Practice Comptency Exam 124 PDF

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Summary

Dear 124 students,Please submit by Friday in your respective time.The following relates to balances of Encantadia Company for December 31, 2018 before the additional transactions below were provided:Cash in Bank – savings 300,Cash in Bank – current 1,000,Claims receivable 300,Petty Cash Fund 30,Sale...

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Dear 124 students, Please submit by Friday in your respective time. F/S Preparation following notes to FS and line item presentation of Encantadia Company. Problem 1 The following relates to balances of Encantadia Company for December 31, 2018 before the additional transactions below were provided: Debit Credit Freight in Cash in Bank – savings Cash in Bank – current Claims receivable Petty Cash Fund Sales Investment in Equity securities 10,000 shares 3 years time deposit – BPI Trading Securities Treasury Bills Bondspayable due annually at 1,000,000 Notes receivable Delivery expense Accounts receivable Allow. For doubtful accounts Sales returns Sales discount Subscriptions receivable collectible currently Advances of officers & employees (payroll deduction) Purchase discounts Advances to affiliates Financial Asset at FV through OCI Office supplies expense Advances to suppliers Merchandise inventory,Dec.31 Unused supplies Prepaid advertising Long term Refundable deposit Sales salaries Patent Land held for speculation Land Depreciation expense(40% store,60% office eqpt) Building Furnitures and Fixtures Store Supplies expense

20,000 300,000 1,000,000 300,000 30,000 3,888,000 1,200,000 400,000 500,000 600,000 10,000,000 1,100,000 6,000 2,000,000 200,000 60,000 40,000 250,000 100,000 30,000 1,000,000 1,350,000 2,000 50,000 500,000 20,000 60,000 80,000 130,000 300,000 1,000,000 1,400,000 800,000 2,200,000 900,000 3,000

Accumulated depreciation – F and F 200,000 Delivery Truck 1,800,000 Accumulated dep’n – Del. Truck 300,000 Loans payable - short term 300,000 Accumulated depreciation – building 300,000 Accrued expenses 50,000 Estimated liability for lawsuit 100,000 Light and water expense 4,000 Accounts payable 350,000 Taxes and licenses 3,000 Warranty Liability 40,000 SSS/PHIC/ payable 60,000 Purchase returns 70,000 VAT payable 100,000 Estimated Premiums liability 90,000 Bonds payable – 5 year term bonds 3,400,000 Deferred Tax liability that will reverse early in January, 2019 700,000 Ordinary Shares Par 100 1,800,000 Share premium 500,000 Purchases 2,300,000 Office salaries 120,000 Retained Earnings, Unappropriated ? Net Income result less approp Retained Earnings appropriated (AJE # 3) ? Investment in bonds, 2 year term, 12%, dated Jan.1, pays annual interest Every December 31, Face value 1,000,000 purchased at 105 1,050,000

Additional transactions for November to December 31 are as follows; not yet reflected. 1. Trading securities has Fair market value on December 31, 2018 of 460,000. 2. 5,000 shares of Investment in equity securities has been sold for 700,000 on November 18, 2018. Cash is deposited in its savings account. 3. Appropriated 200,000 of retained earnings on December 31. Suggested entry: Retained earnings - xxx Appropriated retained earnings - xxx 4. Financial asset at fair value through OCI Fair market value is 1,500,000. 5. Amortization of bonds and the receipt of interest on December 31. (straight line amortization) 6. Inventories net realizable value amounted to 485,000. Suggested Adjustment: Loss on inventory writedown - xxx Allowance for inventory writedown - xxx

Suggested line items: For Current Assets:

Cash and cash equivalents Trading Securities Trade and Other receivables Inventories Prepaid Expenses For Non Current Assets: Property, plant, and equipment Long-term investments Investment Proprty Intangible assets Other noncurrent assets For Current Liabilities: Trade and other payable Current portion of bonds payable Loans payable – short term Current provision For Non current Liabilities: Non current portion of LT debt Deferred tax liability Long term deferred revenues

For Shareholder’s equity: Share capital, P100 par Reserves UG – OCI Retained earnings...