l eeeennsse e   ssaallees s rreerreesseennttaattii$$eess 1133,,66''00 :

:iisscceellllaanneeoouus s sseelllliinng g eeeennssees s '',,222200 9

9oottaall PP1177'',,001133

5.

5. BB 4dinistrati$e eenses 4dinistrati$e eenses ;

;eeggaall sseerr$$iicceess PP 66,,667755

##nnssuurraannccee aanndd lliicceennsseess 2233,,0000

--eerreecciiaattiioon n eeeennsse e   oiicce o e ee88uuiieenntt 1122,,660000 <

<ttiilliittiieess 11"",,220000

9

9eelleehhoonneeaanndd oossttaaggee ,,2255

=

=iicce e ssuulliiees s eeeennsse e ((PP66,,550 0   PP33,,667755)) 22,,''6655 =

=iicceerrss>> ssaallaarriieess 1100"",,''0000

--oouuttuul l aaccccoouunntts s eeeennsse e ((PP77''33,,00000 0   22  ? ? PP1155,,66660 0   PP''00) ) 1155,,11''00 9

9oottaall PP11""33,,77''55

6.

6. A A 4llowance or doutul accounts (P7'3,000  2) 4llowance or doutul accounts (P7'3,000  2) P15,660P15,660 7.

7. DD !!eett ssaalleess PP11,,33"",,116600

*

*oosst t oo  ggoooodds s ssoolld d ((PP66''66,,66""7 7   PP111177,,5500)) ((5566"",,2277)) /

/rroossss iinnccooee 7777"",,""1133

##nntteerreesst t rree$$eennuue e ((PP11,,66550 0 + + PP11,,66''00)) 33,,333300

--ii$$iiddeenndd rree$$eennuuee 1155,,5500

/

/aaiinn oonn ssaalleeoo aasssseettss 2233,,6600

9

9oottaall iinnccooee PP''2222,,115533

'.

'. CC 99oottaall iinnccooee PP''2222,,115533

--iissttrriiuuttiioonn ccoossttss ((1177'',,001133))

4dinistrati$e eenses 4dinistrati$e eenses (1"3,7'5)(1"3,7'5) #nterest eense #nterest eense (13,560) (13,560) ;

;oosss s oon n ssaalle e oo  e8e8uuiieenntt ((221177,,''0000)) ##nnccooe e rroo  ccoonnttiinnuuiinng g ooeerraattiioonns s eeoorre e ttaa PP2211'',,""""55 ".

". BB ==iicceessuulliieess iinn$$eennttoorr%% PP33,,667755 10.

10. A A ##nnccooeeeeoorree ttaa PP2211'',,""""55 ##nnccooe e ttaa  ((PP2211'',,""""5 5   3300)) ((6655,,6666"")) ##nnccooe e rroo  ccoonnttiinnuuiinng g ooeerraattiioonnss 115533,,22""66 ##nnccooe e rroo  ddiissccoonnttiinnuueed d ooeerraattiioonnss, , nneet t oo  ttaa  ((PP112200,,00000 0   7700) ) '',,000000 !

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Page 2

PROBLEM 2 – BUNCHING COMPANY

4ccounts

4ccounts 4ccounts4ccounts

*

*aasshh @@eecceeii$$aallee ##nn$$eennttoorr%% PPaa%%aallee P Peer r ooooss PP""6633,,220000 PP22,,2255,,000000 PP66,,005500,,000000 PP,,220011,,000000 4&A 4&A 11 (65,600)(65,600) 310,000310,000 BBBBBB BBBBBB 2 2 336600,,000000 BBBBBB BBBBBB 337722,,0000 3 3 aa BBBBBB BBBBBB BBBBBB ((117755,,000000))   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,,5566,,000000 PP66,,003355,,000000 PP,,661155,,""0000 (11  (11  CC)) ((112 2  BB)) ((113 3  A A)) ((11   B B)) AJES AJES 1 1.. SSaalleess 336600,,110000 4ccounts recei$ale (P2",500  "5) 4ccounts recei$ale (P2",500  "5) 310,000310,000 S Saallees s ddiissccoouunntts s ((PP331100,,00000 0   55)) 1155,,550000 * *aasshh 6655,,660000 2 2.. **aassh h ((PP337722,,000 0   PP1122,,0000)) 336600,,000000 P

Puurrcchhaassee ddiissccoouunnttss 1122,,0000

4ccounts a%ale

4ccounts a%ale 372,00372,00

3

3.. aa 44ccccoouunnttss aa%%aallee 117755,,000000 P

Puurrcchhaasseess 117755,,000000



 ##nn$$eennttoorr%% 113300,,000000

*

*oosstt oossaalleess 113300,,000000

cc **oosstt oossaalleess 663377,,550000

##nn$$eennttoorr%% 663377,,550000

d

d PPuurrcchhaasseess 221177,,550000

4ccounts a%ale

4ccounts a%ale 217,500217,500

##nn$$eennttoorr%% 221177,,550000

*

e

e ##nn$$eennttoorr%% 227755,,000000

*

 !o !o adadCuCuststining eg entntr%r% 15.

15. CC *urrent ratio*urrent ratio *urrent assets *urrent assets * *aasshh PP6666'',,660000 4ccounts recei$ale 4ccounts recei$ale 2,56,0002,56,000 ##nn$$eennttoorr%% 66,,003355,,000000 PP"",,226677,,660000 *urrent liailities *urrent liailities 4ccounts a%ale 4ccounts a%ale P,615,"00P,615,"00 4ccrued eenses 4ccrued eenses 31,000 31,000 5,06,"005,06,"00 1.' 1.'

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Page 3

PROBLEM 3 – PAKO COMPANY

PROBLEM 3 – PAKO COMPANY 16.

16. DD DDaallaannccee,, &&aann.. 11 PP11,,''0000,,000000

&&uunne e 330 0 aacc88uuiissiittiioon n ((PP11,,00''00,,00000 0 + + PP'',,000000)) 11,,1122'',,000000 S

Seett..3300 ssaallee ((115500,,000000))

--eecc. . 1 1 ttrraadde e iinn oolld d aacchhiinnee ((""00,,000000)) n

neewwaacchhiinnee 272700,,000000

D

Daallaannccee,, --eecc.. 3131 PP22,,""55'',,000000

17.

17. A A @eainder o eginning alance (P1,'00,000  P150,000  P"0@eainder o eginning alance (P1,'00,000  P150,000  P"0 ,000 ?,000 ? P

P11,,556600,,000000 1010)) PP115566,,000000

&&uunne e 330 0 aacc88uuiissiittiioon n ((PP11,,1122'',,00000 0   1100    661122)) 5566,,0000 S

Seett. . 330 0 ssaalle e ((PP115500,,00000 0   1100    "1" 122)) 1111,,225500

--eecc. . 1 1 ttrraadde e iinn oolld d aacchhiinne e ((PP""00,,00000 0   1100    11111122)) '',,225500 n

neew w aacchhiinne e ((PP227700,,00000 0   1100    111122) ) 22,,225500

--eerreecciiaattiioon n eeeennsse e oor r 22001155 PP2233,,115500 GENLUNA COPPERMINES, INC.

GENLUNA COPPERMINES, INC. 1'.

1'. CC --eelleettiioon n rraatte e eer r ttoon n ((PP11,,55''00,,00000 0   11,,662200,,000000)) P P "" *

*ooeer r oorre e iinneed d iin n 2200117 7 ((1155,,00000 0   6 6 oonntthhss) )   ""00,,000000

--eelleettiioonn oorr22001177 PP ''1100,,000000

--eelleettiioonn eerrooooss 11,,221155,,000000

=

=$$eerrssttaatteeeennt t oo  ddeelleettiioon n eeeennssee PP0055,,000000 1".

1". DD --eerreecciiaalle e ccoosst t oo  aacchhiinneerr% % ((PP11,,''0000,,00000 0   ""00)) PP11,,662200,,000000 A

Assttiiaatteed d ccooeer r oorre e rreesseerr$$ee 11,,662200,,000000

--eerreecciiaattiioonn rraattee eerr ttoonn PP 11

*

*ooeerr oorree iinneedd iinn 22001177 ""00,,000000

--eerreecciiaattiioon n eeeennsse e oor r 22001177 P P ""00,,000000

--eerreecciiaattiioonn eerrooooss 112200,,000000

=

=$$eerrssttaatteeeennt t oo  ddeerreecciiaattiioon n eeeennssee P P 3300,,000000 20.

20. DD &anuar% 1, 201&anuar% 1, 201 9

9oottaal l ccoosst t oo  aacchhiinne e ((PP330000,,00000 0 + + PP33,,00000 0 + + PP1122,,000000)) PP331155,,000000 @esidual

@esidual $alue $alue (12,000)(12,000)

--eerreecciiaalleeccoosstt PP330033,,000000

A

Assttiiaatteedd uusseeuull lliiee 1100 %%eeaarrss

4nnual dereciation

4nnual dereciation P30,300P30,300

--eerreecciiaalleeccoosstt PP330033,,000000

--eerreecciiaattiioonn, , 2200116 6   220011  ((PP3300,,33000 0   3 3 %%eeaarrss) ) ((""00,,000000)) @

@eeaaiinniinng g ddeerreecciiaalle e ccoosstt, , &&aann. . 11, , 22001177 PP221122,,110000 *

*oosstt oonneeww aarrttss 3377,,''0000

9

9oottaall PP22"",,""0000

@

@eeaaiinniinng g usseu euul l lliie e ((110 0 %%eeaarrs s   3 3 %%eeaarrss) ) 7 7 %%eeaarrss @

@ee$$iisseed d aannnnuuaal l dederreecciiaattiioonn PP3355,,770000 PROBLEM 4 – HARLINGTON COMPANY

PROBLEM 4 – HARLINGTON COMPANY 21.

21. A A !!eet t iinnccooe e eeoorre e ttrraaddiinng g sseeccuurriitt% % aaddCCuusstteenntt PP22,,770000,,000000 <

<nnrreeaalliiEEeed d lloosss s ((PP33,,6655,,00000 0 ccoosst t   PP33,,11""55,,00000 0 aarreet t $$aalluuee) ) ((227700,,000000)) !

!eet t iinnccooee, , aas s adadCCuusstteedd PP22,,3300,,000000 22.

22. BB !!eet t iinnccooe e eeoorre e ttrraaddiinng g sseeccuurriitt% % aaddCCuusstteenntt PP22,,770000,,000000 <

<nnrreeaalliiEEeed d ggaaiin n ((PP33,,6655,,00000 0 ccoosst t   PP33,,5566,,00000 0 aarreet t $$aalluuee) ) """",,000000 !

!eet t iinnccooee, , aas s adadCCuusstteedd PP22,,77"""",,000000 LABADA CO.

LABADA CO. 23.

23. DD **aarrrr%%iinng g aalluuee ::aarreet t aalluuee / /aanndda a **oo.. PP11,,771100,,000000 PP11,,7755"",,550000 G Gaassttoonn, , ##nncc. . ((PP11335 5   11,,''0000) ) 2233,,00000 0 2222"",,550000 P P11,,""5533,,000000 PP11,,""''"",,000000

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<

<nnrreeaalliiEEeed d ggaaiin n ((PP11,,""''"",,00000 0   PP11,,""5533,,000000)) PP3366,,000000 2.

2. CC !!eet t rroocceeeedds s ((PP""3 3   1155,,00000 0 ? ? PP11,,33""55,,00000 0   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 aaiir r $$aalluuee PP11,,""''"",,000000

Page 

PROBLEM 5 – SAMSON MFG. CO.

PROBLEM 5 – SAMSON MFG. CO. 26.

26. CC 4ctual orrowing cost 4ctual orrowing cost S

Seecciiiic c oorrrroowwiinng g ((PP5 5 iilllliioon n   1100)) PP550000,,000000 /eneral orrowings /eneral orrowings P P225 5 iilllliioon n   '' PP22,,000000,,000000 P P115 5 iilllliioon n   66  "0"000,,00000 0 22,,""0000,,000000 9 9oottaall PP33,,0000,,000000 *

*aaiittaalliiEEaattiioon n rraatte e ((PP22,,""0000,,000000PP0 0 iilllliioonn)) 77..2255 4$erage eenditures  2016

4$erage eenditures  2016 P7,250,000P7,250,000

*aitaliEale interest  2016 *aitaliEale interest  2016

S

Seecciiiic c oorrrroowwiinng g ((PP5 5 iilllliioon n   1100)) PP550000,,000000 /e

/enenerraal l ororrrowowiingngs s (P(P7,7,25250,0,00000 0   PP5,5,00000,0,00000 0 ? ? PP2,2,25250,0,00000 0   7.7.2525) ) 16163,3,121255 9

9oottaall PP666633,,112255

27.

27. BB 4$erage eenditures  2017 4$erage eenditures  2017 P16,163,125P16,163,125 *aitaliEale interest  2017

*aitaliEale interest  2017 S

Seecciiiic c oorrrroowwiinng g ((PP5 5 iilllliioon n 1100    661122)) PP225500,,000000 /eneral orrowi

/eneral orrowings (P16,163,125  P5,000,000 ? ngs (P16,163,125  P5,000,000 ? P11,163,125  7.25  P11,163,125  7.25  612) 612) 0,6630,663 9

9oottaall PP6655,,666633

2'.

2'. A A 220011  iinntteerreesst t eeeennsse e ((PP33,,0000,,00000 0   PP666633,,112255)) PP22,,773366,,''7755 2".

2". DD 2200115 5 iinntteerreesst t eeeennsse e ((PP33,,0000,,00000 0   PP6655,,666633)) PP22,,7755,,333377 30.

30. BB 4ccuulated eenditures eo 4ccuulated eenditures eore interestre interest P1",500,000P1",500,000 ##nntteerreesst t ccaaiittaalliiEEeed d iin n 2200116 6 aannd d 2200117 7 ((PP666633,,11225 5 + + PP6655,,666633) ) 11,,331177,,77'''' 9

9oottaal l ccoosst t oo  uuiillddiinngg PP2200,,''1177,,77'''' PROBLEM 6

PROBLEM 6

C

C!!""##$$%%&&''(($$ CC))!!))**&&''((++## E

E""##$$%%## CC!!""##$$%%&&''(($$

Y#&- Y#&- C&*)*&'($C&*)*&'($ /- P#-(/- P#-(00 E"#$%#E"#$%# 1

1 3300,,00000 0 oottiioonns s   PP5 5 aaiir r $$aalluue e   P P 5500,,000000 P P 5500,,000000 2

2 3300,,00000 0 oottiioonns s   PP5 5 aaiir r $$aalluue e   5500,,000000 110000,,000000 3

3 3300,,00000 0 oottiioonns s   PP5 5 aaiir r $$aalluue e   5500,,000000 115500,,000000 31.

31. CC 32.32. CC 33.33. DD 3.3. DD 35.35. DD

PROBLEM  – BRANDY CO. PROBLEM  – BRANDY CO. 36.

36. CC ==rrddiinnaarr% % sshhaarrees s iissssuueed d aannd d oouuttssttaannddiinngg 7722,,000000 =

=rrddiinnaarr% % sshhaarrees s ssuussccrriieed d 7722,,000000 9

9oottaall 11,,000000

=

=rrddiinnaarr% % sshhaarrees s iissssuueed d tto o aacc88uuiirre e llaanndd ((22,,000000)) =

=rrddiinnaarr% % sshhaarrees s oorriiggiinnaallll% % ssuussccrriieedd 121200,,000000 P

Paarr $$aalluueesshhaarree  PP1100

9

9oottaall aarr$$aalluuee PP11,,220000,,000000

S

Shhaarre e rreeiiuu  ((PP22,,''5500,,00000 0   PP5500,,000000) ) 22,,0000,,000000 9

9oottaal l ssuussccrriittiioon n rriicce e PP33,,660000,,000000

H P6"0,000 F o land  P20,000 P H P6"0,000 F o land  P20,000 P

37.

37. DD SSuussccrriittiioon n oo  1122,,00000 0 rreeeerreenncce e sshhaarrees s I I PP112200sshhaarree PP11,,00,,000000 S

Suussccrriittiioon n oo  6600,,00000 0 rreeeerreenncce e sshhaarrees s I I PP110000sshhaarree 66,,000000,,000000 9

9oottaall 77,,00,,000000

JearBend alance o suscri

JearBend alance o suscritions recei$ale  reerence tions recei$ale  reerence (360,000)(360,000) 4ount collected ro suscriers

(5)

3'.

3'. BB PPrreeeerreennccee ==rrddiinnaarr%%

##ssssuueedd PP66,,660000,,000000 PP 772200,,000000

S

Suussccrriieedd 660000,,000000 772200,,000000

S

Shhaarre e rreeiiuu 2200,,000000 22,,''5500,,000000 S

Suussccrriittiioonns s rreecceeii$$aalle e ((336600,,000000)) ((11,,00''00,,000000)) *

*oonnttrriiuutteed d ccaaiittaall PP77,,00''00,,000000 PP33,,221100,,000000

Page 5

CONDESSA CO.

CONDESSA CO. 1

1.. --ii$$iiddeenndds s aa%%aalle e   rreeeerreenncce e ((PP' '   6600,,000000)) ''00,,000000

--ii$$iiddeenndds s aa%%aalle e   oorrddiinnaarr% % ((PP2 2   660000,,000000)) 11,,220000,,000000 *

*aasshh 11,,66''00,,000000

2

2.. 99rreeaassuurr%% sshhaarreess 33,,2200,,000000

*

*aasshh ((PP00  ''11,,000000)) 33,,2200,,000000

3

3.. ;;aanndd ""0000,,000000

9

9rreeaassuurr% % sshhaarrees s ((PP0 0   2211,,000000)) ''00,,000000 S

Shhaarre e rreeiiuu    ttrreeaassuurr%% 6600,,000000 

.. **aassh h ((PP11005 5   1515,,000000)) 11,,557755,,000000 P

Prreeeerreenncce e sshhaarre e ccaaiittaal l ((PP11000 0   1155,,000000)) 11,,550000,,000000 S

Shhaarre e rreeiiuu    rreeeerreennccee 7755,,000000 5

5.. @@eettaaiinneed d eeaarrnniinnggs s ((PP5 5   55,,000000HH)) 22,,3300,,000000 S

Sttoocc  ddii$$iiddeenndds s aa%%aalle e ((PP5 5   55,,000000)) 227700,,000000 S

Shhaarre e rreeiiuu    orrdo diinnaarr%% 22,,116600,,000000

H 600,000  60,000 treasur% shares ? 50,000  10 H 600,000  60,000 treasur% shares ? 50,000  10

6

6.. SSttoocc  ddii$$iiddeenndds s aa%%aallee 227700,,000000 =

=rrddiinnaarr%%sshhaarreeccaaiittaall 272700,,000000

7

7. @. @eettaaiinneed d eeaarrnniinnggss 11,,77'''',,000000

--ii$$iiddeenndds s aa%%aalle e   rreeeerreenncce e ((PP' '   7755,,000000)) 660000,,000000

--ii$$iiddeenndds s aa%%aalle e   oorrddiinnaarr% % ((PP2 2   55"",,000000HH)) 11,,11'''',,000000

H 50,000 + 5,000 H 50,000 + 5,000

'

'.. ##nnccooee ssuuaarr%% "",,""0000,,000000 @

@eettaaiinneedd eeaarrnniinnggss "",,""0000,,000000 P

Prreeeerreenncce e sshhaarre e ccaaiittaal l ((PP66,,000000,,00000 0 + + PP11,,550000,,000000)) PP77,,550000,,000000 =

=rrddiinnaarr% % sshhaarre e ccaaiittaal l ((PP33,,000000,,00000 0 + + PP227700,,000000)) 33,,227700,,000000 S

Shhaarre e rreeiiuu  ((PP33,,775500,,00000 0 + + PP6600,,00000 0 + + PP7755,,00000 0 + + PP22,,116600,,000000)) 66,,0055,,000000 @etained earnings (P3,500,000  P2,30,000  P1,7'',000 + P","00,000) (3" 

@etained earnings (P3,500,000  P2,30,000  P1,7'',000 + P","00,000) (3"  A A)) "",,11''22,,000000 9

9rreeaassuurr% % sshhaarrees s ((PP33,,2200,,00000 0   PP''00,,000000) ) ((22,,0000,,000000)) 9otal (0 

9otal (0  BB)) PP2233,,55""77,,000000

PROBLEM  – CABOOM LABORATORIES PROBLEM  – CABOOM LABORATORIES

1.

1. DD **oosst t tto o oottaaiin n aatteennt t ((&&aannuuaarr% % 22001100)) PP11''66,,115500 2

200110 0 aaoorrttiiEEaattiioon n ((PP11''66,,1155001177) ) ((1100,,""5500)) *

*aarrrr%%iinng g $$aalluuee, , --eecc. . 3131, , 22001100 PP117755,,220000 2.

2. CC **aarrrr%%iinng g $$aalluuee, , &&aann. . 11, , 22001111 PP117755,,220000 4ortiEation, 2011B201 (P10,"50   %ears)

4ortiEation, 2011B201 (P10,"50   %ears) (3,'00)(3,'00)

*

*aarrrr%%iinng g $$aalluuee, , --eecc. . 3131, , 220011 PP113311,,0000 3.

3. CC **aarrrr%%iinng g $$aalluuee, , &&aann. . 11, , 22001155 PP113311,,0000 4ortiEation, 2015B2017 (P131,00  35)

4ortiEation, 2015B2017 (P131,00  35) (7','0)(7','0)

*

*aarrrr%%iinng g $$aalluuee, , --eecc. . 3131, , 22001177 P P 5522,,556600 BARTOLO COMPANY

BARTOLO COMPANY .

. A A **oosst t oo  aatteennt t uurrcchhaasseed d oon n &&aann. . 11, , 22001166 PP,,000000,,000000 2

200116 6 aaoorrttiiEEaattiioon n ((PP,,000000,,0000001100) ) ((0000,,000000)) *

*aarrrr%%iinng g $$aalluuee, , --eecc. . 3311, , 22001166 33,,660000,,000000 2

200117 7 aaoorrttiiEEaattiioon n ((PP33,,660000,,00000055) ) ((772200,,000000)) PP22,,''''00,,000000 *

*oosst t oo  rraanncchhiissee PP""6600,,000000 2

(6)

9

9oottaal l ccaarrrr%%iinng g $$aalluue e oo  iinnttaannggiilleess PP33,,77,,000000 5.

5. BB 4ortiEation o atent  2017 4ortiEation o atent  2017 P720,000P720,000 4ortiEation o ranchise  2017

4ortiEation o ranchise  2017 "6,000"6,000

P

Paa%%eennt t tto o --eellcco o ((PP55,,000000,,00000 0   55)) 225500,,000000 @

@eesseeaarrcch h aannd d ddee$$eellooeennt t ccoosstts s ''6666,,000000 9

9oottaal l cchhaarrggees s aaggaaiinnsst t 2200117 7 iinnccooee PP11,,""3322,,000000

Page 6

PROBLEM NO.  – SAMOA COMPANYCHILE CO.

PROBLEM NO.  – SAMOA COMPANYCHILE CO. 6.

6. A A =$erB (<nderB)stateent=$erB (<nderB)stateent

<

<nnddeerrssttaatteeeennt t oo  2200116 6 eennddiinng g iinn$$eennttoorr%% P P '',,000000 =

=$$eerrssttaatteeeennt t oo  2200117 7 eennddiinng g iinn$$eennttoorr%% 00,,550000 P

Prreeaaiid d iinnssuurraanncce e cchhaarrggeed d tto o eeeennsse e iin n 2200116 6 ((PP333300,,00000 0 K K 33)) 111100,,000000 <nrecorded

<nrecorded sale sale o o ull% ull% dereciated dereciated achiner% achiner% in in 2017 2017 (75,000)(75,000) 9

9oottaal l eeeecct t oo  eerrrroorrs s oon n nneet t iinnccooee PP112233,,550000 7.

7. DD =$erB (<nderB)stateent=$erB (<nderB)stateent

=

=$$eerrssttaatteeeennt t oo  2200117 7 eennddiinng g iinn$$eennttoorr%% P P 00,,550000 P

Prreeaaiid d iinnssuurraanncce e cchhaarrggeed d tto o eeeennsse e iin n 22001166 ((111100,,000000)) <

<nnrreeccoorrddeed d ssaalle e oo  uullll% % ddeerreecciiaatteed d aacchhiinneerr% % iin n 2200117 7 ((7755,,000000)) 9

9oottaal l eeeecct t oon n wwoorriinng g ccaaiittaall ((PP11,,550000)) '.

'. CC =$erB (<nderB)stateent=$erB (<nderB)stateent

=

=$$eerrssttaatteeeennt t oo  2200117 7 eennddiinng g iinn$$eennttoorr%% P P 00,,550000 <

<nnddeerrssttaatteeeennt t oo  ddeerreecciiaattiioon n eeeennsse e iin n 22001166 1111,,550000 P

Prreeaaiid d iinnssuurraanncce e cchhaarrggeed d tto o eeeennsse e iin n 22001166 ((111100,,000000)) <

<nnrreeccoorrddeed d ssaalle e oo  uullll% % ddeerreecciiaatteed d aacchhiinneerr% % iin n 2200117 7 ((7755,,000000)) 9

9oottaal l eeeecct t oon n rreettaaiinneed d eeaarrnniinnggss ((PP113333,,000000)) 2

2001166 22001177 P

Prreettaa iinnccooee PP550055,,000000 PP33''77,,000000

S

Saallees s rree$$eennuue e eerrrroonneeoouussll% % rreeccooggnniiEEeed d iin n 22001166 ((11""11,,000000)) 11""11,,000000 <

<nnddeerrssttaatteeeennt t oo  2200116 6 eennddiinng g iinn$$eennttoorr%% 33,,220000 ((33,,220000)) <nderstateent o ond interest eense

<nderstateent o ond interest eense (1)(1) ₍₍₇_7,,2₂₅₅₀₀₎₎ ₍₍₇_7,,7₇₅_5'_'))

=r

=rdidinanar% r% rereaiairrs s eerrrrononeoeoususll% % cacaititaaliliEEed ed ((2,2,50500)0) ((7,7,00000)0) =$erstateent o dereciation

=$erstateent o dereciation (2)(2) __,,2₂₅₅₀₀ _'_',,"_"5₅₀₀

*

*oorrrreecctteed d rreettaa  iinnccooee PP331111,,770000 PP'''',,""""22

(1)

(1) _D_Do_oo_o_{ }_a_allu_ue_e _!_!o_o_iin_na_all _A_{Ae}_eccttii$_$e_e _-_-iisscco_ou_un_ntt

Jear

Jear o Dondso Donds #nterest#nterest #nterest#nterest 4ortiEation4ortiEation 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 ((PP22,,55000 0 K K 1100)) PP,,225500 2 2001177 ((PP22,,55000 0 K K 1100)) PP,,225500 ((PP77,,00000 0 K K 1100) ) ,,770000 PP'',,""5500 ". ". CC 50.50. DD PROBLEM NO. 1 –

PROBLEM NO. 1 – OMEGA COMPANYDOMEGA COMPANYDP, INC.P, INC. 51.

51. CC **oonnttaaiinneerrs hs heelld d % c% cuussttooeerrs as at -t -eecc. 3. 311, 2, 200116 6 rroo d deellii$$eerriiees is in 2n 2001155 PP''55,,000000 *

*oonnttaaiinneerrs s rreettuurrnneed d iin n 2200117 7 rroo  ddeellii$$eerriiees s iin n 2200115 5 ((5577,,550000)) @

@ee$$eennuue e rroo  ccoonnttaaiinneer r ssaalleess PP2277,,550000 52.

52. A A ;;iiaaiilliitt% % oor r rreettuurrnnaalle e ccoonnttaaiinneerrss, , --eecc. . 3311, , 22001166 PP332255,,000000

--eellii$$eerriieess iinn 22001177 3300,,000000

9

9oottaall 775555,,000000

2

200117 7 ccoonnttaaiinneer r rreettuurrnnss PP3355,,550000 2

200117 7 ccoonnttaaiinneer r ssaallees s 2277,,55000 0 ((33''22,,000000)) ;

;iiaaiilliitt% % oor r rreettuurrnnaalle e ccoonnttaaiinneerrss PP337733,,000000 53.

53. CC <nearned warrant% re$enue<nearned warrant% re$enue * *uurrrreennt t ((PP''110 0   22770 0   1133)) PP7722,,""0000 ! !oonnBBccuurrrreennt t ((PP''110 0   27270 0   2233)) PP1155,,''0000 5. 5. DD PPaarrttss PP11'',,000000

(7)

;

;aaoorr 3366,,000000

9

9oottaall wwaarrrraanntt%% ee eennssee PP55,,000000 55.

55. BB <nearned warrant% re$enue<nearned warrant% re$enue * *uurrrreennt t ((PP''110 0   22770 0   1133)) PP7722,,""0000 ! !oonnBBccuurrrreennt t ((PP''110 0   27270 0   1133)) PP7722,,""0000

Page 7

PROBLEM 11 – TGR C!"&$ PROBLEM 11 – TGR C!"&$ 56.

56. DD 9radeBin  &une 30, 20159radeBin  &une 30, 2015 *

*oosstt PP115577,,220000

4ccu. dereciation, 1113  63015 (P157,200  20  2.5 %rs.)

4ccu. dereciation, 1113  63015 (P157,200  20  2.5 %rs.) 7',6007',600 *

*aarrrr%%iinngg $$aalluuee 77'',,660000

9

9rraaddeeBBiinn $$aalluuee 1122"",,000000 PP5500,,0000 Sale  &an. 1, 2016 Sale  &an. 1, 2016 * *oosstt PP113322,,000000 4ccu. dereciation, 1113  1116 (P132,000  20  3 %rs.) 4ccu. dereciation, 1113  1116 (P132,000  20  3 %rs.) 7",2007",200 *

*aarrrr%%iinngg $$aalluuee 5522,,''0000

! !eett rroocceeeeddss 7171,,225500 11'',,5500 Sale  =ctoer 1, 2017 Sale  =ctoer 1, 2017 * *oosstt PP112200,,000000 4ccu. dereciation, 1113  10117 (P120,000  20   "12) 4ccu. dereciation, 1113  10117 (P120,000  20   "12) 11,00011,000 *

*aarrrr%%iinngg $$aalluuee 66,,000000

P

Prroocceeeeddss 22,,000000 11'',,000000

9

9oottaall ggaaiinn PP''66,,''5500

57.

57. CC ::aacchhiinne e aacc88uuiirreed d oon n SSeett. . 3300, , 2200113 3 ((PP11''00,,00000 0 + + PP66,,000000)) PP11''66,,000000 :

:aacchhiinne e aacc88uuiirreed d oon n &&uunne e 3300, , 220011  ((PP2200,,00000 0   ""'')) 223355,,220000 :

:aacchhiinne e aacc88uuiirreed d oon n &&uunne e 3300, , 2200116 6 ((lliisst t rriiccee) ) 2277"",,000000 9

9oottaall PP770000,,220000

5'.

5'. CC :achine ac8uired on:achine ac8uired on S

Seett. . 3300, , 2200113 3 ((PP11''66,,00000 0   2200      331122)) PP1155'',,110000 &&uunne e 3300, , 220011  ((PP223355,,22000 0   2200    3 3 661122)) 1166,,6600 &&uunne e 3300, , 2200115 5 ((PP2277"",,00000 0   2200    2 2 661122) ) 1133"",,550000 4ccuulated dereciation, -eceer 31, 2017

4ccuulated dereciation, -eceer 31, 2017 P62,20P62,20

5". 5". BB

-ate o -ate o 4c8uisition

4c8uisition *ost*ost 20132013 201201 20152015 2016 2016 20172017 9otal9otal 1 11122001133 PP115577,,220000 PP3311,,00 PP3311,,00 PP1155,,772200 P 0P 0 P P 00 P P 77'',,660000 1 12200,,000000 22,,000000 22,,000000 22,,000000 22,,000000 11'',,000000 1111,,000000 1 13322,,000000 2266,,0000 2266,,0000 2266,,0000 00 00 77"",,220000 " "330022001133 11''66,,000000 ",,3"30000 3377,,220000 3377,,220000 3377,,220000 3737,,220000 1155'',,110000 6 63300220011 223355,,220000 00 2233,,552200 77,,0000 77,,0000 77,,0000 1166,,6600 6 6330022001155 2277"",,00000 0 0 0 0 0 2277,,""000 0 5555,,''000 0 5555,,''000 0 1133"",,550000 *

*oorrrreecct t ddeerreecciiaattiioonn PP""11,,1100 PP1122,,556600 PP1177'',,226600 PP1166,,0000 PP1155'',,0000 PP7733,,0000

--eerreecciiaattiioon n eer r cclliieennt t ""77,,0 0 1155,,77552 2 115533,,''002 2 1100'',,77""1 1 ''22,,22333 3 55""77,,0011'' =

=$$eer (r (uunnddeerr))ssttaatteeeenntt P 6P 6,,330000 P 1P 122,,11""22 ((P 2P 2,,55'')) ((P 5P 555,,22"")) ((P 7P 755,,''0077)) ((P 1P 13377,,002222)) 60.

60. A A --eerreecciiaattiioon n eeeennsse e ((22001177)) 7755,,''0077 @

@eettaaiinneed d eeaarrnniinnggs s ((2200113 3   22001166)) 6611,,221155 4ccuulated dereciation

4ccuulated dereciation 137,022137,022

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