PROBLEM 1

XYZ Company’s post-closing trial balance on December 31, 2017 shows the following account
balances:

Accounts Dr. Cr.

Petty cash fund 25,000

Cash in bank 2,500,000

90-day money market instruments 800,000

Accounts receivable 145,000

Allowance for bad debts 15,000

Notes receivable (Trade) 10,000

Inventory 250,000

Land 8,000,000

Building 10,000,000

Accumulated depreciation - Bldg. 4,800,000

Equipment 500,000

Accumulate depreciation - Equipment 250,000

Patent 350,000

Accumulated amortization - Patent 115,000

Trademark 150,000

Accounts payable 200,000

Notes payable - short term loan 300,000

Notes payable - long term loan (P50,000 due in 1yr.) 1,500,000

Income tax payable 550,000

Interest payable 120,000

Salaries payable 220,000

Utilities payable 10,000

Unearned income 35,000

Provision for warranty obligation 350,000

Deferred tax liability 70,000

Share capital 7,000,000

Retained earnings 6,645,000

Revaluation surplus 300,000

Cumulative translation gain - foreign operation 250,000

Totals 22,730,000 22,730,000

Requirements:

1. Prepare in good form a statement of financial position

2. Notes to financial statement

PROBLEM 2

The following items were presented for the purpose of determining comprehensive income:

Profit for the year 3,000,000

Increase in revaluation surplus 500,000

Remeasurements of the net defined benefit liability (asset) (100,000)

Net change in translation of foreign operation (200,000)

Dividends declared (150,000)

Stock rights 200,000

Requirements:

Compute for:

(a) Other comprehensive income

(b) Total comprehensive income