Professional Documents
Culture Documents
3,000,000
5,200,000
2,000,000
700,000
100,000
11,000,000
4,000,000
( 300,000)
1,500,000
5,200,000
5,000,000
8,000,000
10,000,000
7,000,000
30,000,000
Page 2 of 3
Common stock
Additional paid in capital
Retained earnings (including appropriated for contingencies of P3,000,000)
Total equity
15,000,000
3,000,000
7,000,000
25,000,000
The trading securities and inventory are reported at their costs which approximate
market values. In the 2005 statement of changes in equity, the total amount of equity at
December 31, 2005 is
a. P25,000,000
c. P20,000,000
b. P23,000,000
d. P22,000,000
5. The following trial balance of Macabebe Company on December 31, 2005 has been
adjusted except for income tax expense.
Cash
Accounts receivable
Inventory
Property, plant and equipment
Accounts payable and accrued liabilities
Income tax payable
Deferred tax liability
Common stock
Additional paid in capital
Retained earnings 1/1
Nets sales and other revenues
Costs and expenses
Income tax expense
4,000,000
6,700,000
11,000,000
19,000,000
7,000,000
4,800,000
1,200,000
10,000,000
4,000,000
5,000,000
80,000,000
65,000,000
6,300,000
112,000,000
________
112,000,000
During the year, estimated tax payments of P1,500,000 were charged to income tax
expense. The current and future tax rate is 32% on all types of revenue. The deferred tax
liability is unrelated and will reverse in 2006.
1. The adjusted retained earnings on December 31, 2005 should be
a. P15,200,000
c. P20,000,000
b. P13,700,000
d. P15,000,000
2. The total current liabilities on December 31, 2005 should be
a. P10,300,000
c. P11,800,000
b. P11,500,000
d. P13,000,000
6. The bookkeeper for Guagua Computers, Inc., reports the following balance sheet amounts
as of June 30, 2005.
Current assets
Noncurrent assets
Current liabilities
Noncurrent liabilities
Owners equity
P2,440,500
6,285,500
1,386,000
900,000
6,440,000
P 422,500
600,000
568,000
850,000
P2,440,500
Page 3 of 3
P5,490,000
21,500
774,000
P6,285,500
71,500
41,500
114,000
P1,014,000
15,000
999,000
160,000
P1,386,000
P900,000
P3,800,000
1,600,000
1,040,000
P6,440,000
(f) Common shares were originally issued for P3,910,000, but the losses of the
company for the past years were charged against additional paid-in capital.
QUESTIONS:
Determine the adjusted amounts of the following:
1. Current assets
a. P2,462,000
b. P2,477,000
c. P2,440,500
d. P2,435,500
2. Noncurrent assets
a. P5,490,000
b. P6,560,000
c. P5,511,500
d. P6,264,000
3. Current liabilities
a. P1,401,000
c. P1,581,000
d. P1,491,000
4. Noncurrent liabilities
a. P720,000
b. P900,000
c. P810,000
d. P880,000
5. Owners equity
a. P7,710,000
c. P8,750,000
d. P5,666,000
b. P1,602,500
b. P6,440,000
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